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Essential Ratios Every Beginner Trader Should Know. The Fibonacci sequence and the golden ratio have long fascinated mathematicians, scientists, and artists. Their influence extends across every aspect in life and can be observed in nature, architecture, and even the financial markets. Fibonacci-based tools are readily available and can assist in identifying entry and exit points, retracement lengths and more.

   

What is Fibonacci and Why Does It Matter in Trading?

   

The Fibonacci sequence consists of a series of numbers where each value is the sum of the two preceding numbers, starting from 0 and 1. For example, 1+1=2, 1+2=3, 2+3=5, and so on. When we continue this pattern we get:

   

0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233...

   

Taking it one step further, if we observe the mathematical correlations between these numbers, we identify a range of ‘ratios’. For example, if we divide 21 by 34, we get 0.618%. If we divide 21 by the number two spots to the right (55), we get 38.2 and so on.

   

This mathematical constant appears in various natural and human-made structures, from spiral galaxies to architectural designs, and even nature.

In trading, Fibonacci ratios can help analyse price action, pinpointing areas where market trends may pause, reverse, or accelerate. By learning to apply these ratios, you can identify potential support and resistance levels, retracement zones, and projected price targets, ultimately giving you better entries and exits on your trades.

   

Breaking Down the Key Fibonacci Ratios

   

The most widely used Fibonacci ratios in forex trading originate from the relationships between sequence numbers. As an example, some of the most commonly used in trading include:

   

     
• 23.6% – A minor retracement level often observed in strong trends.
     
• 38.2% – A commonly used retracement level where price corrections may occur.
     
• 50% – Not an official Fibonacci ratio, but significant due to psychological factors.
     
• 61.8% – The golden ratio, a crucial level for support and resistance.
     
• 78.6% – A deeper retracement level where strong reversals may occur.
     
• 161.8% – A common extension level used to forecast potential price targets.
   

   

These ratios are applied using Fibonacci retracements and extensions.

   

How to Use Fibonacci Retracements

 

Read time: 3 minutes.

Indicative Dividend Adjustments for Indices: Week Starting March 24th, 2025.

* Please note these figures are quoted in the index point amount and are subject to change

What is a dividend?

Dividends are a portion of company earnings given to shareholders. As indices are often composed of individual shares, an index dividend pays out based on individual shares proportional to the index’s weighting.

Trading on a CFD Index does not create any ownership of the underlying stocks, or an entitlement to receive the actual dividends from these companies.

What is an ex-dividend date?

An ex-dividend date is the cut-off date a share must be owned in order to receive a dividend. If an investor buys a share after the ex-dividend date, then they will not be entitled to earn or pay the next round of dividends. This is usually one business day before the dividend.

Do dividends affect my position?

Share prices should theoretically fall by the amount of the dividend. If the company has paid the dividend with cash, then there is less cash on the balance sheet, so in theory, the company should be valued lower (by the amount of the dividend).

Due to the corresponding price movement of the stock index when the ex-dividend date is reached, Fusion must provide a 'dividend' adjustment to ensure that no trader is positively or negatively impacted by the ex-dividend event.

How will the dividend appear on my account?

The dividend will appear as a cash adjustment on your account. If your base currency is different from the currency the dividend is paid out in, then it will be converted at the live FX rate to your base currency.

Why was I charged a dividend?

Depending on your position, given you are holding your position before the ex-dividend date, you will either be paid or charged the amount based on the dividend. Traders shorting an index will pay the dividend, whereas traders who are long the index will be paid the dividend.

Why didn’t I receive my dividend?

You may not have received a dividend for a number of reasons:

- You entered your position after the ex-dividend date

- You are trading an index without dividend payments

- You are short an index

If you believe the reasons above do not apply to your position, please reach out to our support team at [email protected] and we’ll investigate further for you.

Read time: 3 minutes.

1. The U.S. Dollar’s Strength and Global FX Implications 
   
   

2. Carry Trade Opportunities in High-Yielding Currencies 

3. The Euro’s Structural Weakness and Political Uncertainty 

Figure 1 – EURJPY Weekly Chart 

Figure 2 – Euro Volatility Index, daily chart 

4. Commodity Currencies 

Figure 3 – XAUUSD (gold), daily chart 

5. Geopolitical Crossroads and FX Volatility 

Figure 4 – USDCNH, weekly chart 

Final Thoughts 

Read Time: 5 Minutes

We are always listening to our community and striving to improve our trading experience. Today, we’re excited to announce the launch of our newly revamped ‘Refer a Friend’ program, offering greater rewards and flexibility for sharing Fusion Markets with your Friends. Terms and Conditions apply. 

What’s new? 

Your Reward Options 

Option 1: Earn a once off Payment 

Option 2: Reduce Commissions 

How it works? 

Step 1: Get Your Link 

Step 2: Share Your Link 

Step 3: Earn Rewards 

For New Clients 

Why We Upgraded the Program 

FAQ’s  

Ready to start referring? 

Read Time: 6 minutes

Donald Trump’s return to Office as the 47th President of the United States marks a significant political and economic shift, creating both opportunities and challenges in the forex market. 

Trumps second-term agenda, marked by aggressive trade policies, tax reforms, and deregulation, has the potential to impact global markets in complex ways, especially the foreign exchange market. Fear not; there will be plenty of opportunities to accompany any disruptions that the Trump Administration will bring.

One of Trump’s most critical economic agenda’s is his renewed focus on tariffs. As during his first term, Trump has emphasised targeting China, with plans to raise tariffs on Chinese imports by 10–15%, ultimately increasing tensions between the two nations.

Why does this matter?

China’s economy has direct and indirect influences on markets, primarily through global trade. In 2024, China's foreign trade reached new heights, with total goods imports and exports amounting to 43.85 trillion yuan (approximately USD $6.1 trillion), marking a 5% increase from the previous year. Exports grew by 7.1% to 25.45 trillion yuan, while imports saw a 2.3% rise to 18.39 trillion yuan.

