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What is an STP Account?

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An STP representative is like an ECN merchant, where all customer positions are passed straightforwardly to the market through interbank trade houses or liquidity suppliers like banks. STP Forex dealers guarantee an exceptionally straightforward exchanging climate without any irreconcilable circumstance with its customers.

What is an STP account?

STP (Straight Through Processing) account represents no dealing desk technology where all trading orders are routed directly to liquidity providers using DMA (Direct Market Access). Using an STP account, all trades will be routed first to the liquidity pool, and then all orders will be filled at the best possible price.

 

Notwithstanding, STP records ought not to be considered as a genuine option in contrast to ECN accounts. ECN accounts are absolutely a non-managing work area model that empowers merchants to exchange the business sectors ongoing by sending orders straightforwardly to the market. To a greater degree, STP accounts are viewed as a crossbreed of the ECN and market creator (managing work area) models. All things considered, STP Forex exchanging accounts are ending up being more appealing than conventional managing work area accounts because of the assortment of benefits that merchants appreciate. Yet, STP likewise has a couple of downsides over the further developed ECN accounts.

What are the Different Types of Currency Brokers?

Owing to several parameters, we can discriminate between many kinds of Forex brokers. Forex brokers may typically be separated into categories by:

  • Reputable and licensed brokers
  • Non-licensed brokers that are non-reputable

As per the trading platforms:

  • MT4 Forex brokers
  • MT5 Forex brokers
  • MT4 & MT5 Forex brokers
  • Brokers with a proprietary platform

As per odder executions:

  •       No Dealing Desk (NDD) Forex brokers
  •       Dealing Desk (DD) Forex brokers
  •       Hybrids Forex brokers

NDD brokers are:

  • Electronic Communication Network (ECN) Forex Broker
  • Straight Through Processing (STP) Forex broker
  • Hybrid broker(ECN+STP).

How Are STP Forex Brokers Different from Market Makers?

Market producer representatives are managing work area organizations that ingest customer orders, and either passes them inside to different customers or take the far edge of the exchange. Market producers or managing work area agents don’t interface dealers to a worldwide liquidity pool or the interbank trade. Along these lines, all orders are circulated among customers, and the dealer has the choice to either take care of requests from their customers or reject them totally as per the market’s liquidity.

Because of the 24 hours nature of the FX market, representatives experience variable liquidity and conflicting volumes for the duration of the day. It is near unthinkable for the merchant to discover purchasers and dealers for a similar volume without fail; subsequently, most intermediaries resort to taking the contrary side of their broker’s position. Since the FX market tends to make a bigger number of victors than failures, expedites, as a rule, prevail regarding benefitting from their customer’s misfortunes. Aside from the spreads, customers’ misfortunes go about as the essential wellspring of income for managing work area representatives.

Since market creators benefit from their customer’s misfortunes, all managing work area merchants have an irreconcilable circumstance with their clients. Loads of specialist tricks and untrustworthy representative practices emerge from the dealer’s covetousness to bring in cash from their customers. Most market creators resort to strategies, for example, cost control, disengaging the cost takes care of, expanding the spreads, taking care of requests at ominous value levels, and in any event, turning to change customer orders without their assent. Thusly, a larger part of brokers will, in general, lose cash with market producers.

STP Forex intermediaries are clearer in their contributions, as they, for the most part, don’t have an irreconcilable situation with their customers. All customer orders are passed straightforwardly to the liquidity supplier, and the business sectors by and large ingest the request with no mediation from the representative. STP representatives bring in cash from the spreads charged for each exchange, which is useful for the two players, all things considered.

It isn’t unexpected to encounter a critical number of re-statements and enormous slippages from market creator specialists during low liquidity seasons in the business sectors. Now and again, managing work area specialists will set aside a great deal of effort to take care of requests, which can go from a few seconds to minutes. Dealers may likewise confront stage-down occasions, which can keep them from opening or shutting their situations under great conditions. Despite what might be expected, STP accounts help decrease the number of re-cites as a dealer is associated with a bigger liquidity pool, and orders are filled moderately quicker than regular market producer accounts. One of the fundamental benefits of STP dealers is how orders are filled all the more rapidly, and exchange execution is consistent, which thusly causes merchants to exploit economic situations without the intermediary meddling in any way.

What Can be Called a Dealing Desk?

