What is a grid trading strategy, how does it work, and when is it most effective? We’ve outlined everything you need to know to understand grid trading in forex.

Economic calendars lay out the dates and potential impact of scheduled national and international events that are likely to affect the price and popularity of given markets or assets. Because certain types of events have been known to impact trade in significant, predictable ways, the nature and date of each event on an economic calendar can be used as a trading indicator to maximize profit potential.

Technical analysis is the study of actual movements in the price of a financial product.  However in my opinion, technical analysis is less about trading and more about the study of mass psychology.  We study the way people react in certain situations in the market, which is quite prevalent when identifying and trading using chart patterns.

The Dow Jones Industrial Average moves to an all-time high, the Federal Reserve hikes rates again, and the US dollar finishes the month stronger on the back of the Federal Reserve's outlook for another rate hike in December, three more next year, and one increase in 2020.  Central banks and trade talk continued to dominate the markets and there remain many loose ends as United States and China continue their ‘tit for tat’ antics in trade talks, and more recently with Canada and the North American Free Trade Agreement (NAFTA). 

Margin and margin requirements are something that no forex trader can afford to ignore. Margin has often been labeled a “good faith deposit” to open a position.

Margin is usually presented as a percentage amount of the full position—0.25%, 0.5%, 1%, 2%, and so on. You can calculate the maximum leverage you can use with your trading account based on the margin required by your broker.

When you’re just starting out in forex trading, there are a variety of moving parts to consider and even more potential pitfalls to navigate. Here are five things you’ll learn on the road to greater trading success:

To those unfamiliar with financial markets, the words “pips,” “points,” and “ticks” may sound like something out of a Dr. Seuss book. But there’s a reason why these units of measurement exist in the trading lexicon. In order to assess risk and reward and understand profits and losses, it’s important to know what these terms mean in different contexts.

Determining precisely when to initiate a trade may be one of the most difficult decisions foreign exchange (forex) investors face. It is what is referred to as the entry signal and figuring out a consistent way of entering and exiting a position is an extremely important trait for all traders to have.

I believe that most people trade forex randomly, indiscriminately, and without any process or methodology. These people will stare at a chart to see if something jumps out at them. Even if they must stare at it for a few minutes, they will keep on looking until they find something

The month of August saw an increase in volatility and some reasonably strong movies in a large group of currency pairs.  Central banks and trade talk continued to dominate the markets and there remain many loose ends still to be attended to in trade between the United States and China. 

It would be a massive understatement to say that cryptocurrency is  a volatile investment. The cryptocurrency market’s general lack of regulation means that it can swing wildly in value from one day to the next. Just take a look at bitcoin, which went from being worth pennies at its introduction to thousands of dollars today. It seems like a solid investment on the surface. Unfortunately, it's lost over 50 percent of its value in the past year, meaning that the people who purchased near its all-time high have lost a lot of cash.

A 20 percent drop in the stock market is a serious cause for concern, but a 20 percent price shift in the cryptocurrency market can be considered normal.

So, why would any seasoned investor want to invest in cryptocurrency? Sure, the prediction for crypto prices are massive—$10,000, $25,000, and even a million dollars a coin is thought to be possible—but if the market ever gets there, you can be sure that there will be a lot of dips and swings along the way.

If you want to earn a return on a cryptocurrency investment, you have to be smart with your investing strategies, because you’ll have to ride price swings in order to generate profit.