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Overview of MT4 MetaQuotes Software developed MetaTrader 4, commonly referred to as MT4. It was released in 2005, but it quickly became popular because of its simple interface combined with customizable trading tools and a powerful back-end that allowed the smooth execution of trades. Whereas the original design for MT4 supported forex trading, brokers have since expanded their offerings to include other asset classes: CFDs, indices, commodities, and even cryptocurrencies. Probably the most striking feature of MT4 is the scripting language it offers, called MQL4, or MetaQuotes Language 4, through which it provides access to automated trading. It offers traders an opportunity to develop, backtest, and execute their own trading programs or use already set ones-"Expert Advisors" (EAs). These EAs can automatically open and close positions for them, based on predefined conditions and rules, in this way excluding emotional trading decisions and allowing these strategies to be executed successfully. Core Features of MetaTrader 4 Ease of Use: One of the most distinctive features that make MT4 so special is the user-friendly interface it has. It is very simple and thus easy to use, even for those beginners with minimal experience in online trading. Real-time quotes, charts customizable by different settings, and detailed account information can be obtained in one main window for easy management, making it easier to handle multiple trades at once. Charting Tools: MT4 boasts impressive charting capabilities. It allows users to monitor several charts simultaneously, with the ability to switch between any desired time frames-from one minute to one month-and to apply from a huge variety of indicators and technical analysis tools to those charts. Over 30 built-in technical indicators are supported within the platform, such as Moving Averages, MACD, RSI, and Bollinger Bands. Of course, proprietary indicators can also be developed using MQL4. Automated Trading (Expert Advisors): Probably the most attractive aspect of MT4 is its ability to develop and execute automated trading strategies, better known as EAs. These programs can be set to monitor the markets for certain conditions to occur and execute trades when those conditions are met. This can be done by writing personalized EAs using MQL4 or downloading ready-made EAs from the MetaTrader Market. Backtesting: MT4 allows backtesting, which means one can check his strategy against historical data before using it in live markets. This feature would help a trader in changing trading strategies and checking their effectiveness under numerous market conditions. Customizable Alerts: MT4 allows you to set up price alerts and notifications so that you never miss an important market move. Their alert might be delivered through on-platform pop-up notifications or via email. Multiple Order Types: MT4 has various order types, including market, pending orders, stop orders, and trailing stops. This large array enables traders to carry out different strategies and manage their risks effectively. Mobile Trading: The MetaTrader 4 mobile application is available on both Android and iOS devices. This simply means that traders can manage their accounts, monitor markets, and execute trades on the go. Security: MT4 places great emphasis on security. All data interchanged by the client terminal and servers is encrypted with 128-bit keys, while the platform allows the use of public-key cryptography for secure account management. MetaTrader Market and Signals: MT4 has access to the MetaTrader Market, where trading robots and indicators can be bought or even downloaded for free. There is also a signal service that allows the user to follow more experienced traders' trades and even copy them entirely. Advantages of MetaTrader 4 Accessibility and Compatibility: MT4 is highly accessible because it supports a wide range of operating systems such as Windows, macOS, Android, and iOS. Due to the web terminal in its place, users can log into the platform from any device that has a browser, which means flexibility in access. Customization: Customization is one of the favorite reasons why traders love this platform. The users can orient the platform to suit their specific trading style and needs, such as modifying charts, templates, or even creating custom tools using the MQL4 language. Strong Community Support: MetaTrader 4 has a huge and active community. There exist lots of online forums, communities, and marketplaces where traders share strategies of trading, EAs, indicators, and even tips. Due to this great support network, it is easy to find resources and learn how to optimize the platform. Automated Trading MT4 boasts of an unrivaled automatic trading capability. One can create or download Expert Advisors, which allow traders to execute complex strategies with significantly better trade management, even when closely monitored. Stability and Performance: MT4 is known for stability and performance. The platform stays put, even when heavy trading is done, moving multiple charts, several indicators, and a number of EAs. Broker Support: Because MT4 is so widely adopted by brokers around the world, traders can easily find a brokerage that supports the platform. This broad compatibility with brokers is actually one of the reasons MT4 continues to dominate the retail trading industry. Limitations of MetaTrader 4 Outdated Interface: Although user-friendly, the interface of MT4 is somewhat obsolete when it comes to comparing it with more modern platforms. The simplicity is an asset in this respect, but it may not be that catching to the eye for those traders who need something more up to date with the times. Limited Asset Coverage: It does not offer the same amount of assets as some of its competitors because it only supports MT4 for forex and a few other CFDs. For instance, stock or options traders would find this platform very restrictive in trading, except probably when their brokers offer such instruments through MT4. Lack of In-Built News: Some traders believe that MT4 lacks sufficient in-built news and data feeds, while it permits integration with third-party news services. Still, this feature of real-time news remains lacking and is a major drawback for traders whose strategies are dependent on fundamental analysis in a big way. MQL4 Language Complexity: While powerful and highly customizable, MQL4 is very steep to learn. The traders who have never dealt with programming will hardly be able to create an indicator or EA of their own and have to use only ready solutions. How to Maximize Your MetaTrader 4 Experience Learn MQL4: For serious users of MT4, learning MQL4 will be extremely important. The scripting language will allow traders to design and then execute their own rules for automation without relying on third-party solutions. Expert Advisors: With EAs, you save time and take away the emotional factor of trading, as this automates your strategy. Be you a novice or an advanced trader, the advantage of using EAs means it allows you to apply strategies without you having to constantly monitor them. Backtest Your Strategies: Always backtest your new EA or any other trading strategy on historical data before using it in a live environment. In this way, you will have an idea about how the strategy is performing in various market conditions and can refine it for optimized performance. Use of Multiple Timeframes and Indicators: Enhance your trade accuracy by using multi-timeframes and technical indicators. You will be able to combine shorter and longer time frames to get a broader picture of market trends and price movements. Leverage the MetaTrader Market and Community: Take advantage of the vast amount of resources on offer between the MetaTrader Market and online forums. Whether it be for new trading tools or input into how to best optimize the terminal, the MT4 community is a great partner to have on board. Conclusion: The Longevity of MetaTrader 4 It's old but still holds the biggest share in the retail trading industry with the solidity, flexibility, and great support it has received from the community. This, combined with an intuitive interface, makes it possible for traders of all skill levels to use automated trades. However, the constant coming up with newer and flashier platforms with more functionalities is gradually pitting MT4 against tough competition. In fact, the system MetaTrader 5, MT5, can boast extra features like more time frames, indicators, and asset classes; however, many traders would prefer MT4 because of its simplicity and the wide, already-existing resources it boasts of. It would keep on catering to traders in search of a stable, customizable, and adequately supported platform. Both novice and professional traders would find the necessary tools and functionality in MT4 to achieve success in present turbulent markets.

