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Forex Trading Articles

Day Trading Systems – 2 Things You Must Know to Survive And Win

The forex market is considered to be the largest trading post around the world Indeed, a great number of traders used different marketing techniques to earn money. The process is about buying and selling a stock on the same day. Day trading seems to be a tough competition since most traders watches the movement of trades every second or minute which is a crucial factor. Day trading is really a tough challenge to face, that’s why I’ll be providing you some pieces of advice to help you handle your trades using the right strategies for day trading.

The Proper Timeframe to Trade

Since the forex market operates the whole day, every trader will encounter difficulty determining the flow of market and to identify which suitable response to take. Time is an important factor when it comes to trading currency pairs. I would recommend that you consider the 10 minute time frame but the results would be dependent on the system that you’re using. Once you’re familiar with your system, you’ll surely know when the best time to trade.

Like for instance, if the price does not seem to blend on your trading system( rare systems), the range between 3-5 minutes will likely suit fast time frames. For instance, if you’re engage to trading with systems such as grid trading and hedging. When you trade on a fast pace movement, this can have two results- either you gain money or lose everything.

In addition, the price and any technical analysis are no longer important in fast time frames. On the other hand, if you’re using a system that utilizes technical analysis, you’ll definitely want to go with a slower time frame. Moreover, you need to let your system fit in. I’d recommend the 30 minute chart.

I want to emphasize that it you may have the option to go bigger or smaller, this would depend on your system. For instance, the Fibonacci retracements who fits in a 15 minute chart. Thus, you need to grasp every inch of detail about your system so that you would identify which is the appropriate time to trade.

The Right Time to Trade for Individual Currency Pairs

If you want to figure out the best time to trade individual currency pairs, well you need to be familiar with on the geographical location and macroeconomic factors. Once you’ll familiar on particular time for its peak, then you can surely hit the profits. Let’s take forex trading in Asia as an example, particularly (Tokyo 7P.M.-4 A.M. EST). One of the market giants in forex is Tokyo, no wonder it has been competitive through the years when it comes to trading individual currency pairs.

If you’re target is 90 pips, a good choice of currency pairs would be USD/JPY, GBP/JPY and GBP/CHF. This is the real picture so it is suggested that you gather up relevant information for you to formulate the best strategies for day trading.

Tons of day trading strategies are available in the market though you need to keep in mind that the result would rely on how you handle your system effectively.

General Forex

Forex Trading Basics – Four Essential Things to Recognize Before Stepping Into The Forex Market

A good knowledge of the basics of Forex trading is the minimum required in order to start your career as a forex trader. Before putting your money at risk, you may consider some of the facts stated below.

Forex trading is not easy

You should not be misled by what people say. The Forex market is not a get rich quick scheme and actually, about 95 percent of beginners fail. Make sure you educate yourself and practice trading seriously before you invest a penny. The good thing is that anyone can learn this trade as long as they are committed. Most beginners will fail to follow instructions to the letter. Many traders have successfully grown their account from virtually nothing to millions but not everyone has the chance to perform that good. That doesn’t mean you can’t be a successful trader.

No need to have a high IQ to be successful

Forex trading in not everybody’s cup of tea, it has its own difficulties but it does not mean that you have to overwork to achieve your goals. Just be smart and discipliced. If you are keen, not all the millionaires are nerds or mathematicians. Most of them are just normal people who know how to follow basic instructions. They might not know a lot about the involved math, but they sure know how to play their cards, avoid losses and maximize profits.

Keep everything Simple

The Forex market does not require complicated math, you just have to play it simple and you will win. Do not listen to individuals who say that prediction is important in winning. Predictions are as accurate as horoscopes, always disappointing. Pay attention to your forex charts, they are the only thing that would tell you the truth and will never lie to you.

Manage your money

If we wanted to list all the basics of forex trading, money management should come first. It is quite easy to blow your account especially if you do not have a money management strategy in place. Proper money management is always based upon a good trader discipline. In any trading plan you make, be sure to include a strict money management, as it’s the only tool that will avoid you serious losses. You also need to be persistent and keep on going taking every loss as a lesson.

If we want to compare Forex trading to a train, then the trading system is the railroad to that train.

To conclude

Generating profits is at the core of Forex trading basics. You should be wise in order to be successful, because your profits will surely not come on a silver platter. Always build a system that complies with your character. You can generate substantial profits from the forex market, but nothing is easy; you will have to work hard to reach a point where you can live from your forex profits.

Forex Trading Articles

Things You Need to Know Before Trading

Indeed, forex trading is really challenging just like how this certain millionaire game show goes. This game show that I’m talking about is all about answering questions from the easiest to the most difficult round. There are certain catches along the way. You may reach a certain level but then give back all your gains. A way to prevent this is by calling someone who can give you the right answer and this is called the lifeline.

Forex trading is typically like the said game wherein it involves a lot of mental and emotional readiness to be able to succeed and gain profits. A trader needs to be strategic to be able to gain more and minimize risks in forex trading.

There are cooperative games wherein it is a win-win game. But in forex trading, there should be a winner and a loser in every trade since the trader is playing against the market. Basically, the task of the trader is to look for avenues to be able to maximize the gains and lessen the risks.

The news definitely plays a big role in affecting the price movements in forex as well as geopolitics, economic conditions in major global regions. The new forex systems and the surplus of websites may also signal the new trader. Trading in forex is not an easy task and that proves when experts have a hard time doing so. A beginner and a trader both have a difficult time trading but the novice is more intimidated, of course.

