Thứ Ba, 20 tháng 12, 2016

The most profitable type of trading

09:05 Posted by Unknown , , , No comments
According to my opinion, there is no such thing as the most profitable types of business. It depends on the many factors.
Not only it depends upon how well you could capitalize the opportunity, but also it is your ability to take advantage of market moves can only be improvised by thoroughly learning the market.
While your self learning enables you to trade, there may be many other things in the world of trading that either you are not good at or don’t even know. Hence, it’s always better to get in touch with people from your own industry. You can find them through various trade forums, seminars, interviews, social media, etc. It does not take much time as people think, not only that, I think it was very useful
There is different opinion, for that  the most profitable type of trading is “Day Trading”. They think also known as “Investment” isn’t a cup of tea for all. Only those who could manage to sit with a trade for long and have dip pockets should consider investment. They would also say when your analysis is backed by no fear and emotional control, it becomes a BEST trading situation. They’ve observed that most of the traders generally exit early or wait too long without any trailed stop-loss.
I think that's a proper perspective and should be considered.

Chủ Nhật, 4 tháng 12, 2016

Good books on forex trading and markets

06:59 Posted by Unknown , , , No comments

Q : What are some good books on forex trading and markets?

A : Some suggestion around the web

1. The Forex Trading Course: A Self-Study Guide to Becoming a Successful Currency Trader 


2. Thinking, Fast and Slow – Daniel Kahneman
This book is sublime in explaining human behaviour and cognitive processes and biases, and in that way is very useful to keep in mind with relation to trading emotions and behaviour.


3. Market Wizards: Interviews with Top Traders – Jack D. Schwager
A collection of interviews with the best traders of the business – or at least the top of around 1980s. It is chock full of timeless wisdoms that still apply today, even though the actual interviews might sound a bit dated with the advent of modern trading techniques. 


4. Trading in the Zone – Mark Douglas
This book is all about trader’s mindset. If you have a solid trading system but still find yourself losing out more than you win, this book might be for you.


5. Trading Price Action Trends – Al Brooks
Al Brooks covers loads of content, explaining the meaning of every single candle on the chart and the meaning of multiple candles as price action patterns.



Good luck with trading! 

Source : Yahoo, Quora






Thứ Ba, 29 tháng 11, 2016

From where forex data (charts) are driven?

08:33 Posted by Unknown , , No comments
The data is provided by your broker based on the interbank market and it can slightly differ between brokers due to spread differences.

 Some old style brokers are still market makers themselves (and some are an hybrid doing both) therefore price is formed within their own infrastructure (their customers trade one against the other or even one against the broker taking the opposite position) and only the imbalance between buy and sell sides gets out to the liquidity providers.

 There are a number of large backbones (featured by big names I won't mention because I don't like advertising) connecting the top tier banks. Prices get either decided in there or delegated to more local liquidity providers who are the wholesale liquidity "storage" Forex brokers go and take from / send orders to these liquidity providers who also act as market makers for the various brokers connected to them and therefore price forms on their servers. Brokers get a price stream and an history price stream from them and can show it on their charts.

 Forex, unlike stock exchanges is a distributed system. There's no "central location" where prices get posted or securities get traded. The architecture is extremely complex and fast, I am going to write down a really simplified version of it.


source : quora, yahoo

Thứ Bảy, 26 tháng 11, 2016

How to Deal With Stock Market Volatility

10:02 Posted by Unknown , , , No comments
Market volatility is a fact of life when it comes to stock market investing. Stock prices fluctuate daily. Markets ebb and flow over time in line with the economy and business cycle. But when it comes to current stock

In times of extreme market volatility, what's an investor to do? Sure, it makes sense to turn to a trusted financial advisor for advice to get a handle on what's going on with the market situation. But everyone has an opinion, and there is . With insider information and dissected reports, some may be thinking it's the beginning of the end while others see it as a bump in the rocky road.

You probably shouldn't rely on the financial media who do a great disservice to us investors by encouraging panic and fear. So-called experts on primetime TV who foresee doom and gloom or rapid recovery don't own or use crystal balls. They really have no better idea of future market conditions than you do. The truth is, nobody really knows. And if they claim to, they're probably just pretending. Past events cannot dictate the future of the market. A solid financial planner will tell you that don't follow a pattern. There are no codes to break – no trends to analyze. Just watch the stock market activity for a couple days. You'll see that what happened yesterday won't necessarily affect tomorrow's stock prices.
So, what's best? Pulling the cord and jumping? Sticking it out and hoping for the best? Some believe that investors who scrutinize the financial news and make investment decisions based on predictions often end up losing money. They believe that those who stay the course and ignore market volatility reap the returns of the capital markets. Others are tired of being told they should just buy and hold, so they panic and sell.
The traditional advice financial advisors give in a market such as this would be to hold tight and don't give into panic. It is easy to be pulled away from a strong long-term strategy when markets are under pressure. The numbers would suggest that it is important to stick with your strategy and remain mindful of getting caught up in the emotional drive of the . Opportune selling times rarely surface during periods of elevated emotions.

What is going on with the USD-INR exchange rate?

08:45 Posted by Unknown , , , , No comments
It seems to be a good moment to send money to India if you live in the USA like I do. 



The main reason for this is Donald Trump’s victory in the US elections.The depreciation of Rupee in the past week can only be partially credited to the demonetization.
 
Soon after victory of Trump, there was a rally in US equities sending Dow Jones to an all time high. Moreover, the retail sales also came out positive and now investors are expecting a rate hike in Federal Reserve’s December meeting. As a result, dollar is appreciating.


It’s not only rupees which is depreciating, other Asian currencies are also depreciating at the same time which shows that demonetization might not be the main reason for the depreciation of rupees.

Thứ Bảy, 19 tháng 11, 2016

Zero-Sum Game in Forex Market

00:56 Posted by Unknown , , No comments
In Forex market, change in currency value which leads to fluctuations in foreign currency exchange is a different concept from those in stock market. Changes in currency rate are the ratio of exchange in between two countries, in other words, Forex fluctuation happens when value of one currency drops and increases in another.
For instance, in last two decades, 1 USD (United States Dollar) could exchange for 360 JPY (Japanese Yen). But now, 1 USD only can exchange for 114 JPY. This simply means that JPY has increased, and USD has dropped in value.
Therefore, no matter how the currency rate changes, the total sum of value of both currency pair will not increase, and of course, will not decrease.
Hence, some may describe Forex trading is nothing but a “zero-sum” game. To be more specific, it is a transfer of wealth. Recently, funds flowing into currency market has increased significantly, rate of changes is also getting higher and higher, which caused amount of wealth transferred has become more, and faster.
Assuming there is a daily transaction of USD 30 trillion in global Forex market, either increase or decrease by 10%, there will be USD 3 trillion will get new owners.
Despite drastic fluctuation in Forex market, but there will be no currency that has no value at all. Although one currency plummeted consistently, yet it still has a certain value embedded in it, unless it has been announced to abolish this currency.
P/S: “Zero-Sum Game” is a concept in Game Theory, means that both parties in a game, when one gains then the other one will lose.