Tag Archives: forex

Forex Trading Articles

3 Best Forex Trading Strategies To Help You Make More Money Trading Currencies

Forex trading is without a doubt one of the best and fastest ways to make money online, if you follow a winning strategy. You can not become successful in trading foreign currencies by making decisions blindly. Forex is a very risky business. If you want to profit from Forex trading, you need to follow a strategy that will maximize your earnings, while minimizing your risks. Here are 3 such a strategy that have been around for a long time, and have proven to be the winning strategies when it comes to Forex trading.

Leverage Strategy
One of the most successful and well-know Forex trading strategies Forex trading is leverage. A strategy based on leverage, allows you to make hundred or even thousand times the amount of money you have in your Forex account for trading. It’s a great strategy if you can master it. There are many success stories from Forex traders who have used the leverage strategy to make record breaking profits. But before you start applying this strategy, you will need to learn as much as you can about Forex market, and what and how effects the prices to rise and fall.

Stop-loss order Forex Trading Strategy
Stop-loss order is another great strategy for Forex trading. Stop-loss order strategy works simply by identifying a point where you will not trade. Meaning it will identify this point before you begin the trading. Be careful when using this strategy. Make sure you are able to analyze trading signals, and avoid mistakes in prediction. Making a mistake in predicting Forex market, no matter how small, could cost you dearly. So, make decisions wisely.

Automated Forex Trading System
Automated Forex trading is the favorite Forex trading system of many successful traders. It makes trading Forex a whole a lot easier, by automatically determining when to enter a trad, or when to exit one. Of course, the price and the point where the program would enter or exit a trade is predetermined. Automated Forex trading has its own risks as well, but the rewards are far greater that the risks. There are many great automated Forex trading system for a reasonable price, that will make trading in Forex market joyful. And if you use the right automated Forex trading system, you can make unbelievable profits. There are many software out there that can automated your tradings for you, but one of the newer ones that have generated quite a buzz recently is Forex Neutrino. It’s a little costly(about $100), but if you are a serious investor, its worth it

These Forex trading strategies can give you much better trade opportunities in the Forex market. But remember, no matter what system or strategy you use, there is no guaranty for succeeding by 100%. You need to keep in mind that no strategy alone is going to give you the perfect trading system. These strategies are here to help you maximize your success rate while minimizing your risks. Testing and constantly adapting your strategies for the better, will ensure your success in making money with Forex trading.

Market Analysis

Forex Live Chart – What You Ought to Know About Charts

Forex live chart is a necessity if you are planning to do your own market analysis. ‘Live’ here means the service that provide it will use current actual market data to create the chart. Basically, it is a very useful information tool to have even if you don’t do your own analysis.

First of all, you have to pick the currency pair that you want to analyze; it usually comes in the form of a drop down menu. Once you get the one that you want, select the chart type, it typically is available in four forms: Line, Bar, Candlestick, and Table. If you are a beginner, I suggest to begin with a Bar type. Once you select the type, choose a time frame such as one minute, five minutes, daily, weekly, etc.

In a bar chart, every vertical bar which you see signifies a time frame. The top of the bar is the highest price and the bottom of the bar is the lowest price during that particular time frame. For each vertical bar, there are two horizontal bars, one to the left and the other to the right. The left bar represent the opening price and the right bar represent the closing price for that time frame. Note: Utilize the zoom feature to see it in detail.

If you are going to use forex live chart, you should at least know these things:

Understanding Support and Resistance

The market volatility can bring it anywhere and no one can predict it 100%. But based on historical data, there are some condition where the price doesn’t exceed or below a certain price for a period of time.

Instance:

-From July to December, the EUR/USD prices never go beyond 1.645, that means 1.645 is the resistance for EUR/USD during that time period.

– From January to May, the USD/JPY prices never fall under 90.070, that mean 90.70 is the support for USD/JPY during that period of time.

Entry and exit point can be decided based on these support and resistance data. An orthodox approach is buy at support and sell at resistance. There is also more advanced strategy such as buying at resistance breakout and sell at higher price; it is all depend on the currency, circumstances, and your trading system.

Note: A time when the price has moved passed support or resistance line is called breakout.

Indicators

A good chart software also allows you to add various indicators. Indicator is a mathematical calculation based on prices which you can use to help you come up with decision. For instance: MVA indicator can present you the average price for a particular period, EMA show you the weighted price calculation for a certain period, etc.

Forex live chart can be used in various other ways to support a trader and understanding the basic function is a good start for your trader career.

General Forex

Best Forex Trading Tips For Traders

As the Forex global currency trading system has the highest volatility of any investment market today, it’s absolutely vital that you get access to as many Forex global trading tips to fast track your Forex education and to lock in faster Forex profits. This article will reveal free Forex global trading tips for the volatile Forex currency trading market.

Begin With a Demo Account – It’s hard to get an idea of what the forex currency exchange is really like without having ever traded in it. You can read as many informative articles or guides on it, but ultimately you need that real world experience to best get a quick handle on it. Demo trading is offered for free to all new traders and enables you to trade under real market conditions but without risking any real money of yours.

