Inside Trade | Major Species of Indicators

Technical Indicators are graphic representations that assists traders in predicting future price levels for trading decisions. It is the primary tool in technical analysis whose main objective is to provide information about the current trends, price movements, and even significant price levels like support and resistance.

Often, there are already indicators available in the trading platform that the brokers provide. But there are still immeasurable variety available in world wide web which you can download and instal in your trading platform. Any number of Indicators may be incorporated on chart or opened in a separate window depending on the type.

Trend Indicators – these indicators are mainly dedicated for the prediction of the current price trend and its behavior in the future.

Oscillators – these type of indicators are used to observe if the trend will change or will it still continue its current path. It is composed of two extreme values that defines if the currency is overbought or oversold.

Psychological indicators – these indicators specifies the sentiment of the market participants and their next probable move.

Inside Trade | What's Your Style?

As I read the book entitled “The Game,” a thought tickled my mind. Although the book relays a story which follows the two protagonist, Mystery and Style, in their journey of becoming the greatest pick up artists. It somehow left a question lingering within my fickle mind. What's your style?

It is a question which fits the phrase “easier said than done.” Some of must may instantaneously answer this but it might take a while for others. But as we go along our voyage at the sea of knowledge, we might be able to answer this question with the help of some key factors like financial capabilities, knowledge, and even our very own personality.

My researched lead me to different styles with distinct preferences. But the category seems to be mainly divided into three main groups: short, medium, and long term. Each preferred through the longevity of the positions. It also came into my attention that it sometimes gives birth to sub categories. For example, those traders who holds their position from a matter of minutes to a few days are regarded as short term traders. Further classification of it are scalpers, day traders, etc.

No matter what style you're in, as long as you profit, just continue trading and be yourself. Our constantly changing society births different styles every now and then, and I won't be surprised if ever you found yourself inventing one.

Venturing on Forex | Is a million dollar worth transaction possible?

“We have never seen such trading before and will hardly see soon.” - Aleksey Badjanov, Dealing Department representative.

Most of us would fancy how we would spend a million dollar if we ever got hold of such amount. I cannot deny that it is such a hefty sum and it could sustain every luxury that I have dreamed of. A sports car, a vacation house in a far flung island in a secluded Asian region, a trip around the world, all the beers that I could drink, a non-stop party on my mansion, and even a wine and dine with the rich and famous. All of these and more can be attained with a million dollar, if only I had that sum. Those thoughts linger on my mind as I read a trader's ordeal – Mr. Akhmad Arief.

The initial deposit of Akhamad Arief's account was only one gran. According to the interview, he has been trading for 5 years already and just opened a high risk account with InstaForex last July. His tactics were a sort of one time big time positions, wherein he would choose a high leverage and bet all of his capital with the use of a win-win and risk strategy. The first month of July was in his favor, his account ballooned until it reach the million dollar point. But due to the unpredictable nature of Forex, it popped the balloon into nothing. The second half of July was fatal to his account and wasn't able to save any amount because he was out of the house when the tide turns unfavorable.

It was really disappointing occurrence but our champion is yet to yield. He said that he will try again his luck. Also in the said interview with InstaForex, he gave an advice to beginner traders to learn the basics and don't stop learning new things about trading. Stir your curiosity and always diligently seek for answers in whatever question that may come up.

Inside Trade | Trading with Gold

"Gold was not selected arbitrarily by governments to be the monetary standard. Gold had developed for many centuries on the free market as the best money; as the commodity providing the most stable and desirable monetary medium." -Murray N. Rothbard

Known for its softness and malleability, Gold had been a symbol of wealth, prestige, and power throughout history. A valuable metal which brings fortune to whoever manage to struck a nugget.

In the past, it defines how much a currency may be valued. But nowadays, the game is changing and gold has been forged into new form to adapt the modern times. Though its still holds its former power, it evolved into new heights and became a part of Forex trading.

