Tuesday, October 11, 2016

A Newbie's Guide to Choosing the Best Forex Broker

Good day everyone. Today we will discuss about the various forex brokers that have proven their reliability in the industry for many years. We’re creating this article to help you in choosing the best forex broker that will satisfy all your needs. 

As we all know, choosing the right forex broker is very critical especially if your goal is to achieve financial success in forex trading. Finding the most reliable forex broker takes a lot of time, research and resources, and if you are quite new in the industry, you might have little idea on which factors to look at when choosing the right forex broker. That’s why we’re here, to guide you on your journey of picking the best forex broker. 

Here are some of the forex brokers that we will recommend to beginner forex traders like you: 


Having been in the industry for 15 years, Forex.com has established itself as one of the leading and most trusted forex brokers. With its competitive pricing, reliable trade execution, innovative trading tools, strong financial resources and client-oriented approach, there is no question why this brokerage company is on the leading spot. 

Client’s satisfaction is the priority of Forex.com, so if you’re looking for the best quality of services, this broker might be worth to take a look at. 


MXTrade, despite only being in the industry for a little over two years, has proved their superiority by delivering exceptional services to their clients. With their dedication on providing reliable online trading services to their customers, they have helped many clients – both beginner and advanced – to achieve a satisfying trading experience. 

This brokerage company offers several useful trading tools to help their clients enjoy the best online trading experience. MXTrade reviews the market daily and publishes the most updated news on their website, to help traders see what is currently going on in the market. 

MXTrade, founded by a team of financial experts with more than 50 years of experience in the industry, aspires to help clients of all levels achieve success in Forex Trading.


Established in 2009, XM.com claims itself to be one of the most reputable forex trading companies in the industry. With over 700,000 clients since the launch of its brand, XM has evolved into a huge and properly established international brokerage firm and has become a real industry leader.

The company brags to have around 180 professionals with many years of experience in the financial industry. The impressive quality of their services, paired with the dedication to give high level of satisfaction to their clients, makes XM.com a broker perfect for those who are seeking for the best forex broker.


Having been established in 2015, Trade12 is one of the youngest forex brokerage company in the industry. With only a little over a year of existence in the forex trading industry, this exceptional broker has already proved its superiority over other older brokerage firms. 

Trade12 is a customer-oriented company, providing only the most exceptional services to its clients. If you’re looking for the best online trading experience, there is no need to look further, this company will surely help you achieve your goals!

That’s it! You’ve been introduced to four of the best online forex brokerage firms in the industry. We sincerely hope that these reviews will help you in choosing the best firm that suits your needs. 

Get the most comprehensive reviews about the leading forex brokers (such as Forex.com, MXTrade, Trade12 and XM.com) in the industry, come and visit our official website Wibestbroker.com!

Still can’t decide on which forex brokerage firm to choose? Send us an email on wibestbrokers@gmail.com and we will help you with all your inquiries!

Thursday, August 4, 2016

Importance of Forex Trading Education

If you are browsing the internet on a daily basis, chances are you might have encountered a lot of articles, blogs and webinars that teaches some valuable and relevant things about Forex trading. While they might appear as of no use and worthless to you, but believe me, getting Forex education from dependable sources can be a great help in your journey to trading success.

The main reason why a lot of new and experienced forex traders fail is because they are too confident of their knowledge and skills. They often think that they already know everything about trading, when in fact, they don’t. Soon enough, the market will prove them wrong, and their attitude will just lead them to failure. 

It is important to make use not only of your own knowledge, but also consider the knowledge and expertise of other people. Do not be overconfident in your own skills, and keep in mind that other people might know something you have no idea about.

Make use of the forex trading education that are readily available in the internet. As long as the information you’re reading came from reliable sources, you’ll surely get some helpful and valuable knowledge from it. Who knows, that information that you are reading right now might be the key for you to achieve success in Forex!

Learning forex trading is a long and continuous process, and it doesn’t stop even after you already achieved success in trading. You must never stop trying to learn Forex, because believe it or not, there will always be a lot of new things to learn about!

With the proper training and education, anyone passionate enough in Forex trading can achieve the success they’re looking for. So, keep reading our educational articles on a regular basis to further learn and master the art of Forex Trading! Visit our official website, Wibestbroker.com, to find out who the best forex brokers are!

Monday, July 25, 2016

Importance of Forex Demo Accounts

Once you’ve learned the basics of Forex trading, it might be tempting to begin live trading immediately in order to start making significant profits. However, you must not proceed to that route right away, as it might just lead you to failure, which I’m sure is not what you want to achieve. 

To achieve success in Forex trading, one needs knowledge and experience that cannot be learned by reading articles and attending seminars alone. To be able to act and decide properly in live and real trading, you must first experience how to trade using the real trading platform, but without real money involved.

Forex Demo Account

Gladly, most forex brokers offer demo accounts to their potential clients, enabling them to test the trading platform before proceeding to live trading. Demo accounts are very useful especially to the newcomers, as it allows them to get a “feel” of the market first before they start trading with their real money. 

Using a demo account before proceeding to the real thing is very important for traders, as it enables them to test out the different functions of the trading platform first before going for the real thing. It allows the trader to familiarize himself with all the functions and features of the broker’s trading platform in a risk-free environment. 

A demo account is a vital tool for traders, especially for the newcomers as it allows them to “simulate” a real trade, enabling them to test out different strategies first without having to risk a large sum of real money. 

