Risk Management
A short presentation on managing yourrisks when trading.
Keep It Simple And Complex
Friday, April 1, 2016
How the Stock Market Works
Go there now for free report on 7 Reasons to Invest for Income -- Now More Than Ever.
Put your money to work. This old but funny video explains basics of how companies go public and sell stock to investors. A basic primer of the capitalist system and how it is making our lives better. When we remember the basic purpose of the stock market, we can better understand why income investments are the best. Good companies use our initial capital to create goods that are in demand. Buying and selling feverishly is inefficient and not effective.
10 Countries That May Not Survive The Next 20 Years
10 Countries That May Not Survive The Next 20 Years - The future is uncertain, some countries may not survive another two decades. Join us on our speculative list of 10 countries most likely to collapse within 20 years. *REMEMBER* this list is speculative, and just because a country may collapse in 20 years, doesn't mean that it will, or that we want it to. With that out of the way, enjoy! This video is drawm solely my opinion drawn from my personal knowledge, and is my own original work.
10. Spain
9. North Korea
8. Belgium
7. China
6. Iraq
5. Libya
4. The Islamic State
3. United Kingdom
2. United States
1. Maldives
The European Debt Crisis Visualized
At the heart of the European debt crisis is the euro, the currency that tied together 18 countries in an intimate manner. So when one country teeters on the brink of.
Fact: America's national debt stands at $17 trillion. That's a tough number to grasp. Most people will never come close to making $1 million in any given year. How can we understand the magnitude.
Debt Crisis 2016 United States of America Explained in a Simplified Way
Debt Crisis in United States of America, A Simplified way of understanding the whole scenario of the debt crisis, the inevitable collapse of the american Economy.
A must watch simple explanation video for understanding the scenario of US Economy, inflation, stagflation, recession etc. for all those who are considering to shift their jobs and businesses to US in coming future,
Sorry for the outdated data figures in the video but it will give you a straight and simple idea about the thing.
Thursday, March 31, 2016
easy-forex, Introduction to Option Trading
What's in a pair? - easy-forex - Education
Now that you know the basics of what forex is let's look at the different components of trading in a little more detail.
The first thing that you need to understand is what you are looking at when you see a currency pair.
When you look at a currency table or are deciding to trade a pair you will see the symbols of the currencies available to trade. For example, if you are going to trade the euro versus the US dollar you will see the currency pair symbols EUR/USD.
The first currency mentioned, which in this case is the EUR, is called the "base" currency and the second currency, which in this case is the USD, is called the "counter" currency.
The most commonly traded pairs are called the majors and these include: EUR/USD, USD/JPY, GBP/USD, USD/CHF, AUD/USD, and the USD/CAD. You will note that the USD is always one of the currencies in a major pair. The majors make up approximately 85% of the forex market and, as a result, have high liquidity, which means they have high trading volumes and volatility which creates multiple trading opportunities.
In addition to the majors you also have the option to trade cross currency pairs. Crosses do not contain the USD as a currency but contain other major currencies. An example of this is the EUR/CHF (euro swissey).
Finally we have the exotics -- these are pairs that have one major currency and another that is from an emerging market such as the Singapore dollar or South African rand. Note that because exotics are less frequently traded they are less volatile and therefore the spread or difference between the base and quote currency tends to be wider.
When you start trading you will start to come to know these pairs by their nicknames. The GBP/USD is commonly referred to as the cable, the AUD/USD is called the aussie and the NZD/USD the kiwi to name a few.
What is a pip? - easy-forex - Education
In order to trade successfully you need to understand what a pip is and how to calculate its value.
A pip stands for "percentage in point" and is the smallest price change that a given exchange rate can make
An increase or decrease in pips represents a profit or a loss in your forex trade. Let me explain further!
When currencies are quoted, they are mainly quoted to the fourth decimal place (this is also true for silver and heating oil).
Exceptions are pairs that include the Japanese yen (as well as commodities such as gold, oil, brent and gas), which are quoted to two decimal places.
When we look at the EUR/USD pair and see it move from 1.3130 to 1.3131 it has moved 1 pip (because the fourth decimal point has increased by 1).
