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Using a Forex Calculator to Profit and Increase Your Trading Success

Using a forex calculator to profit wisely, it’s about assessing data and seeing patterns no one else can see. Patterns visual chart inspection cannot reveal.

A Forex Calculator to Profit from Hidden Patterns

Using a forex calculator to profit from hidden market patterns is not a new thing. Many strategies rely on this concept, because visual chart analysis is not enough. Every market, every foreign exchange currency rate is continuously changing. A market may be overvalued or undervalued at specific times, offering possibilities for arbitrage trading. Or simply for getting a better entry price. By doing numerical analysis on certain parameters traders can figure out profit margins as well as other data. Data that can be used in more advanced probability analysis. But as far as getting a better price, simple numerical analysis can get the job done. This is why traders use calculator spreadsheets and apps in assessing market conditions. Forex trading platforms come in with basic calculator tools, LSS pivot tools and more. But the more advanced tools are usually developed by traders themselves and are first tested on a spreadsheet. Because there is a long learning curve where by error and trial, and fine tuning, adjustments to formulas are made. Arbitrage and hedging traders are bothered with valuations, especially in carry trade strategies where the complexity is enormous. But so is the earning potential too. Because in the carry trade strategy one has to calculate pip value, interest rate margins, and hedging protection all at the same time. Complexity is phenomenal, and yet calculators come to the rescue. Since they can do all routine calculations fast and accurately.

A Forex Calculator to Profit through Hidden Global Opportunity

A forex calculator to profit from factors such as interest rates and price asymmetries is exactly what carry traders are after. How they do it remains a mystery. But basically it is possible because global markets are not 100% efficient. There are profitable patterns that are either unexploited or simply being exploited by small individual traders, so the margins never cease to exist. No forex trading strategy is as impressive as the carry trade, because the level of complexity is so great. So great that a small retail trader can actually out-think even large hedge funds and investment banks. This is because single minded people are more productive in their thinking than teams of people working in highly procedural environments. And it’s no wonder, since all great math breakthroughs come from single individuals and not from teams of people. More specifically, complex math problems are impossible to break down to smaller sub problems, so that many people could solve them. As a result, the greatest carry trade strategies remain a mystery, but they do exist. And their creators use calculators utilizing mathematical formulas. This is how they are able to hedge market risk in carry trades. In ways that we can only dream about. And while we all want to learn how to trade forex better and more profitably, the nagging thought remains. The thought that visual chart analysis alone is not enough to really see the markets.Global opportunity is hard to define, because it spills from one market onto another. From stocks to bonds, from currencies to commodities and so on…

The Basics of Forex Trading Broken Down for Beginners

The essential basics of forex trading boil down to understanding things such leverage, swap rates and pip value. These are important for trading accurately.

Accurate Trading through the Basics of Forex Trading

In many trading strategies, beginners fail to measure risk and overall exposure to the market. Because they don’t know the basics of forex trading. In order for someone to refine a trading methodology and look for ways to mitigate risk. They should know these few basics well, and beyond basic definition. The concepts of interest rates, and pip value alone are so important in every carry trade. But also still important in day to day hedging trades. Using a forex calculator leverage and pip value can be calculated accurately and fast. Traders unaware of these definitions will sooner or later suffer from some big losing trade, due to inevitable miscalculation of risk. And equally, on the winning side, good hidden trades await those who understand markets in greater depth. If you take things further and start studying probability patterns. You can combine the inner workings of the forex market with probability based methods. And you could adjust your trading size according to that probability number, in every trade. Probability is based on volatility and market indicators. But it’s all basic definitions. Everything starts at a basic level. The average trading online course will introduce you to these definitions. But traders need to gradually take things further, one variable at a time.

Beyond the Obvious Basics of Forex Trading

Beyond the usual basics of forex trading there is a lot traders can do, to gain an edge. Once you understand the basics. And also what is forex broker liquidity and what is forex trader objectivity. You can start experimenting with your variables, to see how it could benefit your trading. Volatility, trade size and pip size are just 3 such variables. Whereas there are also derivative-variables when you take a closer look. And good profitable trades can be made possible through such analysis. Where a subtle small change in one variable, can result in asymmetric risk-reward figures. So it is wise to pay attention to the small and not so obvious. Rather to the obvious and the easy. Take scalping trading for example. Volatility studies, and LSS pivot analysis can help you develop an amazingly accurate scalping day selection system. And the forex market’s inner workings will show you which pair is best for trading this way. The whole scalping concept is severely overlooked by most traders. It’s not even visible on the daily charts. That’s why most traders don’t even suspect there’s a profit margin there. Everybody wants to catch the next 300 pip daily move. Because that’s the obvious profit margin. And yet, probability favors the not so obvious trading systems. Where profit margins are determined by small changes and asymmetries in basic variables, and their derivative variables.

The Importance of Reading and Understanding CFD Trading News

CFD Trading News Does Matter when Markets are Volatile. News is not the cause of market movements, but rather the triggering cause. These conditions matter!

