Category Archives: Plain Forex Trading Club

ClickTrades Highlights

A website operated by KW Investments Limited, clicktrades.com is authorized and regulated by the Seychelles Financial Services Authority (FSA), with license number SD020. The broker offers access to more than 2,100 instruments, ranging from CFDs on Forex, shares, blends, indices, commodities, cryptocurrencies, bonds, and ETFs.

Trading with ClickTrades opens access to numerous trading benefits, including competitive spreads, trusted trading software, educational resources, and premium trading tools such as Trading Central.

With years of experience in the CFD trading industry, ClickTrades earned a solid reputation and it is now operating for customers based in different countries, except for Japan, Canada, the USA, and other restricted areas.

Our ClickTrades review will explore some of the main benefits and will try to provide enough resources for someone to decide whether this is the right trading partner to work with.

Trading Software

At ClickTrades traders are able to choose between two trusted platforms to make their trading journey one to remember. We begin with the ClickTrades WebTrader, a versatile and customizable platform, offering access to the markets via any device supporting a modern browser. Since it integrates analytical tools, multiple charting techniques, and some other extra features, traders are currently using it extensively.

Available on both desktop (Windows and Mac) and mobile (Android), while also integrating the popular Trading Central, WebTrader is an excellent package of resources for analysis and recommendations provided by financial experts.

To make sure that its offer is complete and diverse, ClickTrades has also introduced support for the popular MetaTrader 5. Intuitive and user-friendly, with diverse execution modes, a wide range of analytical tools, lightning-fast trading execution, and the ability to use Expert Advisors, MT5 is one of the top picks among retail CFD traders. They can download it for Desktop, or get the app from Google Play to use it on mobile, as well.

ClickTrades Assets          

Traders working with ClickTrades have the ability to get involved in more than 2,100 assets, including CFDs on forex, shares, blends, indices, commodities, cryptocurrencies, bonds, and ETFs. As all financial markets have been active this year, trading with this brand means you will be able to diversify.

In terms of conditions, the ClickTrades forex trading offer comes with fixed/variable spreads and up to 1:300 leverage. For all other asset classes, spreads are variable and the leverage decreases, depending on the instruments. The broker had also introduced a 0-commission trading offer, which further enhances the competitiveness of the trading costs.

You can trade CFDs on stocks from the healthcare sector, some that are related to COVID-19 vaccines, and try to benefit from the increased volatility. Or you can get involved in CFDs on indices, ETFs, FX, or bonds, in case you want to deal in some of the most popular markets.

Account Types

Essential, Original, and Signature are the three account types currently available with ClickTrades. Each will require a certain initial deposit and at the same time, will provide access to proportionate trading features and functionalities. The trading schedule is from Monday to Friday, including cryptocurrencies.

Traders can test strategies on a demo account and benefit from different resources provided by the broker to get more educated or to get more insights into the market performance. When it comes to Trading Central, only Signature account holders will get access to it. At the same time, most Premium trading conditions will be available for these clients.

Education

ClickTrades definitely considers trading education seriously, as the brand currently provides access to comprehensive resources, including full access to a video library, daily market news & financial research, daily analyst recommendations from a 3^rd party, support from a dedicated account representative, or one-to-one meetings with an account representative.

If you are a beginner or an intermediate trader, these educational tools will serve along the way as a great inspiration and will provide quality information to enhance your skills.

ClickTrades Conclusion

After considering most of the important trading features provided by ClickTrades, we can conclude the broker is trusted and offers combative trading conditions for its customers.

Backed by a renowned financial investment company, ClickTrades positioned itself as one of the biggest trading brands in this industry.

We can recommend it to anyone looking to trade CFDs and aiming to get involved in different markets with ease. There is absolutely no reason to believe ClickTrades is a scam, given its transparency and commitment to the highest regulatory standards.

Risk Warning: The materials contained on this document are not made by ClickTrades but by an independent third party and should not in any way be construed, either explicitly or implicitly, directly or indirectly, as investment advice, recommendation or suggestion of an investment strategy with respect to a financial instrument, in any manner whatsoever. Trading CDF’s involves significant risk of loss

TRADE.com Highlights

TRADE.com is a trade name operated by Trade Capital Markets (TCM) Ltd, which is regulated by CySEC and South Africa’s FSCA, and by Livemarkets Limited, it’s authorized and regulated in the United Kingdom by the Financial Conduct Authority (FCA).