A safe haven on times of great adversity due to its stability and effectiveness in saving, gold also proves to be a good source of bread and butter for some traders in Forex. It all started after the right of individuals to posses and acquire gold had expanded. After which, it revolutionized gold's role to suit the modern times. It's former function was to serve as a means of payment for goods and services but was molded as a traded commodity whose market is far from the influential grasps of governments.

Gold markets are classified into three types: international, domestic, and black. The prominent international gold market are located in Zurich, Hong-Kong, London, New York and Dubai. This type of gold market usually involve big time banks and companies who specialized in gold trading. Domestic gold markets mainly focus on local investors may be further categorized as open and regulated. Furthermore, black gold markets cater to illegal transactions.

A gold market usually consists of participants such as gold miners, the industry, exchange, investors banking sector, intermediaries and dealers, and bullion market.

Venturing On InstaForex | Forex Forums

“Discussion is an exchange of knowledge; argument an exchange of ignorance.” ~Robert Quillen

One of the basic human function is the ability to communicate. As humans, speaking is a part of our day-to-day activities. Although the urgency to speak may vary in different degrees, it is still something that cannot be done within a day. Moreover, the urgency may be further stirred if the one that we are speaking with, shares the same interest as ours.

In the advent of technological advances, various speaking venues emerged to fill up the call to communicate online. Forums, blogs, and chat rooms took the role to gratify the basic need.

As for traders, they also need an avenue in which they can speak out their minds and receive feedback from others. A forum in which a collection of different individuals are bounded by a single cause, discussing topics about trading.

At present, there are two forums that are recommended by InstaForex: forum.instaforex.com and forum.mt5.com.

Forum.InstaForex.com – a place wherein potential clients of instaforex may visit to get a hold off reliable information about the company. It will also serve as the meeting place for the current clients of InstaForex.

Forum.mt5.com – a forum wherein clients from different brokers meet up and discuss recent news, forecast of possible movements, or simply a place wherein their ideas and queries may materialize for others to hear and speak of. 

Inside Trade | Pending Orders

Most newbie traders should learn about pending orders consequently after learning how to open positions. But what are pending orders?

Pending orders are commitments from the client to a broker to buy or sell a security after a predefined price had been reach in the future. It is basically used in opening a position, either a buy or sell, after the current price reached a certain level. There are four types of pending order: Buy Limit, Buy Stop, Sell Limit, Sell Stop.

Buy Limit – an order to open a buy position once the predefined value has been reached. The predefined value is the “ASK” price. It anticipates that after the current price falls and reached a certain, it will start to increase again. It allows traders to give a specific price in which they are willing to open a buy position.

Buy Stop – an order which will open a buy position once the predefined value has been reached. The predefined value is the “ASK” price. It anticipates that after the current price reached a certain level, it will continue its current direction. It hopes to ride a momentum of a bull trend.

Sell Limit – the concept of sell limit order is the same as its “Buy” counterpart. But, the only difference is their predefined value and their direction. In sell limit order, a sell position will be opened once the predefined value has been reached. This time, the predefined value is the “BID” price. It anticipates that after the current price reached a certain level, it will start to fall. Triggering the order in the process.

Sell Stop – the concept of sell stop order is almost the same with its “Buy” counterpart. It anticipates that after the predefined value has been reached, will keep on falling.

Inside Trade | A Broken Link - Gap

After spending sometime in the trading platform, we may stumble upon a chart who possess an empty space that somehow depicts a broken line. A missing part supposedly embedded in our chart which will fulfill the empty space and may produce a lot of confusion among newbies. That space is called Gap.

Gap is defined as a break between prices on a chart which happens once a price makes a significant movement, either upward or downward, without any trade occurring on those moments. It is due to several factors such regular buying or selling pressure, a sudden change in the outlook of the analysis, or some other type of news release. So far in my research, I managed to gather 4 types of gaps: Breakaway, Common, Exhaustion, and lastly Measuring.

Breakaway gaps- these gaps usually happens when prices break away from a congested area.