Many times as market makers, we typically mean DD brokers. Since these brokers typically hold the opposite direction of traders’ deals, the controversial word “market makers” has been used. They generally create money by spreads or by liquidity provision. Before taking a countertrade or handing it over to a liquidity supplier, they even attempt to find a suitable short or long order with their other customers. They are proven to produce artificial quotations; however, on a proportionate basis, orders are completed.

What Can be Called a No Dealing Desk?

NDD brokers employ software without the need for a dealing desk and channel trading orders straight to liquidity suppliers instead of a DD broker. With stronger and quicker loads, this helps consumers to enter actual markets. It is a connection between consumers and suppliers of liquidity, and if an order has to be completed, there are really no re-quotes. We distinguish between both the STP and the ECN, two main types of NDD Forex Brokerage firms.

STP Forex Broker Definition

A no dealing desk is required for the Straight Through Processing (STP) system. Both requests are directed to the liquidity suppliers of the broker, and rates are handled at the bid or ask rate issued by the suppliers of liquidity. Liquidity suppliers in this situation are hedge funds, large banks, plus investors who essentially serve as counterparties to each transaction. The STP currency broker typically seems to have an internal liquidity stream represented by multiple suppliers of liquidity who negotiate for the highest bid or ask ranges for STP broker trades.

In a wider context, STP implies that instead of a dealing desk reprocessing transaction, the broker firm plays a quiet link supplier between the client and the dealer. A ‘DMA’ is another advantage of an STP currency broker. DMA refers to Entry from the Direct Markets. DMA applies when dealers specifically transfer their customer requests to their liquidity pool; thus, transactions are fulfilled at the highest possible price, with the dealer spreading only a slight mark-up.

The brokerage with one of the most adjustable spreads is the one that you can always reach for. The explanation with this is that the dealer with the most flexible spreads is free to choose from their own collection the winning offer from one of the liquidity suppliers, and the better spread from some other liquidity supplier. That clearly gives their customers the finest spread. The STP implementation clearly goes with no requotes, and owing to its lightning pace; it is quite perfect for traders that like to scalp and exchange the information.

What Does It Mean by an ECN Forex broker?

Both STP and ECN Forex dealers seem to be several links, but the only real distinction is navigation. As described before, the STP can negotiate with various liquidity suppliers out of the liquidity pool, whereas the ECN functions as some hub. This hub serves efficiently as the significant funding outlet, as it is embodied by banks, fund managers, and all the big market participants.

To locate counterparties with the instructions they seem unable to manage individually, they become all intertwined. Another distinction is that ECN trade is often limited at a nominal lot size of 0.1 between the STP and the ECN. That’s because there are only a few sources of liquidity that accept only about 0.1 lots, which is tough for novice traders who really need to exchange lower sums of capital (like, between 1000-2000 EURO). Thus, as a response, a hybrid model was constructed.

Does A STP Account Guarantee No Intervention from A Broker?

STP works through a scaffold that associates a dealer’s terminal straightforwardly to a liquidity supplier or an interbank. More modest representatives likewise utilize STP spans to interface their dealers to huge intermediaries, who will, thus, decide to either associate the merchant straightforwardly to the market or choose to ingest the exchanges inside. In this way, STP is certainly not a genuine ECN elective, as ECN dealers have no job in topping off their customers’ orders. STP, then again, permits intermediaries to take advantage of a bigger liquidity pool that is given either by the worldwide trade houses or by bigger specialists. In this way, STP Forex representatives are not totally liberated from irreconcilable situations. Yet, STP accounts give a more prominent suspicion that all is well and good than conventional market producer merchants.

Difference between ECN and STP broker

Differences between ECN and STP brokers are:

  • ECN accounts use a hub routing system for trading orders, while STP brokers use a liquidity pool.
  • ECN minimum lot size is 1 mini lot while STP broker minimum lot size is 1 micro lot.
  • ECN accounts traders will be charged a fixed commission for opening and closing trades, while STP accounts charge commission using spreads from liquidity providers.

 

STP and ECN have a few comparable qualities. Yet, a few dealers lean toward STP in its unadulterated structure because of the absence of a commission for each exchange normally connected with ECN accounts. Most institutional merchants open ECN records to appreciate more tight spreads at the expense of a commission for each exchange charged as a level of the exchanged parcels. Hawkers are additionally known to exchange with ECN conditions to get in and out of the business sectors as fast as could really be expected and appreciate more tight spreads for better market execution. Notwithstanding, some retail merchants are more alright with the higher STP spreads instead of representing each exchange’s commission. Hence, if commission-streamlined commerce is your need, STP records can give a larger number of benefits than ECN accounts.

