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Trading signals and online forecasts EUR/USD

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Daily trading forecast for January 21, 2022
EUR/USD, currency, GBP/USD, currency, Bitcoin/USD, cryptocurrency, Gold, mineral, Daily trading forecast for January 21, 2022 Euro/DollarThe euro/dollar currency pair confidently fixed at lower trading levels, reaching 1.1312.The yield of US Treasury bonds stopped the growth and was fixed at 1.811%. While on Wednesday there was a jump to 1.9% per annum, but by the close of the market there was a decline to 1.869%. Despite the downward trend, against the background of growing expectations of tightening measures by the Fed, the yield of government securities still maintains maximum positions.Experts predict that the base interest rate will rise by 25 basis points in March. The focus is on the Fed meeting, which will take place early next week. Market participants are eagerly awaiting comments from Central Bank executives.The exchange rate of the currency pair is still sensitive to the news background. The publication of leading US economic indicators is expected.Pound/DollarAfter the breakdown of the support level of 1.3622, the pound/dollar currency pair was fixed in the trading range of 1.3622 - 1.3573. At the moment, the US currency occupies a leading position. Quotes support a downtrend.After a rapid rise, the UK bond yield took a downward course, reaching the level of 1.2285%.The results of last week showed an increase in the number of Americans who applied for unemployment benefits for the first time. The figure has increased by 55 thousand people, which is the maximum since October 2021.The week ended with an increase in trading activity in currency pairs with the presence of the pound. Friday's agenda includes the consumer price index, the retail sales index, as well as the volume of retail sales.GoldThe prospect of the formation of an ascending channel is increasingly being traced in the gold market. To maintain this rate, the banking metal must break through an important resistance level in the area of 1847.29. The restraining level against the decline of the currency is the area of 1830.47 dollars per ounce.Trading Thursday ended with a fall in the US stock market, due to negative dynamics from the consumer services, raw materials, and technology sectors. The Dow Jones declined by 0.89%, the S&P 500 index fell by 1.10%.According to Eurostat, consumer prices in the eurozone rose by 5% in December compared to the same month last year, reaching the highest since July 1991. The inflation data in December coincided with the forecasts of experts.CryptocurrenciesThere was a sharp decline in bitcoin to the support level of $40575. The prospect of a breakdown of this mark can cause large-scale sales.By the end of Thursday, the capitalization of the cryptocurrency market amounted to $1.91 trillion.The largest digital assets continue to lose ground amid expectations of a tightening of monetary policy by the Fed. At the beginning of the year, the BTC/USD rate fell by 9.3%.The focus remains on the issue of the Federal Reserve raising the base interest rate in March. Experts predict a rise of more than 25 basis points. Market participants are also waiting for comments from the heads of the Central Bank, after the next meeting of the Fed, which will be held next week.The cryptocurrency market is still strongly influenced by the news background. And the next strengthening of the dollar will only contribute to a decrease in their quotes. Janet Yellen, the current Finance Minister, is expected to speak in the United ...
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The euro/dollar exchange rate is consolidating around 1.1312
EUR/USD, currency, The euro/dollar exchange rate is consolidating around 1.1312 Forex. Euro/Dollar (EUR/USD) forecast for today. The currency pair has firmly established itself in a lower trading framework.The yield of 10-year US Treasury bonds has stopped its growth, and is now at 1.811%.Maintaining high yields of US Treasuries supports the dollar - the higher the rates, the more attractive the US currency is for buyers. On Wednesday, the yield on ten-year obligations of the US Treasury rose to 1.9% per annum, but by the close of the market it had fallen to 1.869%. On Thursday, it is 1.855%. Despite a slight decline, yields on government securities have been at their highest since February 2020, due to growing expectations of a faster than previously expected tightening of policy by the Federal Reserve System (FRS).The Fed is expected to raise the base interest rate in March and raise it at least three times in 2022. Some experts believe that the rate hike in March may amount to more than 25 basis points. The next meeting of the Fed will be held on January 25-26, and the market is waiting for "hawkish" comments from the Central Bank's leaders.Today, the euro/dollar exchange rate will be influenced by important news. The index of leading economic indicators of the United States and the speech of Finance Minister Janet Yellen will be released in the United ...
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EUR/USD - Technical analysis of the EUR/USD currency pair on January 21
EUR/USD, currency, EUR/USD - Technical analysis of the EUR/USD currency pair on January 21 At trading in Asia on Friday, the EUR/USD currency pair is trading with an increase in quotations, remaining within the current support level at 1.1286 and at the resistance level at 1.1366. The four-hour chart progresses in the area below the exponential moving averages, demonstrating the bearish potential of this market in the short term.Moving averages with a period of 21 and 55 days continue to move down and increase the divergence, which demonstrates the development of bearish potential for the continuation of the downtrend in this market in the short term.The technical picture also indicates the strengthening potential of sellers in this market, since the MACD histogram remains in the area below its central line, and the strength indicator of the current RSI movement has consolidated just below the 40 line, confirming the bearish potential in this market in the short term.Thus, we intend to sell this trading instrument ...