This means that you do not actually take possession of the underlying currency. Instead, you are paid the difference between the market value and the strike price at the time of maturation. If you want to trade currency options, you need an account with a broker or bank that allows access to this type of account. A forex broker is usually the best option if you are a retail trader. Banks often offer the same trading to institutional clients but only seldom offer it to retail investors. Finding a forex broker is easy since there are a large number of well-established brokers on the market. Not all forex brokers offer options trading. Therefore, you should always verify that the broker you are considering opening an account with offers options trading before you open the account. Options and binary options are not the same. Please note that options and binary options are not the same things. They work in a similar way, but binary options limit your profits to a predetermined amount. You will always be paid that predetermined amount if the option matures in the money regardless of how much above or below the strike price the market value is at the time of maturation. A binary option will therefore limit your upside. Binary options are also non-transferable once purchased. You are unable to buy and sell them as you can with a regular option. A regular option makes it possible to make a profit by trading with an option that ultimately does not end up maturing in the money. This is not possible with a binary option. I do not recommend binary options trading. Binary options are designed to make the broker money and are more like betting than it is trading. Finding a broker Below I will cover the most important things to consider when looking for a broker that allows you to trade forex options. Forex options: Make sure that the broker features trading with forex options. Regulatory body: You should always choose a broker regulated by a well-known regulatory body that offers strong investor protection. The risk of getting scammed is high if you choose an unregulated broker or a broker that is licensed by a low-quality regulator. Choosing a broker that is regulated by a strong regulator guarantees that the broker complies with best practices. Examples of strong regulatory bodies include the FCA, CySec, BaFIN and a number of other regulators. You can find a list of brokers regulated by trustworthy regulatory bodies by visiting daytrading.com. Reputation: Choose a broker that has a good reputation in the market. Check reviews online and the broker's reputation on trader forums. Remember that no broker has a 100% positive reputation. There will always be unsatisfied traders. You should look for a broker where the majority of clients are happy with the service. Feed and Commissions: Choose a broker with low fees and spreads. I recommend that you choose a broker that doesn't charge any account fees, only trading fees. High fees make it a lot harder to make money, and it is, therefore, very important to choose a broker with the lowest fees possible while still offering the features you need. Platform: Make sure that the broker provides access to the platform you want to use if you want access to a certain trading platform, such as MetaTrader or Ninjatrader. If you are new to trading or if you do not have a preferred platform, then you can choose any broker since all reputable brokers provide access to decent platforms. Demo account: A demo account is an account that you can use to make virtual trades without risking any real money. A demo account is a very powerful tool that you can use to learn how to trade and that more experienced traders can use to try out new strategies. You should always choose a broker that provides you with a free demo account. Software: If you want to use other tools or software, then you need to ensure that the broker allows you to use these tools. An example of this is if you want to use auto trading platforms. Some brokers restrict the usage of auto trading software while others do not. Choose a broker that allows you to use the tools you want to use. Mobile trading: The quality of the mobile trading platforms can vary a lot between different brokers. Choose forex brokers that provide access to a well-designed mobile platform if you want to trade on the go. Note that the desktop platforms will always be better and offer more features. I recommend that you trade on a desktop or laptop if you are able to do so. Customer support: You should hopefully never have to contact customer support. But if you do, it is important that the broker offer good customer support when you need it. Choose a broker that is known for good accessible customer support. Banking options: You should choose a broker that provides you with a banking option that is fast and easy for you to use. The broker should make it easy to deposit and withdraw money. The banking options should preferable be cheap to use so that you can deposit and withdraw money without paying a lot in fees. Many brokers offer banking options such as wire transfers, VISA, MasterCard and different e-wallets such as Paypal and Skrill. Choosing a broker does not have to be difficult. Plenty of good forex brokers offer everything you will need when first starting to trade forex options. Do not be afraid to choose the wrong broker. You will be fine as long as you choose an established regulated broker. If you do not like the broker, you can always switch to another broker later on once you have gained some experience and a better understanding of exactly what features you want from your broker. This is a contributed post.

