A series of losing trades causing a significant reduction of the account balance is known in trading as the drawdown. Most people, however, call it a “losing streak” or simply “bad luck”, chucking it off to random factors. Meanwhile, your…
Let’s Talk Inflation: A lesson in Economics
In light of next week’s UK Inflation Report Hearings, I thought this might be the right time to discuss what inflation is exactly, and how it can affect your trading. The BOE governor and MPC members will be discussing…
Chart Gaps: Why Do They Happen?
Trading on financial markets is always accompanied by constant dynamics, and we may only attempt to account for it by conducting an in-depth analysis. If we assume that assets are available for trading round the clock and fundamental factors may…
Am I ready to Trade?
Working for IQ Option, I tend to hear a multitude of different financial questions from my clients on a daily basis. The nature of these questions is often concerned with making some kind of choice or decision in trading: ‘Is there any hope for…
Emotions: Why Does Your Trading Differ on the Real and Demo Balances?
Often traders face a situation when, given stable virtual profits on a demo balance, as they switch to the real balance, their trading strategy becomes ineffective. How can it be, isn’t trading on both of these balances identical? Well, yes.…
Parabolic Stop and Reverse, a Tool for Active Traders
Parabolic Stop and Reverse is a technical analysis tool that a lot of active traders may find useful. It is favored by futures traders that want to always have a position open. PSAR, parabolic stop and reverse, is one of…
The Power of Crossovers: EMA Trading Techniques
A moving average may become a powerful technical analysis tool in the hands of an experienced trader, and even more powerful when it is an exponential moving average. When used together, these two lines form an indicator that is beyond…
Trading Tips: How to Use Japan’s Most Useful Trading Tool
Ichi Moku Kinko Hiyo (from Japanese “one glance equilibrium chart”) is arguably the most daunting technical analysis tool ever created. It was developed by a Japanese journalist in the 1930’s to track financial markets in a manner that could be…
How to Use Stochastic Oscillator in Trading
Stochastic can be an effective technical analysis tool but at the same time it is hard to master. Read the following article to learn more about the Stochastic and ways to improve your results. Stochastic Techniques The Stochastic Oscillator is…
Using Stochastic With Support and Resistance in Trading
Most professional traders agree that Forex requires setting up stop-loss and profit targets, which can be even more important than the entry point itself. Due to the fact that currency pairs tend to move within well established support and resistance…