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Daily forecast for Janyary, 20, 2022
EUR/USD, currency, GBP/USD, currency, Bitcoin/USD, cryptocurrency, Gold, mineral, Daily forecast for Janyary, 20, 2022 Euro/DollarThe exchange rate of the currency pair continues its downward movement, reaching the level of 1.1321. If such dynamics are maintained, the next support can be expected at the level of 1.1275.The yield on US bonds is moving towards a recent high and is now at 1.854%.At the beginning of the trading environment, there was a slight decline in the dollar, after which it strengthened.Rising inflation and the expectation of tough measures by the Fed to contain it remain on the agenda. There is also ongoing talk about an interest rate hike in March. Short-term futures on the foreign exchange market have to take into account all the existing risks.Today it is expected to publish information on changes in the number of applications for unemployment benefits, the index of production activity of the Philadelphia Federal Reserve and the situation in the secondary real estate market.Pound/DollarThe pound fell against the dollar, reaching 1.3609. Active sales will lead the currency pair to the next level of 1.3573.The yield on UK bonds is close to the maximum in January 2018 and is at 1.2595%.Debt securities of England are following an upward trend, as are German bonds, which in 2019 for the first time traded above 0% against the background of the highest inflation rate in the last 30 years.Christian Lindner, the new German finance minister, called for increased fiscal stimulus in the Eurozone and the introduction of effective restrictions on government loans. These measures are necessary to control the situation on the market, after the reduction of support for the bond market by the European Central Bank.According to statistics, consumer prices rose by 0.5% in December and these figures are significantly higher than predicted. This situation affected the increase in the annual consumer price index (CPI) to 4.2%, and the base – to 5.3%.The week ended with an increase in trading activity in currency pairs with the presence of the pound. Today, attention is focused on the consumer price index, retail sales and consumer confidence.GoldGold broke through the support level of $1,830 per ounce. The banking metal continues to react to the dollar exchange rate, and is also sensitive to the existing risks of increased inflation. A new wave of growth is likely to have a positive impact on the currency and open up the prospect of reaching a new level of 1876.The trading environment ended with a fall in the US stock market, due to negative dynamics from the financial, consumer services and technology sectors. The Dow Jones declined by 0.96%, the S&P 500 index fell by 0.97%.Risks of increased inflation remain. In Canada, in December 2021, consumer prices increased by 4.8%, compared to the same month in 2020. Such figures were predicted by experts. Annual inflation was 4%. A new wave of growth will only increase interest in assets such as bitcoin and gold.CryptocurrenciesBitcoin maintains a downtrend and is currently at the level of 41825. The trading activity of digital gold is strongly influenced by the growth of inflation.According to the results of Wednesday, the capitalization of the cryptocurrency market amounted to 1.97 trillion dollars, as on Tuesday.According to Arcane Research, the correlation of the bitcoin exchange rate and the S&P 500 index has peaked since October 2020. And bitcoin's trading activity has fallen to its lowest level since July last year.Over the past month, the digital currency has become cheaper by 10%, reducing the capitalization to $ 795 billion. Despite the fact that in November last year, the value of bitcoin reached a historic high of $69 ...
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The euro/dollar exchange rate turned around from the support level of 1.1321
EUR/USD, currency, The euro/dollar exchange rate turned around from the support level of 1.1321 Forex. Euro/Dollar (EUR/USD) forecast for today. A strong signal for sellers is that the eurodollar chart has formed a downward movement. In case of further strengthening of the US currency, we can expect support to reach 1.1275.The yield on 10-year US Treasury bonds is approaching its recent maximum, and is now at 1.854%.The dollar declined slightly at the beginning of European trading on Wednesday, then consolidation began. Earlier, the course of trading was influenced by an increase in bond yields and a significant decrease in risk appetite, when the US market started working again on Tuesday after the weekend was extended due to the holiday.The main driving force of recent trading was fears of inflation, and expectations of tough actions by the Federal Reserve System to contain it. But at the same time, talks about raising the official interest rate by 50 basis points at the March Fed meeting are still actively underway, and short-term futures on the money market have begun to indirectly take into account this risk.Today in the USA, the publication of the number of initial applications for unemployment benefits, the index of production activity of the Philadelphia Federal Reserve, and sales in the secondary housing market will take ...