Currency investing is essentially betting that one country’s economy will be stronger than another’s, and when done right, it’s a very effective strategy. If you are considering currency investments for the first time, here are a few important tips to help you improve your strategy and avoid any big losses. Consider Using A Broker The majority of trading happens on a day-by-day basis, which means that your success depends on your knowledge of different industries and assets. Currency trading or Forex trading is no different and investors are able to trade currencies 24 hours a day on weekdays, so there is the potential for some big profits. However, you will only make those big profits if you have an in-depth understanding of the global market, which many people do not. Even if you have experience in other investment strategies, that doesn’t necessarily mean that you have the knowledge to successfully trade currencies, so you should consider a broker. Unless you are completely confident that you know what you are doing, you should find a Forex broker and have them handle the day-to-day trades for you. When searching for a broker, make sure that you use a reliable one that is authorized. In the US, all reliable Forex brokers should be a member of the FINRA (Financial Industry Regulatory Authority) and they should also be registered with the Securities and Exchange Commission. There are so many brokers out there that claim to be legitimate but, unless they have these credentials, you shouldn’t hand your money over to them. Stick To Major Currencies New investors often make the mistake of investing in more volatile currencies because there is potential for a higher return. Argentina, for example, used to be a very popular trading currency but when an international crisis shut down the banking system in the 2000s, a lot of people lost their money. Although these volatile currencies may seem like an attractive prospect, the risk is not worth it and you are far more likely to lose big money. It’s much safer to stick to major currencies in countries that have a stable government. Political turmoil, international relations issues, and financial problems will all devalue a currency very quickly, so steer clear of any countries that are likely to experience any of these things. Instead, look at the biggest global economies that are seeing steady growth and are unlikely to experience any major financial issues in the near future. Although the returns on these currencies will be smaller, the risk is also far lower. Invest For The Long Term If you are looking for an investment opportunity with a quick turnaround, currency is not the best choice. In the short term, currency investments are one of the most volatile investment options. Things like inflation, GDP, unstable governments, corruption, employment rates, and nationalization can all have a big impact on the value of a currency and they tend to fluctuate a lot. If you want to make successful short term currency trades, you need to have an in-depth knowledge of international politics and economics, as well as an understanding of local factors in the countries that you are invested in. Your broker will be able to help with this to some extent but they are more likely to be focused on long term investments. If you are willing to invest for the long term and you set realistic expectations about your investments, the risk is reduced in a big way and you stand a much better chance of seeing any meaningful returns. Consider An ETF Or Mutual Fund ETFs and mutual funds are another effective way to reduce the risks involved with currency investing. ETFs or exchange traded funds group together a collection of different investments and trade on a daily basis, so their rates fluctuate throughout the day. You can buy and sell an ETF during the trading day, just like you would with stocks, but the main benefit is that all of the research is done on your behalf. You simply need to decide when to buy and sell your ETF and you can leave all of the specific currency trades to the experts. A mutual fund adds your investment to a pool with a lot of other investors and makes various trades using that pool, with each investor taking their share of the profits. If you invest in mutual funds or an ETF, you can spread the risk and reduce the chance of making a loss in a big way. You can also let somebody else with more knowledge and expertise handle all of the hard work for you, so it’s a great option if you are new to currency investing. Be Careful With Leverage Currency Investments Many companies offer leverage currency investments, which essentially means that you borrow from your Forex broker to make your investment. This does allow you to make larger investments but, in most cases, it should be avoided. However, even though this strategy can amplify your profits in a big way, it can also amplify your losses. When trading in something like currency, which can be very volatile, this is a huge risk. If you can afford to absorb the losses and you are willing to take the risk, then you may consider this strategy. However, if you are not prepared to absorb large losses and you want a low risk, low reward currency investment, you are much better off going with a mutual fund or ETF, or investing directly through a Forex broker. Currency investments are a popular way for investors to expand their portfolio and when done right, they can be very effective. However, successful currency investing requires a good knowledge of global economies and international relations, and short term trading can be very risky. But if you hire a reliable broker and invest for the long term, you should see some meaningful returns. This is a contributed post. Related articles 5 Ways To Identify Fake Forex Broker Reviews 7 Ways To Avoid Forex Scams GBP/USD: If Boris Johnson Becomes PM, Volatility Will Rise BTC/USD Struggles To Maintain Newly Conquered Territory 4 Patterns For Forex Profitability Tales Of How Big Trades Went Wrong Eight Mistakes Every Forex Trader Should Avoid

This ease of entry doesn't mean everyone succeeds in forex trading. A multitude of issues can end your forex career quickly, so you must try to avoid them. Here are the eight most common mistakes new Forex traders make: Don't go for the wrong broker A broker can make or break your forex trading career. The selection of a broker is, perhaps, the most significant and most important decision you need to make since an unreliable one could potentially cause you to lose all your hard-earned capital. To ensure you're not making the wrong decision, for starters, the brokers you're considering should be a part of the regulatory bodies of their respective countries. Luckily, many US forex brokers are registered with The National Futures Association (NFA) and the Commodities Futures Trading Commission (CFTC). Choosing the right broker is a rigorous process, and you should spend a lot of time before you make a decision. Never add more to a losing trade Sometimes, when a trade is going wrong, traders are convinced that adding to their positions or averaging down, can help reverse the falling trend. Despite its popularity, averaging down is a strategy that forex traders should avoid altogether. It's never a good idea to add more money to a losing trade and risk even more significant losses. To avoid such circumstances, it's always better to have a