Tag Archives: forex

Forex Trading Articles

Forex Trading – Tracing Forex Market Trends

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Knowing how to recognize support and resistance levels is one of the important things to learn in successful forex options trading and currency trading. You will learn this at the 2nd Grade level at the School of Pipsology. When you plot the market performance, you will see a pattern of ups and downs. As the market moves up, the highest point it reaches before it reverses is called the resistance. The point at which a downward line curves back up, on the other hand, is called the support. These two points are used in tracing trend lines. You can draw trend lines in valleys and peaks as well as channels in ascending and descending patterns.

Learning about how to identify forex support and resistance levels, and trace trends and channels is one of the fundamental things you should have in your forex options trading and currency trading tool box. These will help you ease into the next grade levels after you complete 2nd Grade. As you progress towards graduating from the Elementary School levels, you will be able to add more knowledge to your tool box. Your forex options trading and currency trading learning is segmented and programmed in such a way that it will be easier for you to go through one topic after the next without being overloaded with forex information that is not entirely understandable.

Forex trading education has never been this easy. Using a forex trading curriculum that is specifically designed for novices is a good way to learn all there is about the forex market, master the skills in making forex trading decisions, and developing abilities to build a successful and profitable forex trading business.

Forex Trading Articles

Forex Trading – Developing the Right Mindset With Forex Education

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In the field of Forex trading, you earn your profit when you have the right mindset that you can achieve with corresponding Forex education. You can always learn how to trade the Forex and get all the necessary education but if you don’t develop the right mindset in applying what you have learned; your efforts may just turn futile.

You need to understand that Forex trading involves a lot of risk; therefore if you are the type of person who doesn’t want to take risk, Forex trading may not be for you. On the other hand, if you are a risk-taker you still need to learn how to be responsible for your own actions – with or without risks.

Forex education is not just about learning all the right tools necessary to successfully trade in the market; it is also about applying these tools to cut the risks or turn the risks on your favor to earn your profit.
You also need to have a lot of discipline to use the right tools confidently. Discipline will come from fully understanding every detail of the trade that in turn will come from the right Forex education.

You will not be an overnight success, but success at Forex trading will be within your reach when you have the right attitude in accepting that whatever risk you have to face, you are responsible for your own action. Learn as much as you can, confidently and responsibly apply what you have learned from the right Forex education, and you will be on your way to succeed at Forex trading.

Forex Trading Articles

Forex Trading – How to Gain From Forex Trade News

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You can use trading news as an important tool to gain profit in the Forex market. Forex trading news, mostly economic news, tells you about the current economic condition of a country as well as the economic policies that shape their condition. Learning how to use the Forex trade news is vital to earn your profits from the trade.

Here is how to use Forex news to gain profit:

• Identify the market sentiment. Find out how the news supports the existing sentiment, which can either be very bearish or very bullish. If the Forex market does not respond the way it is expected to, you can start your search for a divergent trade and use your charts to time your entry.

• Consider the reality that when Forex trade news is at its most bearish, very bearish markets rally and when the news is at its most bullish, very bullish markets collapse. You can do two things with this in mind: (1) use your Forex charts to search for turning points; and (2) find out if the news does not press on the market the way it is supposed to. When you are able to do so, you can spot divergence trading with huge profits in the offing.

Naturally, there are risks involved when you use the news in your Forex trades. That is why solely “trading the news” is something that you should be doing at your own risk. But if you can use the news just as mentioned above, then you’re in for a successful trading profit.

Forex Trading Articles

Forex Trading Must Knows

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Educating yourself is the best preparation you can do to build a successful forex options trading and currency trading business. Using the foundation of a good forex education you will be able to concentrate and focus on the task of planning and executing forex options trading and currency trading decisions. Learning about concepts and theories in forex options trading and currency trading is only the beginning. The real challenge comes with actually getting out into the market and doing some forex trading yourself. Remember these things when you start making your forex trades:

1. There are no guarantees that a particular forex trade will result in profits. You can use trends and indicators to predict how the market will move. But, there are still risks of the market moving in an opposite direction to what you have predicted or not move at all.

2. Develop the ability to time the market to maximize your profits. This is a tricky matter that takes years to practice before a successful forex trader can risk getting as close to resistance levels as possible before executing orders to buy and sell.

3. Have some sense to shrug off losses in forex trading. If you have a plan, this will not be hard to do. You will most likely have a fall-back position to rely on to counteract the effects of your losses.

4. Be smart to plan your trades both for the short-term and the long-term. Do not only look at one scenario. Prepare for all possibilities and be ready to recover from your bad trades.

5. Control your emotions. Do not make the mistake of letting your emotions influence the kind of forex trading decisions you make. You have a plan, stick to it. Letting your emotions run wild will only succeed in making you miss opportunities for profit.

Forex Trading Articles

Best Forex Trading Indicators – a Combination of Indicators for Bigger Profits!

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The group of indicators outlined here, are the best Forex trading indicators in my view and any trader novice or pro should know about them. There all simple to learn, visual indicators which are very effective…

No indicator is perfect but if you learn how to combine the best and practice, you can build a robust Forex trading strategy for success.

Here are your best Forex trading indicators and how you can use them for bigger Forex profits.

The Bollinger Band

Developed by John Bollinger this indicator has the use of showing the volatility of a currency from the norm. You can soon spot overbought oversold levels, as volatility rises and trade into them. The middle band is a simple moving average and you can buy and sell back to it, in strongly trending markets as this area indicates value and this simple strategy is one any trader should know.

The Bollinger band maybe one of the best Forex trading indicators – but you must confirm moves and for this you need some momentum indicators to time your trading signals. Let’s look at some.

Relative Strength Index RSI

Developed by trading legend Wells Wilder this is a great indicator you can use to gauge the strength of a trend. If the RSI is in favor of the trend, you stay with it, when it diverges from the trend, then its time to either bank profits or enter contrary trades.

Average Directional Movement ADX

Another indicator from Wells Wilder and like the RSI the ADX attempts to determine if the market is in a trend or not. The ADX line is a great momentum indicator and will help you trade and stay with the strongest trends. It also acts as a great indicator in terms of warning when a strong trend may change.

A great profit taking signal is when the ADX rises above 40 and turns now. When this happens you can bank profits or look for contrary trades.

The Stochastic

Developed by George Lane this is probably the best indicator to help you get better market timing and execute trading signals.

Stochastic crossovers can confirm any move, within a trend and also be used to take contrary trades. In contrary trades, a stochastic cross with bullish or bearish divergence (from over bought or oversold levels) against the prevailing trend is very effective.

Moving Averages

Price spikes don’t last for long and prices will return to a longer term average. In existing trends this tends to be around the 20 day average and in longer term trends, you can trail a stop back behind the 40 day moving average.

This is a simple tool and every trader should use them for setting up entry and exit points.

They Work and Will Continue to Work

The above are the only indicators I use and I have been using them for 25 years.

There still as effective today as they ever were. These best Forex trading indicators if used correctly can improve profits and decrease risk and that’s what all Forex traders need in their trading.