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The exchange rate of the European currency declined against the dollar to the level of 1.1327
EUR/USD, currency, The exchange rate of the European currency declined against the dollar to the level of 1.1327 Forex. Euro/Dollar (EUR/USD) forecast for today. During the day, there was a negative dynamics of trading in the euro/dollar pair. It is possible that market participants closed long positions on the euro before the publication of important economic statistics for this week. The focus will be on the number of initial applications for unemployment benefits, the index of manufacturing activity from the Philadelphia Federal Reserve and sales in the secondary housing market.The yield on 10-year US Treasury bonds has risen significantly, and now it is at 1.847%.On Tuesday, the dollar received support as concerns about inflation led to the fact that the yield of 10-year US government bonds reached the highest level in the last 2 years. Meanwhile, the yield of 2-year US Treasuries rose to 1.026% from 0.965% at the close of the previous session, it held near the highs since February 2020.The interest rate of 30-year Treasury bonds increased to 2.165% from 2.114%.According to many experts, the market is beginning to quickly prepare for an increase in inflation and a more aggressive Fed policy. The probability of a rate hike in March is now estimated at 100%.The number of construction permits issued and the volume of construction of new houses will be released ...
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EUR/USD - Technical analysis of the EUR/USD currency pair on January 19
EUR/USD, currency, EUR/USD - Technical analysis of the EUR/USD currency pair on January 19 At trading in Asia on Wednesday, the EUR/USD currency pair is trading with a slight increase in quotations, remaining within the current support level at 1.1312 and at the resistance level at 1.1456. The four-hour chart progresses in the area below the exponential moving averages, demonstrating the bearish potential of this market in the short term.The moving averages with a period of 21 and 55 days slowed down, turned down and significantly reduced the discrepancy, which demonstrates the bearish potential for the continuation of the downward trend in this market in the short term.The technical picture also indicates the strengthening potential of sellers in this market, since the MACD histogram remains in the area significantly below its central line, and the strength indicator of the current RSI movement has dropped to the 40 line, confirming the bearish potential in this market in the short term.Thus, we intend to sell this trading instrument ...
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The exchange rate of the European currency declined against the dollar to the level of 1.1410
EUR/USD, currency, The exchange rate of the European currency declined against the dollar to the level of 1.1410 Forex. Euro/Dollar (EUR/USD) forecast for today. Throughout the day, there was a versatile trading dynamics - there was an attempt to test the local resistance of 1.1427.The yield on 10-year US Treasury bonds has risen slightly, and now it is at 1.793%.According to media reports, futures on short-term interest rates in Europe imply that even the European Central Bank will be forced to raise its key rate before the end of the year, despite the persistent signals sent by the bank's management to the contrary.In the last European session, the euro and the pound sterling failed to rise to the 2-month highs reached last week, and began the week mainly with a fall. The euro rose 0.1% against the dollar to $1.1427, while the pound rose 0.1% to $1.3682. There are risks, Prime Minister Boris Johnson may be forced to leave his post for being behind repeated violations of the COVID-19 rules by both himself and his staff.Today, the focus will be on the ZEW index of economic sentiment in Germany and the European Union. The NY Empire State manufacturing activity index and the volume of purchases of long-term securities will be published at the American ...
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Weekly review. January 10, 2022
EUR/USD, currency, US Dollar Index, index, Brent Crude Oil, energetic, Gold, mineral, Weekly review. January 10, 2022 The year 2022 on world markets will largely be determined by the tightening of monetary policy in the United States, and the first week of the new year confirmed this. The minutes of the Fed's December meeting published last week showed a significant tightening of the position of the regulator's representatives – Fed members believe that the rate can be raised as early as March, and also see a faster reduction in the balance sheet as appropriate. Representatives of the regulator believe that the current economic conditions are already in many ways conducive to tightening the labor market, some even noted the recovery of the labor market already sufficient for such actions, although the majority still expects further improvement in the labor situation. Against this background, it is worth noting the publication of December labor data in the United States, which came out ambiguous. On the one hand, employment in December increased by only 200 thousand. The Bloomberg consensus forecast assumed an employment growth of 450 thousand, and the actual growth rate of the indicator was the lowest since the beginning of 2021. Nevertheless, in many respects such weak employment growth is explained by seasonal adjustment, and the unemployment rate in December fell more than expected. Thus, the indicator has updated the next lows since the beginning of the pandemic, dropping to 3.90% against the expected 4.10%. The unemployment rate continues to approach a historic low of 3.40%, and labor statistics have further increased fears in the market of an imminent tightening of the PREP in the United States. As a result, on Friday, the yields of ten-year US treasuries at the moment exceeded 1.80% per annum - the maximum since the beginning of the pandemic. Today they have returned to these levels again.This week, the dynamics in the market will continue to be