Forex Education

Home Forex Forex Education Page 2
This section holds our Forex Educational library: Our trading library consists of a collection of the most excellent educational articles written by our top market experts. It is primarily focused on those subscribers who aim at initiating or consolidating a professional trading career; that is, for people who take trading seriously. It is our mission to continually enrich our library over time, as well to cover all sorts of useful topics, from foundational to the most advanced ones. We have separate sections for Advanced Forex Education, beginners Forex Education, A daily Forex Topic and a Complete Forex Course.

Dollar Index and the Alternation Principle

In our article "Impulsive Waves Construction - Part 1," we introduced the concept of "alternation." In this educational article, we'll apply this concept to the Dollar Index Analysis. The

MT4 Vs. MT5 – Which One Should I Use?

Forex traders can choose the trading platform they want to use. However, this choice is interrelated with the choice of the Forex Broker, as...

Forex Traders: Get Patience, Optimism, and Never Give Up Attitude

In today’s lesson, we are going to demonstrate an example of the daily-H4 combination trading, which makes traders wait for a long time. Usually, if the daily chart produces a daily reversal, it creates an H4 entry within a day or two. In today’s lesson, the H4 chart takes four days after creating a daily reversal to produce the signal candle. Let us find out how it offers us entry.

Best Trading Position Part 3 – Risk in Parallel Trades

If you are reading this article, you must be serious about trading. Did you know that curiosity and eagerness to learn are the two...

Forex Misconceptions You Should Never Believe

Forex trading is shrouded in myths and misconceptions – some draw in traders, while others scare potential traders away for good. Unfortunately, it’s common...

Master the Art Of Forex Backtesting With These Key Tips

Let’s talk about the results of our trading strategies. And if we talk about results we’re going to have to talk about backtesting when...

What Are the Best Soft Skills for a Forex Trader Develop?

Soft skills enhance our abilities to adapt to our work environment and enable a smooth exchange of information or services. While traders are not...

Forex Trading: Still a Smart Investment?

In today’s world, it’s a good idea to make wise money investments as we face uncertainty in the future. Investing while you’re young can...

Overview of Forex Indicator Types and Uses

Indicators are a tool that Forex’s technical analysis, traders, and statisticians use in financial markets to take a statistical approach rather than a subjective...

Transitioning From Your Day Job To Full-Time Forex Trading

It is a huge decision, moving away from your secure day job in order to become a trader full time. It’s something that a...

What Are SWAPS in Forex?

I see many people, even those who already invest in the foreign exchange market, who don’t know what forex swap is. Also known as...

Forex Lot Size: How to Limit Risk in Forex More Easily

Position size is usually the easiest way to keep maximum transaction loss under control, and sometimes it is the only way. The size of the forex position is how many forex batches (micro, mini or standard) you order per transaction. Your risk is broken down into 2 parts-transaction risks and account risk.

Forex Trading: Expectations vs. Reality – Part One

When you tell someone about trading and forex, what do you tell people? Most likely you are telling them all the best things about trading, these good reasons are the reason why you trade in the first place after all. These stories that you are telling other people are what is creating an expectation in them of what trading and forex actually are. If you look anywhere on the internet, there will be people talking about forex and how much you can make, how easy it is, and how life-changing it is, very rarely do you hear horror stories or the opposite feelings. This creates a certain expectation from people outside of the trading circle, expectations that do not really match up to the reality of what trading is and what it involves. We are going to be looking at what some of the realities are when compared to the expectations that a lot of people have and seeing whether the general expectation is right, or if reality is completely different.

Can Artificial Intelligence (AI) Successfully Trade Forex?

Artificial intelligence can do a lot of things. It has machine learning, meaning it is able to learn from mistakes and to adapt. It...

Intro to Technical Analysis for Forex Trading

Technical Analysis involves studying the historical price action to determine current trading conditions and potential price movements in the forex market. Traders that use...

Is CADJPY Ready for a New Rally?

Overview

Everything You Need to Know About Islamic Forex Accounts

There are many Forex brokers that offer today the option to open an Islamic account. To understand how these accounts work, you first need...

What Is a Recotization in Forex?

When you are trading in Forex, you will come across the term "recotization" sooner or later. While it’s not that common, it can happen...