Spending a reasonable amount of time in a demo account allows the trader to do all the possible mistakes in trading and learn from it, so once he dives into real trading, he knows which things to do and which to avoid. Combine it with daily article reading, and you will be equipped with all the knowledge you need to be successful in trading.

forex demo

Forex trading is a very risky activity, but by equipping yourself with proper knowledge, education and strategy, the risks involved will be significantly reduced. 

Read our educational forex blogs to further enhance your forex trading knowledge! See who the best forex brokers are, visit Wibestbroker.com to find out!

Thursday, July 21, 2016

What is a Forex Robot

If you’ve been trading Forex for a little while now, chances are, you might have already encountered the term “Forex Robot”. Are you interested to know what it is? Then just keep reading this article and let us explain it to you.

When you first heard of the term Forex robot, you might have imagined something that looks like a mechanical object made of metal, with a currency-like appearance. However, the real forex robot is far from that description. Forex Robot, or what other traders refer to as “Expert Advisors” (EA), is a piece of automated trading software that does the forex trading transaction without requiring human interaction. 

Forex Robot

What forex robot does is it automates all your trades, so you don’t always have to be in front of your computer to be able to trade. It runs and makes its own trading decisions based on the algorithms pre-programmed in it, so traders can really just “sit back and relax”.

Forex robots work well in removing the interference of human emotions in Forex trading. Since it was proven that emotions in trading are what often push traders to make irrational trading decisions, this will be pretty useful for the traders who are having a difficult time controlling their emotions during a trade.

However, the saying “there’s no such thing as a perfect system” also applies to the forex robots currently available in the market. Forex robots only follow a pre-programmed set of rules and algorithms, and thus cannot cope up with the ever-changing market conditions. 

Forex Trading Robot

I cannot attest to the reliability and effectiveness of the forex robots, as I have yet to encounter anyone who became successful by using these kinds of systems. I would still recommend that traders should work on expanding their knowledge regarding Forex to further refine the strategies that they are currently using.

Further enhance your knowledge about Forex trading by reading our educational Forex blogs. See who the best forex brokers are, visit our official website: Wibestbroker.com!

Wednesday, July 20, 2016

How To Detect Forex Scams

The popularity of the foreign currency exchange market has significantly increased in the recent years, and we have also seen a sudden rise in the number of the available forex brokers in the market. Because of that, many traders and investors are enjoying a large number of investment opportunities in the market. 

Identifying Fake Forex Brokers

However, along with this growth is the increase in the number of foreign currency trading scams. While these scams can easily be detected by well-informed traders, budding and uninformed forex traders are still having a hard time distinguishing a dependable broker from fraud ones. That is why it is really important to make an extensive research about the company first before deciding to entrust your hard-earned funds to the broker. 

Here are some of the factors you need to look into in order to be able to distinguish a Forex scam.

Forex Companies That Promises Risk-Free Transactions

Everyone knows that trading in the Forex Market involves a high level of risk, so anyone who is claiming that they can wipe the risk out of forex trading is either false advertising or luring unsuspecting traders into their fraud scheme. To minimize the risks in forex trading, one must incorporate a proper risk management into his trading plan. There is no magic trick or software that can completely remove the risk in forex trading. 

Detecting Forex Scams

Companies That Promises Guaranteed Profits

Anyone that claims that they can make you rich overnight is promising something that they cannot deliver. These kinds of claims are not true and are usually just a tactic to lure you into their trap. Your success depends on how well you perform in trading, and is not determined by the false promises of these fraud companies. 

Remember, to be successful in forex trading, a person should have the required skills, knowledge, discipline and an effective trading strategy.

Further enhance your knowledge and expertise in Forex trading by reading our educational Forex blogs. See who the best forex brokers are, visit our official website, Wibestbroker.com to find out!

Monday, July 11, 2016

What is a Risk/Reward Ratio

You probably might have heard this terminology several times while reading some educational trading blogs, but maybe you’re still left asking what ‘Risk/Reward ratio’ is, and why is it important to understand what it is. Don’t worry, it’s the purpose of this article to discuss with you what a risk/reward ratio is. 

One of the reason why most traders end up losing money in trading is because they fail to manage their risks. Most investors don’t appreciate or have no idea about the significance of risk management and risk/reward ratio, so they fail to include these measures in their trading strategies.

A Risk/Reward ratio is a common term used in the financial markets to compare the amount of the expected profit from the investment to the amount of risk undertaken to earn these profits. To make it more simple, investing your hard-earned money in trading is pretty risky, and if you’re going to risk your cash, it is just right to expect a reasonable amount of potential returns.

For example, if somebody asks to borrow $30 from you and offers to pay you $45 in two weeks, you might think that it’s not worth the risk. But, what if someone asks to borrow the same amount and offers to pay $60 in return? The risk of losing $30 to potentially earn $60 in return might now sound appealing to you.

The most common mistake traders make is they use a negative Risk/Reward ratio, wherein the amount of risk exceeds the amount of reward. Negative risk/reward ratio puts you in an unfavorable position as it needs a much higher winning percentage in order to make up for the losses and be seen as profitable. 

A risk / reward ratio is a measure of the amount of profit you expect to earn in a trade, relative to what you are risking in the event of a loss. Familiarizing yourself with this ratio allows you to manage risk by setting expectations for the outcome of a trade prior to entry. The trick here is to set a positive ratio for your strategy. This way, you can increase the margin of profit during winning trades, relative to the amount you lose during losing trades.

However, you should not rely on this strategy alone if you want to be successful in trading. You should continue studying and reading educational forex articles to know which strategies you should include in your current trading plan.

