Tag Archives: Strategies

Forex Trading Articles

Forex Trading Strategies – How To Use Different Strategies To Earn Profits

Every trader that has learnt or tried forex trading for a while will find a bunch of forex trading strategies that can be used. Every strategy has different pros and cons, need different circumstance and data, and will works well in certain currency pair.

Fundamentally, forex trading strategies can be divided into 2 major:

1. Technical analysis

This strategy is utilizing data as its main information source, especially charts to predict the future market movement. You will find various strategies to read this data such as candlestick charting or Elliot wave, yet fundamentally they look for patterns in the chart for a certain timeframe and looking for relationships between several indicators like price and volume.

This strategy is favored by most traders and they utilize it in regular basis to determine the very best opportunity on the market presently. Usually, every trader possesses their own way to interpret the data by using different variables that designed specifically for a particular market he is in. That’s why even when everybody gets the same accurate data, only the one with the right method can convert it into profits.

2. Fundamental analysis

This strategy relies on various economy factors such as overall state of economy, interest rates, production, earnings, and management. For example: several news such as Non Farm Payroll or Wholesale Inventories can affect the market significantly. If you can analyze the market movement before the news out, you can secure your position and wait for the profit.

On some occasions, there are important meeting holds by certain persons who have high influence in the state of economy. For instance, a meeting about deciding the new interest rate or inflation will present great impact in the currency values. Typically, it will be too late to enter the market when the result has released, so you need to utilize the current data to analyze and speculate the result ahead.

Fundamental analysis use is not limited to short term trading, it can also applied on long term forex trading strategies. This is somewhat complex, but fundamentally you predict the future trends of the market based on how the new policy will influence the market in long run.

If you are still unfamiliar with forex and looking for a suitable forex trading strategies then I suggest learning technical analysis first, it is the basic of almost all strategies.

Forex Trading Articles

Online Forex Trading Strategies

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Forex trading also known as currency trading is becoming one of the most popular markets today and becoming increasingly popular almost daily. One reason for this is the constant changing of this market.

FOREX – the foreign exchange (currency or Forex, or FX) market is the biggest and the most liquid financial market. Forex trading can yield high profits, but it is also very risky. Everyone can participate in Forex trading via the Forex brokers. All Forex Trading (FX Trading) is determined by a rate of exchange. FX traders simultaneously buy one currency and sell the other, with the hope of making a profit when the value of the currencies changes.

There are always risks involved with any money making process. Forex trading is no different. The most important thing to remember is to be logical about it. Start out small and remember that the more you put up the more you stand to lose. Keep in mind that forex trading is not a way of making money fast. It is important to start out slow and to be sure that you understand the process of what you are doing. So don’t try to earn in a short span of time.

Everyone wants to see a profit and this is one of the biggest reasons we pursue forex trading. For example if you buy currency at one price and sell it at a higher price then you get back more than what you paid thus resulting in a profit. Whether a Forex Trader is forex trading USD/CAD or EUR/USD or any other Forex Pair they are always betting that the first currency is going to increase in value versus the second currency. Once this occurs the Forex Trader would sell back the Forex Pair to make profit off the increase difference between the two currencies.

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The change in values of these currencies with respect to the base currency is the basis of forex trade. The US dollar holds a special place in this market and is the most traded currency because of its acceptance as the global reserve. In a forex transaction, the actual currency is almost never exchanged. The deals are undertaken as contract between two parties, and the gains or losses are recorded into the trader’s account.

The forex deals do not take place in an exchange but over the counter or OTC. This underlines the need for the participants to be highly disciplined in trading. Forex trading can be confusing for a novice trader, but with some knowledge and practice, it will get become much easier. The first step to understanding forex trading is to understand how prices are quoted. To understand how the exchange rate can affect the value of your Forex investment, you need to learn how to read a Forex quote. Forex quotes are always expressed in pairs.

General Forex

Basics of Forex Trading and its strategies

Forex trading means Forex exchange market. It is one of the oldest international markets of trading. If we deeply the analyze market, then we comes to know how much profit we can earn from here. It is not like an exchange only on one place, we can do trading anywhere any time without any limitations. If you want to trade in this market, first you should have a basic knowledge of forex trading, how to buy or sell currencies and many more things. You have to find out best strategies of Forex trading also.

Most of the traders use trial account for building their strategies perfect related to forex trading. With the help of this demo account, they got confidence and find opportunity to trade and perfection in the strategies without spending money. Forex exchange trading strategies also depends upon various forex programs. Some of them are explained below.

Single Generator Program: This program works like a stock picker. It observes the market behavior , trends and then send you a picks all about its strategies like where to invest and how to invest and then it depends upon you whether you are going to do investment in it or not. It can’t perform any action but it asks us to perform an action.

Automated Software: In this type of program, automated software is used. These software works like robots. They are not analyzing the market behavior, trends but also perform an action for us. This software does trading on the behalf of you in forex trading market. You require only a high speed internet connection which helps that software to tell all about market risks and various opportunities. The most benefits of using this software are probability of low risk. The people who are new in the trading and don’t have much knowledge can use these kinds of software for startup.

