Tag Archives: Forex Market

Discover the Blade Runner Trading Method

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The Currency Market is regarded as one of the largest financial markets due to massive trading volume per day. Such type of market is open to all types of traders all over the world since trading deals can be done through an OTC (over-the-counter) network.

In this type of market, participants are free to buy, sell, exchange and take a chance on currencies. It has unique attributes and properties wherein investors become attracted to it since it can open opportunities for optimizing profits. Yet, it takes to know and apply an effective strategy to be able to reach your financial objectives in this market. In this article you can learn one of the most advisable currency exchange trading strategies recommended by experts.

The Need for an Effective Strategy

Not all created strategies apply to all existing markets. There are particular strategies that do better than the others. An individual trader must be able to discern a strategy that suits him and help him outlive the currency market.

It is true that markets have their own characteristics. Its major characteristics are as follows – it is highly liquid, it is open 24 hours per day except during weekends, and has the highest forms of leverage that both traders and investors can utilize.

Simply maintaining discipline when doing trading is important, yet it does not guarantee success. Hence, employing an effective strategy is vital – one that is tested and you can count on while you maintain the needed discipline in the field.

Picking the Right Strategy

When talking about currency exchange strategies, deciding on a specific trading method to carry out your trading plan is a must. Trading strategies help you determine advantageous entry signals that you can make the most of.

Considering the Bladerunner Trading Method

If you are looking for a strategy that works across all time frames and currency pairs, the Bladerunner is considered to be exceptionally good. Experts say that it is by some means considered as one of the best and easiest trading strategies.

This strategy depends on pure Price Action to be able to locate entries, which means that a trader tries to identify price action patterns. When using this one, candlesticks, pivot points, round numbers, support and resistance levels are brought into play.

It uses the 20-day EMA (Exponential Moving Average; a reference point for price action). The strategy is termed as Bladerunner for the reason that the 20 EMA represents a knife dividing a price. The bladerunner trader depends on the charts and then compares the real price action to be able to adjust their trades correspondingly. It simply means that when the current price action is beyond the EMA, chances are, it will drop soon and vice versa.

The crucial entry factor for this strategy is when there has been a break out of price from the consolidation or range before making a move, which means that the price must be trending. Moreover, monitoring news and announcements is really helpful. The most important thing to consider is to always trade with the current trend’s direction. You can simply know this by identifying the current price’s EMA or polarity indicator.

Conclusion

Considering a number of factors in the currency markets, an investor must remember that market volatility is inevitable. One sure way to surpass market turbulence is to be equipped with the necessary knowledge you need when doing trading with your choice of assets or securities. Having an adequate knowledge is necessary for you to predict the succeeding price movement – and be on the advantageous side.

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Earnings Release Week

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This week will be a busy week up ahead for the market community, a lot will be put in the spotlight but the one thing that will stand out is the geopolitical turmoil the US created after the strikes it made in Syria last week.

Financial Institutions and Banks

This will be the first of the big weeks in the financial market, and for this week, all the highlights are focused on the top financial institutions and banks. The scheduled reports for this week, this Thursday, are from prominent banks and financial institutions JPMorgan Chase & Co, Wells Fargo & Co, and Citigroup Inc.

The banks have been on a rollercoaster of a ride from the past months under the new Trump administration. Some other factors that may have triggered the fiscal stimulus hopes for the financial institutions are; deregulations talks and the Fed’s decision to be sterner and hiking the interest rate for a couple of times this week.

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Inflation off The Bat

There will also a big debacle for Friday because of the exclusive inflation data that will be unveiled; the data include whole March’s progress. With the Fed’s recent hikes and its latest meeting last Wednesday hinted that if the inflation data continue to roll, the central bank may and will increase another three or four interest hikes this year.

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G-7 Meets in Italy

The G-7 is a group of countries that consists of Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States. These countries have started a 2-day summit meeting today in Italy after the alarming attack the US made against Syria, investors and the market community continues to keep track on what would happen in the growing geopolitical crisis.

Then entirety of the 2-day meeting is expected to be disclosed at a press conference dated this coming Tuesday Eastern Time.

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Investing Dictionary #3: Expense Ratio

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Expense Ratio is a rare word to stumble upon, it is a word prevalent in-between companies and it varies on more private talks the market community has seen. So going back to Expense Ratio, it is actually a measure of what it costs an investment company to operate a mutual fund.

You may ask how expense ratio is determined; well according to the Investopedia: An expense ratio is determined through an annual calculation, where a fund’s operating expenses are divided by the average dollar value of its assets under management (AUM). Operating expenses are taken out of a fund’s assets and lower the return to a fund’s investors. It is also known as the management expense ratio (MER).