Learn more about forex trading by regularly reading the articles posted on our educational forex blogs. See who the best forex brokers are, visit Wibestbroker.com to find out!

Wednesday, July 6, 2016

How to Profit When Prices Are Going Down

If you are quite new in the trading world, you might think that the only way to gain a significant amount of profit from trading is to trade with booming markets. However, you should know by now that it isn’t true. The truth is, you can earn significant profits from financial markets, regardless if it’s in an upward or downward trend.

So, you might be asking, how might it be possible? The answer is simple: Short-Selling! This strategy is used by traders who wants to take advantage of the sudden decline in the financial markets, which makes them earn significant amount of profits while the market is in a downward trend. 

For those who doesn’t have any idea about what short selling is, just keep reading and we’ll explain to you what it is.

Short selling is the strategy used by most traders who wants to profit from falling markets. Basically, what they do is sell a security they don’t currently own, in hopes that the price of the security will fall further in the future. Once the price of the security falls to their desired level, they buy the securities back to return the borrowed asset. And since they bought back the securities at a lower price than what they initially sold it on, they’re making significant profits based on that price difference. 

For example, in hopes that Microsoft will go down in the near future, a trader borrows and sells 10 shares of the said company for $10 per share. A week later, due to the unsuccessful launch of the Windows phone, the price of the Microsoft’s stocks went lower, and it is now valued at $8 per share. Because of the significant price difference, the trader decided to buy back 10 Microsoft shares. Since it is now priced at $8 per share, the trader only has to pay $80 per share, which is $20 lower than what he initially sold it on. He then returns the shares back to the broker whom he borrowed it on, and gets to keep the $20 he gained from the said transaction.

However, you must remember that short selling, just like any trading strategies, carries a significant level of risk. Supposedly the price goes up instead of going lower, you will end up having to buy back the securities at a higher price, generating a significant amount of loss. 

It is important to be aware of the risks associated with trading before you start trading with a live account. 

Further refine your trading strategies and learn more about the forex market by reading the articles on our educational blogs. See who the best forex brokers are, visit Wibestbroker.com to find out!

Wednesday, June 29, 2016

Understanding Long and Short Trades

If you are trading in the Financial market, you probably came across the term “long” and “short” trade. In trading, these terms are often used to classify two types of trades. They can be quite confusing to understand especially if you are still quite new in forex trading. So, through this article, let us help you to further understand these trading terms.

What are Long Trades

Long trade is a type of trade where the intention is to profit from advancing markets. It refers to the kind of trade where the trader buys (goes long) a currency in hopes that it will rise in value in the future. 

The term “long” is commonly used to refer to an open position. For example, if a trader says he’s long on EUR/USD, it basically means that he’s currently buying the Euro and selling the USD, implying that he’s making profits whenever the value of the Euro rises against the dollar. 

Traders often use the phrase “I am going long” or “go long” to express their interest in buying a specific currency.

What are Short Trades

Short trade is the opposite of the long trade. It is a type of trade where the trader attempts to sell a currency in hopes that its value will decline in the future. This kind of trade profit from falling markets. In order to short a currency, traders need to borrow the currency from their broker and return it at a later date (right when the price goes down, so they can profit from the trade).

Long and short trades are a little bit different in the forex market. In forex, when you are long of one currency, you are always short of another. For example, if you buy EUR/USD, it means that you are long on the EUR and short on the USD. It also applies to the opposite. If you sell EUR/USD, then it means that you are short on EUR and long on the USD.

Expand your forex trading knowledge by reading the articles posted on our educational blogs. See who the best forex brokers are, visit Wibestbroker.com to find out!

Friday, May 27, 2016

Why Should You Not Rely on Short Term Trading

The general rule of short-term trading is as follows – the shorter the duration of the, the lesser the profit potential there is. 

Professional forex traders know that the market may make a tiny movement in one minute, it may continue moving in 5 minutes and may further move in an hour, and we cannot determine as to how huge the movement it will make after a day or a week. 

Trading on a short term narrows the potential of profit. That clearly explains why you can barely hear anyone who has achieved great heights from short-term trading. 

Some traders point out that they are working during the day, which is the reason why they have insufficient time in keeping longer trades, and thus why they rely on short term trading. Because of this reason, they believe that it’s wise to close their trades right away instead of leaving it overnight, in order to keep the risks at a minimal level.

But what if the market turned to your favor overnight? You’re basically depriving yourself of potential profits, and you’re just settling for smaller amount of profits. 

Also, you can actually control your risk without having the need to close the trades altogether. There are methods to minimize your losses. Remember, you are able to place stop-loss levels on your trades. When you place an order with a stop-loss, you may only lose a predetermined amount of money, so you don’t have to fear that you will lose more than what you expected.

Most importantly, by exiting your trades at the end of the day, or worse, at random moments (for example 5 minute, 10 minute charts), you’re basically severely restricting your potential profits. The difference between the winners and the losers is that the winners stay in their profitable positions, while the losers exit too soon. This way, they are still losing money – basically by not being able to acquire the potential profits that the winners enjoy.

If you want to increase your profits, you have to learn to stick to your winning positions. Remember, the longer you stick to your trades, the bigger the profit potential there will be. Just look at the successful farmers, they never dig the plants up every few minutes just to know how much they have grown. They just patiently wait and let them grow. 

The traders might obtain some valuable lesson from the natural process of growing. To be a successful trader, you need to learn how to stick to your winning trades, you just have to let it grow naturally. 

