With the unfortunate demise of the prop firm My Forex Funds, the issue of slippage has recently become a hot topic. This educational post takes a look at the slippery issue of slippage, beginning with the basics all the way to addressing popular theories and speculations about slippage. Something to remember is that every trader, regardless of expertise, will...
In forex trading, fundamental analysis looks at the outlook of a whole economy to determine the actual value of a currency. The value is then compared with the value of other currencies to assess whether it will strengthen or weaken relative to those currencies.
This post will further discuss how fundamental analysis is used in forex, what to look out for, and...
When done correctly, hedging is a great method to help protect your position(s) against big price fluctuations. This post will delve further into hedging and discuss how you can use it to not only protect your position(s) but also how to potentially use it to your advantage in turning losing positions into profit-taking opportunities.
What is hedging in Forex?...
Risk management is one of the key topics in forex trading that is not emphasised enough. Instead, there is too much emphasis on solely focusing on being on the right side of the market to consistently make money while ignoring proper risk management in the process. This post will completely debunk this, so after you have finished reading, you will hopefully have a...
Have you ever noticed that when you speak to other traders about the market, your view tends to be the opposite view a lot of the time? You think the market is going down when they think it is going up, and vice versa.
Going against the crowd can be looked down upon by traders, as the majority of them will question your motives or reasoning and tell you that...
With the current aggressive interest rate hikes happening with some of the world's leading central banks due to inflation problems, we figured it would be an ideal time to discuss the carry trade.
This post will go into further detail about the carry trade and how it works in the forex market. We will also discuss one of the most popular carry trades to take...
How many times have you been stopped out of a great trading idea you noticed just because you missed your original entry and decided to enter at a worse price?
This was most likely due to the fear of missing out (FOMO) and lack of discipline that got you into the trade.
You were right on the market direction, but due to FOMO and your lack of discipline, the...
One of the important concepts that traders should understand is the difference between divergence and convergence, two terms that are often used interchangeably but have distinct meanings and implications for trading.
Convergence refers to a situation where both the price of an asset and a technical indicator are moving in the same direction. For example, in a...
When most new traders finally switch over from demo to live trading, they usually believe that their demo trading results can easily be replicated on a live account. Because of this misconception, many are left frustrated and demoralised when they finally realise that this is far from the case. Here are a few reasons why:
Real money and real emotions
Demo is...
Have you ever noticed a time when a certain product went up and another similar product went down at around the same time? Or when that product went down and another product also went down at the same time? If the answer is yes, then what you noticed was 'product correlation' in action.
What exactly is product correlation? In the financial markets, correlation is...
