Category Archives: Forex Trading Articles

Forex Trading Articles

Making Money Online Through Forex Trading

Leave a comment

Successful online forex trading requires a great level of understanding, great experience, high acumen and towering exposure. It is not a market you go over within few hours or in a day and think that you have mastered it. However, many online forex traders are failing to be on top of what is happening in the market; hence they are losing money at alarming rate. But the skilful traders are making their money because knowledge makes the difference!

As a forex trader in a Bureau d’Change before I moved into a bank, I believe I have some good level of exposure to write or talk about currency trading (forex trading). I know forex trading, experience aside, is backed by per minute information update.

How Online Forex Trading Operates:

Forex market requires that you seek new information almost always (at per minute intervals). This may mean working the telephone incessantly by calling fellow market operators for happenings in the market. In online trading, it means being on the net almost always to monitor the flagellation of currency rates which change per seconds. By so doing, you are able to prompt action to equalise or mitigate bad buy with new bids or initiate ‘sell order’ so that at the end you are able to get your brokerage (the margin known as spread or profit).

Also in online currency trading, it is not immediately you complete your ‘bid’ or ‘ask’ and ‘submit’ that your request becomes accepted. Experienced operators know this fact very well. When you fill the bid page (based on what the market prices is at that time) and click submit, a new page opens. The belief is that your request has already gone in and taken. But this is not so: there is a time lag between when you submit your bid and when your price quotes hit the trading platform. During the time intervals, currency prices have changed! Operators who have integrity to protect do explain this.

Currency Trading Attracts High Risks:

Permit me to reproduce the warning (disclaimer) published by FX Solutions (a reputable operator in online forex trading). “FX Solutions, LLC believes that customers should be aware of the risks associated with over-the-counter, spot forex. Forex trading is highly speculative in nature which can mean currency prices may become extremely volatile… Forex trading is highly leveraged, since low margin deposits normally are required, an extremely high degree of leverage is obtainable in foreign exchange trading. A relatively small market movement will have a proportionately larger impact on the funds you have deposited. You may sustain a total loss of your funds. Since the possibility of losing your entire cash balance does exist, speculation in the Forex market should only be conducted with risk capital you can afford to lose which will not dramatically impact your lifestyle. With these risk disclaimers, online forex traders are warned.”

Forex Trading Articles

Forex Trading Strategies – the Best Strategy for Novice Traders for Huge Gains

Leave a comment

If you are looking at forex trading strategies and want to win with a simple one which works and will always work and takes less than 30 minutes a day then, one enclosed is for you. The strategy we are going to look at here is a long term breakout strategy.

The reason it works and will continue to make profits, is outlined below, as well as tips on what you need to incorporate in your Forex trading system to win.

Focus on the Big Trends

Firstly, look at any Forex chart and you will see big trends, that last for months or even years. If you can lock into these trends you can make huge amounts of money with leverage on your side. Forget about trading short term and focus on the long term, the odds are better and there is more money to be made.

Catching the Moves

If you look at any Forex chart, you will see that most big trends start from breakouts to new chart highs or lows and you should trade these breakouts.

Most traders can’t because they want to wait for the market to come back to get in at a more advantageous price but they wait in vain, as the trend continues.

If they would have bought the break, the odds of it continuing are high and they would have made money but they missed the move. This is why it makes so much money because most traders simply cannot do it. If you learnt to go with these breaks you can make a lot of money.

You only want to trade breakouts, where support and resistance is considered important by traders, so lots of tests and the level should have held at least twice before.

Indicators to Use

When trading breakouts, all you need are bar charts and some indicators which will tell you if momentum is accelerating into the break. If it is, chances are the break will continue. We have discussed various indicators in other articles – but two great ones are the stochastic and RSI, you can learn all about them in an hour or so and if you use them to confirm your moves, you will get the odds in your favour and win more trades.

Money Management

This is easy when trading breakouts – put your stop under the breakout point and wait for the move to gather momentum and then trail it – but don’t trail to close! Most traders move their stops to close and get taken out of the trade by short term volatility.

When trading big breakouts, you need to trail your stop slowly and outside of the pullbacks. Remember, to catch the big long term moves and stay with them you must accept short term swings against you.

That’s it

You can put together a simple, forex trading strategy, based on breakouts, in a week or less and trade it in about 30 minutes day.

Of all the Forex trading strategies you can use, as a novice forex trader this is one of the best as its so simple, so effective and so time efficient.

It works and will continue to work, as long as markets trend long term which doesn’t look like changing – So trade the big breakouts and make big Forex profits!

