Whether you’re an experienced trader or new to the markets, you have definitely encountered many instances where emotion and psychology influenced your decisions, causing you to behave in unpredictable or irrational ways.
The main categories that these behaviours fall into, are the following:
Most traders are looking for a decent signals service. Why? Because traders want ready things. They don’t have the time, they don’t have the knowledge, they don’t have the self-esteem to decide for themselves. There’s something more though: traders love the blame game, they want someone to blame (who’s probably not themselves) for their losses.
What is Day Trading?
There is no absolute definition of what day trading is, however it can be described as the buying and selling of a single security within the same trading day. All trading positions are closed out prior to the end of the specific trading day and as such there is no overnight risk to consider.
Long-term investing, on the other hand, involves analyzing the performance of many instruments and choosing the ones that appear to have the best potential. A long-term investor expects to hold an instrument for at least a week and must be confident of the instrument’s ultimate value so as to be able to tolerate interim periods of both lows and highs.
Many amateur and part-time traders dream of a life of a full time professional trader, a life full of joy and luxury. Is the life of a full-time trader really so amazing and fascinating?
What does it take to become a professional trader? We are trying to approach these questions, showing and revealing the life of a professional trader behind the curtain.
In all online ventures, content is the king & the trading business is no exception.
For the majority of broker & traders educational & high-quality content is very crucial for a long term relationship. Especially the novice trader needs a lot of education & mentoring in order to reach a level of possible success, which will cement his/her relationship with the broker.
Machine learning (ML) is one of the most promising areas of innovation that companies from all sectors are recently seeking to explore. Companies ranging from the manufacturing sector to the robotics and mechanical engineering sector are increasingly using Artificial Intelligence (AI) and ML.
Beyond that, the AI concept has extended its impact to the financial markets through machine learning. Over the last two decades, markets have become more dynamic and trading using ML algorithms is seemingly taking over from the traditional exchange-based trading. Hedge fund managers and traders alike are now focusing on developing programs that assist their daily trading business in an effort to increase returns.
Starting with the brokers side, in order to maximize returns , brokers must find ways to increase the so called Customer LifeTime Value , which means that they need happy & successful traders in the longrun.
Technical analysis vs Fundamental analysis
There are two possible methods for analyzing markets in order to make decisions regarding trading: technical analysis and fundamental analysis.
Fundamental analysis focuses in spotting economical, social and political news & factors that may affect the price of a currency pair, a stock, an index etc. Analysts always try to find a fair price for a tradeable asset so they can investigate trading opportunities.
Technical analysis is a trading tool for spotting trading opportunities too but it is based on statistical analysis of charts and assets such as the price, the volume, the volatility etc. A basic technical analysis principle is that the market movements are not random and that somehow the past markets behaviour repeats itself in the future. Technical analysis has a series of tools such as technical indicators & oscillators, price action, patterns etc
Although fundamental analysis looks more simple and familiar, it has two very important disadvantages though:
Nowadays, many perceive trading as a path to get rich quickly and live a wealthy life, but most of the times this is not the case!
However, it is also true that trading for a living unveils significant financial opportunities – you can make your dream house or luxury car a reality.
But such achievements will only be realized through carefully designed strategies, emotional resilience and, of course, a lot of time and effort.
You should love the job to be successful, and you have to go into trading only when you know what you are going to encounter, and if you are ready to follow some rules that more experienced traders are following:
Electronic trading platforms invade into traders lives more and more in the last years. A trader is able to trade thousands of markets all over the world from his laptop or his mobile phone. It’s very easy to open/close positions, to have configurable charts, to put technical analysis indicators and many other actions that only professional traders, banks or funds were able to do just a few years ago.
There’s something more important though, something that many retail traders don’t know even if it exists or they have a limited comprehension on it: automation