Acquire some useful information about forex trading by reading our educational forex articles. Find out who the best forex brokers are, refer to our official website – Wibestbroker.com

Wednesday, May 25, 2016

How Do Trends Form in the Forex Market – Part 2

In the first part of our article, we’ve discussed about the most common reason of trend formation in the forex market. We’ve learned that an imbalance in the amount of buyers and sellers in the market is what usually triggers trends to form.


Another factor that leads to the formation of the trends is when liquidation occurs in the forex market. Liquidation usually occurs when a trader starts closing his open position to stop further losses. This can also happen when the market prices hit the stop loss initially set by the trader, but in most cases it is done manually by the trader due to other market reasons, such as profit taking.

The liquidation phase is basically an outcome of the imbalance that is occurring in the forex market. When the prices start to go in the opposite direction of the traders’ open positions, it encourages them to close their open positions to stop aggravating their losses.

If enough traders exit their open positions, it will cause another imbalance in the forex market. When a flood of sellers enters the market, the market prices will be pushed further downward, triggering a downtrend.


For example, the market is currently in an uptrend, which basically means that there’s a lot of traders that has a long position in the market. When the market reaches a price high enough for traders to consider it as profitable, it will encourage them to close their open positions and profit from the price increase. If enough traders decide to close their positions, it will bring a flood of sellers in the market, which will trigger the market prices to move in the other direction (downward). And since the prices are going down, many traders will fear that this trend will continue, so they also start to exit their open positions, bringing even more sellers in the market, and thus pushing the prices further downward. This event will break the recent uptrend in the market and will be replaced by a downtrend.

Learn more about the forex market and improve your trading strategies further by reading our educational forex blogs. Find out who the best forex brokers are by visiting our official website – Wibestbroker.com!

Tuesday, May 24, 2016

How Do Trends Form in Forex Market

Most traders have no idea why trends form in the foreign currency exchange market. They do know that trends are a normal part of the forex market, but they do not know how these trends start. 

The purpose of this article is to give the readers a better understanding regarding the formation of the trends. 

We will talk about the first and the most common factor that triggers the occurrence of these trends, to give you a better idea on how these trends form in the forex market. 

Imbalance in the Forex Market

Basically, an imbalance in the forex market is the most common factor that affects the formation of a trend. When there’s too many buyers than sellers in the market, the price is pushed further upward due to a high demand, causing an uptrend in the market. On the contrary, when the amount of sellers exceeds the number of buyers in the market, it causes the prices to move downward mainly due to a lack of demand, triggering a downtrend in the market.

For example, if there are a lot of traders that are placing a buy order in the EUR/USD, it can push the price of the currency pair higher, causing an uptrend in the market. Basically, traders would need to place sell orders that exceed the number of buyers in order to push the prices lower.

If enough sell orders enter the market to the point where it surpasses the amount of buyers, then the price may stop ascending higher and may start to go in the other direction, putting an end to the uptrend and forming a new trend (downtrend).

It is important to understand how these trends are being formed as this information can help a great deal in your trading decisions.

Further improve your strategies in online trading by reading our educational forex articles. See who the best forex brokers are, visit Wibestbroker.com to find out!

Wednesday, May 18, 2016

What Does “Call Away” Mean in Short Selling

We’ve recently discussed about the risks associated with short selling in our previous article. We’ve encountered the term “call away”, but do you fully understand what the term actually means? We will further tackle about that term for you to understand the meaning of that term.

Call away refers to the event wherein the lender of the security demands the trader to return the securities he borrowed as soon as possible. That basically means that the trader is forced to buy back the stocks, whether the current price is favorable to him or not. This can also cut some of the potential profits, as the trader will be forced out of his short position earlier than he expected or planned.

Being called away is pretty uncommon in financial markets, but it usually happens if the company’s stock is suddenly performing well and is continuously seeing substantial growth for a long period of time. This event might scare the lender, giving him the idea that the trader might not be able to pay the borrowed securities back should the market rises further, so he immediately “calls away” the trader.

It can also happen if the stocks the trader borrowed takes too long to reach the expected decline in price. Due to the long overdue, the lender might suddenly require the trader to return the borrowed stocks, forcing the trader to cover his short positions regardless if the current value is the price he wants or not.

As we’ve previously advised, you should first weight the risks associated with short selling before you go and start placing a short sale order. Further expand your knowledge about trading and refine your trading strategies by reading our educational articles. Find out who the best forex brokers are, visit Wibestbroker.com and see!

Monday, May 16, 2016

What is Short Selling

Today, we’ll discuss another strategy that can help you trade better in the forex market. Hopefully, this knowledge can serve as a great tool for you to increase your profit potential in trading.

We’ll talk about how can you make profit from a decline in market prices.

Whoa, wait a minute, you may say. Is it really possible to generate profits from falling markets?

The answer is yes.

Yeah, you heard it right. Generating some profit despite the decline in the prices is possible, if you’ll learn how to use short selling. By now, you might have no idea what short selling is, but you don’t have to worry, as we’re about to discuss what it is.

Short selling is the process of selling a security or currency you’ve never even owned in the first place. With the hopes that the price will go down in the future, the trader basically borrows a certain stock or currency, sell it at the current price, and then buy it back at a later date to replace the borrowed security.