A one pip move for the USD/JPY we can see as 77.60 to 77.61 (because the second decimal point has increased by 1).
In major pairs quoted against the USD, we calculate the value of a pip as follows:
The EUR/USD has an exchange rate of 1.3130. If 1 pip equals 0.0001, we divide 0.0001 by 1.3130 which gives us a pip value of €0.0000761.
Let's turn this into a forex deal to see what the pip would represent in either a profit or loss.
Deal 1: Sell €100,000 worth of EUR/USD, at 1.3130. Pip value in euro terms is 0.0000761 x 100,000 = €7.61 (or exactly $10!). If the deal is closed at 1.3120, with a 10 pip profit, the total profit would be €76.10, or $100.
Deal 2: Buy $50,000 worth of USD/JPY, at 77.60. Pip value in dollar terms is 0.01/77.60 x 50,000 = $6.44 (or exactly ¥500!). If the deal is closed at 77.50, with a 10 pip loss, the total loss would be $64.43, or ¥5,000.
It is our commitment to provide our traders with access to the best fixed spreads and execution methods, and this is why you may at times notice additional smaller numbers at the end of a currency rate. These numbers are referred to as "Fractional pips" and are a new pricing feature which lets you see more price action detail and helps you make more informed trading decisions. A fractional pip is a tenth of a pip and the addition of this feature to your account allows you to take advantage of smaller price increments and moves in the market.
Instead of quoting prices to two or four decimals, with fractional pips we quote an extra digit. For example, normally EURUSD ask would be quoted as 1.3251, while with fractional pips we quote 1.32508, with the last smaller digit representing the fractional pip.
easy-forex - How to spot good trading opportunities
Firstly, you should review the previous day's market activity so that you know what the market sentiment was and how investors may be feeling now. Most traders rely on fundamental or technical analysis or a combination of the two for this.
You should focus on the pairs you are most interested in and see how they have behaved previously -- for example, check the high and low levels they hit, and the support and resistance levels they touched. You should also review yesterdays news in order to gauge the market sentiment. Pay special attention to unemployment and economic growth indicators as well as what matter most, interest rate decisions.
Secondly, you should check the economic calendar to see what news and announcements are planned for the day. Currency rates tend to react to economic reports as they are the main barometer of a country's economic health. Announcements from central banks and those relating to employment may provoke the most market volatility, so it is important to note the time of day for these scheduled releases and the currency pairs that may be most impacted.
You should also review the daily outlooks which summarise the day ahead and give indications of market sentiment.
Next it's important to check the stock market performance. For the past four years, price movement in most financial markets has been greatly influenced by equities. When stock markets fall, traders may liquidate positions in riskier assets and shift funds to less risky assets, seeking safe haven in currencies like the US dollar, Swiss franc, Japanese yen and gold.
Conversely, when stock markets rise, there is greater demand for riskier assets and higher yielding currencies like the Canadian, Australian and New Zealand dollars. One of the best starting points to determine whether to buy or sell a currency is to monitor economic and global news that contribute to risk sentiment.
Finally, you should review the Technical Analysis for the pairs you are interested in trading. Technical analysis usually starts with identification of chart patterns. There is a multitude of tools that can be used to interpret chart patterns, and easy-forex provides traders with free chart packages that can help spot technical buy and sell opportunities based on market price action.
Forex markets often move in identifiable long-term trends. Technical analysis can be used to spot a trading opportunity and help gauge if the trend for a particular pair may continue. A technical trader may look to the news to confirm the strength of his technical signal. If the news is positive and the technical signal is positive, it would give further confidence in the trade. Remember, the trend is your friend, and unless you are scalping the market, it is safer to trade in the direction of the trend.
Once you have completed your analysis, you are ready to trade! It's important that you ensure you trade with a predefined risk/reward ratio so you never risk more than you are prepared to lose. The ratio is calculated by dividing the amount of profit you expect - the reward - by the amount you stand to lose if the trade moves against you - the risk. A good risk/reward strategy should generally have a profit to loss target of 3 to 1, and the amount risked on a specific trade, known as the margin, should not exceed 3% of your total capital.
