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  • Vlad RF
    replied
    Unemployment Rate, and How to Use It in Forex

    Author: Andrey Goilov


    As a rule, trading in financial markets is based on tech analysis, expert advisors, and various indicators. Attempts to make a profit on the publication of some important economic news and its analysis stands a bit aside.

    One of the strongest indices that can move the market is Non-Farm Payrolls; this index shows the number of workplaces out of the farming sector in the USA. As long as the US dollar is the world’s leading currency, the state of the US economy worries investors and traders, naturally.

    Some short time ago, there was a separate category of active traders that were looking forward to the publication of this index because, after the publication, the market could cover hundreds of points in one direction in just a couple of minutes, which was a good opportunity for making a profit. The rest of the week such traders enjoyed themselves, waiting for Friday and NFP.

    https://blog.roboforex.com/wp-content/uploads/2020/09/pic-1-1.png

    The unemployment rate: what is it and how does it influence the market?

    We may say that employment is the basis of any economy. If workplaces are abundant, more goods get to the market, and the employees get a higher wage. They further spend their revenue on other goods and services, thus increasing demand. However, some say that extremely high or low employment rates might both be harmful to the economy.

    If the unemployment rate is high, social tension increases, the share of the middle class shrinks, and so does the real income of the population. If the unemployment rate is too low, employees may lose motivation for working and making high-quality products: there are almost no rivals, seeking the same workplace, hence, no stimulus to become the best. The interests of the employer and the ultimate consumer, who gets a product of mediocre quality, also suffer.

    The optimal unemployment rate should be within 3-7% of a country’s working population. Of course, the optimal level might differ from country to country, and the same unemployment rates in two countries are hardly comparable. Anyway, significant fluctuation from the average level may provoke a market movement, which traders will try to use for making a profit.

    What does a trader do before the publication of unemployment rate data?

    Read more at R Blog - RoboForex

    Sincerely,
    RoboForex team

    Leave a comment:


  • Vlad RF
    replied
    What is Slippage in Forex?

    Author: Victor Gryazin


    In this review, we will discuss such a notion as slippage. This is quite a frequent phenomenon in Forex and other financial markets that influences the opening and closing prices of a position.

    What is slippage and how does it appear?

    Slippage is the deviation of the execution price of a market order from the market price during the time of execution. To put it simply, it is the difference between the closing/opening quotation of the position and the factual opening/closing price. On the chart, slippage sometimes looks like a small gap on smaller timeframes.

    Slippage emerges when the market execution method is used. This is the most advanced and popular contemporary method of trading in Forex. Orders are executed quickly, with a guarantee, without requotes at the current market price, even if it has slipped (changed) a bit during the processing time. Slippage can be either positive or negative.

    Positive slippage

    A positive slippage means that a position is opened/closed at a slightly better price than in the order. For example, a trader has an open buying position in GBP/USD at the price of 1.2800. The rate of the pair grows by a “pattern” (100 points), and the price reaches 1.2900. The trader sees this price in the order and closes the position. However, thanks to a powerful ascending movement, the price grows a bit more during the order processing time, and the position closes at the price of 1.2901. The slippage amounts to 1 point in the trader’s favor.

    Negative slippage

    In this case, a position is opened/closed at the price slightly worse than initially ordered. For example, a trader is waiting for weak news in the EU and plans to sell EUR/USD. The news comes out worse than expected, and the pair starts declining fast. The trader sees 1.1850 in the order and decides to sell. However, while the order was being processed, the price went even deeper down due to a strong descending impulse, and the trade opened at 1.1845. The slippage amounts to 5 points against the trader.

    Slippage is frequent in trading at market quotations, not only in Forex but also in other financial markets (stock, commodity). As a rule, slippage in the main currency pairs is small (about 1 point in a calm market). Slippage is most critical for scalping strategies that are characterized by a very large number of trades with the goal of several points.

    https://blog.roboforex.com/wp-content/uploads/2020/09/slippage-1003x630.png

    Is the broker to blame for slippage?

    Quite often, traders who face negative slippage wonder: Isn’t it the broker’s fault?

    Read more at R Blog - RoboForex

    Sincerely,
    RoboForex team

    Leave a comment:


  • Vlad RF
    replied
    What Is Price Action Analysis?