Say for example, you’ve decided to borrow 100 shares of Apple, which is currently valued at $90. At a later date, the demand for iPhone suddenly decreases, pushing the Apple’s stock price to go lower. Due to the low demand of the iPhone, the Apple’s stock went down to $85, which appears as a good time to buy back the stock, so you can return the stocks you borrowed to the lender. And since you bought back the stocks at a lower price compared to the value you’ve originally sold it to, you can bag a profit of $5 per share. From this transaction, you’ve earned a total of $500.

Despite the profitability of short selling, it also involves a high level of risk. It is important to fully understand the risks associated with it before you start short selling. 

Learn more about the forex market and further understand what is forex by reading our forex-related articles. Visit our official website: Wibestbroker.com to find out who the best forex brokers are.

Thursday, May 12, 2016

What is Support in Forex Trading

Trading in the forex market involves understanding the terms that are used in it. We’ve previously talked about the resistance levels in forex trading, and today, we’ll discuss about the support levels.

Support is the price level in which a particular currency’s value has refused to decrease further and it starts to increase in value rather. When the currency market moves downwards and starts to go back up, the lowest point that is reached before the price goes up is called the “support level”.

To easily understand what “support levels” are, think of it as a roadblock. The price goes in the direction of the roadblock, but since the roadblock literally blocks the road, the price has no other choice but to go to the other direction.

The great news about support level is they are not that difficult to distinguish. Oftentimes, the trader does not even need a high level of expertise in chart analysis to find them. It basically means that even someone who is quite new in forex, with enough knowledge and practice, can easily identify support levels. 

Support levels can appear in exact same price several times, however you need to understand that this will not be always the case. Support levels can appear in slightly different prices, it might appear slightly lower than the previous support level, but it still stays close to that price level. It is also acknowledged as a test for the support level (a test of how far the price can go down through it).

A trader can make profit using this knowledge if they know how to trade using support and resistance levels. So it is important to read articles regarding this matter to improve your trading strategies and increase your profits.
Learn more about the forex market and further refine your trading strategies by reading our forex articles. Find out who the best brokers are by referring to our official website: Wibestbroker.com!

Tuesday, May 10, 2016

What is a Forex Trading System?

A forex trading system is a set of specific rules or parameters which aims to determine specifically when to sell or buy a particular currency pair.

There are two kinds of forex trading systems – manual and automated. A manual system involves sitting in front of a computer screen, looking for signals and the best entry/exit points in the market .

Automated forex trading systems work just like a manual trading system, only that they’re working automatically. In an automated trading system, the trader basically teaches the program what signals to look for and how to interpret and act on those signals. These softwares allow traders to set specific rules for entering and exiting the market. Once programmed, it can be automatically executed through a computer. 

An effective and well-developed automated trading system is actually beneficial for forex traders, as it enables the trader to save time and effort in forex trading. These softwares don’t only automate the generation of signals, but it also automates the actual trading, so the trader won’t have to spend their time on analysis and execution of trades.

Most traders believe that automated trading systems are actually beneficial for them, as it removes the emotions out of trading, something that often leads to bad and irrational decisions. However, this can’t be true for all forex traders, as there are actual situations in which active thinking and emotion is preferred, something which even the best softwares and technologies can’t replicate. 

You should always keep in mind that before using any kind of trading system, whether it is manual or automated, you should first determine the benefits and the drawbacks of using these systems, so that you can make the most out of your trading journey.

Learn more about what is forex and further understand how trading in the forex market works by reading our educational articles. Visit our official website: Wibestbroker.com to know who the best forex brokers are!

Thursday, May 5, 2016

What is a Bear and Bull Market

In the financial market, we always hear the terms “bear market” and “bull market”, as it is commonly used to describe the market’s condition. Despite the popularity of these terms, not everyone fully understands the definition of these terms. 

Bull and bear markets are used to tell the condition of the market in general, whether the market is in an upward or downward trend.

Bull market refers to a market that is appreciating in value. An appreciating market, also referred to as a bull market, happens when the market is showing a high level of confidence and the prices are going up. Usually, during a bull market, the investors are confident that the uptrend will continue. 

Bear market, on the other hand, refers to a market that is depreciating in value. During a bear market, the economic performance is bad, and the prices are falling in value. 

These two terms are commonly used in the stock market, but it can also be used in other forms of trading such as bonds, forex, and commodities. 

Where Did These Terms Come From?

There is no clear explanation as to how the traders end up using these terms, but the most common explanation is that the bull and bear markets are named after the way in which each animal attacks its prey. A bull thrusts its horns up into the air when attacking its victim, while a bear swipes its claw downwards to attack its prey. 

Learn more about the forex market and further understand what is forex by reading our educational forex articles. Find out who the best forex brokers are, visit our official website -- Wibestbroker.com!

Tuesday, May 3, 2016

What is a Candlestick Chart in Forex

In the forex market, a candlestick chart is a type of financial chart used to display the movement in the prices of a currency. Each candlestick is equivalent to one day, so a one-month candlestick chart may contain 20 candlesticks to represent 20 trading days.

The candlestick chart is considered as the most favorite tool used by many traders, and it is because of a valid reason. Candlestick charts are known to provide more information compared to other price charts. The candlestick is a thin vertical line displaying the period’s trading range. The wide bar in the middle of the vertical line, or what is considered as the candle’s “body”.

The candlestick chart is basically a combination of a line chart and a bar chart. The candlestick line contains the value of the currency at open, high, low and close of a certain day. The candlestick has a wide bar, which is considered as the body. The candle’s body shows the range between the open and the close of the trade that day. 

When the candle’s body is filled with black, or red, it indicates that the close was lower than the open. However, if the body appears as colorless, transparent or filled with green, then it means that the close was higher than the open. 

