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Oil Talks Fail in Doha, Qatar

The top oil producers in the world were supposed to find an agreement that would stabilize the oil prices, but the Doha meeting ended in failure. A steep fall in the oil prices is now expected, and who knows where they will end up?

After a six-hour delay and six more hours of discussion, the world’s most powerful oil producers (except the USA) didn’t succeed in reaching an agreement regarding freezing the production of the 'black gold'.

The oil price (Brent) has fallen from 115 US dollars (summer 2014) to approximately 40 US dollars today. In January 2016, the price of oil even reached 27 US dollars, and this is the lowest level in the past 12 years. This imbalance between demand and supply is the reason why the oil prices are falling so sharply. Any movement in the oil prices can strongly affect many other financial sectors, such as the Forex markets, and you can read more about that on this page.

What Scalping Means in Forex Trading And How To Use It

If you've never heard the word scalping used in Forex terms before, it probably sounds quite strange to you. But if you put the term into context, it begins to make a lot of sense. This is, for the more advanced trader, exactly how to scalp forex.

What is scalping?

Forex is the most liquid and volatile market out there. Many traders bear through minor fluctuations to gain high pips on their trade, but others “scalp”. Scalping is done to squeeze every small opportunity out of the tiniest fluctuations in quotes. You scalp the gains from minor changes in a very small timeframe.

Thus, scalping creates many opportunities throughout just one day. You'll almost certainly get an entry signal, which makes it quite popular.

Traders who scalp Forex do not expect gains of more than 10 pips, and losses of more than 7 per trade. Scalping is done, however, with high volumes, and most traders who scalp are not following the common 2% risk management rule.

Scalping In practice

Traders generally tend to scalp currency pairs using a 1-15 minute timeframe. The 1 and 5-minute timeframes are the most common. Small gains are expected on these trades. 1 minute may give you a gain of 5 pips. 5 minutes may give you a gain of 10 pips.

Since you're working with a lot of fluctuations, you have to choose currency pairs that are extremely volatile. If you go for pairs with low volatility, you'll end up waiting minutes or hours for the price to change - defeating the purpose of scalping.

Another important rule when selecting pairs to trade is finding those that trade cheap, which will provide you with the lowest possible spread. The spread always lies between 10% and 30% of your income, and you want this to be as low as possible.

You need to develop a trading strategy based on technical indicators, then pick the right currency pair according to the factors above. When you see an entry signal, you go immediately for the trade, and once you see an exit signal or have made an adequate profit, you close your trade.

It is also important to manage Stop Loss (SL) and Take Profit (TP). Using SLs and TPs with scalping may not be a good idea. Time management is very important with scalping, and you cannot waste time executing your trades. Once you have opened a trade, you might choose to set an SL and TP, but most traders won’t. If you are fast enough, it is a good idea to do so.

The size of the spread is incredibly important, as the higher the spread, the more you'll have to expand on opening a position. This rises disproportionately, and not in your favor, so go for the small spreads.

Execution is also key. Dealing desks make scalping currencies especially difficult, as you could get your order refused by the broker. It’s even worse if the broker does not allow you to close your account when appropriate, which can kill your trade. Choose a broker that offers STP or ECN execution, and accommodates scalping.

These are the basics of how to scalp Forex, but there are many more factors to find out about. See Admiral Markets’ page, which explains everything you need to know.

 

Why it is Crucial to get a Forex Trading Education

 

Often, Forex Trading is marketed like a get-rich-quick scheme. But Forex traders need to know that trading is a skill. Just like any other profitable business, you need to know what you're doing before you make money. This is why you need a Forex Trading education.

Now that Forex tutorials are available online it's easier than ever to learn, and there are huge advantages to getting that education.

 

Understanding the basics

When you start trading Forex, you'll find concepts and terminology which may be difficult to grasp. It's very different to other types of trading, so even if you have some experience, you may not be familiar with terms such as pips, drawdown, stop-loss order, Forex spread, and margin call. But with web tutorials, they'll soon be a part of your vocabulary.

 

Create your plan

As a Forex trader, you'll want to create a plan of action. A Forex trading plan will be the gamechanger that has you earning big. It will also keep you disciplined and stop your emotions from getting the better of you.

 

Mentoring

Getting a good Forex trading education is more than simply reading up on information online. Video tutorials, Webinars, and expert traders are available to provide you step by step lessons as to how to be a top trader. It is impossible to get there alone. With mentors available, it is necessary to try to go it alone.

The Nasdaq’s Latest Movements And What’s Behind Them

 

The Nasdaq Composite recently entered into negative territory for the year, due to China’s economic crisis. Towards the end of September, the Nasdaq stood at 4734.48, about a point and a half below its 2014 close of 4736.05.

In addition to China’s economic slowdown, investors have been concerned about the slump of the stock market and Volkswagen’s energy emissions crisis. As the charts indicate, the Nasdaq Composite has been in danger of falling back into corrections mode.

Analysts have been pessimistic about any signs of an upturn, with stocks across the board on a negative trend.

Bearish market

Since the Nasdaq Composite is a technology-weighted market, Apple and Microsoft - its 2 biggest constituents - play a major role in its momentum. The Nasdaq, with the current movements, has been showing a bearish bias.

Slow global PC shipments and another possible retrenchment in capital expenditure spendings have made it difficult for the technology market, despite it having weathered the previous crisis relatively easily.

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