    Author: Timofey Zuev


    Today we will talk about price action analysis, an important aspect of technical analysis on Forex. Price Action analyzes price behavior and patterns and can identify almost any market trend.

    What is the subject of Price Action analysis, and how does it differ from graphic or indicator analysis?

    The graphic analysis is meant to detect certain patterns on the chart that often reflect the interaction of demand and supply (buyers and sellers). For example, a Triangle, often emerging in the way of the trend, is normally a trend continuation pattern. In essence, a trader practicing graphic analysis need only to know this fact (that the Triangle is a trend continuation pattern) to make a decision. This simplifies analysis but creates additional limitations.

    If the trader wants to figure out the reasons for the price movement, such an explication will not suffice – they need a more intricate understanding of market mechanisms. This need leads many traders to Price Action analysis.

    Some say that Price Action analysis is just the analysis of simple candlestick patterns. Say, Rail or Pin Bar signal about an upcoming reversal, a breakaway of the inner bar signals to buy, etc.

    In reality, such a simplistic approach to Price Action analysis will hardly be efficient: if you are eager to understand market processes from scratch, your analysis must become more complicated, not simpler. The number of details and factors that you must pay attention to will increase in a non-linear manner, and making decisions will become harder because the number of conflicting parts of the picture will grow (more signals and scenarios will appear for both buys and sales).

    Of course, a trader does not need to see and understand everything: in the end, every market player chooses two or three trading styles and focuses on several types of events, such as breakaways of ranges or the appearance of trends two-three weeks long, etc. However, the understanding of Price Action frees the trader from a fixation on certain patterns – they start to operate principles and become able to find trading opportunities in virtually any market.

    On the one hand, information becomes so plentiful that it needs filtration and specialization in a limited number of market situations; on the other hand, the abundance of information lets the trader see more in the market that forms no known-by-all pattern and gives no direct answers.

    Read more at R Blog - RoboForex

    Sincerely,
    RoboForex team

    Leave a comment:


  • Vlad RF
    replied
    RoboForex adds new MetaTrader 5-based accounts


    We’ve expanded the opportunities of working with the new-generation trading platform MetaTrader 5. From now on, you can trade on RoboForex Prime accounts with the exceptional market conditions.

    Prime accounts – trading on the best market conditions
    • Floating spread – from 0 pips.
    • Leverage – up to 1:300.
    • Perfect for automated scalping.

    Read more


    MetaTrader 5

    Terminal for modern trading
    • Access to popular trading instruments
      Trade assets in different segments of financial markets, such as Forex, Cryptocurrencies, Metals, CFDs on US stocks, indices, and oil.
    • Trading robots
      Create and test trading robots or buy ready solutions from the built-in platform shop.
    • Flexible trading system
      Choose a more convenient position accounting system: netting or hedging.
    • Fast execution
      MetaTrader 5 is a 64-bit multi-thread platform, which provides fast order execution and comfortable testing of trading strategies on historic data.

    Get access to all advanced features of MetaTrader 5 and choose the most suitable trading conditions with one of the account types at RoboForex.


    Sincerely,
    RoboForex team

    Leave a comment:


  • Vlad RF
    replied
    Tech Analysis Patterns: How to Trade Diamond?

    Author: Victor Gryazin


    In this review, we will get acquainted with trading the Diamond. This is a reversal tech analysis pattern promising a correction or a reversal of the current trend.

    How does a Diamond form?

    The Diamond is a quite rare reversal pattern, which you do not often come across on charts – perhaps this is another reason why it is called like a precious stone. The pattern forms at the highs/lows after the preceding up- or downtrend.

    What does the pattern look like? We can say that on the chart after an impulse ends, the price consolidates, and two triangles sharing one base form. First, a diverging triangle appears, then a converging one follows suit (symmetrically). Together they form a pattern that looks like a rhombus, or diamond.

    Ideally, the pattern looks like a clear symmetrical diamond shape. But let us remain realistic: even real diamonds have flaws, scratches, and cloudy spots. With the Diamond pattern, it is the same: in real market conditions, its borders may be quite asymmetrical, a bit shifted or extended.