ECN has a high ground over ordinary STP accounts as brokers are presented to the real liquidity accessible on the lookout regarding exchange execution speed. STP records might be crossed over to bigger specialists or trade houses, resulting in more slow exchange execution times and a couple of re-cites. ECN accounts have negligible occurrences of re-statements. It is ensured that a dealer’s position will be filled at the strike cost, regardless of whether it is a fractional satisfaction of the request.

How Do I Make the Choice Between ECN and STP Forex Brokers?

On the off chance that you think it’s hard to settle on ECN and STP’s decision, you should exchange on a demo record to get comfortable with the two stages and settle on a framework that suits your exchanging style. A few dealers may discover ECN to be more costly from a commission perspective. However, they might be astounded to discover that ECN records may end up being more prudent over the long haul. ECN accounts give the best-exchanging conditions; in any case, STP accounts are not a long way behind the speed of exchanging and the general exchanging climate. Despite your decision, consistently pick a Forex intermediary that a legitimate administrative office directs and guarantee that the agent of your decision has a decent standing on the lookout. Straight Through Processing or STP Brokers are sending merchants’ orders straightforwardly to the market without managing work area mediation (or NDD) implies directly to the liquidity suppliers the market is predictable of and the one’s specific specialist participating with.

Regularly, the representative has numerous liquidity suppliers: either banks or bigger intermediaries producing its own offer and ask cost. Notwithstanding, it’s an alternative to execute through one liquidity supplier, as certain representatives rehearsing that, thus bringing further liquidity pool.

The STP execution likewise implies there is no re-statement or deferral in taking care of requests. The innovation executes in extraordinary speed, sorts cite among the contribution and takes care of requests at best accessible cost adding-on little fixed markup normally 1 pip to the statement. Frequently, the STP type brings variable spreads because of the evolving offer/ask costs, yet at a serious spread worth generally lower than Market Makers.

In any case, one of the benefits of STP execution is that the specialist never makes benefits on customers’ misfortunes since the organization acquires its net from various executed requests and keener on the exchanging sizes.

What is the hybrid account?

A mix of the ECN and the STP can be called the Hybrid account model. Generally, dealers are willing to offer excellent client support, training, and multiple industry assessments for this arrangement. A complete electronic Forex trading operation is possible by combining the ECN and STP versions. This famous combination enables a Forex broker to completely optimize the customer orders, coping with spread prices and the facets of their transaction execution company’s trading activity.

Conclusion

For Currency traders, nevertheless, the hybrid version is an excellent choice. Brokers prevent market manipulation with both the STP and the ECN versions. For dealers and brokers, too, that is a winning scenario. Brokers would not want traders to fail because the more customers choose their platform to sell, they can gain money from spread or commission.

What is Pure Play Company?

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You are a stock investor, and you just heard about interesting company shares. But, you got a warning that it is a pure-play stock. What is that? So, let us see the pure-play definition.

What is Pure Play’s business model?
The pure-play business model represents a company that specializes in a particular product or service area to increase market share and brand awareness. Pure Play companies focus on only one business line, have easy-to-understand cash flows and revenues, come with a higher degree of investment risk, and tend to do poorly in bear markets.

Pure Play company example

The best example of a pure-play stock is Starbucks company (SBUX). Starbuck’ company pure plays in coffee. Starbucks does not offer food or any other line except coffee. So, if you as an investor believes in rising prices of the caffeinated commodity, then you can buy SBUX. If caffeinated commodity rises, SBUX will rise too.

Maytag Corp. has been named a pure-play organization, as it makes home and business apparatuses. In contrast, in an examination, General Electric makes home and business machines and has other product offerings (i.e., motors) in different industry verticals (i.e., flying).

To sum up:

What is a pure-play stock?

Pure plays stock from pure-play companies that focus on only one business line and one niche market. When price rises in that niche market, stocks price rises too.

Below is a video example, how to find a pure-play stock that might be a big winner during the holiday season:

Pure play retailers (e-rears)

Pure play is additionally used to portray online business organizations that lone sell through the web and not through different channels. In its initial days, Amazon was referred to as an illustration of a pure-play web retailer, as it had no actual stores. Also, the expression “pure-play” has been utilized to depict organizations that work over the web. By this definition, some state Facebook is a pure-play organization.

