Online trading costs

In general, a trader could incur the following costs and personal expenses:

1. Personal expenses: Your time, trading books, lessons, personal tutor, internet costs, computer depreciation, office costs, bots, etc...
2. Broker-based commissions, spreads and platform fees. 

Overnight and over weekend fees or refunds. 

Platform fees. Some brokers may charge a fee for using their platforms. Not very common these days though.

Slippage. Normally in volatile markets, the price may change from the moment you put in the order to open a position until the time it actually executed. Slippage can work in your favour or against you depending on the direction of price movement.

Commissions are payments to your broker generally as a percentage of your trade size and different trade sizes may incur different commissions, often referred to as tiers.

The spread is the difference between the broker’s buy and sell prices for any given commodity, stock or currency pair in pips. The buy and sell spreads are different; a complete list of spreads can usually be found on the broker’s website.

Missing on gaining interest by simply putting your money into a saving account.

To be successful in hedge trading

The correlation between different markets always changes. So we should review the charts constantly to see if the correlation changes or not.
Looking at the following picture, we will notice how nicely #Gold and #BTC have been correlating during the past few months.
To lern more about hedge trading please also read the following posts from this weblog:

The importance of correlation in hedging

Hedge Trading

Mental and Physical training for Forex traders

If you are a Forex trader, you probably made some choices that you regretted after. You can probably think of many examples when your thoughts or your emotions got in the way of your trading performance.

Imagine these situations:

1. You closed a position in loss and the price direction changed after.
2. You see a movement in price and open a position in a hurry which ends up losing a lot of money.
3. Closed a position in a little bit of profit, despite the fact that your analysis predicts more profit.
4. In case of copying other people, you stopped copying after a few losses and then that trader started making more profit.

And many other times that your emotions cost you a lot of money.

 If you want to increase your stress capacity, Mental training increases your trading performance potential. And like many other skills, you can be perfect by practising it.

Goals in mental training:

• Eliminate doubts and worries that might get you out early from a trade or lead you to move your stop loss when you do not need to.
• Increase your stress capacity.
• Healthier life.
• Increase in concentration.
• Manage your feelings pre, during and after trading.

To manage feelings of fear, anxiety and stress in regards to achieving the above-mentioned goals we can do the following exercises:

• Regulate your breathing. You can even download apps at the beginning to help your breathing techniques.
• Add Yoga to your daily routine.
• Schedule your trading hours and include some rest times.
• Give yourself some days off. Or simply do not think about trading during the weekends.
• Go to holidays to refresh your mind.
• Prepare a trading strategy and only follow that.

Link to video

The importance of correlation in hedging

Definition:

Knowing the definition of correlation can be very helpful in FX trading.

Correlation is a mutual relationship or connection between two or more pairs.

The value of a correlation coefficient ranges between -1 and 1.

The greater the absolute value of the correlation coefficient, the stronger the linear relationship will be.

The strongest linear relationship is indicated by a correlation coefficient of -1 or 1.

A positive correlation means that if one pair's price rises the other pair tends to rise and vice versa.

A negative correlation means that if the price of one pair rises, the other pair's price will fall.

Use of correlation in hedging:

Hedge traders use pairs with correlations to hedge fund against each other. This means that they open two positions which have a good absolute correlation at the same time.

This will reduce the risk but also reduce your chances of gaining more profit.

You can't find pairs with 100% absolute correlation. But there are many pairs with correlation very close to 100% (-1 or 1). If the correlation is high (normally above 80) and positive then the currencies move in the same way. If the correlation is high (normally above 80) and negative then the currencies move in the opposite way.

• Use of pairs with positive correlation:

If you want to use pairs with positive correlation for hedging, you should by a pair and sell the other pair.

• Pairs with negative correlation:

To get the advantage of hedging using pairs with negative correlation, simply buy or sell both pairs. This means if one pair goes up the other will goes down. 

Some of the pairs with negative correlations:
This may change, so always check the recent data and graphs.

#EURAUD - #AUDJPY
#EURAUD - #AUDUSD
#EURAUD - #AUDCAD
#EURAUD - #SGDJPY
#EURAUD - #NZDJPY
#EURAUD - #USDSGD

#EURUSD - #USDCHF

Some of the pairs with positive correlations:

#EURUSD - #GBPUSD

#AUDUSD - #EURUSD

#GOLD and #OIL

Gold and Oil's correlation is different from the FX pairs.
Gold and Oil normally have a good positive correlation on longer timeframes like weekly time frames. The reason is that investors are looking at Gold as a safe haven in financial crises.

