(+) News and Promotions

What famous investors have to say about the FED raising rates

Investors worry the Fed risks a recession by paying too much attention to inflation data and raising interest rates too much, so here's what Stanley Druckenmiller, Barry Sternlicht, and other Fed watchers had to say.

Key Takeaways

• We've had almost 15 years of free money that changed the economic structure and created asset bubbles
• Now, the Fed tries to fight inflation but it actually follows the 2-year Treasury yield
• However, it looks like the Fed might overtighten money liquidity, as it is getting more and more aggressive
• That overtighten may bring more troubles to the economy
• Druckenmiller said there is a high probability that the market is going to be kind of flat for 10 years
• More jumbo rate hikes from the Fed will spark a US recession and a housing crash
• If the Fed pops this bubble, we will be in a deflationary spiral

Read more: Stanley Druckenmiller says the Fed is like a 'reformed smoker

Support and Resistance Trading Strategy

When you begin your journey and take your first steps in online foreign exchange trading, you quickly realize the prevalence of technical analysis and technical trading strategies. While this may seem intimidating at first, with the right foreign exchange broker, you can quickly understand these strategies and why they are so popular. One key reason is that they provide traders with important market insights that are often proven correct.

The Fundamentals of Support and Resistance Strategy

Support and resistance are generally defined as follows: support is the area where the price is expected to hold or stop falling, while resistance is the upper area that prices are unlikely to exceed within a given market trend.

In technical analysis, support and resistance lines are drawn using angled lines called trend lines. If a market struggles or reverses at a point twice in succession, a horizontal line is drawn. In an upward trending market, both highs and lows are higher. The opposite is true in a downward trending market, where both highs and lows are lower. By connecting these highs and lows and extending the line to the right, you can clearly identify the support and resistance zones.

When trading stocks and forex, any reputable trading platform should provide various technical indicators to help display these zones. Many successful forex traders regularly use these technical indicators to their advantage.

Types and Features of Support and Resistance

Support and resistance levels can be either minor or major. When trading forex currencies online, you will soon learn to recognize these levels and the patterns that develop as they form.

Read more: Support and Resistance Trading Strategy

Binary or Digital Options (*) are a relatively new form of trading in the global financial markets. Trading binary options results in only two possible outcomes for a trader: win or lose (0/1). If the trade is correct (a win), the trader can earn payouts of 65-95%. If the trade loses, the trader may receive a refund of 0-15%. In most cases, the combined total of the Payout and Refund Rates does not exceed 90% of the initial trade value.

(*) Extremely Risky Financial Instruments

✅ Advantages -Why Trading Binary Options?

1) You may trade any popular financial market (Forex, Stocks, Indices, Commodities, etc)

2) You don’t have to pay any Margin on a trade (No Margin Calls)

3) You may profit from both a Bull or a Bear (falling) Market

❌ Disadvantages -Why Trading Binary Options?

1) Extremely risky asset class

2) Legal restrictions in many countries

3) Not easy to find reliable binary options brokers (many scams)

» Binary Options Strategies

📌 The Basics when Trading Binary Options

Here are the basic terms when trading binary options:

• Call / Put: It defines if you trade a Bull Market (Call) or a Bear Market (Put)

• Expiry date: Defines the duration of an opened position

• Strike price: It is the price that defines the Win/Loss

• Payout: It defines the Return you get if your trade wins

• Refund Rate: It defines the Refund you get if your trade loses

  Read more: Binary Options Tutorial

Forex Auto Trading Systems (Pros and Cons)

What is an Auto-Trading System?

An automated (or mechanical) trading system is a combination of hardware and software that follows a specific set of rules to execute trades 24 hours a day, five days a week. Once programmed, the system can automatically open and close positions using a computer, a trading platform, and an internet connection. The entry and exit rules can be based on various conditions, including price, volume, time, and volatility.

Effective use of a Forex auto-trading system requires advanced technology and a reliable Forex Broker.

Here are some key pros and cons when using a Forex auto-trading system:

(√) Auto-Trading Pros

(1) Automation (Saving Time)

As an auto-trading system trades 100% autonomously, traders can save precious time and focus on other fields of their life.

(2) Trading 24/5

An auto-trading system can trade without sleep or rest on a 24/5 basis.

(3) Speed of Execution

An auto-trading system can analyze the market considerably faster than any human trader but also to execute trades at a glance. This can be a great advantage in times of extreme volatility (i.e. times of news releases).

(4) Objectivity of Decision Making

Human traders usually suffer from stress and follow an emotional decision-making procedure. Auto-trade systems follow their programming rules in a 100% objective and repeatable manner.

Read more: Forex Auto Trading Systems (Pros and Cons)

♞ What Are the Best Forex Trading Strategies That Actually Work?

Forex trading is risky even at the best of times, but it is possible to find strategies that allow you to succeed without risking your livelihood. Top traders have done the work for you by identifying the best Forex trading strategies that actually work.

The Bladerunner Trade

The Bladerunner Trade uses price action to find entry points. It is suitable for all timeframes and currency pairs. It is very popular because it works and requires no indicators.

Daily Fibonacci Pivot Trade

This strategy combines Fibonacci retracements and extensions to find entries. It uses daily pivots only but can incorporate multiple pivots.

Bolly Band Bounce Trade

This strategy is definitely worth considering, as it is ideal for ranging markets. It works better than most other strategies, especially when combined with other confirming signals.

Forex Overlapping Fibonacci Trade

This is a more advanced step after using Fibonacci retracements and extensions. These tools are favored by many traders. Although their reliability tends to be somewhat lower than other strategies, when combined with appropriate confirming signals, they become highly accurate.

The Pop 'n' Stop Trade

This Forex trading strategy helps you predict whether the price of a rising trade will continue to rise or suddenly fall.

Trading the Forex Fractal

This concept is essential when using other strategies. It provides fundamental market insight, which helps you trade more effectively.

Read more: Forex Strategies that Work

5 Trading Tips for Beginners

Starting out in Forex trading can be daunting and overwhelming. It's easy to feel lost and get buried under the sheer amount of information available. The best thing you can do for both your trading and your peace of mind is to take it slowly.

Here, there are 10 basic points for Forex beginners:

1. Start with the basics – this may seem obvious, but it is amazing how many people actually jump feet first into the markets without any knowledge of the market they are trading. Take your time to understand how the forex market works before trying to learn trading strategies.

2. Stick to one strategy - there are so many different trading strategies out there that it can be tempting to keep changing every time you trade. Don’t. Stick to one trading strategy which you consider to be logical and easy to understand. Try to master that strategy. Don’t swap just because you lost a few traders, any strategy will provide some losing trades.

Read more: Tips for Beginners Traders