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David Miller

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  1. Hi, thanks for the question. Forex trading is an easy process. To start trading currencies you just need to set up your account, install required broker software, and deposit at least the minimum required amount of funds. This amount is usually set by a broker. Because of such a simple interface, and requiring no skill to use it, Forex trading proves to be a good starting ground for those that want to learn the basics of a trading process. It is always advised to start trading on a demo account, to limit the risk and exposure to markets. The market is open for 24 hours 5 days a week, providing unlimited trading opportunities. There are some risks to be considered, as Forex is also a market engaged dominantly by banks and other financial institutions, which have more information and financial leverage, it is easy to fall under their influence and without having any real power to counter it. The difficulty of trading may depend on how frequently you engage in trading, people can trade on a daily basis making them “day traders”, a weekly basis making them “swing traders”, or on a monthly basis which makes them “position traders”. So, the overall trading difficulty depends on the style you choose and the risks you take when trading, but overall Forex trading is easy for beginners.
  2. Hello, This is a candlestick pattern which can be found in bar charts. It is possible to spot a hook reversal regardless of market direction. A bullish hook reversal forms when the market is in a downtrend and is about to change direction. On the other hand, a bearish hook reversal takes form in an uptrend where there’s a possibility of a bearish reversal. As for its formation, the hook reversal is formed by two bars/candlesticks. In case of a bullish hook reversal, it is formed when a candle takes shape inside the range of a previous candle following a downtrend. Similarly, bearish hook reversal occurs once a candle takes form in the range of a previous bar. It occurs after an uptrend when there’s a lower high and a higher low in relation to the previous candle The most common way to trade a hook reversal pattern with a trend line or support/resistance, but of course, there are a number of other ways in which the pattern can be traded.
  3. Hi Carlyn, thanks for asking the question. Bitcoin Cash is a Bitcoin “fork”. The term fork refers to when a blockchain gets updated, but some of the nodes get affected. The affected nodes split off from other nodes, forming a new blockchain. Therefore, Bitcoin Cash is a separate blockchain that was once a part of the original Bitcoin blockchain. Bitcoin Cash was created because developers of Bitcoin wanted to make certain changes and forked it. Just like Bitcoin, Bitcoin Cash can also be mined. However, there are certain differences between the two. For one, since it’s a separate blockchain, there’s a difference in price. 1 Bitcoin Cash is currently worth around $251, which is way lower than Bitcoin. Also, transfer fees for Bitcoin cash are much lower than Bitcoin transfer fees. A Bitcoin Cash transaction costs around $0.20 as compared to Bitcoin’s $1 per transaction. Bitcoin Cash transactions also get verified much quicker than Bitcoin transactions. Hope I’ve helped.
  4. A Descending Triangle is a bearish market chart pattern formed by a trendline, which connects higher lows and a horizontal trendline that connects the lows. Once traders spot a descending triangle they take a short position, bringing the price even lower. This pattern indicates a decrease in demand and once it breaks through the horizontal trendline, it usually gains an even stronger downside momentum. This is a perfect opportunity for traders to take a short position and make a profit. However, every chart pattern has its limitations. Sometimes, false breakouts happen with the descending triangle. In this case, the price may go up to test the resistance zone before bouncing back to test the support. This process can occur multiple times.
  5. Hi, thanks for coming here. Traders use Forex scalping for trading currency pairs, where they hold a position for a short amount of time in a bid to make small profits. The forex market can sometimes be full of price swings and traders utilize scalping to benefit from these movements by placing multiple short trades. While scalping is known for bringing small profits, the profit can be increased by using leverage and using large position sizes. However, combining those with scalping can be very risky if not controlled properly. There are two types of forex scalping - manual and automated. Manual scalping is when the investor analyzes the market and the signals, attempting to capitalize on price swings. Automated scalping involves utilizing the trading software where you tell the software when to place a trade based on entered parameters. Scalping can be very useful after important financial news events such as interest rate announcements which can increase market volatility. Market orders allow investors to trade the stock at the current market price. When using a limit order, you set a price and if the market price meets the price you’ve chosen, the order will get triggered. This is, in simplest terms, the difference between a market order and a limit order. If the price of a stock you want to invest in is very appealing at the moment, a great benefit of using a market order is that it allows you to take advantage and buy the stock at that price. Limit orders also have their advantages, the biggest of them being that you can specify the price of the trade. Limit orders usually get processed if the market reaches the price you’ve specified before. However, the biggest risk here is that there’s a chance you’ll never trade the stock, in case the market price never reaches the price you’ve previously set.
  6. Hi, thanks for coming here. Traders use Forex scalping for trading currency pairs, where they hold a position for a short amount of time in a bid to make small profits. The forex market can sometimes be full of price swings and traders utilize scalping to benefit from these movements by placing multiple short trades. While scalping is known for bringing small profits, the profit can be increased by using leverage and using large position sizes. However, combining those with scalping can be very risky if not controlled properly. There are two types of forex scalping - manual and automated. Manual scalping is when the investor analyzes the market and the signals, attempting to capitalize on price swings. Automated scalping involves utilizing the trading software where you tell the software when to place a trade based on entered parameters. Scalping can be very useful after important financial news events such as interest rate announcements which can increase market volatility.
  7. Hi Stella, thanks for coming here. A Forex demo account, also known as paper trading account, is used to practice trading or try out new trading strategies without involving real money. Traders use demo accounts to adapt to a trading platform, learn how to place orders, test out different trading tools and so on. Using a demo account is highly recommended for new traders until they get comfortable with the platform. However, a demo account can prove very useful to experienced traders as well. Even expert traders have demo accounts to develop their trading strategies and improve skills. Apart from testing strategies and learning the platform, demo accounts are great for learning risk management. Knowing how many positions to open or how many lot sizes to trade can be very difficult for novice traders, and demo accounts are a great place to learn how to manage risk. Once you’ve spent enough time on a demo account, you can open a live account and start trading with real funds.
  8. A blue-chip stock refers to a stock of a highly-reputable company. The name comes from the blue chips used in casinos, which are the most expensive. Blue-chip stocks are known for financial stability and long-term growth. These stocks have a history of strong performance and usually pay stable dividends to investors. They all have the same things in common such as large market value, well-performing stock, attractive enterprise model etc. Some of today’s blue-chip stocks include Apple, Alphabet, Facebook, Disney, Berkshire Hathaway, Coca Cola and more. Blue-chip stocks are usually a component of the most reliable market indexes such as Dow Jones Industrial Average, S&P 500 etc. These companies typically have a market value of over $5 billion, but more importantly, they have to be the market leaders. In order to stay labelled as blue chips, these companies must maintain their strong performance.
  9. Cold storage is a term that involves keeping your Bitcoin or another digital currency into offline wallets. Cold storages are not connected to the internet, greatly reducing the chance of getting your assets stolen and diminishing the attack surface. This concept makes the assets invulnerable to hacking attempts and malware. It’s impossible to retrieve stolen cryptocurrency assets due to the fact they’re decentralized, unlike with compromised bank accounts where the bank is often able to help retrieve the money. One of the methods of practicing cold storage is using a wiped computer that’s not connected to the internet and installing a cold wallet using a data storage device. Another way to do it is to buy a hardware wallet that preserves cryptocurrency private keys. There are also other ways such as paper wallets or storing your assets on data storage devices but these are considered less safe.
  10. Hi Bogdanovic, thanks for the question. EUR/USD is extending the rally a sixth consecutive day, gaining as much as 300 pips. The European Central Bank scheduled a meeting for Thursday and several financial institutions have announced their analysis of the upcoming meeting. The ING group anticipated that the ECB will boost its Pandemic Emergency Purchase Programme (PEPP) incentive package this week. “Combined, they imply a slower pace of purchases than what has been implemented so far: from the current run rate of roughly €105 billion per month that can continue until October, to €56 billion if the additional envelope is spent evenly until June 2021,” the Dutch banking corporation said in a note. ING believes the PEPP will receive a boost of 500 billion EUR by the middle of 2021, as the ECB attempts to help its member countries recover from the post-pandemic crisis. Apart from the ING group, analysts from the investment management services company Principal Global Investors have a similar opinion and expect the PEPP boost. “We are anticipating an increase in asset purchases. It will be important to see if there’s any acknowledgement of the ruling from the GCC and how it impacts the ECB going forward,” she added, referring to the German constitutional court ruling in May that the ECB had overstepped its mandate,” said Seema Shah, chief strategy officer at the London-based company. EUR/USD has rallied back to the resistance area of around 1.1200, for the first time since March and the investors are taking advantage of the weaker USD. We may see a pullback from these levels given that this is an area of strong resistance. The pair has been supported by the recent news that the European Commission proposed a recovery package to help the EU economy recover, as well as Euro’s strong position in the current region account. “We turn strategically bullish on EUR/USD following the EU debt recovery fund proposal,” Morgan Stanley analysts said.
  11. David Miller