After you open your trade it is important that you continue to monitor its performance as well as what is going on in the market. It may be that the market moves and you want to amend your trade to match the latest market conditions. Remember, the forex market is very fast paced and volatile, and it's critical to ensure your investments are protected by predefined stop losses and take profits.
What is Forex? - easy-forex - Education
In this short video we will introduce you to one of the most exciting and dynamic markets in the world and explain how trading forex works.
Forex, FX or currency trading, as it is also known, is the buying and selling of currencies. If you have travelled you have probably already made a foreign exchange trade when you bought the currency of the country that you were visiting. For example, you may have sold euros to buy dollars for a trip to the USA.
The difference with the online forex market is that you don't purchase or sell actual, physical currency. The buyers and sellers in the forex market can be a bank, a business or an individual investor like yourself.
You buy or sell currencies, which are traded in pairs, with the goal of trying to profit from appreciation or depreciation of one currency against the other. When you decide to buy or sell you are speculating on of the future value of the currencies.
Take for example the EUR/USD pair. You choose to buy the euro and sell the dollar. Let's assume that due to market fluctuation the value of the euro increases against the dollar.
You then decide to close your deal and sell the euro. The difference increase in the euro rate means a profit for your deal.
Wednesday, March 30, 2016
The Market Is Always Right and You Are Always Wrong, Period
I like to watch people behave in a variety of situations. I have noticed the vast majority of people (traders), but not all, have an intense desire to be "right "and are very uncomfortable with the notion that they could be wrong. Now let's flash to e-mini trading, most traders understand that any trade, successful or unsuccessful, is a function of probability. The randomness principle simply precludes the possibility that any trade is 100% successful, and that's a darn hard concept to swallow, for some people.
So if there are no 100% guaranteed trades, how in the world do e-mini traders sleep at night? Better yet, how do traders made money when there are absolutely no certainties that a trade will be successful, or that it might end up in disaster?
One of the first signs that a trader might experience trouble as a trader is his/her response to a losing trade, especially in the early going in their career. My approach to trading, after spending nearly 30 years on the institutional side of trading, is to take the highest probability trades as they arise. I take the highest probability trades knowing that some of the trades are not going produce a winning trade. However, I know that if I continue to take high probability trades at every turn that over an extended period of time I am going to profit handsomely.
It is my opinion that every successful trader is forced into the mindset I'd described in the previous paragraph. As I mentioned, traders who become overly excited about a winning trade or let loose a stream of oaths that can turn the room absolutely blue when they experience a losing trade either has to change his or her approach to trading or their emotions will quickly send them on a topsy-turvy trading ride that will always end with the trader arcing into disaster like a lawn jart. Oddly enough, when traders experiences problem they complain that the trade was a "perfect" set up and there is no reason it shouldn't work. Well, for even the best trade there are usually ample reasons it doesn't work. My point here is a simple one; no matter the set-up, the market is always right and you have to learn to accept that principle. If you don't believe me, check your futures trading account balance after a losing trade and then decide who is right. You cannot argue with numbers.
It's important to remember that the market always trades in a certain context and you have to be acutely aware that context. Secondly, even the best trades will fail and that is simply the nature of trading.
Would you like to start earning 300% every week? So would I... yet you see this type of hype on many sites these days. I don't promise astronomical returns, but 25 years of Wall Street trading experience has helped churn out solid e-mini traders for 5 years. Come see me trade. Real trading doesn't lie. Click here for a free visit to my trading room and see for yourself.