Why Scaling in Might Be a Bad Idea

If you are already in a winning trade, is there anything else you can do to father navigate its course to your benefit? One...

Contract For Difference (CFDs) Explained!

What is CFD? A contract for difference (CFD) is a form of derivative trading. CFD allows a trader to speculate on prices of global financial markets such as shares, indices

Draw Fibonacci Levels on Your Trading Chart

Fibonacci traders are to find out a good move, followed by a price correction. They keep their eyes on the 61.8% level with extreme attention. If the level of 61.8% produces a reversal candle, traders trigger for entry. Usually, the price goes up to the level of 161.8% if the price trends from 61.8%. This allows an excellent risk-reward to the traders as well. In today’s article, we are going to demonstrate an example of how the golden ratio of 61.8% plays such an important role in moving the market towards the trend. Let us get started.

How Much Should You Be Spending on Forex Trading?

There’s a lot to figure out once you make the decision to become a forex trader. What broker to use, when and how to...

The Most Competitive Advantages of Google

The value of the search engine lies in the fact that practically everyone uses it to browse the internet. This network effect also occurs...

Where to Direct Your Focus During a Losing Streak

People do not like to think about losses, the problem with that is that losses are a major part of trading, they will happen....

15. All About Trading The Tokyo Session!

Introduction Japan’s capital Tokyo, is the most majorly traded market in the Asian continent. That is, in Asia, the highest volume comes from the Tokyo market. In fact, it is

An Overview Of The Forex Trading Industry

Introduction Some of the most relevant markets include the Stock market, Futures market, Options market, and Foreign Exchange market. All these markets provide vast trading opportunities, and out of these

Weekly High/Low Breakout Trading: The Chart You May Want to Avoid

In today’s lesson, we are going to demonstrate an example of a breakout at a weekly high. The price consolidates afterward but fails to make a breakout at consolidation resistance. Thus, the price does not head towards the North. Let us find out how that happens and what lesson it holds for us.

The Beginner Trader’s ABC’s of Forex Trading

Is it really possible to make money in the financial markets? It absolutely is. With that being said, you must know what steps to...

Greed: The Most Dangerous Emotion to Feel While Trading

When just starting out, one of the many warnings that people seem to get is to not be greedy, in fact, a lot of...

Trendline Trading: A Trendline forming with a Tiny Slope

In today’s lesson, we are going to demonstrate the formation of a down-trending Trendline. A trendline can be formed with a double top or double bottom as well. However, double top’s resistance or double bottom’s support may not be horizontal. Let us find out how they may look in the chart.

Things you should Know about Leverage, Drawdown and Risk

Novice traders usually prefer to focus on trade ideas and strategies, believing that the path to success is the knowledge about entries and exits. But in a trading environment with

Fundamentals of the British Pound

The British pound, whose use spans across more than 5000 years, is the oldest currency in the world. Originating from continental Europe under the...

What Are the Advantages of 1:1 Leverage in Forex Trading?

When it comes to leverage, you often see larger numbers being advertised, brokers trying to entice in new traders and new webers with the promise of sky-high leverage. In fact, the new standard of leverage being given by brokers these days is around the 500:1 level which would have been unheard of a few years ago. Some people, however, still swear by simply not using leverage, to use an account with a 1:1 leverage which basically means that you will be using your own money and only our own money, not borrowing from the broker at all. This does of course come with some advantages, advantages that we will be looking at in this article, so let’s jump in and see what the advantages of trading with a leverage of 1:1 are.

The Cypher Pattern

The Cypher Pattern The Cypher Pattern is another type of Harmonic Pattern - except it isn't - but it is. This is one of the few patterns not identified by

Dangers of The RSI Indicator

Relative Weakness or Relative Strength? The RSI is a popular indicator but it is not without its detractors. If you go online to learn...

Seven Trading Secrets that Most Successful Traders Won’t Share

1. Keep an Open Mind In the world of forex trading, nothing is ever guaranteed. Successful traders don't think in terms of absolutes or in...

Self-Motivation and Self-Discipline In Trading

Motivation and discipline, some incredibly important traits that you need to have in order to be a successful trader. You often hear that trading...

Why Mark Support/Resistance Zone Along with Line?

Most traders use a horizontal line on their trading chart to mark support/resistance levels. Support and Resistance lines are the most basic trading tools, which traders use to make a