Just above and below the candle’s body are the “shadows”. Traders considers these as the wicks of the candle, and it is the shadows that represent the high and low prices of that day’s trading. When the upper shadow on a down day is short, it indicates that the close was near the high. The relationship between the day’s open, high, low and close determines the appearance of the daily candlestick.

Learn more about the forex market and further understand what is forex by reading our educational forex blogs. See who the best forex brokers are, visit Wibestbroker.com to find out!

Thursday, April 28, 2016

What is Triangular Arbitrage in Forex

Ever encountered a situation wherein there is an inconsistency in the prices of the different currency pairs? Do you know that this kind of situation is actually profitable for you if you know how to act on it? If you don’t, then this is the right time for you to learn about arbitrage in forex trading.

Forex arbitrage is a trading strategy used by forex traders to earn profit with no open currency exposure. This kind of trading strategy requires the trader to act fast on pricing inefficiencies between different currencies, while the opportunity is still present. It involves buying and selling different currency pairs to take advantage of the inconsistencies of their pricing. 

This trading strategy is called triangular arbitrage for a reason. Refer to the illustration below so you could further understand what I am trying to say.

Triangular strategy is the process of trading a currency for another currency, then converting it again to another currency, and finally, converting it back to the original currency within a short time frame. Traders do this to take advantage of the inconsistencies in the prices of the currency pairs.

For example, the current exchange rate of EUR/USD, EUR/GBP and USD/GBP are 0.8631, 1.4600 and 1.6939 respectively. If, for example, the trader initially has 100,000 US dollars, he can trade it for €86,310, then he can sell the euros for 59,110 GBP before finally trading it back to dollars at an amount of $100,120. 

From these transactions, assuming that there are no transaction fees or taxes involved, the trader would earn a total of $120 worth of profit just by taking advantage of the inconsistencies in the pricing of the currency pairs.

Learn more about the forex market and further understand what is forex by reading our forex-related articles. See who the best forex brokers are, visit Wibestbroker.com to find out.

Friday, April 22, 2016

What is Scalping in Forex Trading

We’ve previously discussed about the different types of forex orders in our past articles. This time, we will talk about the different types of trading strategies, and we will start with what most traders call as “scalping”.

First of all, what is scalping? Scalping is a trading strategy used by traders to make many small profits in a short amount of time. The purpose of this strategy is to place as many orders as you can and reap a small profit from each of it. Basically, a scalp trader would place a buy (or sell) order for a certain currency pair and then quickly sell (or buy) them even at a small price change for a profit. These small profits can accumulate into large gains if a strict “exit strategy is implemented to avoid large losses.

Scalping might be the best trading strategy for you if:
  • You prefer fast trading
  • You’re okay with focusing on your technical analysis for several hours at a time
  • You are impatient and you don’t like waiting for a long time to see some profit
  • You can think and decide quickly
  • You love instant profits (or losses)
  • You’re a risk taker

However, if:
  • You easily get confused in fast moving situations
  • You can’t focus for hours to your trading charts
  • You prefer to make bigger profits through fewer amount of trades
  • You want to take your time to fully examine what’s going on in the market

Then this trading strategy might not work for you. It is best to assess yourself first and determine what type of trading are you most comfortable with. That is why it is important to hone your trading strategies on a demo account first before going for the real thing to avoid unnecessary losses.

Learn more about the forex market and further understand what is forex by reading our educational forex blogs. See who the best forex brokers are, visit Wibestbroker.com to find out!

Tuesday, April 19, 2016

What is a Stop Order in Forex

We’ve previously talked about the first two forex order types, namely the market order and the limit order. We’ve discussed their advantages and their disadvantages to guide you in choosing the correct type of order to use in every situation. Today, we’ll talk about another type of forex order, the “Stop Order”.

First of all, what is a “stop order” in forex? A stop order is an order that is used by the trader when he only wants his/her order to get filled once the market reaches a certain level. Once the market reaches the desired level, the stop order will become a market order.
Basically, a stop-loss order works by closing out the trader’s position as soon as the market starts moving against them. It works that way with the intention of minimizing the traders’ losses.

For example, if you are long EUR/USD at 1.09, you could set a stop-loss order at 1.07, and when it happens that the price falls drops to this level, then the trade will automatically be closed, preventing further losses.

However, you should remember that this type of order doesn’t prevent you from accumulating any losses, it can only minimize the amount of losses. Your order is closed at the current market price. In a very fast moving market such as the forex market, there is a high possibility to have a gap between the price you set for your stop-loss and the current price in the market.

Despite this fact, you should always consider putting a stop-loss instruction to your open positions. They can act as a very basic form of account insurance.

Learn more about the forex market and further understand what is forex by reading our educational forex articles. Visit our website, Wibestbroker.com to find out who the best forex brokers are!

Wednesday, April 13, 2016

What is A Market Order in Forex

We have previously discussed the different kinds of forex order and acquired a little knowledge about them. Today, we will further discuss the first and the most common order type in forex trading – the market order.

A market order is an order that is executed at the current market price. When a trader places a market order, he/she is basically allowing his broker to buy a share at the current market price.

Placing a market order guarantees that your order will be executed. However, this type of order entails some risk, as the trader will not be able to determine at what price would his order be transacted at. 

Depending on the movement of the market, the final price of the his/her transaction might end up higher or lower than the trader’s expected price. This event is what traders call as “slippage”.