Article Source: http://EzineArticles.com
60 Second Adventures in Economics
Stock Market Volatility - Definition & Nature
An economy consists of three basic sectors, agriculture sector, manufacturing sector, and services sector. These sectors jointly shape the Real Economy of a society. Government plays an important role in regulating all these sectors. In addition, governments of modern societies run a few economic activities of grave importance such as defense, currency and some public goods. The monetary sector is essential side of every economy. Monetary sector does not provide, directly, any tangible benefit to a person, but, it is unavoidable for smooth working of product and service sectors. The inclusion of monetary or financial instruments portray the complete and understandable picture of an economy. Financial sector removes multiple frictions between individuals/institutions/states through defining prices, rates of return and exchange rates. Stock markets are vital aspect of financial economy. They provide avenue to companies for capital collection, in return, investors get dividends from companies. The byproducts of stock market are speculative activities and profound learning of involved economic agents. Financial Markets are now an inevitable aspect of every economy. There are five big players of a stock market - speculators, investors, firms, brokers and government. Volatility or uncertain extreme response on an event of all or one significant players creates the volatile environment in the market. Technically speaking, "volatility is a statistical measure of the dispersion of returns for a given security or market index. Volatility can either be measured by using the standard deviation or variance between returns from that same security or market index. Commonly, the higher the volatility, the riskier the security or market."
Bases of Stock Market Volatility
There are five significant players of a stock market - speculators, investors, brokers, business firms, and government or regulatory bodies. Speculator are volatile on account of personal emotions such as greed, fear, panic and dogmatic dispositions. They manifest volatility due to peculiar beliefs about patterns of prices/volumes and decisions of firms and governments, now and then. Moreover, speculators want windfall stable return, come what may. Investors manifests volatility on account of lack of information, knowledge and understanding. Investors naively or wrongly channel trusts / expectations towards some firms, indices and regulatory bodies. Brokers' volatility is normally outcome of unjust competition among broker firms, rent seeking activity of some broker houses to avoid a few regulations, and exploitation of traders. Business Firms may show volatility in lieu of low productivity of inputs, decision-making framework of top management and poor regulations by government. Global economic conditions also affect local firms' behavior and its share prices, positively and negatively. Government manifests extremity because of multiple political expediency. The large business players/associations pressurize government for specific economic policies.
Investors' Beliefs & Market Uncertainty
A belief is an invisible force behind actions or deterrent against multiple stimulus. A belief is shaped because of knowledge, observation, experience, and contemplation. Whenever a belief is established, it feeds or gives strength to human reason and intuition. Reason and intuition are naturally endowed weapons for any life struggle, both economic as well as non-economic. Stock Market, too, is complex functioning of thinking and intuitive market players. The conflicting reasoning of a market player or/and dormant intuitive mindset of someone creates a wave of uncertainty among all participants of financial market. The sustained uncertainty means chaos in the market. However, the final outcome of chaos is creation of relatively better and more significant beliefs. There is possibility of wrong belief or conclusion about working of financial market on account of some rational/intuitive fallacy. The recurring phenomenon of "Market Correction'' activates the invincible warriors of stock market, that is, Time and Patience. Consequently, it follows reasonable / intuitive belief pattern. It is noteworthy that the very existence of skewed movement of price / volume is permanent feature of a share market due to conflicting human nature, so that, a share market is permanent battle ground for all market players. The ultimate winners are always time-efficient and patient.
Investors' Working & Market Uncertainty
Investors are significant and big player of an economy. They are building blocks of stock market outcomes. The individual investor is final basis of every trading activity of the market. They trade with independent and definite mindset. Market structure develops a reinforcing interdependence among investors, the interdependent investment approach shapes a collective mindset of investors. The collective mindset gets a personification in few smart people. These smart individuals are leaders of financial sector. The maximum benefit accumulation appetite among some big investors creates uncertainty in the market, now and again. The bull-bear phenomenon is permanent feature of a share market. The phenomenon can be managed, to some extent, by efficient-effective regulators of the market. The proactive role of regulators is inevitable to create win-win environs for all and sundry.
Conclusion - Safety Measures
At individual level, the insightful understanding of shares, technical and fundamental, and proactive response on price/volume movement is basic to avoid aftermath of market volatility. However, the long run solution is traders' stability, both mental as well as behavioral. The impulsive and non-strategic approach during buying/selling badly affects the traders especially at the time of pressures. The intuitive, rational and strategic stance during trading lessens the effects of buying/selling pressures on individual traders, the said attitude may affect market volatility, positively. At collective level, a comprehensive approach is required to manage manifold volatility. Government / Regulatory Bodies can play a preventive as well as corrective role to harness it. The preventive steps are needed to avoid stock market volatility and corrective steps are required to manage the befallen troubles on account of volatility. The meritorious stand of government / regulatory bodies are vital for disaster management. Normally, the merit killing aggravates the situation due to competitive and global nature of financial markets.