    The most important thing here is for the pattern to remain at the extremes and within the borders of two adjacent triangles, be they imperfect. If you have any doubts with a Diamond on a normal chart, try switching to the linear version: it will show the borders of the pattern more precisely.

    https://blog.roboforex.com/wp-content/uploads/2020/09/rhombus-1001x630.png

    Choosing a timeframe for trading

    A Diamond may form on any timeframe, even the smallest one. For trading intraday, you may use M5, M15, or H1. However, keep in mind that they are considered less reliable than larger timeframes.

    The larger the timeframe, the more probable it is that the pattern will be worked off. The main timeframes for trading this pattern are: H4, D1, and W. Naturally, on larger timeframes, the pattern takes rather long to form but promises more significant realization. As soon as the pattern is complete, you may start trading.

    How to trade Diamonds?

    To trade the pattern, you need it to be complete; I advise you against trading inside a Diamond. If the Diamond formed on the highs, this means the uptrend is over, so you may sell. Conversely, if the pattern forms at the lows, after a downtrend, you may expect an upward reversal and get prepared for sales.

    Read more at R Blog - RoboForex

    Sincerely,
    RoboForex team

    Leave a comment:


  • Vlad RF
    replied
    Heiken Ashi + ADX + Stochastic Trading Strategy

    Author: Andrey Goilov


    Today, we will speak about another trading strategy meant for minute charts, with a potential profit of 10-15 points per trade. The characteristic feature of this strategy is the use of the ADX indicator on small timeframes: normally, it is used on daily charts, as its author advised. However, here, instead of normal Japanese candlesticks, we use Heiken Ashi, which is, again, rather unusual for a simple trading strategy.

    What indicators do we need?

    To set up the strategy for decent work, we only need three indicators.

    Heiken Ashi

    First and foremost, install the Heiken Ashi indicator. Many traders say it demonstrates current market trades immaculately. This is traditionally a user indicator, not included in most trading terminals. When you add the indicator to the chart, candlesticks turn red and green.

    https://blog.roboforex.com/wp-content/uploads/2020/09/pic-1-1092x630.png

    Red candlesticks mean a downtrend, and many traders recommend selling on such candlesticks only. Conversely, when the indicator turns green, look for buys. In the simplest strategies, traders add the Stochastic Oscillator to confirm the signals of Heiken Ashi.

    ADX

    The second indicator we will need is ADX, or Average Directional Moving index, which also shows the current market trend. According to the author, if ADX values grow, this indicates a strong trend, while low values signal bout a flat.

    https://blog.roboforex.com/wp-content/uploads/2020/09/pic-2-1092x630.png

    ADX indicator Be careful: when the indicator values grow, this just means there is a trend in the market but we do not know whether it is bullish or bearish.

    Stochastic Oscillator

    The third indicator is the Stochastic Oscillator with the parameters (5, 3, 3) that in many strategies, gives good entry signal by the crossing of its signal lines. Being an oscillator, this indicator shows how far the price has fluctuated from its average values.

    Read more at R Blog - RoboForex

    Sincerely,
    RoboForex team

    Leave a comment:


  • Vlad RF
    replied
    Trading with the Donchian Channel Indicator

    Author: Victor Gryazin


    In this review, we will get acquainted with a quite simple and useful indicator called Donchian Channel. This is the indicator that the famous Turtle trend strategy is based on.

    How does the Donchian Channel work?

    The Donchian Channel is quite a simple channel indicator reflecting the borders of price fluctuation in a preset time interval. The indicator was named after its creator, a famous exchange trader of Armenian origin Richard Donchian.

    The indicator looks like a price channel with an upper and lower borders, inside which the quotation fluctuate. To draw a border, the Donchian Channel calculates the latest extremes, taking the highest high and the lowest low of the period.

    The indicator acquired popularity after a trend strategy called Turtle Trading System was based on it. This famous strategy by Richard Dennis uses a breakaway of the Donchian Channel’s border with the period of 20 days as the entry point. A group of beginner traders demonstrated good results following this strategy.

