ANKO

Hi, I would like to know more about difficulty of Forex.

Hi Sam, Hook Reversal refers to a candlestick pattern that indicates a trend reversal. This pattern takes shape once it reaches a higher low and a lower high compared to a previous candlestick. Traders can easily identify a hook reversal pattern as the second candlestick changes color and it’s a very common pattern among traders. The reliability of a hook reversal is relative to the strength of a trend that came before the pattern and that’s why traders use other patterns and indicators to confirm the hook reversal pattern. A hook reversal pattern can be spotted in both bullish and bearish markets. In case of a bearish market, this pattern takes shape at the top of an uptrend, while in a bullish market the pattern is created at the bottom of a downtrend. Usually, traders place take-profit and stop-loss orders for the reversal because the hook reversal pattern alone can’t tell you how big the reversal will be.

Hello, Bitcoin is the most popular cryptocurrency in the world. It was created in 2009 by a person who called himself Satoshi Nakamoto, whose identity is still unknown. 1 BTC is worth around $9,500 nowadays. Bitcoin Cash is a separate cryptocurrency, created and developed also by Bitcoin miners, who were concerned about Bitcoin’s future and its ability to scale efficiently. Back in 2017, Bitcoin miners and developers performed a so-called hard fork, which separated some of Bitcoin nodes and created a new digital currency - Bitcoin Cash (BCH). Perhaps the biggest difference between Bitcoin and Bitcoin Cash is that BCH has a larger block size of 8 MB, which allows faster transaction verification times, regardless of number of miners. Thus, BCH can process many more transactions per second compared to Bitcoin. However, while a larger block size allows faster transactions, its security has a bigger potential to be compromised, compared to Bitcoin.

The descending triangle is a bearish formation that consists of a descending upper trendline and a flat lower trendline serving as support. A descending triangle tells investors that the sellers are outshining the buyers as the price of the asset keeps dropping. The formation completes itself once the price exits the triangle, following the market direction. Traders can easily identify the descending triangle if they know where to look. The pattern can only appear in a downtrend when the market is in the consolidation phase. During this phase, a downward sloping trendline links the highs, telling us that the price of an asset is dropping as bears outnumber bulls. In a descending triangle pattern, the lower trendline acts as a support and the price can reach this level and bounce off. This process repeats until the price breaks through the lower flat trendline. When this occurs, a downward momentum confirms the pattern and traders can enter a short position.

Hi Stella, thanks for asking this question. Traders use Forex demo accounts to test out the trading platform, without using real money. With a demo account, traders can practise trading and get to know the live trading environment without putting capital at risk. Forex traders, especially those who’re new to trading or those who switched to a different trading platform are strongly advised to use a demo account in the beginning and get a feel of All Forex traders should use a Forex demo as their first Forex account to get acquainted with the currency market. Apart from improving their trading skills, there are many more advantages that a demo account brings. Think of it as trading training that involves using virtual funds. Becoming a successful trader involves spending a considerable amount of time practising the craft, and a demo account is an excellent starting point to at least familiarize yourself with the trading tools available on the platform.

Hi Stella, thanks for asking this question. Forex scalping refers to a trading strategy, focusing on the smallest market movements. This strategy involves making multiple trades in a bid to bring small profits. Scalping revolves around the idea to bring the investor small profits every few minutes, instead of holding a position for hours, or even days. Traders use scalping in Forex because it is the most volatile market out there. Investors try to take advantage of this volatility through forex scalping, trying to capitalize on fluctuations in small increments. This strategy is popular among investors because it provides them with many trading opportunities within the same trading session. The profit a trader can make with scalping on each trade is usually not higher than 10 pips, but the profits are constant and stable. However, bear in mind that scalping requires a lot of time and attention, as you have to constantly analyze the market and place a high number of trades.

Hi Stella, thanks for asking this question. A market order is a type of order that gets executed at the best possible price, as quickly as possible. These orders can be carried out only during the market hours and in stocks that are not suspended. When a market order is performed, a broker gets a security trade order and gets handled at a present price. Limit orders, on the other hand, let traders choose a maximum purchase price when placing a buy order, or a minimum sale price when placing sell orders. If the chosen price isn’t reached, the order will not be processed. For instance, let’s you want to invest in the stock of a company where current price per share is $54. If you place a limit order of $50, the order will get processed only if the price drops from $54 to $50, which means that you can only buy shares at the predetermined price.

Hi Stella, thanks for the question. Cold storage refers to preserving cryptocurrencies in an offline environment, or in other words, in a space that’s not connected to the internet. This concept is utilized to protect the cryptocurrency from cyber hacks and other types of unauthorized access. Cryptocurrency exchanges provide users with an ability to instantly withdraw their cryptocurrency. During this period of withdrawal, digital currencies are exposed to vulnerabilities and this is why cryptocurrency investors use cold storage to keep the reserves offline. Some of the methods of using cold storage include: - Keeping the reserves on a data storage that’s not connected to the internet. - Keeping the cryptocurrency on a paper wallet (getting a single private key and cryptocurrency address printed out on paper - Using a cryptocurrency cold wallet such as Ledger Nano X, Exodus, Trezor etc. Although it can be a very safe way to preserve your cryptocurrency, cold storage has its shortcomings such as getting your paper wallet stolen or losing your HDD/USB flash drive.

Hi Stella, thanks for the question. The term blue-chip stock refers to corporations that are market leaders, known for their history of strong performance and outstanding reputation. These stocks usually perform well in good and bad global economic conditions and are followed by the most common market index - Dow Jones Industrial Average. This index has 30 components (companies), however, not all blue-chip stocks are listed under Dow Jones. All of the blue-chip corporations have a history of sustained growth and a good future outlook. They are very popular among investors due to their high reliability and because a majority of blue-chip stocks pays dividends. Due to their large size, blue-chip stocks have the ability to acquire smaller companies providing them with strategic benefits. These companies are the leaders of their sectors such as Boeing, Visa, IBM, Facebook etc. Although they’re considered safe-haven among investors, there are no guarantees. This is why investors are advised to diversify their portfolios and apart from blue-chip companies, invest in other stocks as well.