determined by expectations for the actions of regulators - investors will follow the statements of representatives of the Fed and the ECB, as well as the publication of price data in the United States for December. Statistics published last week showed an increase in inflation in the EU to 5.00% YoY. As a result, the topics of price growth in December updated the historical maximum, while analysts expected a slight slowdown in price growth. The situation on the supply side also has high inflation in the United States. The December business activity indices indicated a slight easing of logistical problems, however, the further deterioration of the epidemiological situation again intensified disruptions in logistics chains, which does not lead to a significant slowdown in price growth. The FAO World Food Price index fell in December for the first time since July, but food inflation remains at elevated levels. Against this background, US inflation data is likely to continue to bring the Fed rate hike closer, intensifying the negative in the markets.The main event for the oil market in early 2022 was the OPEC+ meeting. However, as expected, it was decided to stick to the current plan to increase production. Nevertheless, the cartel lowered its forecasts for a surplus in the oil market, which allowed Brent crude futures to exceed the level of $80/bbl. Moreover, against the background of interruptions in the supply of black gold from Kazakhstan and Libya, quotations were close to $83/bbl. However, at the end of the week they declined from these levels, today Brent futures are growing by 0.35% and are trading around $82.05/bbl. The main negative for oil this week may be related to the potential strengthening of the dollar amid expectations of a tightening of the PREP in the United States. However, in the absence of a significant strengthening of the dollar, Brent futures may still exceed the levels of $83/bbl– - the quotes may be supported by another weekly decline in oil ...
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Forex and Binary Options - which is better?
EUR/USD, currency, Gold, mineral, Forex and Binary Options - which is better? Recently, I see that more and more traders are starting to switch from Forex to binary options. This is understandable, because it is easier to trade binary options, and profitability, of course, is also higher. In general, I myself gave up Forex in favor of binary options 6 years ago. But since the topic is so relevant now, let's figure out which is better – Forex or binary options, comparing the pros and cons of both types of earnings.Forex and binary options: a brief comparisonGet and sign up: profitabilitySo, let's start our comparison with such an important point as profitability. When trading binary options, the profit ranges from 75 to 95% of the invested investments. In Forex, the profit is unlimited. However, in order to get a high percentage of earnings on Forex, you will have to correctly predict large price fluctuations, whereas only 1 point is enough on binary options. I think there is no need to explain that binary options trading is more profitable in the long run.Read more: What are binary options?Is risk a noble cause? What is the difference between Forex and binary options?The next difference between binary options and forex is the risks themselves. Forex trading involves constant manual work with risks due to the correct placement of orders for opening and closing transactions (stop losses and take profits). On the one hand, this is convenient, since it is always possible to rearrange orders and wait for the very moment when it will be possible to make a profit or breakeven… But on the other hand, as a rule, a Forex trader needs to have an impressive deposit in order to withstand long drawdowns. In addition, the trader is constantly experiencing psychological pressure (whether he closed the deal on time, whether he placed orders correctly, etc.). It is also important to say that traders who do not have large deposits are forced to use the broker's leverage, which multiplies not only the profits received, but also, of course, losses.Binary options brokers relieve traders of psychological responsibility for placing orders. It is enough for a trader to decide on:the size of the bet (as a rule, its size ranges from $5 to $25),the end time of the transaction.Thus, all work with risks consists in trading with a minimum percentage of the deposit. So, in fact, Forex differs from binary options only by a risk management system. It is not enough for a forex trader to open a deal in the right direction, he also needs to calculate how many points the chart will pass and where to put a stop loss / take profit correctly.Read more: What is Forex in simple wordsAnalysis is the mainThe same tools are used for analysis and forecasting in both types of trading: indicators, news, volumes, price patterns, etc. It turns out that, other things being equal, it is easier to do analysis for binary options, since it is enough to correctly predict only the direction of the price. In Forex, in addition to the direction, as I wrote above, you need to determine the approximate number of points in order to correctly place orders to close transactions.Time is moneyThis point can be interpreted in two ways. For someone, it is important how much time trading takes in total, for someone this moment is not fundamental. In any case, it is clear that Forex takes much more time than binary options. After all, you need to constantly work with orders to influence the outcome of the transaction.Number of assetsThe most popular assets on binary options and Forex are currency pairs and precious metals (in particular, EUR/USD and Gold). However, if the choice is limited for a Forex trader, then a binary options trader has alternative options. This:stocks,indexes,futures,the so-called "pairs" (the ratio of shares of one company to shares of another, for example: google/apple).Thus, a larger number of potentially profitable trades will be available to you on binary options.Read more: What is a spread in trading Forex and stocksOnce again about money: commissions and spreadsActually, the difference between Forex and binary options is also the trading conditions themselves. Forex traders must necessarily pay the broker the spread from each open transaction.  