The trade surplus expanded significantly, reaching a record $992 billion, driven by a surge in exports, particularly to the U.S. So, you can imagine how Trump’s focus on tariffs could affect this.

Other proposals include broad tariff hikes, with some extreme scenarios suggesting across-the-board levies of up to 10% or a staggering 60% on Chinese goods. Such moves, while aimed at protecting American industries, carry substantial implications for global trade flows – which will of course affect currency rates.

The U.S. dollar, often a safe-haven currency as we know it, has provided an impressive bull-run recently;

Figure 1-DXY (US Dollar Index) Daily Chart

There are essentially two scenarios:

1. A weaker USD
   
   In his first term as US President, Trump openly said the dollar (USD) was too high. And now, in his second term, he’s singing the same tune. This could provide some fantastic opportunities for us forex traders – especially when currencies such as the AUD and NZD are severely undervalued.
   
   
2. Continued dollar strength
   
   We could see further strength if global investors react to heightened uncertainty and anticipated inflationary pressures.

How to Trade Trump 2.0

Monetary and Fiscal Policy Signals

Look for Hedging Opportunities

Be Prepared and Adapt

News and Risk Management

Read Time: 8 Minutes

Throughout the year of 2024, we’ve observed some significant economic shifts and global events that have influenced market movements in their own way. Central bank policies were front and centre, with the Federal Reserve, European Central Bank, and Bank of Japan steering market sentiment through interest rate decisions and inflation management.

Geopolitical events further intensified market volatility, from the U.S. presidential election to regional conflicts and global trade renegotiations. These developments highlighted the forex market's sensitivity to political transitions and international agreements – providing some great trading opportunities along the way, on the back of the resulting volatility.

There were talks of central bank digital currencies (CBDCs) and the integration of AI-driven trading tools, which brought us both opportunities and challenges, fundamentally altering how traders approach the market.

Economic indicators like inflation trends, employment data, and GDP growth provided critical insights into currency dynamics, while liquidity patterns and institutional trading flows shaped the forex market 2024 behaviour.

Table of Contents

Central Banks & Economic Indicators

Economic indicators continued to determine forex market 2024 movements. Inflation trends, employment data, and GDP growth became focus points for traders in their market analysis. However, central banks were the driving forces behind many of 2024’s forex movements. One of the key influencers being the Federal Reserve (FED), which continued to balance inflation management with economic growth. Its policy decisions caused notable fluctuations in the dollar index.

In Europe, the European Central Bank (ECB) adopted a measured approach, focusing on stabilising the eurozone whilst observing varying economic growth rates. Its quantitative easing measures influenced liquidity trends and regional currency movements.

Across the Atlantic, the Bank of England faced challenges as the UK’s post-Brexit economy dealt with a persistent level of inflation.

The Bank of Japan remained committed to ultra-loose monetary policies, maintaining pressure on the yen – of which was a prime contender in the carry-trade space. Meanwhile, several emerging economies grappled with inflationary spikes, prompting central banks in countries such as Brazil and India to tighten policies.

Inflation remained a dominant theme, with central banks in developed and emerging markets adjusting their policies to manage rising prices. The U.S. inflation rate, in particular, was a critical driver of Fed decisions, indirectly shaping the dollar's global standing.

Whilst the U.S. demonstrated moderate growth, China’s slower-than-expected recovery impacted commodity-linked currencies like AUD and CAD. In addition, trade balance data highlighted the fragile state of international trade, further complicating currency dynamics.

Geopolitical Influencers

One of the year's most impactful events was the U.S. presidential election, which drove volatility across global markets. Policy discussions on trade agreements and economic reforms led to fluctuations in the USD, particularly against currencies like the euro and yen. With President Donald Trump still in the process of taking office, we can expect to see further geopolitical developments and forex price movements as we head into 2025.

Regional conflicts and political transitions also applied pressure on currencies. A key one being the tensions in Eastern Europe which influenced the euro's trajectory, whilst political instability in the Middle East affected oil-exporting nations' currencies such as the Russian Ruble and Canadian Dollar. In addition to this, trade agreements, such as renegotiations between key Asia-Pacific economies, created ripple effects in commodity-linked currencies like the Australian and Canadian dollars.

Forex Market 2024 – Behaviour Analysis

The forex market 2024 exhibited unique behavioural trends, characterised by pronounced volatility and evolving liquidity patterns. Traders observed spikes in volatility following key central bank announcements and geopolitical events, which created both challenges and opportunities.

Liquidity trends shifted significantly, with institutional trading flows dominating high-volume trading periods. Cross-border capital movements also surged, driven by divergent economic recoveries among regions. For instance, the U.S. attracted significant foreign investment due to its relatively stable economic outlook, bolstering the dollar’s strength against other major currencies.

Technological advancements further influenced market behaviour. AI-driven trading platforms improved trade execution efficiency, while blockchain technology introduced greater transparency in cross-border transactions. The digital currency evolution has added another layer of complexity, as traders adapted to the increasing integration of CBDCs into mainstream markets.

These behavioural insights reveal the dynamic nature of the forex market in 2024, emphasising the need for traders to remain agile and leverage advanced tools for navigating this ever-changing landscape.

A Technical Recap

In addition to observing the fundamental influencers of 2024, we can put it all into context by observing the daily chart for the year.

DXY 

EURUSD

As expected, the US Dollar movements were inversely correlated with the EURUSD reaching a high of 1.12140 and a low of 1.03332. 

AUD & NZD 

Our Aussie dollar has provided some fantastic trading opportunities this year – with range-bound strategies taking advantage of Q1 & Q2, before trend-following strategies amplified those returns with the increased volatility in Q3 & Q4, resulting in a high of 0.69424 for the year, and a low of 0.63482. 

Across the ditch, the Kiwi Dollar has performed very similarly, with a high of 0.63788 and low of 0.57971. 

