This year has seen the rise of various trends in forex trading. As the dynamic market keeps changing to accommodate improvements in technology, more traders are scrambling to find better trading strategies in an attempt to keep afloat.
If you’re just starting your forex trading journey, it’s recommended that you first study currency trading for dummies. This will offer deep insights and give you the motivation you require to proceed.
Here are the top 5 currency trading trends of 2018:
- Crypto trading has become more popular
The advent of cryptocurrencies has revolutionized how people transact. Crypto trading has gradually caught on – more traders are embracing virtual currencies, causing a dramatic trading shift. In 2018, crypto trading has be rampant as traders find better, more efficient trading strategies. Banks and other financial entities are already embracing cryptocurrencies as a revolutionary exchange trend. If you’re looking to diversify your trading strategy, it would certainly be wise to incorporate crypto trading.
- An increase in algorithmic trading
Recently, there rise of bespoke trading software has spearheaded a new type of trading known as algorithmic trading. Unlike manual trading, algorithm trading is totally automated and is characterized by high precision and speed. Traders often face the challenge of human error and sentimental bias when making their trends. This contributes to huge losses that can further spark a loss of enthusiasm. The abrupt rise in algorithm trading will change all this – traders will enjoy the perks of automated trading and possibly earn more profits. With algorithmic trading, you can conveniently place your trade when you’re sleeping or travelling.
- New forex technical indicators
If you’ve been trading for some time, you’re probably familiar with technical indicators. These allow you to predict price trends, helping you to make accurate predictions. This year has seen the rise of new trend indicators such as the infamous Ichimoku indicator. This particular indicator predicts future resistance and support levels by considering historical prices. Ensure you learn how such indicators work before using them in your strategy.
- Price transparency has been greatly prioritized
The enhancement of market regulation and boost in price transparency has dramatically improved forex trading this year. For years, concerted efforts have been made by stakeholders to forge a lasting cooperation between forex exchanges and regulatory bodies. This determination has finally bore fruits. Today’s advanced technology has offered new methods of promoting transparency, helping to create a friendly trading environment. It’s certainly a positive trend that only going to get better with time.
- An abundance of helpful forums and responsive support teams
Majority of forex trading platforms these days have integrated forums where traders from all walks of life can gather, interact and exchange ideas. Sharing tips and tricks among like minded people helps you to gain helpful knowledge that can improve your trading strategy. These platforms also have responsive support technicians that can offer help and answer any questions you might have. They’re always at your beck and call. It’s a delightful trend that continues to attract more traders into forex.
These are the top five currency trading trends that have been prevalent in 2018.