Basically, the reason for this event is because the market is dynamic. Prices are changing on a regular basis and on an unexpected timing, so the prices could go higher or lower even before your order gets executed.

For example, the trader places a market order at the time that the EUR trades at a rate of 1.13 USD. However, just a few moments before his order was filled, the EUR suddenly rose against the dollar, and the new exchange rate became 1.15 USD. Because of that, the trader would have to pay 0.02 more dollars per euro, giving him a negative slippage. 

However, should the price movement go the other way, and the EUR became weaker against the dollar, then the trader would have to pay less than what he actually expected, giving him a positive slippage.

These kinds of incidents can actually be avoided by placing other kinds of forex orders, but we will discuss this in our other articles. For now, I hope you already understand how market orders work in the forex market.

Further understand how the forex market works and be a better trader by reading our educational articles. Do you want to know who the best forex brokers are? Then you should go and visit Wibestbroker.com!

Friday, April 8, 2016

What Causes Slippage?

In the preceding article, we have talked about what slippage actually means in forex trading. Today, we will discuss what are the factors that triggers slippage so we could determine why it occurs and how can we avoid it. 

So why does it happen? Why can’t our orders be executed at our specified price? To answer your question, let’s go back to the basics of economics. Basically, the true market is composed of two types of people: the buyers and the sellers. For every buyer who has a specific demand, there must be an equal amount of sellers who can supply their demands. 

The imbalance between the number of buyers and sellers is what causes fluctuation in prices. If the number of buyers exceeds the number of sellers, the price will move higher. On the other hand, if there are more sellers than buyers, then the price will probably go lower.

That is also exactly how things work in the forex market. For example, if the trader places a trade in an attempt to buy 10K USD at an exchange rate of 1.37 EUR, but there are not enough people who want to sell their USD at the specified price rate, then the broker will have to find the next best available price, causing the trader to buy USD at a higher price – giving the trader a negative slippage.

But of course, the opposite could also happen. If there are a lot of sellers who are willing to sell their USD at the time the trader places his trade, then he might find a seller that’s willing to sell their USD for a price lower than his specified price – giving him a positive slippage.

In a very volatile market such as the forex market, the occurrence of slippage is a very common and normal event. However, if you want to know if these kind of occurrences can be avoided, read our article about: “Can Slippage Be Avoided?”.

Learn more about the forex market and further understand what is forex by reading our informative articles. See who the best forex brokers are, visit Wibestbroker.com and find out!

Tuesday, April 5, 2016

What is Slippage in Forex Trading

In our previous article, we’ve discussed about how does a forex order get executed in online trading. Some types of forex orders are also briefly mentioned in that article. Today, we’ll discuss about what slippage is and how does it work in forex trading.

First of all, what is slippage? Slippage is the difference between the specified price and the actual transaction price. It is the difference between the price you want a security to be traded at versus the price your broker actually executed it at.

Slippage commonly occurs in forex trading, especially every time the trader places a “market order”. That is because, every time the trader places a “market order”, he entitles the broker to buy or sell a security based on the current “market price”. If, for example, the Euro is currently trading at $1.20 dollars and the trader thinks this is an acceptable price to purchase Euro, then he can place a market buy order.

Say for example, the trader wants to buy 100 EUR and places the market order at the current market price of $1.20, the trader might think that the transaction will only cost him $120. However, since the market order authorizes the broker to buy the currency at the current market price, there is always a chance that the market price will fluctuate before the order gets executed.

If, for example, the current price moves to $1.21 at the time the trade gets executed, then the total transaction cost will become $121 instead of $120, making the trader pay $1 more than the expected total transaction price. The extra $1 here is what traders call as “slippage”.

Whenever the traders hear the word “slippage”, oftentimes they talk about it in a negative light. However, slippage isn’t always against you, and it might even turn the tide in your favor.

Let’s say that the price movement turned the other way, and the price went lower to $1.15 per euro instead of $1.20, then the total transaction price will now become $115 instead of $120, saving you a total of $5! Sounds cool, right?

Learn more about how the forex market works and fully understand what is forex by reading our educational articles. See who the best forex brokers are, visit Wibestbroker.com to find out!

Tuesday, March 29, 2016

Which Time Frame Should You Trade

One of the reasons most novice forex traders fail to achieve success in forex trading is because they’re actually trading in a time frame that doesn’t perfectly match their personality.

One of the most important thing a trader should consider is which time frame are they most comfortable to trade in.

Most of the forex newcomers often carry this “false expectation” that you will instantly earn tons of money once you enter the forex market. Because of that belief, they are tempted to trade on short time frames, such as 1-minute or 5-minute charts.

Unfortunately, this type of time frame does not work quite well with beginner traders, as longer time frames are believed to be a more appropriate option for novice traders.

Truth is, only you can actually determine which time frame are you most comfortable with. Are you the impulsive kind of person who makes quick decisions and looks for results right away? Then short-term time frame such as 15 minutes or 5 minutes (also called Scalping or Day-Trading) might work best for you.

However, if you’re a more cautious type of person, and does not want to feel rushed when making decisions, then long-term approach might be more suitable for you. The most optimal time frame for you might be to trade on daily, weekly or monthly charts.

Novice traders should stick to a long-term approach, and only move to shorter-term time frames as they get more familiar and see success in long-term strategies. In this manner, as the margin of error decreases with shorter term charts, the trader will be able to make adjustments to his risk and trade management.

Learn more about foreign currency exchange trading and further understand what is forex by visiting our educational blogs. Do you want to find out who the best forex brokers are? Then visit Wibestbroker.com to see :)

Monday, March 28, 2016

What is Resistance in Forex Trading?