Pure play and stock exchange

Pure play is also utilized in the stock exchanging and speculation world, alluding to organizations that emphasize and have some expertise in a specific item or administration territory while barring other market openings. The “pure-play technique” is utilized to assess an undertaking’s beta or the danger and affectability of a venture. For instance, a pure-play organization may use the technique to recognize publicly exchanged firms that are occupied with incidents like the one they are focusing on.

Why invest in Pure Plays?

Investors should invest in pure plays companies because their revenues and cash flows are much easier to follow and understand, easier to analyze. Pure plays companies have a niche market, and when this market rises, pure plays stocks rise too (If caffeinated commodity rises, SBUX will rise too).

Advantages and disadvantages of pure-play

There are advantages and disadvantages related to being a pure-play organization. At a pure-play business, organization pioneers can zero in on the restricted arrangement of capabilities that help their single item or support and confine their ventures to a center arrangement of requirements. This laser center can prompt an upper hand, making the business a perceived master or pioneer in that space. Notwithstanding, a pure-play organization is more touchy to the financial and market influences that sway that space versus an enhanced organization. The organization may profit lopsidedly when those powers favor development, yet that equivalent organization can endure all the more fundamentally when confronting negative economic situations.

Albeit “pure-play” is acknowledged business speech, there are a few ambiguities and differences on how extensively or barely the term ought to be applied. For instance, while some refer to Amazon as a pure-play web retailer, others state that the term does not make a difference anymore. The organization currently offers its circulation and innovation stage to other people – making it more expanded than a pure-play organization.

 

What Does Equity Mean in Forex?

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Traders usually understand the term “balance” in the account. But let us see what accounts equity is.

What Does Equity Mean in Forex?

Account equity in forex trading means the total current value of a forex trader’s account, equal to the account balance plus or minus any profit or loss from open positions. When there are no open trades in the trading account, equity is as same as the trading balance. When the trading account is in profit, equity equals the sum of balance and floating profits. When the trading account is in loss, equity equals the sum of balance and floating losses.

In simple words, equity refers to traders’ money in their trading accounts plus or minus any profit or loss from open positions.

Below you can see a video about equity in forex:

The equity formula is:
Equity = Account Balance + Floating Profits (or Losses)

Forex equity examples:

Example 1: Forex account equity without trades
Let us assume that the trader has a $1000 account.
The trader doesn’t have any open trades.

In this case: Equity = Account Balance = $1000

Example 2: Forex account equity in the profitable account:
Let us assume that the trader has a $1000 account. And trader has 1 mini lot open position 10 pips in profit:
In this case: Equity = Account Balance + Floating Profit = $1000 + $10 = $1010.

Example 3: Forex account equity in the loss account:
Let us assume that the trader has a $1000 account. And trader has 1 mini lot open position 10 pips in loss:
In this case: Equity = Account Balance + Floating Loss = $1000 – $10 = $990.

Difference between balance and equity in forex

What is the difference between balance and equity in forex?
The difference between balance and equity in forex is that equity is equal to the account balance plus or minus any profit or loss from open positions. Balance and equity value are the same when there are no open positions in a forex trading account. The equity value is higher than the balance when the forex trading account is in profit. The equity value is lower than the balance when the forex trading account is in the loss.

Equity in business is something different.

What does equity mean in business?

Company Equity represents residual value to shareholders. Equity for shareholders is a company’s value that would be returned to a company’s shareholders if all assets were liquidated. All of the company’s debts were paid off.

What Does Trailing Stop Mean?

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As we define in the previous article “What is stop-loss order,” a stop-loss order is an instruction placed with a broker to buy or sell a security by setting a stop loss level, a specified amount of pips away from the entry price.

The stop-loss price level can be fixed, but it can change too. So, What is the trailing stop order?


A trailing stop or trailing stop-loss is an order that moves the stop-loss price level with each new price tick by the trial amount or trailing stop loss percentage away from an asset’s current market price. For BUY trade, if the security price rises, the stop price rises by the trail amount, but the stop-loss price doesn’t change if the security price falls. For the SELL trade, if the security price is going down, the stop price fall by the trail amount, but if the security price is going up, the stop-loss price doesn’t change.

What is a trailing stop quote? Many brokers use the term trailing stop quote to make it clear that the stop order will only be triggered once a valid quoted price level in the market has been met, without negative slippage.
In that case, if we have a BUY order and EURUSD has a 1.3 price level stop loss, the order will close exactly 1.3 or above 1.3.

