Category Archives: General Forex

General Forex

Some Important Forex Trading Tips For Beginners

Thousands of online traders and investors trade the Forex market every day, and earn their living through it. If you are also aspiring to build wealth and take it up seriously for long term gains, here is a report that has simple essential tips on Forex trading.

Always Trade Pairs, Not Currencies – Meaning, try and gather in-depth knowledge and insight about both the currencies before trading. Success or failure in forex trading will largely depend upon being right about both the currencies. Only when you know how one impacts the other will you be taking the right decisions and make profits.

Remember Knowledge is Power – If you are starting out and are serious about pursuing a career in Forex trading online, it is important that you understand the basics of the market. It means keeping abreast of and a close watch on news and happenings in various economies.

Steer Clear of Un-ambitious trading & Over-cautious Trading – Many new traders will place very tight orders and take very small profits. This is not a sustainable approach in the long run. Likewise a trader who places tight stop losses with a retail forex broker is also heading for a doom. What I would recommend is that you have to give your position a fair chance to demonstrate its ability to produce.

Independence – If you are new to forex, you will either decide to trade your own money or to have a broker trade it for you. So far, so good. But your risk of losing increases exponentially if you either of these two things:

Interfere with what your broker is doing on your behalf (as his strategy might require a long gestation period);

Seek advice from too many sources – multiple input will only result in multiple losses. Take a position, ride with it and then analyze the outcome – by yourself, for yourself.

Lack of a Proper Strategy – A well laid out strategy is your map for how you plan to trade forex and make money with it. The strategy you have developed details the approach covering facets like, which pair of currencies you are going to trade, how you plan to manage your risk and so on. Without a proper strategy, you may be one of the 90% of new traders who lose their money and casually blame forex for it.

Likewise avoid greed, trying to make too much money too fast, don’t trade too short, and avoid trading during non-peak hours. Don’t let over-confidence or emotional temperament get better off you. And I cannot emphasize the importance of knowledge enough. Always be well equipped with knowledge and fine tune your technical analysis skills.

General Forex

Benefits of Using Android Forex in Day Trading

The desire of every trader is to get the most from any trading activity. This is especially so when it comes to Forex Trading. This has been known to be the most favorable method that people can use to make money with minimal expenses. The best things about the option are that it is developing and more favorable Forex options are being availed. The introduction of the Android Forex changed the world significantly. It is no longer demanding for individuals to spend hours glued to their blinking computer screens. The use of a cell phone is more than enough. There are many benefits that one reaps from these digital options.

To start with, one is able to trade at any time of day. This is one of the benefits that make Forex Trading using Android applications a considerable option. The phone is more portable and takes less time for one to access his online account. As a result, better performance is achieved. Users of Android Forex are able to benefit from their day trading in a reliable way. All that is needed is network coverage and one is able to transact at any time of day.

In addition to time convenience, Android Forex makes it possible for individuals to transact at any part of the world. This is another reason why people opt for these digital options over the rest. The cell phone is a necessity in the present day. It is close to impossible for a person to leave the house without having his phone. This means that one can trade at any time of day and from any part of the world. In addition to receiving calls, one is able to engage in Forex trading. This is done by signing in to a personal Forex trading account and carry out the necessary tasks to achieve the desired results.

Android Forex has also been known to help people get real-time updates in binary options. This is an added advantage for any enthusiastic trader. New changes are introduced almost on a daily basis. An investor should therefore be up-to-date in order to make more informed decisions that help in achieving the desired goals in trading. In the end, one is able to achieve better results from binary options trading. One gets direct updates to the cell phone from any part of the world. All that is required is a dependable application for day trading.

Lastly, the Android Forex applications are fully packed to help investors achieve the most from their trading. This is another reason why people opt for the application. It is fully packed with reliable features which help get reliable tips and tricks in Forex trading as well as reliable tools which help in tracking market performance. In the end, the investor using the option is able to get reliable tips on how to trade. It is a considerable option for both the novice and experts in online trading. However, it is important that one takes time before choosing the right application to use in day trading.

General Forex

Trendline Trader EA For Part Time Traders Become Fully Committed Forex Traders

Trendline trader makes trendlines you draw on the chart alot more useful than just a visual tool by itself. Trendlines are not indicators but simple lines you draw up on your currency chart to help with forex technical analysis. When you draw trend lines, you are providing yourself a visual picture of where is the current market and where will it be heading next. And this serves as a mental note assuring yourself that you are aware of where the trend is coming from and that you are also willing to follow it where ever it chooses to go next.

What is Trendline Trader

“Trendline Trader” as the name connotes speaks for itself. It helps a trader to identity possible pullbacks on both resistance and support levels, for the purpose of making sound trading decisions. Many technical chart patterns require that trade entry and exit be executed on these specially drawn trendlines. There are two ways at which the forex trader can choose to trade with these trendlines.

The first way is trading via breakout strategy with technical chart patterns. When price breaks through the trendline, a trade intended on the breakout direction can then be entered according to the trader’s trading system. This particular style of breakout trading can easily be found in many trading systems that trade flags, pennants, head and shoulder patterns, symmetrical triangles, descending or ascending triangles or simply a channel or envelope. Break-through of trendline is an important entry signal for many traders trading technical chart patterns.

The second way of trading with these specially drawn trendlines is trading on reject. When price touches or breaks through the trendline, trade entry will be entered in anticipation that price will meet great resistance or support and will revert back to its ranging levels. Thereby, the word trading on reject anticipates that price will revert to its ranging mode and you are fading a breakout. This style of trading is usually called fading the breakout. Or if it’s in the form of trend trading, as price approached support or resistance level, you are anticipating that it will bounce off the trendline like a ball bounces off the ground and ceiling trading in a channel.