Since the brand follows very strict guidelines with regards to clients’ funds and the highest standard of account management service, TRADE.com has built itself a solid reputation in the online trading industry.

Its services cover CFDs, Thematic Portfolios, IPOs, and Asset Management. This TRADE.com review will focus mainly on the forex and CFDs offer since that’s one of the most demanded offers at present.

Trading Software

One of the best news for traders wanting to work with TRADE.com comes from the fact that the broker supports multiple platforms. We should first talk about WebTrader, the proprietary platform that is constantly upgraded by the broker.

The latest generation includes multi-chart display windows with independent chart functions, mobile compatibility, integrated tools like Trading Central, Events & Trade, and others, secure management tools, style and chart settings, and invaluable access to online assistance 24/5. With the WebTrader, you can trade on more than 2,1000 CFDs, covering a broad range of markets.

On top of it, TRADE.com also provides access to the popular MetaTrader 4, through both desktop and mobile interfaces. Since it has a good reputation, many traders will choose to use the MT4, thanks to a set of features such as automated trading, alerts, and other customization tools.

TRADE.com Assets

If we talk about the CFD assets available with TRADE.com, their offer includes more than 2,100 instruments, including Forex, stocks, indices, commodities, ETFs, bonds, and crypto.

You can go long or short on any of the assets, with spreads starting from as little as 0.4 pips, depending on the account type chosen.

The TRADE.com forex offer stands out, considering there are 55 currency pairs available for trading 24/5, tight spreads, and flexible leverage, depending on the type of clients. Compliant with the latest European regulation, the broker splits clients into Retail and Professional. For retail traders, the maximum leverage for forex is 1:30, while professionals benefit from up to 1:300 leverage.

Aside from forex CFDs, clients can diversify with stocks, indices, or ETFs. At the same time, they can invest in commodities or some of the most popular cryptocurrencies. Lastly, the offer includes some of the top bonds in the world, in case traders want exposure on this market, generally popular among institutional investors.

Account Types

Starting to trade with TRADE.com is very convenient, considering a Micro account can be opened with as little as $100. To ensure a broad diversification, the offer includes Silver, Gold, Platinum, and Exclusive accounts. In exchange for larger deposits, clients will benefit from enhanced trading conditions, including tighter spreads, daily analysis, Events & Trade, dedicated account manager, premium daily analysis, and other helpful features.

Access to the popular Trading Central, a top technical analysis tool currently trending among retail traders, is not ensured for Micro and Silver account holders. Only traders that can qualify for a Professional account will be able to benefit from enhanced trading conditions.

For customers based in the UK, who want to benefit from a capital gains tax exemption and no stamp duty payable, TRADE.com also offers Spread Betting accounts. They can spread bet across forex, commodities, stocks, and cryptocurrencies, with leverage and low commissions, via a user-friendly platform.

Education

Depending on the account type chosen, traders working with TRADE.com can benefit from a multitude of educational resources.

Premium daily analysis, assistance from an account manager, access to the Trading Central, and others are available. We must emphasize Trading Central, because that is currently one of the most efficient technical analysis tools, and thankfully, it is available with TRADE.com, as well.

TRADE.com Conclusion

Considering it is a well-established brand, which is regulated by a number of respected financial regulators around the world, TRADE.com is without a doubt one of the more trusted brokers currently active in the market.

It had managed to achieve consistency by offering high-quality services for years in a row, and in the meantime, had managed to accumulate a large customer base.

If you want to trade CFDs or spread bet with TRADE.com, we are glad to say this is a broker you can trust. For more information on what it can offer, feel free to check the official website. That’s where you can see things in greater detail, or get in touch with one of the representatives.

HIGH RISK INVESTMENT WARNING: Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76.70% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

If you are not new to forex trading, you have probably heard about the stop loss hunting myth and it can generally influence the way traders perceive the market. That is why in this article we will digest this issue and make clear once and for all if stop loss hunting is true or not and what any forex trader can do in order to avoid being involved in such situations.

Retail trading and conflict of interest

One thing that most of the retail traders do not know is that any broker that lacks regulation and internal ethic is basically functioning as a betting company. This type of broker is literally opening positions on the other side of the market without telling anything to traders.

Also, the broker can see where the majority of people is placing stop losses and take profits, and by widening the spread (the difference between the bid and ask price) is able to trigger stops and thus make clients lose money.

What should a trader do?

You as a trader cannot stop this kind of activity, but you can take some measure in order to protect yourself. You must start to think outside of the box and take precautions, so you won’t work with a broker that does what we have described above.

