What is Online CFD Trading App Used for

An online CFD trading app can be designed to do all kinds of things, so as to make trading tasks easier. An online CFD trading app is first and foremost an aiding tool, and does not substitute the trader. Trading the financial markets today, especially through trading CFD online requires accuracy. And achieving good accuracy is too time consuming to do. Especially through the use of per and paper or even simple calculators. This is because all data has to be handled manually, number by number. And this process is prone to making mistakes as well. A trading app on the other hand can be designed to get the numbers directly off the charts, in real time. And to run the formulas needed in real time, so the desired results are super-accurate and provided in real time. Commodity traders for example want to know how much a commodity moves due to supply and demand. And how much it moves due to fluctuations in the price of the US dollar. This can be done manually once a day, by multiplying yesterday’s commodity closing price with today’s US dollar movement number. This US dollar movement number is defined as (1-(today’s Dollar value / yesterday’s Dollar value)). And this number is multiplied with yesterday’s commodity price. And the result is how much the commodity price actually moved due to US Dollar alone. Then if the commodity in question is say crude oil, and it has moved $5 in a day, the trader needs to subtract the Dollar-related movement from the $5 move. What remains is how much crude oil moved by, exclusively due to supply and demand. It is problems as this one that CFD trading apps come to solve. Because they can do all this fast and accurately. In other cases, the CFD trader might want to figure out complex LSS pivots or stop loss placement information. Such information is not provided by charting software directly. But a good CFD trading app, designed for this purpose can get the raw data off the charts and get the job done. Apps may generate even CFD trading signals.

What is Online CFD Trading App
Figuring out supply and demand in commodities is always required. And a simple app can figure this out, right away, in real time, based on the movement of the US dollar.

An Online CFD Trading App for Safety

An online CFD trading app can also be used to run a more complex algorithm. For the purpose of handling open losing trades, through highly specialized hedging. This subject alone is a huge one, as traders believe that it is possible to deal with losing trades more efficiently through CFDs. And to eliminate all big losing trades. Hedging is very complex and requires extreme accuracy in identifying different kinds of risks. But in principle it should work. This goes above and beyond the content of the average online CFD course. And development of such apps requires a lot of work on the algorithm part. Not on the actual coding part, which all coders can do anyway. Such algorithms are developed by traders only.

Apps still Cannot Beat the Market

No online CFD course can fully cover the needs of actual trading. And no algorithm is smart enough to even come close to beating the markets. But key problems can be mitigated through the use of specialized apps. Finally there is no single app software capable of doing all the tasks required. Especially in the case of hedging open losing trades. Where complexity can be so overwhelming, that the actual app has to be designed for one market, and one trading style only.

Learning Basics of Forex Trading for Success

When new traders first begin learning the basics of forex trading tend to relate actual trading to their lives. And in fact, we all want to be successful and improve our lives through trading. And because each one of use is unique, will have a totally different and unique approach to handling actual trading. Some will take a lot of risk, while others will take a long path to success. The basics of forex trading make an impression in our minds as to how we should trade. Commodity currency traders for example see trading the USDCAD pair as a way to profit from crude oil price moves. They see a vindication in doing so. Out of hate for the global oil industry and for the premiums and proportionate taxes paid for fuel over many years. It’s a very personal issue, because we all pay painful taxes through the price of crude oil. So being able to predict the price of oil, and profit from it, is an amazing feeling of vindication. Other traders choose a currency to trade, based on politics and similar feelings. But also on their ability to dig deeper and understand what makes that currency move. And in so doing, they all pursue the best forex trading strategy possible. The one who will vindicate them best. Traders learn forex basics out of their desire to become profitable, but to also relate themselves to the global world.

The Basics of Forex Trading are Not So Basic after All

Traders can dig ever deeper into the complexity of the markets, and see how even simple concepts are not so simple after all. Complexity reveals so much more. And this makes the task of having to learn forex basics much more interesting. For example, traders would find it boring to learn about banking and interest rate policies. But if you as a new trader get into the inner workings of central banks. You will be able to assess the economic situation and anticipate when major rate decisions are bound to happen. And this matters to you as a forex trader because you stand to make a lot of money trading these events. Consider the decoupling of Swiss Franc from the Euro in early 2015. This event could have been anticipated and well timed by traders well versed in the basics. And the move was so profound on that day that entire fortunes were lost or won. But also less profound and more frequent events of similar nature occur in the markets. At least several times in a year. Since some currency pair is bound to be impacted by monetary policy.

Successful Basics of Forex Trading
Interest rate policy alone is a huge field of research, and even though it appears to be simple and straightforward, it is anything but simple. It is way too complex for most to handle. And the good thing is that great profitable opportunies are hidden in this complexity.

You are Part of the Financial System

You as a retail trader are small, and yet your trading does matter and is part of the global trading mechanism. You trading decisions will not change the world, but they can change your personal live through successful and original trading ideas. Once this has been done, you might in fact be able to change the world or at least make a noticeable difference. All by investing the profits in a new start up business, or idea that is just as original as your forex trading. It’s nice to remember that when you practice currency trading, and to know that you don’t have to exactly emulate other traders. It is possible to come up with forex trading so unique and so good, which will defy belief. And all these original ideas are based on the basic concepts of forex, which most other traders hastily overlook. Always remember that the basics of forex trading lead to unique new insights for predicting trends in currency pairs.