Trendline Trader is Both Useful in Breakout and Ranging Markets

Trading on breakout and on reject can now be made automated in mt4. You can find most auto trendline trader on the forex community. And you can give the free ones a try as they contain the most basic functions of an auto trendline trader EA. Now, a trade entry or exit can be pre-specified by the forex trader simply by attaching the trendline trader to the respective currency chart and draw lines manually on the chart. Next, simply add in a buy or sell on the trendline description box to instruct the trendline trader EA to perform trade execution to your liking.

Trendline Trader Summary

Forex traders can tap on the auto trendline trader software to execute forex trades while they do other work. Forex trading is not an easy work for most part-time traders in the past. They need to monitor the market for potential signals and then manage the ongoing trade until it is finally exited. Most of these tasks are no longer relevant if the forex trader utilize trendline trader as their trading tool.

General Forex

The Positive Qualities Of Forex Trading

Forex trading involves the exchange or trade of currencies from various countries. The currencies are traded against one another. To give you a better understanding of the principles of forex trading a perfect example would be to take the Euro which is the currency of Europe and then trade it against the US dollar which is the currency of the United States. Forex trading is done by buying the Euro while at the same time, selling the US dollar.

In forex trading, a trader selects a pair of currencies or a currency pair that is expected to change in value. When that change in value occurs, a trade is placed accordingly. For example, a trader buys 2,000 Euros at the cost of 2,400 US dollars. As time goes by due to many factors affecting the global market, the value of the Euro continues to rise above the value of the US dollar. At this time the value of the 2,000 Euro that the trader has procured earlier will amount to more than the 2,400 US dollars that he bought it for. At this point if the trader chooses to end the trade then he is set to earn money from his forex trading. Forex trading is done through a market maker or a broker. A trader can place an order over the internet and them the broker will relay this order to fill your position on the trade.

Forex trading is a 24-hour market all over the world. This gives the trader more opportunities to engage in great trading deals at any time of the day or night. Forex trading also offers high liquidity which means that an asset can be converted into cash in no time at all without any deductions on the price. Large amounts of money can be moved in and out of foreign currencies with very little change on the price in forex trading.

Forex trading has a very minimal transaction cost. The cost of the transaction in forex trading is usually incorporated into the price. This is called the spread which is the variation between the selling and buying price of a currency.

Forex trading gives traders the opportunity to trade using only leverage. Leverage is the capacity to trade an amount of money in the market that is actually higher than what is in the account of the trader. A 50 to 1 leverage means that a trader can trade $50 for every 1 dollar that is in his account. Leverage means that forex trading can be done even at a minimal capital.

General Forex

Forex Strategy Trading Tips And Hints How to Make Use Of Forex News Releases to Trade The Forex Mar

Fundamental analysis is the research of how the worldwide events and news influence the currency markets.

In this edition of my Forex strategy trading Hints I will be teaching you how I you can utilize fundamental indicators to help you take better trading decisions.

The usage of fundamental analysis in the currency market is done by using economic indicators. These fundamental indicators provide you with economical conditions of a country that can assist you to evaluate the robustness of a country’s currency.

Economic indicators are available throughout quite a few bodies of a country’s government and private companies. This information is researched by foreign exchange traders to calculate the direction of the currency exchange market. Currency economic indicators are released at defined times and dates, and are followed by most serious foreign currency traders.

Given that so many investors are looking at them, foreign exchange economic indicators have an enormous impact on the exchange rates of the currencies that are traded in the foreign exchange market.

A large amount of Forex traders do not use fundamental analysis because economic indicators seem difficult to them.

Nevertheless, using fundamental analysis and following economic indicators can be a whole lot easier when you follow easy guides that will keep you up to date with the Forex economic indicators with no trouble.

How to Start Using Forex Economic Indicators

It is important to keep a log of all the important Forex economic indicators’ release dates. Keep a log or subscribe to one of the economic journal services that are available on the internet.

Aside from that, you should employ and follow economic indicators that are relevant to the currencies you trade. Each currency belongs to a different country and for that reason the economic indicators will be different for each currency.

You will in addition need to learn what each indicator means and how it will impact a currency’s strength.

The primary theory behind Forex fundamental analysis is that if a country’s economy is doing good its currency will go up in value and if the economy is doing bad then their currency will devalue and its price will go down.

The Most Significant Fundamental Forex Indicators

As I said before each currency will have unique economic indicators and the date and time when they are released are different. It is now time to talk about the most prominent fundamental indicators that every single foreign currency exchange trader should pay attention to.

The Treasury International Capital: The treasury international capital or TIC measures the flow of treasury and agency securities. The simple principle behind this indicator is that a increased reading is positive (or bullish) for the USD, while a low reading is negative (or bearish).

Durable goods: This is released monthly by the Bureau of Census and reflects new orders placed with domestic manufacturers for delivery in a near future. The basic principle behind this indicator is that a high reading is positive (or bullish) for the USD, while a low reading is negative or bearish.

Consumer Price Index (CPI) Ex Food & Energy: This indicator measures and analysis the weighted average of prices of consumer goods and services such as transportation, food, and medical care. This indicator is used to measure the level of inflation of a country. The basic principle behind this indicator is that a higher than average reading is seen as positive (or bullish) for the USD, while a a lower reading is seen as negative (or Bearish).

There are several other Economic indicators that can be used to assess the FX Market and you should spend some time examining the ones that affect the currency pairs you trade. I hope I was able to offer you with helpful information in this component of my Forex strategy trading helpful hints.