How the Olympics Affect the Economy and Your Forex Trading

The Olympic Games impact the economy as well as the reputation of the host country. If the perceived risk improves, online forex trading volatility goes down.

Online Forex Trading Takes Regional Investment Risk into Account

Online forex trading performs a reality check on all currencies. And risky economies tends to have more volatile currencies. The Olympics help the host country by stimulating the domestic economy in the medium term. But more significantly by improving the image of the country in the long term. Hosting successful Olympics proves that the country in question is safe to visit, safe from terrorists attacks, crime etc. And this improves popularity among tourists who want to visit the country later. As far as investors are concerned, they also see stability and safety as a huge advantage and they may consider investing in that country. The fact is that market risk, as perceived by the financial markets in terms of volatility, goes down. And as a result the currency of the host country is expected to become less volatile in the future. And this will be evident in online forex trading. Forex brokers take volatility into account as all markets become more volatile as risk increases. When risk goes down, volatility goes down, and in the case of variable spread forex brokers, spreads become smaller too.

Online Forex Trading Benefits from Successful Olympics

Online forex trading benefits from successful Olympics, as well as every forex trader. Not that volatility is bad, volatility is good in most cases. But currencies that lack reputation and are seen as unstable and perhaps as too risky, do need to have their reputation improved. Excessive volatility is not good because a market that is too volatile can do all kinds of crazy things, out of the blue. More importantly it tends not to respect support and resistance levels. So moderate volatility is better for everyone who wants to trade forex, the market is risky enough even at moderate volatility. And volatility will never ever go below a certain level, because the market naturally requires it. So all that we can do to reduce excessive volatility will make the financial markets function better. Just like the advent of derivatives in the 70s made commodity markets better. And the good effects are still with us today.

Long Term Economic Benefits

It is difficult to assess the long term economic and social benefits that the Olympics bring to the host country. But first and foremost it is the ultimate proof that the country in question becomes safe to visit. And while tourism is not the main foreign exchange earner in most countries, it is a significant one. Then it’s about the real estate market, which also gets a seal of approval on safety. Nobody ever wants to buy a house in a country that has no police and professional security forces. So the real estate market does benefit in the long term. These are long term effects, but still matter to the medium term oriented forex trader.

Top Successful Strategies for Online Currency Trading

‘Online currency trading comes with many difficulties and pitfalls. However determined traders know how to handle this risk, and tackle one problem at a time.

Online Currency Trading is Similar to Treasure Hunting

Online currency trading is very similar to treasure hunting. An endeavor which is very tricky, often costly, and eventually enormously rewarding to those who persist. And what prevents most participants from finding this big treasure is all this risk, and the fear of failure. In the case of online currency trading things can be even more deceptive. Because many new traders think they can achieve that huge success within their comfort zone, without making extraordinary efforts. And that’s not the case. Despite all the technological advances today’s beginner trader has no real edge, no advantage over the competition. All the popular trading tools available in the market, are also available to anybody else. Hence no real advantage lies there. The real advantage lies in peculiar research methods and tools. Something which all determined treasure hunters figured out, early in their missions.

Top Strategies Used by Determined Traders

Online Currency trading in today’s world, does require good knowledge and peculiar skills. First of all, all wise traders trade the forex market through CFD trading accounts taking full advantage of the unique benefits that CFD contracts offer. A good CFD guide helps traders see above and beyond classic trading, and into new largely untapped opportunities. Today’s wise CFD traders focus more on the inner workings of a financial market, and not so much on price momentum. Good trading strategies are the ones that look beyond momentum, and beyond public opinion, such as news and economic reports. There is very small predictive value in all this misleading information, just enough to fool you and make you think that you should keep following it. Just like treasure hunters, there is no a single successful treasure hunter who ever found a piece of gold based on popular beliefs and maps. And the more popular a methodology is, the more wrong it is expected to be.

