Tag Archives: forex

Forex Trading Articles

Making Consistent Gains With Forex Trading

Trading Forex successfully is a not an easy endevour and if you approach it as an amateur you will join the 95% of new traders who lose and give up. In this article we’ll take a look at a variety of factors which are necessary to master the game of Forex trading.

1. Plan The Trade & Trade The Plan – If you want consistent results then you need to trade consistently. This sounds simple and obvious but because as humans we have emotions and emotional reactions it can be easy to get sidetracked. Most professional traders have a written trade plan and make notes each day to ensure that they follow the plan. In order to stay level-headed it’s important that you believe in your strategy, which generally means you have experience trading it and believe that you will gain consistently over the long run by following your plan.

2. Have Faith In Your Broker – A lot of Forex brokers are in the business to take your money and are not concerned with ethics. Take your time and do a lot of research on forums, blogs and chats to get an unbiased view of how the broker you are considering stacks up. Having the wrong broker can cost you your hard earned profits.

3. Be Very Careful Trading Around News – Look at the Forex Factory online calendar before getting into a trade. The news events noted with orange and red icons are major events and can substantially move the market. These news events can cause whipsaw and stop you out.

4. Simulated Results – Watch out for systems that show extraordinary results, especially “black box” indicator systems. You’ve probably seen systems like this that show a green dot when it’s time to buy and a red dot when it’s time to sell. When you look back on the charts they look amazing, what you don’t know is that often they “re-paint” which means that the wrong signals are deleted so you are not seeing the true performance history.

5. Leave Scalping To The Professionals – Scalping is when you go for small profit targets, usually anywhere from 1 to 20 pips. With most currency pairs you will need to give them a breathing room of at least 15 pips. If you are taking 5 pips profit and have a 15 pip stoploss, this means that one loss will wipe out 3 wins. You are now needing to win 75% or more of your trades to be profitable. When you take the spread that you pay to your broker into consideration the scenario gets much worse. With a 3 pips spread, to earn 5 pips you will need to have the trade go 8 pips in your favor and to lose you will only need the trade to go 12 pips against you.

6. Accept Your Losses – Another dangerous situation involves traders who don’t want to accept a loss. They will get into a trade with a “mental stop”, thinking that if it goes against them say 50 pips then they will take the loss – however when they are -50 pips they decide to give it more room and before they know it the trade has gone a great distance against them and their account is close to a margin call.

7. Risk Management Is Key – Trading involves risk, it is important that you set a comfortable risk level for each trade. Without risk management you may as well go to a casino and play roulette. Most professionals will not risk more then 2% of their trading account on any one trade. This way after an inevitable string of losses their account will not be devestated and they will be able to continue trading. Amateurs who play big and quickly lose half their account, now need to double their account just to get back to even – often this results in a downward spiral. Risk management is often the difference between an amateur and a professional and is crucial for making consistent gains.

Forex Trading Articles

Forex Trading System – Tapping Into The Investment Opportunity

There have been a lot of individuals that have become rather wealthy without putting a lot of effort on their part, all you need is to buy and sell the right item at the right time. However, many could be mislead by the recordings of history as they normally don’t feature the failures of several others who did not find the great success of those highlighted throughout history.

Investing is a risky environment where good decisions prove highly profitable and poor decisions could cost your financial future. Opportunities such as the Forex Trading System present a format where any individual, regardless of their financial standing can take advantage of investment options.

So as to understand the opportunities that this market offers, it is vital to obtain a grasp on what’s expected from you as the investor. The Forex Trading System relates to the trading of foreign currencies from across the globe. For the investor, the objective is to discover a currency that is undervalued and buy it before it rises in value.

When you are able to achieve this goal you would discover incredible financial return that promises to assist you in achieving your financial objectives. Of course, it isn’t recommended for an individual just starting to simply begin investing without receiving some form of educational support. In the investment market, the more you know, the greater possibility you have to succeed, and failure will usually result in a loss of your hard earned savings.

While there are several books offering stories of success as it refers to the Forex Trading System, this isn’t always the most efficient way for an individual to absorb information. To take full advantage of effective educational resources, it is best to seek the audio and video benefits associated with the use of Forex Trading Software. Through the use of software an individual can easily work from the comfort of their house and benefit from up to date information as it relates to currency exchange.

This resource will supply you with the vital tools required to succeed in this industry and help you in identifying the various patterns and opportunities which exist with a potential investment. The more you learn from these software applications, the greater your opportunity to discover success.

Additionally, when you utilize the best Forex Trading Software, you’ll be able to take advantage of possibilities beyond the educational benefits. With a high understanding of the market and the assist of the best software, an individual can design a program which aids them in placing this system of investing on autopilot. No person can be an active trader on a twenty-four hour basis and the autopilot tool provides you with the unique possibility of not missing out on potential investments.

General Forex

Forex Bulletproof Robot – Capable of Re-adjusting to The Changing Market Conditions.

Forex BulletProof has been engineered to preserve, secure and then increase your capital for years to come, no matter if the political or financial world situation changes…

Crisis proof. – the robot is capable of re-adjusting to the changing market conditions. Should the market suddenly become too volatile (and therefore, too risky to trade), the volatility filter will intervene and take the robot to an early exit. The bot also adjusts automatically to the conditions of a specific brokerage, being compatible with both the instant execution brokers and the market execution ones.

