Tag Archives: Strategy

Forex Trading Articles

Forex Trading Strategy Building And Planning

When starting to trade Forex, the trader must build first his own forex trading strategy. This is important especially for beginner traders. The forex trading strategy is considered like a plan that identifies how the trading will go. This includes identifying the analytical ways the trader will use to know the currency pair trend. It also identifies how the money in the trading account will be managed. Here are considred general steps to build your forex trading system.

1. Identify your time frame: each currency pair can be monitored over certain time intervals. The time interval can be in the range of minutes, hours, days, weeks, or months. When mentoring over a time interval of one minute for example, the value of the currency pair is monitored every one minute and displayed on the graph as an opened value and closed value for every minute on the forex trading chart.

The opened value is the value of the currency pair at the beginning of the time interval while the closed value is the value of the currency pair at the end of the time interval. What interval length is chosen depends on the trader personality and his external conditions. It also depends on the amount of money in his forex trading account. Many traders can be busy and cannot look at charts very frequently. This makes the minute or the hour intervals difficult to use. Also it depends according to the personality where some traders can be bored looking at the chart very frequently while others can be happy looking at the charts every hour or every two hours.

The most important thing when determining the interval value to monitor the currency pair over is the amount of money in your trading account. Longer interval times such as days and weeks will result in more fluctuations in the currency pair and more floating losses. This means that larger-valued accounts must use the larger time intervals. Forex trading accounts that have less money must use smaller time interval in order to be able to withstand the fluctuations in the currency pair chosen.

2. Identify your analytical techniques: in forex trading, currency pair trend prediction is the key to be successful in forex. If you are well able to predict where the currency pair will go in the future, you will be able to earn money.

There are two basic ways to use: fundamental analysis and techniqual analysis. Fundamental analysis means to track economic news of the countries that own the currency your are trading and use the news your are reading or hearing to measure the economy of that country. This way is suited for long term trades or trades that uses large time interval such as weeks or months.

On the other hand, techniqual analysis uses the charts directly to predict the trend of the currency pair you are trading. Every forex trading chart supplies you with huge tools that allow you to read the chart more intelligently. These tools can be studied in any forex contexts but the most common are the moving averages, the pivot point analysis, the MACD, the stochastic indicator, and the RSI indicator.

In analytical analysis, you just identify two or three tools from the tools mentioned above and add them to the chart. This will allow you to study the chart and know the currency pair trend. When choosing the analytical tools, you must not use too many tools because this will make the analysis complicated. Only two or three tools are sufficient.

Second, the analytical methods which will be used during forex trading must be planned carefully. This step is considered the most important one in the forex trading strategy. It can be fundamental or techniqual schemes. The techniqual analysis depends on analyzing the curve of the currency pair price which will be traded. It uses techniqual schemes in order to predict the price movement in the future based on the history of the price. The most popular schemes are simple moving average, exponential moving average, stochastic, Relative Strength Index, MACD, and pivot point trading. The fundamental analysis depends on economical news analysis

Third, money management planning must be considered as part of the forex trading strategy. What meant by money management is to determine the percentage of the forex account which will be traded, the profit limit, stop limit, and risk to reward ratio. This is very important in the forex trading strategy although it is ignored by many people.

Fourth, the entry and exit points must be determined according to the analysis used in trading the forex. This means to determine when to enter a trade and when to exit. This will deepens on the techniqual analysis used in studying the pair. For example, if pivot point is used as a trading strategy, the entry point may be the pivot line and the exit point may be the first resistance level.

Once the trader determined the four above points, then the forex trading strategy is built. An important thing to do after building it is to follow it carefully and respect the rules inside the forex e trading strategy.

Forex Trading Articles

Forex Trading Strategy – Simple Ways to Learn Forex Trading

Forex Trading Online has become extremely popular over recent years for a few good reasons, but primarily because of the ease of use, ready access to support services and share volume of information available for the new trader all of which allow you to develop your own effective Forex Trading Strategy. The rise of online forex has also meant greater competition between forex trading platforms, and that is good news for traders. More services and lower costs is the result as trading platforms compete with each other to attract the attention of new traders entering the market.

Forex Trading is also one of the truely recession proof investment models around. No matter what’s happening in your local economy, if currencies are changing value against each other (which they do every day, and often more than once per day) there’s an opportunity to profit from a forex trade. Not only this but most online forex trading platforms also allows traders to enter the commodity trading game as well – Gold, Oil and other commodities can be traded from the same systems as US Dollars, Euro’s and Japanese Yen. Another good thing is the ability to “Leverage”. This allows you to trade tens or even hundreds of times you actually amount of money in a single trade. Remember that the amount of money you make off each trade is determined by the size of the trade, and even a small starting balance will allow you to trade the equivalent of thousands of dollars of actual currency. With these sorts of volumes even small profit margins can net significant monetary gains!