Online Currency Trading is Intimidating and Challenging

Forex trading is so intimidating, especially in the beginning. That many traders are psychologically broken and quit trading within six months or so. And usually, the ones that do make it past the six months stand a very good chance of trading profitably later in the future. We hardly every hear stories of forex success, because most successful traders are secretive and don’t want anyone to know. They are also humble, and they don’t want to attract attention and compliments. After all, it is humility and focus that keeps them winning. Despite that, there are CFD trading stories of small or large success, by various traders. But many successful CFD traders remain hidden, and never even discuss the nature of their trading. The strategies involves are just as secretive and unusual, and have little in common with popular strategies. And in the case where extensive numerical analysis is involved, there is nothing to discuss anyway. Because it’s all about numbers and relations between different markets, which are difficult to describe in words, and possibly even difficult to spot on a market chart. But there is an underlying logic. And this logic kept them believing that they could overcome all adversity and intimidation until they traded successfully.

The Golden Rules of Online CFD Trading for Real Success

Online CFD Trading at its Best

Traders engaged in Online CFD trading can do all kinds of strategies, from day trading to long term investing. It is good to know which is best for each trader.

Online CFD Trading for Stocks

Online CFD trading in the case of stocks could be implemented in various ways. The smartest and most reliable ways to trade stocks. Are the ones where market information is as meaningful as possible, and the least ambiguous. Day trading stocks based on charts alone is a popular but highly misleading way. Because charts and chart based indicators are highly ambiguous. Very few CFD trading courses teach good strategies. These that do teach peculiar good strategies combine market charts together with some other indicator. The best proven indicators are stock option premiums, and level II quotes. Stock option premiums can hint stock price direction over the next several days or weeks. And so they are good indicators for the longer term trader. Level II quotes on the other hand contain all the information needed to figure out the auctioning action going on, on the underlying stock. And this can be used in day trading specific stocks, quite successfully. Attempting to day trade stocks any other way, will almost certainly lead to failure. Because charts can fool traders very easily. Level II quotes on the other hand provide crucial information about supply and demand. And traders combining level II quotes and basic chart information, such as support and resistance, get to see the real action. Level II information may reveal false stock price breakouts in ways that charts alone can never do. The wise level II CFD stock day trader is at enormous advantage. Because CFDs allow them to capture the ensuing price moves very fast, and very efficiently. Level II strategies are based on logic, the same logic that can be used to monitor all kinds of live auctions. Auctions of works of art, antiques etc. Except that CFD stock trading is 100s of times more affordable than these other auction trades.

Online CFD Trading of Stocks Can Be Extremely Profitable in One Case

Online CFD trading of stocks, through the level II day trading approach changes everything. While classic day trading, based on the naive idea that charts alone are enough, offers a low probability of success. Perhaps as low as 5%. The level II stock CFD day trading approach together with basic charts and LSS pivots, offers a probability of success of 70% or more. Therefore it really is possible to make good and consistent profits. All that is needed apart from the strategy, is courage and a strong desire to be different than other traders. Even the level II domain of insightful information allows for widely diverse sub-strategies and methods. But the basic principle is simple, for a stock to go up, there have to be more and more buyers and offers to buy. For a stock to go down, there have to be more and more sellers, and more offers to sell.

Learning about CFDs Wisely

Online CFD training available is more than enough to cover the needs of a level II stock trader interested in doing it all through CFDs. Online CFD trading is not complicated. And also the retail CFD day trader actually has unique liquidity benefits over day traders dealing through futures, or stocks through direct market access. It’s simply a matter of liquidity, the CFDs market is smaller than the direct market access. Because liquidity always flows from big to small, but not from small to big. It’s a market fact. Those wondering how how does CFD trading work? Only need to learn the basics of CFDs, and then look at the liquidity benefits in particular. Liquidity and linear pricing are the biggest benefits and are often not even mentioned in most CFD beginner handbooks. But these two benefits are even more important than leverage, because they are unique to CFDs!

Trump or Hilary – Who is Better For the Future of Online Trading

Online Trading Platforms and the Future of Trading in the US

The US presidential election of November 8 is seen as crucial by US citizens, on many matters. To traders it’s about access to CFD online trading platforms.