If you want to learn currency trading exchange the right way, you need to understand that you need a trading edge. A trading edge is something you have and will allow you to make FX profits, when 95% of traders lose.

You need to know, be able to define it, have confidence in it and be able to apply it with discipline.

To help you monitor the market activities, especially if you do not want to sit in front of your computer all day, you might consider using an automatic robot system. These robot systems are what we call Forex trading robots. Most of these systems are designed to monitor the market conditions and report on them. The robot systems have been developed and designed by expert currency traders

The only guaranteed tip for success in the foreign currency exchange market is to stick to trends. Whereas studying financial backgrounds of a country, analyzing governmental, population, technology, and other factors of a country can give you some idea of where a currency will go next can help, this is all but impossible to do and at the end of the day it’s still guesswork.

Trading on different currency pairs or at different entry points on the same pair is a good strategy. This way, you are not putting all of your odds on one trade. Try to find the trend in longer period charts first. Look at the weekly chart and see which direction a particular currency pair is trending. Once you find that, move to the 1 hour chart. If it’s trending in the same direction on the 1 hour chart, watch for your entry point to make a trade.

Obtain a Software Trading Product that you can Adjust to your Personal Investment Style Every one has their own style and different nature to take the risk while trading. So, your software should suit your style and approach which makes you feel better. The top rated products can be pre-program into the system by using some variables to make sure that they not only work as their default design but also suit your style of trading to get more profits.

Forex Trading Articles

Thinking of Forex Trading

If you are looking for a new way to break into the market with trading to make money you may want to consider online forex trading. Once you start your research you are going to find that it can be called a few different things including foreign exchange market or currency market. They all revert back to the same thing which is trading one form of currency for another. This is one of the largest markets in the world to do trading so looking for a forex broker may be a worthy investment in the beginning.

Of course you are going to run across products that tell you that you can set it and forget it and still make money. This is possible but you need to be careful as some of these products are scams or have not been out for very long to be able to have any credibility. When you are looking at online forex trading to become a currency trader make sure that you do your research and find the company that is going to represent you in every way possible and is going to look out for your best interest.

The rate of exchange can change at the drop of a hat so this is one of the reasons why it is so important to keep a hawk’s eye on the market. If you do not, it is possible that you could lose your shirt without even knowing it until it is too late. It is also important that you know the prices of the units of currency as well so that you are trading effectively. This is where having the forex broker you can find is going to be able to help you with all of the financial decisions that you are going to make.

The online forex trading market is open twenty four hours a day seven days a week. This is a window that never closes and it is considered as OTC or over the counter. You never have to worry about not being able to trade because the trades are going on even when you are sleeping. So if you wake up in the middle of the night and decide that you want to jump on the computer and see if you can make a little money than know that the window is going to be open for business.

There are many different things that you are going to need to learn such as PIPs so you will know how to trade and be able to make money. You are going to find that there is tons of information available on the internet so that you will be able to get started and make your first step into forex trading a positive one and not one that will chase you away forever. Take notes so that you can place your trades correctly each time you are on the scale. Yes, you may lose some money on occasion but you are going to get a lot as well.

Forex Trading Articles

Forex Trading Using The Trend

To succeed at forex trading, you must learn to identify the forex trend and trade with it. Forex trends are important to every forex trader who needs to be well informed of where the currency prices are moving as they are very volatile. The currency futures market is very liquid and it is anybody’s guess where it is going with the many factors impacting its journey.

Forex trends

Forex trends indicate the movement of currency prices in the future. When the preferred currency pair movement is upwards, that would be an indication to buy that currency pair to gain a profit. When the preferred currency pair movement is downwards, you should sell it off to avoid losses. A currency pair trend may go sideways, which mean, you can wait for a change in trend; but you can choose to buy or sell even then depending on your financial need. The general rule of thumb is to flow with the trend; not fight it. You will experience more losses if you do.

Forex trends should be identified over each piece of time frame and align them to your best analysis whether they are going up, down or sideways. There will always be a new low or new high with currency trends. There are various types of trends in forex trading: short-term, intermediate and long-term.

Long-term trend

A long-term forex trend operates on fundamental factors such as interest rates and its impact on a particular currency. Long-term trends are also known as major trends; they dominate a particular currency pair over a long period.

Intermediate trend

Intermediate trends on the other hand are known as minor trends. These respond better than long-term trends as a shorter time frame is covered. Although these are also impacted by fundamental factors, interest rates are not as impactful on them as long-term trends. Intermediate trends may not tell the whole story; hence, it is advisable to sit it out a little longer to see how it moves.

Short-term trend

Consider the short-term trend to compare its movement in relation to the intermediate and long-term trends.

Short-term trends are also known as micro trends. These are the most responsive among the three trends as the shortest timeframe is covered. Short-term trends are very volatile; any news of the day will impact them easily. Hence, they change direction very quickly. There are many highs and lows over time. It is possible for the all the trends to be moving in different directions for any currency pair.