The first thing to do is to choose a broker regulated by a strong and popular financial watchdog. The Financial Conduct Authority in the UK and the Securities and Exchange Commission in the United States are just two examples with that respect.

Another important aspect is the liquidity provider your broker works with. 5 digits quotes and a clear chart can prove that.

It is also a good thing to check for other broker’s quotes to see if there are significant discrepancies between them. If the liquidity provider is different, the quotes might vary a bit, but significant differences should ring alarm bells.

Your trading strategy should also be set correctly. Most of the beginners lack a deep understanding of the markets and blame the broker for their losses.

Trading forex requires a lot of work and many things to take into account. The small details can add up and in the long run, can generate huge returns. Make sure to take into account all the information we have mentioned here in order to avoid working with an online broker that only looks after its interests.

If you are reading this article you are most likely one of those that have a strong desire to achieve success in forex trading. However, when it comes to actually do what is required for that, you find it hard to implement all the things. Also, some of the information that had been given to you by all the “online expert traders” seems to be useless and that is why we want to give you a few trading tips that will certainly help you in your day to day activity.

Tip #1 Focus on the process not on the reward

We know that each one of you is trading because each of you wants to have more money. That is a fact which can’t be denied. However, focusing on the money and not paying 100% of your attention to the process that will eventually lead you to have more money, can end up with you actually losing money and become emotional when it comes to forex trading.

How you treat this activity is crucial if you want to be a professional forex trader. We’ve emphasized in a previous article, that treating forex like a business is the best way a person could approach this process.

Also, as we have learned from Jesse Livermore, understanding the fundamentals of the market and tracking its performance represent aspects of the trading process that you should focus on.

Tip #2 Constantly improve your game

Maybe you are one of those that already manage to get results trading forex. Maybe you have understood the market rhythm and you have developed a trading strategy that makes money. Congratulations on that, but things do not end here. There always room for the better, so this tip is to constantly look for ways that will improve your performance. You can do that by reviewing your trading activity. By doing so, you will be able to spot subtle details in your trading that could be optimized.

Tip #3 Don’t take yourself too serious

Even though you might be taking into account all the good information about trading (which is relatively impossible to do) you are still going to make mistakes. Agonizing on those mistakes and not be able to move forward can be a huge roadblock in your journey. Learn to embrace your weaknesses and your vulnerabilities and accept yourself just as you are right now. Without doing these things, you won’t be able to become a better person that you are now.

The Relative Strength Index is probably one of the most popular price indicators and it is being used by those traders who are at the beginning with forex trading. However, the indicator might be misleading for most of the traders, as they fail to understand it properly, which leads to some painful mistakes. In this article, we will cover the basics of RSI and we will also try to answer the question: Is RSI good for Forex trading?

General Information about RSI

What is RSI?

It is a technical indicator used to measure the strength of a particular trend, based on the closing price for a given period of time. The most popular period is 14, but other ones could be used, as well. The indicator can have a value between 0 and 100, with two levels being used as a threshold in order to determine in what kind of environment a particular asset is in.

If the RSI is located around or below the 30 level, that means we are in an oversold condition. A value above the 70 level will mean that an overbought condition is in play. Simple enough to understand, but some particularities will need to be taken into account in order to use the indicator properly.

Is RSI reliable?

It could be, but you must apply it in a certain context. Technical analysis is like an art, it can be mastered with time and in order to do that, you must practice and go over a lot of mistakes.

Now, getting back to RSI, let’s take an actual example from the chart. You can see below the EURUSD on the 4h chart and three situations we’ve spotted, two oversold and one overbought.

You can see that the market started to move in the opposite direction each time. The first thing to take into account is to use the indicator on a higher time frame. You could find signals on the smaller time frames, but it will most likely generate a lot of false signals.

The second thing and the last is to take signals that form on the dominant side of the market. In the example above, the pair had been in a bullish trend and buying the pair on oversold conditions would have generated strong signals, as it is highlighted on the chart.

An ordinary forex trader will go out and learn technical analysis, fundamental analysis, and sentiment analysis, as all the books and online courses are saying, but only a few go deeper than that and learn some subtle details of the market. That is what we are going to do today, as we aim to explain a bit what the market rhythm is and how it could help you to anticipate recurrent patterns in the market.

What does rhythm have to do with Forex?

Well, it does. The market functions exactly like a car piston. It cannot move in a single direction, without moving in the opposite. No matter how an impulsive trend it, if you zoom on the smaller time frames, you will see counter trend players. Their influence is small, but it exists. Now, this series of moves on both sides sometimes has predictable unfolding.