The Future of Online Trading Platforms and Income Tax in the US

US citizens worry about terrorism, immigration control and so much more. The upcoming presidential election is very likely to be won by republican candidate Donald Trump. US traders on the other hand also worry about possible negative changes in the way that the stock market works. Or in the way that profits made from financial trading are taxed. Given that taxation is already heavy in the US, and capital gains tax (CGT) is applied to many forms of trading. And from that perspective, US traders are very like to vote for Trump. Because the republican party is more supportive to free enterprise and capitalism. On the negative side, the republican party is less likely to engage in trade cooperation with former enemy states, such as former President Clinton did with Vietnam. The idea is however that most former enemy states are no longer real enemies of the United States. As today’s threats to national security come from terrorists, and not formal states. To traders, the change may be for the better because the Trump administration may allow the Securities and Exchange Commission to grand licenses to CFD brokers, to actually allow US citizens as clients. So far US citizens are not allowed to trade CFDs, not even through regulated EU based brokers. And these traders are at a severe disadvantage over their European and Asian counterparts. These traders dream of CFD online trading platforms and their benefits. On the taxation front, CFDs will not be exempt from CGT, but that is of little concern to traders who know how to trade profitably. The benefits of CFDs far outweigh tax issues. Moreover, other trading instruments in the US are not exempt from CGT either.

CFD Online Trading Platforms and Missed Opportunity

US commodity traders see CFD online trading platforms as a forbidden fruit. And they are indeed just that. Because they get to see how EU based CFD commodity traders perform in real action. They simply have an unfair advantage over US based traders, hence the jealousy is reasonable. Commodity and forex brokers based in the EU and elsewhere will have a chance to accept US citizens as clients, only under a republican US president. That is a no brainer. The democrats have been hindering the potential growth of unrestricted financial trading, even under the tightest regulation. EU based CFD brokers are well regulated and well run, and yet are not allowed to accept US based traders. As soon as the legal issues and tax issues are resolved, the small retail US trader will be able to trade CFDs. Just like all other traders in the modern financial markets. And the US has always been a leader in financial trading evolution. And it was under a republican government in the early 70s, that derivatives were introduced in the commodity markets for the first time ever, in the world! As a way to prevent commodity prices and crude oil in particular from ever rising to extreme levels again.

Trump is Best for Commodity Traders and for All kinds of Retail Traders and Investors

Every forex trader and investor wants the best they can get in the markets today. And democrats have failed to deliver on that. While democrats have been good in other aspects of the economy and on social issues. Real capitalistic society requires less government support, less subsidies, and for entrepreneurs to have the motivation to take risks. All entrepreneurs and traders take risks, so they want to be taxed less, and to operate on an even playing field with the rest of the world. The much desired advent of online CFD trading in the US will give retail traders and investors that lost advantage. So their online trading platforms will be offering so much more than they do today.

The Future of Online Forex Trading

Online Forex Trading and How it is Likely to Evolve

Online forex trading is likely to evolve in the coming years. So as to offer traders smarter ways to trade and more advanced contingent orders for risk control.

Online Forex Trading Needs to Keep on Evolving

Online forex trading needs to keep on evolving as markets become more risky in some aspects. And more profitable in other aspects. Volatility patterns change, and market volatility itself may change significantly for long periods of time. Trading forex is difficult, always, and it will always remain so. As most trading educators and gurus always seem to be one step behind real market action. And the trading tools available today, though not bad. Cannot be used in the ways that these old fashioned educators will tell you. Every forex trader who has been through such education has found out the hard way. Small risk reward ratios fail miserably, and actually make one’s forex trading much more risky. Nothing that works well on the white board ever works well in live trading. That’s just the way it is. The markets will always be risky and intimidating. But to some good traders they will always be profitable as well. Online forex trading will keep on intimidating traders, especially new traders. And forex brokers will keep on improving, so as to provide the best error-free trading experience.

How Will Online Forex Trading Evolve?

