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Inequality Happens in the Forex Market As Well


　　Sometimes it feels as if we are running two worlds in parallel. Experienced traders have seen their profits hit record highs during the pandemic. Meanwhile, returns of less experienced Forex traders have plunged dramatically. Experience seems to be the most valuable factor determining the profits of a Forex trade during the pandemic period.To get more news about WikiFX, you can visit wikifx official website.
　　It is a longstanding feature of a rigged system: less-experienced traders suffer losses in a crisis, while experienced Forex traders make profits from it. It has been highlighted after the financial crisis and is of practical significance with the spread of coronavirus. And yet the existence of inequality in the Forex market creates barriers among traders. It‘s not true that traders don’t support the idea of using a longer time to improve their trading skills. On the other hand, they overwhelmingly support it, but many feel depressed and confused by the hard-to-ease gap in knowledge as artificial intelligence overpowers humans in trading opinion.


　　It is not comfortable when new recruitment sits with the veteran, but it only happens in understanding the inequality in trading experience and how traders view the applications of trade strategies in the current Forex market. The automated and algorithmic trading software sellers have a role to play in manipulating public awareness. These sellers focus on the dominance of experienced traders in the Forex market and magnify the time cost of acquiring positive outcomes. They also exaggerate products by offering solutions to shorten the experience gap. And the pandemic enhances the awareness that the robotic trading software has built an alternative and sole way to replace traditional trading systems. Rather than applying the software, professional traders with platforms switch the software off during the pandemic period. So far these software has framed less stable profitability in the pandemic economy but led to great losses and uncertainty.
　　Facing with the upsetting performance of auto trading, the trading experience is the last trump card we hold. Trading experience is so vital because this is the process of establishing the trading system. An effective establishment of the trading system involves time testing and profit analyzing. The time span is selected to be the last six years and will be updated from time to time. The individual trading system has to incorporate personal trading patterns and expectations. So the successful trading system varies from person to person. The Forex market has always preferred sustainability to profitability. It is proved that the greatest challenge the beginner has is to shorten the gap in time testing. With the limitation in human learning patterns and the intensity of market movements, surpassing a more experienced trader in trading system efficiency is unlikely to happen.
　　The pandemic allows beginners to compete with experienced traders in the Forex if they adjust their information diagnosis. During the pandemic, traditional indicators such as the labor market performance and central bank decisions on interest rates have limited influence on the Forex market. So studying the Forex markets history movements, along with the revealing of the pandemic-related news, provides a shortcut to ease the experience gap between traders. If traders doing GBP currency pairs apply trading systems that focus on the pandemic, they are suggested to adjust their trading strategies by focusing on the performance after the pandemic and to adjust the time frame and trading volume to increase overall profits and reduce the risk exposure. As the Coronavirus has shed some light on the Forex market. It is no longer a matter of experience and effectiveness, but the ability of traders to adapt.

USD Poised for a Nearing Rebound


　　Some investment banks analyzed that the US dollar would decline sharply regardless of the election results because its weak fundamentals are unchangeable. Such an analysis, however, is untenable from my point of view. As different results will lead to different political and fiscal measures, the fundamentals will be affected and changed accordingly.To get more news about WikiFX, you can visit wikifx official website.
　　The tax cuts which Trump signed into law after he took office in 2017 significantly increased federal budget deficits, terminating the dollar's long-enduring bull cycle. The DXY had climbed to a high of 103.77 in July 2017, compared to the low of 72.75 in 2011. The dollar prices slipped from a position of strength amid the Fed's continued tightening of monetary policy, which was pushed by Trump's tax reform. The dollar's plunge shocked a host of analysts at the time, who said, as they do today, that a Trump presidency would not change the fundamentals of the strong dollar.


　　To get back a little further in history, when Reagan defeated Carter to become president, the country was suffering from a severe recession and hyperinflation, and the dollar prices had dropped to an all-time low. But the currency immediately embraced a bull market breakout after Reagan won in November 1980, rising from 86 to a high of 163.83 in 1985, a historic gain. These examples prove that different administrations will launch different political and fiscal policies, which are important enough to change the dollar's fundamentals. Besides the new president's policies, the following two aspects will also affect the fundamentals.
　　The first is the comparison in monetary policy between the Fed and other central banks. Whether there is no need for the Fed to adopt more quantitative-easing measures deserves attention as the GDP released last week has indicated a steep economic rally. The Fed not only sees no pressures of taking additional measures but will gradually reduce the debt purchase and then signal the market exit. On the contrary, central banks in Europe, the UK and Australia have a chance to continue the ultra-loose monetary policies, such as applying more QE for economic stimulus, which are bound to push a surged government debt and fiscal deterioration, bringing devaluation pressure on local currencies.
　　Second, Europe is experiencing a serious pandemic outburst. In response to the situation, Germany, France and Britain have announced second national lockdowns. New restrictions will hit local economies and send lower-than-expected economic data to the EU and the UK. As a result, the euro and the pound are more likely to be under pressure, while the US dollar may receive strong support.

