Alfa Financials

Introduction To really control your trading and trading mindset, the first thing that you should realize is there is never required a necessity to control the market. Most traders frequently attempt to control the market without being aware that they are controlling the market. In fact, it is never possible to control the market. Any attempt that you take to control the market is a loss of time, and you may end up frustrated and desperate concerning your trade. When you understand that the facts that cannot be controlled or that cannot be predictable to a certain extent, you can focus more on things that you can control. Market is Immeasurable There are several variables that affect the market at any point or moment. No human can control anything that happens on the market. Any trader who trades on the market takes just only a single part in the vast immeasurable market. Understanding everything that happens is an impossible task for any trader; however,...

Beta Trading in Forex Introduction Every investment in the market will have two fundamental components - risk and return. These are measured by two statistical variables - beta and alpha. Alpha measures the risk of stock positions and the stock volatility relative to a market benchmark. In detail, beta in trading is a mathematical measure that helps the traders to define the relative risk profile of an investment. Beta was initially originated in the stock trading. In order to understand how well the beta works in  forex trading , it is essential to know how the beta coefficient helps investors to choose stocks that are moving against the overall market average. Beta coefficient The beta coefficient measures the relationship between a stock’s price and the volatility of the market. Beta coefficient β(x) = Slope of stock x / Slope of market average It can be considered that if the value of the beta coefficient is higher, the impact will be stronger. In detail, ...

An Overview on the Technical Analysis Strategies for Beginners Introduction Technical analysis is the analysis of price. In detail, it is the study of earlier market movements to attempt to assess how the market might work and what the market might perform in the future. The fundamental analysis comprise of analyzing the forex and business characteristics for its value estimation based on the revenue, industry trends, etc. Whereas the technical analysis does not involve considering the business value, and it takes the process of analyzing the price movements in the market mainly by reviewing historical data. Both fundamental and technical analysis is useful for the traders to make their trade successful. In fact, most of the traders and investors use both fundamental and technical analysis while making any trade decision. The different Technical Analysis Approaches The technical analysis helps the traders and investors to steer the gap between the fundamental...

Achieve Your Financial Goals With Futures Trading Trading, in general, is defined as the process of  buying and selling stocks  in the market. Futures trading deals with the trading of derivatives, an asset or financial instrument that derives its value from the price movement of an underlying entity. In simple terms, it enables buyers and sellers to exchange a commodity or goods for a preset amount of money in the future. Futures traders are placed in any of the two groups:  Hedgers  and  Speculators . Hedgers  - Who are involved in the underlying asset (producers and consumers). Speculators  - Who prognosticates market moves and opens derivative contracts for profits (position traders, day traders, and swing traders) It is simple to start and achieve your finance-oriented goals through  futures trading . In spite of having a unique financial goal, the ultimate cause for anyone to involve in the futures trading can be categorized...

What is Forex Trading? Forex trading, which stands for foreign exchange trading, is the conversion of one currency into another. It involves the simultaneous buying of one currency and selling of another.  Forex trading  takes place on the Forex Market where all participants buy and sell currencies; participants that include central and commercial banks, companies, hedge funds, brokers, and retail clients. In trading, you will be presented with 2 prices, the sell price and buy price. At any given moment, the sell price will always be lower than the buy price. For any person to make profit in the forex market there are only 2 ways: either the person takes a buy order and waits for the price to increase so he can sell back at a higher price, or he takes a sell order and waits for the buy price to decrease so he can buy back at a lower price. If you buy, the sell price must increase above the price at which you bought to make profit. If you sell, the buy price must decrease b...

Introduction A Currency Futures contract is trading the currencies and selling or buying it in an agreed rate at a future date. Currency futures trading is not a new type of trading. It is the same as other futures trading. Currency futures originated in one of the largest market in the world, the Chicago Mercantile Exchange, in the year 1972. Currency Futures Trading Currency futures trading is one of the standardized trades which occurs in exchange. Based on the volume and speculations, the price of the futures either rise or decrease, the value of futures price changes from the value of futures contract. In Currency futures trading, the popular currency pairs are, EUR/USD (The Euro to US Dollar currency future), GBP/USD (The British Pound), CHF/USD (The Swiss Franc), AUD/USD (The Australian Dollar), CAD/USD (The Canadian Dollar), RP/GBP (The Euro to British pound currency future), RF (The Euro to Franc currency future).  These are the popul...