GBP

The trend was your friend for the GBP this year – providing a long-term bullish trend, before reversing to a now-downward trend. A prior low for the year at 1.22996 was met with a resulting high of 1.34342 at the conclusion of the bullish trend. 

CHF &  JPY

Love it or hate it, the Swiss Franc was a trend traders’ dream this year, with a bullish trend providing a high of 0.92244, followed by a resulting down trend reaching a low of 0.83744.

We all know the story with the Yen this year, including multiple instances of intervention by the BoJ. Whether you’re taking advantage of the carry trade, or simply riding the trend, we saw textbook trending reaching a high of 161.951 and a low of 139.579 for the year. 

Conclusion – Lessons From 2024

The 2024 forex market has been a year of developments, from central bank policies, economic indicators, geopolitical events, to technological advancements...

Disclaimer: Economic conditions are complex and rapidly evolving. This overview provides an educational perspective based on available information as of late 2024.

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Table of Contents

• Introduction
• Key Economic Indicators
  • Gross Domestic Product (GDP)
  • Employment Data
  • Inflation Rates
  • Interest Rates
  • Consumer Confidence Index (CCI)
• Interpreting Economic Indicators
• Essential Economic Indicators and Practical Application
• Synergising Economic Indicators with Technical Analysis
• Advanced Trading Techniques
  • Timing Your Trades
  • Integrating Indicators into Your Trading Strategy
• Conclusion

Key Economic Indicators

Gross Domestic Product (GDP)

GDP is the total market value of all goods and services produced within a country, reflecting its economic health.

A rising GDP often signifies a strong, growing economy, which can boost a nation’s currency due to investor confidence. Conversely, a declining GDP might signal economic trouble, potentially weakening the currency. For forex trading, GDP data can help identify long-term currency trends, particularly when compared across different nations.

Employment Data

Employment data is a major economic indicator with a substantial impact on currency values, particularly the Non-Farm Payrolls (NFP) data in the United States.

The NFP measures employment changes outside the farming sector, providing a snapshot of the U.S. job market. When job creation is strong, it suggests economic health, often strengthening the currency as investors and traders feel confident.

Weak employment figures can suggest economic issues, potentially leading to currency depreciation. Since employment is closely tied to consumer spending and economic stability, this data can be very valuable for traders.

Inflation Rates

Inflation, primarily measured by the Consumer Price Index (CPI), reflects the rate at which prices for goods and services increase.

Moderate inflation is generally healthy, indicating a growing economy. However, high inflation can devalue a currency as purchasing power declines. Central banks often adjust interest rates in response to inflation; if inflation is high, they may raise rates to control it, which can attract foreign investors seeking higher returns, thus strengthening the currency. Understanding inflation’s impact on interest rates and currency valuation is vital for forex traders.

Interest Rates

Interest rates are the cost of borrowing or the return on savings, set by central banks to regulate economic activity and influence currency value.

Interest rates are among the most influential economic indicators in forex. Central banks set these rates based on economic conditions, adjusting them to either stimulate or cool down the economy. Higher interest rates often attract foreign investment, increasing demand for the currency and boosting its value. Conversely, lower interest rates can make a currency less appealing to investors, leading to depreciation. For forex trading, interest rate changes and the policies of central banks (such as the Federal Reserve in the U.S. or the Reserve Bank of Australia) provide critical insights into likely currency movements.

Consumer Confidence Index (CCI)

The Consumer Confidence Index measures consumer sentiment and expectations regarding the economy.

High consumer confidence can indicate increased spending, which drives economic growth, while low confidence suggests economic uncertainty. CCI is considered a leading indicator, as consumer sentiment often precedes actual economic changes. When consumers feel positive about the economy, the currency may strengthen; when confidence drops, the currency may weaken. Forex traders use the CCI to anticipate changes in spending behaviour and overall economic direction.

Interpreting Economic Indicators

In forex trading, interpreting economic indicators requires understanding both individual data points and the relationships between them. Economic indicators can influence currency values in varying degrees, with some holding more weight than others. Traders must also consider correlations, as indicators like GDP and employment data often move together, giving a clearer picture of economic health.

One challenge traders face is managing contradictory signals. For example, strong employment data may suggest a strong currency, but if inflation is simultaneously high, it could lead to fiscal and monetary policy changes, ultimately impacting the currency differently. Weighing the significance of each indicator helps traders decide when to take action and which indicators align with their trading objectives.

Essential Economic Indicators and Practical Application

- For traders just starting with fundamental analysis, some economic indicators offer a straightforward approach to understanding market dynamics:

- Non-Farm Payrolls (NFP): Released monthly by the U.S. Bureau of Labor Statistics, NFP provides a quick look at employment trends, making it a critical indicator for traders.

- Consumer Price Index (CPI): CPI reflects inflation and purchasing power, directly influencing central bank policy and forex rates.

- Central Bank Interest Rate Decisions: Rate changes have immediate and often lasting impacts on currency valuation, making them a fundamental factor in forex trading.

You can find the details of every economic data event using our Economic Calendar.

Accessing timely and reliable economic data is crucial. Many traders use economic calendars, such as our one here, which provide release dates for upcoming economic data, allowing them to plan trades around these announcements. Economic calendars are invaluable tools for tracking data releases, setting alerts, and managing expectations for market volatility.

It's also important to be mindful of common misinterpretations, such as assuming that a single indicator will drive long-term trends. Forex markets are influenced by a multitude of factors, so it’s essential to view each indicator within a broader economic context.

Synergising Economic Indicators with Technical Analysis

Whilst economic indicators provide insights into a currency’s underlying strength, technical analysis offers real-time insights into price patterns and potential entry points. Combining fundamental and technical analysis enables traders to balance economic data with chart patterns, enhancing trade timing and precision. For instance, fundamental economic indicators can provide you with a long-term bias, and technical analysis can be used to find entries and exits in the direction of that bias.

