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Brad Vitello

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  1. Hello, and thank you for asking! Like any other form of trading, Forex comes with certain risks and advantages. It is up to traders to decide if these are suitable for them, and their trading styles, and if so, how much of their capital are they willing to commit. The biggest argument for Forex trading is the size of the market, and its liquidity, which means that you will be able to easily move into and out of position, thanks to the high liquidity and demand. A big amount against Forex trading is leverage and high ratios of leverage present in many trades. Due to these high levels of leverage, there are high levels of risk involved, and when these risks take place in reality, they render many traders incapable of placing a trade ever again. The next argument for Forex trading is its availability, which means that it is open for 24 hours a day, five days a week. The major centers are Sydney, Hong Kong, Singapore, Tokyo, Frankfurt, Paris, London, and New York, and due to their overlapping time zones, it is possible to be active for prolonged periods of time. The final argument against Forex is that it requires extensive knowledge of currencies, their behavior, historical movements in order to be successful and turn a profit. Hence, it is important that you prepare and equip yourself with knowledge before you start engaging in Forex trading.
  2. Hi, I wanted to know what are the advantages and disadvantages when trading in Forex?
  3. Hi, thank you for asking! Forex is a market that generates a revenue of over $4 trillion every day, as such it is the largest currency exchange market in the world, with high liquidity and constant price changes that may inflict losses, or bring a great profit to traders. When it comes to currency pairs being traded in Forex, the main ones are: EUR/USD – Euro Dollar USD/JPY – Dollar Yen GBP/USD – Pound Dollar USD/CHF – Dollar Swiss Franc The EUR/USD (Euro/US Dollar) nicknamed ‘Fiber’ is the world’s most traded currency pair commanding 23% of FX transactions in 2016. The Euro and the US Dollar represent the two largest economies in the world - the US Economy and the European Union. The popularity of the EUR/USD ensures that it trades at tight spreads. High volumes lead to reduced price differences between the bid and offer. The GBP/USD (Pound Sterling/US Dollar) is nicknamed ‘Cable’ due to the undersea cables that used to carry bid and ask quotes across the Atlantic Ocean. This major forex pair shares similarities with the EUR/USD. Both are highly correlated because the United Kingdom’s economy is tied to the European Union. Traders enjoy tight bid-ask spreads on the GBP/USD due to its high liquidity. In addition to these main pairs, there are also commodity currency pairs (AUD/USD, USD/CAD, NZD/USD), whose value is heavily linked with the value of commodities. And there are cross pairs which don’t include the US dollars, and these are usually between countries whose economies are heavily intertwined (EUR/GBP, EUR/JPY, EUR/CHF).
  4. Hello, I would like to know more about Forex trading.
  5. Hi, thank you for asking! There are many aspects that differentiate position from swing trading, with the most important one being the time period involved. Swing traders place their trades in a shorter period of time which usually spans from several days to a few weeks, while position traders are ready to wait for a longer period of time. The second difference is the amount of profit involved as swing traders sell in a short amount of time and seek to capture a bulk of price change, which is usually not so large. p Position traders, on the other hand, are ready to wait for their investment to gain a serious profit and only then sell it. The third difference is the amount of research involved as swing traders rely usually only on technical analysis, while position traders use technical analysis, fundamental analysis, and keep close track of microeconomic, political, and other conditions, which may influence their investments
  6. Hi, I would like to learn more about position traders.
  7. Hi, thank you for asking! Swing trading is short term position holding, which is spanning from a couple of days to a few weeks. In this short time, the trick is to capture the peak profit and value of the position held, sell it, and obtain profit. Then moving onto the next opportunity trader buys a position that is affordable to him, and using technical analysis predicts if he will be able to turn a profit, and how big of a profit it will be. It is important to be active during swing trading, closely following market movements, and acting according to it. This is one of the most interesting and engaging forms of trading, as it requires swift action and keen attention to the market situation.
  8. Hello, I would like to know about the fundamentals in swing trading.
  9. Hello, thank you for asking! Despite being the most popular mean of analysis used in trading society, technical analysis suffers from certain drawbacks and other deficiencies. The first and most common criticism of technical analysis is the broad input of data, without thorough data research and relying only on two aspects to provide correct input which will be used for prediction of price and volume of a certain stock. The second criticism of technical analysis is a heavy reliance on historical patterns, and expectation that these patterns will repeat every time, in case of non-repetition, predictions fail and may incur heavy losses upon investors. The third criticism is derived from the second one, where many traders will place stop-loss orders according to these historical patterns, and when the stock reaches limits that trigger it, there will be a high selling pressure which will further push the stock down and lower its value. So, these orders and traders’ movements may bear a negative effect on stock value in the short and long term. If the trend is downwards facing, it will further devalue the stock and cause huge losses.
  10. Hello, I would like to know the differences between technical and fundamental analysis.
  11. Hi, thank you for your question! Swing trade is a trading strategy that aims to capture short to medium-term gains in a short period of time (which usually spans from a couple of days to a few weeks). Swing trading relies mostly on technical analysis in order to register trading opportunities that match this strategy. The goal of swing trading is to capture as much of a price rise in a given time period and capitalize on it. In order to do this, they seek primarily volatile stocks that have a wide range of movement, still, some traders may pick out more stable stocks with a shorter range of movement. The key strategy is to identify when the price will move in the desired direction and predict how long it will move that way and sell it when it reaches its peak. Of course, this is really hard, but with experience and required knowledge, it gets easier and easier.
  12. Hi, I would like to know about pros and cons of swing trading.
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