stop-loss in place, so, in case the prices start going against you, the activation of the stop loss can end the trade at minimal damage. Don’t keep trading if you keep losing Every forex trader needs to keep an eye on two trading stats: the risk/reward ratio and the win-rate. The risk/reward ratio is defined as the amount you win as compared to the amount you lose. On average, if your losing trades amount to $100 and your winning trades amount to $250, your risk/reward ratio is 2.5. You should at least aim to maintain your risk/reward ratio above one and ideally above 1.25 every day. On the other hand, the win-rate indicates the number of trades you win as a percentage. If out of 200 trades, you win 140, then your win-rate is 70 percent. A trader should aim to maintain his or her win rate at above 50 percent every day. A trader can continue to be profitable with a higher risk/reward ratio and lower win-rate or a lower risk/reward ratio and a higher win-rate. Ideally, though, both of these should be above the minimum range, and you should employ trading strategies that can help you achieve these numbers. Always have a stop-loss in place A stop-loss is essential every day you engage in forex trading. Even the most experienced traders aren't immune from losses in the forex market, and trading decisions can go wrong at any time. Having a stop loss in place can help you get out of a trade when the price of a currency pair moves against your strategy by a specific amount. A stop-loss often acts as an insurance policy, and you should moderate your losses and use the amount to move on to the next trade. Don't risk more than you can afford to lose Risk management is a vital part of forex trading and determines how much capital you can afford to risk on every trade. On any single transaction, traders should never risk more than 1 percent of their capital. In case you're about to lose more than this amount, a stop-loss order prevents that. A risk management strategy ensures that even in the case of losing multiple trades, you only lose a minimal amount of your capital. Similarly, if you manage to win 2 or 3 percent on every trade, you can recover your losses quickly. Another essential part of an effective risk management strategy is managing daily losses. Even if you're risking a percent of your capital on every trade, but are engaging in several trades per day, you could potentially lose a large amount of your money. In this case, it's crucial to have a daily stop-loss that prevents you from losing more than a specified amount every day. Never go all in Even with a risk management strategy in place, it's tempting to avoid it altogether and risk more capital than you're typically used to. Why one decides to make a decision such as this could be due to several reasons; you may want to recover previous losses or are feeling extremely confident about a specific trade. Regardless of the reason, though, you should never defy your risk management rules. Risking more than the set amount can lead to mistakes, and these mistakes tend to grow one on top of the other. When a risk doesn't work in your advantage, you might end up canceling your stop-loss altogether in hopes that the trade will turnaround. It's crucial to avoid such temptations in any circumstances and always abide by your risk management strategy. Don't try to predict the news Forex prices are highly susceptible to various political and economic news. Significant changes are likely to take place during scheduled news releases. It's easy to think you know which direction currency pairs will move and take a position based on those predictions. However, this is never a good idea since price fluctuations during these times are incredibly likely, and prices are expected to move in both directions before settling into a stable course. This means you're likely to lose immediately after a news release. While there are chances of that losing trade to turn into a winning trade, this losing trade may also remain a losing trade. Additionally, since the spread between the asking price and bid is more significant, the trade may not be liquid enough for you to get out of easily. Hence, instead of predicting the direction in which the news will influence currency pairs, it's crucial to have a strategy in place that'll let you be part of the trade after the release. You can always profit from the price fluctuation without any blind risks. Don't trade without a plan A trading plan is a document that highlights your trading strategy. It covers multiple areas, including what, how, and when you will trade. This plan should be drafted in detail and needs to include what markets you'll be involved in and when. It should also cover the time you'll take out to analyze and make trades. Amongst other things, this trading plan should highlight your risk management strategy and how you'll enter and exit the trades (in winning and losing trades, both). Trading without a plan is equivalent to a senseless strategy; without an idea of what you're planning on doing, you're bound to make mistakes. Hence, it's vital to create a trading plan and test it out on a demo account before you start risking your actual capital. Conclusion Forex trading is, undoubtedly, complex. It's a risky area that should never be entered without the right education and knowing what you should and shouldn't do. However, with the right mindset and the right commitment, you can easily succeed in forex trading by avoiding the mistakes that differentiate a novice trader from an experienced one. What other mistakes should a forex trader avoid? Let us know in the comments below!

It is not pretty, but it could’ve been worse. Let’s get down memory lane. Alexander Kuptsikevich, analyst at FxPro, goes back to doomsday, back in 2008, when the financial world got as close as imploding as we have seen in decades: "My biggest failure was in Autumn 2008. I would like to remind that before the Lehman Brothers faced bankruptcy, the Fed and The Bank of England had bailed out several large banks. Those bailouts had ended up with relaxed financial conditions, which supported the market in general. The idea of separation was crucial as well. It was considered that problems in the USA and Britain made investments in Europe and developing economies more attractive. This time the authorities got tired of acting like firefighters who rush from one fire to another. My bet was on AUDUSD rising and GBPJPY falling. The healthier the banking sector was and the farther it was from the epicenter, the better the currency felt, I thought. However, the AUDUSD swooped down as the world was taken over by the only idea – to go to liquid assets and to reduce leverage. That episode demonstrated that the connections within the financial world were strong and that investors could prefer liquidity to investment potential. It cost me a couple thousand of dollars. Not too much for the life lasting experience and a drop in the ocean in comparison to the consequences for the world economy." Another popular mistake was the one Marc Chandler recalls, getting in the Short EUR train at the wrong time, the start of 2017: “In my work, I have been able to make some big counter-trend calls because of long-term valuation, such as my call in my first book (Making Sense of the Dollar, 2009) for a sustained bull cycle for the dollar. However, in the beginning of 2017, with the