Let’s see an example from the chart, to explain the concept better.

Below we have the EURUSD on the 1h chart, a pair which had performed very well in 2017. What we have spotted there is a series of legs that are similar to each other.

The legs a, c, e, and g are considered consolidations on the other side of the dominant trend. On the other hand, legs b, d, f, and h, are impulsive moves in the dominant side of the market, since they cover more ground.

What we can notice there is this pattern of small consolidations followed by impulsive moves occurring four. This is what we mean by market rhythm. Is a recurring behavior of price which can lead to an anticipation of the future movements.

What you need to understand, though, is that not all the moves will be exactly the same. The length will be different, maybe some of them will cover more ground than the others. In such a liquid environment like the forex market, it is possible. What is important is to develop your focus and discipline in order to be able to spot this kind of price structure. Combined with a technical strategy it can lead to successful forex trades, for sure.

You’ve probably heard this phrase a lot of times and you haven’t manage to understand it. Also, even though you manage to understand, you don’t really find a way to apply it, so your actions will evolve for the better. Today we’ll cover this topic related to market psychology and mindset of trading and hopefully, you will be able to get what this is all about. We must say from the start that thinking outside of the box is a skill that can be practiced with time, so don’t worry if you are not able to master it right now.

Crowd behavior and its bad consequences

The Forex market is formed of a large number of people – a crowd and the way it evolves over is a result of the actions this large group makes. Some of them have a higher influence than other and so forth, but the bottom line is that crowd behavior drives the market.

If we analyze this crowd, we could see that we can split it into more categories. We will stick to just one of them- losers and winners, for the sake of the current subject.

People that are part of the winning side are able to understand the force of crowd behavior and anticipate what could influence that behavior in the future ahead. If they can anticipate the behavior that could lead to the anticipation of the market moves.

Source: pexels.com

Thinking outside of the box simply means having a collateral view of the situation and managing to form objective conclusions. A person who thinks outside the box will never act impulsively and will never take a trading position just because he thinks all the people are doing that.

The crowd behavior is influenced by emotions and if we talk about professional forex trading, those emotions must not intervene in the decision-making process. That is why most of the people do not manage to generate profits. They act impulsively most of the time, while professionals manage to think outside of the box and anticipate future moves. Easy to talk about, but it can take years to master this skill, so make sure to start from now.

In order to understand better the market psychology, this time we will discuss another interesting concept, which is the risk aversion. The current economic context is another reason why we want to approach this subject. The global economy had been expanding since 2011 and since 2009 in the United States. A recession is something normal in this case, as the economic cycles principle is stating. During those periods, risks aversion appears as the market sentiment deteriorates. Let’s dig into this subject and see what the particularities of this concept are.

What is risk aversion?

Risk aversion is a situation when the market participants are no more willing to invest their money in risky assets (stocks, precious metals, commodities etc) and place their money into safe assets (bonds, bank deposits etc.) due to economic contraction, political uncertainty, natural disasters or any other even with a significant negative impact on the economy.

Source: https://www.publicspendforum.net

Periods with high-risk aversion have low market performance associated and thus returns are low, especially for long-term investors.

What should forex traders do during these periods?

What usually happens in the forex market is that investors are buying safe-haven currencies. We’ve covered the topic of safe-havens in a previous article and you can check it as well.

During the last severe economic crisis, which took place back in 2018, the yen, US dollar and the Swiss franc had been the biggest gainers, due to their safety profile.

Our assumption is that due to extreme nonconventional monetary policy from the Switzerland National Bank, the franc might not be able to gain as much as the yen or the US dollar.

The biggest economy of the world at this point, the United States, and US bonds are considered to be safe, that is why investors are selling currencies in order to buy US dollars so they will be able to buy bonds.

Also, following the crisis of 2018, the major central banks had embarked on a road of easy money, lowering rates and printing money, leaving them with little room for action in case another economic contraction takes place. Protection is the first objective when risk aversion is high and that is what you should do, as well, not expecting huge returns in short periods of time.

The trading strategy a forex trader chooses can be a defining tool for the future positive performance. This material had been designed for beginning forex traders that are searching for an effective trading strategy. What we need to mention from the start is that this strategy, like any other one, should be tested first. Forex trading demo account is a must, especially if you are at the beginning and you need to develop those skills required for you to generate consistent returns.

So, without further a due, let’s jump into the actual strategy that we want to talk about.