Article Source: http://EzineArticles.com/
Fracking explained: opportunity or danger
Fracking explained in five minutes.
Fracking is a controversial topic. On the one side the gas drilling companies, on the other citizen opposed to this drilling method. Politicians are also divided on the matter.
We try to take a neutral look on fracking. It is relevant for all of us, because of high prices for energy and the danger for our drinking water.
This video focuses mostly on the debate currently ongoing in europe. In a lot of european countries there is a public outcry against fracking, espacially in germany. But the facts in this video are relevant to all of us.
Banking Explained – Money and Credit
Les Banques are juin énigme enveloppée Dans Une énigme. Nous Savons TOUS les types de Ce qu'ils font des Choses Avec de l'argent Que Nous ne comprenons pas, Alors Que La Dernière crise a Laissé sentiment non de méfiance profonde et de la confusion. Nous essayons de jeter Un peu de lumière sur le système bancaire. Pourquoi les Banques Ont Invente, Pourquoi ont-ILS provoquent la crise et y Dernière à -IL des alternatives?
How The Stock Exchange Works
Everyday in the news we hear about the stock exchange, stocks and money moving around the globe. Still, a lot of people don't have an idea why we have stock markets at all, because the topic is usually very dry. We made a short video about the basics of the stock exchanges. With robots. Robots are kewl!
Short videos, explaining things. For example Evolution, the Universe, the Stock Market or controversial topics like Fracking. Because we love science.
Tuesday, March 29, 2016
Top Five Qualities of a Successful Forex Trader
A Forex trader is someone who takes the foreign exchange market to conduct trading of currencies and implements the arts and practices of Forex trading. A Forex trader must know several trading strategies as well as different jargons of foreign exchange trading. The top five qualities of Forex traders are as follows.
01. Discipline and Realistic: The first quality that a Forex trader must hold is discipline. Anyone can make money in Forex by virtue of luck, but not everyone can make money consistently. Moreover, the traders who tend to be anxious and volatile can lose the money in a short space of time. Besides, many traders know the Forex strategies, but they are unable to implement them correctly.
Another thing that goes with discipline is that you must be realistic while trading. You can love a specific currency, but that may not bring the desired level of success. Additionally, the trading strategies are like a compass that will show the path of success, but it is the discipline and realistic decisions that will lead to the glory. So, act like a disciplinarian and make realistic decisions to be a successful trader.
02. Patience and Professionalism: Patience and professionalism walk on the same path and brings optimum level of success. Now, there are plenty of traders that are not patient and lack the professionalism while trading. These traders are bound to lose all the money in the long-run. Take the time to educate yourself about Forex trading and be patient whilst learning the trades of a professional.
Wait for a good opportunity to come and don't make decisions by emotions. Successful traders wait for a good opportunity and don't let emotions such as fear, greed, and pride impede their Forex trading. So, be patient and be a professional for becoming a successful trader.
03. Perseverance: Success and failure are complementary things. Many successful Forex traders lose their entire money in the first place and were the prime example of ultimate failure. Conversely, they didn't get depressed rather they analyzed their mistake and hold perseverance in their character to overcome the failure.
It is a common thing that beginners will fail and lose money, but if you don't learn from failure, then it's the biggest mistake. Perseverance and willingness to learn from the mistakes are two important things that successful traders always hold.
04. Rationality: Rational people are more successful than irrational ones and it's a damn truth for every profession. A Forex trader who takes the Forex trading as a part-time job or thinks it as a hobby will never be successful. In order to be a winner in Forex, you must take the Forex trading seriously and consider this as a business that you must build with utmost care.
Changing the outlook towards the Forex trading makes it easier to succeed and the successful traders always tell that never take things for granted while trading and never treats it as a hobby. So, be rational and take Forex trading as your most important business.