Common gaps – usually occurs between the support and resistance level in the event that the market is moving sideways.

Exhaustion gaps – commonly takes place when the market is already exhausted and the existing trend stops. But it must not be mistaken as a trend reversal.

Measuring gaps – often formed halfway of a price move either in a quick advance or decline.

Inside Trade | Fibonacci Retracement

Recently I had given a brief background about the history of the golden mean. Its application is so vast that even the financial market has not been exempted. At present, the Fibonacci retracement is widely known for its ability to determine the support and resistance level of the current market price.

According to what I've read, it is based on the idea that the market will retrace a predictable portion of a move, after which it will then proceed with the original trend.

It may be drawn by first selecting it on the insert section of the tool bar of the trading platform. A separate section for the Fibonacci may be found there in which the retracement is located. After clicking the retracement, you must first identify two extreme point which will be used to draw the line.

Draw the retracement from the high and low point of the trend and after drawing the retracement successfully, six lines will appear each with its corresponding percentage. The new support and resistance level are usually found near the 61.8, 50.0, and 38.2 levels.

Venturing in Forex | InstaForex Informers

Ever wonder how do other sites got hold off those tiny boxes with quotes in it? A beautiful ornament in your site aight? InstaForex is giving out those features without any hassle. It is called InstaForex Informers.

InstaForex Informers are automatically updated graphic elements which is a continuous source of financial information embedded in customer or partner website. It comes in wide variety such as quotes online, flash quotes, buy/sell quotes, news ticker, instaforex charts, currency pair chart, instaforex contest, and many other more. One of the good thing about is aside from it being free, it also allows more than one informer displayed on your site.

If you can see, I have one on the right side of my blog. It only took me a few minutes to install. Just incorporate the given link in your blog layout then it is good to go.

Inside Trade | Dow Theory

Dow theory

After providing you a brief background about the famous duo, Charles Dow and Edward Jones, I'll now give you one of their main contribution in the field of technical analysis. The Dow theory.

Although Charles Dow really didn't coin the term, his contribution mainly through Dow Jones industrial average and articles he wrote on WSJ had been the key to this financial market theory.

The theory mainly revolves on the principles such as the cyclical character of the market processes, directed character of price changes, interrelation between exchange rates and trading volume, etc. which gave birth to the 6 pillars of the theory.

1. There are three types of market movement
   the trend may be classified into 3 different classes: primary, secondary, and minor trends.
   Primary – is a trend which will last for a long time maybe in less than a year or for several years. Also known as long – term trend.
   
   Secondary – is a trend which is expected to last for over 3 months and serves as corrective trend. It is sometimes called as intermediate trend.
   
   Minor – is a trend who has a momentarily effect and is expected to only exist in 3 weeks or less. It mainly reflects short term market fluctuations thus arriving to its other name as short-term trend.
   
   
2. There are 3 phases in the market
   
   According to the theory, a long term trend has 3 phases which is related to the behavior of the investors. Accumulation phase, public participation phase, and lastly distribution phase.
   
   In the first phase, big time investors conducts deals which may be contradictory to the general opinion. After that, the second phase begins wherein active and technically oriented traders are starting to ride the decisions made by the big time investors. Their main concern in following the decision of the big time investors is to go with the flow of the trend. It strengthens the momentum of the first phase as the time goes by. After seeing it, the general public will then start to participate thus marks the beginning of the third phase and the cycle continues.
3. The stock market considers all news
   
   The stock price has an immediate reaction to any new information. Any news may have an effect on the stock price thus it must be considered.
4. Stock indexes must confirm each other
   
   In the Dow theory, indexes must confirm the current trend and signals for a possible trend reversal. Mistiming may happen if one of signal is released earlier than the other.
   
   
   
5. Trends are confirmed by the volume
   
   The increase of the trading volume is an evidence of the main trend.
   
   
6. Trends still exist until a clear reversal is displayed
   
   Though trends may reverse anytime, a confirmation must still be evident in the market. Corrective signals must be taken into account because sometimes it is mistaken as a signal for trend reversal.

