Tag Archives: Three

General Forex

Three Main Points in Forex

These pivot points are used in foreign exchange since long time even before the invention of computers and was originally used by floor traders.

This is one of the best ways for floor traders to have an idea about the trades before the actual trade starts and have the resistance and support levels of the next forex session.

The pivots of the Forex helps to find out the market direction of the day trading with just few calculations traders are able to found the resistance and support levels of coming sessions.

By using simple arithmetic rules and the last day’s trade high, low, close and a series trade points can be computed easily.

These are the critical support and resistance levels and the pivot, support and resistance area calculated collectively from that data are considered as pivot levels.

The Forex market is the market where everyday has some changed high, lows, opening and closing prices that are different from the last day trade and although the Forex market is twenty-four hour trading platform yet the usual timing are 5pm EST is used to recognize the opening and closing prices for further trading using pivots.

The pivot points are very popular among Forex traders because they are leading signals of the market that means they play a predictive role in forex trade as they give the prior information of trade points before the actual trading starts.

The traders can use the previous day trade points and levels to predict the potential of the market and trade points for the upcoming session.

The three main points that are considered here are R1, S1 and actual pivot points.

The basic reason behind trading with pivot points is to find out the reversal or breakout point of the Forex trade that is R1 or S1. With the passage of time R2, R3, R4 or S2, S3 indicates about the already overbought or oversold trade levels that are used as exit ways not the entry doors in Forex.

While using pivot points in Forex the trading above the pivot level and then pause at R1 then further move to R2. This would lead the trader to a break point of R1 with the target of R2 and if the Forex trade is close to half at R2 and then move to R3 according to the rest of the trading position in the market.

The article gives information regarding the pivot points in Forex and the measurement ways of resistance, support and the pivot point of the Forex trade.

Forex Trading Articles

Fx Trading Hours – Three Advantages Of Forex Trading Hours

Forex trading hours give investors three wonderful advantages. These investors can work any time from Sunday afternoon through Friday afternoon. Because the market is always open somewhere, the market instantly reacts to worldwide events 24 hours a day. Best of all, investors make money while they are sleeping. Successful investors understand what Forex is and how it works.

As the largest financial market in the world, Forex trading, which is short for foreign exchange trading, cannot be manipulated by any one country or industry. Every trading day between 1 billion and 1 1/2 billion dollars is exchanged in this active marketplace. The commodities are the values of different countries money and are traded in pairs. The seven most popular currency pairs are Euro/US dollar, US dollars/Japanese yen, Great Britain Pound/US dollar, US dollar/Swiss franc, Australian dollar/US dollar, US dollars/Canadian dollar and New Zealand dollars/US dollar. Currency investing is simple; good news for one country is usually bad news for another. When the price of oil rises, oil-producing countries make more money causing their currency to be worth more.

Investors can work any time with the expanded Forex trading hours. Part-time traders working around a full-time job enjoy the flexibility and freedom. For example, the Australian market opens at 5 PM Eastern Standard Time, followed by Tokyo at 7 PM, Singapore/Hong Kong at 9 PM, Frankfurt at 2 AM and London at 3 AM. New York City, of course, opens at 8 AM and closes at 5 PM.

No matter what happens in the world, the market is ready to react. If war erupts in an oil-producing country, all of the countries affected have changes in the value of their money. Good economic news in the United States increases the value of the US dollar while higher than expected unemployment claims reduces this commodity.

The most exciting advantage to Forex trading hours is investors can make money while they sleep. Because the market is actively trading around the clock, the value of the currency pair changes from minute to minute. Investors able to correctly forecast the value of money reap great rewards as the market rolls from one time frame to another without shutting down.

As Forex trading hours allow people to choose when they work, they can work any time from Sunday afternoon until Friday afternoon. Because the market does not close during this time, this marketplace responds quickly to anything that happens. Finally, investors make money while they sleep.

General Forex

Compare Forex Broker Spreads – Three Steps in Choosing a Forex Broker

Leave a comment

Compare Forex Broker Spreads

For the last few years it has been increasingly difficult to predict the changes in the stock market. This uncertainty has made it so people are looking for different ways that are more predictable to invest their money. One of these ways that more and more people are turning to is foreign exchange trading, also known as Forex trading. The ins and outs of Forex can be confusing; therefore it makes it important to enlist the help of a good Forex broker. Since many people don’t have much experience with Forex trading it makes it important for them to research how to choose a Forex broker.

Foreign exchange trading can be as difficult as the stock market to predict. The idea is that a person can exchange their currency from the United States for foreign currency. When the currencies change value, hopefully in favor of the investment, the person can trade their currency back for US dollars and make a profit. Compare Forex Broker Spreads

Some steps that are important when researching how to choose a Forex broker are:

First, check to see if your broker is financially regulated. When a broker is regulated it gives the client assurance that their money will be protected in the event of a financial crisis. A majority of brokers are regulated in the country of corresponding jurisdiction but it is important to check to ensure coverage.