The trader basically doesn’t know about things that he needs to know and things that he should and should not know. As a result, beginning traders tend to use everything they can to evaluate the currency markets and come to a decision on a trade. The final result of this would be the possibility of missing on trading opportunities because the trader tends to over analyze the charts.

If a person is encountering a new problem, he would definitely solve it using his pass experience. Since traders have different backgrounds, their habits mostly are shown through this behavior. For instance, if an engineer is trading in the market, he sees the model as variables just like in engineering. The engineer would want to treat the forex trade as a way to solve his issue.

More experienced traders try to know what they need to know, try to know what they don’t know, and try to know what they don’t need to know. The bad habits of these experts sometimes take place wherein they begin to take shortcuts and stop their learning process. Obviously, this is a disadvantage because through this, experts’ development as traders is put into a halt.

The way how the optimistic new traders and the realistic old traders deal with their search for knowledge about the forex market are what make them different. The way how they deal with the problem come from their past losses and experiences through trial and error. There is a possibility that the novice and the experienced trader will meet their efforts through training and practice in the forex trading.

Forex Trading Articles

Compare Fx Brokers – 8 Things You Have to Verify First

When you will decide to start the trading on forex, the first task faced by you is to compare forex brokers to choose the right broker for your trade. In forex trading the success of the trader is directly attached with the comprehensiveness and the facilities provide by the broker. There are no fixed rules for the comparison of forex brokers but one thing that you must concentrate on is the proper research and the study of important indicators.

To compare forex brokers, here are some indicators that you should consider in taking the right decision. You can give different weights to every indicators and then assign different grades to each broker according to the facilities provided by the brokers.

Starting cost must be low:

Majority of people don’t want to take risk at the start of their trading. The start up cost of forex business must be low. This allows the traders an easy way to enter in the market. The tolerance level of trader decides the level of capital invested in the business because a person invests according to his tolerance limit of risk.

Broker’s commission:

Usually in forex market, the brokers charge you a commission for every trade not on the basis of information provided by you. The less the commission, the more your profit will be. In the comparison of forex brokers, commission can be an important decision variable.

Concentrate on spread offer by the broker:

Difference between the buying and selling price is called the spread for that trade. The lower spread will increase your chances of success because it allows trading more lots. The higher the spread, the fewer amounts you will earn. Normally the spread must be 2-5 pips.

Leverage offered:

The trader decides its leverage according to his nature. Leverage is the amount of return and the risk which you are ready to take. High risks will always result in high return. If a broker is offering high leverage that mean the gain on your investment is high but it involves a great risk. So to compare forex brokers consider the leverage on the basis of your risk bearing power.

Software support provided by broker:

Many brokers provide software support to their traders which help them to keep in touch with the market. The software should be such so that it can fulfill your trading requirements on the basis of your behavior just like terminals are provided by the stock brokers in the stock market scenario.

Currency pairs offered by the brokers:

In forex trading you can trade in many currencies. You are free to choose your home currency because you have more knowledge of it. The currencies which are more liquid and volatile are best for trade.

Trading lots allowed by brokers:

Again it will depend upon the nature of the trader. Some traders want to trade mini-lots, while others prefer to trade large. Depending upon your requirement you can select a broker who can best fits your trading requirement.

Customer support provided by broker:

Most of the traders who enter in the forex market need support and guidance’s for their first trade. Always give importance to those brokers who offer you 24*7 support.

Bottom line:

Without comparing first, you may trade without all the advantages you should have, so be sure to compare a few forex brokers before you decide on which one to select. You can use the parameters such as initial deposit, spread and leverage as your base in selecting the right broker for you.

General Forex

Things to Keep in Mind While Trading Forex

The key to a successful forex trading account is when a currency plan is purchased and then sold in order to make a profit. Once you do have a live forex account, these profits earned can be invested in order to purchase other foreign currencies and then again resell it once the pricing rates go high. But for a novice forex trader, caution is the key. You need to be aware while trading in foreign currency markets. Traders tend to let excitement get the better of them and this in turn causes several losses.

One needs a reliable method of trading forex besides a live forex account in order to earn profits. Look into successful trading methods back in the day in order to gain insights. A foreign currency pair is a much better deal for a novice forex trader to trade with. These pairs are US Dollar, Euro, Japanese Yen and GBP. Any two of these currencies can be used as combinations for trading in forex foreign currency. This helps in profiting from fluctuation in different prices. Liquidity is offered to a major deal by these currencies as their trading is carried out on a broad scale.

Market study is highly important once you possess a live forex account. This helps you carefully analyze the current market conditions and also make the right investment. Patience is very important here. Often seen are beginner traders who invest a great deal the moment they achieve a certain profit or gain. This is wrong. The forex trade market is at a constant state of flux. Keep that in mind with every trade you make. Never spend money in access that you can’t afford. This is the main rule of forex trading. A forex trader with a live account can learn the know-how of trading and can evaluate trade markets effectively. This is because with the help of a live trading account a forex trader learns the art of trading at the right time and right place with the right amount of money.

Initial trading is when a trader enters the market early in the day, purchases a certain currency and then sells it the moment the price rate rises up in the market. But this still is tentative. Hence if the sale is made at a loss amount and the price then shoots up, the trader would regret. This would adversely affect the forex trader at a certain point.

Once you do possess a live account, study the market thoroughly before making your first move in forex trading.