If you are just beginning it is better to stick with trading risks of only 2 per cent of your trading account. You can increase it as you grow your experience but it must never exceed 5 per cent. One of the trendier candlestick formations is the Head and Shoulders pattern. This occurs when a bullish trending market makes a peak and begins to retract. As soon as the market takes out a low of support, it tends to bounce back up before the market finally falls.

Moving back to the A mark, you can draw a line from the fresh highest high to the new lowest low, the B position. In this instance, what you need to do is to buy when the market starts to rally after the D mark.

In instances like this, what you are trading is not the neckline but the breaking point beyond the lowest low. This extra movement in the market lets you see the true indication of the markets and could minimize your future chances of making losing trades.

This is a kind of indicator that tells you when the trend was going away to save you from trading mistakes and huge losses. The Stochastic RSI could serve as your key to trading. It consists of two lines that act as a yardstick to measure when the market is about to reverse. If a currency is traded too much in the buy zone, it will breach that line and start to trend down.

If the currency is trading too low in the sell zone, it will breach the line and begin to trend in an upward direction. These set of tips help you to increase your chances of making winning trades.

Candlesticks are utilized in the forex market to determine high price and low price. They are as well used to figure out the direction the market is trending.

A collection of candlesticks is referred to as a candlestick formation and depending on their direction and how they relate with each other, they can tell different stories regarding the market. A few candlestick formations you need to consider include the Bullish Morning Star, the Bullish Piercing Line, the Bearish Engulfing Candle and the Bearish Tweezer top.

Each of these candle formations indicates a market direction and makes a unique connection between the candlestick and its wick. Discovering these formations on time helps you to get into the market at the right time before a serious movement and boosts your profit potential.

Too many strategies overstretch and confuse your mind and make you end up losing out on potential profits. Why you need to stick with three strategies is because there are three types of market movements, and it assists to develop a strategy for trading each of them. Developing a reliable strategy for each of these market situations prepare you to trade the market when the condition arises. You should always trade with more than one-time frame.

This is because time frames work interconnected with each other with each having an effect on the other. Patterns that appear in long-term trades manifest in short-term trades, and vice versa. The rule of thumb is to constantly have your alternative larger time frame be at least four times the size of your original time frame. Just as the smaller time frames have effects on the larger ones; the larger ones also affect the smaller time frames. Observe the way the market began to trend bullish before it finally evens out and trades sideways.

Now, if you look at the same currency pair, in the 1-hour time frame :. The same thing happened. The markets began to trend bullish and gradually evened out and started to trade sideways. So there you have it. Comment below, we would love to hear them! If You Enjoyed this article, please Give It a Share. Five Easy Ways to Make Profits in Forex.

Forex Trading hack 1: Get organized and be disciplined To succeed as a forex trader, you must, first of all, get organized and learn to practice self-discipline. Pinpoint your trading personality There are four different types of trading personalities. The Now Trader: The now trader prefers to trade the market quickly and get out. He wants to get in, get his pips and exit the market.

Now traders commonly trade with smaller time-frames, spend less time everyday trading and capture smaller pip numbers but may trade more frequently.

The In-The-Game Trader: These traders prefer to review the market every day, but take action that lasts long and aim to capture larger pip over a longer period of time. These groups of traders go for medium range timeframes and are cautious of reversals and analytical flaws. The Adrenaline Junkie Trader: These traders only trade once, or a few times every month following major financial news like quarterly or earnings reports.

This group of traders mostly engages in swing trading. The Low Maintenance Trader: These traders follow the set it and forget trading approach. They trade with longer time frames by using trading strategies that help them win big over a long period of time which may last for many months. They only concentrate on safer trade choices that hold high-profit potential.

Establish a Personal Set of Trading Rules Success in the markets is determined by how much control you have over your own trading habits. Set Your Trade and Go Away Emotion is one of the reasons your trade fails. Know the right time to trade Get to Know the Euro Open Strategy. Forex Hack 2: Learn to manage your risks To achieve this there are a few things you can do, lets take a peak at them down below.

Use Stop-Losses You place a trade order and set your stop and discover that you are consistently being taking out just prior to your big win. Alter your stop-losses as the market situation changes As the market ebbs and flows, stop-losses get bigger. When to move your stop-loss Search for a high or a low that has two candlesticks to the left side and two candlesticks to the right which are higher or lower from that position.

A high commonly have two lows to the left and right A low commonly have two highs to the left and right Use Reversals to Your Advantage Forex trading goes on 24 hours and is made up of 3 major trading sessions: the European, U. Forex Trading Hack 3: Trade in baskets Follow the tips below to get it done:.