CFD Trading News Can Trigger Major Day to Day Movements

CFD trading news, though little understood by all the traders and analysts, is useful from time to time. The news itself is an indicator of volatility. And in already volatile market conditions, it can be used to refine market timing. Simply by regarding the news as the triggering cause of these market price moves. No CFD trading system is ever complete without risk and volatility analysis. And news can be used to confirm apparent volatility. In order to better anticipate what’s coming next. CFD traders who know their markets well, especially commodity CFD traders, do use news. The secret is in not getting carried away and biased because of the new. Because the market can discount, or price in news, much faster than any trader can. So the old adage of buy the rumor, sell on the news… it’s definitely true. Wise CFD traders attempt to see how the market collectively will react to news. And if a news trigger is enough to unleash momentum in price. And as the market moves beyond critical stop loss levels, more and more traders will change direction. And the market may continue to move in the direction of the original momentum. For as long as several days at a time.

CFD Trading News in Commodities

CFD traders know their commodities and other related markets. CFD trading news is bound to shake their exposure to the markets, and that’s why technical calculation of risk is never enough. The market simply defies technical support and resistance in a confusing way. And tight stops fail miserably to maintain a good overall risk-reward figure. Wise traders know their markets and simply get around this problem by looking into longer term direction. And by utilizing large stop loss orders, so large as to embrace the higher volatility. Foreign exchange currency trading online for beginners tends to teach the exact opposite. And this is why new traders misunderstand risk management right from the beginning. The very act of using tight stops, is a recipe for total failure, especially during high volatility. Tight stops simply don’t work, period. And anybody who is afraid of embracing market risk, is not a candidate for becoming a profitable trader. Volatility and surprise moves are what make markets interesting, so risky, and eventually so profitable.

Market Risk Redefined

Market risk as seen through volatility and the news is still hard to measure and put to good use. Wise CFD traders go a step further by first identifying fundamental direction. Which may or may not be triggered by the news in the coming several days. And then, they are willing to trade either direction, or even both. They are essentially ready to make trades against their own fundamental analysis. Because if the trend is not triggered by the news, all kinds of counter moves are to be expected. And far more often than not, this is actually the case. Fundamental analysis gets right the direction, but its timing is horrible.

How Your CFD Trading System Can Affect Your Profits

Your CFD trading system can enhance the profitability of existing strategies. The superior performance of CFDs makes this possible through better filling price.

Your CFD Trading System is More than it Seems

Your CFD trading system enables you to trade in the most efficient way possible. So much so, that non-CFD retail traders are actually at disadvantage. Most online CFD brokers facilitate this kind of enhanced trading. And the benefits are often not presented well in CFD seminars. As many educators focus too much on leverage, ease of access to markets etc. But the real hidden benefits of CFDs, are enhanced liquidity and linear pricing. Both of these advantages are unique to CFDs, and not found in all other retail trading instruments. Futures and option traders for example suffer from non linear pricing. As these instruments don’t always follow the underlying market. And because markets are fast moving, linear instrument pricing can make all the difference between profit and loss. Wise CFD traders actually do use futures and options merely as indicators, exactly because of their non linear pricing. As this sometimes indicates how smart money is placed in the market. The actual market moves however are traded much better only through CFDs. And any experienced trader will confirm this.

Your CFD Trading System Determines Your Profits

Your CFD trading system determines your profitability in various ways, which are not obvious. CFD trading systems for example, that apply risk control methods, do make more money. Since many losing trades are temporarily hedged. Thereby saving the trader the trouble of unnecessary stop running and impulsive trading actions. Most CFD trading platforms actually allow you to hedge CFD open trades, through the same market directly. Hedging is a temporary way to by-pass high risk times in the markets. The end result is much higher profitability in your trading strategy. Classic stop loss orders, especially those based on low risk-reward ratios, do not really work. Traders should avoid low risk-reward ratios altogether, because they are only a fantasy in the minds of some idealists. When these idealists get down from their ivory towers and trade in the real world, the truth appears. And the truth is that low risk-reward ratios have a very low probability of success. First they fail to secure sufficient exposure to volatile markets. And secondly, when a trade does go well, the profit should not be limited by the margin that such a ratio dictates. The ratio may indicate a desired 20 point profit, but the market may stand to offer 50 points. So low risk-reward ratios are total nonsense in real world trading.

You Can Do Better than Others

Your CFD trading system needs to take full advantage of the real hidden benefits of CFDs. And to apply the whole concept on any good trading strategy. Even a marginally profitable strategy may be improved beyond recognition, through wise CFD trading. Classic stock investors are also turning to CFDs, as a way to hedge downside risk cost effectively. But even this long term investing can be improved more. All it takes is a good analytical mind to quantify risk against time. In this case, the idea is to always keep the actual shares of the underlying stock. And then trade in both directions as stock price fluctuates through different levels and chart patterns.

