The forex carry trade is a type of strategy in which traders sell currencies of countries with relatively low interest rates, and use the proceeds to buy currencies of countries that yield higher interest rates. Forex carry trading leverages the differences in interest rates between countries. For example, one country’s central bank may lower interest […]

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One of the top questions scalpers want an answer to is whether their broker allows scalping. Among scalpers, it’s constant fear that if their profits swell to significant amounts they’re going to get black listed. But the real question is can you scalp trade without your broker noticing? Theoretically, yes; but in practice it’s not […]

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The paranoia of retail forex traders is legendary. Some of the more popular sites like forexpeacearmy.com focus heavily on the idea of a scam or someone trying to rip you off. The idea extends to the brokers as well. Traders frequently blame their losses on broker manipulation or games. This undoubtedly happens. I worked as […]

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Candlestick charts, using the individual candles as well as the patterns that they form, can provide an abundance of information to the trader. An oftentimes overlooked aspect of these charts is the trading information provided by longer wicked candles – especially when it comes to stop placement. Many newer traders will decide where to place […]

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When trading in FX, scouting for just the right currency pair can be time consuming. Of course, you’re looking for the pair on the verge of producing the next lucrative trade. Many times it’s hard to decide which pair is the one with the most momentum. And even if you do invest all your time […]

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One of the best trades of my life actually made an extra mad extra due to the appreciation of the same currency. I sold USD/JPY several years ago when it traded at 118.75. I knew there was an important G7 meeting over the weekend, so I placed an anticipatory sell stop on the expectation of […]

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Stochastic oscillators can be a valuable tool for mechanical forex traders. Yet, traders often use stochastics together with numerous unrelated indicators, and the results are generally ho-hum. Like some other traders, I’ve found that using a single stochastic oscillator usually doesn’t produce consistent winners. One stochastic by itself doesn’t seem to yield eye-popping gains. The […]

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Much ink has been devoted to pinpointing the causes of mechanical trading systems failures, especially after the fact. Although it may seem oxymoronic (or, to some traders, simply moronic), the main reason why these trading systems fail is because they rely too much on the hands-free, fire-and-forget nature of mechanical trading. Algorithms themselves lack the […]

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What can we say about trend line? Is there any trader in the world that hasn’t used them? I seriously doubt it. We’ve been told time and again, “Trust the trend line. The trend line is our friend.” The visual appeal of a trend line is just irresistible… trimming the trend and showing you the […]

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Day trading is challenging. Don’t let anyone tell you otherwise. The odds are stacked against you and the risks of loss seemingly lurks at every turn. That’s why it’s important to understand some ground rules about day trading. The rules are there so that you can safely swim with the sharks. Range is Key for […]

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