euro 20 percent undervalued on OECD's PPP model, I chose to fade it, leaving me wrong-footed” EUR/USD went from opening 2017 at 1.04 to closing it at 1.20. But not all trading mistakes end up with catastrophic outcomes. If you are lucky enough, you can even get out of one hell of a bad trade with some profits. Bradley Gilbert, CEO at Traders4Traders, got that lucky bounce when he was about to get a margin call in an AUD/NZD trade: "After I left the banks and started trading for myself, around the time of the peak of the GFC, I found myself trading a much smaller trade size than I was used to at the banks. I recall going long AUDNZD around 1.2650. It was only 5 lots and the range in AUDNZD for the past year had been 1.2600-1.2800. Big mistake, as it was the first day of the start of a fall in AUDNZD of 20 big figures. That’s right: 2000 points straight down and I didn’t have a stop in place. Because the trade size was small I didn’t think I need to have a stop. By the time AUDNZD was trading at 1.0650 I was long 100 lots, my account of $200,000 was down to the last $20,000. It was the craziest and worst trade I had entered in 25 years and it all started with 1 crap trade that I totally underestimated. I recall getting a margin call from New York. If I didn’t put more cash in they were going to close the entire position out. I waited and didn’t add any cash. Luckily the AUDNZD started to rally and closed the week around 1.0800. A little bit of breathing room if anything. Over the weekend a guarantee on the Australian banks was announced and AUDNZD jumped 800 points on the open. I closed the position out for a $220,000 profit. So I ended up with $20,000 profit from the whole experience but that in no way compensated the trauma and grief that position caused. I would gladly give back that $20,000 if I could delete that experience from my memory bank. If anything it taught me one thing, never underestimate the market and always respect all positions, regardless of the size of the position. To this day I have never run a position as stupid as the one mentioned above. I got a lucky break and live to tell the tale, but many traders aren’t so lucky. This trade was an important part of my mantra “Plan the Trade, Trade the Plan”, and leaving nothing to chance!" Ooof, that was close. And even if Bradley would give back that $20k profit to erase the pain caused by the experience, we guess it was worth it. Better to learn while winning than learning while losing. This is a guest post from FXStreet, a leading provider of data, real time analysis and actionable tools for Forex traders. Related articles: 4 Patterns For Forex Profitability Follow Your Plan: Don’t Engage In Reckless Trading

On the other hand, by improvising, you’re risking getting severely draw-downed, as Wayne Ko Heng Whye, head of research & education at Fullerton Markets, explains: "The 2 biggest trading mistakes I made in the past 10 years were not having a trading plan and not following my trading plan after I had one. When I first started to trade, I did not have a trading plan, simply because I did not know such a thing existed at that time. I traded without any strategy, I had no consistent rules of entering and exiting the market. I did not have proper risk management. In short, I was gambling with the market. I did not take the effort to get myself adequately educated in trading. As a result, I blew my first live account in under 2 months. Later, I went through courses, interviewed and learned from trading experts. I learned that most successful traders, if not all successful traders, have their own trading plan. So I embarked on crafting my own trading plan, which includes proven trading strategies (stating the entry and exit criteria), risk management (stating maximum risk per trade) and maximum drawdown per month, etc. I was having some consistent results following my trading plan and then I started to make my second biggest mistake. I became over-confident and started to deviate from my trading plan. I entered the market disregarding my trading plan. I risked much more than what I should have. I am pretty sure at this point in time, most of you would be thinking 'What is the point of you having a plan if you are not following it?' Yes, that was exactly what I realized after I made my mistake and my trading results went south. The saving grace was, even though I deviated from my trading plan, that I still followed some of my risk management rules. Nonetheless, I still suffered my biggest drawdown ever in my second live account. Ever since, I have been following my trading plan diligently, and I review it periodically to adapt to the ever-changing financial markets." Blowing your account or hitting a margin call is a likely outcome if you are caught guessing outside your plan, as it happened to our analyst, Alberto Muñoz: "One of my biggest trading mistakes was to think that something can't happen in the market. My story is as follows: ten years ago I was trading Eurostoxx futures in my personal account. I opened a short position an hour before the regular European session close. Just before the regular close, I thought: 'well, what would happen if I added another short position? The market is up 2%, there has to be a correction'. So I sold another contract. A few hours later Eurostoxx futures were up 7% and my account hit a margin call. Maybe I should have followed my trading plan and close the position instead of trying to guess about the future. Moral of the story? Stick to your trading plan, follow your rules and never think that something can't happen in the market, because it will happen... and it will be painful (for you and your account)!" A big part of a sound trading plan is selecting the assets you feel comfortable analyzing and trading, avoiding other markets where your knowledge might be limited. Stanislav Bernuhov, trader and trading coach at Common Sense Trading, tired to take some profit from the Corn options market but ended up being eaten by chain of errors: “Once, I read a book by James Cordier and decided that I need be an option seller to consistently withdraw cash from the market every month. I’ve deposited a decent amount of cash to a broker and decided to sell out-of-the-money calls for corn futures. I had no idea of how this market worked, what were major supply and demand factors, seasonalities, etc. I just thought that “technically” the price was not going to reach my strike price. Later on, after the crop report, corn futures started to soar very quickly, and my short call position was underwater - it wasn’t just a regular move, but rather a strong bullish rally. I tried to hedge my option position with futures, but I didn’t know this market well, and every time I bought it, it was bringing me even more losses. Eventually, I’ve decided to close all my positions altogether and take a loss. Futures trades were closed quickly, but call options were not liquid enough and I exited with significant slippage. Later on, I studied that I shouldn’t have exited my option trades with market orders, but during that time, I was already emotionally exhausted and ready to get out by any price. Thus, I’ve made as maximum mistakes as possible in a single trade. Bottom line: know the market which you trade before putting much money under the risk! Don’t react emotionally if something goes wrong. Good luck!” But a trading plan isn’t