We are likely to see online forex trading evolve in some ways, so that more flexibility is available for risk control. Such as contingent orders which are based on multiple data inputs, than just market price. For example, they may make it possible to have a trade closed or reversed, based on market price and volatility. Or based on price progress and the elapse of time. Such contingent orders could really allow already good traders, make their trading go even further. And hence increase profitability. Traders that lose, will continue to lose until they improve their methods. There’s no magic remedy for losing traders, to offer overnight success. Brokers cannot really help on that one. But for those who are on the way to success, brokers can enhance the trading experience by huge margins. Forex brokers of the future will make it so that the wise forex trader will trade much better than they ever could with today’s platforms. And the same is true when comparing different times in the brokerage industry, set 10 or 15 years apart. The newer service was always improved and better in many ways, over the old.

Wise Traders Know Not to Be Fooled By Evolution

Wise traders know that smart phones and automation are all good, but are not by any means the answer to trading. As they are not substitute for real, hard-earned trading experience. And while they want to see enhancements made in the brokerage industry. They know that winning in the forex market will only be possible through the use of the right strategy. As well as through real dedication to the task.

How Will Brexit Affect Online Currency Trading?

Online Currency Trading- The Effects of Brexit

Online Currency Trading after Brexit

Brexit will impact some economies in bad ways and good. These all long term effects, with the British pound itself likely to rise due to the forthcoming events.

Online Currency Trading and Investing after the Brexit

Online currency trading and investing is likely to see the effects of Brexit on many countries. First and foremost is Britain itself, which will almost certainly be economically worse off outside the EU. More specifically it is expected that unemployment will go up, as many specialized jobs will be diverted in other EU countries. The general feeling is that Britain will become poorer for several years at least, inflation will definitely rise. And interest rates will also rise significantly. And this is the only reason why Carry forex players will see an opportunity investing in the British pound, hence the currency will appreciate. This scenario is not an exact one, but it very likely to happen. Carry forex trading on the other hand is very important. Because it helps even short term forex traders better assess technical support and resistance levels. So a trader trading let’s say EURGBP, will take these Carry trade facts very seriously. And they will look at interest rate differentials between the two different economies and their currencies. It won’t take an economist to figure out which country will have more inflation, and the need to fight more inflation. Or which country will do better on imports and exports. So the trader in our example will look to confirm short trades in EURGBP, expecting the British pound to recover from drops. And not to break below critical lows. Therefore EURGBP should provide some nice trades on the short side. With counter moves seen as mere corrections. Online currency trading can be implemented very nicely through CFD trading accounts. Provided that the trader knows how to handle volatility and risk control.

Online Currency Trading Makes Sense

It may seem that online currency trading doesn’t really make much logic sense. And that economists and technicians never agree on anything. But this disagreement among these people is natural, and expected. Wise traders take the logic approach, and when data is in conflict, they look at different time frames. Logic of longer time frames always prevails over the conflicting logic of shorter time frames. In the case of Carry forex trades, inflation and interest rates are logic data. And this data prevails over any short term indicator. In fact, short term indicators fail to predict price extremes, and where a currency pair may go. Global investor money will always go to the currency paying the highest interest rate, period! The domestic economy may act in a negative way, so as to lessen the buying power of the currency of the country in question. But even poor countries can see their currencies appreciate on high interest rates alone, as long as the country has a good reputation. and Britain in our example does have a good reputation.

CFDs for Forex Trading

CFD guide books and resources are available for traders to read. But in a nutshell, CFDs are better because of their superior linear pricing and far superior liquidity. And not because of their leverage. Many other trading instruments come with convenient leverage, but lack the linear pricing and ultra high liquidity of CFDs! That’s where the secret of success is, in many CFD trading stories! The entire spectrum of short term and long term forex trading can be implemented through CFDs, in very profitable ways. Where risk itself is controlled in the best ways possible by retail traders. The actions of large Carry traders and the relevant information can help set currency analysis right. And to eliminate key trading mistakes over the course of the trading year. That’s how online currency trading and investing can be greatly improved.