You can Save Time and Multiply Your Profits by Trading in Baskets. This is a strategy that allows you to have it both ways and it involves selecting a currency and placing it into one of two sections: The Control Section The Pegged Section.

Locate Your Basket data The solution to succeeding by trading in baskets is to conduct research on the currency you have chosen. Forex Profit Hack 4: Know your risk limit Follow the tips below:. Identify and Trade Candlestick Formations One of the trendier candlestick formations is the Head and Shoulders pattern. Learn to love the Stochastic RSI. Return To Top. About The Author Filippo Ucchino Co-Founder - CEO - Broker Expert.

Filippo is the co-founder and CEO of InvestinGoal. He has 15 years of experience in the financial sector and forex in particular. He started his career as a forex trader in and then became interested in the whole fintech and crypto sector.

Over this time, he has developed an almost scientific approach to the analysis of brokers, their services, and offerings. In addition, he is an expert in Compliance and Security Policies for consumers protection in this sector. February 4 Min Read. September 3 Min Read. Leave a Reply Your email address will not be published.

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Trading with a good broker is one of the main keys to ensure the success of your trading. Imagine if you had a well-planned trading strategy and controlled psychology, but your broker cheated you in the back.

All your efforts and hard work will certainly be wasted. The main trading facilities such as platform, price quotes, and order execution tools are all provided by the broker. If the broker intends to manipulate their clients' trades, no matter how good their trading strategies or how calm their mental states, their capital will always be in danger.

Not because of the risk of loss from the market's perspective, but because the broker plays its part to steal their clients' money discreetly. Normally, forex brokers profit either from commission fees or spreads from their clients' transactions. Still, some brokers use fraudulent ways to try and get bigger profits. It sounds terrible, but it's a real issue in the forex brokerage business. Of the many ways those forex brokers can trick you , here are 6 of the most common forex broker cheats:.

Brokers who frequently do this are also known as "stop loss hunters". With the help of a particular type of software, the broker monitors clients' trades and manipulates the spreads. This trick is not limited to the use of certain software. Sometimes, brokers also employ special experts to carry out their fraudulent acts. This trick is to make sure that the clients' trading positions are quickly hit by stop loss when the market price moves against their orders.

When the price moves up to 1. Say the initial spread costs 2 pips, there are only 3 pips left before the order hits the stop loss. In a situation like this, a stop loss hunter will widen the spread from 2 pips to 5 pips, so that the short position is closed with a stop loss. Forex broker cheat like this is difficult to identify because most traders will think that they are the ones who miscalculate the price movement.

Although they claim to be able to transfer orders directly to liquidity providers, not all brokers of this category apply the provider's original spreads.

As a matter of fact, some of them want to earn a bigger income and end up marking up the spread. How do you find out if your broker likes to mark up the spread? Believe it or not, you can ask the broker directly. The normal spread in the market is usually very low. See also: Forex Brokers with the Lowest Spread for Cross Pairs. Here is an example of a case that retail traders often talk about. Slippage is the execution of an order at the price that was not ordered.

This condition can occur when the market is very active due to a surge in volatility. The process does run automatically, but obviously, it takes time because of latency the time interval in which data is transferred from the client to the liquidity provider server.

When the market is very active, price volatility will increase rapidly, so it's no wonder that orders can be executed at a different level from the price you ordered previously. In this case, slippage is reasonable. See Also: Best Ways to Deal with Slippage in Trading. But it can be modified into a forex broker cheat, especially when the slippage frequently occurs when the price movement is relatively steady.

This way, slippage can be one of the ways for scheming brokes to take a lot of advantage of clients' losses. But after clicking the buy button, the order is executed at the level of 1. If the price then goes up to 1. But if the price goes down, for example to 1. Take a note that we haven't included the spread fee yet. Requote is a in trade execution, wherein the broker will offer you a new less profitable quote so that you can continue the entry.

This forex broker cheat usually aims to prevent traders from reaping profits from a position that goes well with the current price trend. For example, when prices are falling sharply, you decide to step in with a sell entry. This winning scenario will be prevented bying the order's execution.

In replacement, the broker will offer a different price requote in which your sell order can be executed, only after the price has dropped to a lower level when the bearish momentum is about to run out. You will find it difficult to get the maximum profit if the broker frequently requotes you. A swap is a commission you have to pay when you have an overnight position. The fee is calculated from the difference between the interest rates of a currency pair. In general, the swap can vary between brokers.

