Tag Archives: Strategy

Forex Trading Articles

Forex Trading Strategy For Beginners

There is nothing like a good forex trading strategy. There are many unforeseen risks in the foreign exchange market does not rely on a forex trading strategy succeed only.

As a beginner, you must start your career will be set firmly in the foreign exchange market. Knowledge is the key to any successful career open, especially if the race to market risks and forth like a pendulum will include unpredictable. The knowledge that you are trying to learn, of course, should, must, like currencies at a price, such as market trends can be identified and taken advantage of technical analysis, trading and other fundamental principles that relate the risk of loss. Do a lot of researches go further than you think. But do not try to jump into the river to bathe. This means that you start slowly and do not address the intricacies of the negotiations before the mastery of the basics.

Expert analysis is the art of predicting the trends and historical events that shaped the past. In other words, should address the foreign exchange market to become familiar as the palm. The best of the analysis of these trends is known to read the newspapers a few years and through books written by leading players in the forex market. Ensure the construction of graphs of price movements and interpretation of graphics, such as in any other way that they remain in touch with what is happening and what could happen. Once done, you can use the deeper aspects of the analysis and prediction of success.

Believe it or not, occur based on the closing price of not only. The reality is that some events – whether political, economic or social – to determine to price fluctuations. So try your best to follow the political, economic and social development around the world, as it this kind of seemingly senseless events that shape the reality we see right in front of graphics and tables.

For example, the withdrawal of a product – is a good indication that the currency of that country to suffer a lot – when a product is a manufacturers citing errors recalls. The same applies to political events around the world. For example, a change of government to a new economic policy that can not support the speculation to a point where this kind of economy will be affected by lead.

Day trading is a paradise for beginners. As mentioned above, the foreign world is risky and unpredictable. Never try to maintain their positions too long because it could reverse their fate. As a beginner trying to learn the best forex trading strategy, you will be better by many small wins are served on a huge losing trade once.

Forex Trading Articles

Forex Strategy Trading Tips 3 Easy Tips on How to Select High Probability Trades

I’m writing this article after I spoke with one of my traders a few days ago and she was asking me about how to exactly to locate high probability trades to profit from the markets.

Forex strategy trading requires that you follow your trading plan, be disciplined, and only trade high probability trades.

Most Pro traders use simple strategies with strict money management to assist them to achieve their trading goals and profit consistently from Fx trading. In this part of my Forex strategy trading tips series I’ll be referring to 3 easy methods I use to help me select high probability trades.

Never opposed to the market current: Even though I do use many custom indicators and trading strategies, most of my trading is still based on basic trading principles. I always respect the overall trend and don’t attempt to go against it. I additionally respect strong support and resistance levels as they represent the region where demand and supply meet. The foreign exchange market is bigger than us and even when you have huge amount of money in your trading account it is just about impossible to ever manipulate the market and make it go your way.

Make use of the K.I.S.S Principle: The KISS principle stands for “keep it smooth and simple”. Among the best techniques for getting confused, commit mistakes, and throw money away is to utilize complicated trading strategies that you don’t really understand. I have been trading the markets for years and I still don’t use anything but very basic (but extremely powerful) trading strategies that enable me to produce the type of returns I expect from Forex trading. There’s a Forex myth that claims that “complex Forex currency trading systems are more effective and make more money than the simple trading strategies.” This is not always true. I know some very successful traders who don’t use more than a set moving averages and a MACD indicator to enter the market and cash in on it. So don’t forget regardless of what system or strategy you choose to use remember to keep it simple and running smoothly.

Concentrate on your trading strategy and plan & ignore all the “noise”: The Forex market is full of opportunities. There are millions of Forex robots, indicators, strategies, mentors, signal providers, etc… However, the real challenge is to filter the good guys from the bad guys and frequently all the noise coming from other traders or companies can distract you tremendously.

This happened to me initially when I first started. When I got started as an Forex trader I was trading with several professional Forex traders who all trade in many different ways. This made discovering my trading personally and my trading style very difficult. Nevertheless, I understood that if I wanted to become a professional trader I was going to need to perform analysis and trade based upon my own judgment, not someone else’s.