only limited to the technicals and fundamentals, to money management and position sizing. Any trader needs to know under which conditions he is suited to operate and under which ones he will incur in reckless trading. Trading from a suitable place, room and device and doing so while being fresh and healthy matters. Ahmed Darwish, the owner of Forex Community, remembers trading from his phone, away from his chart, as one of his biggest mistakes: "It happened to me to look at the MT4 from mobile and I was far away from chart. I found the price of a specific pair to be good for a setup and try to remember how the chart looked like using my template and method. Then I decided to enter the market. This was one of my biggest trading mistakes and bad decisions I made as not all time it will go good. I discovered that one of the key point to have a successful trading life is to deal with setups with special sanctity and have a process that you will never violate under any condition." Even if trading from the correct device and room, it’s important to always double-check the settings of a trade before executing it. Rob Colville, founder of The Lazy Trader, had the auto-filling feature in Google Chrome to blame for one of his most regretful trading mistakes: “Back in 2011, I failed to see that my computer had automatically populated the ""stake size"" when placing my order for a Gold trade. While Chrome's form auto-population feature is exceptionally useful when filling out mundane personal details, it is exceptionally hazardous when it comes to the broker platform! After placing the trade (which was a very good setup might I add), I forgot to double check the details of the order before submitting it as a resting order. Therefore, I did not notice that the trade's stake size was five times bigger than it would normally be. I normally risk a maximum of 2% of my account's equity on any trade, no matter how good the set-up is. However, to my horror, I noticed that several days after the trade triggered, the running loss of 4% was far greater than it would have been if the normal amount was risked. Instead of my normal lot size, Chrome had automatically populated the form as my date of birth (which was, of course, a far bigger number!) This meant that if the set-up failed completely, I would lost 10% of the account value rather than 2%. This was a very worrying prospect as nothing is ever guaranteed in trading.. .no matter how good the set-up is! Instinctively, I wanted to just wait and exit the trade IF it made its way back to breakeven but even that would have been a mistake. There are, after all, no guarantees it would do this. I then decided to end the agonizing, stomach-churning experience by killing the trade at a 4% loss. Exiting in the moment and losing 4%, although not ideal, would be far better than leaving it exposed to a 10% loss, while ""hoping""! Exiting in the moment I had realized was the right thing to do. Had I let it ""play out"" then it would have experienced a 10% loss on this trade - a very big hit to recover from. Learning experience: Never get blasé when it comes to placing your trade. Always triple check the orders submitted to your broker in case of human or computer error. No one is infallible, not even Chrome! If you do find yourself embroiled in a ""trading mistake"", exit immediately without a moment's hesitation. Not doing so could cause you to lose more money or reinforce bad habits. If you do endure a lapse in discipline, I feel it is important you punish yourself in a way outside trading so that it reinforces the fact that you have made a mistake and should not do it again. My punishment was to read the ex British Prime Minister, Gordon Brown's book (...and that was certainly a punishment!)" Oh well, the punishment certainly looks paltry to the loss suffered, but we suppose one can only add so much pain to a losing experience. Actually, incurring in losing trades is painful enough to, moreover, decide to get into the market while being sick. That’s what Ed Ponsi, president of FXEducator LLC, recalls as one of his biggest trading mistakes: “I had a bad case of the flu, so I took some medicine and then I went to bed early, around 8pm. I woke up at 3 am. This was in New York, so 3 am is equal to 8 am in London. It was time for the London Open! I got out of bed, still very sick and feeling very strange from the flu medicine. I opened the trading platform. As GBPUSD began to move higher, I hit the button and bought it at market. At least, that’s what I thought I had done. GBPUSD continued to move higher. My P&L number grew larger and larger. Then I noticed something very important. The P&L figure was red, not green. I had accidentally shorted GBPUSD by hitting the wrong button. I closed the trade for a loss and went back to bed. It was an expensive mistake, but I learned from the experience. Since then, I’ve never been tempted to trade while sick or while taking medication. You are better off staying in bed!” This is a guest post from FXStreet, a leading provider of data, real time analysis and actionable tools for Forex traders. Related articles: 4 Patterns For Forex Profitability Karen The Supertrader: Myth Or Reality? Karen Supertrader: Too Good To Be True? How Victor Niederhoffer Blew Up - Twice The Spectacular Fall Of LJM Preservation And Growth James Cordier: Another Options Selling Firm Goes Bust

It also depends on the currency you’re trading with: profitability is higher with certain currencies at certain times of the day, but the same currencies yield losing trades at different times. Why do many traders fail at forex trading? Very often we find that common trading strategies have limitations that few understand. There is more to profitability than timing. Here are 4 patterns related to forex profitability. These are all based on hard facts accumulated by FXCM for its US clients. FXCM is a large US forex broker with significant global operations, so the data here is significant. ● Forex Traders with FXCM were right on their trades more than 50% of the time. Anyone would say that is a great statistic. Does that mean they were profitable on their account? No, traders lose more money on losing trades than they win on winning traders. A simple fix to that is traders should be using stops and limits to enforce a risk/reward ratio of 1:1 or higher. ● Most forex traders are range traders – that means that they don’t wait for a breakout. The more success in range trading was done during Asian trading hours, when movements are more limited to ranges. It’s important to remember that the opening session of the week is more volatile than all the rest that follow. ● The third most common mistake traders made is trading with too much leverage. Traders should take their account equity and multiple it by the effective leverage target and they will know their maximum account exposure before entering a trade. High volatility + high leverage are usually a recipe for wiping out the account. ● European and North American Trading Hours tend to have the most volatility. We’ve seen that trading on trade breakouts tend to be more successful trades during that time. If you’re stalking on breakouts, then these volatile sessions (and especially the overlap) are the best times for you. This is a guest post from FXStreet, a leading provider of data, real time analysis and actionable tools for Forex traders.

