Thursday, October 16, 2014
How Volatility Affect Investment Returns?
Volatility is one of the most noticeable characteristic of any financial market. Actually, volatility is one of the main factors which determine the profitability and popularity of an instrument or a market. It is defined as the deviation or dispersion of the price of a product or value of an index from the mean value. Volatility is usually measured using standard deviation. The value changes of the instrument or index is grouped and plotted using moving average. The standard deviation is small when there is low volatility and is large when there is high volatility.
Intraday price volatility affect short term traders and scalpers and long-term price volatility affects position traders and investors. Researches shows that volatility affects market performance. Generally, in rising markets have relatively low volatility and declining markets have higher volatility. Volatility is also directly proportional to risk. The overall return from the market also declines when the market is volatile.
The fact that price volatility is influenced by lot of factors in addition to the supply-demand. Some common factors include interest rate changes, oil price changes, inflation trends, industry or company or market performance reports, and economic policy changes.
This blog is published for Orient Financial Brokerage Services
, the leading UAE based online forex, CFD, Gold and Commodity broker with a range of investment account features
for middle-east traders.
Labels: Commodity trading, financial market, forex trading, investment return, market return, price volatility, stock trading, trading volatility, volatile market, volatility
Tuesday, September 16, 2014
Why Forex Trading is a Good Profession?
Forex market the world's biggest financial market where trillions of dollar worth transactions took place in one day. It is also one of the favorite professions for new graduates and capital market players. There are many things which makes forex trading a good profession.
- There are still room for players: unlike other capital markets, world forex market is not much exploited by retail traders. Only a small portion of trades are carried out by retail traders. The volume of individual players is also much less than the banking counterpart.
- World currency market is one of the most liquid and diversified market. Careful placing of traders can help traders to overcome almost all financial disasters including inflation, low economic growth, oil or commodity price changes, etc. Moreover currency market do not show any significant co-relation to any other markets.
- When compared to trading other financial instruments, forex trading has much related rules and requirements. Usually the traders are straight forward and the trading platform is free. There are no short-sale limits, market regulators or specific trading hours.
- Unlike trading other financial instruments beginner forex traders have very vast resources to learn trading. There are lots of online forums and communities available, many sites provide free and paid market analysis and the free software trails help to test the trading strategies.
Although easier than most financial instruments trading, forex trading does not guarantee any better returns. The success depends on trader’s ability, trading strategies and many related things.
This blog is published for Orient Financial Brokers
, a popular online forex trading brokerage
firm in Dubai, UAE.
Labels: currency market, currency trading, forex, forex advantages, forex benefits, forex broker, Forex market, forex profession, forex profit, forex trading
Monday, August 18, 2014
Forex Trading Technical Analysis: Types of Price Patterns
Technical analysis of price changes is a very important trading strategy. Finding and interpreting trends, trend changes and patterns help traders to profit in different market situations; and also help in minimizing trading risks. Trendlines
are the building blocks of most chart patterns; or are used to interpret the patterns. These are lines connecting the dots on a graph. Theses dots can be price heights, price lows, average price values or closing values. Generally trendlines are drawn connecting dots of similar types; for example daily highest price for a currency pair. Most of these lines are liner with slop to either left or right. But some trendlines can be curved in shape. Simply an uptrend occurs when the trendline connects lower dots to higher dots and downtrend occurs when the reverse happens. A consolidation occurs when the trendlines are horizontal or parallel.
Knowledge of trend patterns
is one of the key features of a successful trader. There are mainly two types of price patterns; continuation patterns and reversal patterns. When the existing trend halt for some time but then resumes its original trend, then the pattern is a continuation
pattern. Examples for continuation patterns include flags, wedges and pennants. Reversal
patterns occur when the existing trend halts and then goes the opposite direction. Examples include double bottoms, double tops and head and shoulders.
This blog is published for Orient Financial Brokers, the prominent Online Currency Trading broker
in UAE offering live forex trading accounts
for traders from Middle East countries.
Labels: chart patterns, continuation patterns, forex, forex indicators, forex patterns, forex trader, forex trading, patterns, price patterns, reversal patterns, technical analysis, trendline, trendlines
Thursday, July 17, 2014
Top 10 Advantages of Automated Forex Trading
Below are some of the benefits of using automated forex trading systems.
- Trades can be carried out any time; even when the trader is sleeping.
- Not much trader learning and training is required for carrying out profitable trades.
- Can find more trading opportunities than a hum trader and can perform multiple product, currency pair or market trades simultaneously or in short succession.
- Can remove human emotion and guesswork from analysis and trade executions.
- Automated forex systems are very good in technical analysis and are loaded with a range of indicators and analysis tools. So decision making is sound and effective.
- Advanced risk management tools ensure minimum loss to open positions.
- With modern automated systems, it is easy to experiment with new trading strategies. This enhanced trader’s knowledge.
- The customizable features of automated systems ensure personalization according to trader investment strategies and trading goals.
- They support complex trading strategies that include multiple products or markets.
- Trading and accounting the trades are easy; also evaluation of performance is very easy.
Labels: auto forex, auto forex software, automated forex, automated trading, automated trading software, automated trading system, forex trading, FOREX Trading Software, forex trading system, programmed trading
Wednesday, June 25, 2014
Advantages Only a Forex Trader Enjoys
Thanks for the lack of centralized exchanges and regulatory bodies, forex traders definitely enjoys much more freedom in trading than stock, options, futures and fund traders. Most of these privileges are only available in the world forex market. Some of the most important advantages are given below.
- There is no difference in going short or long. Every trade is shorting a currency and going long on another. Hence no uptick or similar rules are applicable.
- Traders can adopt any style they prefer; can practice any strategy on minute, hourly or weekly charts.
- Customizable leverage options allow traders to trade both aggressive and conservative based on their trading strategy, market performance and trading goal.
- Automated margin calls lock the loss to the money you put in.
- There are no trading commissions hence the loss or gain of every trade can be accounted as traders profit or loss. Also when trading high interest rate difference currencies, traders can receive interest on daily basis.
- The market stays very liquid round the clock. And there is a great information flow; traders can enjoy real-time news, charts, research and analysis usually for free.
Labels: forex, forex advantage, forex advantages, forex benefit, forex broker, forex dubai, forex trader, forex trading, forex uae, trader advantages