05. Goal Oriented: Objective thinking and a disciplinary approach constantly brings success on board. A successful Forex trader has unique goals to reach that separate them from the rest. There is a saying that 'a goal without a life is like a ship without radar' and Forex trading is not different from this logic. It doesn't matter how big or small the goal is, but you ought to have goals while trading. So, set goals and takes specific actions to reach those goals.
To sum up the article, I would like to say that emulating these traits will not be enough to be a successful trader because everyone is different. However, you can note from these characteristics and implement them in your trading to become a successful trader.
This article reveals the top qualities of a successful Forex Trader. If you follow these qualities and implement in your character, then I assure that you will be a winner. So, read the article carefully and become a successful Forex Trader.
Article Source: http://EzineArticles.com/8904722
How Beginners Can Start Making Money Through Forex
If you are in need of a business to invest your money to get profit, I recommend Forex trading. There are other markets such as futures, treasury bonds and stock that you can invest your money into. But the reason why Forex is far more preferable is due to its liquidity and affordability.
Unlike other markets whereby you are not permitted to withdraw your money since it yields interest gradually, you can withdraw your money in Forex anytime you choose to. In Forex market, you determine how much you make daily depending on how good you are. Forex trading takes place throughout the day and 6 days a week since people from different parts of the world do business in different time zones.
Anyone who wants to trade in the Forex market will have to go through the brokers. Most brokers have almost all the currency pairs, gold, silver, diamond, and other equitable items such as real estate, crude oil etc. The broker provides this service for you and also advices you on the commodity that is best for you trade on.
The good news is that things have been made easy and average individuals can now participate in Forex market. Individuals who do not have enough money can borrow $500 and refund it gradually as they begin to make profit.
Forex traders analyze the market before placing any trade. That's why the Forex market is not a gambling game as many people think. There are two ways to analyze the Forex market. They include the fundamental and the technical analysis. The technical analysis deals with the use of chart and charting indicators to predict the direction of the market. The other one, the fundamental analysis deals with the use of reports from the government to predict the direction of the market.
Traders' opinions are quite different. Some traders rely solely on technical analysis. They believe that the technical analysis gives them all they need. Some traders on the other hand prefer the fundamental analysis while many other traders use both for analyzing the market condition.
The Forex market can be traded anywhere in the world. You only need a laptop, PC or a VPS (Virtual Private Server) to ensure that you are always online. Gone are the days when you need to stay with your computer whenever you place an order. Metatrader has made everything easier. In metatrader, you can place a stop loss or take profit and go anywhere you want. I shall cover that in my next post. Also, in place of VPS, you can monitor your trade with smart phones.
Apart from the client based version, an investor can decide to trade the Forex market by making use of the web-based version. The web-based version is only recommended for the professional traders. The best version for the newbies is the client based version to enable them to trade effectively.
Studies show that over 4 trillion dollars are traded in the Forex market. This makes Forex the largest market in the world. This indicates that anyone with good knowledge of Forex can make thousands of dollars.
An important question to ask by prospective Forex traders is, is the Forex market risky? The answer is definitely yes. Just like all other businesses, Forex trading can be very risky. In fact, due to the volatility of the Forex market, Forex is by far riskier than other businesses. However, with a good knowledge and money management, you will trade successfully and make thousands of dollars. As a newbie, it is advisable to risk little money on each trade you place to prevent exhausting all the money in your account.
Looking for a Forex Robot? Here you can download RSI Robot for free, a Forex expert advisor. The RSI Robot was created for reliability, safe trading, and consistent returns. It's also super easy to use. There are no settings to adjust or configurations to learn. http://www.robotprofit.net
Article Source: http://EzineArticles.com/8998781
5 Reasons Why Forex Traders Lose Money
Although, Forex trading is an excellent way to make good money at the comfort of your home, there are some traders who lose a lot of money. To help you out here are some of the reasons why these traders lose their money:
Lack Of Experience
Many Forex trading accounts have a demo account where you practice with virtual money. The unfortunate thing is that some traders are too eager to start trading with real money thus they don't take full advantage of the demo account. The result is that they lose almost all of their invested money. To avoid losing money you should ensure that you first master how to trade using the demo account before you use a real account.
