Tag Archives | trading tips

Market Overlaps & What You Should Know

The currencies market is different from all others because it’s a truly global market. Its hours of operation begin at 6pm EST on Sunday and runs until 4pm EST on Friday. And while it might be possible to trade the entire 118 hours in between, we don’t recommend it—you need to sleep sometime! There are times when the markets are active and moving, and you can use these times to benefit your trading!

There are four major currency centers in the world: Sydney, Tokyo, London, and New York. Though these hotspots are all across the globe, you can probably guess that some of the most active markets will be found within their overlap. Here are the three market overlaps you should know about:

New York/London (8am to 12pm EST) – More than 70% of all trades occur within this time period, making it by far the heaviest market overlap in the markets.

Sydney/Tokyo (2am to 4am EST) – The ideal currency pair to aim for in this period is the EUR/JPY, as these are the two main currencies involved.

London/Tokyo (3am to 4am EST) – This overlap sees the least amount of action of the three because most American traders won’t be awake at this time, and the one-hour overlap gives little opportunity to watch large pip changes occur.

As you can see, all hours are not created equal in the currencies market. If you have the opportunity, take advantage of these market overlaps in your trading and see what happens. Good luck!

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Ask & Bid: Knowing the Spread

spread

One of the most frustrating things for new traders is overcoming the spread. The spread is the difference between the bid price and the ask price at a given time. You should always consider the spread before you enter a position, as the move you’re anticipating may not be significant enough for you to turn a profit.

This difference in price can dishearten some traders. When they’ve gone into a position on a currency with a wide spread, they’re starting off in the hole, and the price has to climb that much further before they make a profit. A tighter spread, however, means you can turn a profit that much faster, as the moves don’t have to be as big.

Spreads are directly tied to volume. When there’s less volume in the markets, spreads will be larger; when there is more volume, spreads will be tighter. Volume trends aren’t a secret by any means, and you can use this knowledge to your advantage. The markets see the most volume between 8am and 12pm EST. Around 5pm EST, the markets see the lowest volume of the day.

It’s also worth noting that certain brokers offer a fixed spread while others offer a variable spread. Variable spreads bring the potential both for tighter spreads during periods of high volume in the markets, as well as wider spreads when the market is seeing low volume. Though fixed spreads are generally wider than variable, they bring predictability during periods of market volatility.

We know—it’s just another thing you need to think about before you get into a trade. But as you take these things into consideration, you’ll start to just see these things without thinking about them! But for now just remember:

Less Volume = Wider Spread
More Volume = Tighter Spread

As a side note, we at the Apiary Fund have done everything we can to make our narrow spread work for our traders. If you’re not a part of the fund currently, check out our Trader Orientation Webinar to find out more about the unique advantages provided by the Apiary Fund.

 

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Trading Shouldn’t Be All Or Nothing

What would life be like if the gym were an all-or-nothing commitment? I’d bet that given a choice between spending all day at the gym and not going at all, most of us would either burn out from overactivity or succumb to total inactivity. In the end, a healthy balance will keep you actively engaged and yield the best results!

Just as I balance my time at work and home, I’ve also learned that maintaining balance in my trading is important. Your experience with Apiary shouldn’t be all or nothing! You don’t need to spend all day trading—in fact, we discourage it!

We at the Apiary Fund recommend that our traders participate in the markets regularly and consistently, at the same time cautioning them to not overtrade. Find a way to balance your time in the coursework, the live discussions, and trading.

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3 Reasons Apiary is a Company You Can Trust

The financial industry can be a sketchy place, and if you’re not careful you could fall victim to the multitudes of scams that prey on the unsuspecting newbie. We at the Apiary Fund, however, want to be a light in darkness. We want to lead by example as we do our part to change this industry’s reputation. As such, we want to emphasize the top 3 reasons Apiary is a company you can trust:

1. We Don’t Hide Our Names

There are two reasons someone should conceal their identity: 1) You’re a superhero, or 2) you’re a scam artist. Because we at the Apiary Fund are neither of these, we are not afraid to associate our names with our company.

We not only give out our names, but we even have pictures and links to connect with us on other platforms! Meet the team here!

2. The Apiary Promise

We have not only attached our names to the company, but we, the company and the individuals that comprise the company, have made a promise to our associates. We developed the promise to ensure transparency and confidence in the company. You can trust our promise — no scams, no investment, no risk. Read the company promise here!

3. Our Forums Are Open to the Public

If you look around hard enough, you’re bound to find a lot of people who have a lot of ideas about what the Apiary Fund is and how the company operates. But the truth is that most of these opinions are pure conjecture. Very few people who publish their opinions online have ever been a part of the fund. Going to these sources to do your due diligence is like reading a review for Red Lobster written by someone who hates seafood!

If you want to hear what our traders say, check out Apiary’s forums. Only our traders and associates can contribute posts, but the forum is open to the public to read. This is a much more reliable source, as all of the contributors have first-hand experience with the company. You’ll even get a good idea of what to expect as far as atmosphere and social support! See what our traders are saying here!

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5 Reasons I Never Take Market Tips

Let’s face it—when it comes to investing, everybody has something to say. But whatever you do, don’t fall prey to bad investing advice! There are lots of reasons to never take market tips from others, but I’ve found the following five to be imperative to my success as a trader:

5. Different goals
Whoever is giving you the tip may have a long term outlook on the market and may be willing to hold the investment for 20 years until they retire. Your objective may be to make a daily income. You shouldn’t take their word for your investment. Rise and fall on your own knowledge of the markets.

4. Uncertainties
There are so many uncertainties that it’s amazing that people ever accept tips from others. When someone gives you market tips, you should ask yourself whether or not you know their knowledge level. They may have a degree hanging on their wall, but did they pay attention in class? Did they pass their tests? Would you trust this person to have done proper due diligence on their recommendation? There are so many unknowns. At the very least, if you do your own research, you’ll have no one to blame but yourself.

3. Different investing methods
A mutual fund invests differently than a hedge fund. A commodity pool invests differently than a retirement account. If you are taking advice from someone, make sure that their objective with trading are very close to the same as what you would do. Most of the time when you dig into it you will find that they are not the same.

2. They don’t care about your money
Believe it or not, the person who cares most about your money is you. You worked hard for the money that you have so before you take a risk you should evaluate the potential outcomes. How many people include a budget when they plan a family vacation? How many of those same people don’t know how much money they are looking to make when they place a trade?

1. Ulterior motives
Just like we saw Al “Mr. Green” Gore recently sell out to the biggest oil company, you don’t know if the person giving you the “tip” has something else that he is trying to do. Remember to always, always, always do your own research!

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