There is a reliable scenario: If the price of Oil goes high, the inflation goes high. During the high inflation, investors tend to invest more in Gold. This will cause the gold price to rise.

In shorter time frames we can not see any correlation between these 2 though. You may notice during a period of time they have negative correlation and on some other days no correlation at all.

Risk management

If a trader doesn't know the correlation he or she may increase the risk. Imagine someone opens 2 buy positions with 2 pairs which have a positive correlation. This means if one pair hits the stop loss the other pair also may hit the SL.

The stop-losses are an important tool in Forex trading to limit losses. You simply can’t be successful in the long run if you don’t limit your downside by using stop losses.

The hedging strategies work the same way like a stop loss order in terms of limiting losses. However, the advantage of hedging is that you can also make money on the hedge trade depending on the second trade selection. However, you need to take into account the carry on costs of leaving a trade open for a long time.

Important events for today #GBP #EUR

Yesterdays Corney's speech wasn't that much interesting.

Today we have 2 important events happening for GBP and one for EUR.
Let's see if these events can influence the GBP and EUR pairs.

At 15:30(GMT+8)📢  EUR ECB President Draghi Speaks in Frankfurt.
We can expect High volatility after Draghi's speech

At 16:30(GMT+8)👀 GBP Consumer Price Index (YoY) (APR) Normally High volatility after the results (Forcasted 2.2% Vs Previous 1.9%)
At 16:30(GMT +8)👀 GBP Core Consumer Price Index (YoY) (APR) Again High impact (Forecasted1.9% Previous1.8%)

Depending on what Draghi says and what will be the result of GBP events we can guess the price movements. At this stage we can only manage our accounts to not getting surprises.

Pairs from my portfolio that may affect by these events:
 #EURUSD #EURAUD  #EURGBP #GBPCAD  #GBPUSD and #EURJPY 

Fundamental Events

Fundamental analysis: 

Fundamental analysis is an analysis base on studying the global economic news and other news events which affect financial markets.
As a trader, no matter what kind of trader you are, fundamental analysis can help you on your way to success.

A Fundamenta analyser knows how important is following the news and important economy-related events. If the news from a country indicates economic growth, it's currency's value will start to rise. In many situations, economic news determines the start or continuation of a trend. Major turns on the chart often happen because of an unexpected news event or because expectations of news events are not met.

Based on which currencies or markets you want to trade you should establish which reports are important for you. Then the boring part starts, you'll need to watch the market's reaction to the numbers for a long time before you can confidently accommodate events in your strategy. 

Some important factors for event trading:

• See if your broker has a fix or variable spread during the events.
• Study the news for a few months before you start trading fundamentally. This is important as you can understand the effect of the news on a currency.
• Money management is a key factor during the news. be prepared, assess your risk factors, move the SLs and even add funds to your account if necessary.

It is important for technical traders to study economic news, especially in their money management.

Major economic events in Forex

There is much economic news around the world. The following list may help you to choose which one is more important for you.

1. Gross Domestic Product (GDP)
2. Trade Balance
3. Consumer Price Index (CPI)
4. The Producer Price Index (PPI)
5. Employment Indicators
6. Durable Goods Orders
7. Retail Sales Index
8. Housing Data
9. Interest Rates

Important event 16th May 2019

Today we have these important events:
Please manage your open positions carefully.
AUD Unemployment Rate (APR)  (9:30 GMT+8)

Shows the number of employed in Australia

AUD Employment Change (APR)  (9:30 GMT+8)
The Unemployment Rate is the most important indicator of the health of the labour market.

Which indicators are the best?

Which indicators or theories you use for trading?

As a technical trader, I am using indicators to execute my positions.
Choosing the right indicator for each pair is important as they respond differently to the different indicators.
$AUDUSD  may respond good to Williams R% but $GBPUSD may work better with Stochastic.
$Gold and $OIL are perfect for recurrence theory trading while $EURUSD is a nice pair for Elliott wave systems. (Only my experience).
Setting up an indicator for the different time frames is also an important factor.

Your strategy should also be based on your lifestyle. When choosing the indicators and time frames you should consider what type of trader you are, if you are a scalper, day trader or someone who likes to works on bigger time frames.

You may only be interested in fundamental trading.

The main key to be able to be successful is by adopting a good strategy and money management system which you can read more about that here.

Good luck!