If the comparison is not too drastic, then it can be concluded that your broker doesn't manipulate the swap rates. However, if it is too extreme, this could be a sign that your broker is taking too much profit from overnight positions. See also: Forex Brokers with Lowest Swap for Major Pairs. Long-term traders who usually leave their positions open for days are obviously the most affected, especially if the applied swap rates are not in favor of their orders.

Initially, leverage was considered to be a powerful feature, able to support a trader to take a trade size larger than his capital strength. But this facility can also leave an account vulnerable to margin calls when overused. When a market maker offers a leverage of up to thousands and even reaches , instead of helping you, it may plunge your trading account to a very quick loss. The broker type that is most likely to apply high leverage options is the market-maker one.

How so? See also: Forex Broker Types: Which One Is Better For You? After knowing the 6 forex broker cheats above, it doesn't mean you can immediately accuse a forex broker of a scam when you experience losses either from frequent stop loss executions or slippage.

Many traders immediately "feel cheated" by their brokers after reading a bit of information about the broker's fraudulent tricks without really getting the real lessons. Therefore, it's a good idea to pay attention to the following ideas:. Requotes can be identified as the only cause of loss by a fraud broker, especially if this happens to your positions most of the time. There are really no other words to defend this trick , so you may seek alternatives to open an account with another broker should your current broker gives you a lot of requotes.

See Also: How to Get Away from Forex Broker Requotes. Firstly, you need to check what causes your stop loss to be hit faster. Could it be that you are trading when the volatility increases and the stop loss is placed too close to the entry level? Another possibility is that you don't have good trading psychology, which in turn causes you to frequently move your stop loss in the event of extreme price fluctuations.

On the other side, if your positions are often subject to stop losses due to spreads that suddenly increase, then this could be a warning signal. To confirm this, you can run 2 of the same positions on the forex demo account and live account simultaneously. Open buy positions with the same stop loss levels on the demo and live accounts.

When the price drops and approaches the stop loss, pay attention to whether the position on the live account has been hit by the stop loss first or not. If the buy position on the live account has been hit by a stop loss but the position on the demo account is still running, then it confirms that your broker is a stop loss hunter. But if not, you could be the one who miscalculates the stop loss and the market condition.

For this one, first, pay attention to the type of your broker. In reality, inaccurate order executions from slippages can be profitable at times. It is still considered a slippage since the execution price is not at the ordered level.

This is what you call a positive slippage. In market makers, slippages are generally resulting in clients' losses negative slippages. Don't believe their notion that the slippage is caused by increased volatility, because this type of broker can control their own pricing. If you open a buy position, then the slippage is always at a higher level, while for a sell, slippage always occurs at a lower level.

See Also: What are ECN Forex Brokers and How are Their Fees? You can avoid them by choosing a broker more carefully. Here are things you can pay attention to avoid the mischief acts of a fraud broker:. Many people think that a regulated broker is always good and will never perform forex broker cheats.

In reality, it is not actually true. Oftentimes, the license is only used by brokers to attract clients registering with the broker. In fact, behind the common assumption about prestigious regulators , there are phenomena as follows:.

Therefore, don't consider license and regulation as the only important factors when choosing a broker. You should understand the next points to further avoid forex broker cheats. See also: FX Regulation: Unveiling The Dark Sides of the Restrictions. Testimonials from traders can be a good indicator, as they offer some clients' firsthand experiences with brokers. You can browse various testimonials and broker reviews, especially regarding the 6 forex broker cheats above as well as the quality of the payment process.

However, you need to be able to distinguish which ones are real complaints and which ones are just emotional complaints. Sometimes, irrational traders or beginners who don't really understand anything give bad testimonials just to smear their brokers' reputations.

Also, there is always a possibility of fake reviews and testimonials from competing brokers if negative or the broker itself if positive. The market maker acts as a dealer and seeks profit against the trades of his clients. They profit when you lose, and lose when you earn. See also: How Forex Broker Makes Money? This Is The Answer. From a glimpse of the differences above, it is clear that forex broker cheats are ideally more practiced by market makers.

Brokers generally provide this file and can be accessed before you open an account with them. The review could be a review that is too good for a broker or a review that vilifies other brokers. When a market maker offers a leverage of up to thousands and even reaches , instead of helping you, it may plunge your trading account to a very quick loss. Safe and Secure Crypto Bots For Your Account June 29, But after clicking the buy button, the order is executed at the level of 1.

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