Inside Trade | Commodity Currency

Most currency rates are defined by different economic and political factors clouding over their respective countries. But that's not always the case. There are certain commodities that are highly dependent on their exported raw materials. Those currencies are called Commodity currencies.

Most of those who belong to the Commodity currencies are developing countries. But there are a few majors who belong to this kind of currency – Loonie, Aussie, Kiwi.

Loonie is highly dependent on their oil exports. Next thing to middle east countries in terms of oil reserves, Canada has an oil reservoir that can compete in the world trade.

Meanwhile, the Aussie has a huge reserve of Gold which is due to their geographical position. It fills up half of their export thus making the AUD/USD directly correlated to gold prices.

Next in line is the Kiwi. There isn't an outstanding commodity in this region but the huge variety of raw material makes it very dependent to the export industry. Their exports includes dairy goods, meat, fish, wood, wool, etc.   

Inside Trade | A Glance to the Past: Charles Dow and Edward Jones

The widely acclaimed theory in the financial market, Dow and Jones theory, may trace its roots all the way to the 19^th century. The individuals responsible for it; Charles Henry Dow and Edward Davis Jones.

Charles Henry Dow was born on the 6^th of November, 1851. He lived most of his life as a journalist who stood for the truth and unbiased reporting. Though he did not received much education in a formal institution, he managed grab a post at the Springfield Daily Republican which also served as his passage to the journalism world. From then on, he worked his way to the industry until he sought the opportunity in New York's famous financial district, Wall Street.

On the other hand, Edward Davis Jones was also a journalist like Dow. However, aside from being a journalist, he was also a statistician who possesses the ability to quickly analyze a financial report. Though one source claimed that he was a Brown University dropout, he acquired his degree in Worcester Academy in Worcester, MA.

After his arrival in New York in 1880, 29 year old Charles Dow found a work at Kierman Wall Street Financial Bureau. He was then asked to invite an another reporter, in which Edward Jones was chosen. Prior to that, the two met and became co-workers at the Providence Evening Press. One of the probable reason why Dow chooses Jones is because of his dedication in reporting truthful and accurate financial news.

2 years after, the two founded Dow & Jones Company because they saw a need for an another source of financial news in Wall Street. It releases an afternoon two-page summary of the financial news for the day. Later on, it became a full blown newspaper known as Wall Street Journal.

The Wall Street Journal's first issue was released on July 8, 1889 which cost for 2 cents. 10 years later, it was able to release its first morning edition. Along the way before the retirement of Charles Dow, he was able to devised the Dow Jones Industrial Average and the Dow theory. On May 26^th of 1896, the average made its first appearance in Wall Street Journal.  

Venturing on Forex | Becoming a PAMM Investor

After tackling the very advantageous PAMM program, I bet that the curiosity of many had been tapped. In this article, we will take a deeper plunge on the program. How to become an investor.

Before serving the main dish, we'll go with the appetizers first. Most prospective investors may be curious or even skeptic on the safety of their investment. Since the door to an unlimited investment has been opened by PAMM, the last thing that an investor would like is someone who would run away with his/her investment. To extinguish any pessimism clouding over your head, a fund protection guarantee is given to every registered investor to counter any malicious withdrawal from the managing traders. Managing traders may only withdraw a part of their capital which is not used in the open trades.

Moreover, investors may scout their prospective traders by checking the list of managing traders accounts. They can survey the managing trader's balance, investments statistics, and contact information which will provide them a clearer view of the capability of the trader.

Furthermore, investors are given the opportunity to deliberate the amount of the investment, spread it out appropriately to the managing traders, and conduct recurrent investments in the same accounts.

Back to our main topic, every user who has a live trading account can become a PAMM investor. You only have to undergo the following procedure:

1. Log-in to your Client Cabinet.
2. Click the PAMM system link located in the Client Cabinet.
3. Register in the PAMM system.
4. Accept the PAMM system User Agreement.
5. Enter your contact information.