    In essence, the Donchian Channel may be called an indicator of volatility because it is based on calculating the price range based on recent highs and lows. The wider the channel, the higher the current volatility; when the channel narrows down, the volatility of the instrument temporarily decreases.

    https://blog.roboforex.com/wp-content/uploads/2020/08/donchian-1002x630.png

    Installing and setting up the indicator

    The Donchian Channel is included not in every trading terminal; hence, you might need to download a file of the indicator and set it up in your terminal. You can download the indicator for MetaTrader 4 by a link in the end of this article.

    To install the indicator, copy the file to the Indicators folder. Via the Main Menu, open File/Open data catalog/MQL 4/Indicators, copy the file, and restart the terminal.

    As a result, the Donchian Channel will appear on the list of user indicators and will become available for the charts of your instruments: open Insert/Indicators/User/Donchian Channel. Or just left-click the indicator in the Navigate window and drag to the chart.

    The calculations are quite simple

    Read more at R Blog - RoboForex

    Sincerely,
    RoboForex team

    Leave a comment:


  • Vlad RF
    replied
    RoboForex offers sponsored VPS on MT5 accounts


    RoboForex is launching a program of Sponsored VPS for those of you who have MetaTrader 5 accounts. Starting September 1st through December 31st, feel free to use a VPS server MetaQuotes, integrated in the platform, at the company’s expense. Normal fee is 15 USD a month.
    Why MetaQuotes VPS?


    MT5-integrated
    Orders and settings of MetaQuotes come directly from your trading terminal by several clicks. After you set up the VPS, all the expert advisors in your terminal will start working incessantly. You have no need to reinstall the terminal, set up the expert advisors and, more importantly, stop their work.

    24/7 work
    You will not need to worry about unexpected power cuts or Internet connection failures. Your subscribes and robots will work 24/7, even if you shut down MetaTrader 5 on your PC.

    Network lagging minimized
    MetaQuotes VPS is selected for you based on the proximity to the main server at the minimal ping; hence, network lagging in sending orders decreases.

    To take part in the program, you need to comply with one of the following requirements:
    • Deposit 500 USD (or its equivalent in another currency) to your account at once.
    • Have a balance of no less than 500 USD at 00:00 server time on the first day of a new month.

    After you fulfill the requirements correctly, you will receive a confirmation e-mail with further instructions.

    For more detail, see the Rules of the program.

    Sincerely,
    RoboForex team

    Leave a comment:


  • Vlad RF
    replied
    RoboForex: changes in trading schedule (Labor Day in the USA)


    We’re informing you that due to the Labor Day in the USA, there will be some changes in the trading schedule*.

    MetaTrader 4 / MetaTrader 5 platforms

    Trading schedule on Metals (XAUUSD, XAGUSD) and CFDs on Crude Oil (WTI, Brent)
    • September 7th, 2020 - trading stops at 7:45 PM server time.
    • September 8th, 2020 - trading starts as usual.

    Trading schedule on CFDs on US indices (US500Cash, US30Cash, USTechCash) and Japanese index JP225Cash
    • September 7th, 2020 - trading stops at 7:45 PM server time.
    • September 8th, 2020 - trading starts as usual.

    Trading schedule on CFDs on US stocks
    • September 7th, 2020 - no trading.
    • September 8th, 2020 - trading starts as usual.


    R Trader platform

    Trading schedule on US stocks and ETFs
    • September 7th, 2020 - no trading.
    • September 8th, 2020 - trading starts as usual.

    Trading schedule on CFDs on US stocks and ETFs
    • September 7th, 2020 - no trading.
    • September 8th, 2020 - trading starts as usual.

    Trading schedule on CFDs on US indices (US500, US30, NAS100)
    • September 7th, 2020 - no trading.
    • September 8th, 2020 - trading starts as usual.

    Trading schedule on Metals (XAUUSD, XAGUSD) and CFDs on Crude Oil (BRENT.oil, WTI.oil)
    • September 7th, 2020 - trading stops at 7:45 PM server time.
    • September 8th, 2020 - trading starts as usual.


    cTrader platform

    Trading schedule on Metals (XAUUSD, XAGUSD)
    • September 7th, 2020 - trading stops at 7:45 PM server time.
    • September 8th, 2020 - trading starts as usual.

    Please, take into account these changes in schedule when planning your trading activity.

    * – This schedule is for informational purposes only and may be changed by the provider.

