Importance Of Stock’s Trade Volume

The importance of stock trade volume is full of visual content and will give you an idea about the stock market and how to view volume. After reviewing this infographic blog and if you are still interested in learning more about stock trading. You can download our free trading ebook, book a free 15-minute consultation with one of our trading mentors, or take an upcoming live stock trading course.

Importance Of Stock Trade Volume

If you enjoyed reading this guide on the importance of stock trading volume, and want to learn about stock trading download our free trading ebook, book a free 15-minute consultation with one of our trading mentors, or take an upcoming live stock trading course.

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Buying and Selling Forex Using RSI: A Guide

A trader raising their hands after a successful trade.

RSI, or the relative strength index is a price momentum indicator that belongs to the same family as stochastic oscillators and MACD. Similar to other indicators, RSI can be projected on a different graph in line with price and can have an oscillator range from0-100.

Traders use the RSI for identifying oversold and overbought market conditions, which helps them determine entry and exit points. However, identifying these conditions using the RSI can be challenging for a new trader. The best forex trading mentors at Trading Mentor can help you realize how the indicator can best benefit your trading decisions.

Let’s discuss some important things about RSI to help you formulate forex buying and selling strategies.

RSI For Identifying Overbought Market Conditions

The RSI provides several overbought and oversold market signals that can be read in the context of the indicators. Traders who use RSI can spot opportunities in overbought conditions. The overbought conditions are instances where forex pairs are greater than 80 RSI.

The price for these pairs can be adjusted artificially based on consumer demand for the trade position. This means if the demand dies, prices will drop. However, traders should consider other factors that can contribute to price movements. These include economic and political turmoil, global developments, and more.

RSI For Identifying Oversold Market Conditions

Similar to overbought conditions, the RSI can also pinpoint oversold conditions, leading to a price correction. In a majority of the cases, the level of RSI indicates the oversold conditions that are marked at 20. Certain traders can also decide to adjust this based on their trading goals and strategies.

However, appropriately adjusting the RSI for oversold conditions requires trade experience, and new traders may find this challenging. Trading Mentor’s best forex mentors will help you determine the best adjustments for oversold market conditions to minimize trade losses.

What’s more, similar to the overbought conditions, the oversold forex pairs are the ones that can see price drops below market values because of the extensive movement. These conditions can also present several openings to traders in discount positions. Traders can make quick profits from the swing trading once RSI and prices return to normal. They can also develop forex strategies that rely on several data points when determining a value for the trade position.

A person checking forex rates on their smartphone.

Learn More About Forex Buying and Selling from The Best Online Trading Mentors!

If you’re looking to make more profitable trade decisions, Trading Mentor offers an online mentoring platform where you can learn and improve. Our forex, crypto, and stock trading courses for beginners are designed to help new traders realize various complexities of the forex market to capitalize on them. Contact us today and get to know our professional mentors.

Everything You Need to Know About Forex Target Trading

A person checking prices for stocks.

Forex target trading is a popular trading strategy that can help traders identify market trends and anticipate price shifts. You can use the information from target trading to establish targets, profit-making points, and exit points based on your position.

New traders may face challenges finding these critical points, so it’s advised that they take help from the best forex trading mentors at Trading Mentor. By timely identifying the target trading opportunities, traders can generate more income and improve their financial portfolio.

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Understanding Currency Pair Sentiment

A person checking their forex trades on their phone and laptop.

To consistently make a profit in the forex market, you need a trading strategy, certain technical indicators, economic calendars, and opportunities. Because forex trading is highly speculative, the sentiments of the overall market can be significant for the estimation of specific currency pairs.

However, as a new trader in the forex market, you’ll need to realize certain things to make profitable decisions based on these currency pairs. With the help of our best forex trading mentors, you can learn to trade in currency pairs that would net you greater profits and help you achieve your trading goals.

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3 Things to Know About Leveraged Forex Trading

Leveraged trading uses borrowed capital to invest it in a stock, currency, or security. The concept of leveraging is quite common when it comes to forex trading. Investors can trade in larger positions in a certain currency by borrowing money from a broker. This results in returns from favorable and profitable currency exchange rates.

However, some of the best forex mentors suggest that this concept is a double-edged sword because you can lose your capital investment if you fail to use any risk management strategy or manage the leverage. Let’s discuss some important things about leveraged forex trading to give you a better idea about the concept.

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Top 3 Forex Technical Indicators Traders Should Know

A person using a trading platform on their smartphone.

Forex technical indicators are considered crucial for trading successfully in the market.Various indicators are being used daily that help traders realize the right moment for buying or selling forex. If you’re a new trader, the best forex mentorsat Trading Mentor will help you understand how you can use these technical indicators to your advantage and make profitable decisions.

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How Much Trading Capital Do You Need for Forex?

 Different currencies

Before trading in any trading market, it’s essential to evaluate how much capital will it require. Since forex is a short-term trading market, it doesn’t require heavy investments to generate lucrative profits. However, if you have too little in your account, it can add to the risks of trading forex. A small trading account can be wiped clean in case there are some unpredicted movements in the market. That’s why you need to figure out how much money you should invest to prevent any unexpected losses.

Factors That Influence The Trading Capital

The Broker

Brokers offer a trading platform to individual traders and each of them has its own terms and conditions, which may require you to pay certain fees. Besides that, you also need to abide by their minimum capital requirements. Some only ask for $5 while others may require more.

