Trading with Plus500 Simple strategy that is efficient

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Trading with Plus500: Simple strategy that is efficient

Plus500 is a broker of whom you must have heard. You may praise it or curse it as many traders do. Let’s throw prejudices away and look at Plus500 without bias. Having tested the basic features for you, you can compare to what extent our experience regarding its trading platform and the opening of an account meets your expectations.

Broker Plus500

Plus500 is a CFD broker, established in 2008. It is an Israel-based broker with affiliations in London and Limassol. Its key advantage is an in-house platform, which requires a standard internet browser. Plus500 has been offering support in various languages and trading in all different currencies for literally years.

Sign up/Registration

I assume that you want to start your trading with a demo account. Which is exactly what we recommend. Nothing is easier than to open an account with Plus500. Within a minute everything is done. You just enter your e-mail, password and get access to the trading platform with a virtual million on your account. All this is happening in your browser, so you don’t have to make any installations.

The availability of choosing any platform is a big plus to start with. Especially users of OS X, (i.e. Apple product) will be happy because a lot of trading platforms offer Windows only. Plus500 has also an application for Windows. As to the operating systems and the usage, you can rely on platforms for both iOS and Android allowing you to watch your trading from any place, indeed.

The disadvantage of doing business over an in-house platform is that you can’t accommodate the chart to be better readable. This is a minor flaw. But you can still open MT4 aside; just in case. If you decide to enter a trade you will log in (in the browser) and execute the trade.

Plus500’s demo platform

Trading platform

The trading platform as such is very simple and mostly intuitive. This is what some experienced brokers may see as a disadvantage. After opening the system, in the top section of your screen, you will see a list of instruments, in the lower section the chart. You can easily choose your preferred instrument by the name or go through the list. Given the countless number of currencies, cryptocurrencies, commodities, shares, indices, I recommend that you enlarge the chart to cover all your screen and read it in detail. A quick trading order to sell or buy can be chosen from the preview. Look at the picture above.

Your chosen instrument is complemented by sentiment. Be careful, brokers offers this data from time to time but usually this data is data from a given broker i.e. client data. Even the biggest retail trading broker is not big enough to keep its data absolutely accurate. There is a way to make the data more precise, which is to add some data from futures. Anyway, I don’t think that Plus500 is using this method. Be cautious with this indicator.

As to the list, details about currency rates in various time zones are more interesting – unit volumes, leverage or a tight spread. Useful is also the below information including trading hours. This list is highly appreciated.

Market analysis

So far, so good. All looks nice and transparent. What about the number of instruments offered by Plus500 for analyzing the market? Here I must admit this is one of the limitations of having a trading platform in a browser. If you work with MetaTrader in more detail perhaps you download or create your own indicators and insert them in MetaTrader folder (typically on disc C://Program Files/Meta Trader/Indicators). With a browser you don’t do such things, do you? Well, but is it necessary?

Making a basic analysis of trend lines is an easy task, no problem. You can also add Fibonacci lines, an arc, a fan or just some text. The portfolio is broader one may get the impression that nothing is missing. Or am I wrong?

With Fibonacci setting, I appreciate the possibility of adding your own level. This is a fundament. The portfolio offers default basic values but some forex traders use their own values. I personally tested some more levels and from time to time displayed them on the screen, just in case. With Plus500 this is not possible which is a pity. In the top section next to the timeframe, you can see a traditional coordinates cursor.

Those who prefer indicators such as ADX or Stochastic will surely appreciate it, I think the selection is more than sufficient.

Fortunately, the broker did not forget about the setting of indicators so you can choose a period you like. This is an area without limitations.

Trading order

You will not be surprised by the simplicity of all transactions, taking a long or short position, trading commodities or application of indicators. Here I must warn you. It’s the default amount. This may not comply with your money management and you will feel that it is too high. Always check the amount of your trade first before placing the order.

How to trade with Plus500 (strategy)

A natural question: How to trade? We described the process several times in the past. There are hundreds or even thousands of forex trading strategies. Of the quantity available on the internet we have shown you some ways for example gap trading.

In gap trading you speculate on filling gaps occurred usually over weekends when trading is closed. Another option to apply this strategy is to find three candlesticks where the high of the first one does not overlap the low of the third one (in case of an upward formation) or the low of the first one does not overlap the high of the last one.

Using these levels, you will draw trend lines and after a breakthrough takes place you will speculate on filling the gap. It may look as follows: (middle candlestick is the 6 th from the right, the chart includes highs of the previous one and lows of the next one, they don’t overlap but logically form a gap).

This trading strategy matches with the Plus500 concept as it is simple, transparent and – in the opinion of many traders (me inclusive) – functional. Obviously, it depends on the settings, instrument etc. If you are interested in this trading strategy test it on a demo account using historical data. We don’t recommend that based on this article you start trading with a live account. Ideas are nice but the practical making of a trading strategy is your homework.