Here is a list of indicators and strategies to use in your trading. I have included videos to help you better understand each indicator. 

1. Accumulation distribution is a cumulative indicator
2. Accumulative Swing Index
3. Average Directional Index (ADX/DMS)
4. Alligator indicator
5. Aroon indicator
6. Aroon Oscillator
7. Average True Range (ATR)
8. Awesome Oscillator
9. Bollinger Bands (BB)
10. Centre Of Gravity (COG)
11. Chaikin Volatility
12. Chande Forecast Oscillator (CFO)
13. Chande Momentum Oscillator (CMO)
14. Commodity Channel Index (CCI)
15. Coppock Curve
16. Detrended price oscillator (DPO)
17. Ehler Fisher Transform Indicator.
18. FRACTAL CHAOS BANDS (FCB)
19. Fractal Chaos Oscillator
20. Gopalakrishnan Range Index. (GAPO)
21. Highest-high-value-indicator(HHV)
22. Historical Volatility Indicator
23. High Low Bands Indicator (HBL)
24. High Minus Low indicator (HML)
25. Intraday Momentum Index (IMI)
26. Ichimoku Cloud
27. Keltner Channel (KC)
28. Linear Regression Forecast Indicator (LRF)
29. Linear Regression Intercept indicator
30. Linear Regression R-Squared Indicator
31. Linear regression slope indicator
32. Lowest Low Value

33. McGinley Dynamic Indicator

34. Median Price Indicator

35. MILAN OSCILLATOR INDICATOR

36. Momentum Indicator
37. Money Flow Index (MFI)
38. Money Flow Index Indicator (MFI) Part-2
39. Different Type of Charts - Part 1
40. Moving Average Strategies
41. Moving Average Envelopes 
42.  What is Parabolic SAR?
43. Pivot Point Strategy
44. Pretty Good Oscillator Indicator
45. Price Rate Of Change Indicator (ROC)
46. Prime Number Bands
47. Prime Number Oscillator - PNO
48. Q-Stick Indicator
49. Random Walk Index Indicator (RWI)
50. Ravi (Range Action Verification Index)
51. RSI (Relative Strength Index)
52. Schaff Trend Cycle - STC
53. standard Deviation Indicator
54. Stochastic Momentum Index (SMI)

55. Stochastic Oscillator

56. Swing Index Indicator (SI)

57. Time Series Forecast Indicator (TSF)

58. Triple Exponential Average (TRIX)

59. True Range

60. Typical Price

61. Ultimate Oscillator

62. Vertical Horizontal Filter

63. Weighted Close indicator

Today's important event

Today we will see some price changes in #AUD pairs

A most important event for today 7th of May 2019:(Australian Western estate time GMT+8)

AUD RBA Cash Rate Target at 12:30

This firstly can make some changes to the cash rate flow through to other interest rates in the economy. And secondly, the changes to these interest rates affect economic activity and inflation.

Please do good risk management before the announcement.

#AUDUSD
#AUDNZD
#AUDJPY
#AUDCAD
#AUDCHF

Lets pray for peace

How a war will affect us as traders?

The US sent airforce bombers to the Persian Gulf.

War for the US always leads to even stronger $USD in the short term. A war with a country like Iran will increase the $OIL price. As a technical trader, I will decrease the risk factor during these disasters if it happens.
The US and Iran's troops are doing some ugly moves in the Persian Gulf. Hopefully, no one does any stupid move.

Lets pray for the humanity!

#OIL
#USD
#Humanity
#Peace
#Iran
#USA
#Forex
#CFD

Lets pray for peace!

https://etoro.tw/2vGqjS3

APADANAFOREX's PERFORMANCE ON eToro

April 2019 Performance.
Another green month.

💲💲💲💲💲💲💲💲💲💲💲💲💲💲💲💲💲💲💲💲💲💲💲💲💲💲💲💲💲💲💲💲💲💲💲💲💲💲💲

Hi All
Here is a summary of @apadanaforex's trading activities during April 2019.
Profit made 5.22%
Total profit as of today this year 53.01%
Average risk score for April: 4 (It was 5 in March)
The number of trades closed 72 in 26 markets. I have 4 more markets in my portfolio compare to last month.

