Understanding ECN Order Flow Trading
Within the current forex market environment, there exists two kinds of brokerages – Market makers and Electronic Communications Network brokers. Since the forex markets is primarily unregulated, there exists no central center for forex trading. The ECN system was implemented to provide traders with immediate access to the forex market, allowing them to match themselves with other traders, and conduct transactions.
Fast Breaks and False Breaks
Most traders live for breakouts. Indeed, scalpers and intraday traders pine for them. Not only can traders reap enormous profits, but the thrill of trading breakouts can make the whole venture even more worthwhile. Breakouts can start trends, but also illuminate longer term trends as well, providing confirmation to fundamentals and sentiment. It can be described like a thunderstorm where the sky opens up, lightening strikes, things go boom, and all is clear afterwards.
Forex Carry Trade
The carry trade is straight forward. Simply, it is interest paid to traders for holding a certain currency overnight. A good example can be seen with Japanese Yen (JPY). Japanese interest rates have been low for over two decades. Interest rates and yields for other currencies-and for some assets denominated in those currencies-such as the USD, have been higher. Traders selling JPY and buying USD for example, earn interest if they hold their position overnight, or for longer periods. This is essence of the carry trade.
How to Draw Trend lines And Trade Like a Pro
If there was a technical analysis university, trend lines would be taught to students in TA 101! Any technical trader should be able to identify the underlying trend and know how to draw trend lines to take advantages of the dips in price.
What is Your Trading Personality?
The trading performance is closely related to the trading personality. Every trader is different and depending on the personality, it is easier to find the right way to trade. What are the main trading styles? How to figure out which trading style is most suitable to your personality?
The Basics of Swing Trading
The trading style solely depends on the individual agenda and preferences. One of the effective way to trade forex is swing trading. What is swing trading anyway? What is common misconception about swing trading? How can you swing trade efficiently?
Trading News – A “No-Go” Zone?
Trading forex can be based on technical indicators from the charts or on pure forex news releases. Major news affairs and economic data make huge impact on currency movements and ignoring new releases sounds like a big mistake. However, a lot of traders choose not to include forex news in their analysis. Why is trading news more difficult then it sounds? What are the reasons for traders to stay away from news trading?
Forex Trading on News and Economic Releases
The movement of the prices in forex trading depends on news and economic releases. Trading according to the news is one of the widely used trading techniques. The question many ask is how to trade the news and is it easy.