    Sincerely,
    RoboForex team

    Leave a comment:


  • Vlad RF
    replied
    What Psychological Traps Do Beginner Traders Face? What Stands in Their Way to Success?

    Author: Timofey Zuev


    Let us get started with the simplest questions: how did you find yourself in Forex? What was the reason for you to get interested in such a thing? One of the most popular ways of attracting an untutored searcher of new money sources must be to promise them a quick and easy-to-make profit. Indeed, the Internet is full of ads assuring you that making money in Forex is nice and easy; however, it is not.

    Of course, one has to get up really early in the morning to fool such serious-minded and clear-headed people like us: we know that there are no free lunches. However, the more you try to ignore the ads, the more curious you become: how do people make money in Forex? This is the starting point where a beginner makes their first step from simple to complicated techniques, from mere curiosity to engrossing passion. Today, the amount of free information about trading and earning is virtually unlimited: read, study, and try. Imagine how delighted you will be to make your first profit on a demo account!

    With your cheeks flaming, you start calculating what profit you could have made on a real account, and how much it would amount to monthly or annually. You make a wide gesture and deposit your money on a real account. Alas, after your first success or even without it you lose your money. It damps your ardor but you realize that there must be a reason for your losses and recall seeing an ad somewhere promising to teach you how to trade in a fortnight. You rush there.

    A new step in your studies begins: you learn about indicators, patterns, trends, support and resistance, trading systems, money management, psychology, and other useful things and novelties. Simultaneously, your teachers tell you that in fact, things are simple. Indeed, you succeed again: your demo account is growing, and what you have learned really works. No need to repeat that you deposit your money on a real account – and return to where you got started…

    Why do beginners drain their deposits?

    https://blog.roboforex.com/wp-content/uploads/2020/08/psychology1.jpg

    There are several answers to the question.

    Reason one

    Your learning is just a part of your way, the necessary minimum that you need to start making money. The market moves either up or down (for now, we will neglect the times of consolidation). Hence, the first half of beginners will end up with a profit while the second half – with a loss. This first half will immediately open a real account and lose the deposit. Meanwhile, the second half will go on learning, being sure that their effort was not enough – however, they will also open a real account later, explaining their previous losses by a lack of knowledge and experience.

    Reason two

    All learning, especially in a dealing center, is a kind of hypnosis. As soon as you read something, you immediately start looking for confirmation of the information on charts – and, curiously, you find them. On the other hand, your teachers leave out the cases when you could suffer losses in the same circumstances. When a beginner opens the terminal and tries trading in accordance with the information studied, one of the two things happen: they either make a profit and fill with enthusiasm – or suffer a loss and start thinking something like: “My gosh, I should not have entered here!” or “On the longer timeframe it was okay but on the smaller one I entered counter the trend!” or “I did it right except for the Stop Loss, it was too short!” or “Why on earth did I wait? I should have closed it with a profit!” or something else of the kind. There might be thousands of explanations, however, not many will admit that the strategy was erratic from the start.

    Read more at R Blog - RoboForex

    Sincerely,
    RoboForex team

    Leave a comment:


  • Vlad RF
    replied
    RoboForex: changes in trading schedule (Late Summer Bank Holiday in the United Kingdom)


    We’re informing you that due to the public holiday in the United Kingdom (Late Summer Bank Holiday) on August 31st 2020, several instruments will be traded according to the changed schedule*.

    MetaTrader 4 / MetaTrader 5 platforms

    Trading schedule on Russian GDRs
    • August 31st, 2020 - no trading.
    • September 1st, 2020 - trading starts as usual.


    R Trader platform

    Trading schedule on CFDs on UK stocks
    • August 31st, 2020 - no trading.
    • September 1st, 2020 - trading starts as usual.

    Trading schedule on CFDs on UK100 index
    • August 31st, 2020 - no trading.
    • September 1st, 2020 - trading starts as usual.

    Please, take into account these changes in schedule when planning your trading activity.

    * – This schedule is for informational purposes only and may be changed by the provider.

    Sincerely,
    RoboForex team

    Leave a comment:


  • Vlad RF
    replied
    RoboForex: important information regarding Apple and Tesla stock splits on August 31st, 2020


    On August 31st, 2020, Apple (AAPL) and Tesla (TSLA) will have their stocks go through a split. A stock split is a corporate action, as a result of which the company increases the number of issued shares by a specific multiplier and reduces the value of each share by that multiplier.