How to Learn Forex Basics Wisely

In order to learn forex basics wisely, traders should not rush and should identify the objectives. The purpose of learning these basics is to be able to see market movements and trades in greater depth. It’s not about passing exams, or impressing others. New traders should not make assumptions that other traders and mentors know all about the markets. Or that their knowledge cannot be challenged. It is very commons for traders and mentors who learned mechanically, to make mistakes. And to offer parts of false, ambiguous education in their teachings. So beginner traders should not be afraid to ask questions about obvious things. Because upon scrutiny even the obvious can get very complicated. And it’s not about knowing all the different foreign exchange currency symbols well. Nor is it about memorizing some ridiculous, often false theory for trading the market news. Productive learning is about challenging the teacher, and asking difficult questions. Because to learn forex basics wisely, one has to start questioning all established opinions. This will help you as a trader not fall into the trap of using false indicators. Indicators that are made available on charting software due to popular demand. But these indicators have not logic and no proof whatsoever that they actually work at all. For example, there is no evidence that Fibonacci theory works in trading. There is no evidence that trading volume works either, at least not in the classic sense. The classic idea is that rising trading volume is supportive of market trends, but there is another theory, which is just as successful, which works the other way around. Lazy learners can fall into false assumptions very easily and develop confirmation bias. This will make them fail later on, in live trading, because many indicators simply don’t work. In order for an indicator to really work, it has to pass the random chance test, and it must outperform the predictive power of a coin toss. If it doesn’t, then it’s not a good indicator. If confirmation bias takes over, then even flipping a coin will seem as a market indicator which works.

learn forex basics
Consumers buy mostly out of passion, and not because of need. They buy on emotion, then justify with all the logic they can find. Take car drivers of average cars for example, they have developed confirmation bias that premium (super) gas gives them more mileage over regular gas. And that’s because they don’t know the basics of fuels. Higher octane ratings have nothing more to offer them. And yet, a public opinion poll would tell you that there is a difference. And as a result you would waste few dollars at every fill up. But in forex trading you cannot afford to make the same mistake and follow public opinion polls, because it can cost many $1000’s. That’s why you need to know the basics, and challenge established opinion as and when necessary.

Learn Forex Basics and Question the Obvious

Traders can learn forex basics, everything from definitions to market structure. This will allow them, to choose more suitable currencies to trade, and to trade them with more confidence and less wishful thinking. The idea of trading online made easy is only possible through wise learning and hard preparation. Also reading some day trading forex live review reports and opinions, by real traders. These can help you evaluate various indicators and trading methods. Some of these traders are veterans, and will know a thing or two, about what worked for them and what didn’t. Especially those who traded actively, will definitely know which indicators and methods are good, and which ones are not so good. Wise traders, veterans and newer ones alike, are willing to accept that they were wrong, and change their opinion. Just as long as there is sufficient evidence. Educators on the other hand, are less likely to change their minds about a conviction they might have. They will simply argue that they had many satisfied students who are happy with their course and the concepts taught. But as always, public opinion does not constitute real evidence. Especially when someone pays a lot of money to attend a training course. The very act of paying all that money does create confirmation bias in their mind. As consumers, we all think we are smarter than the other person, and that our decisions are better, but this is not true. There is always a wiser person out there.

The Best Forex Trading Info Charts and Sources

Forex traders need various kinds of forex trading info sources. Some prefer fundamental analysis, while others prefer looking at the actual price charts alone. Some technical traders believe that price charts contain all latest fundamental information, so there is no need to bother with things like economic reports and the like. Day trading forex live does require using various charts. All the forex trading info the day trader needs, is expected to be found in a couple of charts of different time frame. Usually the hourly and daily charts will suffice for doing all the basic work, and figuring out the trend for the entire week. Traders who take day trading forex live very seriously will also use 10 minute or 15 minute charts to better gauge live momentum. Fundamentals however can act in complex ways. In ways which can be deceptive. Because fundamental data can have a double impact on the markets. Such as positive in the first week, and an overall negative impact over one month or longer. So the technical charts can in fact give false or partially false signals from time to time.

More Sources of Useful Forex Trading Info

Forex traders rely extensively on candlestick type charts. These are the most information-rich charts. Making sense of the candlestick patterns is confusing and difficult. But oftentimes a very clear signal will appear on candlesticks, which will not appear on other types of charts. So candlestick charts are the way to go. Traders who view their trading as a forex trading business opportunity keep on evaluating their information sources. There are many popular information sources, such as contrarian indicators and investment bank reports, which are not very reliable. Contrarian indicators work only once in a while. While various investment banks never seem to agree on the trend of a currency pair. All of these reports are used in trading. But traders need to be careful, since it’s a proven fact that these reports will often be wrong. If these reports were very reliable, then one could make millions trading on their advice alone… But just because an investment bank publishes a report, it doesn’t make them good forex forecasters. They are just as likely to be wrong, as any retail trader.

The best Forex Trading Info Sources
Being selective in chosing your information sources is absolutely important. And it’s about being selective on your own judgment, based on your logic and the feedback provided by the few who know best. Not based on the feedabck left by the 1000s who themselves are not selective and realistic.

Profitable Forex Traders are Selective

Profitable forex traders are wise and selective. They won’t place a trade unless they understand at least to some extent what made market price move. Whereas traders who trade on rumors and media stories are simply momentum followers. And this kind of short lived momentum is suicidal to follow. Because it leads to to many losing trades. And not only that, but it also doesn’t teach the trader anything useful, so as to improve their judgment. Any information source that doesn’t sharpen your judgment on the markets, should not be used at all. Unfortunately, many day trading forex live review reports are full of positive comments about such counterproductive information sources. What really matters in evaluating these reports, before you even think about reading them. Is who provided the feedback. The feedback left by 5 real, large size traders is way better than the feedback of 1000 traders who trade randomly here and there. So selectivity goes a long way in evaluating forex trading info sources. And selectivity eventually pays.