After registration, all of the services available to the PAMM investors will granted to you.

Venturing on Forex | Mentor Thy Self – Forex Training Video

For traders, the first stages of learning is probably the hardest part especially if you don't have someone to guide you. Plus, here's the catch. You cannot survive in Forex trading if you don't know what to do. Even if you got hold of a robot that will trade for you, the basics must still be applied.

So you're stuck because there's no one who would guide you and there's no decent educational material that you can use. What separate winners and losers is the will and capacity to find a way to solve their problem. And one way of solving your problem is through the training videos of InstaForex.

InstaForex, in the light of educating their clients, made video tutorials to serve as trading guides. The training videos are available in 3 different sections: Trading with InstaForex, Indicators Application, MetaTrader 5 Trading Terminal.

Trading with InstaForex

This section orients traders on the path which they may track with the company. From opening an account up to execution of orders, almost all of the things under the InstaForex sun is discussed in the video lessons.

Indicators Application

A must have in your trading survival kit - the indicators. Indicators are the primary tool for forecasting your trades using the technical analysis. Knowing the proper application of these tool will give you an edge over other traders.

MetaTrader 5 Trading Terminal

Downloading and customize you MT5 until it suits your taste, arranging your work area for your comfort, and opening the main instruments of the terminal, all of these things about the latest trading terminal will be taught on these section.

Venturing on Forex | Choosing the Right Trader– PAMM

PAMM, as I had mentioned in one of my post, is a way to forge a mutually beneficial relationship between an investor and a trader. It is designed for a fruitful understanding between two entities that are working as a team. Beginners, especially those who only have an ample understanding of the trade, can really find this program advantageous in the sense that an individual can right away earn a profit in Forex without almost doing anything.

But in order to maximize its potential, a right concoction of the participants must be made. The investor selection is the easy part. As long as a deep pocket exist, then you're good to go. Meanwhile, choosing the right trader may really take some time. Remember, the trader is like the captain of a boat while the investor is the one keeping the engine running. So, you must choose a wise and knowledgeable captain for you not to follow the fate of the Titanic.

Here's a list that you might wanna consider in choosing the right trader:

1. simple ranking
2. profit
3. floating lost
4. amount of trades
5. how old is that account ?

If ever you are wondering where you can find a list of traders that you can employ, feel free to visit this link: http://instaforex.com/pamm_monitoring.php

Inside Trade | World's Stock Markets

In my previous post, I had mentioned that though there are some difference between the security market and Forex, those two market are still connected. One of the characteristics that distinct them from one another is the venue. Stock market conducts its operation on major exchange centers all over the world. Each country has its own unique exchange center and here are some of the major exchanges:


New York Stock Exchange (NYSE)

Founded on May 17, 1972, the NYSE is the center of exchange in America. It is composed of over 1500 gigantic American companies and considered as the largest among all the exchange centers all over the world.

It symbolizes the financial power of the United States and may also serve as the barometer for the economic in America. It also releases two famous indices; Dow Jones Industrial Average and the NYSE Composite Index.

The exchange opens at 2:30 pm and closes at 9:00 pm from Monday to Friday.

National Association of Securities Dealers Automated Quotation (NASDAQ)

A prong to the exchange trident of US, NASDAQ is an American off-exchange market whose specialization lies beneath the shares of high-technology companies. It is comprised of more or less 3200 companies including some Russian companies.

The trading session usually opens at 9:30 in the morning and ends at 4 in the afternoon ET. However, trades may still be continued until 8 in the evening.


New York Mercantile Exchange (NYMEX)

Specializing in oil futures trading, NYMEX was founded in 1872. The commodities and metals such as oil, gas, platinum, palladium, gold, silver, copper, and aluminum are being traded in this stock exchange. The trading hour starts at 2:30 p.m. up to 9:00 p.m. GMT from Monday-Friday.