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All You Need To Know About Expense Ratio

Expense ratio varies very differently on each type of fund, operating expenses vary widely. One of the biggest parts or the crucial component of operating expenses lies on the fee paid to a fund’s investment manager or advisor.

Further costs include recordkeeping, custodial services, taxes, legal expenses, and accounting and auditing fees. Investopedia makes a clear distinction between funds, “expenses that are charged by the fund as reflected in the fund’s daily net asset value (NAV) and do not appear as a distinct charge to shareholders.”

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Funds to Keep In Mind

There are two different expense ratio fund; Index Funds and Actively Managed Funds are both type of funds to keep a list on. Index Funds usually carry very low expense ratios; the managers who oversee these funds are plainly repeating a given index, so the need to have a full management team on staff is deliberately discarded.

Actively managed funds, on the other hand, employs teams of research analysts examining companies as potential investments. By coming up with a team, creating and managing this team adds more costs that are then get passed on to shareholders in the form of higher and bigger expense ratios.

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What is the FCA?

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If you’ve been around the Forex trading market, you’ve probably heard or saw FCA somewhere on those trading websites and what have you. First of all, FCA stands for Financial Conduct Authority; they are the regulator for over 56,000 financial services and firms and financial markets in the UK and the prudential regulator for over 24,000 of those firms.

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What Does FCA Do?

FCA is the pioneer for the safer and more honesty financial market, they promote fairness and effectiveness for all consumers all over the world. FCA said, “It is our aim to make markets work well – for individuals, for business, large and small, and for the economy as a whole.”

The FCA started on April 1, 2013. They then started to grow and grow each year, regulating over 56,000 financial and the prudential regulator for over 24,000 of these firms. FCA governs 2.2 million people that are employed in the UK financial service who contributes 65.6 billion pounds in tax to the UK economy.

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How Does FCA Do All The Regulating?

According to FCA’s website, this is how;

Our strategic objective is to ensure that the relevant markets function well and our operational objectives are to:

Protect consumers – we secure an appropriate degree of protection for consumers.

Protect financial markets – we protect and enhance the integrity of the UK financial system.

Promote competition – we promote effective competition in the interests of consumers.

The Financial Conduct Authority continues as a public body that is funded completely by the firms and financial service providers they regulate by charging those fees. They are also accountable to the Treasury, which is responsible for the UK’s financial system, and to the parliament.

Finally, they also work with several consumer groups, trade associations, and professional bodies domestic regulators, EU legislators, and a wide range of other stakeholders.

Trade12Basics is a daily updated blog about the happenings in the stock market, financial realms, and the world economy. It is also a place to find basics in trading and other sorts of tutorials that you can add to your knowledge. Subscribe to further educate yourself about the field that you are to partake in. Trade12Basics  is here for you!

The Types of Dollars in the World

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We all know that the dollar is the native currency in the United States, but there are actually more countries that call their currency the dollar. These are some countries that share the same currency name with the land of the brave!

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Canadian Dollar

Canadian Dollar or CAD for its ISC code is the currency people in Canada use! It is mostly represented as C$ to remove any confusion among other dollars, but often times it is also represented as $. Just like any other dollar CAD is also subdivided into 100 cents, CAD is one of the major Forex currencies and is currently the 7th most traded currency in the world.

The CAD, as of today, produces and circulates 5 cents, 10 cents, 25 cents, 50 cents, 1 dollar and 2 dollars. Unfortunately, the production for the 1 cent was discontinued somewhere around the year 2012, banknotes that the CAD produces and circulates are in the form of 5, 10, 20, 50, and of course 100 Canadian dollar. One more thing about the current Canadian bills is, they are made of polymer as of 2011, as opposed to paper for the previous years of production.

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Belize Dollar

Belize Dollar or BZD for its ISC code is the major currency of Belize, it is represented as BZ$ for further distinguishing from other dollar currencies. This currency dates as far as 1976; it then replaced the current currency of the country which was the British Honduras Dollar. Like any other dollar, the BZD is also subdivided to 100 cents.

Along with the transforming of British Honduras on late 1976, it also replaced its currency to Belize dollar. It was freed from the British colony in late 1981, now it trades in the rate of BZ$2 to US$1.

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Australian Dollar

One of the most popular dollar currency, the Australian dollar or AUD for its ISC code; like most of the dollar currency, AUD is also subdivided to 100 cents. It is commonly represented as A$ to disperse any further confusions.

The AUD was once known as the Australian pound in 1966. But after several years, 1983 to be exactly, the pound was then transfigured from pound to dollar. As of late, the AUD is one of the major currencies exchanged on the world’s Forex markets. It ranks as the 5th most traded currency just behind the USD, EUR, JPY, and GBP.