Just like when you’re learning a new language, being a newbie in forex trading means that you have a lot of forex trading terms you’re unfamiliar with. But that won’t be a problem, because our educational articles will help you to easily understand most of these unfamiliar words.

Resistance is the price level in which the security has refused to increase in price and starts decreasing rather. Think of it like a barrier, the price is trying to get past it, but it still prevents the security’s price from going higher, and therefore pushing it down instead. 

The good thing about resistance level is they are quite easy to be distinguished, and it often does not require high levels of expertise in chart analysis. Therefore, even a beginner trader can easily identify resistance levels. 

Resistance levels can appear at the exact same price numerous times, but keep in mind that it’s not always the case. Oftentimes, the resistance levels occurs at slightly different prices, which creates what traders call as “resistance zone”.

For example, if the price refuses to go beyond $5 and starts pulling back once it reach the price level of between $5 and $5.10 in multiple trades, then the resistance level isn’t just $5, but the area between $5 and $5.10 is the whole resistance area or “zone”.

You should also remember that the barriers caused by resistance levels will not remain permanently, so your most important job would be to determine which levels are more likely to remain and which are about to break resistance. With proper understanding of the market and the help of technical analysis, you will be able to easily distinguish these more accurately. 

Learn more about forex trading and further understand what is forex by reading our educational forex blogs. See who the best forex brokers are, visit Wibestbroker.com to find out :)

Monday, March 14, 2016

Brief Introduction About Moving Average

As the foreign currency exchange market becomes more of a popular investment type for most investors, and with the increase of the people who’s looking to make a substantial amount of income from forex trading, the need for accurate trading systems and techniques has become crucially vital especially for the newbie traders.

One of the most significant concepts a beginner forex trader should understand is what a Moving Average is. In this article we will discuss about the moving average, how it is calculated, and how is it used as a trading indicator.

Moving Average is characterized as a technical indicator that displays the average value of a specific currency pair over a predetermined amount of time. It is determined by averaging a number of historic data points.

This means, for example, that the value of the security is averaged over 30 or 50 days, or 20 and 50 minutes, depending on the time frame you chose to use at the time of your trading activity.

Once the moving average is determined, it is plotted in a chart enable traders to look at smoothed data instead of focusing on the day-to-day price fluctuations that is always present in all financial markets.

This is especially helpful for traders who’s looking to eliminate the “noise” in the price fluctuations and wants to give a more precise emphasis in the trend direction of the currency pair he is currently trading.

If you want to be successful in forex trading, you must equip yourself with all of the essential knowledge about the forex market. Educate yourself about forex trading and further understand what is forex by reading our educational blogs and articles. See who the best forex brokers are, visit Wibestbroker to find out!

Tuesday, March 8, 2016

What Is A Technical Indicator in Forex

Hello there, fellow forex trader! If you’re reading this article, then you might be quite new in the foreign currency exchange market and there’s a lot of forex trading terms you are unfamiliar with. 

In this article, we will further discuss what are the “technical indicators” in forex.

A technical indicator is any kind of metrics whose value is acquired from generic price activity in a stock or asset.

Technical indicators are used in predicting the future price movement, or simply the general price direction, of an asset by looking at the previous patterns.

Some examples of common technical indicators are Relative Strength Index, Money Flow Index, Stochastics, MACD and Bollinger Bands.

Technical indicators, which are also generally called as “technicals”, are recognized by the fact that they don’t analyze any part of the fundamental business, such as earnings, revenue and profit margins. Technical indicators are largely used by active traders in the market, as they are basically designed to predict short-term movements in the price of the security. 

For a long-term investor, the technical indicators are of a little use for them, as they do not really help in analyzing the underlying business. What a technical indicator can do for a long-term investor is to help identify good entry and exit points for the stock by examining the long-term trend.

Learn more about the stock market and further understand “what is forex” by reading our educational blogs. See who the best forex brokers are, visit Wibestbroker.com to find out!

Wednesday, March 2, 2016

Forex Trading Would Not Make You Rich In An Instant

For those who are not that familiar with the forex trading market, there is often a misconception that by trading in the forex market, you would easily get rich in no time as long as you know all the important rules in trading. However, no matter what others might believe in, there is no shortcut in getting rich, and same goes with forex trading.

Forex trading involves a high level of risk, and no matter how careful or knowledgeable you are in the forex market, there is no 100 percent guarantee that you will always succeed in your trades. There are times that you won’t earn any profit at all and worse, you’ll lose some money along the way.

If you happen to be a perfectionist and cannot accept the fact that you’ll experience losing some money along the way, then forex trading might not be for you. In the end, it’s not about how you will avoid these losing money, but how you will handle these losses, and how will you be able to earn more than what you’re losing.

Also, you need to accept the fact that forex trading might not be for those who are unemployed, or those who are only earning a low amount of income. Forex is very risky, and you should not expect to earn millions of dollars just by investing a few hundred dollars.

The problem with most forex traders is, they often enter the forex market with the misguided hope that they will earn millions of dollars in a short amount of time, but in reality, they really lack the discipline that is necessary to fully understand the art of trading. 

Forex trading, just like sports or any type of career, success doesn’t just come overnight. You need patience, knowledge and lots of hard work in order achieve the success that you truly wanted.

Learn more about the foreign currency exchange market and fully understand what is forex by reading our educational blogs and articles. See who the best forex brokers are, visit Wibestbroker.com to find out!