What is a spread? The spread is the difference between the purchase price of an asset (bid) and the sale price of an asset (ask) (roughly speaking, the same difference can be seen at any currency exchange point). At the same time, traders do not pay any commissions to the binary options broker, either from investments or profits.Lend a shoulder to a friend: leverageA very important point, in my opinion. Applies only to Forex, but nevertheless it is important to pronounce it. The minimum lot (financial contract) on Forex is $100,000. Naturally, an ordinary person cannot start trading with such amounts. In this regard, the Forex broker is ready to provide its clients with leverage. For example, with a deposit of $1,000, the broker is ready to "add" $99,000 to the trader so that he can enter the market. However, the broker will not risk his money, instead he will limit the maximum amount of losses on the account to 1% (the same $ 1000). What does this lead to? To the fact that traders often start trading large lots and quickly lose money.What to choose, forex or binary options?So, binary options or still Forex? My answer to this question will not be objective, because I made my choice a long time ago. For those who have not yet decided, I can give one piece of advice – decide for yourself which type of trading is most suitable for you. It is difficult to predict in advance which method or strategy will bring the greatest profit, but one thing I can say for sure - binary options today provide the lowest entry barriers to the world of trading, making it simple and accessible to everyone. And a large number of binary options brokers allows everyone to find the most convenient platform for themselves. By the way, some brokers have forex simulators built into the platform.Well, I suggest that all novice traders read the article about the main mistakes that beginners make in trading.Read more: Forex or Binary Options? The difference between Binary Options and ...
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Forex trading: understanding the forex market
EUR/USD, currency, GBP/USD, currency, USD/JPY, currency, Forex trading: understanding the forex market The foreign exchange market is better known as Forex or FX. Trading in this market has become very popular in recent years. However, this is not the case - Forex trading raises a number of questions. For example: what is the foreign exchange market? Which currency pairs are best to trade? Is currency trading risky? Some of the answers to these questions will be found in this article.What is the Forex market?The foreign exchange market is also called the Forex market or the English foreign exchange market. It is simply a market where currencies are exchanged. According to the Bank for International Settlements (BIS), the foreign exchange market is the largest market in terms of total volume, with up to USD 5 trillion traded daily. It is not a physical place, but rather an electronic network where institutions or individuals trade with each other.The left-hand currency is called the base currency and the right-hand currency is called the quote currency. The second currency indicates the value relative to 1 unit of the base currency. For instance, the formula EUR/USD = 1.4000 implies that EUR/USD trades at 1.4000, i.e., 1 Euro has a value of $1.40. The first currency is always expressed in the second currency. USD/JPY at 110.50 means that one USD is worth JPY 110.50. EUR/USDWhat are the best currency pairs to trade?The best currency pairs to trade effectively depend on your trading style. If you have a short term strategy, for example, if you like to scalp, then the major currency pairs will be most profitable for you because of the low spreads.On the other hand, for a fundamental trader, smaller currency pairs will be of interest based on long-term analysis. The most profitable currency pairs may be those involving the Australian dollar, Japanese yen or Canadian dollar.The best forex currency pairs:EUR/USD: this pair has the lowest spread and is not very volatile.GBP/USD: this pair is interesting in terms of spreads and possible gaps, but it is quite volatile.USD/JPY: this pair has low spreads and offers some interesting possibilities. GBP/USDHow to get started trading currencies online?To start trading currencies online, follow these steps:- Choose a regulated and reputable broker- Choose a broker by the quality of execution of trading instructions- Decide on the trading style that suits you best (scalping, intraday trading, swing trading - you keep your position open for several days)- Determine the appropriate leverage effect in the stock market according to your strategy and experience.- Do not invest more than you can afford to lose.- Choose an intuitive, simple and secure trading platform such as MetaTrader 4.- Try all the above steps on a demo account, before trading live.Read more: Features of intraday trading on the Forex marketGoldIs online currency trading dangerous?Like any financial investment, currency trading online is subject to risks. However, there are different methods to control these risks:- Determine the price of the currency pair at which you want to close a position if developments are unfavourable (for example, if you buy and the price falls, or if you sell and the price rises),- Determine the size of the trade so that your potential loss should not exceed 2-3% of your capital per trade,- Estimate your risk/return ratio (loss/profit) before you open the trade. By default you should have a greater potential for profit than loss, e.g. risk 50 pips, but try to make a profit of e.g. 100 pips.For proper money management and risk reduction it is advisable to start trading on a demo account and try things out on the dirt first. Such an account will allow you to trade in real market conditions, but with fictitious capital, so that you have a complete understanding of the foreign exchange market without any risk.Read more: Forex broker: how to choose a good ...