Advanced Trading Techniques

Timing Your Trades

Timing is crucial when trading around economic data releases. Pre-release analysis allows traders to set expectations based on market consensus, whilst post-release strategies can help manage volatility once the data is out. Our Economic Calendar is an indispensable resource in this regard, assisting you in aligning trades with significant data releases and prepare for potential shifts.

Integrating Indicators into Your Trading Strategy

Developing a comprehensive trading strategy involves diversifying currency pairs based on each currency’s economic indicators. For instance, trading a U.S.-based currency pair based on NFP data, while trading an Australian pair based on the RBA’s interest rate decisions, can provide a balanced approach. Incorporating adaptive risk management around key data release dates can help traders mitigate the risks associated with high-impact news events.

Conclusion

Economic indicators are invaluable resources for forex traders, offering insights that can guide trading strategies and improve profitability. By understanding these economic indicators, you can better anticipate currency movements and make informed decisions. However, mastering these indicators requires continuous learning and constant observation.

Ultimately, leveraging economic data within a broader market analysis framework supports responsible trading practices and provides you with an additional source of information to make better trading decisions.

Remember: Successful forex trading requires a balance of economic insight, technical skill, and disciplined risk management. Stay informed, practice consistently, and adapt your strategies to ever-changing market conditions.

Read Time: 3 Minutes

A recent study by BrokerChooser has provided valuable insights into the complex world of online investment fraud, highlighting critical trends that every trader should understand. 

Read Time: 8 minutes

“I used fundamentals for nine years and got rich as a technician” 

Read Time: 5 minutes

Estimated Read Time: 15 minutes 

Norwegian Krone (NOK)

The Norwegian Krone, denoted by the symbol "kr" and the currency code NOK, has been in circulation since 1875 when Norway joined the Scandinavian Monetary Union. Like many currencies, the Krone is subdivided into smaller units, known as øre, with 100 øre equaling 1 Krone. While Norway initially pegged its currency to gold, it later adopted a floating exchange rate regime, allowing market forces to determine its value. 

Table of Contents

1. Introduction
2. The Promise of AI in Forex
3. Current Realities of AI in Forex
4. Common Misconceptions
5. AI vs. Human Traders
6. The Future of AI in Forex
7. Final Thoughts

Introduction

Artificial Intelligence (AI) is revolutionising many industries, and forex trading is no exception. It’s estimated that AI-driven trading could reach US$19 billion in revenue by 2028.

According to the International Monetary Fund (IMF); “the share of AI content in patent applications related to algorithmic trading has risen from 19 percent in 2017 to over 50 percent each year since 2020, suggesting a wave of innovation is coming in this area.”

Although this may be exciting at first, every trader must be sure to distinguish between the hype, and reality.

AI is still evolving, and its application to the forex market is not yet foolproof. AI should be considered as a tool, rather than a solution to guaranteed profits. Although AI can process data incredibly quickly, human discretion is still a pivotal aspect of trading.

The Promise of AI in Forex

AI promises to bring numerous benefits to forex trading, often by outperforming humans in specific areas;

• Enhanced Data Analysis: AI can analyse vast amounts of data in real-time, much quicker than any human ever could. It can quickly identify patterns across multiple currency pairs, interest rates, and economic indicators, something that would take human traders hours, if not, days.

• Faster Trade Execution: In high-frequency trading (HFT), speed is everything. AI algorithms execute trades in milliseconds based on pre-set criteria, enabling traders to capture small, short-term price movements before the competition even reacts.

• Emotion-Free Decision Making: Emotion and trading don’t mix - often leading to costly mistakes. AI removes the element of fear, greed, or hesitation, making decisions purely based on data and predefined algorithms. This is especially beneficial in volatile markets where emotional discipline is paramount.

Current Realities of AI in Forex

While the promises are enticing, the reality of AI in forex is far more complex. AI may have seen success in niche areas like high-frequency trading (HFT) and pattern recognition.

However, AI has significant limitations and challenges that traders must be aware of:

• Data Dependency: AI is only as good as the data it’s given. Poor data quality or biased historical data can lead to incorrect predictions. This is why many AI models fail during black swan events that disrupt the market, such as the 2020 pandemic.

• Complexity in Adapting to Market Conditions: AI excels in stable or predictable environments but struggles in a chaotic environment that poses many unforeseen disruptions and volatility. The most recent example, the 2020 Covid-19 pandemic, many institutions had become accustomed to.

As an example, financial institutions have been known to use AI algorithms to exploit small price discrepancies across different markets, leading to some great successes. However, when the 2020 Covid-19 pandemic disrupted markets, AI struggled to adapt to the rapidly changing conditions and, in some cases, leading to large losses for the institutions running them.

For more insights on how AI is evolving in forex trading, you can check out this detailed post on Fusion Markets, where the use of AI tools like ChatGPT is discussed in the context of market analysis and trading strategies.

Common Misconceptions About AI in Forex

There’s no shortage of misconceptions about AI's role in forex trading;

• "Set it and forget it" myth: Many traders believe AI can be programmed once and left to generate profits indefinitely. This is far from reality. AI algorithms require constant monitoring, updating, and recalibration to keep pace with the ever-changing dynamics of the market.

• AI guarantees profits: Some traders fall for the myth that AI trading guarantees profits. However, no system—AI or otherwise—can ensure consistent profits. Forex markets are affected by too many unpredictable factors, such as global politics, economic crises, and even natural disasters, for any system to be foolproof.

• AI can predict black swan events: Despite all its power, AI cannot predict rare, unpredictable events like black swans. These events, by their nature, fall outside the scope of traditional data patterns and are difficult for AI to forecast.

AI vs. Human: A Balanced Comparison

AI and human traders bring different strengths to the table, and understanding these distinctions is key to developing a robust, and successful, trading strategy.

• AI’s Strengths: AI excels at processing massive amounts of data, identifying subtle market patterns, and executing trades with precision and speed. It removes human biases and can operate 24/7 without fatigue.