Trailing stop BUY example: If we buy the asset at $100 and set a trailing stop to be $10 from the beginning price, then when the price goes to $102, my new stop loss will be $102-$10=$92. If the price goes to $150, then my stop loss will move to $150-$10=$140, etc. Instead of a fixed dollar amount, we can use the percentage.

How does a trailing stop work in forex

The reality is that several traders realize that they should accept their losses and let them go as quickly as possible. On the other hand, they also have been told that they should let their profits continue to flow for an extended period. Yet, if someone is not aware of a tool to aid in implementing this strategy, it is necessary to understand how to use trailing stop in forex. It is quite similar to the application of the usage of a stop order that is regular, but it can be placed to flow with the market.

For example, if you desire to ride along with the EUR/USD, you place an emergency stop that will undergo a phase of triggering if the market happens to not move in your favor. Following the passing of a day or a few more, when the trade is tending toward your turn, you desire to conduct a locking in some profit to find out what will occur. It is possible to place a stop in the territory of a positive gain. This could be seen as the placement of a trailing stop. If there is the continuance of the market flowing toward your favor, the profit you have locked in will increase. This will be an ongoing favorable situation until the market slides back in a downward trend and reaches your stop placement.

The trailing stop’s critical role is to engage in the augmentation of the profit lock while the market is in a moving phase. As such, there is no requirement for you to engage in interventions or make adjustments. The trailing stop’s functionality permits you to follow trends with a level of safety in your preferred comfort zone so that there is no need for constant monitoring.

Regarding the trailing stop, you can also engage in the trailing stop placement for the sake of longer-term trading. You can place your stop far removed from the market trend and permit things to undergo development. This works rather successfully for slow trading systems, which tend to engage in the locking in of profits for extended months or days. When someone participates in setting up a target that is long-term, then it is truly advised to place a trailing stop as well. This will permit the person to set up the total trade at an early stage while granting it the freedom to take its route.

With the reality that the forex market is running for a time frame of twenty-four hours over six days each week, this results in the need for many hours to undergo monitoring. Instead of enduring a lack of sleep or interrupted sleep, it makes wise sense to apply the trailing stop to one’s trade in this case. The remarkable result is that the lock of your profit can increase even when you are soundly asleep. The market will continue to go on as it does, while your trade will be able to conduct any needful adjustments or stops.

Disadvantages of trailing stop loss

The main disadvantages of trailing stop loss are:

    • Bad results during sideways market
    • Very often trailing stop loss do not ride the main trend
    • Price can not fluctuate enough and a lot of profitable trades are closed
    • The stronger trend has very often stronger pull back and trailing stop loss too early close trades

Some traders advise avoiding trailing stop loss because they are automatic.
Automatic trailing stops loss move stop loss always per defined number of pips or percentage without analyzing the current market situation. For example, an automatic trailing stop loss can move the stop price level for 15 pips all the time; even that market has 100 pips daily volatility (ATR) or 250 pips daily volatility.

Static stops are great for novice traders as they make them aware of this tool and help them understand risk management. Trailing stops are for those looking to maximize their profits and have already learned the other concepts. This type is about money management rather than risk management. These stops are not stationary and move as the trades move in favor of the trader.

Here’s an example of your understanding. Let’s assume that a trader has taken an extended position and is trading EUR/USD at 1.3200. The pip stop is at 1.3150, with a 100 pip limit at 1.3300. Consider a situation in which this trader decides to move up to 1.325o; he will adjust the stop up to 1.3200. This 0.050 up the original stop value. A trailing stop moves to the entry price of the trader or the breakeven price. This means that if his chosen currency pair reverses and moves against him, the trailing stop will protect the gains that he made at his original position.

Traders can remove the initial risk by using this break-even stop permit. They will feel protected and can move to other Forex trade opportunities. The trailing stop has different types; the easiest one to work with is a dynamic trailing stop. It adjusts the stop for every single pip that will move in favor of the trader. Taking the same example mentioned above, if our currency pair moves to 1.3201 (1.3200 being the starting entry), the stop will automatically adjust to 1.3151.

How the best way to use trailing stops?

If you want more control over the stops, you can always move them manually. Experienced traders who like to trade in a fast-moving market or do trend trading often move the stops manually. This is because the price action is critical in this kind of trading.

Trailing Stop after hours

So, do trailing stops work after hours? Trailing stop orders won’t execute during after hours, the extended-hours session. The trailing stop orders that traders set during extended-hours will queue for the market open of the next trading day. This trailing stop after-hours rule applies to any trading platform or trading broker.