While a lot of information comes from real experience of people that have used a brokers’ services, some may have a hidden agenda of promoting the broker. Promoting a broker is OK, as long as it’s done in a transparent way. Let’s see the 5 ways to identify fake reviews: Look at the site: if this officially a forex news site / education site, but the first thing that you see is a big list of forex broker reviews, then you can take the reviews with a grain of salt – the site’s sole purpose is to make money on affiliates and not necessarily have up to date news. So are the reviews genuine? Check the link: If you see something like landingID=3 or affiliate=fxsite at the end of the link that leads from the review page to the broker’s site – this is definitely an affiliate link – the reviewer gets paid for referring clients to the broker. Getting paid for referrals is legitimate, but hiding the fact that the reviewer is paid for the service isn’t proper. For site owners, the solution is to write a disclosure about the affiliation. This way, the readers can judge for themselves if this genuine or not, having the knowledge about the affiliation deal. Option to comment: If the site has an option to add your own comment on the review, actually your own mini-review on the broker, that’s a good sign of openness. But this may be tricky as well. Try commenting and see if your comment really appears on the site, or if it’s held for moderation forever. Sometimes comments are automatically posted, but are later deleted when they aren’t convenient. Such sites’ openness, but it’s fake. Check the forum member: if a forum member posts a reply with a recommendation about a forex broker, even without an affiliate link, he could be associated with the broker. If he’s officially representing the broker, that’s like a full disclosure – you can judge him for yourself. But if he’s not? Well, check out what else he wrote on the forum. If he’s a regular participant, it could be genuine, but if his main agenda is promoting the same broker, don’t take his word. I must say the Forex Factory is doing a good job at getting such promoters out of the forums. Search the web for negative commentary: A common check if to search for the name of the broker with the word “sucks” – this will easily bring you to negative reviews, and you can see how bad they are. Getting results for this search doesn’t mean the broker is necessarily bad, but this is how you’ll get some negative words as well. Do you have additional ideas about how to find false broker reviews? This is a guest post from FXStreet, a leading provider of data, real time analysis and actionable tools for Forex traders.

So, how can we avoid falling in such forex scams? Casey Stubbs already covered this issue and gave 3 ways to avoid forex scams. I’ll expand on his advice, and add some more thoughts: If it looks too good…: Sites that promise automatic and big profits in no-time should raise your first suspicion. There’s no easy money in this market. Sites that try to sell such products will usually have only one page that showing blinking dollars and no serious explanations. The graphics are usually “loud” and not humble. Talk to people: Casey suggests talking to people in the company and also with people that use the product to get an idea. In some cases, the people you’ll see in the promotional video will already look like clowns. In other cases, they will look serious, but you need to verify that they really stand behind their product. Google the product and search for problems: I’ll add that you easily do a Google search, and add words such as “sucks” or “scam” to the name of the product. If the search results yield too many convincing results, it isn’t only competitors that are complaining – it’s real people that have already suffered. Check the people on LinkedIn: The world’s leading professional network has a very wide audience. Searching for the people behind the company in Google will almost always yield the LinkedIn page in the first results. If the people behind the venture don’t have a profile on LinkedIn, that’s a problem. If they do, see who recommends them. Solid recommendations will help you feel better. Regulation: A serious participant in the market will be regulated by at least one authority. The American NFA is the toughest authority (sometimes too tough). A stamp from the NFA, FSA, CFTC or another reputed institute in a normal country doesn’t mean that the company is bona fide, but it’s better than nothing. Companies listed in some exotic island look suspicious. Demo account: As aforementioned here, a forex demo account is the basic broker check. Some robots can actually have an OK performance, but how can you know that? You need to check it out. Ask to try it without real money. Intuition: Well, at the end of the day, you get a feeling about the people on the other side. As you can see, the forex industry has lots of bad people in it. Contrary to the basic rule at court, where a person is innocent until proven otherwise, you should assume that everyone is guilty and that they need to prove their innocence to you. This is a guest post from FXStreet, a leading provider of data, real time analysis and actionable tools for Forex traders.

