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A Beginner's Guide to Trading the HK50

If you’ve never traded the HK50, you might be missing out on a great opportunity to capitalize on economic growth in a promising foreign market.

Although the Hong Kong Stock Exchange is the third-largest stock exchange in Asia, and the sixth largest in the world, it often gets overshadowed by the Chinese and Japanese markets, not to mention the markets in New York and London. But seasoned investors are aware of the trading opportunities available in Hong Kong, especially with the HK50.

The Hang Seng Index, or HK50, tracks the 50 largest and most liquid companies on the Hong Kong Stock Exchange (HKSE), offering a reliable reflection of the economic strength of Hong Kong as well as China.

Here’s an overview of the HK50, including a primer on how to approach trades in this market.

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How to Profit from Price Swings in UKOil

If you’re unfamiliar with oil investing, the market’s volatility likely gives you pause for concern. Even though traders recognize high volatility in any market as an opportunity to potentially generate profits off of trades, unpredictable and extreme volatility can be unnerving and discouraging. With high rewards come high risks, and if you don’t understand the factors at play, your investment strategy is hardly more than gambling.

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4 Steps to Using the Inside Bar for Trading

When analyzing chart patterns to identify potential volatility with an asset’s price, an inside bar indicator is one of the stronger signals traders can spot. Inside bars on a candlestick chart represent consolidation of price action where the bulls and bears are both struggling to move the price higher or lower from its current position.

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Forex Hedging: What is It and How Do You Use It?

Investors of all stripes use hedging as a strategy to protect one position from adverse price movements. Typically, hedging involves the opening of a second position that is likely to have a negative correlation with the primary asset being held, meaning that if the primary asset’s price makes an adverse movement, the second position will experience a complementary and opposite movement that offsets those losses.

In forex trading, investors can use a second pair as a hedge for an existing position they’re reluctant to close out. Although hedging reduces risk at the expense of profits, it can be a valuable tool to protect profits and stave off losses in forex trading.

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Currency Pair Trading: 3 Ways to Trade GBP/USD

As the third-most popular currency trading pair in the world, GBP/USD offers one of the most liquid forex tradings you can expect to find. That comes with many of the expected characteristics of a pairing traded at a high volume, including narrow spreads, high volatility, and opportunity to carve out strong profits with well-timed positions.

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CFD Trading Platforms: 4 Things to Look For

If you’re new to contract-for-difference (CFD) trading, one of the biggest decisions you can make is choosing where to put your money.

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5 Tips for Trading Gold (XAU/USD)

As forex traders seek out stable investments that can hedge against inflation, market instability, and other geopolitical factors affecting currency prices, gold has grown in popularity over the past few years. Traders can use gold as a way to hedge against other investments, or as a safe haven that provides greater consistency over time and is more resistant to dramatic swings in valuation than many other currencies are.

XAU/USD is one of a number of gold pairings forex brokers now offer, making it easier than ever to incorporate gold as part of your forex trading strategy. If you’re eager to make better use of gold and capitalize on potential profit opportunities, here are five trading tips to keep in mind.

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Your #1 Trading Goal

The bottom line is that money management will make or break you as a trader. This is a widely accepted fact.  Proper money management rules have been proven over long periods of time and are not secrets to anyone. The rules of ‘keeping your trades small’ and ‘cutting losses’ for example, have worked for hundreds of years, yet many people ignore them. 

No matter what aims you may identify when first determining what you are setting out to achieve with your trading, all aims are secondary to your primary goal — preserving your trading capital. This is by far the most important aspect of successful trading. Simply stated, you need capital to trade.

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Chart Patterns vs Indicators: What's Best for Technical Analysis?

For any trader, a critical step in developing effective trading strategies is choosing an analysis method that evaluates charts and potential trade opportunities.

Chart patterns and indicators offer different approaches to evaluating markets, with each presenting its own relative strengths and weaknesses. Although some trading experts are staunch advocates of one over the other, many traders do use a combination of these methods to create their own customized trading strategy.

Here’s a look at the benefits and drawbacks of each school of thought.

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EUR/USD Day Trading Strategies

As the two largest currency markets in the world, the EUR/USD pairing offers excellent liquidity for forex traders of all types. While the pairing has seen periods of high volatility—most notably in 2010 and 2011, due in part to Greece’s economic crisis—the recent trading history for this pair has seen lower volatility and tight spreads.

This lack of volatility can be a challenge for day traders, since stable prices for the pair can limit a trader’s potential profit margin. The risk is lower, but so is the potential reward. Despite this overall stability, there are still opportunities to capitalize on EUR/USD volatility by paying attention to price movements and tracking potential market triggers.

Here’s a look at some possible day trading strategies to deploy with the EUR/USD currency pair.

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