Plus500 manages more challenging analyses. Overall, the number of limitations is minimal. I dare say that 75 % of traders are happy with the existing amount of features. Otherwise, they would not continue trading with this broker.

Start trading with Plus500

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Author

More about the author J. Pro

Unlike Stephen (the other author) I have been thinking mainly about online business lately. I wasn’t very successfull with dropshipping on Amazon and other ways of making money online, and I’d only earn a few hundreds of dollars in years. But then binary options caught my attention with it’s simplicity. Now I’m glad it did because it really is worth it. More posts by this author

Basic Forex Trading Strategies and Indicators

Traders use a wide range of FX trading strategies. Each strategy can be customised or tailored to the individual needs of a trader and used in conjunction with other strategies.

When considering which trading strategy is best for you, you need to take into account your personal goals, risk appetite, experience and trading preferences. Before exploring the different trading strategies, we will first outline two key trading methodologies: fundamental and technical analysis.

Fundamental Analysis vs. Technical Analysis

Traders generally sit in one of two categories: fundamental or technical.

Fundamental traders will look for wider economic variables to determine whether or not a currency pair will appreciate or depreciate To take a basic example, if an economic report came out that was particularly strong, then it might indicate a currency could appreciate relative to another currency. However, if all traders expected the economic report to be strong (prior to the report being released), the impact of the report would already be ‘priced in’ to the market.

On the other hand, technical analysis utilises chart indicators and patterns to analyse past performance in order to determine whether a currency pair, such as the Euro to US Dollar (EUR/USD), is overbought or oversold. By relying on statistical trends or patterns, like volume and price movement (appreciation/depreciation), traders seek to predict which way a currency pair may swing. Of course, traders can utilise a blend of technical and fundamental analysis to evaluate potential investment opportunities.

In light of the above trading methodologies, below is an outline of a number of approaches and indicators that can be used when trading forex.

Position Trading

Position trading is a strategy where traders hold positions for longer periods of time, usually weeks or months. Position traders will generally utilise fundamental analysis and economic data. However, when opening a new position, position traders might make use of technical analysis.

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A position trader may wait until a currency pair reaches a (predetermined) support level before taking a long position and holding it for a few weeks. There is presumably less immediacy associated with this type of trading, as traders are not necessarily concerned with intraday prices and generally open fewer positions (when compared to other trading strategies). However, as is the case with any kind of trading, traders need to have a firm grasp of market fundamentals and position trading largely relies on fundamental analysis.

Simple Moving Average

Simple Moving Average (SMA) is an important technical indicator and one of the most frequently used trading strategies. SMA is used to determine if an asset price will move up or down. It is calculated by taking the closing daily price of an asset and dividing it over the total days to get an average. The line that is created by the SMA is then used, along with other technical indicators, to gauge price movements. An SMA line can be of any duration, however, technical traders tend to follow the 50-, 100- and 200-day moving averages. You can test different strategies utilising our charting system.

Exponential Moving Average

An exponential moving average gives more importance to recent closing prices. When using these lines, it is advised to take into consideration that they are lagging indicators which may not respond quickly to sharp changes. Short-term trading periods might not have enough price indicators to be reliable. However, they do give a clear visual picture of overall trends and can be very useful in currency trading. EMAs place more importance on recent data than on older data, so they tend to be more reactive to price changes than SMAs. This makes results from EMAs more efficient and is one of the reasons why they are the preferred average among many traders.

Relative Strength Index

Relative Strength Index (RSI) can be used in tandem with the SMA line for additional clarification on the possible trend of an instrument. RSI demonstrates whether an asset is overbought or oversold, based on an index of 0 – 100. Typically, an asset under 30 is seen as oversold, whereas an asset over 70 is seen as overbought. So, if an asset is under 30, it might be a good time to buy, and it might be a good time to sell if it is over 70. Remember, this is just a general indicator and you will often need to tailor your forex trading strategies depending on the asset in question.

Bollinger Bands

Like the RSI, Bollinger Bands are often used with SMA lines as one of many trading strategies. But Bollinger Bands are inseparable from the SMA line. They are created by calculating the standard deviation from a given SMA line. Standard deviation is simply a measure of volatility. When the bands widen, this is an indication that the market has become more volatile. When they contract, the market has become more stable. A Bollinger Band will have an upper and lower threshold above and below the SMA line. The SMA line is sometimes referred to as the ‘middle’ Bollinger Band 1 .

These are just 4 of many different forex trading strategies that traders adopt to help enhance their trading success. There are numerous combinations of FX trading strategies and no limit to the number of technical indicators that you can use.

If you want to learn more advanced trading strategies, then consider our CFD trading platform, featuring more than 90 technical indicators, advanced drawing tools and in-depth analytical tools which will help you learn the nuances of forex CFD trading. You can also practice your skills in our risk-free, unlimited demo account.

To try our indicators, simply sign up/log in, select an instrument, go to its chart and click on the (Fx) icon.

