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Forextradingforbeginners

High Volatility Trade Management & Risk Management Strategies With a current geopolitical uncertainty and the election of Trump, forex market and gold experience wild price fluctuations. These unpredictable swings can result in substantial losses, particularly for the beginners in trading. In this article, I will share with you the essential trade management and risk management tips for dealing with extreme volatility in trading. I will reveal proven strategies and techniques for avoiding losses and unexpected risks. 1. First and foremost, pay attention to the news. The main driver of high volatility on the markets are the news , especially the bad ones. In normal times, high impact news events are relatively rare, while in times of uncertainty their frequency increases dramatically. Such news may easily invalidate the best technical analysis setup: any powerful support or resistance level, strong price action or candle stick pattern can be easily overturned by the fundamentals. Trump tariffs threats against Canada made USDCAD rise by 400 pips rapidly, while the change of rhetoric quickly returned the prices to previous levels. One you hold an active trade, monitor the news. If you see the impactful news that may affect the pair or instrument that you trade, immediately protect your position, moving stop loss to entry. It will help you avoid losses if the market starts going against you. 2. Even constantly monitoring the news, you will not be able to protect yourself from all the surprising movements. Sometimes your trades will quickly be closed in a loss. Therefore, I strictly recommend measure a lot size for every trade that you take. Make sure that you risk no more than 1% of your trading account per trade. That will help you to minimize losses cased by the impactful, uncertain events. 3. The impactful events may also occur on weekend, while Forex market is closed. Such incidents can be the cause of huge gap openings. If you hold an active trading position over the weekend, remember that your entire account can be easily blown with such gaps. Imagine that you decided to buy EURUSD on Friday during the NY session and keep holding the position over the weekend. A huge gap down opening would make you face huge losses, opening the market 125 pips below the entry level. By the way, this day I received a dozen of messages from my followers that their accounts were blown with the opening gaps. 4. If you see a significant price movement caused by some events, and you did not manage to catch it, let it go. Jumping in such movements is very risky because quite ofter correctional movements will follow quickly. It will be much safer and better to try to be involved in a trend continuation after a pullback. Look what happened with Gold when Trump began a new trade war. The price started to grow rapidly. However, even during such a sentiment, 500 pips pullback occurred, giving patient traders a safe entry point for the trade. 5. In the midst of geopolitical tensions and trade wars, the markets tend to rally or fall for the extended time periods. The best trading strategies to use to get maximum from such movements are trend-following strategies. While reversal, counter-trend trading might be extremely risky, providing a lot of false signals. Trend trading may bring extraordinary profits. These trading tips, risk management and trade management strategies and secrets are tailored for cutting and avoiding losses during dark times. Empower your strategy with this useful knowledge and good luck to you in trading high volatility on Gold and Forex. ❤️Please, support my work with like, thank you!❤️ I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
TRADENATION:XAUUSDEducation
by VasilyTrader
7
Who Moves the Forex Market | Forex Market Players Forex is the largest market in the world, with the tremendous daily trading volumes and millions of market participants. In this educational article, we will discuss who moves that market and who are its 6 the most significant players. 1. Governments Governments tend to set economic goals and influence the markets with their political decision. They define the course of their nations, issuing policies and imposing regulations. 2. Central banks Central banks implement the decisions of the governments, applying multiple instruments: Central banks control the emission of the money, shifting the supply and demand. They control interest rates and define the credit policies. Above is a top 10 of the biggest central banks by total assets. Central banks control the international trade and sustain the exchange rates of the national currencies by interventions and handling the foreign currencies and gold reserves. 3. Commercial banks Commercial banks handle the international transactions. Over 70% of total Forex Market transactions directly refers to the actives of commercial banks. In a pie chart above, you will find the biggest commercial banks by trading volume. Commercial banks are also involved in speculation activities, benefiting from market fluctuations by relying on various strategies. 4. Corporations Corporation is the business that operates in multiple countries. With the constant capital flow between its branches and counterparts, corporations are permanently involved in a currency exchange. Also, corporations usually hedge currency risks, storing their liquidity in particular currencies. 5. Investment funds By investment funds, we imply the international or domestic professional money management companies. Dealing with hundreds of millions of investments, they quite often are operating on Forex market, buying foreign assets, speculating and hedging. Below, you will find the list of largest world's hedge funds. 6. Retail traders The main goal of retails traders and speculators is to make short terms profits from their transactions on the market. Typically, the activities of traders constitute a relatively small portion of total trading volumes. Knowing which forces move the forex market, you can better understand how it works. The spot prices that you see on the charts reflect the sentiment of all the above-mentioned participants. ❤️Please, support my work with like, thank you!❤️
Education
by VasilyTrader
7
TradingView is Everything You Need to Start Trading If you are planning to start Forex and Gold trading, I prepared for you a list of 6 essential things that you will need for a successful start. 1 - Charting Software Obviously, if you want to trade, you should analyze the charts. Most of the beginners apply metatrader 4 or 5 for that. Even though meta trader is good as a trading terminal, from charting perspective it is already outdated. My recommendation to you is to apply TradingView for chart analysis. It is very user-friendly, it offers all popular trading instruments, and it has a wonderful community where you can check ideas and forecasts of experienced traders. 2 - Set up Your Watch List There are hundreds of different trading instruments for Forex traders: major and minor pairs, exotic pairs, cfds on gold, silver, oil, etc... Your task as a beginner is to focus on a very narrow list of trading assets. Build a trading list of maximum 8 instruments , learn to trade them and expand the list as you mature in trading. Here is the example of a watch list for beginners: 7 major USD forex pairs. 3 - Make a Trading Plan There are hundreds of different trading strategies and techniques in Forex trading. And obviously, you can not trade them all. Pick a strategy that you like, that makes sense to you. Focus on that and practice, practice, practice. 4 - Economic Calendar Even if you decide to trade only technical analysis, you should not forget to check fundamentals in the economic calendar and learn their impact on the markets. You need an economic calendar for that. There is an economic calendar on TradingView, it is very reliable and you can find the important news there Pay attention to important 3-star news, and preferably don't trade ahead of the releases while you are learning. 5 - Demo Account Trading education is a long journey. While you are studying trading basics and trying different trading strategies, you should strictly trade on a demo account. I recommend paper trading on TradingView, so that you could have the analysis and the trades on the same chart. 6 - Position Size Calculator You should learn to calculate lot size for your trades from the beginning. You should always know how much is your risk per trade. For that reason, placing the trades on a demo account, you should measure lot sizes for your trades. If you demo trade on TradingView, it offers a default position size calculator when you can set the lot size according to a desired risk. Good luck in your journey and be prepared to work hard!
OANDA:XAUUSDEducation
by VasilyTrader
3