Forex Trading Articles

Forex Trading – the 2 Key Errors the 95% of Losers Make

Leave a comment

Most traders lose at Forex trading and a whopping 95% enjoy a total equity wipe out if you want to win then you need to make sure you don’t make the same mistakes…

The first error most traders make is believing is believing the so called Forex Expert.

These Forex experts tell you that you are going to make money with no effort following their Forex trading signals or Robots. Of course anyone who does use these so called expert systems gets a swift wipe out of account equity.

The problem is – anyone can call themselves a Forex expert and they do however most have never made any real money, they normally have no more than a track record on paper which has been done in hindsight – that’s easy! Trading not knowing the prices is real world and that’s a lot harder. All these simulated systems get turned to dust in the real world.

It’s pretty obvious that if there are big gains to be made, you need to know the basics and make an effort to win; this is true in all areas of life and Forex trading , you get nothing for no effort.

The next error is one where traders underestimate the importance of mindset in terms of making Forex profits. Lets look at this it in more detail.

Fact:

Anyone can learn forex trading if they have the right education.

Getting a simple robust strategy together that can make profits is easy – the hard part is applying it with the right mindset.

Most traders simply cannot trade with discipline and keep losses small, while they wait for profits to come to cover these inevitable losses. It’s not easy to take losses, as the market wrong foots you and takes your money – it’s hard. We all have egos, we all have emotions and trading with discipline is very hard. Of course it can be done but it requires you have the following:

1.    Rock solid confidence in your system to perform long term and this comes from education.
2.    The view that you have to lose to win and you can take these losses cheerfully and see them as part of winning.

Forex Trading Is Hard but the Good News is:

Forex trading is NOT the walk in the park many vendors would have you believe and with the rewards on offer you wouldn’t expect it to be however, get the right forex education, the right mindset and take charge of your financial destiny and you could soon be making huge profits in just 30 minutes a day.

Forex Trading Articles

Forex Trading – Back to School Forex Education

Leave a comment

Foreign exchange trading could be a complex business to get into. The only way for any beginner to learn the ropes of forex trading is to go through intensive education and training. Quite heavy, so it seems. But, broken down in digestible chunks, you will soon be able to find your way around a successful forex trading business. There is a way to teach you the intricacies of forex trading in a simple and understandable way. Replicating the way you learned your ABCs and 123s, you will soon speak forex as if it is your second tongue. Soon, you will join the new breed of successful traders in the foreign exchange market.

Simply put, succeeding in forex trading rests on three things: making pips, keeping pips, and repeating the cycle. If you can master these three things, you are on your way to successful forex currency trading and forex options trading. To make things easy for you, you can break down your forex trading much like your early education was broken down. You move from one level to another once you have successfully completed the learning requirements of each level.

At the School of Pipsology, you learn the basics of forex from Pre-school, to elementary, to high school, to college, and then on to further more advanced studies. Graduating from each level will take you through learning milestones until you are finally able to identify trading opportunities, time the market, and close a trade. There are lots of important forex concepts to learn at the School of Pipsology if you want to be a successful forex trader. By the fifth grade level, you will already have learned how to do basic market analysis and read common chart indicators as Bollinger Bands, MACDs, Parabolic SARs, Stochastics, and RSIs. The best thing about it is that you can learn in simple terms and therefore at a faster pace.

Forex Trading Articles

Forex Trading – the Building Blocks to Learning Forex

Leave a comment

Forex education is a critical part of starting a successful forex trading endeavor especially for someone who does not really know anything about the forex market. A lot of people have already been duped about how easy it is to make money trading forex. Without the right fundamentals, you will only succeed in gambling away your money – reaping gains on minute and then losing them again in bad trades. It is only through a thorough understanding of forex trading can you truly make a carefully planned forex trading portfolio to earn both short and long-term profits. You can start with learning about the building blocks of forex.

In the Kindergarten level at the School of Pipsology, you will be introduced to the basics you need to know to actually understand what trading is. You will learn about the two types of trading, fundamental and technical, as well as the types of charts used in forex trading at this level. Making a fundamental analysis of the market will be taught by showing how the market is affected by the country’s economy. A technical analysis, on the other hand, will involve looking closely into price movements using charts. These charts are also outlined in this level. As you move on to 1st Grade, you will zoom in to candlestick charts, the most common of all charts used in forex trading.

You will find that candlesticks are formed by plotting in open, high, low, and close figures. The significance of this kind of plotting will show you how the market is buying or selling. By looking at how the candlesticks are formed, it is easier for you to see the direction the market is taking and consequently make your own trading decisions.