Category Archives: General Forex

General Forex

How To Design Your Own Forex Trading Strategy

Most of the Forex traders experience some serious losses that bring those traders confidence down and they prevent themselves from trading with the essential levels of discipline for success. As such they don’t have sufficient to face the challenges and change their losses into profit. If you are suffering from these problems then you need to use the best your Forex trading strategy. In particular, you have to understand that if you are performing then this procedure will help you to reducing the emotional and mental problems that you can come across whilst Forex trading.

1. Firstly you need a scientific technique that will help you in recognizing all your entrance and exit points.

2. Basically, you need a set of system that will make a baseline by which you can make all your result as well as compare to all your consequences. The traditional method of doing this is to create a Forex trading strategy.

3. You should design a method that will be able to identifying the new trading opportunity for you.

4. All of these tasks are generally performed by using one of several technical indicators that have been especially designed for this purpose. You can place extensive lists of these tools by with the suitable internet search.

5. Keep one thing in mind that nobody will give you an assurance for success on their own except they are completely integrated into the entire strategy.

6. One of the most important points that you need to consider is when you create your initial time-frame, select the quality that associated with the statistics deteriorates continuously as such the period shrinks. Therefore, you should maintain your primary trading strategies resting on the one hour time-frame and upwards.

General Forex

How To Make Forex Hedging Easy With The Hedge EA

In many businesses the traders use the sophisticated technique called hedging. Generally the stock brokers use to hedge their trades in another market, for example in the forex market, when they find the things going difficult. First you need to know what hedging really is. Then it will be easy to understand how the hedging expert advisor operates.

Hedging is a way to swap in to an alternative trading option in an effort to make profit or minimize losses when you are not profiting from your usual trading business. You certainly know that the financial markets normally fluctuate as it is unusual for them to continuously move in a single direction with rising or declining values. If they would continuously move in a single direction, trading would be very easy.

However, the general trends in a market do follow a direction with short phases of reversed trends included within an extended period of overall trend in one direction. These reversed trends are usually continued for very short intervals; however, sometimes they occur too frequently over an extended period. In that case, you can minimize the losses, if you open a trade by moving in to the direction opposite to your usual approach. As one trade looses the other brings profits, nullifying the effect of the loss.

You can be confused about the timing to open a hedging trade and the optimum moment to close it, if you do not hedge regularly. You can even forget it altogether. In the currency markets, hedging is popularly used to combat losses. Successful traders in the forex market are using this method regularly to limit their losses in the overly fluctuating forex market.

If you have a long experience in trading forex you must admit that forex market has been very fluctuating these days with the increase in its popularity over the last ten years. This has heightened the need for hedging.

The Hedge EA is a superbly designed Meta Trader 4 program that was created to make hedging stress-free. One can set the levels for hedging his bets and the hedge EA is designed to operate on its own by opening and closing hedging trade at the required levels. You can turn on or off this feature as you wish.

You need to be efficient in money management to be successful and most accomplished forex traders will admit that losses cannot be avoided. If you are able to minimize those losses, then you can turn short term failure to long term success.

You need not be very efficient in hedging while you have the Hedge EA. Everybody knows when a trade is going unfavourably for us. At such times of danger the Meta Trader 4 will help you to turn the danger in to a matter of minor difficulty. In a short while the trade comes back on its usual trail and the loss is minimized or the profit, maximized.

General Forex

Forex Broker Terms You Might Need to Know

When dealing with a Forex broker, you are introduced to a whole new trading jargon. Therefore, it seemed fitting to present to you a variety of Forex broker terms that you will need to know.

No Dealing Desk (NDD) Broker-This is a broker who does not have his own dealing desk. He instead outsources persons who would interact with the clients, providing them with price and liquidity information. These liquidity providers are the ones responsible for sending in all bids to the trading platform. The best bid is then presented to the client.

Forex ECN Broker-ECN stands for Electronics Communication Network. Therefore, an ECN broker is an Electronics Communication Network broker. All the trades are done in the name of this professional without the use of a dealing desk but rather via the use of a marketplace. This marketplace is flooded with market makers, banks, and traders who are making offers. This is a form of anonymous trading.

Market Maker-This is an individual that provides pricing and liquidity for currency pairs. This professional would then stand by waiting for the chance to buy or sell a currency at a specific price. A variety of strategies are used in order to provide traders with opportunities to make the most profit.

Agency-A professional establishment that provides intermediary services to both buyers and sellers is known as this. This outfit employs agents who make commissions off any gains made. Sometimes a small commission is charged regardless of how the financial transaction turns out.

STP-This is the acronym for Straight Through Processing. It is simply a term to indicate that an entire trading transaction is fully automated. There may be a person overseeing the automated transaction system. However, there is no intermediary taking care of your trade you just made. It is all done using web-based or downloadable software.