Therefore, I strongly believe that anybody who aspires to become a profitable trader needs to develop themselves as traders and trade based on their unique judgment (even if you use someone else’s trading system, you are the one that must make the system work!).

Over the next few days I will be teaching more Forex strategy trading tips straight out from my Fx trading vault.

To your trading success,

Jay Molina

Forex Trading Articles

Free Forex Trading Strategy

Trading Forex requires learning technical analysis for currency pair price. Many technical indicators exist that can be used for technical analysis. In the forex trading strategy presented here we use two main indicators and one more indicator that is used as confirmation for the price trend.

The two indicators that are used in the strategy are pivot point analysis and stochastic indicator. The confirmation indicator is the relative strength index (RSI). Let us see first an overview of these indicators and see then how are they applied together in the trading strategy to make decision on whether to buy or sell.

The pivot point analysis involves determining support and resistance level. The support level is defined as a level the currency pair cannot go below it for a large time period. Similarly, the resistance level is defined as a level the currency pair cannot go above it for a large time period. The pivot point analysis defines many levels at different strengths. The higher support or resistance levels the strongest level which means it is more likely that the currency price reverse direction at this level. This is the first indicator in our forex trading strategy.

The stochastic is an indicator that determines the degree of increase or decrease for a given period. The higher the value, the more the currency price increases over the period. The lower the value, the less the price is going. If the price is continuously rising over the specified period, the stochastic will be high for a large period and this is called overbought. Te reverse is true and will result in oversold condition. If this indicator is more than 80 % for large period, we say this is overbought condition. Also if it is less than 20% t is oversold condition. This is the second indicator that will be used in our forex trading strategy.

The RSI is like the stochastic but uses different calculations. It can be used to determine the overbought and oversold conditions. It is also used to determine the price trend. If it is more than 50 % the price is going high and the reverse is true. This is a confirmation indicator in our forex trading strategy.

The forex trading strategy given uses the pivot point analysis and the stochastic as the main indicators. The trader must first check the stochastic indicator. If it is high for long time (especially more than 80%) then it is overbought condition. Similarly, if the stochastic is low for long time(less than 20 %), then it is oversold condition. The trader must expect a reverse in the price when those two conditions are seen.

Once overbought or oversold conditions are seen on the price curve, the trader can see the pivot level at which the price reaches. The more the level the price reaches, the more likely that the price will reverse. For example, if the price is overbought and we see that the price reaches the R3 level or a higher resistance level, then a very strong probability that the price at certain point will reverse. The price also at this condition will change very strong which will make many pips.

The entry point of the trade at this forex strategy can be determined by the RSI. When the price is overbought or oversold and reached the highest pivot level (or break out that level) the RSI can be monitored to determine when to enter a trade. If it is higher than 50 %, the price is going high. If it less than 50 %, the price is going low.

Forex Trading Articles

Strategy of Forex Trading

All winners have a covert key. The key plays a vital role in forex trading to make easy money with simple strategy. As for the newbies it is very essential to understand the basic of crucial forex strategy. Forex trading cannot be constantly making money without sticking on to some forex strategy. One can have his own trading strategy but it takes a lot of time, efforts and dedication to put up your own and which should acclimatize with your trading style. It is also very important and should be kept in mind before choosing a strategy that it should be easily adaptable with your daily trading plan and can be successfully applied.

Forex is the largest financial market in the world, where global currencies are traded. The daily turn over of forex market is about $1.7 trillion, this shows that each trader has a lucid strategy in order to get a piece from that massive cake. For the beginners here are the most basic strategies which really going to help in this big forex market:

1. Knowing the market – Acquainting with the forex market is to understand how the entire system works. In forex market the group of actors are generally central or commercial banks, investment funds, companies concerned with foreign trade, brokers and individuals with large capital. Everyone trading in this market trades for their own personal grounds. Their actions are tentative and effective, meaning no genuine product being bought or sold. The trades is done mainly for the exchange of value of the currency besides another.

