Guest Contributor

Competition in the forex market can be brutal. Trading on gut instinct alone isn’t the smartest market strategy when it comes to maximizing your profits. One of the first things most new forex traders learn is the importance of strategy combined with useful tools.

Some strategies are very complicated and beyond the scope of the beginner or even intermediate forex trader. Likewise, some tools necessitate programming algorithms using Python, C++, R, Matlab or other quantitative programming languages.

Pivot Points vs Bollinger Bands

Fortunately, there are a couple of tools that many forex traders use to enhance their trading. These are the Bollinger Bands and the Pivot Point Indicator.

Bollinger Bands

Bollinger Bands are a popular technical analysis technique. Basically, they are bands two standard deviations above the moving average and two standard deviations below the moving average. They are very useful in determining the trading range and volatility of a currency pair.

As volatility in the market increases, the bands expand, and when the market volatility decreases, the bands shrink. The bands also provide guidance as to pricing trends since prices tend to meet resistance as they approach the upper band and find support as they reach the lower bands.

Pivot Point Indicators

A pivot point is a price point that represents a possible change in pricing direction. It is calculated using a formula that includes the previous day’s high, low, and close. The pivot point represents a point of resistance or support in the market. By knowing where the pivot points are, traders can utilize several strategies to take advantage of them.

One of these is the pivot point bounce where traders can trade on the pivot point and take advantage of a change in price direction. Another is the pivot point breakout where traders can bet that their currency pair is going to break through the resistance or support and make significant gains.

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Found yourself in a sudden financial fix? It happens to almost everyone. These are hard money times for a whole lot of people in a whole lot of places. Of course, this forlorn financial fact doesn’t make it any easier when a money disaster happens to you.

How to Handle Unexpected Financial Disasters

A financial disaster tends to occur at the worst possible time. Read what we’re about to tell you, and you will be better equipped to handle life’s unexpected money disasters.

Expecting the unexpected

One’s financial condition can change overnight. No, it’s not fun to think about, but it is imperative that one is prepared.

If you lost your job, had an unforeseen medical emergency, or lost a lengthy lawsuit, would you be able to cope? What would you do if your family car blew a head gasket and required pricey repairs?

If lightning hit your house, would you be able to pay for emergency roof repairs? Anticipating a surprise cash crisis can help you deal with it if and when it happens. And it probably will.

Of course, it’s not always a single event that sends a person’s finances swirling down the drain. Sometimes, a number of nagging worries build to the breaking point, facilitating a veritable tidal wave of fear, stress, and anxiety. You’d probably fare a whole lot better if you had a backup plan in place. Expect the unexpected, and know what to do when a surprising money mess befalls your budget.

Managing an out of the blue move

Not all money misfortunes are the result of something awful. A person working their way up the corporate ladder may be asked to relocate to a new city to accept a higher position. While this could be fabulous news to the person being promoted, it can also be a big unexpected expense. Being transferred to accept a better job can be costly. In fact, count on it being a budget breaker unless you have an emergency savings plan in place.

The cost of moving companies and temporary accommodations in a new location can be massive. In many cases, the employer requesting the relocation will pick up some or all of the moving expenses, but it’s still wise to have a buffer of backup money, explains US News.

Steps back to financial solvency

The first step toward financial recovery is identifying the source of the problem. Do you overspend on unnecessary items? Do you remit only the minimum monthly payments on high-interest credit cards? Money woes often follow a period of financial mismanagement.

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