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How to become a trader from scratch
EUR/USD, currency, How to become a trader from scratch Making money from price movements is the fastest way to make a profit. You can double or triple your investment in just a few minutes. This is what many people, tired of overwork or unemployment, would like to do. And so most of these people began to wonder how to become a trader from scratch, what it takes and how promising this kind of activity is. The answers to these questions are covered in the following overview.Who is a trader?To begin with, we must try to understand who a trader is. Essentially, he is a common speculator, who buys cheaper and sells dearer. To do this, he needs to have a stock of money - in today's world, this is electronic money. Also, he needs access to the quotes and assets to be traded, all these conditions are provided by numerous brokers.The trader earns money on the difference between the buy and sell price. And it does not matter whether the price is falling or rising. Anyway, with accurate analysis, he will always be in the black.Professional skills and knowledge of the traderTo have such prospects let's consider what you need to become a trader:Firstly, one needs to have a trading terminal or access to one online;Secondly, you need to understand how to evaluate the possible rise or fall of quotes. And for this you need to have your own trading strategy;Thirdly, you need to know how to manage your money. This science is called money management;Fourthly, to become a trader from scratch you have to manage your emotions and control your behavior when analyzing or opening a deal;Fifthly, you need to choose fundamental or technical analysis.Read more: The main components of a Trading StrategyBut these are not all the conditions. Although they are easy to follow, you will have to develop or strengthen your existing skills and personal qualities. A trader must be stress-resistant, ready to process huge amounts of information, and make numerous calculations. They must also:Know how to use his calculations;be able to stop and rest on time;be disciplined in their analyses, keep notes, and not disregard trivialities.At the same time, a future trader should not be complacent. This work is constant professional growth. Experienced traders never stop at their achievements. They have to improve their trading systems and find brokers with more favorable conditions. And in recent years, such traders have to master automated trading, where trading experts, expert advisors, systems, and robots are used.What else a true expert in trading should possess is the ability to choose assets for trading. There are hundreds of currency pairs available for those who want to become a Forex trader.The cryptocurrency market is gaining particular interest, especially among young traders. There are already hundreds of trading instruments with different volatility and yields.There are about the same number of commodities, stocks, options, and futures. This direction will be of interest to those who wish to become a trader in the stock market.Read more: Volatility: types, how to track and how to useClassification of tradersProfitability and speed of making profit are the main criteria in classifying traders. There are such types of currency, stock, and cryptocurrency speculators:Scalper - trades in time intervals of no more than 5-15 minutes. They can open dozens of deals during a day and always have a lot of false signals, so they take as little profit as possible from each deal;Intraday trader (intraday) - works with timeframes from 15-30 minutes to 1 hour chart. He closes all his orders before the end of the trading day;Mid-term - trades for several days. As a rule, it is executed until the next weekend. Leaves deals with positions rollover to other days; analysis is conducted on H1-H4 timeframe;A trader with a long-term outlook - opens positions only on daily, weekly, and monthly charts. Its transactions can be active from 2-3 weeks to a year.You may become a trader in any of these categories, the main thing is to follow the sequence described below.Read more: What timeframe is the best to trade onThe 6 steps of becoming a traderThere are only a few steps to become a trader - some of them are very simple, others will take some time. So - how to become a trader, step by step:Get training - on the basis of the chosen broker, on books of famous speculators, on third-party resources, professional webinars.To choose the broker with the necessary set of instruments, official registration, financial license, and obligatory registration at the international regulator.Develop your own trading strategy.Open a demo account, which you can use to test the broker's conditions, service quality, and testing your trading system.Open and deposit an objective real account.Make a trading plan.That's basically it. Now become a professional trader, start earning and take pride in your new profession. Having passed all these stages, in the near future you will see whether it is worth becoming a trader or not. The fact is that you can earn by investing in trading. But it is a separate topic for discussion.Read more: Forex broker: how to choose a good brokerAmount of profit and tips for beginnersProfit depends on the size of the trading deposit, the number of opened orders, and the number of profitable deals. The trading lot size, the amount of leverage, broker's fees - all this affects the final sum of the profit. In practice, you will have to learn how to calculate all these things.Traders with experience advise not to make mistakes. For example - do not rush headlong into trading, leaving your main work. There is no need to borrow money to replenish your deposit - only use your own, even if it is small.Do not treat this activity as a game, an extra income - it is a job like any other.And now that you know everything you need to know about this job, take the first steps in mastering the profession and become a successful trader, and earn as much as you need for full financial well-being!Read more: What is a Leverage in ...