After a tear-provoking meeting with her backbenchers, UK PM Theresa May has pledged to set a date for her departure after the upcoming Brexit vote in early June. And, she will do regardless of the result. It is now clear that "The end of May is in early June." For pound traders, there is no time to delve into May's legacy but rather to look to the near future with the clock ticking down to Brexit, which is due on October 31st. On the same day that May faced her political executors, her former foreign secretary Boris Johnson threw his hat into the ring by saying he would run if there is a vacancy. His early announcement was well-timed, and most British newspapers put his picture on their covers alongside the news about May's upcoming resignation, portraying him as the PM in waiting. Johnson is the leading candidate as he is well-known and is popular among the membership of the Conservative Party. Under current party rules, MPs filter candidates until two are left. The vote then goes to the membership. Assuming he makes it to the shortlist, the road to Downing Street is paved for him. GBP/USD already fell on the specter of PM Johnson Johnson has a staunch supporter of Brexit. The former London mayor, in addition to his role as FM, is a eurosceptic, was one of the proponents of Brexit in the referendum, and also quit May's government over a Brexit strategy that was not "clean" or hard enough. Markets have a clear opinion against the UK leaving the EU, and the pound dropped on the latest political developments, including Labour's decision to end cross-party talks. Johnson's probable ascent contributed a lot to the mix. Apart from his senior posts, Johnson is known for his gaffes and erratic style. If he becomes PM, his unscripted comments may result in sharp moves in the pound. That can be taken as a certainty. But will the pound keep on falling? Another characteristic of Johnson is his love of himself and another one his aspiration to become PM. Long before announcing his candidacy, he wrote an admiring biography of Winston Churchill, the heroic PM during the Second World War. Political analysts saw the book as a declaration of intent: that Johnson is also aiming for 10 Downing Street. After achieving his career goal of entering Churchill's role, the colorful Mr. Johnson may want to cling to power more and creating a worthy legacy, like his protagonist. He may want to secure Britain's position in the world and maintain a stable economy. And for that, he may follow the footsteps of another wartime hero. Johnson may do a de-Gaulle on Brexit General Charles de Gaulle fought the Germans in the war and then became France's long-serving president. He vowed to keep Algeria French but then made a 180-degree about-turn and retreated from the former colony. Johnson may follow de Gaulle's footsteps. by stepping away from his rhetoric on Brexit and finding a compromise with the EU. And if takes this path, unthinkable at the moment, he will be instantly rewarded by a stronger pound. All in all, Boris Johnson cares more about Boris Johnson and than about the UK's exit from the EU, and his colorful style may result in surprising rather than dogmatic moves. His entrance to the famous house in central London may mark the bottom in GBP/USD. This is a guest post from FXStreet, a leading provider of data, real time analysis and actionable tools for Forex traders.

BTC/USD has broken above the $8,250 level escaping the long-term bearish channel that had governed its movements since early 2018. Its teammates on the crypto podium have followed King Bitcoin up, but with worse performances. This characteristic of the rise means that the second condition that I pointed out in a previous article is not fulfilled. Let us review the requirements. The first was that BTC/USD exceeds $8,250. The second condition is that the ETH/BTC crypto cross goes into bullish mode, and that has not been accomplished yet. However, it may change in the next few days. ETH/BTC 4 Hours Chart The ETH/BTC is trading at the 0.03067 level, moving between the EMA50 and the SMA100. Trading between mobile lines generates sudden short travel movements. Above the current price, the first resistance level is at 0.0312 (upper parallel bullish trend line and EMA50), then the second resistance level awaits at 0.03161 (price congestion resistance). The third resistance level for ETH/BTC is at 0.0332 (upper parallel bullish trend line and price congestion resistance). Below the current price, the first support level is at 0.0301 (SMA100, price congestion support, and SMA200), then the second support level is 0.0298 (price congestion support). The third support level for ETH/BTC awaits at 0.0275 (price congestion support). The MACD on the four-hour chart shows a slightly bearish profile, although it can easily turn up and quickly enter the positive zone of the indicator. This is a misleading profile at the time of analysis. The DMI on the four-hour chart shows bears controlling the asset but with a downward profile. Bulls lose the ADX support, potentially complicating bullish development. BTC/USD Daily Chart BTC/USD is currently trading at $8,777 after hitting a relative high of $8.944. The Japanese daily candlestick chart is currently drawing a doji that jeopardizes the technical conquest if it ends the session with this figure. Above the current price, the first resistance level is at $8,780 (price congestion resistance), then the second resistance level is at $9,160(price congestion resistance). The third resistance level for the BTC/USD pair is at $9,700 (price congestion resistance). Below the current price, the first support level is at $8,400 (price congestion support), then the second support level is at $8,250 (price congestion support and upper trend line of the long term down channel). The third level of support is back into the bear channel at $8,000 (price congestion support). The MACD on the daily chart shows how after a bearish cross attempt, it bounced back and now takes advantage of the momentum to break out of the past bearish scenario. The next two days will mark the medium-term scenario. The DMI in the daily chart shows the bulls increasing the advantage against the bears but still far from surpassing the ADX line that would start a new bullish pattern. ETH/USD Daily Chart The ETH/USD is currently trading at $268.16 after yesterday's new high relative to the close. The next resistance level is further away at $290, and reaching it requires accumulating bullish strength. Above the current price, the first resistance level is at $290 (price congestion resistance), then the second resistance level is at $305(price congestion resistance). The third resistance level for ETH/USD is $318 (price congestion resistance). Below the current price, the first support level is $260 (price congestion support), then the second support level is $250 (price congestion support). The third level of support for ETH/USD is at $234(price congestion support). The MACD on the daily chart shows a bullish rebound after the first bearish cross attempt. It is not a very solid structure, so if it continues to rise, it will be in an overbought scenario. The DMI on the daily chart shows how bulls keep control of the situation and barely celebrate the new relative high. The bears, on the other hand, weaken and remain at the lows. XRP/USD Daily Chart XRP/USD is currently trading at the $0.41 price level after sitting a daily high at $0.42. At this hour it loses support for price congestion at$0.412 and hints at a possible downward turning Japanese candle figure. Above the current price, the first resistance level is $0.412 (price congestion resistance), then the second resistance level is $0.43(price congestion resistance). The third resistance level for the XRP/USD pair is $0.438 (price congestion resistance). Below the current price, the first support level is $0.39 (price congestion support), then the second support level is $0.37 (price congestion support). The third support level for the XRP/USD pair is $0.35 (EMA50). The MACD on the daily chart shows a small upward bounce after the first bearish cross attempt. As in the other cases, it may continue to rise, but in an overbought environment. The DMI on the daily chart shows the bulls reacting up and moving very close to the ADX line. If the D+ were above the ADX, we could easily see a bullish explosion. The bears continue to show weakness. This is a guest post from FXStreet, a leading provider of data, real time analysis and actionable tools for Forex traders.