The most profitable markets for me:
$AUDUSD 6 trades with an average 16.91% gain.
$EURGBP 1 trades with 15.97% gain.
$AUDJPY   5 trades with an average of 15.66% gain.
$CHFJPY  1 trades with 12.54% gain
$GBPCAD  4 trades with an average of 10.83% gain.
.
.
.
And at the bottom of the list, I have these ones:
$AUDNZD  2 trades with an average 4.24% gain.
$AUDCAD  6 trades with an average of 3.95% gain.
$USDSGD 4 trades with an average of 3.83% gain.
$BTC  2 trades with an average 3.76% gain.
$CADJPY  4 trades with an average of 3.66 % gain.

My portfolio includes: $AUDUSD $GOLD $AUDJPY $AUDCHF $USDTRY $NZDCHF $AUDCAD $USDCHF $EURUSD $NZDUSD $EURAUD $OIL $EURGBP $AUDNZD $CHFJPY $CADJPY $GBPCAD $USDSGD  $USDCAD $BTC $USDJPY AND $GBPUSD $S  $JPN225 $FSLR


Thank you for trusting in me.
Happy trading!
Good luck! 🤞👍🙌 😎💲

Using Swap in CFD trading.

Swap in Forex trading is an agreement consists of swapping principal and interest payments in one currency with principal and interest in another currency of a loan of equal value.

Sometimes you may choose to place a trade and carry that for a long time. Maybe to hedge against your other trades.

 To avoid paying extra fees you should choose the right pair. The best and fastest way is by looking into your broker's fees and choose a pair with a positive value for the overnight or swap fees.

The best pairs to swap belongs to a pair which one currency has a  high yielding and the other has a low yielding interest. 

Let’s use the USD and Turkish Lyra: rates in the US are currently below the interest rates in Turkey. This means that there is an opportunity to earn carry buying Turkish Lyra(TRY) with USD ie going short USDTRY.

Hedge Trading

What Is Hedging?

I call hedging a kind of insurance. Think about a bad event like a storm or flooding. We can not prevent a negative event from happening, but we can reduce the impact of the event by ensuring our asset. So, we can see the hedging every day. 

But in forex trading hedging means strategically using pairs in the market to offset the risk of any price movements in the opposite direction. In other words, forex traders hedge one position by another.

To do this you should know the correlation between different pairs.

Obviously, to open extra positions you will pay all the fees. No insurance is free, is it?

What are the negative points in hedge trading?

• In Forex, less risk means less income.
• Remember that you can not make money by hedging, It just helps you reduce your risk.

apadanaforex applies hedge trading on eToro. 

In sideways markets, we can do hedging on the same pair. Please do not do this in a very trendy market as you never know when the price will find its peaks. In the sideways market, we will make money on one and losing on the other one then we can close the profitable one at a point close to the peak and wait for the other one to either gets into profit or towards getting profitable. 

The other hedging scenario is looking for the pairs that are negatively correlating. For example, USD/CHF could be a good pair against EUR/USD. You can then close both trades when the total value is in profit. 

Main criteria for a good trading strategy

What are the main criteria for a good trading strategy?

1.       Lowers the risk by:

·         Limiting the size of each trade

·         Diversifying your portfolio

·         Using hedge trading

2.       Suits your lifestyle:

·         Trading times

·         Allocates time for: Sleeping, exercising, eating, etc…

3.       Suits your personality and emotions

·         Using the correct time frames based on the strategy

·         An anxious person cannot be a good scalper. (It eventually make him/her sick)

The most important part is how to implement your trading strategy.

·         You should follow your strategy completely

·         Review every few months. If you need to do some adjustments, do it but first test it on a practise account. (I did not do that last year. I tested my strategies straight on my real account. 

My portfolio includes 23 markets as of today which help me keep my risk low. These market are listed below.

$EURUSD  $GBPUSD $GOLD $OIL $CADJPY  $EURJPY $AUDJPY $BTC $GBPCAD $USDCAD $USDTRY $NZDUSD $USDJPY $USDCHF $EURGBP $EURAUD $CADJPY $CHFJPY $AUDCHF $AUDCAD $AUDNZD $NZDCHF $USDSGD

Please get some rest

https://etoro.tw/2G8Oduf

apadanaforex in an uptrend for the last 6 months!

The trend for apadanaforex's trades on eToro is upward.

Apadanaforex will continue the hard work to maintain profitability.

Please bare in mind the following from eToro website before considering to join:
"CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money."

Please see below our performance during the last 6 months.

Apadanaforex's March 2019 Performance on etoro

Check my March 2019's performance on eToro.


You can join me and start copying my trading activities.

Trading forex is a risky job. Please consider this before joining.

Thanks to our new trading strategy, we made more than 20% profit on etoro.