How to get started:

1. Do a little reading. There’s a number of free ebooks available on forex trading, but there’s one provided by easy-forex.com that’s a great starting guide. It’s also a good guide to refer back to later on, so print out a hard copy too. there are also some great tutorial guides available online for a vary modest fee. These tend to be complete trading manuals including strategies and trading tactics.

2. Get a Practice Account. There are a number of good places you can get a Forex Demo Account, but two of the most popular are eToro and easy-forex. You’ll need to download their software and install it on your computer, but once it’s set up you can take a crack at applying your recently gained knowledge to the real world of forex trading WITH NO RISK. A demo account allows you to gain the experience of actual trading in a live environment, but without risking any actual money – simply put there is no better way to learn forex trading without risking a cent than by getting a Forex Demo Account, and any new trader should consider a demo account a MANDATORY step in their Forex trading education.

3. Go live with a mini account or micro account. Once you’re comfortable with your demo account and you’re ready to move on to the real thing, go ahead and open a live trading account and make your initial deposit. Many trading platforms offer sign up bonuses or other incentives on your first cash investment. In some cases this can mean as much as $1000.00 gets credited to your trading account as a “welcome aboard” bonus! Mini and Micro accounts are just names given to small initial deposit accounts. Despite the lure of large welcome bonuses, start off with a small account – a demo account is one thing but there’s no substitute for a live trade.

4. Go forth and Multiply! The final step in your forex trading plan should be to work your way up to a full scale trading system. Start allowing yourself to make bigger trades and explore other currency pairs or commodities. Slowly but surely wins the race, but don’t be afraid to put your foot to the floor in some cases too!

Forex Trading Articles

Forex Strategy Trading Guidelines Learn The Essentials Of Trading

Forex strategy trading is an unusually money-making investment to get into. It is the exchange of foreign commodities internationaly sold for a profit determined by what the market us doing.

The market is originated by the individual speculators, the banks, and many other international corporations that make up the more than 4.3 trillion dollars of trading volume that takes place on a daily basis. On the other hand, there are still lots of people who are puzzled as to exactly what Forex trading is and how it works. As a result, in this short article I am going to explain it very simply so that you get the fundamental concept down.

With Currency Trading you buy currencies at an exchange rate for another currency, both currencies together are called a currency pair. To illustrate, you might exchange the Canadian dollar for the Japanese yen or you may exchange the New Zealand dollar for the Mexican peso.

You are going to use the American dollar as the unit to figure out what the value of the other currencies are, because the less the American dollar is worth the less of any international currency it will buy you. This rule applies to every other currency as well.

If the currency would get you less in US dollars then the currency isn’t worth that much.

What you are trying to do with Forex strategy trading is make what it known as a pip. a pip is the smallest movement a currency pair can make. Decimal format is utilized to assess the exact exchange rate for currency pairs internationally.

To be more specific, a US dollar might get you 1.5617 Euros. You make a profit when the number moves up a point(or a pip). The more this number moves up the more pips you make. A pip can be a unit of twenty dollars, ten dollars, or less depending on what type of account you are playingtrading with and the size of the lot.

Trading the foreign currency is not like the stock market where they are dictated by the SEC. In Forex most of the trading is done through online trading platforms and a network of banking brokers.

A big part of the money that is exchanges comes from only five percent of the market banks and big companies.

The other 95% comes from smaller market players who may have a few thousand dollars in their account to play with.

Of course there is a lot of technical jargon involved like, Fibonacci retracement, which tells you where the level at which a market trend will break, and fundamental analysis which simply means information you are fed over the news.

These kinds of terms frighten a lot of beginner foreign exchange traders, but trust me they are easy to learn and there is no reason why you can not pick them all up.

The main principle is to buy one currency at an exchange rate that will move up enough in value to be able to buy more of a currency which is worth less now because of the boosted value all centralized around the US dollar.

The 0.0001 example I gave above is spot on for most of the major markets, but for the smaller ones sometimes the price might be measured differently.

I hope this article has been useful in assisting you to comprehend just how Forex strategy trading works.

To your success,
Jay Molina
Senior currency trader & coach

Forex Trading Articles

How To Create And Share Your Forex Trading Strategy With The World

Due to the advances in technology, forex trading (currency trading online) is accessible to pretty much anybody who wants to start trading forex. The marketing of different conservative, aggressive, scalping, news and automated trading strategy ideas show how alluring trading forex markets is to the population. In other words, forex markets are no longer limited to those with high net worth or bank trade teams.

In any power trading strategy, a proven trading method will mean that through forex strategy testing and by using trading risk management, no more than one or two per cent of a total account value is put at risk in a single trade. This is key in the path to big forex profits. In order to start trading forex, any breakthrough strategy will start with the basics and have clear forex trading strategy rules set out so that at least part of the trading is automated in terms of the decisions that need to be made whilst trading spot.

Hence, making money with forex trading (currency trading) can mean making big forex profits. It also means that trading risk management must be in place or else there is a real risk of wiping out an entire account. You could just go right ahead and download some brokerage charting software and start forex trading today if you wanted to. The way to start is so simple these days and leverage provided by forex brokers enables practically anyone with anything to invest (literally) to be able to start with a forex trading strategy.