• Human Trader’s Strengths: On the other hand, human traders excel in areas where AI currently struggles—especially in understanding the broader context behind market movements. Human intuition, experience, and the ability to adapt to unpredictable events are areas where traders can outperform AI. For instance, human traders can weigh the political implications of an unexpected event, such as Brexit, where AI on the other hand might struggle to incorporate in real-time decision-making.

A hybrid approach that combines AI’s strengths with human insight may be the best way forward. AI can manage data processing and execution, while human traders focus on strategy, risk management, and adjusting for unforeseen market conditions.

The Future of AI in Forex

It’s still early days for AI in forex trading, but it’s rapidly evolving. Emerging technologies such as Natural Language Processing (NLP) and quantum computing are expected to transform AI's role in the financial markets further.

• NLP: This allows AI systems to interpret news articles, social media sentiment, and other forms of unstructured data that can influence market movements. For example, NLP can be used to gauge how a new economic policy or geopolitical event may impact currency pairs.

• Quantum Computing: While still theoretical in many applications, quantum computing holds the potential to perform complex calculations much faster than traditional computers. This could give AI even greater predictive power in markets where speed and computational capacity are crucial.

Our Final Thoughts

AI has undeniably transformed many industries, including the forex market. Whilst it can enhance data analysis, execution speed, and remove emotional biases, it’s no holy grail. The best approach is to employ AI with a balanced perspective—recognising its limitations whilst leveraging its strengths to complement your own trading strategies.

In short, AI is a powerful tool, but not a guarantee of success. The key to successful AI-driven trading lies in combining human intuition with algorithmic precision – we, as traders, must keep an eye on these trends but always remain cautious about relying on AI-driven systems.

Happy Trading

Read Time: 12 minutes

In the fast-paced world of forex trading, success often hinges on more than just market knowledge and technical skills. A crucial yet often overlooked aspect is the power of a strong support network. 

This network can provide invaluable insights, emotional support, and continuous learning opportunities that can significantly enhance your trading journey. In this article, we’ll discuss ideas on how you can build your own support network.

Table of Contents:

• The Power of Community in Forex Trading
• Learning Resources: The Foundation of Your Forex Education
• The Benefits of Joining Trading Communities
• Building Your Personal Forex Support Network
• Leveraging Online Platforms for Community Building
• The Role of Brokers in Your Support Network
• Continuous Learning: The Lifeline of Forex Trading
• Navigating the Challenges of Online Communities
• The Global Nature of Forex Communities
• Technology and Forex Communities
• The Psychological Benefits of a Support Network
• Conclusion: Your Path to Forex Success

The Power of Community in Forex Trading

Forex trading can be a solitary endeavour, with traders spending hours analysing charts and executing trades. However, connecting with fellow traders can transform this experience into a collaborative and enriching one. A robust forex support network offers numerous benefits, including shared knowledge, emotional support, and access to diverse perspectives.

Learning Resources: The Foundation of Your Forex Education

Education forms the cornerstone of successful forex trading. As a trader, it's crucial to continually expand your knowledge and stay updated with market trends. Several platforms offer comprehensive educational resources for traders at all levels.

BabyPips: Your Forex University

BabyPips is renowned for its "School of Pipsology," a free, comprehensive forex trading course. It covers everything from basic terminology to advanced trading strategies, making it an excellent starting point for beginners and a valuable refresher for experienced traders.

Forex Factory: Your Market News Hub

Forex Factory is a go-to resource for many traders seeking up-to-date market news, economic calendars, and trading forums. Its user-friendly interface and real-time updates make it an indispensable tool for staying informed about market-moving events.

TradingView: Your Technical Analysis Companion

TradingView offers advanced charting tools and a platform for sharing trade ideas. With over 50 million users, it's not just a technical analysis tool but also a thriving community where traders can learn from each other's chart analyses and trading strategies.

The Benefits of Joining Trading Communities

Becoming part of a trading community can significantly accelerate your learning curve and provide ongoing support throughout your trading journey.

Guidance from Experienced Traders

One of the most valuable aspects of trading communities is access to experienced traders. These seasoned traders can offer insights into market dynamics, share proven strategies, and provide mentorship. Their guidance can help you avoid common pitfalls and develop a more nuanced understanding of the forex market.

Real-Time Market Insights

Trading communities often feature live discussions about current market trends and potential trading opportunities. This real-time information can be invaluable in making informed trading decisions. Members often share their analyses of market conditions, providing diverse perspectives that can enhance your own market understanding.

Collaborative Learning Through Trade Ideas and Chart Analysis

Many trading communities encourage members to share their trade ideas and chart analyses. This collaborative approach to learning allows you to see how other traders interpret market data and make decisions. By examining different approaches, you can refine your own trading strategy and discover new techniques.

Emotional Support and Motivation

Trading can be an emotional rollercoaster, with highs of successful trades and lows of losses. A supportive community can provide the emotional backing needed during challenging times. Sharing experiences with fellow traders who understand the unique pressures of forex trading can help maintain motivation and resilience.

Active Participation: The Key to Maximising Community Benefits

While joining a trading community is a great first step, the real value comes from active participation. Engage in discussions, ask questions, and share your own insights. The more you contribute, the more you're likely to gain from the community.

Building Your Personal Forex Support Network

Beyond online communities, consider building a personal support network. This could include:

• Family and Friends: Their encouragement and understanding, especially during your dedicated trading and learning hours, can create a favourable environment for your trading journey.
• Trading Mentor: A mentor can offer tailored advice based on your trading style and goals, helping you navigate the complexities of trading the forex market.
• Fellow Traders: Connecting with other traders, whether online or in-person, can provide peer support and opportunities for knowledge exchange.

Leveraging Online Platforms for Community Building

Several online platforms facilitate community building among forex traders:

Forex Forums

Platforms such as Forex Factory, BabyPips, and MyFXbook host active forums where traders discuss various topics, from basic concepts to advanced strategies. These forums are excellent places to ask questions, share experiences, and learn from diverse perspectives.