The second thing a potential Forex investor should do is look at the spreads on offers. Usually there are 2 different types of spreads available, a floating spread and a fixed spread. Research should be done at the same time the client is choosing the broker as to what spread is best for them.

The most important part in learning how to choose a Forex broker forex trading is research. You don’t want to jump into a swimming pool unless you know there is water in the pool. For the same reasons, a person shouldn’t jump into a contract with a Forex broker unless research has been done on the company. Compare Forex Broker Spreads

Forex Trading Articles

Avoiding Three Common Mistakes in Forex Trading

Leave a comment

Forex trading may seem simple enough once you get the hang of it. Buy a currency at a low price and then wait a while and sell it at a higher price. This apparent simplicity is deceiving.


While forex trading may seem simple it actually is a demanding professional activity. To trade at a profit over long time periods demands a lot of knowledge, skill, and discipline.


No matter how simple forex trading may be as to the basic mechanics most forex traders make frequent mistakes that cost them money. The reason is that human emotions often get in the way of common sense and judgement. A successful forex trader often has to have the ability to make independent decisions and fade, go against, what the average trader is doing.


At critical times the profitable forex trader has to have the ability to not run with the crowd. He has to be able to step in and sell when it seems like the rest of the world is buying. And to buy when the market has sold off on a wave of selling. Not many people are able to do this as it is against human nature.


So before you get into the business of forex trading, be sure that you have enough information about the forex markets and that you have an understanding of economic and emotional forces that move the market. Above all have a good understanding of your own trading strengths and weaknesses and be able to constantly strive for improvement.


Here are some of the most common mistakes that novice forex traders often commit.


1. Over reacting to the news:


There will be too much news every day. From the television, the newspapers, the radio and the Internet. You will be flooded with news that is related to forex trading in some way. But remember that there is news and there is important news. You have got to know how to separate the facts from embellished background noise and important data from ordinary data releases. When important news does break you if you are inclined to trade it you must be able to react swiftly. Keep in mind that most important news is unexpected news. It is surprises that are major market movers.


This is very crucial in this field because currencies can be highly volatile. A simple news report that catches the market by surprise can trigger a large move. Following daily news stories and reports about currencies is something that forex traders should be careful about. What they should do though is to learn how to read forex charts and learn what are important support and resistance levels.


2. Getting involved in day trading:


Day trading involves the buying and selling of currencies within the same 24 hour day. This takes advantage of the numerous fluctuations of the currencies that happen within a day trading period. Do not do this unless you are a very disciplined skillful trader. For most traders day trading may provide small short term gains but in the long run it will cost you to miss major moves where the real money is made.


3. Entrusting someone with your money:


One of the very common mistakes that people do when forex trading is to entrust one person with your money and follow their advice. This may be good in some cases as having the right mentor in the business to teach you about the ins and outs can be helpful. However, putting your faith in one person and just following their advice like a robot with no thought or effort to learn the business for yourself is not the way to develop your own skills.


Forex trading offers the opportunity to make large amounts of money in a short period of time. But like most professional activities realizing that potential is not as easy as it may at first look. Avoiding common trader mistakes will help you to stay in the game while you develop your trading skills.

Forex Trading Articles

Three basic essential points to avoid losing in forex trading!

Leave a comment

With a daily forex trading volume of over $3.0 trillion, forex market gives almost infinite trading liquidity and flexibility. Forex trading is a lucrative and convenient way to make money using just a computer and internet connection at home. And for that reason, thousands of people dive right into Forex trading without really knowing what they are doing to begin with and end up with loss in the forex trading.

In order to avoid losing in Forex trading, you’ll need to consider three basic essentials points.

Essential #1

Risk is involved in the forex market. So first of all decide yourself that how much money you are willing to put in and risk. Once after deciding how much of money to risk and decide your self that money has gone. Then the easier it will be for you to stop yourself from interrupting trades and panicking over emotional aspects of the trading game (this is the one thing that kills of most traders before they get past their first week).

Essential #2

Find yourself a well-established Forex broker platform. Currency trading is not for the faint at heart so you need to look for a forex broker platform that has been in the forex market for a long time. Remember that a broker platform that has been in the forex market for a lot of years must be doing something right and will be reliable. Furthermore, a broker platform that understands any automated forex trading system software that you might be using is the best type of broker platform you can have.

Essential #3

Take advantage of up-to-date publications and other tools. Your broker should have a list of these that are available for easy access via the internet. Just remember that education is something that you shouldn’t take lightly. The more you know the more chances of your being successful in this market.

Whilst you don’t always need to know much about Forex trading to be good at it (using automated forex trading system software), it’s always a good idea to know a little more about where your money is going so that you are never at the mercy of software to dictate your financial future.

I highly recommend using Automated Forex Trading System Software to automate the process of your Forex trading activities, not only you can significantly reduce the risks involved, you can also free up 99% of your time to learn a little more about what’s going on behind the scenes.

ÂÂ