#Commodities/Futures

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WHY TRADE GOLD AND WHAT ARE THE MAIN TRADING STRATEGIES?

saifalhilali
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What should we do in risky situations such as war?

saifalhilali
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Hello guys What is the best trading strategy? Are you in favor of automated play or not?

saifalhilali
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Why Do You Think 90% Of The Traders Fail?

Umair bin Aayid
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I will be working on uploading a full course on the financial markets. Are you excited about that?

oMx6338866
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Topic: Prospect Theory and how it relates to trading? 7/01/2024

jayforexhouse
• What is Prospect Theory in trading. Prospect theory is a behavioral economics concept that explains how people make decisions under uncertainty. It suggests that individuals evaluate potential outcomes relative to a reference point and are more sensitive to losses than gains. In trading, this can influence traders to hold onto losing trades in the hope of avoiding a perceived loss, while being quicker to close winning trades to secure gains and avoid potential losses. The theory highlights the way individuals weigh risks and rewards, impacting their decision-making in financial markets. In the early 1970s, prospect theory had not yet been formally introduced. It was developed later by psychologists Daniel Kahneman and Amos Tversky in the late 1970s. However, behavioral aspects of decision-making were recognized even then, and some early studies hinted at the human tendency to evaluate gains and losses differently. Traders from that era may not have explicitly referred to prospect theory, but behavioral biases likely influenced their emotional decisions, prospect theory was still relevant in explaining how traders make decisions. Back then, it was widely recognized that individuals tend to be more risk-averse when facing potential losses and more risk-seeking when facing potential gains. In other words why you close trades early when your winning to secure profit and why you close little losses to avoid big losses is a THING. And for long now traders have known about this and fought it to be successful in trading. Fastest way to beat this is to be aware of it to actually avoid doing it. The rate of which traders don't know about this today only shows how much of a direction | Content and nonsense been thought in the name of trading guru's and mentors. Subscribe us for More insightful educational post. #JayForexHouse
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What is the most important thing in trading that cannot be ignored?

Chandan Gupta
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What are the 5 stages that must be passed through when making a transaction? ?

f167441379
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What you think about deposit $10 and join contest and can win $1000. If you interested can click link in my bio

haziqtpro
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What is the most taboo thing in trading?

Yh52357328
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Do you revenge trade?

fong zi cheng
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You can ask anything about forex.?

msfeeqah
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What Are the Benefits of Becoming an INTRODUCING BROKER?

mr.atifali05
### Financial Benefits 1. **Revenue Sharing**: Introducing Brokers earn commissions based on the trading activity of the clients they refer. This can provide a steady stream of income. 2. **Low Startup Costs**: Starting as an IB requires minimal initial investment compared to starting a full brokerage. 3. **Scalability**: The business model allows for scalable income, as the more clients you refer and the more they trade, the more you earn. ### Professional Benefits 1. **Industry Reputation**: Being associated with a reputable brokerage firm can enhance your professional credibility and reputation in the financial industry. 2. **Networking Opportunities**: IBs often gain access to a network of financial professionals and clients, providing opportunities for further business development and partnerships. 3. **Access to Resources**: Many brokerages provide their IBs with marketing tools, training, and support, which can help you grow your business effectively. ### Client Relationship Benefits 1. **Client Support**: As an IB, you can offer personalized support and services to your clients, helping them navigate the trading platform and strategies. 2. **Tailored Services**: You can provide customized solutions to your clients based on their trading needs, helping to build long-term relationships. ### Flexibility and Independence 1. **Entrepreneurial Freedom**: IBs operate independently, giving you the freedom to manage your business as you see fit. 2. **Flexible Work Environment**: You can often work remotely and set your own hours, providing a good work-life balance. ### Competitive Edge 1. **Access to Advanced Trading Platforms**: Working with a leading brokerage firm, IBs can offer their clients state-of-the-art trading platforms and tools. 2. **Variety of Products**: Many brokerages offer a wide range of financial products, allowing IBs to meet the diverse needs of their clients. ### Educational Opportunities 1. **Continuous Learning**: The role requires staying updated with market trends and trading strategies, which promotes continuous professional growth. 2. **Client Education**: You can provide educational resources and training to your clients, adding value to their trading experience and fostering loyalty. ### Marketing and Branding Support 1. **Brokerage Support**: Many brokerages provide marketing materials, brand recognition, and promotional support to help IBs attract and retain clients. 2. **Co-branded Initiatives**: You can leverage the brokerage’s brand to enhance your own marketing efforts and credibility. By leveraging these benefits, an Introducing Broker can build a successful and rewarding business in the financial markets.
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