Learn the strategies to consistent and profitable (forex) prop trading.
To draw trendlines, identify a clear trend and connect at least two swing highs or lows with a diagonal line, ensuring it aligns naturally with candle wicks without cutting through bodies. For reliability, look for three or more touch points and confirm the trend across multiple timeframes. Here are the detailed steps to follow for drawing trendlines...
Swing trading seeks to profit from market “waves” by entering trades at key support and resistance levels. This approach works by examining technical indicators, chart patterns, traders’ sentiment and fundamental trends to spot prospective entry and exit points. The most popular methods are reversal, retracement, breakout, and breakdown trading. Its advantages include fewer trading (compared...
Consuming too much information for forex market prediction often results in issues like analysis paralysis, emotional burnout, confusion and weak decision-making ability. Let’s take a closer look at how constantly feeding on unchecked influx of news, limitless opinions, and overwhelming number of indicators can cloud your speculative accuracy and limit growth: Market Analysis Paralysis When you...
Climate change can influence currency value and volatility. It can alter trade dynamics, prompt adjustments in investor sentiment, affect central bank/gov’t policies and more. Here’s a closer look at how extreme weather, natural disasters, and impromptu environmental policies can impact forex trading: 1. Climate shifts can cause economic disruptions & currency fluctuations Environmental crises like hurricanes,...
To prevent false signals in forex, avoid trading during high impact news, combine indicators meaningfully, study multiple timeframes, use volume analysis, backtest, and adopt a strong risk management system. Let’s examine how each point can help improve your trade accuracy: 1. Avoid speculation during high impact news releases Economic events can trigger extreme volatility. This can...
When following a trend, you should ask questions about a trend’s cause, strength, timeframe, supporting indicators, market sentiment, trade volume, right entry points, risk factors, and likely external influences to make informed decisions. Let’s address these questions in details: 1. Is the trend very clear You should ensure the market’s direction is pronounced. Look for ascending peaks...
To read an economic calendar, review key data, including event schedules, affected currencies, impact levels, past figures, forecasts, and actual results. Then, compare expectations with real outcomes to anticipate market reactions or behaviour. Let’s examine in more detail how to use an economic calendar to your advantage: The key parts of an economic calendar you...
Local holidays significantly influence the forex market. The majority of FX transactions are conducted within their framework, giving them substantial control over the value of their country’s fiat currency. During nationwide closures, notable effects can often be observed on the nation’s legal tender and trading volume. Let’s look at some of the negative things that...
Inflation can impact forex markets by weakening a currency through reduced purchasing power and investor uncertainty, while also prompting central banks to adjust interest rates. Market expectations and economic instability further drive forex price movements and volatility. Let’s look at how rising CPI rates affect forex trading and why you as a trader should monitor inflation reports:...
In this exclusive interview, successful forex prop firm trader (Toan) reveals key strategies he adopted to move himself from several trading losses/failures to consistent profitability. Let’s hear from him: 1. Tell us a little about yourself My name is Toan, and I have been actively involved in trading for over 2 years. At first I still had a full...
