Beginner Forex Trading
Margin is the $ amount that a trader provides to open and maintain a trade.
Using margin means trading using funds borrowed from a broker, the margin is taken from the traders deposit and serves as the collateral on each trade.
Each time you place a trade, you will only be required to put up a % of the total value of the position, the rest of the capital is provided by your broker.
Stacking and Scaling are not the same things in Forex trading. Scaling is a pretty common practice and has been around for quite a long time. On the other hand, Stacking has been getting a bit more attention recently in Forex trading in South Africa, and I feel like we need to address it.
Fundamental analysis is a method that involves estimating a security’s value by analyzing economic, political, and environmental factors and studying what may affect price in the future.
You could say that fundamentals focus on the driving forces behind market movements, while technical analysis emphasizes price movements on a chart.
In the world of Forex, there are a few things that every successful trader can without a doubt agree upon, and one of those things is that you need a trading plan to succeed in Forex trading. When you first start trying to make money in financial markets, you probably aren’t trading with any sort of trading plan or strategy, for that matter. If you’re lucky, you’ll lose enough money early on before you realize that you need a plan when you come to play this game. So what exactly goes into a trading plan?
Over the years I have spent a lot of my time trading the Forex markets, until one day when a friend of mine introduced me to indices. What are indices you may ask?
Indices are a measurement of price of a group of shares that are bundled together in an exchange, i.e., the NASDAQ, S&P500 or the DAX.
Forex trading can be very stressful if you allow it to. In my experience, certain things are definitely going to contribute to Forex being a stressful venture. If you just note these and try to manage them, Forex can be a good challenge and test your limits without breaking you down and forcing you to reconsider your existence.
Revenge trading occurs when a trader enters a new position right after a loss in an attempt to make money back immediately.
Anger, greed, and the fear of being wrong cause a trader to act irrationally following a loss.