False breakout trading strategy

False breakouts happen many times in the forex markets, simply because support and resistance levels are not like a line in the sand. They are actually several layers deep and you will usually find the market breaking a certain support/resistance only to resume impulsively in the opposite direction.

This could be a great opportunity for you, but you need to learn how to do it. First, we must mention that this strategy should only be used for with trend trading. Do not even apply it for counter-trend trading.

Let’s show an actual example, so you could understand the strategy better.

Source:dailyfx.com

Above you can see the EURUSD chart on the 4h time frame. Since the beginning of 2018, the pair had a good performance, following around 13% gain in 2017.

We’ve drawn on the chart the 1.1941 level, which was a key support level. As you can see, the sellers managed to break it in the first place. Considering that the selling leg down was pretty impulsive, some of the traders might have assumed that the market will continue lower. The exact opposite happened and the price surged impulsively on the upside.

Let us know explain the basic rules of the system:

• First, find the dominant direction of the market (the context)
• Look for a key support/resistance level to which the market had responded in the past
• Wait until that particular level had been broken on the other side of the dominant direction of the market.
• For conservative traders, you can wait until the dominant side resumes and breaks again the level and tests it.

You can place stop loss below/above the false break formation, and target at least 2 or 3 times the stop loss value. This kind of setup had a good accuracy and over time it can be very effective.

As we’ve already mentioned, don’t forget the forex trading on demo account before you actually trade live, with your own money.

Risk Disclaimer

Foreign exchange trading carries high risk and may not be suitable for everyone. You should carefully consider before deciding to invest in speculative assets. No information contained in this article should be regarded as a decision to buy a certain asset.

The Canadian Dollar has been trading under pressure as tariffs could weigh on the currency. The Bank of Canada delivered the widely expected lack of change, leaving the setting for the overnight rate at 1.25%. While higher rates over time remain implied by their economic outlook, they repeated that they will be cautious in considering future policy adjustments. Their views on recent developments were largely balanced, but with a notable mention of the growing uncertainty to Canada’s outlook posed by trade policy. The markets projection is for two more rate increases this year, in July and October, leaving a 1.75% setting by year-end.

The crucial final paragraph of the announcement was little changed relative to January. The repeat of “further rate hikes likely but guided by data and implemented with caution” is a place-holder as they observe the evolution of trade policy, wages, housing and GDP.

The Bank of Canada expects GDP growth of 3% in 2017 in-line with the Bank’s projection in the January monetary policy report. Yet that was largely due to higher imports, which mainly reflected stronger business investment. The key for policy going forward is the evolution of GDP and inflation relative to their projections. But uncertainty remains elevated, including the tariff plans from the White House in the United States making for a policy outlook that is written in very light pencil.

The March announcement revealed little change in the cautious, data dependent Bank of Canada. Hence, they should be able to hold policy steady until past mid-year, providing ample time to access the impact of NAFTA and possible U.S. tariffs on trade and investment. The long-anticipated rotation to export and business investment from household spending and housing is moving along in fits and starts. Of course, household spending did slow in Q4, which is something the Bank has been eying for some time. The announcement assured that they are continuing to monitor the economy’s sensitivity to higher interest rates, noting that household credit growth has decelerated for three consecutive months.

Three Rate Hikes in 2018

The Bank of Canada is expected to move again in July, lifting rates 25 basis point to 1.50%. Another 25-basis point rate hike is penciled in for October to leave a 1.75% rate that should close out the year. But the risk is intensifying that the economy faces fresh headwinds from trade and housing this year. Of course, an expanding U.S. economy would provide a strong tailwind for Canada, if trade protectionism does not weaken the link between the two nations. In other words, uncertainty clouds the outlook, leaving a gradual and cautious course ahead as the most sensible policy path for the Bank of Canada this year.

Canada housing starts improved

Canada housing starts improved to a 229.7k unit pace in February from a revised 215.3k growth rate in January. Currency trading of the Canadian Dollar saw the Loonie remain stable. The pick-up in starts was contrary to expectations for a mild dip and comes amid general softness in sales and prices so far this year as new mortgage rules and other measures pulled-activity ahead to late 2017. Starts saw a 6-month average of 225.3k in February versus 224.6k in January, maintain a steady growth rate since November of last year. Single detached starts fell 9.8% to a 56.7k rate in February while multiple urban starts jumped 15% to 154.5k in February. By region, starts improved in Toronto and Vancouver, with a record number of apartment starts featuring in Toronto.