Inside Trade | Introduction to the Technical – Moving Averages

Several decades had already passed since Forex had first shown its great potential to few wealthy and lucky individuals. Those were the days wherein only the elite could only embark on this kind of investment. Since then, Forex had evolved and adapted to suit the modern times and with it, its analysis.  Hundreds of indicators had already been devised but the simplest and one of the oldest type still lives and still chosen by professionals, Moving Averages.

Moving Averages analyzes the behavioral pattern of the trend by defining effective points for opening and closing positions. It is in the form of curves and comes into different kinds; Simple moving average (SMA), Cumulative moving average, Weighted moving average, Exponential moving average.

Though Moving average indicators had increased its number, their purpose remains the same – provide assistance to traders by means averaging price fluctuations.

Inside Trade | Swap

Every trade opened before 1700 EST and retained after it, is considered to be carried over to the next trading day. An interest is charged or paid for every position carried over the next trading day.

Swap is the amount of money deducted from or added to a client's account for the overnight position.

Swap may occur when two opposite positions with different settlement dates is opened simultaneously.

After the opened position is closed, another would quickly open thus serving its purpose; to carry over the opened position to the next trading day. It may result to either a positive or negative swap. The result is dictated by the difference in deposit and credit interest rates.

The swap rate and cost is set at the moment of trade execution. The bought currency of a quotation is taken as a deposit while the sold one is the credit. If the deposit rate surmounts the credit, the swap is accrued to the account. If the credit rate exceeds the deposit, then the swap is deducted from the trading account. A triple swap is conducted every Wednesday.

The difference in the interest rates had bred a new kind of strategy called Carry Trade. It is intended to generate additional profit through the process of acquiring positive swap.

Inside Trade | A Pillar of Analysis - Ralph Nelson Elliot

An American account whose extensive study of the stock market had lead him to develop one of the most famous and widely used analysis in the market, the Wave Principle.

Ralph Nelson Elliot was born on the 28th of July in the year of 1871 at Marysville, Kansan but later on moved San Antonio, Texas.

At the early age of 20, he started to take up executive positions for railroad companies in Central America and Mexico and later on entered the field of accountancy. He married Mary Elizabeth Fitzpatrick in 1903 that became his companion during his long years in Mexico.


He was regarded as a qualified economist and took part on several international projects of the government wherein he served as an auditor and consultant. During his service to the government, he managed to publish two books, Tea Room and Cafeteria Management, which is based upon his personal experience. He then started conducting business consultation in 1927.

In 1929, a great misfortune had struck Elliot. He acquired a malignant anemia and forced him to an early retirement at the age of 58 because he was already bedridden. But his spirit was truly indomitable and was resenting to be stagnant despite the his condition, so he began to analyze the stock market that later on pave way to the Wave principle. The work of Charles Dow (Dow theory) and Robert Rhea were his main influence.

After several years of research and investigation in the equity market, it lead him to the discovery of unknown patterns of price movement. The detailed result of his work was published in his book, The Wave Principle, wherein a collaboration was done with Charles J. Collins. Several other articles and books were also published after the first book and the last was Nature's Law-The Secret of the Universe  which become his final major work and was released in June of 1946. Two years late, he died. Doors to numerous research had been opened after his death.

Forexpress | The Last Leg – The Silk Way Rally 2012 Results

The result is at hand as the final stage of the Silk Way Rally 2012 came to conclusion. The tandem of a new route and unpredictable terrain are obstacles that contestants had to overcome before attaining their much awaited  victory.

But those few kilometers imposes ordeals that challenged both body and will. The InstaForex Loprais Team landed on the first place after the fourth stage, tackling the position from their main rival and alpha team of the bracket - Kamaz master. But a problem had hindered them from grabbing the victory and finished on the fourth place.

Even if they didn't get the first place, their display of sportsmanship and competitiveness had proved them worthy to be also called winners. The demonstration of high-speed, equipment infallibility and leadership was evident throughout the race. Ales Loprais crew only took this occurrence as a challenged and vowed for a come-back victory in the main competition of the season – the Dakar rally.

Inside Trade | Trailing Stop

Trailing stop is an order with a major function of an automatic maintenance of open positions with permanent shifting of stop loss level depending on price movement.

For example you open a bearish position and you start selling the currency of your choice. 
If the trend still go downwards then your stop loss would go down also but when it goes on the other direction, your stop loss would remain in its position and conduct its function when the necessary limitation is met.

It allows the trader to maximize his chances of gaining profit and at the same time reduces the risk in losing. Just keep in mind that trailing stop works only in an active trading terminal. In such unfortunate situation that it is switched off then the stop loss would be fixed at its current spot. 

Inside Trade | Perks of being a Trader

Excitement

As traders, we cannot deny the excitement involved. The surge of over flowing emotion that comes with trading is one of the reason why some are addicted to trading. The priceless feeling of triumphing against the odds or the urge to get back whenever you lose a trade is something that most mainstream job don't offer.

Status

Trading is not any ordinary job. It is a unique high paying job that sometimes uplifts one's status. It is something that you could be proud of to say whenever you bump to an acquaintance because only a handful has this kind  of  profession and it takes skills to survive.


Comfort & Luxury of Time

The comfort of being the boss of yourself and enjoying the homely wellness of your home is truly a remarkable advantage.  It would be ideal for parents because it gives them the opportunity to be with their kids while earning a living. What more for singles who could travel around the world and enjoy whatever luxury the world has to offer.

Money

The endless amount of money circulating in the financial market provides an unlimited opportunity to gain profit. A door to an opportunity to cease profit that depends only to your capability as an individual. Unlike the normal 8-hours job wherein you're only confined to a bracket of salary and not deriving from your ability to perform the job.  

Inside Trade | Maintaining Consistency and Improving Trading Results

The four most dangerous words in investing are “This time it's different”. - John Templeton

Often than not, we get excited when we stumble upon an article about a new system or charting techniques and ignore those articles directing to self-improvement. We perceived those articles with contents rewritten, recycled all over again and blended with some additional elements just to look brand new. But if we introspect a bit further down to its purpose ,then we would realize its true message. The success lies within the capacity of the trader and not the tools on his/her whim.

In reality, you really needed to analyze the market with tools such as indicators and charts but unless your strategy is already on its peak, an automated one, it still depends on the capacity of the trader.
Thus we should give more importance in improving ourselves before relying on those tools because no matter how good those charts maybe, it would just be wasted in an untrained hand.

Here are some aspects that you should watch out for:

Motivation

Keep yourself motivated, maybe a goal that you really wanted to achieve will suffice. Trading is not a walk in the park wherein everything would be served on a silver platter. It wouldn't bear a fruit unless you matched it with hard work, perseverance, and critical thinking. You need a whole bunch of motivation to consistently provide these attributes.

Balance

Balancing your emotions in trading allows you to focus more and choose the best course of action.
Trading while emotionally unstable will be like walking in an obvious trap without a back up plan to save you. Regular exercise not only keeps you physically fit but also helps in releasing the unwanted stress.

Preparedness

“ A wise man  in times of peace prepares for war”. Being prepared in all aspect, both physically and mentally,  greatly heighten your chances to profit. Devising a strategy ahead of time is a critical aspect in a successful trade.

Doing your homework is also a part of being prepared. Pointing out the mistakes of the previous trades and supplying necessary precautions and solutions would put the icing on the cake.

Focus and Attention

The ability to properly execute your strategy and reacting to the demands of the situation maybe only achieved with a high level of focus and attention. In forex, it only take a single second for a trader to loose their grip on the situation. Failing to analyze the market properly and thoroughly is an impending disaster awaiting to happen.