Social Trading Platforms

Platforms like eToro and ZuluTrade allow you to follow and copy trades of successful traders. This can be an excellent way to learn from experienced traders while potentially benefiting from their expertise.

Trading-Focused Social Media

Many traders use Twitter, LinkedIn, and specialised platforms like TradingView to share insights and connect with other traders. Following reputable traders and analysts on these platforms can provide a steady stream of valuable information and opportunities for engagement.

The Role of Brokers in Your Support Network

Your forex broker can also be a valuable part of your support network. Many brokers offer educational resources, webinars, and customer support to help you navigate the trading platform and understand market dynamics. Choose a broker that aligns with your needs and offers robust support services.

Continuous Learning: The Lifeline of Forex Trading

The forex market is dynamic, with conditions constantly evolving. Your support network should facilitate continuous learning to help you stay ahead of market trends. Look for communities and resources that regularly update their content and provide insights into emerging market patterns.

Risk Management: A Community Effort

While individual traders are ultimately responsible for their own risk management, a supportive community can provide valuable insights into effective risk management strategies. Discussions about position sizing, stop-loss placement, and overall risk exposure can help you refine your approach to risk.

Navigating the Challenges of Online Communities

While online communities offer numerous benefits, it's important to approach them with a critical mind. Not all advice is created equal, and it's crucial to verify information from multiple sources. Be wary of individuals promising guaranteed returns or pushing specific trades. A healthy scepticism combined with thorough research will serve you well in navigating online forex communities.

The Global Nature of Forex Communities

One of the unique aspects of forex trading is its global nature. Your support network can include traders from around the world, providing insights into different market sessions and regional economic factors. This global perspective can enhance your understanding of currency pair movements and international economic dynamics.

Technology and Forex Communities

Advancements in technology have revolutionised how forex communities interact. From mobile apps that allow real-time chat with fellow traders to AI-powered tools that aggregate community sentiment, technology is making it easier than ever to stay connected with your forex support network. Embrace these technological tools to enhance your community experience and trading outcomes.

The Psychological Benefits of a Support Network

Trading can be psychologically demanding, with the potential for stress and emotional decision-making. A strong support network can provide a psychological buffer, offering encouragement during tough times and helping you maintain a balanced perspective. This emotional support can be crucial in developing the mental resilience necessary for long-term trading success.

Conclusion: Your Path to Forex Success

Building a robust forex support network is not just beneficial; it's essential for long-term success in trading forex. From educational resources to emotional backing, the right connections can significantly enhance your trading experience.

By actively participating in trading communities, engaging with mentors, and utilizing the plethora of online resources available, you can create a comprehensive support network that fosters your growth as a trader.

Remember, the journey of forex trading is not just about numbers; it’s about the community and connections that can help you navigate the complexities of the market. Start building your support network today and watch your trading journey flourish!

Read time: 10 minutes.

Developing a reliable and effective trading strategy is essential. One of the most powerful tools at a trader’s disposal is backtesting – a process in which you can evaluate a trading strategy’s potential profitability and consistency against historical market data.

This process helps identify strengths and weaknesses in your strategies, enabling you to make necessary adjustments before trading real money.

Given the volatile nature of Forex trading, especially in currency pairs like AUD/USD and EUR/NZD, backtesting is essential for gaining a competitive edge. These currency pairs are known for their dynamic movements, influenced by various factors such as economic indicators, geopolitical events, and central bank policies. By backtesting your strategy on these pairs, you can better understand how your approach might perform under different market conditions, providing you with the confidence to execute trades in real time.

The information provided in this article is for educational and informational purposes only. Backtesting, while a useful tool, does not guarantee future results

Read time: 15 minutes.

Read time: 12 minutes.

A diverse range of trading instruments is available in the financial markets, each presenting its own set of opportunities and challenges for investors.

Forex stands out as the largest and most liquid market globally, facilitating currency exchange 24/5 across major financial centers worldwide. Meanwhile, precious metals like gold, silver, and platinum hold enduring appeal as timeless assets valued for their intrinsic worth and utility across various industries.

• Indices, such as the S&P 500, offer snapshots of broader market performance, guiding investors in tracking trends and making informed decisions about resource allocation.
• Cryptocurrencies, such as Bitcoin and Ethereum, have disrupted traditional finance with their decentralized and highly volatile nature, reshaping the financial landscape.
• US share CFDs provide traders with leveraged exposure to American equities without owning the underlying assets, opening up avenues for speculation and hedging within the dynamic US stock market.

Understanding the distinct characteristics and dynamics of each trading instrument is crucial for navigating the financial markets effectively. Each instrument has its own unique features, including liquidity, volatility, and correlations with other assets, which significantly impact trading strategies and risk management approaches.

For example, forex trading thrives on its liquidity and accessibility but is also prone to significant volatility and sensitivity to economic indicators. On the other hand, precious metals often serve as safe-haven assets during times of economic uncertainty but are subject to supply and demand dynamics and geopolitical tensions.

By understanding each asset's characteristics, traders can tailor their strategies to suit specific instruments, maximizing opportunities and mitigating risks for consistent and profitable trading outcomes.

Forex Trading

The foreign exchange market is a global decentralized marketplace where currencies are traded. Participants include banks, financial institutions, corporations, governments, and individual traders.

Currency pairs represent the exchange rate between two currencies. The most commonly traded pairs include EUR/USD (Euro/US Dollar), GBP/USD (British Pound/US Dollar), and USD/JPY (US Dollar/Japanese Yen). Each pair consists of a base currency and a quote currency, with the exchange rate indicating how much of the quote currency is needed to purchase one unit of the base currency.

Forex trading operates 24 hours a day, five days a week, across major financial centers worldwide, including London, New York, Tokyo, and Sydney. This continuous trading cycle allows for around-the-clock trading, providing ample opportunities for market participants to engage in buying and selling currencies.