Decided to Trade Forex Online? Good Decision, Here’s Why

You can actually trade forex online better than most other traders, and better than your mentor. Because real success lies in being original and more creative.

Just Decided to Trade Forex Online? Act Differently

If you just decided to trade forex online, be careful not to follow generic trading tips. Many educators and forex gurus give generic tips and advice. Which finally leads to confusion and failure. Educators have to do this to make it easier on the average student to trade. Through greater comfort and tolerance of risk. But there’s no need to settle for average education and nonsensical tips. Because these, even when applied in exact detail, still fail. They have inherent ambiguities and limitations, which ultimately limit how profitable your trading can be. You can learn forex trading through critical thinking, and not through total faith in your mentor. The good news is that you will able to outperform many so called disciplined traders, because those are held back by their faith in perfect order. In their minds, it’s as if someone else has done all the work for them, and they simply execute a proven trading plan. Except there is a problem, there’s no such thing as proven in trading. Unless it’s well tested over 3 or more years. And it’s unlikely that the course in question lasts this long. By learning to be critical and to doubt established opinion, you will more often than not, beat the market. And this requires breaking some of the rules of classic trading. That is the real way to developing the best forex trading strategy.

How to Trade Forex Online and Be Profitable from Day One

You could trade forex online and be profitable right away, or at least not have big losers. This could be done through reason and sharp judgment. First you have to avoid chasing the news and expecting to figure out market direction through the news. Second, you should trade only during very active, and least active trading hours. Utilizing a different method in each case. Be willing to hedge losing trades for a while, rather than trying to decide there and then what to do. Judging an open losing trade under time pressure simply doesn’t work. Open trades can be evaluated with remarkable accuracy, over several hours. Simply lock the open loss through a hedging CFD trade, and take all the time you like to make your decision. Some probability concepts will come in handy here, and make you judge more clearly. This means, that you might actually have a possible winning open trade in your hands, even though it is currently losing. Or you may have a doomed trade, about to become a loser, even though it is currently profitable. And this means, you will have to add to losing trades accordingly. Thereby breaking the naive classic trading rule, which defines good and bad trades based on market noise and nonsense. You will learn how to trade forex so much better than those naive new traders. And you will never have regrets about it.

Why Generic Strategies Don’t Work

The global forex currency converter mechanism simply doesn’t obey the naive approach of classic trading. Contrary to what you will hear here and there, it is actually much better to hold open trades overnight, and to actually trade foreign currencies at night. In fact, there’s no much difference between night and day. If one exchange is opening in Asia, another is closing in New York, trading never stops. And the risk is not defined by day and night. You can be successful in active hours trading, just like you can be successful in quiet trading hours. Only the strategy differs.

How the Use of a CFD Trading App Can Improve Your Trading Strategy

A CFD trading app can be used to perform tricky and time consuming calculations. Especially ones dealing with probabilities and avoidance of excessive risk.

A CFD Trading App is Most Useful in Fast Trading

A CFD trading app can be used to constantly calculate market risk. Risk as defined in your strategy. The running result of the formula used, indicates market risk at that particular time. Based on your trade criteria. And because CFDs are used, the trader can enhance risk management through the use of temporary hedging. Wise CFD traders pay developers to create such apps, of course they go to great lengths to conceal the concept even from the developers themselves. They do this by splitting the formula in two, and employing two different developers to do the job. So it is in fact two different apps, and neither one is very useful on its own. But the two apps together provide that critical probability number. Moreover, successful trading starts by the elimination of market risk. And not by looking for profitable trades right away. It’s not so much about trading online made easy and effortlessly. It is partially about automating routine tasks, but more importantly about achieving accuracy in the calculations.

What a CFD Trading App Can Do

A CFD trading app can work through the numbers and see things that cannot be detected visually on the charts. No matter how good you think you are at visually observing patterns, you can never work this fast in real time. Moreover, probability tends to work in an exponential way. So that small factors can have a huge impact on the net result. Most people are oblivious to the power of mathematics and probability theory. Because they think it’s too abstract and kind of useless in real trading. But in fact, everything in nature is mathematical, and markets are part of nature. People who are ignorant of probability theory tend to have poor judgment and to fall victims to scams, misleading marketing etc. Probability theory is very powerful, but it was practically useless to the average person, prior to the advent of affordable computing power. Today, there’s no excuse, a good probability theory can do all kinds of things. And many trading mistakes can be avoided through probability analysis. All that is needed is the right formulation and developing the app, without giving away the secret.

Look for Guidance from Scientists, Not Traders

Online CFD brokers provide all the infrastructure to start trading. You can have affordable access, like everybody else, but that offers you no edge. The real edge finally comes from working with probabilities and learning how probability is used today to analyze risk. Law enforcement for example does use probability software to catch criminals. All by assessing where a criminal is likely to be, and the routes and hours the criminal is likely to choose to move through. And it does work very well. Because there are limitations in how a criminal can move around. Similarly, there are limitations in how market price can move through time. And different factors of varying relevancy are in control every day.