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Why choose Hantec Markets
What is a demo trading account?
Demo trading accounts offer a simulated market environment where you can recreate the experience of real trading without exposure to actual losses. You can use it to understand the mechanics of different products and gain a feel for how financial markets work. Demo accounts help you understand trading risks by providing a safe space where you can explore and experiment with confidence.
Once you open a demo trading account with Hantec Markets, you can download MT4 and be trading in minutes with a virtual balance of £10,000 to practice with.
Whether its work, sport, or academia, preparation and planning are crucial to success. Forex trading is no different.
New traders are often under the impression that Forex or Contracts for Difference (CFD) trading is simple stuff and just a matter of picking a direction for the market (up or down) and then collecting the winnings.
It does not take long, however, for this view to be painfully dispelled.
The Indicators to look out for
We help our clients educate themselves about markets and build an understanding of the importance that specific data can have for a country’s economy. Economic data can impact a variety of traded instruments and asset classes.
Key economic indicators for the big markets can also impact your trading positions.
That’s because the release of a key economic indicator can completely change market sentiment about an instrument’s price, turning a bullish day into a bearish day or vice versa. Data can drive markets through key support and resistance levels that previously seemed to be rock solid.
Why? The reason is that key economic indicators have the power to change market perceptions and expectations.
All economic data plays a role in building the macro picture. However, there are key indicators that really need to be focused on:
- Central bank Monetary Policy
- Consumer indicators
A few tips for identifying trends in economic data:
- Concentrate on the year-on-year data
Looking past month-on-month data can help remove a large number of random fluctuations and iron-out future revisions. It is also possible to better identify the trends in yearly data.
Volatility in monthly data means the market will tend to focus far more on the year-on-year trend. For example, if the data misses expectations on the monthly data, but the year-on-year data beats market expectations (possibly due to prior revisions), then this will be seen as a positive.
- There are leading indicators and laggard indicators.
Leading (or forward-looking) indicators like consumer data and PMI surveys will often drive market volatility far more than laggard (or backwards-looking) indicators like unemployment or industrial production.
- Headline versus adjusted (core) data.
You will usually find that headline and core data are announced at the same time (for example, with inflation or retail sales). The “headline” number may be the data talked about in the newspapers the next day. Still, often this data will be full of volatile or distorting elements. Experienced traders will tend to look more towards “core” data, which is a cleaner version and provides better guidance.