Should you use a trailing stop loss?
Trailing stop loss can be an interesting trading strategy, but traders need to avoid a completely automated trailing stop process. The best results traders can get if they manually set trailing amount or percentage based on current market conditions.

Forex Technical Analysis for Beginners

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As a forex trader, you may have thought of various ways in which you can enter and exit a trade at the right time to gain profit, right? One of such ways is forex technical analysis. Forex technical analysis is viral among the market players and can be done using charts and trade indicators. Though you are new to this field, this article will clear all your doubts about forex technical analysis and how it can help you predict the market trends.

Forex Technical Analysis for Beginners

Technical analysis helps analyze market price movements through the historical charts and indicators so traders can get a hold of future market trends. It uses past trends to predict future trends and market performance before entering a trade. Various candlestick patterns or charts help form indicators. A forex trader uses mostly price and volume data in technical analysis.

The difference between the fundamental and technical analysis lies in the fact that while fundamental analysis considers economic changes and related aspects as the primary contributor, the technical analysis considers past trends. A trader needs to be aware of fundamental and technical analysis basics so that he/she can take advantage by combining them.

Benefits of Using Technical Analysis

Technical analysis is an excellent tool for risk management to prevent downside risk. By understanding the principles and various forex technical analysis concepts, traders can develop their own suitable strategy to trade different currencies. Unlike fundamental analysis, which helps derive the intrinsic value of the market, technical analysis helps find trends and patterns caused by the fundamentals changes.

There are three main benefits of implementing technical analysis in forex trading.

  •       It can be used as an indicator to enter and exit the market.
  •       It can be used at any market time frame.
  •       It helps in identifying the trends of the market.

Forex technical analysis Tool – Charts

Historical charts are very useful in forex technical analysis. A chart consists of two things, the past and the present price of the market, which is the starting point to decide how profitable trade can be. The market price is the most significant representation of the market and thus holds the most importance.

Technical charts can help derive the overall market trend from deciding whether the market would soar or slump over any time frame, including hourly, daily, weekly, or even monthly frames. Prices are monitored in various candlestick patterns (for example, cup and handle pattern) or charts, known as price ranges.  The commonly used charts in current times are bar charts, candlestick charts, and line charts.

A technical chart has four main points – the opening price, closing price, high point, and the low point. The relationship between the prices and the pattern can give signs to traders for entering and exiting trades. By understanding the basics of forex technical analysis, beginners can implement and combine the charts and indicators to forecast the future.

What is Forex Technical Analysis Indicators?

Forex technical analysis indicators are useful when a trader is looking to get an opportunity to trade. Most technical analysis indicators are based on volume and price, just like the charts. Though indicator aids in finding the support and resistance levels and how long a trader should hold the trade. A trader can get the current market perspective by utilizing multiple time frame analysis for price or volume-based ranges and changes.

These are some of the most used forex technical analysis indicators,

  • Relative Strength Index (RSI)
  • Moving Averages
  • Moving average convergence divergence (MACD)
  • Bollinger Bands
  • Stochastics
  • MACD

While MACD and moving averages are key for finding market trends, RSI identifies the entry and exit points.

The most important step is to read a good technical analysis book:
Technical Analysis of the Financial Markets, by John J. Murphy
This book is written in straightforward language; you should read it along with the first book to fully understand its content. This is the best book written about forex and stock trading, in my opinion. This is a University book.

Let start the basic things in technical analysis:
1) Oscillators technical indicators

2) RSI Oscillator
In this video, you can learn everything about RSI and how to use it in analysis:

3) Trend lines as an important tool in trading for each beginner trader is presented below:

4) When you learn trend lines, the next thing is to learn are Fibonacci levels, which are presented in the video below:

5) Next thing that novice traders need to learn are candlestick patterns that are presented below in the video:

These are major things in technical analysis to learn.

Conclusion

As a beginner in the forex market, you can also keep yourself updated with the latest trends, news, and events happening across the globe. It would give you a good edge over your trades as the forex market is susceptible to global events.

As a novice trader, you are advised to trade on a practice account and can try different technical analysis patterns and tools on those dummy systems to learn new things. By doing so, you would make mistakes but won’t lose your actual money. You can find such demo accounts from brokers worldwide as it has become a trend in current times.

You should also not fall in any “Get your profit doubled in a month” kind of scams (read our article about forex scams) as there is nothing in this world that gives you easy money without skills and hard work involved. In the end, it’s about how much you are passionate about trading, how much knowledge you have, and how much you are willing to learn through your mistakes.  

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