    Apple will have a 4-for-1 stock split (1 share will be split into 4), while Tesla – 5-for-1 (1 share will be split into 5).
    How it will influence positions and orders?


    If you have open positions in Apple and Tesla shares or plan to open such positions, please pay attention to the following changes, which will be effective as of August 31st, 2020:

    MetaTrader 4 / MetaTrader 5 accounts

    The split procedure will take place during the weekend, August 29th and 30th.
    • All pending orders (Buy Limit, Buy Stop, Sell Limit, Sell Stop, Buy Stop Limit, Sell Stop Limit, Stop Loss, and Take Profit) in AAPL and TSLA will be canceled.
    • For positions in AAPL, the opening price will be divided by 4.
    • For positions in TSLA, the opening price will be divided by 5.
    • The volume of each open position in AAPL will be multiplied by 4.
    • The volume of each open position in TSLA will be multiplied by 5.

    Please note that if you are using an Expert Advisor (EA), we suggest that you check with its developers whether its code needs any modifications to ensure correct interpretation of the price data after the stock split.

    R Trader accounts

    The split procedure will take place on August 31st at 3:00 PM server time.
    • During the split procedure, all active pending order (Buy Limit, Sell Limit, Stop Loss, and Take Profit) in AAPL, AAPL.nq, TSLA, and TSLA.nq will be canceled.
    • For positions in AAPL and AAPL.nq opened before 3:00 PM server time, the opening price will be divided by 4.
    • For positions in TSLA and TSLA.nq opened before 3:00 PM server time, the opening price will be divided by 5.
    • The volume of all open positions in AAPL and AAPL.nq will be multiplied by 4.
    • The volume of all open positions in TSLA and TSLA.nq will be multiplied by 5.
    • All positions in any of these instruments in the same direction and on the same account will be combined into one new position. This new position will have the opening price and a volume based on an average weighted price of all positions held before the split.

    The historical charts in your trading terminal will be updated to reflect the new prices of the above-mentioned instruments.

    All other aspects of trading conditions shall remain intact. Please, take into account this information when planning your trading activity.

    Sincerely,
    RoboForex team

    Leave a comment:


  • Vlad RF
    replied
    Murrey math lines: how to set and trade them

    Author: Andrey Goilov


    The Murrey math lines indicator adds horizontal support and resistance lines on a price chart, which, as the author believes, are able to hint at reversals. These lines also provide traders with an understanding of the current market tendency and allows them to see whether there is a potential for a trend reversal.


    There is an opinion that a trading system based on horizontal Murrey line can provide excellent signals on any type of markets – currency, stock, and even crypto. According to Murrey himself, large investors will behave in the same way in all kinds of markets. Moreover, they can work with the lines on different timeframes, which is an excellent opportunity to follow their capital management rules regardless of the deposit amount.

    What is the gist of Murrey math lines?

    Murrey math lines are based on the approach and observations that were made by William Gann, who was famous for his perfect forecasts with the use of different kinds of market symmetry, and one of the most famous technical analysis tools is called Gann Angles. The author himself had significantly adjusted the system and made it easier and clearer for ordinary investors.

    In Murrey’s opinion, markets will start corrections at some particular price levels, breakouts of and returns to which may provide traders good signals for opening positions. Regardless of the current market trend, the price must either rebound from the level or break the key level, which will point at a boost of the actual trend.

    Murrey emphasized 8 price levels, marked from [0/8] to [8/8], with [0/8], [4/8], and [8/8] being the most important.


    Parameters and setting of Murrey math lines indicator

    At present, most indicators based on this trading strategy set lines automatically and can show not only lines themselves but, in other words, also display scenarios of possible behaviors of traders at the time the price tests these lines. After adding the indicator to a price chart, we will see 9 lines with [4/8] in the center. As a rule, a classic indicator for MetaTrader 4 and MetaTrader 5 trading terminals has only two parameters:

    Read more at R Blog - RoboForex

    Sincerely,
    RoboForex team

    Leave a comment:


  • Vlad RF
    replied
    Goal Setting in Trading: How to Set Process Goals?