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Fiat money
EUR/USD, currency, GBP/USD, currency, Fiat money According to the general opinion, the origin and functioning of monetary systems are among the most difficult to understand issues of economic theory. In this situation, it is important at the initial stage to give clear and functional definitions of the basic concepts.Types of moneyMoney is considered to be assets that perform the functions of a means of circulation, account units and savings funds. Depending on the method of issue, three types of money can be distinguished:commodity moneycredit moneyfiat money.Commodity moneyCommodity money has been known since ancient times. Their value was determined by the value of the material from which they were made. Commodity money played an important role in metal monetary systems.Credit moneyCredit money (inside money) appeared with the emergence of the first banks. They were debt obligations of banks – banknotes or deposits. Their value was secured by the assets of the issuing bank. Credit money was important in countries where there was no state monopoly on the issue of money.According to the alternative history of money, the first money is often considered to be debts on commodity loans – they were used as a unit of account. After a while, the temples (as organizations that enjoyed unconditional trust) began to recognize these debts, and they became a means of circulation. Subsequently, with the emergence of large-scale production, for the organization and launch of which large-scale investments were required, money-debts turned into a full-fledged means of accumulation.Thus, according to representatives of the alternative concept, metal coins, traditionally considered "universal equivalent" and "real money", appeared later than debts and were derivatives in relation to them. An alternative history of money can provide another explanation for the development of the monetary sphere in the past, as well as its features in the present. According to this version, banks are not "money warehouses", but buyers of debts. Recognizing debts, modern banks, like temples in ancient times, turn them into money accepted by everyone. To do this, they do not need to accumulate goods (precious metals) or other types of means of payment.The basis of the value of a loan is the creditworthiness of its counterparty, that is, the confidence that the counterparty will repay its debt on time. This confidence was provided by organizations that, thanks to their reputation, massively accepted (bought) debts: in ancient times – temples, later – banks. The value of the accepted debts was ultimately given by the state:in the law, these funds were declared a national monetary unit, they were guaranteed state support;they were taken into account for the payment of taxes;citizens were obliged to repay their debts to each other with them.Fiat moneyFiat money or fiat currencies (outside money, from Lat. fiat - decree, instruction) were issued by the state in the form of treasury notes. Their value was based on trust in the state. With the emergence of the state monopoly on the issue of credit money created by banks, they were equalized in rights with fiat money. Therefore, all modern money can be considered fiat.Their value is based on trust in the monetary system as a whole. The state, represented by the central bank, not only issues cash, but also maintains confidence in non-cash money that banks create. In the future, we will use the term "fiat money" in relation to all modern money that is not provided with goods or other material values.Modern fiat money can be cash or non-cash. Cash and non-cash money can be exchanged in a ratio of 1:1. With the development of financial technologies, the popularity of cash is decreasing. The basis of the money supply in modern fiat money systems is non-cash money.From time to time, the attention of researchers and the general public is attracted by assets that can perform certain functions of money. Since the mid-2010s, cryptocurrencies issued by the private sector have been claiming this. Cryptocurrencies have separate properties of commodity and credit money.Digital currencies of central banks (central bank digital currencies) is one of the widely discussed projects in the field of monetary circulation in the early 2020s. If they fully perform the functions of money, by their nature they will belong to fiat money.Issue of fiat moneyIn metal monetary systems, the size of the issue is limited by bank reserves (liquid assets of banks). In fiat systems, such restrictions disappear. But it does not follow from this that the issue of fiat money is not limited by anything.Today, the credit activity of commercial banks is influenced by:interest rate policy of central banks;regulatory standards and measures aimed at achieving financial stability;strict limitations of modern banking risk management.Why did states switch to fiat moneyThe gold standard once played a certain positive role, contributing to the development of world trade and industry. At the same time, he had serious shortcomings:the flow of gold between countries, accelerated by higher rates, led to periodic crises;the more countries switched to the gold standard, the more gold was lacking;under the conditions of the gold standard, the central bank could not adequately perform the functions of a lender of last resort.The emergence of fiat money systems solved the problem of the lack of "money metal". But from the very beginning there were risks:for price stability - historically, the state has a reputation for "living beyond its means";for financial stability, fiat emission can lead to bubbles, and due to the growing interdependence of national economies, crises are becoming more "contagious".Maintaining financial stability for 2021 is still an unresolved ...