2. Analyzing the use of currency – There are two basic types of analysis…(a) fundamental and (b) technical. Technical analysis employ price as the key point of analysis. Measuring price volatility and identifying trends are some of the techniques involved in providing a trading signal. Fundamental analysis seem to be a factor that effects a particular country’s currency for instance political stability, unemployment rate, inflation rate, tax and policies. These factor seems to be having incredible effect on currency value.

3. Develop discipline to plan a sound strategy – In trading strategy it is the component to develop the values of discipline & accurate money management. It can be done by planning the dimensions of your trade. Good money management can reduce the loss if it cannot totally eliminate it.

4. Practicing before investing – There are many companies as well as broker which provide with the demo account for practice. And everyone who is making a living on forex started with a demo account and learned through practice. Find a broker that appears most friendly this will certainly help the newbies to get some sense and experience in their trading.

5. Take services of a good forex broker – As practicing through the demo accounts a time comes to go with the real money. Here you can take the services of a good broker which will help you in your real money investment. As they are highly experienced to make wise judgments and provides you with the platform, analytical tools, charts which helps in your trading.

General Forex

Forex Strategy Trading Tips And Hints How to Make Use Of Forex News Releases to Trade The Forex Mar

Fundamental analysis is the research of how the worldwide events and news influence the currency markets.

In this edition of my Forex strategy trading Hints I will be teaching you how I you can utilize fundamental indicators to help you take better trading decisions.

The usage of fundamental analysis in the currency market is done by using economic indicators. These fundamental indicators provide you with economical conditions of a country that can assist you to evaluate the robustness of a country’s currency.

Economic indicators are available throughout quite a few bodies of a country’s government and private companies. This information is researched by foreign exchange traders to calculate the direction of the currency exchange market. Currency economic indicators are released at defined times and dates, and are followed by most serious foreign currency traders.

Given that so many investors are looking at them, foreign exchange economic indicators have an enormous impact on the exchange rates of the currencies that are traded in the foreign exchange market.

A large amount of Forex traders do not use fundamental analysis because economic indicators seem difficult to them.

Nevertheless, using fundamental analysis and following economic indicators can be a whole lot easier when you follow easy guides that will keep you up to date with the Forex economic indicators with no trouble.

How to Start Using Forex Economic Indicators

It is important to keep a log of all the important Forex economic indicators’ release dates. Keep a log or subscribe to one of the economic journal services that are available on the internet.

Aside from that, you should employ and follow economic indicators that are relevant to the currencies you trade. Each currency belongs to a different country and for that reason the economic indicators will be different for each currency.

You will in addition need to learn what each indicator means and how it will impact a currency’s strength.

The primary theory behind Forex fundamental analysis is that if a country’s economy is doing good its currency will go up in value and if the economy is doing bad then their currency will devalue and its price will go down.

The Most Significant Fundamental Forex Indicators

As I said before each currency will have unique economic indicators and the date and time when they are released are different. It is now time to talk about the most prominent fundamental indicators that every single foreign currency exchange trader should pay attention to.

The Treasury International Capital: The treasury international capital or TIC measures the flow of treasury and agency securities. The simple principle behind this indicator is that a increased reading is positive (or bullish) for the USD, while a low reading is negative (or bearish).

Durable goods: This is released monthly by the Bureau of Census and reflects new orders placed with domestic manufacturers for delivery in a near future. The basic principle behind this indicator is that a high reading is positive (or bullish) for the USD, while a low reading is negative or bearish.

Consumer Price Index (CPI) Ex Food & Energy: This indicator measures and analysis the weighted average of prices of consumer goods and services such as transportation, food, and medical care. This indicator is used to measure the level of inflation of a country. The basic principle behind this indicator is that a higher than average reading is seen as positive (or bullish) for the USD, while a a lower reading is seen as negative (or Bearish).

There are several other Economic indicators that can be used to assess the FX Market and you should spend some time examining the ones that affect the currency pairs you trade. I hope I was able to offer you with helpful information in this component of my Forex strategy trading helpful hints.