The AUD circulates coins at 5 cents, 10 cents, 20, cents, 50 cents, 1 dollar, and 2 dollars. While the current banknotes circulation it has is as follows; 5, 10, 20, 50, and 100. The banknotes circulated are all made from polymer instead of papers.

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New Zealand Dollar

The New Zealand Dollar or NZD for its ISO code, the most common symbol the New Zealand dollar is recognized as NZ$. Like any other dollar currency, it is also subdivided to 100 cents. A common slang the NZD has is Kiwi, because of the kiwi bird that is present on their NZ$1 coin.

The NZD replaced the New Zealand pound at 1967, it has been pegged for a quite bit through a series of different currency pegs but has been allowed to float freely since 1985. The NZD is one of the major currencies exchanged on the world’s Forex markets. NZD currently circulates coins in 10 cents, 20 cents, 50 cents, 1 dollar, and 2 dollars. It also currently circulates banknotes are 5, 10, 20, 50, and 100 dollars.

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Trading Commodities

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The commodity as the Merriam-Webster would define it;   an economic good: such as a:  a product of agriculture or mining agricultural commodities like grain and corn b:  an article of commerce especially when delivered for shipment reported the damaged commodities to officials c:  a mass-produced unspecialized product commodity chemicals commodity memory chips.

This simply puts the milk and orange juice we leisurely drink, from the means of energy to power up our homes and vehicles, commodities are a big chunk of our daily lives. In the world of investing, commodities are part of a diversified investment portfolio and they can also be traded in the global marketplace. Commodities are literally anywhere and everywhere in the world, they also garner billions and billions of dollars from investment every day.

Spot versus Future Commodities Trading

The spot price is defined as the current price of a particular market portfolio, in this case, a certain commodity, and can also be bought or sold for the most immediate delivery. One major thing to remember for spot price is that they are very susceptible and subject to extreme volatility. The main difference it has with future prices is that; future prices are increasingly higher over time and higher futures prices reflect carrying costs such as storage.

Commodities are very flexible as it is tradable both in a spot and in future markets. An increasing trend in the commodities community is trading individuals in the form of futures; this happenstance means that you won’t be buying or selling the commodity itself but rather a contract of a certain price by a stated date in the future.

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Commodity Trading Round Up

Just like any other investment goal, we would want to buy low and sell high! The only caveats with trading commodity are; 1) Commodities are highly leveraged and 2) Instead of share, commodities traded in contract sizes instead. One more thing to remember when you start trading commodities is that investors can buy and sell positions whenever the markets are open.

The bottom line is, commodities open a wide variety for your investment portfolio. It expands every portfolio from the usual stocks, bonds, and mutual funds. Every investment carries risks, but what set trading with commodity apart is the alluring high leverage it brings on the table.

Trade12Basics is a daily updated blog about the happenings in the stock market, financial realms, and the world economy. It is also a place to find basics in trading and other sorts of tutorials that you can add to your knowledge. Subscribe to further educate yourself about the field that you are to partake in. Trade12Basics  is here for you

What Makes the Forex Market Move?

It is not just about knowing about Technical analysis when you trade, it is also very essential to have knowledge what makes the forex market move.

News  Makes the Forex Market Move

There is a fundamental force behind the trend lines, double tops, and head and shoulder patterns, these movements and force are called the News!

The point is that news affects the way we observe and perform on our trading choices. There is no difference when it comes to trading currencies.

However, there is  a distinct dissimilarity with how news is controlled in the stock market and the forex market.

Be it big traders, small traders, skinny traders, or husky traders, all have to rest on the same news to make the market move since if there was not any news, the market would barely move at all!

Since it’s the news that makes it change, the news is very essential to the forex market. In spite of the technical, the energy that keeps the forex market going is the News!

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Two Ways to Trade the News

Directional Bias – this means that you anticipate the market to change a specific trend as soon as the news report is out. When considering for a trade prospect in a specific direction, it is good to identify what it is regarding news that will cause the market to change.

Non-directional Bias – this is a more common news trading strategy . This technique neglects a directional bias and just plays on the point that a big news report will generate a big change. It is not important  which direction the forex market moves. The feeling is,  you  just want to be there when it happens.

This means is that as soon as the market moves in any direction, you have a idea in position to enter that trade. You don’t have any preference as to whether prices will  increase or decline.

Actual Number vs. Consensus

Actual Number – once a news report is out, this is the digit that is specified.

Many weeks or days before a news comes out, there are expert that will turn up with some kind of prediction on what numbers will be out. This digit will be different amongst different analysts, however, in general, there will be a collective number that most of them settle on and this number is called a consensus.

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