    DAX analysis

    Hi Bogdanovic, thanks for the question. The DAX Index has been on a roll recently. It has made consecutive gains on a daily basis to push the price into the key resistance on the weekly chart. The biggest factor behind this push higher lies in the fact that the European Commission unveiled a €1.85 trillion recovery package to boost the EU economy after the Covid-19 crisis. "This is Europe's moment. We either all go it alone...or we pave a strong path for our people and for the next generation,” said President of the European Commission, Ursula von der Leyen. “To protect lives and livelihoods, repair the Single Market, as well as to build a lasting and prosperous recovery, the European Commission is proposing to harness the full potential of the EU budget. Next Generation EU of €750 billion as well as targeted reinforcements to the long-term EU budget for 2021-2027 will bring the total financial firepower of the EU budget to €1.85 trillion," she added. The European Commissioner for Economy Paolo Gentiloni said later that the EU is allocating a €750 billion recovery package to its member states, out of which €500 billion would be allocated as grants while the rest will be loans. It is expected that EU member states can withdraw these funds in January next year. Obviously, this is a massive stimulus for the embattling economies. Investors are seeing this as a “whatever it takes” signal from the EU that is likely to help companies get through this rough patch. As a result, the DAX Index has been trading higher constantly in the last week to return to 12000 for the first time since early March. The price action is now trapped between the two important weekly moving averages around the 12000 mark. A break above this level would make DAX even more bullish than it currently is.
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