What moves prices

Many factors contribute to the volatile price movements. Economic indicators play a significant role, including interest rates, inflation rates, gross domestic product (GDP) growth, employment figures, and trade balances. Central bank policies, such as monetary policy decisions and interventions in currency markets, can also impact currency valuations.

Geopolitical events and developments, such as political instability, trade tensions, and conflicts, can cause sudden shifts in investor sentiment and currency flows. For example, the current conflicts in Ukraine and Gaza.

Market sentiment, driven by speculation, fear, and greed, can lead to short-term fluctuations in currency prices. Traders often employ a combination of fundamental and technical analysis to anticipate market movements and make informed trading decisions in the dynamic forex market environment.

Precious Metals Trading

Precious metals, including gold, silver, and platinum, have captivated humanity for centuries due to their inherent beauty, scarcity, and utility.

Gold, often referred to as the "king of metals," holds a special place in history as a symbol of wealth, luxury, and stability. Its lustrous appearance and resistance to corrosion make it ideal for jewellery and ornamental purposes.

Silver, known for its affordability and versatility, boasts a wide range of industrial applications, from electronics to medicine.

Platinum, rarer and more precious than gold, is coveted for its durability and resistance to tarnishing, primarily used in catalytic converters, jewellery, and laboratory equipment. Together, these precious metals form the cornerstone of investment portfolios, serving as safe-haven assets and hedges against inflation and economic uncertainty.

What moves prices

The prices of precious metals are influenced by a complex interplay of supply and demand dynamics, along with various economic factors.

On the supply side, mining production, exploration efforts, and recycling rates impact the availability of precious metals in the market. Geopolitical factors, including mining regulations, labor strikes, and geopolitical tensions, can disrupt supply chains and affect production levels.

Demand for precious metals stems from diverse sources, including jewellery fabrication, industrial manufacturing, investment demand, and central bank reserves.

Economic indicators, such as interest rates, inflation expectations, and currency valuations, also exert significant influence on precious metals prices. For instance, during times of economic uncertainty or inflationary pressures, investors flock to precious metals as store-of-value assets, driving prices higher. On the contrary, a strengthening economy or rising interest rates may dampen demand for precious metals, leading to price declines.

Understanding these supply and demand dynamics, coupled with macroeconomic trends, is essential for investors and traders seeking to navigate the intricacies of the precious metals market.

Indices Trading

Stock market indices, such as the S&P 500, play a pivotal role in providing investors with insights into the performance of specific segments of the financial markets. The S&P 500, for example, represents a diverse basket of 500 large-cap US companies, spanning various industries and sectors. These indices serve as benchmarks, allowing investors to gauge the overall health and direction of the stock market. Additionally, they facilitate portfolio diversification and asset allocation strategies by providing a broad overview of market trends and movements.

Stock market indices are calculated using weighted averages of constituent stocks' prices or market capitalizations. The weighting methodology varies depending on the index, with some indices employing market-cap weighting, where larger companies exert a greater influence on the index's performance, while others utilize price weighting or equal weighting.

What moves prices

Changes in the prices of constituent stocks, driven by factors such as corporate earnings, macroeconomic indicators, and investor sentiment, impact the index's value.

Indices are rebalanced periodically to reflect changes in market dynamics, ensuring their relevance and accuracy in tracking overall market performance. By tracking indices, investors can assess the performance of their portfolios relative to the broader market, identify trends, and make informed investment decisions based on market benchmarks.

Cryptocurrency Trading

The cryptocurrency markets exhibit unique features that distinguish them from traditional financial markets, with volatility and decentralization standing out as prominent characteristics.

Volatility, fuelled by speculative trading, market sentiment, and regulatory developments, is inherent to cryptocurrency markets, leading to rapid price fluctuations and heightened risk.

Additionally, cryptocurrencies operate on decentralized blockchain networks, bypassing traditional financial intermediaries like banks and enabling peer-to-peer transactions. This decentralisation fosters transparency, security, and censorship resistance, empowering individuals to control their assets and participate in a borderless financial ecosystem.

Despite the challenges posed by volatility and regulatory uncertainty, the decentralization of cryptocurrencies continues to disrupt traditional financial systems, offering a glimpse into the future of finance.

US Share CFDs Trading

US Share CFDs trading offers investors a flexible and leveraged approach to accessing US equity markets without owning the underlying assets.

Contracts for Difference (CFDs) allow traders to speculate on the price movements of US shares, including popular companies such as Apple, Google, and Amazon, without the need for direct ownership.

CFDs provide flexibility, enabling traders to take both long and short positions on US shares, thereby capitalizing on both rising and falling markets. However, it's essential to acknowledge the risks associated with CFD trading, such as leverage-induced losses, counterparty risk, and overnight financing charges.

In addition to maintaining strict risk management, traders need to stay informed about market developments and conduct thorough research to mitigate risk and achieve long-term success in trading US share CFDs.

Click here for more information on the trading products provided by Fusion Markets.

Choosing the Right Trading Instruments

Selecting the right trading instruments is a critical decision that hinges on various factors, including individual trading goals, experience level, and risk tolerance.

Novice traders may opt for instruments like forex or precious metals, known for their liquidity and relatively lower entry barriers.

Experienced traders, on the other hand, might explore more complex instruments such as cryptocurrencies or US share CFDs, leveraging their market knowledge and risk management skills.

It's essential to align chosen instruments with specific trading objectives, whether it be short-term speculation or long-term investment. Additionally, understanding one's risk tolerance is essential, as certain instruments, like cryptocurrencies, are inherently more volatile than others and may not suit everyone's risk appetite.

Diversification and portfolio management also play a crucial role in mitigating risk and optimizing returns when trading multiple instruments. Diversifying across different asset classes, such as stocks, bonds, commodities, and currencies, helps spread risk and minimize exposure to any single market or sector.