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The best Forex pairs for scalping
EUR/USD, currency, GBP/USD, currency, USD/JPY, currency, The best Forex pairs for scalping Scalping or scalping is a strategy that makes many demands on traders. Perhaps the most serious of them is to accept that everything you think you know about Forex trading will be wrong in this context.Forget about it. Scalping is an opportunity to quickly make money on price changes when transactions last 5-10 minutes.Avoid "political" currenciesDo you want to make money by trading a large amount of money in anticipation of some serious movement? No, scalping is earning money on small price movements. And, what is even more likely in relation to the Forex market, it is worth forgetting about searching for highly volatile pairs in the hope of getting a big profit. George Soros managed to do this in 1992, and you can try to repeat it on a smaller scale, but this will be an example of ordinary trading, not scalping.Successful scalping is based on the use of relatively insignificant price movements. And it depends on a good and thorough analysis of the relevant currencies.First, which currency pairs to choose for scalpingHighly "political" or inflation-prone currencies are not suitable in this context, because they are likely to be very volatile, and high volatility should be avoided.Read more: Volatility: types, how to track and how to useLanguage barriersIt is much better to find a currency pair that is relatively stable, so that its movement can be analyzed and predicted.The obvious candidate would be the EUR/USD exchange rate. This is the most popular currency pair in the world, for which the most transactions are made, and it has many functions that we need.But it has drawbacks.First, it may seem at first glance that these two currencies are, by and large, equivalent. Both are equally popular, issued by developed democratic states, controlled by independent central banks, but in fact they are not comparable.Read more: Causes of inflation and scientific approaches to their studyThe dollar is the currency of a successful political union, it is supported by the federal government and the national treasury, and the central bank, the Federal Reserve System, enjoys broad public support. The euro, the currency of 19 national states, is not supported by the federal government, is prone to crises, as can be seen from what happened to Greece after the 2008 financial crisis, and its management is often criticized.The second drawback is the complexity of the analysis of the European Central Bank, unlike the Fed. There are many, many variables; the position of individual members of the board of directors, the demands of the" southern", poorer countries, the position of the European Commission, which is responsible for economic affairs, and the wishes of Germany, a powerful economy of the European Union.This is compounded by various language barriers that need to be overcome when studying the statements of those who determine the behavior of the ECB.Finally, the ECB is much more autonomous than the Fed.Perhaps the USD/JPY pair may be a more suitable option? The Japanese currency, like the dollar, is the currency of a single state, and the two economies conduct extensive trade with each other. But the language barrier is even more pronounced, and the Bank of Japan is not independent, which means that it is potentially open to political interference.Read more: The European Central Bank (ECB)Communication across the AtlanticThe best candidate for scalping may be USD/GBP. The Fed and the Bank of England are independent but accountable central banks, there is no language barrier, and the legal systems of the two countries are very close.The recent dynamics of the pound against the dollar was quite high, which gives scalpers the opportunity for significant profits. The reasons for this movement include the signing of a trade agreement with the European Union and hopes for the recovery of the UK economy.To predict strong movements in the short term, traders need a thorough and constant analysis of the factors that affect the movement of currencies: economic expectations, fiscal policy and, of course, interest rates. Scalpers will be helped by the fact that both countries have the same attitude to economic management, giving priority to a strong private sector, competitive tax rates and high growth rates.Plus, the US and the UK have a long history of bilateral inter-Atlantic trade.Transactions with GBP/USD may lack the attractiveness of exotic currency pairs, but scalping is not an adventure in the Forex market, but a way to make a profit.Read more: Rich history of the Bank of ...
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Why does my Trading System show a signal to sell, but no one is selling?
EUR/USD, currency, Why does my Trading System show a signal to sell, but no one is selling? Now it's a time for you for managing to develop your own Trading System (TS). Let's start testing it. Even the development of a unique trading system does not guarantee that the owner of the system will start making money in forex.A good trading system should skillfully give signals both in a trend and in a trading corridor (which is sometimes called a sideways trend).If your TS works well only in a corridor, it will always tell you to sell when it gets to the upper boundary of the corridor. And when the bulls will break through the level, it will start shouting that a unique moment to sell has arrived. In reality, however, it is dangerous to enter a bearish trade when this level is broken through because you will start losing money as soon as the level is broken through. The situation will be exactly the same when you break the support level.Read more: How to determine the beginning of the movement of the "bull" market?The trend trading system will cheat you the moment the quotes are locked into a narrow corridor. When approaching the upper boundary of the corridor the system will give a signal to buy, and for the corridor this is the perfect place to sell. As a result, you will be constantly chasing the market, lagging behind profitable traders by several steps.Why else would trading system signals mislead a trader? Some developers create TSs, which work fine only at certain intervals. For example, a trading system can give good signals only on the hourly chart. And if one tries to adapt it with the programmed parameters on the 15-minute chart, the trader can expect problems.Quite often the market starts growing unnoticeably on small intervals, and later bigger players catch the beginning of the movement. Then the increase in quotations becomes visible even on the hour and higher charts.Other trading systems may be solely suitable for trading the Euro against the US dollar, while the GBP against the same dollar may give false signals.What should be done first? After development, proceed to the testing phase on a demo account. Do not invest real money until you are sure that the signals are indeed correct. Therefore, move on to trading with real money only after the final testing and obtaining profitable results.Read more: Bulls and bears, as well as other animals on the stock ...
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