Account Type

The type of account also dictates the amount of capital you need. If you use a micro account with a 0.01 lot size, you’ll need the money to be equivalent to 0.1 units of currency. If you have a dollar account, then the minimum you need is $5, but you should have at least $50 to trade comfortably. On the other hand, you’ll need currency equivalent to 1 unit to begin trading in a standard account.

Leverage

Leverage allows traders to open trades that are worth more than the actual amount of money in their accounts. In short, the traders borrow some money from the broker. But you need to pay the broker a percentage if you use leverage. So if you use a small leverage, you’ll need more money in your account.

Amount Of Lot Size

Lot sizes directly affect the free margin in an account. For micro accounts, lots translate into a smaller used margin, but for standard accounts, the used margin is relatively high.

Trading Strategy

The trading strategy also affects the amount of capital you need in your account. If you plan on short-term trading, then you won’t need a lot of money, but for long-term trading accounts, you should have a substantial amount in your account to lower trading risks.

 

Forex trading charts

How Much Trading Capital Should You Have?

For new traders, it’s recommended to have at least $2,500 in your account to allow easy trading, but that doesn’t mean you can’t trade with a lower amount. It would just mean that the account would have higher risks. For scalpers, $10,000 is the minimum amount you should have. However, if you’re planning on long-term trading, you’ll need at least $20,000. You’re more likely to get higher profits with higher capital for long-term trading.

If you’re interested in learning more about forex trading from trading experts, check out Trading Mentor. It’s an online mentoring platform for people interested in forex or stock trading. Our website allows users to hire trading mentors based on their experience, nationality, and rating.

Besides that, we also offer online trading courses for beginners. So what are you waiting for? Pick a mentor and get a free consultation call.

5 Reasons To Invest In Forex In 2022

Foreign currencies

Forex trading has really taken off in the last few years, and many new traders prefer it over stock trading. This has made the market the most highly traded market that’s outperforming stocks and shares. The main reason for the popularity are the easy-to-access platforms that make it easier for traders to trade online. Here are a couple of more reasons you should consider investing in forex trading.

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A Comprehensive Beginners Guide to Forex Trading

A smartphone showing exchange rates.

Forex is a combination of foreign exchange and currency. The process of exchanging forex is changing one currency into another for several reasons, including tourism, commerce, trading, etc. According to the Bank of International Settlements’triennial report from back in 2019, the trading volume for forex reached around $6.6 trillion in April of 2019.

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What is Forex Trading, and How Does It Work?

It’s unlikely that you haven’t heard about forex trading. Forex trading has been booming exponentially over the past decade or two. Today, you’re likely to find advertisements for forex trading applications, courses, and similar things all over the internet. But that wasn’t always the case. Governments, banks, and financial institutions have been trading foreign currencies for a long time. However, forex trading wasn’t accessible for non-institutional traders for the longest time. But technological advancements and the internet have changed that. 

The foreign exchange market is the most valuable and liquid financial market worldwide, dwarfing other financial markets like stocks, commodities, metals, etc. According to BIS, forex markets had a daily turnover of over $6.6 trillion in 2019. 

Considering how valuable the forex market is, it’s no surprise that many people gravitate towards forex trading. However, before delving into forex trading, consider learning more about how forex trading works to ensure you don’t incur avoidable losses.

What is Forex Trading?

Forex is a portmanteau of foreign currency and exchange. Forex trading refers to buying, selling, and exchanging one currency for another. People often need foreign currencies for different reasons, including tourism, business, etc. Let’s assume you’re a US citizen vacationing in Greece. You’ll likely need Euros to buy goods and services while touring Greece. Likewise, if you’re dealing with a Chinese corporation, you might need to purchase Chinese Yuan to pay for their goods and services. Hence, exchanging foreign currencies is crucial for most individuals and businesses.

How Does Forex Trading Work?

Forex traders exchange foreign currencies to profit from price fluctuations or interest rate differentials. Typically, forex trading works through currency pairs. Forex traders buy and sell currency pairs to generate returns. So, what are currency pairs?

Currency pairs measure one currency’s value against another. Currencies have exchange rates that determine their terms and position against another currency. For instance, the Euro to US Dollar is currently trading at $1.12. That means if you wanted to purchase the 1 Euro on the forex market, you would need to pay $1.12 for it. 

You’ll be interested to know over 170 currencies exist on the forex market. However, statistics show the seven most popular currency pairs account for approximately 68 percent of forex trading volume. Typically, the most popular currency pairs include the US dollar because of its ubiquity and global acceptance; and the Euro because of its collective strength stemming from the EU and EEA. 

Forex has some distinct features that make it unique compared to other asset classes like stocks, indices, and commodities. Traders can profit from forex trading in two ways, including through exchange rate changes and interest rate differentials. Traders profiting from exchange rate differentials will purchase a currency with a higher exchange rate and short the currency with a lower exchange rate. A notable example of traders benefitting from exchange rate differentials is when they would short the Japanese Yen for the British Pound Sterling before the 2008 financial crisis. Currency exchange rates primarily vary based on the market forces of supply and demand.

Get Started in Forex Trading with Trading Mentor

Trading Mentor is one of the best online mentoring platforms around. The website numerous online trading training courses, making it the best trading platform for beginners.

If you’re looking for the perfect trading mentor to help you with your stock, forex, or crypto trades, consider checking out our website today.