The dust has settled on the US election if nothing else, with Biden, the Democratic presidential candidate, securing 279 electoral votes to become the next president. The president-elect thus held two new records: first, to win the election at the grand old age of 77; second, to win the election with a record-breaking 75.55 million votes, beating Obama's record of 69.5 million votes.To get more news about WikiFX, you can visit wikifx official website.
　　When the initial ballot count gave Trump big leads, the US dollar rallied amid the board pressure on US stocks. However, the situation was reversed later, sparking a sharp rebound in stocks at the expense of the greenback. At first, worries about the pressures on stock markets, which would be the result of Bidens significant tax increase after his victory, prevailed financial market. But later, the fact that Republicans remained in a Senate majority boosted stock markets as it was expected that the Senate would not pass such a tax plan.


Nevertheless, there remain some concerns behind the bullish stock markets. The first is Trumps refusal to concede defeat. His campaign has filed lawsuits to prevent final certification of the election results. Second is the battle for Senate control. So far, the tally for the next Senate is 48 Republicans and 48 Democrats, which means Democrats will get a majority in the Senate as long as they win two more seats. Considering the 100 senators in total, if the election leads to a 50-50 party split in the Senate, the President of the Senate, who is also the Vice President of the country, will have a tie-breaking vote. Normally, the Vice President shall have no vote unless the Senate be equally divided. Thus the current Senate elections are in favor of the Democrats. But investors should keep a close eye on the results before feeling at ease.
　　A chief reason for Biden‘s success is the sharp left turn of his platform, which called for a substantial increase in taxes on high earners and a 100% increase in federal minimum wage from the current $7.25 to $15 an hour. Significant wage increases are bound to pose headaches for business owners and may result in stagflation, which will count heavily against the country’s economy in the long term. Such a tax increase, on the contrary, is expected to dramatically tackle the government deficits, which will put a premium on the dollar. Trumps tax cuts that were enacted after he took office boded well for US stocks at the expense of the greenback, dragging the currency down for a whole year despite the interest rate hike cycle at the time.
　　Therefore, from a macro point of view, US stocks are likely to see a long correction after the boom, while the dollar may rally on buying support after the correction. In conclusion, investors in the stock market should keep in mind that its too early to feel at ease about the current situation.

Gold Prices Set to Decline on Vaccine Shocks


The US drug company Pfizer announced that the vaccine developed against the Covid-19 appeared to be effective, which fluctuated the financial market wildly. Gold and crude oil staged strikingly different performance in commodity markets, with oil prices soaring at the expense of gold prices. The jump of oil prices in the short term is attributed to the rising oil demand stimulated by the revenge recovery in the aviation and tourism sector. But the slump of gold prices remains a mystery to which some investors have not yet found the key.To get more news about WikiFX, you can visit wikifx official website.
　　As early as August 11, gold prices also plummeted when Russia announced the registration of a new coronavirus vaccine. Thus the languish gold this time dragged by Pfizer's vaccine news is just a repeat of history. Ostensibly, the rising risk aversion punished gold in parallel with JPY and CHF. But in a deep sense, Pfizer‘s success in developing vaccines will significantly boost the US. The reason is quite simply: Americans are the first to receive the vaccine. It will largely accelerate the country’s economic recovery.


　　Pfizer's effective vaccine will give more impetus to the US economy that has already shown an outperformance. If the economic recovery sustains, the Fed may get prepared to exit the market and raise interest rates. Gold prices have a good chance to rebound both because the Feds reduction in printing paper dollars (market exit) will swell the greenback and because the risk aversion will be dampened. Notably, the new administration could enact legislation that substantially increases the minimum wage. It will lead to higher inflation and thus reach the inflation target set by the Fed, which is a chance for the US to enter the interest rate hike cycle early but will bring more pressure on gold prices.
　　For several times I have shared such an opinion that Buffett's purchase of gold mining stocks is not necessarily good for gold prices, but now both the Buffett and ordinary traders are on golds last train or even the wrong train. I firmly believe that besides the above factors, future announcements claimed by other heavyweight pharmaceutical companies worldwide on successfully developed vaccines will trigger the shakeout again in the gold market. At present, spot gold sees its major support standing at $1,848.45, where a breach below will pave the way to $1,703.2