Predicting forex prices from forex trading tips is not enough it must be stressed. Whilst there is no reason you cannot get a good forex education online, or even pick up some forex trading online tips from a forex trading guide, if you want to make money with forex trading, you simply must have a sound currency trading strategy.

Currency trading strategy rules for a forex business can be developed by amalgamating forex trading systems of others or simply garnering a forex education to include: fundamental and technical analysis; trading money management (risk management); a daily forex strategy briefing from a “third party” and a way of creating forex forecase signals (in other words a means of predicting future forex prices from perhaps a technical setup on a currency pair or simply from forex strategy testing that has been carried out.

Forex strategy testing can either be done through using a practice account through your broker or by paper trading your strategy. A third option is to use software such as forex strategy tester which can run a simulation of what could happen if you trade by your rules with some limitations on accuracy.

Researching forex trading tips on the internet will find any trader millions of websites offering services from paid-for technical and fundamental analysis to free forex ebooks webistes right the way through to a breakthrough strategy that may “promise” to enable you to become proficient in predicting forex prices or giving you an aggressive forex trading strategy that promises to allow you to cash in and make big forex profits from a power currency trading strategy.

Predicting forex prices has become a forex business in itself with companies offering forex forcase signals which aim to predict the forex market prices and give trading ideas on an intraday, daily, weekly and monthly basis for the different trade styles.

Your trading strategy is going to evolve through the hurdles and hoops that anyone who wants to create forex trading strategy rules needs to go through. A power trading strategy is possible, but to make big forex profits is going to take a lot more than one of the free forex ebooks webistes out there today. Indeed predicting forex prices is going to be a journey and not a destination for the rest of your trading career as no one gets it right all the time – not even the latest “breakthrough automated trading strategy”

What that means is that your forex business runs largely like an automated trading strategy, only with the input of your knowledge from what you have taken in learning to trade forex online. To make this happen, you will start to think about what you may need in order to implement your trading strategy. For example, will you be needing a daily forex strategy briefing from either a paid service or a free provider of forex strategy briefings – such as perhaps your broker or a third party service.

Your charts created by forex trading software will give you a pictorial representation of what has been happening up to present in the markets and enable you to make predictions of forex price movements by learning and applying various indicators. Alternatively forex brokers may provide forex trading tips through charts they have paid employees or third parties to create to help or give ideas to their clients.

Some online forex trading tips websites may be able to offer professional opinions on the current market action. However this is no substitute for learning online currency trading for yourself and starting forex trading with your own strategy – you could even share your forex strategy with others.

So it’s also important to work out the forex trading costs in terms of time, investment in forex education and starting a forex business.

Market Analysis

Principal Investment For Global Trader’s Market Trading Strategy

I was just hanging around forum sites the other night when suddenly, I got stuck and participated in the discussion. I couldn’t be able to prevent this feeling of bit amused on different traders’ opinions and reactions in the thread. Trading seems to be very influential that gives drastic impact to various people all over the world. Since trading is not a sure thing in most cases, I consider it pretty much like a game wherein you won’t be able to find out the result unless you give it a try, play and win. Surely, just like any other competition you need to have your own strategy. It is a tried and tested method of application to achieve great result and sure win.

A trading strategy is your principal investment to control things according to what you want to accomplish. For a global trader, it is basically a complete system on how you will execute a trade to meet substantial trading profits in a specific timeframe.

The stock and Forex market are two essential places for trading, they are kissing cousins. There are many evidences that stock market can make sparkling collision to Forex in various means. Surely, you won’t be able to comprehend the whole market scenario unless you made research and studied trading courses. The market is a very perplexed place that needs to be totally absorbed and understood. I would suggest that anyone who wants to trade in the market live should begin his career by learning the business completely. Stock trading basics will surely help but proficient education will be an edge for you to handle risky market situations.

The good thing about our current status in trading is that there are various training courses that offer in-depth trading education and seminars for both novice and expert traders. Of course, some traders will disagree and would probably raise an eyebrow for telling that experts should also need to enroll in some stock market trading courses. Learning is a continuous process of growth and development. There are so many things that need to be furnished and enhanced. No matter how successful you are, there would always be a tendency for you to lose. All you have to do is to prepare yourself to combat any unnecessary incident that you may encounter in the real-time marketplace. You have to know when to enter and exit a trade so you won’t be able to lose fortune and make bad credit.

We have to admit that we are not perfect. Traders must realize that the only safe way to make unyielding profits is to provide yourself some investment for future success. The principal things you need for investment are solid trading education, personal training and trading software. These principal investments will facilitate you in getting great financial freedom. From these, you can build up strong market trading system and risk-tolerance strategies.

Now, I knew why Shamus Bradley strictly imposes traders to have a goal prior to executing trade in the market live. He wants traders and investors to get great strategy for reaching that goal in the safest and most certain way.