A behavioral bias that affects financial market decisions is the “disposition effect.” According to the disposition effect, investors tend to sell winning positions while holding onto losing ones, which conflicts with efficient capital market theory. It can negatively impact trading performance. Is There a Disposition Effect and How Does It Work? Psychologists and behavioral scientists […]
Forex Trading: Disposition Effect Avoidance Read More »
In search of an algorithm that can give them an edge on the market, traders are always digging through mathematical books. Unsurprisingly, concepts such as chaos theory and fractal geometry are at the core of fractal indicators. An investor must know when the market suddenly changes direction based on fractal signals that calculate irregularity. Investors
Fractals of Forex, Unraveling the Complexity of the Market Read More »
The rapidly changing financial market has drawn investors worldwide to foreign exchange (Forex) and cryptocurrency trading, two intense rivals. Their similarities are worth comparing, but both are widely chosen by traders and offer potentially exciting trading opportunities despite their differences. This article compares the worlds of forex trading and cryptocurrency trading, highlighting the main differences
Is Forex Riskier than Crypto? Read More »
On Monday, December 18, here’s what you need to know: The Bank of Japan is expected to announce its decision in anticipation of tomorrow’s latest policy meeting. There has been speculation concerning when the Bank would finally end its ultra-loose, negative interest rate monetary policy. Before such a change can be made, the Bank has
Financial Markets Stabilize After Central Banks Saga Read More »
The term black-box trading is commonly used to describe an automated trading system used to turn a profit through automated trading. Each black box consists of algorithms that deliver a specific trading strategy. Whatever frequency or infrequency you choose, trades are automatically placed. A black box can refer to various techniques, including fundamental technical indicators,
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You can’t predict the market. It’s a trap that traders often fall into. Our goal as traders is to prove the validity of our strategies repeatedly, but it is inevitable that this logic will not always work out as it should. Due to the unpredictable nature of the market, many factors may divert the path
Forex Trading Traps Caused by Common Knowledge Read More »
Algorithmic trading, which relies on computer programming, is one way traders can implement various strategies on the forex market. Automated trading makes it possible to trade without an individual participating. In its simplest form, algorithmic trading involves executing various trading strategies based on historical data after the computer analyzes conditions for implementing them. Essentially, algorithmic
How is Algorithmic Trading Used in Forex? Read More »
Heikin-Ashi is a Japanese technical trading technique representing and visualizing market prices using candlestick charts. This method uses average price data to filter out market noise, and it is used to identify market trend signals and forecast price movements. It is easier to determine potential price movements without market noise. Using this trading technique, traders
What Are Some Effective Heikin-Ashi Indicator Signals Read More »
Having the ability to read charts is a well-crafted skill that requires relentless practice and constant adjustments to become a consistently successful trader. Learning never stops, and perfection is never guaranteed. Learning to recognize trading patterns is essential to building an effective portfolio. Recognizing patterns as they emerge and form is a powerful tool for
Train Yourself for Trading Pattern Recognition Like a Pro Read More »
An investment in fixed-income securities pays a fixed periodic interest rate and returns the principal at the end of the security period. A fixed income security’s payment is recognized in advance instead of a variable income security’s payment, which depends on the underlying measure. How do fixed-income securities work? Listed below are the types of
Impact of Fixed Income Securities on Forex Price Charts Read More »