Demo account the most shining invention to improve trading performance



Demo account is a revolutionary tool for any type of traders. All kinds of investment is risky, especially for novices. Before trading, they need to learn some tools and be familiar with the market and the mechanism involved in the transaction. As for experienced traders, they can apply new strategies and systems to trading by demo account. The demo account can help brokers open up the market.To get more news about WikiFX, you can visit wikifx official website.
1. The servers of the general platform are divided into: DEMO (virtual server) REAL (real server)


　　2. For some trading platforms, the spread of their demo account is different from the real ones. But most of platforms provide the same spread in both demo account and real account.
　　3. The data transmission of some demo accounts will be relatively slow, depending on the specific platform.
　　4. Under the conditions of large fluctuations or low liquidity, the virtual account cannot show the real market performance, such as slippage.
　　5. The biggest difference is that the funds in the demo account are virtual.
　　This article will give you a general introduction of the demo account, including its functions and features. A foreign exchange demo account (Demo Account) is a type of trading account that usually “funds” traders with some simulated currencies to allow them to conduct virtual transactions and follow the ins and outs of the familiar platform. Because it is a demo account, there is no real profit or loss for traders.
The foreign exchange demo account provides traders with a risk-free trading environment. The profits and losses in the demo account will not be included in cost. Moreover, novices can learn the knowledge of foreign exchange transactions and understand the types of order, various functions of platform and the environment of trading market, as well as how to use leverage through the demo account and risk management.
　　For experienced traders, some innovative ideas and strategies can be tested through virtual trading, and they can adjust the performance of the strategy applied in the account to prepare for the trading in real market.

To Carefully Balance the Effects of Pandemic and Vaccines


Financial markets fluctuated wildly after Pfizer announced its effective Covid-19 vaccine last Monday. Since there are limited subjects for speculation, talking points across financial markets ahead of Thanksgiving Day remained to be the aftermath of the US election and the impact of the resurgence of Covid-19 in the US and Europe.To get more news about WikiFX, you can visit wikifx official website.
　　With that said, however, financial markets are paying a close eye on drugmakers' potential announcements about successful vaccine development because such news will reverse the market trend. For example,an investor who shorted US dollar index futures should be alert to the retaliatory rally of the DXY in the case of another positive news on the vaccine being announced by a large US pharmaceutical company.
　　There are uncertainties in financial markets, but it is inevitable to see more large drugmakers declaring effective vaccines. Such a trend will underpin the DXY at the expense of the short-term Japanese yen. With regard to gold prices, investors should balance the effects of pandemic and vaccines when speculating so as to avoid another shakeout. While speculation on the pandemic resurgence can be adopted only in the short term, that on the vaccine should be considered for a long period, which will recover economic activities.


　　Although vaccines will definitely put a premium on oil prices, Biden's foreign policies and energy policies will hinder oil's long-term development. Thus it is worth repeating that investment in oil products, which is inspired by vaccines, is acceptable only in the short term, no matter profitable or not. As Biden's policies will be detrimental to oil prices in the long run, the oil may give up large of the advances and drop from the high level. In turn, investors should take the strategy of selling high for gold as its prices are expected to be bearish in the short, medium and long term.

Trading at the Right Time

The most obvious difference between the forex market and other trading markets is the constant trading hours and the unconstrained trading places. Trading at the right time helps generate a great profit.To get more news about WikiFX, you can visit wikifx official website.
　　In other words, the forex market is a 24-hour non-stop market. The main fluctuations and trading hours start from New Zealand‘s working Monday morning to Chicago’s Friday afternoon. There is also a small number of forex transactions at weekends of the Middle East time, but they are basically negligible as normal inter-bank weekly exchanges rather than speculation action. In summary, the forex market is a continuous trading market that never closes.


　　In the 24 hours, every trading session in the forex market has its own moving patterns and characteristics. So we have to adopt corresponding strategies at the appropriate time to increase the rate of return and the risk exposure of trade.
1. The New York forex market is the largest one in the United States. The market has established the most modern electronic computer system. At 10:00 p.m. Johannesburg time, the last transaction price in the market is the closing price of the previous day, and the first transaction thereafter is the opening price of the day.
　
　　2. The London forex market is a prestigious international forex market. As the center of the European currency market, the London forex market sees a large number of foreign banks establishing branches here. In this market, banks and other financial institutions operating forex trading have adopted advanced electronic communication equipment and turned to be the center of Euro-Dollar transactions.

　　3. Tokyo has developed its forex market from a regional forex trading center to the third largest forex market in the world following London and New York. Its annual trading volume ranks third in the world. At present, the largest transaction in the market is still the Yen-Dollar pair.

　　4. Hong Kong is an important international financial center in the Far East. The market participants are divided into three types: commercial banks, deposit companies and forex brokers. Commercial banks mainly refer to foreign banking groups composed of HSBC and Hang Seng Bank, which account for about 80% of all market businesses.