    Author: Timofey Zuev


    Let us talk about such a thing as goal-setting in trading. Today, everyone advises you to place goals and even visualize them to let out the powers of your subconscious. Well, your subconscious is a much more complicated mechanism than described in popular psychology books, so we will leave those recommendations out and turn to practical experience.

    There are two types of goals in trading – financial and process. A financial goal motivates a trader by a potential profit, while a process goal – by scrupulously completing the trading plan.

    Life shows that there is only one group of traders that can afford to place financial goals – they are experts. For all other traders, process goals will be much more efficient.

    In fact, for experts, following the financial plan is also the number one goal but financial motives may push them further forward and increase working efficiency. The complicated part of trading is that money is both the measure of the result and a reward for it. This is different from, for example, sports where a sportsperson gains points but also gets a reward that depends on the point quite indirectly.

    All in all, as long as in trading, the process and result are intertwined, the trader needs to separate the process from anything else and focus on it. This is not that simple, of course, because the completion of the plan depends on the ability to perform repeated actions calmly, even if they lead to a series of losing trades.

    Process approach to goal-setting in trading

    https://blog.roboforex.com/wp-content/uploads/2020/08/goal.jpg

    In a lecture, Alexander Elder spoke about his friend who had used to be a losing trader but some time later became one of the most successful managers. When asked about his secret, the man explained that he succeeded after he imagined that he had a boss living in the Bahamas who paid him for completing trades by a certain plan, not for the sums he earned. He imagined that even he made money at the expense of violating the plan, his boss would not pay him; conversely, if he lost money following the plan, the boss would pay.

    This logic is a perfect representation of the process approach to trading. When I am asked: “What profit characterizes an expert in trading?”, I reply that profits do not characterize a trader at all. In the short term, a profit may demonstrate a random coincidence of the trader’s action and the market state; also, keep in mind that the trader’s task is not to make money in the short term but to survive in the market and keep earning in the medium/long term. This is a sign of a successful method/system and compliance with it; this should be called professional trading.

    How to set process goals in trading?

    A goal “to trade as well as I can” is not a goal at all, it is formulated non-specifically, and we know that non-specific goals are very hard to reach. A process goal must deal with specific skills that you would like to develop and specific habits that you would like to change.

    To find out what exactly you lack or what hinders your work, try logging your trading, writing down your results, and commenting on your decisions. A bit later you will see what needs correcting.

    Read more at R Blog - RoboForex

    Sincerely,
    RoboForex team

    Leave a comment:


  • Vlad RF
    replied
    Trader's Psychology: How to Conquer Fear?

    Author: Timofey Zuev


    Psychology is an important part of a trader's success in the Forex market. Control over emotions (anxiety and trader's fear) is an intrinsic part of any trading strategy.

    Why is the trader's psychology important?

    https://blog.roboforex.com/wp-content/uploads/2020/08/trading-emotions.jpg

    The thing is that the trading in Forex implies dealing with money and facing high risks of losses. In modern life, a person spends most of their time earning money for satisfying their material and non-material needs. When you work in a certain structure for a wage and do not worry that you will not get paid at all if you make a mistake; however, in Forex, it is quite different:
    • Firstly, to start trading, you need to open a deposit, i.e. deposit your money on your account.
    • Secondly, each open trade is a risk of losing a part of the deposit.
    • Thirdly, if trading goes offhand, the trader will not only make no profit but lose; in other words, they will not only get a “wage” but will remain without the means of receiving this “wage” in the future.

    Thus, the trader’s attitude to money is extremely emotional due both to the risk of losing it and the perspective of making it. Excessive emotions in trading entail both losses and a profit lower than expected.

    To become an expert in some sphere, you need to carry out certain duties without useless emotions. When you come to work, you leave your family affairs at home; moreover, you do not worry about each of your operations, you just carry on with what you are to do. Your attitude to trading in Forex must be the same: your trading must be a monotonous sequence of tasks completed. All you need is to disengage yourself from the money and concentrate on carrying out a high-quality trade.

    The influence of emotions on the trader’s

    Let us discuss the main emotions that a trader may feel at work and must control firmly. As they say, you should know the face of your enemy.

    Read more at R Blog - RoboForex

    Sincerely,
    RoboForex team

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