Low Initial Investment Required. – The current minimum to start trading with the robot on the EUR/USD pair is as low as $450. Only if the user wishes to trade on both EUR/USD and USD/JPY, will he/she need to have a minimum of $4,000 in the trading account. Yet most profits are generated on EUR/USD, so a minimum of $450 will be perfectly sufficient.

Important: If somebody tells you that you can trade a forex robot with $100 or even $50, he is full of B.S. because he’s after your hard-earned money. Of course, you CAN technically trade even with as low as 1 buck, but it will result in an instant margin call and put you out of business faster than you can hit the stop trading button. $450 here means that you can safely increase your capital and that all security filters have enough room to kick into action to preserve your money and your gains.

Easy setup. – Forex BulletProof is an easy to utilize “set and forget” robot. No complex lists of settings to be entered, no multitude of files to be placed into various folders, no need to watch the robot during its trading. Even completely inexperienced computer users can successfully set up this bot on their computer or VPS and have it trade for them!

No liquidity issues. – Forex BulletProof trades DURING the market hours and not between them, like many other Forex robots. This aspect ensures sufficient liquidity at all times, no matter what the situation on the market is and how many people are using the robot. The liquidity during the forex market hours totals in the trillions of dollars. Therefore, even if we had millions of people using the bot at the same time, it would not affect the currency market in any way (especially, if your broker is STP).

No margin calls! – The seldom drawbacks in the process of trading are minuscule and quickly recovered because the robot will NEVER produce a margin call. If things in the market get out of hand or a strong unexpected trend suddenly emerges, the subsequent trades in the robot’s trading cycle will re-hedge the initial ones and the cycle will be closed immediately.

Careful & and safe trading environment. – The robot’s trading hours and days are carefully selected based on the time zone differences between the closing and opening times of stock exchanges in different parts of the world.

Forex Trading Articles

Some Best Forex Trading Tips

Forex trading is the best way to earn money through your daily transactions, therefore you have to spend more time in learning, it is all about committing yourself before trading with real cash. Let’s discuss some of the tips which help in avoiding typical pitfalls and then create much more money in your personal account.

Knowledge of Forex trading:

If you want to trade to trade in currency pair then you need to be knowledgeable enough to understand the basics of market. You need to be aware of the market situation, therefore always read the updated news and trend.

Small margins:

Small margin trading is one that has the leading advantages in forex trading, however it allows you to trade quantity far better than you total deposits. It can also be very dangerous for newbie traders as it can call to the greed factor that will destroy many of the forex traders. The best way by which you can raise your leverage in line is your trading experience and success.

Trade on current news:

Most of the actually big market progress occurs around news time. If the trading volume is far above the ground and the progress are significant; this means that there is no such better time for trade and you can judge all this when news is released. It happens at the time when the big players regulate their positions and the result is that prices are seriously changed and a serious currency flow.

Confidence:

Be confident when you are taking some decision. Confidence comes from knowledge, if you sufficient knowledge of your trading then automatically it brings you a confidence. If you are losing money earlier then your trading career, then it’s very hard to regain again.

General Forex

Forex Trading Basics

In our today’s global market it has become increasingly important to get adequate investment knowledge as this can adequately reduce risk exposure if well guided. The forex market has remained one of the world’s biggest financial markets with its daily volume well over US$3 trillion. It is expected that every would be investors get themselves acquainted with the forex trading basics. Unlike other financial markets, the FX market has no physical location or central exchange. When investors (banks, corporations and private investors) trade currencies, it’s done over-the-counter.

The forex market initially was open to larger entities that traded for commercial and investment reasons via banks. We have participation from small investors due to the emergence of trading platforms who now offer online services powered by technological leap in the IT sector. Some of the forex trading basics highlighted in this article would help you make informed decisions especially if you that individual who is indecisive about investing here or not.

The forex market’s products are priced currency pairs; hence all trades eventually currency rounds up into the buying and selling of currencies. As a rule, one currency is exchanged and speculated to have a rate change. If you buy a currency and the value appreciates, it is expected that you sell to lock-in on profits. We generally refer to positions as “open positions”, when a buy/sell order that has been entered is yet to be closed (via sell/buy). The currency pairs are aligned to have a base currency or the 1st currency in the pair and the counter, quote or second currency in the pair. This also means that a quoted pair is expressed as a unit of 1 of the first currency in the pair against the other currency in the pair.

When price is quoted by the forex broker, they include a “bid” and “ask”. The bid is the price the market marker has agreed to buy (and the client can sell) the base currency in exchange for the quote currency. The ask is the price the market maker is willing to sell (and the client can buy) the base currency in exchange for the quote currency. The spread is the difference between bid and ask price and is usually taken as commission by the market maker. This is how the market makers make their monies off commissions. This might look very minute but if you cumulatively look at the number of order taken by clients every day, I bet you’ll have a rethink.

Forex trading basics entails that you also know the best way to approach analyzing the market. There are two ways to go about this; you can either analyze the market fundamentally or technically. The technical analysis explains price movements, while the fundamental analyses views the factors affecting price movements. The best approach has always remained a good mix of both.

When trading forex discipline is key to success and having this is key.

  • Formulate a good trading strategy and stick to it.

  • Develop an effective money management strategy and abide by it.

If you discipline can take you to this pint, then you are good to go. Forex would put a smile on your face if you stay focused on these trading basics.