This article contains general information which doesn’t take into account your personal circumstances.

1 A screen capture of the Plus500 platform, as of September 2020. Illustrative prices.

Basic Forex Trading Strategies and Indicators

Traders use a wide range of FX trading strategies. Each strategy can be customised or tailored to the individual needs of a trader and used in conjunction with other strategies.

When considering which trading strategy is best for you, you need to take into account your personal goals, risk appetite, experience and trading preferences. Before exploring the different trading strategies, we will first outline two key trading methodologies: fundamental and technical analysis.

Fundamental Analysis vs. Technical Analysis

Traders generally sit in one of two categories: fundamental or technical.

Fundamental traders will look for wider economic variables to determine whether or not a currency pair will appreciate or depreciate To take a basic example, if an economic report came out that was particularly strong, then it might indicate a currency could appreciate relative to another currency. However, if all traders expected the economic report to be strong (prior to the report being released), the impact of the report would already be ‘priced in’ to the market.

On the other hand, technical analysis utilises chart indicators and patterns to analyse past performance in order to determine whether a currency pair, such as the Euro to US Dollar (EUR/USD), is overbought or oversold. By relying on statistical trends or patterns, like volume and price movement (appreciation/depreciation), traders seek to predict which way a currency pair may swing. Of course, traders can utilise a blend of technical and fundamental analysis to evaluate potential investment opportunities.

In light of the above trading methodologies, below is an outline of a number of approaches and indicators that can be used when trading forex.

Position Trading

Position trading is a strategy where traders hold positions for longer periods of time, usually weeks or months. Position traders will generally utilise fundamental analysis and economic data. However, when opening a new position, position traders might make use of technical analysis.

A position trader may wait until a currency pair reaches a (predetermined) support level before taking a long position and holding it for a few weeks. There is presumably less immediacy associated with this type of trading, as traders are not necessarily concerned with intraday prices and generally open fewer positions (when compared to other trading strategies). However, as is the case with any kind of trading, traders need to have a firm grasp of market fundamentals and position trading largely relies on fundamental analysis.

Simple Moving Average

Simple Moving Average (SMA) is an important technical indicator and one of the most frequently used trading strategies. SMA is used to determine if an asset price will move up or down. It is calculated by taking the closing daily price of an asset and dividing it over the total days to get an average. The line that is created by the SMA is then used, along with other technical indicators, to gauge price movements. An SMA line can be of any duration, however, technical traders tend to follow the 50-, 100- and 200-day moving averages. You can test different strategies utilising our charting system.

Exponential Moving Average

An exponential moving average gives more importance to recent closing prices. When using these lines, it is advised to take into consideration that they are lagging indicators which may not respond quickly to sharp changes. Short-term trading periods might not have enough price indicators to be reliable. However, they do give a clear visual picture of overall trends and can be very useful in currency trading. EMAs place more importance on recent data than on older data, so they tend to be more reactive to price changes than SMAs. This makes results from EMAs more efficient and is one of the reasons why they are the preferred average among many traders.

Relative Strength Index

Relative Strength Index (RSI) can be used in tandem with the SMA line for additional clarification on the possible trend of an instrument. RSI demonstrates whether an asset is overbought or oversold, based on an index of 0 – 100. Typically, an asset under 30 is seen as oversold, whereas an asset over 70 is seen as overbought. So, if an asset is under 30, it might be a good time to buy, and it might be a good time to sell if it is over 70. Remember, this is just a general indicator and you will often need to tailor your forex trading strategies depending on the asset in question.

Bollinger Bands

Like the RSI, Bollinger Bands are often used with SMA lines as one of many trading strategies. But Bollinger Bands are inseparable from the SMA line. They are created by calculating the standard deviation from a given SMA line. Standard deviation is simply a measure of volatility. When the bands widen, this is an indication that the market has become more volatile. When they contract, the market has become more stable. A Bollinger Band will have an upper and lower threshold above and below the SMA line. The SMA line is sometimes referred to as the ‘middle’ Bollinger Band 1 .

These are just 4 of many different forex trading strategies that traders adopt to help enhance their trading success. There are numerous combinations of FX trading strategies and no limit to the number of technical indicators that you can use.

If you want to learn more advanced trading strategies, then consider our CFD trading platform, featuring more than 90 technical indicators, advanced drawing tools and in-depth analytical tools which will help you learn the nuances of forex CFD trading. You can also practice your skills in our risk-free, unlimited demo account.

To try our indicators, simply sign up/log in, select an instrument, go to its chart and click on the (Fx) icon.

This article contains general information which doesn’t take into account your personal circumstances.

1 A screen capture of the Plus500 platform, as of September 2020. Illustrative prices.

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    Binarium

    Top Binary Options Broker 2020!
    Best Choice For Beginners!
    Big Sign-Up Bonus!
    Free Trading Education!
    Free Demo Account!

  • Binomo
    Binomo

    Only For Experienced Traders!

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