Author: misamaliraza94
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How to Lose All the Money in Your Trading Account in 10 Days (or Less)
Do you want to learn how to make all the money you just deposited in your trading account quickly vanish? In 10 days or less? Here’s a step-by-step guide: Step 1: Buy a super expensive computer. Don’t forget to buy at least six 27” UltraHD 8K monitors and mount them all on a magnificent monitor stand so that you…
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5 Deadly O’s of Trading: What Traders Do To Guarantee Their Own Failure
Did you know that the five deadliest factors that cause traders to fail are self-inflicted? Many traders self-sabotage their own trading and may not even be aware they’re doing it. When their account goes to zero, they have nobody to blame but themselves. While it might be too late for these traders, fortunately, it’s not too late…
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Summary: Currency Correlations
Like synchronized swimmers, some currency pairs move in tandem with each other. And like magnets of the same poles that touch, other currency pairs move in opposite directions. When you are simultaneously trading multiple currency pairs in your trading account, the most important thing is to make sure you’re aware of your RISK EXPOSURE You might believe that…
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How To Calculate Currency Correlations With Excel
As you’ve read, correlations will shift and change over time. So keeping on top of current coefficient strengths and direction becomes even more important. Lucky for you, currency correlations can be calculated in the comfort of your own home, just you and your most favorite spreadsheet application. For our explanation, we’re using Microsoft Excel, but any…
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Be Careful! Currency Correlations Change!
The forex market is like a schizophrenic patient suffering from bipolar disorder who constantly eats chocolates, experiences extreme sugar highs, and has volatile mood swings all day long. We’re not even exaggerating. Although currency correlations between currency pairs can be strong or weak for days, weeks, months, or even years, they do eventually change and can change when you…
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5 Reasons Why Factoring In Currency Correlations Help You Trade Better
Currency correlation tells us whether two currency pairs move in the same, opposite, or totally random direction, over some period of time. When trading currencies, it’s important to remember that since currencies are traded in pairs, that no single currency pair is ever totally isolated. Correlation is computed into what is known as the correlation coefficient, which…
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Are You Doubling Your Risk Without Knowing It?
When you are simultaneously trading multiple currency pairs in your trading account, always make sure you’re aware of your RISK EXPOSURE. For example, on most occasions, trading AUD/USD and NZD/USD are essentially like having two identical trades open because they usually have a positive correlation. You might believe that you’re spreading or diversifying your risk by trading in different pairs,…
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How To Read Currency Correlation Tables
Are you a visual learner? Do you like looking at sexy women or hunky men? If so, perfect! Take a look at the following tables. Each table shows the relationship between each main currency pair (in orange) and other currency pairs (in white) over various time frames. Remember, currency correlation is presented in decimal format by a correlation coefficient,…
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Currency Correlation Explained
Have you ever noticed that when a certain currency pair rises, another currency pair falls? Or how about when that same currency pair falls, another currency pair seems to copy it and falls also? If the answer is “yes,” you’ve just witnessed currency correlation in action! If you answered “no,” you need to stop doing less important…
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Summary: Scaling In and Out Trades
There we have it… the coolest guide EVER on scaling in and out of your trades. Let’s see how much of this information you have soaked into your noggin. Here’s a quick review of the rules to safely scale in and out of trades. Always use stops. Only add to losing positions if the risk of your COMBINED…