In market you can get consultant services also. Where you can get all the information about forex trading and get knowledge about how to trade and where to trade, so that you can earn profit from your investment. You can also join online training courses of forex trading. Citadelmarkets.com provides the consultant and training services about forex trading, binary options trading system and many more. You can join any education programs to become more skilled in the market of Forex trading.

Forex Trading Articles

Swing Trading System – 3 Tips to Get A Profitable Strategies

Swing trader is a very popular style used by independent Forex traders as well as banks and financial institutions. If you are a Forex trader, you should take into consideration swing trading strategies. This kind of trading doesn’t require you to stay awake 24 hours a day to monitor your trades.

Swing trading and the Forex market

As you may know, Forex market is very rewarding if you trade it correctly. To simplify swing trading, it’s buying a currency pair at low levels to sell it in the future at higher prices. In the Forex market, the existing pairing of currencies enables the trade. This means that any currency strength or weakness is relative to the other pair. Swing trading strategies involve long term trading, which means that you need to be very patient. You will find very useful tips below that would help you with your swing trading strategy.

Use both technical and fundamental analysis

In any case, swing traders rely heavily on two strategies, which are fundamental and technical analysis. Of course, you can rely on just one of those, but most traders use both since you have the time to analyze both while you are waiting or in a trade. Technical analysis is most used since it is more advanced but it is often used along with the fundamental analysis.

Use swing trading patterns

Any trading strategy relies heavily on chart patterns. If you are swing trading, you will use reversal patterns that give you entry and close price. Continuation patterns will indicate that you should keep on holding your trade. Get to know market patterns as they can pay you back with huge returns, that is why banks and institutions spend a lot of money on market pattern research.

Price curves

Always keep an eye on price curves as they are the most important indicator of trend changes. It can be as simple as buying low and selling high. This does not require any professionalism; if anything, you only need common sense. You just need to buy a currency when the prices are moving up and sell when they are higher. Some very good traders only take one trade per year. Always remember that making profits is not only about buying and selling on the same day It is easy to make money if you follow a strict swing trading strategy. Forex is easy if you simplify it.

In conclusion

You have to go in the Forex market open minded and ready to learn. Without a swing trading strategy, you will struggle in this market for no reason. You might not be having a lot of money to start trading, but the choices you make will determine whether you will join the successful traders or be another failure in this volatile market. Swing trading strategies are very simple and requires a lot of learning but you have to be patient in order to succeed.

Swing trading is the thin line that exists between success and failure in the Forex market. This is a brief look at what swing trading is all about and how it can benefit you as a trader.

Market Analysis

Day Trading Strategies

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Day trading limits trading to the time period of a single day, 24 hours. A trading day can run at different times, depending on the market. Day traders can potentially engage in international markets based in different time zones, or in the foreign exchange market (forex), which is global and normally open 24 hours a day, 5 days a week.

Day trading means that all positions are closed by the end of the trading day. Potential profits and losses are thus tallied up by the day’s end, giving clarity to your financial position. As traders aim to exit the day on a profit, some positions may be closed before the day has ended.

Potential profits and losses from day trading depend on the financial value of your market position. These positions may be leveraged, which will magnify the volatility of the financial market in question. Although the time period is relatively limited, market movements can be sudden and unexpected, and often occur over a very short time period.

You can use spread betting and CFD trading in order to quickly access the markets. Financial spread betting and CFD accounts are subject to status but they available from a range of providers such as FinancialSpreads.com and IG Index . A common feature of a trading account is a desktop trading platform, although the web based platform is more popular.

As mentioned above, day trading limits your trading executions to a single day. This does not mean, however, that it is easier or more likely to result in profits. Achieving profits and sustaining them over a series of trading sessions is far from easy.

You can test your speculative skills by opening a demo trading account that lets you trade without risking any of your capital. You can refine a strategy through practice and by learning from both your profitable and loss making trades.

Technical Analysis and Fundamental Analysis

Analysis of the underlying financial market can help you refine your trading strategy. Day trading strategies can be developed according to fundamental or technical analysis, the two key types of market analysis.

Fundamental analysis depends on the belief that external events and factors can determine a market’s movement. Political events, for example, may boost or depress a financial market as traders gain or lose confidence.

In terms of day trading, a fundamental analysis strategy can be aided by regular access to news sources, such as news wires, online newspapers and other news or financial media.

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Technical analysis uses charts and is focussed upon the interpretation of historical price movements. Thus, if a financial instrument, such as a currency pair, has risen or fallen in the past, you may decide it will do so again in the future.

However this is also the key flaw in technical analysis, just because a market has moved in a certain direction in the past that does not mean it will continue to move in that direction.

Spread Betting and CFD trading are financially geared types of trading they carry high levels of risk to your capital and you can lose more than your initial stake. Always trade with capital that you can afford to lose. Before making any trades make sure that you fully recognise the risk when investing with these investment formats. It is important to note that Spread Betting and CFD trading may not be suitable for all investors. Where appropriate, seek independent advice.