How to Avoid Scam & Fraud in Forex Trading | Alfa Financials INTRODUCTION We are in a phase where the people are gradually trailing towards the world of trading. Already there are many people into  forex trading  and earning significant profits by following the trading ethics and the procedures. It is easy for you to do trading when you have the experience, and there is no need to get any guidance from anyone, but when you are a beginner it is necessary, and a needed one to have a broker whom you could trust. However, it is challenging in forex to find a trustworthy broker, still possible with the conscientious selection. FOREX Forex is a decentralized place to trade currencies. It includes all forms of buying, selling, and exchanging currencies. There are many currency pairs like EURUSD, GBPUSD, AUDUSD, and so on can be traded in the forex trading market. Forex gives you more profit, but it is not a platform which makes you rich in a day. The best way to survi...

Importance of Understanding Margin and Leverage Margin and Leverage are important terms in forex trading . It is highly essential for all investors to understand these concepts thoroughly before setting out to trade in the currency market. By being ill-informed about these terms traders tend to either overtrade or undercapitalize their accounts. Leverage and margin criteria, laws & requisites vary among various brokerages and countries under operation. It is mandatory for investors to check with their respective brokerage firms for the specific rules that are applicable for their trading accounts. What is Leverage? One of the highest advantages of the currency markets is the one offered by trading leverage. Without the use of leverage, it would have been next to impossible for currency traders to accumulate sufficient capital to participate in the market that was earlier the sole prerogative for banks and financial institutions. Leverage is an essential aspect of the f...

Why Every Trader Should Consider Currency Futures The global currency market is touted to be the largest market in the world with an estimated trading volume of USD 5.3 trillion daily. However, it is not the only vehicle for anybody to partake in foreign exchange . Despite not being as voluminous as the FX market, the currency futures market also generates a stupendous average volume of nearly USD 100 billion.  Currency futures are essentially futures contracts where the respective instrument is the currency exchange rate and provides exposure to the FX markets like other Futures agreements. They are exchange-traded futures contracts to buy or sell a stipulated amount of a particular currency at a fixed rate and time in the future. Currency Futures were initiated at the Chicago Mercantile Exchange in 1972. Like other Futures products currency Futures are also traded in terms of the contract month whose maturity date usually falls on the third Wednesday of March, June, Sept...

3 Tips to Avoid Trader's Block All of us are familiar with the term writer's block. A trader's block is similar to that. It happens when a trader feels paralysed and is unable to trade usually due to the anxiety of not being able to replicate his/her success or the nervousness of repeating his/her failure. During such a condition a trader starts looking out for that one elusively perfect trade which of course does not exist. The harder they try to get out of the no-win situation, the more they will find themselves struggling in vain. In fact, it may lead to several impulsive trades which may do more harm than good. Thus, psychology is vital during trading-your purpose is to be on an even keel and work towards maintaining an emotional balance irrespective of your gains or losses. So how can you curb your emotions and control your mindset in order to avert a trader's block? Let's discuss a few steps on how you can cope with such a no-go situation: 1. Develop ...

Trading for a Living Is a Good Idea or Not? On the face of it, trading for a living is easier said than done. However, it is entirely doable with the right approach and mindset. The stories that we keep hearing every now and then about forex millionaires are not hearsay but very relatable and about real-life traders. Of course, currency trading is not a get-rich-quick scheme, is fraught with risks and requires patience, discipline & tenacity. The forex market is the largest financial market worldwide offering maximum liquidity to investors. So, if you do the required legwork and research eventually you can switch to fulltime trading by leaving your day job and may even be able to sustain your livelihood through it. The journey won't be a smooth one, there will be bumps and setbacks, false starts and disappointments galore. But you must have what it takes or in other words possess an indomitable never-say-die spirit. Becoming a millionaire overnight is rare or maintainin...