Intraday bias in USD/JPY remains mildly on the downside with 89.14 minor resistance intact. Current fall from 92.31 should extend further towards 88.00 support first. Break there will confirm medium term down trend resumption for 87.12 low next. On the upside, above 89.14 minor resistance will turn intraday bias neutral…
USD/CHF Mid-Day Outlook
USD/CHF’s fall from 1.0222 extends further to as low as 1.0071 in early US session and at this point, intraday bias remains mildly on the downside for 1.0032/34 support. As noted before, the corrective structure of the rise from 1.0034 to 1.0222 argues that USD/CHF’s down trend is still in…
Forex Concepts that Forex traders must Have!
Here’s an article that’s an introduction to 3 basic concepts in forex trading: buying/selling, pips and volume:
As you enter the world of Forex you will find yourself learning and using many new concepts that you may not have used or heard before.
Three of this important concepts that you must understand are what “Pips” are, What “Volume” is and what you do when “Buying” and “Selling Short”. They may look more like four concepts but Buying and Selling are like the two faces on the same coin so we can consider them as a single concept.
Lets first introduce what Pips are. Maybe you have heard or read already how many pips a day you can make using some trading system. In short, currency pairs prices will go out to 4 significant digits. For example; if one currency pair is trading for 1.3451 then an increase to 1.3452 would be a “one-pip” increase in the price of this particular currency. This is an increase of one hundredth of a percent of the value of the currency pair you are trading. And depending the type of account you have, regular or mini, each pip will have a value of $10 or $1. So if you make 10 pips a day with a regular account you would have made $100 and with a mini-account $10.
Now we can talk about the Volume; trading Volume is a quantity that tells traders how much money is being traded at one particular moment. And the forex market is known by its high volume of trading during most of the time markets are open. Some times there can be spikes in the volume during some type of news breaks and during the time New York stock exchange is open. The volume of transactions in Forex, even in a slow day, will always be much higher than the volume traded in other large exchanges at their full capacity.
Now maybe the most obvious of the concepts. Buying refers to the acquisition of a particular currency pair to open a trade. Selling short refers to the selling of a particular currency to open a trade. When you Buy, you are expecting the price of the currency pair to increase with time, i.e., you buy cheap to sell high. In the case of Selling short, it looks a bit more complicated. Here the way to make money is to initially sell a currency pair that you think will lose value in a given period of time and then, once it happened, you will buy it back at the new price but now you can sell it at the previous greater price the currency had when you opened the trade, so you earn the difference in prices. I know it seems kind of tricky, but once you are in front of your trading station it will look much simpler.
Understand well these three concepts and you will start with solid steps you trading career.
The things you must avoid in Forex
Toby gives an account of a powerful factor behind currency trading that if used wisely is worthwhile, but if misused, can cause people to lose their trading accounts: leverage. Here’s the article:
The biggest enemy to most forex traders is not the market or their trading system but the use of leverage. When using too much of it, most of times it will take your account serious down, even with one single trade.
Last week, a new forex trader showed us his account statement and asked what he was doing wrong.
After taking a look into his account statement, we did notice the following:
Start balance: $25000
End balance: $2300
Numbers of trades: 7
Lies, (Darn) Lies and Government Statistics
I think the actual quote goes something like “Lies, Damned Lies, and Statistics”; however, my personal feeling is that government statistics are absolutely the worst. Today, I want to talk about some of the government’s economic statistics they use to tell us how the country is doing.