Margin-This is the amount of equity contributed by a trader. It is a percentage of the current market value of securities which are held in a special account.

PIP-This is the smallest unit of money that is used to accurately calculate Forex rates. This is a more precise determination of how much profit has been made or how much profit could be made.

Spread-Difference between the bid and ask price is referred to as this. This is another calculation of gain or loss as a transaction is made. It also is part of what is used to create statistical graphs and charts for a Forex broker to use as a guide.

Leverage-Market participants use this method of increasing potential gain of a Forex transaction made. It involves the use of various financial instruments (foreign currency in this case) or borrowed capital (usually money).

Lot-A pack of trading units that are sent to the market are often referred to as this. There are three different types-the micro (1,000 units), mini (10,000 units), and regular (100,000 units). This is done to help accommodate Forex broker accounts created by traders within varying budgets.

General Forex

Why People Find Trading The Forex Markets Full Time To Be Very Hard

Most people become acquainted with forex trading whilst they are still in full time employment. They may be looking to make some extra money, or they may be looking for a new career in a different industry or a job with more freedom. However it should be pointed out that there is a massive difference between part time forex trading and full time forex trading.

When you are trading the markets part time, either whilst you are working in your day to day job or in your spare time or days off, there is no pressure to make money. You will probably open an account with a few hundred dollars and start trying to make money with different trading systems, safe in the knowledge that you still have a decent wage coming in.

However when you are trading the markets full time, you rely on these profits in order to live because they need to cover your rent or mortgage payments, as well as all your expenses and day to day costs. If you have a few losing weeks, then you may well struggle to pay the bills.

This puts enormous pressure on you because you have to make money. So you may well find that it starts to affect your trading because you may have a decent trading system in place, but you keep on taking impulsive trades in order to hit your profit targets. Ideally you should stick to your system at all times even during the occasional losing run, but I fully understand how hard this can be when you need to make money every week in order to pay your bills and live your life.

It is also the case that because forex trading from home can be quite boring because you are sat watching your computer for hours on end, and there may be times when you day trade the markets just for a bit of excitement. However the trouble is that short term trading can be an absolute killer if you don’t have a top notch system in place with good money management rules in place, so this can make life difficult for you as well.

It should also be pointed out that there can be pressures put upon you from both your family and your friends. Outsiders often assume that you are making lots of money if you can afford to quit your job and trade the markets from home. So if you are making steady but unspectacular profits, it can be all too easy to start upping the stakes in order to bring in the big profits. Unfortunately this often leads to disaster.

When you add in the extra pressure of knowing that you may have to go and get a job again if you are not successful, it is easy to see why full time forex trading is so difficult. There are so many pressures and you will generally find that only a small group of people are still trading the currency markets full time several years after they first started.

General Forex

An Insight In To Forex EA

Forex EA stands for foreign exchange Advisor. Used on the Meta Trader software platform for trading purposes. A foreign Exchange expert advisor automates your entire trading system thus allowing you to make money without much effort. Since 2008, hundreds of this forex EA has flooded the market, however a number of them are just but bogus. This is not to say that there are no good ones, thus one needs to undertake due research before buying a forex EA.

Basically an EA is a set of rules programmed in to the Meta Trader platform for trading. This facilitates execution of the rules on an autopilot without involving the user. Owing the fact that they trade the forex 24/7, they are also known as trading robots. Other than running the EA on home computers, you can also run it on private virtual servers (VPS) alleviating the need to have your computer on throughout.

Forexforeign Expert AdvisorScalping Systems

They are very common. They take small profits ranging from 5-10 pips several times during the day. They are advertised as winning 90 % to 95 % of the time. However, the problem is in the high amount of stop losses to protectyour money. For every 10 pips in profit made, the risk involved is 100 pips. You can win 9 out of ten pips but end up being the overall loser.

Trend Forex EA

This system observes the overall course or trend of the forex markets jumping on to it after it has started. As opposed to the other systems like the Martingale or scalping, trend system does not trade on regular basis. To a large extent this system works a great deal. The problem being markets don’t trend. All they do mostly is that they keep on going back and forth. Meaning you can lose a lot of trades before you start gaining.

Martingale Forex EA Systems

Of all the forex EA, a martingale system is the most common. Based on the martingales system of betting whereby when you place a bet and lose you double the bet until the time when you win on your bet. Winning a bet means recouping on your losses and making profits.

Important Information

Though EA systems have been given a lot of hype marketing, many of them do not end up working at all times. This is because markets do change. One time they might be a boom, and then the next time things might work against you. Keeping in mind that Expert Advisorswork on set of rules and thus they are unable to adjust to the market changes.