Earn Money In Up(Bullish) And Down(Bearish) Market

Forex trading is very exciting. The market is on the move, and the smallest movement in the currency can mean a lot of profits and losses!

Let me explain this further.

8 of the most traded currencies in the Forex market are as follow:

United States Dollar	USD
Euro	EUR
Pound Sterling	GBP
Japanis Yen	JPY
Canadian Dollar	CAD
Swiss Franc	CHF
New Zealand Dollar	NZD
Australian Dollar	AUD

Forex is trading in pairs, which means, each transaction involves selling a unit and buying another unit. The following pairs are the 18 most popular pairs in the Forex market.

EUR/JPY	USD/CAD
EUR/CHF	EUR/USD
EUR/GBP	USD/CHF
AUD/CAD	GBP/USD
GBP/CHF	NZD/USD
GBP/JPY	AUD/USD
CHF/JPY	USD/JPY
AUD/JPY	EUR/CAD
AUD/NZD	EUR/AUD

When a pair of currency units are bought and sold, it has a bid-ask rate (for example):
Pair EUR / USD
Ask 1.5422
Bid  1.5420
This means that:

Buy pairs to bid rates or sell pairs to the asking rate

Buy Euro at $1.5422 Or Sell Euro at $ 1.5420

So what's your potential to gain profit?

The rate of pairs is constantly changing. One way to make money is to buy a pair at a rate and then close it at a higher rate. Another way is to sell a pair and then close the position at a lower rate.

Yes, in the FOREX market we can always make money by recognizing the trend. If we are in a bullish market we buy and if the trend is bearish we sell. Do not forget that trend is your friend! 

Speculative Sentiment Index or SSI

The SSI index compares the number of accounts in buy trades vs sell trades for each major currency. It releases twice daily. Each account is counted once, regardless of trade size. The SSI index gives us a single number, positive or negative as the price sentiment. A positive value means there are more buyers than sellers. If the SSI is negative, the number of sellers is more than buyers.

Let make this a bit more clear:

If SSI is -2.50, there are 2.50 sellers for every 1 buyer.

If SSI is +2.03, there are 2.03 buyers for every 1 seller.

You may notice that in the forex market more people are losing money than earning a profit. Yes, that is correct it is better to go with the minority. It means if the SSI is negative we should buy and vice versa.

Like other indicators, you can not trust this one for every single trade. But at least you will be OK must of the time. Be careful though!

Profitability

There is no need for high financial intelligence to identify the profitability potential. You only need to educate yourself and learn some technical analysis plus read the important news. On Forex, profitability is summarized in a few ways. 
First of all, to trade you do not need to be a millionaire. Opposed to many markets, Forex lets you start trading with the very low capital. Depending on the type of your account and your broker you can open positions even at around $25. 
Surely you ask yourself, "What can I do with this little money?" Forex does not require much investment because it allows you to apply a Leverage (the amount of money the broker contributes towards your trade in a transaction). Which allows you to create new opportunities for tens of thousands of dollars while investing very smaller amounts of money yourself. Which means that Forex has the potential for profitability and also possibly loss of tens of thousands of money in one day.
But bear in mind that you need to have a very good money management to be able to be a successful trader. 
Another characteristic of Forex is that no matter which way the trend goes there is always an opportunity. It does not matter whether a currency unit falls or rises. There is always room for making a profit because you always have a choice of buying or selling. Unlike your stock exchange, you are not limited to working on high-risk stocks. 

It's important to keep in mind that with all the profits that Forex has it has its own risks. You should be aware of its risks and never risk the amount of money you can not lose.

Why Online trading?

Online trading includes a variety type of assets like currencies, commodities, ETFs, Cryptocurrencies, commodities, etc.

Forex (Foreign Exchange) is an international currency trading market. In this market, you will be able to buy and sell financial instruments including different currency pairs, commodity, etc.

Unlike most other financial markets, this market does not need any particular physical location and trades is being placed as an interbank network. This is possible with the advancement of technology and the possibility of the electronic and remote transaction of various financial instruments.

Who is a broker?

A broker is an intermediary agent between traders and the market. The role of the broker is merely to transfer trader's transactions to the global marketplace. In exchange for providing an opportunity to buy and sell, the brokers deduct a small percentage of each transaction as a commission and deposit it on their account. That will be done automatically.

Unlike other financial markets in the world, the Forex market is a 24-hour market. At all times, the rates in this market are changing. Of course, same as many other markets, the weekends are closed.

To succeed in Forex, it is better if you learn English. This is what I did too. Different courses are recommended to understand the contextual meanings of articles in regards to the financial market. To be successful you may start making a Forex Dictionary for your reference until you can memorise all the necessary words.

Why do we choose forex trading?

It's very interesting to know that the Forex market has a volume of more than 3 trillion trades a day. While the only thing that is required to access is a computer connected to the Internet.

24-hour: Forex trading is open 24 hours a day, and you can enter into a deal at any time, and you do not need to chew the nails behind closed doors until it's opened.

A small domain to focus on: Unlike the stock market, which includes tens of thousands of different stocks, Forex includes 8 major currencies. There are more currency pairs but to be successful you only need to concentrate on the major currencies.

Floating market: Forex is the world's largest currency market. The large volume of daily deals made Forex a floating market that you can buy and sell under normal market conditions.

Forex is not under the control of anyone. Due to the large volume of the market, one can be sure that no one can control it. Even banks do not have the power to influence it for a long time, making Forex a good place to start a real business.

Gap Trading

1. 
   Gap traders believe that in currency trading the pair tries to fill the gap after up to 3 days.

The same thing can be applied to stock trading or commodity trading.

I will update this one if it happens to be true.

Yes, GAP trading works.

I even checked GAP trading again between the 20th and 24th of May for 10 pairs.
So let's check to see if GAP trading worked this time?
On Monday morning the 20th of May we noticed a gap in some pairs.

On Friday the 24th I checked to see if it works or not.

The GAP already was closed for these pairs: $OIL, $NZDCHF, $AUDUSD, $AUDCHF, $AUDCAD, $CADJPY, $NZDUSD, $AUDJPY .


For $EURAUD the gap is almost closed.

Among the pairs that I am monitoring only $AUDNZD did not close the gap. Normally it takes up to 2 weeks, though.

So, considering that 8 out of 10 pairs responded well to the gap trading.
We give it an 80% accuracy score.
In FX trading this is very good.
See below the #AUDCHF 4H chart.

What are the other scenarios?

2. Price tries to close that gap but fails

3. In very trendy markets with big gaps prices may continue in the same direction.