Forex

Taking advantage of the strength of the trend by trading with the adx

The ADX (Average Directional Index) is a technical analysis indicator created by J. Welles Wilder and is used to evaluate the strength of an upward or downward trend. The ADX is an oscillator that ranges from 0 to 100, but the trend can be described as strong only above 30 points. The readings above 50 points are very rare and in this case they testify an excessive sentiment to be used in a contrary view. Conversely, all the readings below 20 points indicate a weak trend that could lead to a short-term burst of volatility. Through the use of this indicator, we can understand at what stage of the market we are in at the moment: in trading range or in trend. This is quite an useful element for those who operate on Forex trading. The Adx has to be used together with other indicators, in order to avoid false signals and prevent significant loss of money to Forex trading operators after opening a Forex account. (more…)

Forex

Why choosing a forex demo account

Demo accounts have no major disadvantages for a trader who decides to open a new one, except the fact that they will not help him earning real money if the trading strategy proves to be successful. This type of trading accounts simulates the real situation but without the risks and commitments.

Nowadays, all the main brokers are able to offer free demo accounts to both potential and actual customers.

The experience of the past has taught brokers that focus on training and practice is much cheaper than just throwing on the market. Furthermore, there is the need to meet the needs of customers who want to test quality and services offered by the platform before paying their money to a broker. (more…)

Forex

The demo account, a good tool to avoid being a gambler instead of a trader

Part of traders in the forex market can certainly be defined as gamblers rather than professional forex traders. Lured by the possibility of easy money in a relatively short period of time, traders throw themselves on the forex market immediately using real money; as a result, they get strong disappointments and many of them are forced to leave the activity in the first months after the opening of their forex account.

The so-called gambler trader enters the game already believing to be a good operator with an appropriate level of technical preparation and a good deal of cleverness that will allow him not to run in the most common mistakes and substantial losses that are the bane of many beginner forex traders. (more…)