Category Archives: Basic Forex

Basic Forex, Forex Articles, Forex Trading Articles, General Forex

No “Definite Formula” In Forex Trading

No “Definite Formula” In Forex Trading
Anyone who has spent any amount of time trading Forex will tell you that there is no “sure formula”, or one indicator, method, strategy, or system that will give you forex trading profits 100% of the time. In fact, a consistently profitable trader will be more likely to tell you that losing is as much a part of trading as winning.

But as shady brokers love to inflate the idea of getting people to open forex accounts and hope for an eternal wellspring for humanity, there is no shortage of trading amateurs and pros alike who continue to believe in a one-pan plan for profitability.

Here are three reasons why you’ll have better luck being the first man (or woman) to reach the sun than discovering the “sure formula” for forex trading:

1. No one can be prepared for ALL the uncertainties of the market.
One of the advantages of trading forex is that the bajillion factors that move currencies make it difficult for any individual or group to influence price action over a long period of time.
Unfortunately, this also makes it more difficult for traders to predict future price action.

Unless you get a superpower that lets you know what previous central bankers and economic influencers would say; warn you about natural disasters and ensuing terrorist attacks, or prepare for similar circumstances, and you won’t find a definitive formula any time soon.

2. People drive markets.
At least for now. Although mechanical trading systems, in general, have gained popularity over the last few years, humans still control the ebb and flow of the forex market.

Reasons Why There Is No “Definite Formula” In Forex Trading

Human behavior is one of the reasons why we still see trading opportunities, where the price does not reflect its value based on available data and existing market themes.

The daily multiplied scenario will leave us with an unexpected mix of potential price reactions.

3. No strategy is profitable in ALL trading conditions.
Those who have spent some time with the markets know that, like human behavior, there are patterns that tend to repeat themselves on charts.

EUR/USD may react to Stochastic’s signals and trade in the 100-pip range for days. Likewise, AUD/JPY can be counted on to bounce lower from a retest of the 100 SMA.

But what if the pattern ends and the price switches to another pattern? Most trading systems only work well until the price shifts into another pattern. Constant shifts in trading conditions and the unpredictable timing of their occurrence make it difficult for traditional technical tools to be reliable all day every day.

It takes wisdom to spot changing patterns and to identify which strategies will yield profits.

Just because there are no indicators 100% doesn’t mean you can’t be profitable trading forex. There are those who can trade full time and even more who are part time traders and are satisfied with consistent profits.

The key is controlling your risk. Since you can’t get rid of them, the least you can do is fully understand how margin trading works and learn proper risk management.

Basic Forex

Basic Forex -Forex Trading Transactions

There is a basic concept that must be understood in advance about how to profit when the forex transaction.

Trading forex / forex transactions that kind there are 2 of the transaction opening and closing the transaction.

When you perform a transaction opener, it was called the OPEN POSITION / OPEN, because you open yourself to the possibility to profit or loss can be.

Meanwhile, when you perform a transaction closing, it is called POSITION CLOSE / CLOSE to close all possible because you can gain or loss, and make it come true profit and loss.

so it could be said that the forex transactions plot:

OPEN POSITION and CLOSED POSITION, or OPEN and CLOSE.

OPEN – CLOSE, OPEN – CLOSE, OPEN – CLOSE continue like that. That’s the general idea.

OPEN type that there are 2 of BUY and SELL

What does it mean we can Buy and Sell used first? yes, in forex trading is so, but you do not need to be confused, and no to  be confused in depth, if i try to write here it will be long explanatioon You just know that in forex transactions we can BUY or SELL used first. That is all.

Now how that transaction profit?

Profit / profit would you get if:

Any price now, you BUY then prices then your UP CLOSE

or

Any price now, you SELL then price and then you CLOSE DOWN

So to say that a profit formula forex transactions that:

BUY ==> Price Up ==> CLOSE

SELL ==> Price Down ==> CLOSE

So if you want profit you must know the price is whether to ride or going down so that you can determine whether to Buy or Sell.

Regarding the way in order to know the price going up or going down please learn forex technical analysis.

Basic Forex, Forex Articles

Basic Forex – Forex Pips and contract size

“In the forex market, the unit of change in the price movement called PIP. For example, the current price of GBPUSD is 1.5600 then if then their prices change so 1.5602 is called the rose as much as 2 pips ”

Smallest Currency Unit (point / pip) and Contract Size

Point (pip) is the smallest unit of price movements in the forex. One point (pip) for the pair GBP / USD is 0.0001 while the single point for the pair USD / JPY is 0:01. Example: GBP / USD, the movement of 1.8500 to 1.8550 is 50 points.
Value per point (pip) depends on the number of contract size (lot) and the currency used.

Contract Size is the smallest amount in forex trading. In general, the contract size that is often used is the Standard Lot, Lot Mini and Micro Lot. The standard lot is equal to $ 100,000, Mini Lot is $ 10,000 and Micro Lot is $ 1,000.
If your forex broker supports Standard and Mini Lot, it means you can trade with a number of multiples of 100,000 and 10,000. For example: $ 30,000, $ 120,000, and others.

Suppose you buy (buy) GBP / USD 1 lot. Then the market moves up to 10 points. And then you close your transaction, then the advantage that you can adalahc 0.0010 x 100,000 = $ 100.

By knowing more about this lot pips and now you know that the size of the purchase amount is a lot, this loat term equivalent to the term Dozen, Kodi, RIM and others. while the size of the market movement Point or so-called PIP.

Basic Forex, Forex Articles

Forex Currency Explanation

What is Forex Currency?

Forex currency is traded currency in the forex business. Not all currencies are traded every country .Only the currency used for international payments are traded.

The following are the major currencies traded in the forex market:

Symbol Country Currency
USD United States Dollar
EUR Euro members Euro
JPY Japan Yen
GBP Great Britain Pound
CHF Swiss Franc
CAD Canada Dollar Loonie
AUD Australian Dollar
NZD New Zealand Dollar

Currency symbol consisting of three letters, which represent the first two letters of the country, while the first letter identifies the name of the currency prevailing in the country.
Example: AU, AU = Australia, D = Dollar. GBP, GB = Great Britain, P = Pounds Sterling

By knowing this currency Forex I hope you did not ask why the abbreviation of its currency as it was.