Additionally, within each asset class, diversification can be achieved by selecting a mix of instruments with varying risk profiles and correlations. Effective portfolio management involves regularly reviewing and rebalancing the portfolio to ensure alignment with changing market conditions and investment objectives. By diversifying and actively managing their portfolios, traders can enhance resilience against market fluctuations and achieve more consistent and stable returns over the long term.

Conclusion

Navigating the diverse array of trading instruments demands a comprehensive understanding of their respective characteristics and dynamics. From the liquidity of forex markets to the resilience of precious metals, each instrument presents unique opportunities and challenges for traders.

By embracing sound risk management principles, honing analytical skills, and aligning trading strategies with individual objectives, market participants can prosper in any market environment.

As you dive deeper into the world of trading, we encourage you to explore our range of products and accounts at Fusion Markets, empowering you to seize opportunities and chart your path to financial success.

Five years ago, if you had told us that Fusion would be trading over $130 billion USD in volume monthly or served tens of thousands of clients around the world, we would have laughed. Reflecting on our journey, it's astonishing to see how far we've come from those early days in a modest WeWork office in the heart of Melbourne.

To mark this milestone, we want to give back to you, our valued clients. You are the ones who have helped us grow into one of the best forex brokerages in the industry, and you deserve to celebrate with us. That's why we're offering 10% rebates on all commissions for trades opened on May 31st, Fusion’s birthday. Read more about it here.

While we still have a long way to go to achieve our mission of making low-cost trading available to everyone, everywhere, it has been an incredible journey so far. We want to share with you how Fusion has evolved into one of the world’s leading low-cost trading platforms, serving traders in over 160 countries.

It all started with me (Phil) in January 2019 in a small co-working space, working with our development team to craft what would eventually become the client hub and website. Once we were able to go live and accept clients, I was joined by my friend and former colleague, David Swinden (our COO). To keep our client’s costs low, we had to keep things pretty lean back then. I look back fondly at when we were celebrating some new milestone, cutting an almond croissant (from legendary Melbourne Lune, of course) in half to make every dollar count. We both had newborns, so our routines were early mornings and late nights after the kids’ bath. We were exhausted, but we were driven by the ambition to build something extraordinary.

Fusion Market's First WeWork Office

We already knew what we needed to do to deliver radically low costs, so we weren't worried about that. We’d spent over two decades between us helping build some of Australia’s biggest brokers. When we launched, traders immediately recognised the value we were offering. Providing $4.5 commissions with 0.0 spreads in a market dominated by $7 commission brokerages was an easy value proposition. But we didn’t expect it to go as well as it did. Traders seeking more profitability on their trades came to us in droves. In our first year, we won a number of awards like “Best MT4 Broker” and “Lowest Spreads Broker” from Brokerchooser. We were on our way, delivering value to our traders from day one.

Moving Up

As our team grew, so did our need for space. We moved into our first official office in between multiple Melbourne COVID lockdowns, located in Cremorne, Melbourne’s startup mecca. What we didn’t know at the time was that our neighbour was a bustling personal training studio. The middle of the day often brought the sound of loud techno music and heavy deadlifts constantly thudding against the walls, reverberating throughout the whole office.

Building desks and getting set up in Fusion Markets' First Official Office

Despite the noise, we thrived. Our team—experts in their fields with an insatiable hunger for success—channelled this expertise directly to our clients. In that office, we introduced MetaTrader 5, $0 Commission US Share CFD trading, Fusion+ (our proprietary copy trading platform), and several industry-leading trading tools. We were moving fast with no signs of slowing down, just the way we liked it.

The next turning point came when we moved to the big leagues with our office in South Yarra. This move not only signified our growth but also underscored our commitment to providing a better working environment for those who were on the journey with us and set us up for the future with space for 60+ desks. We wanted our team to be at their best to deliver the best possible trading experience for our clients and we found it in our new digs.

Firing on all Cylinders at Fusion Markets' South Yarra HQ

We started hitting our stride. Our dedication to excellence and customer satisfaction drove us to introduce several new products and services: we launched our exclusive Live Spreads tool, platforms such as cTrader, TradingView, extended our support hours to 24/7, and even updated our Client Hub. Our clients were getting bombarded with new improvements and features. Those awards from our first year? We're humbled to have won them and more every year since.

It's hard to encapsulate five years in a short blog post, but I wanted to highlight the essence of who we are and how we got here. Perseverance, finding the best people around the world and an unyielding commitment to saving our clients' money are the cornerstones of our journey and our current identity. That will never change.

The Future

The most exciting aspect of this journey is that we’re really just getting started. This year, we have some of our most exciting features in the pipeline: automating client withdrawals (24/7), revamping our refer-a-friend program, and launching our new spot cryptocurrency exchange, Day1x (Click the link to join the waitlist). And that’s only scratching the surface.

If you’re reading this (thank you for reading this far!), you are a core part of why we’re here today and a beneficiary of our relentless efforts to provide an unparalleled trading experience you won’t find anywhere else. To show our gratitude, we’re making sure you get to celebrate with us. Read more about our 5 Year Anniversary offering below.

The 5 Year Anniversary Promotion

We’re giving you 10% rebates on all commissions for trades opened on May 31st. This will be full round-turn commissions, so you don’t need to close your trade on the 31st. As long as it’s opened on May 31st (at any part of the trading day—00:01 to 23:59 server time), you’ll get a 10% rebate credited to your account (for both Zero and Classic accounts).

We’ve seen other companies celebrate their anniversaries but never give anything back to those who helped get them there. That’s what this birthday is all about. It's saying “thank you” by going to the heart of what makes Fusion tick; putting that little bit extra back into your pocket.

You can read the full terms and conditions here.

And here for ASIC Pro traders.

A Quick Recap of Some of Our Proudest Moments

Contents 

Defining Success in Forex Trading

The Role of Psychology in Trading

Characteristics of Successful Traders

Embracing Emotional Intelligence

Developing a Winning Mindset

The Psychology of Risk Management

Learning from Mistakes

Conclusion

Defining Success in Forex Trading