London Stock Exchange (LSE)

Established  in 1801 but its roots may be traced back up to 1570, the LSE is one of the oldest and biggest stock exchange in Europe. Having survived the two world wars and the “Big Bang,” this stock exchanges witnessed Europe's history. It is opened from 8:00 am up until 4:30 pm GMT from Monday through Friday.

Tokyo Stock Exchange (TSE)

A stock exchange located in Tokyo, Japan. It has 2,292 listed companies in the exchange and placed as the third largest stock exchange in the world. It is responsible for almost 80% of stock turnover of Japan. Its trading hours are conducted from 00:00 a.m. - 06:00 a.m. GMT from Monday through Friday.
Vienna Stock Exchange (Wiener Börse)

The only existing stock exchange in Austria, its foundation may be traced back in 1771 during the reign of Empress Maria Theresa of Austria. It is one of the most oldest stock exchange and is also one of the most established stock exchange in eastern and southeastern Europe.

There are 110 companies listed in this exchange with a trading volume of $ 48, 468 billion. Trading hours starts from 7:00 a.m. - 4:30 p.m. GMT from Monday through Friday.


Frankfurt Stock Exchange (FWB)

Considered to be exist since 1585, FWB ranks as the 12th largest stock exchange in terms of market capitalization. Situated in Frankfurt, Germany, the exchange is owned and operated by  Deutsche  Börse. Its main index, DAX, reflects the price shares of 30 German companies.

Russian Trading System (RTS)

Established in mid 1995, its main purpose is to unify the regional markets into one organized securities market in Russia. RTS Group is the one responsible for the exchange. It provides information about the situation in the Russian securities market.

Trading hours starts at 6:00 a.m. - 7:50 p.m. GMT from Monday through Friday.

Forexpress | FX Bot – Droid of InstaForex Future

Ever since Astroboy fascinated much of the youth of its time, the dream for a world with robots was tapped and slowly materializes into reality. In the not so distant past, robots were invented, though still not as fascinating as the boy robot, who are assisting humans in hazardous activities like underwater exploration etc. Argo for one, the robot which discovered the Titanic in 1985.

Nowadays, the latest technological innovations is slowly breaking the boundaries on the roles of robots in the human society. FX Bot is one of those innovation.

FX Bot is the name of the first droid created to perform Forex related duties. It symbolizes the efforts of the company to lead on Forex innovation and trade services.

The FX Bot, controlled by InstaForex representatives via Wi-Fi, can both communicate with people and at the same time display images and videos to give trading advice thus covering the role of an office-manager.  

Inside Trade | Cross rates

We all know that the direct and indirect quotes are associated with the American currency and newbies may often wonder, what if the currency combination doesn't involve the USD? Currency pairs that doesn't involve USD are regarded as Cross rates.

In order to be used effectively, Cross rates requires an established background in the subject of economy because the trader will have to consider two different economies as opposed to only one on a usual rate. It makes things a little more complicated but it may turn out fine once you got used to it.

For example, you are foreseeing a favorable economic event in Australia due to its strong relationship with China and at the same time the New Zealand's economy will be in bad shape due to a recent disaster that devastated the country. It's quite obvious that you should buy the Aussie and sell the Kiwi but there's a problem. You don't know what will happen to the US economy. To cancel the unknown factor out of the formula, which is the USD, you have to open a position with the same volume with USD/AUD and NZD/USD.

Forexpress | The Million Option Prediction

The doors to an unlimited pool of option is already open for anyone who wants to try out their skills in predicting the future. The One Million Option of InstaForex is a contest held every week from 00:10 Monday to 23:50 Friday (UTC +3). Every registered participant is given a demo account with a thousand points each to make a forecast to either buy call or put option within a specific period of time.

Emerge victorious among the numerous weekly participants by making the right trading decision and be able to take home a bucket from the pool of option for additional trading funds weekly. 5 lucky participant will be ranked according to their rating and will be given prizes according to their rank.

1 place - USD 500;
2 place - USD 400;
3 place - USD 300;
4 place - USD 200;
5 place - USD 100.