Having Unrealistic Expectations
It's good to be ambitious in life, but you shouldn't be over ambitious. Many new traders get into the market hoping to make millions so that they can quit their daily jobs. Due to their big ambitions, they tend to risk huge amounts of money with the hope of making huge profits. If the market goes against them, they end up losing large amounts of money.
Failing To Control Loses
Due to ignorance or lack of knowledge, many Forex traders fail to control their loses. When the market goes against them they lose almost all of their money. To avoid this you should ensure that you add stop-loss instructions to all of your open trades.
Being Indecisive Traders
It's common for some traders to open a trade and when they don't make a profit within a short period of time they feel that they make the wrong move. Most of them close the trade and open another only for the trade to reverse and go back to the initial direction. This results to these traders lose money.
To avoid this you should pick one direction and stick with it. When you open and close a trade every now and then you end up losing small bits of your money and eventually find that you have lost all of your money.
Using Forex Trading Systems
There are many Forex trading systems on the internet that purport to help you trade. The truth is that most of these systems don't work and you end up losing your money.
You should know that there is nothing like free money-you need to work hard for you to get any money.
worldwide technical analysis
Article Source: http://EzineArticles.com/9089152
3 Tips On How To Consistently Make Profits In The Forex Market
It's the dream of every Forex trader to make profits consistently. The unfortunate thing is that very few traders are able to make consistent profits. If you would like to make profits in the market here are tips that you should put into consideration:
Select A Trading Style And Stick With It
There are many styles of trading that you can use. The most popular ones are:
Scalping: this is where you open a trade for just a short period of time (less than five minutes) with the aim of eking out a small profit.
Day trading: here you open a position and you let it last the whole day. When it comes to closing it, you close it at a specific time. As a trader, you should use this style when you are interested in making huge profits. Although, you stand to make good amounts of money using this style, it's very risky if it goes against you.
Trend trading: you hold positions for days or even weeks.
Carry trade: this is where you buy high-yield currencies and sell low-yield ones. Carry trades can last for months.
You should do your research and settle on the style of trading that is ideal for you.
Be Disciplined
Discipline is important in every part of life. For you to be disciplined in Forex trading you need to know what you want in a trade. You also need to stick to your limits. To have an easy time you should have a Forex trading journal. The journal will help you in tracking your trades so that you can be disciplined.
You also need to protect your trades. Here you need to keep an eye on three prices: entry price, stop-loss price and that take-profit price. To protect your trade you should always set your stop-loss price closer to the entry price.
Do not Concentrate On Making Money
While money is very important, you should avoid concentrating too much on it-you should concentrate on trading. This calls for you to stay in a comfortable area where you will fully concentrate on the trade. You should also concentrate on your trading strategies.
Conclusion
These are tips that you need to put into consideration if you want to consistently make profits in the Forex market. Before you start trading with real money always ensure that you first master how to trade using a demo account.
worldwide technical analysis
Article Source: http://EzineArticles.com/9090154
Taking A Look At The Forex Calendar
A Forex calendar is a document that has all the important economic indicators and events. The document helps you in keeping track of the Forex estimates made by Forex experts. As a trader, you will find all the information that you need in order to predict the future.
Where to Find A Forex Calendar
There are many calendars provided by different brokers and financial organizations. All you need to do is to go online and find these calendars. If you are working with a professional broker you will definitely find a calendar on the broker's website.
You can also make your own calendar. Here you need to visit the online calendars and choose the most important indicators and paste them into your document. You should then choose the ones that are of importance to you and save. This will help you to act accordingly.
Indicators Found On the Economic Calendars
Indicators are the ones that give you information about a given survey or occurrence. Some of the notable indicators that you will find on the calendars include:
Consumer credit report: popularly known as CCR, this is a report that aids in estimating the changes in the dollar amounts brought about by the issuance of unsecured loans aimed at purchasing consumer goods.
Although, the indicator isn't a big market mover, it will help you in predicting the future spending levels of the consumers-if more loans have been given it means that consumers have more money to spend. The report also aids in informing you on the position that you should take when trading the retail sales and personal consumption reports.
Consumer confidence index (CCI): it's usually released at 10am EST of every Tuesday of each month. It's usually a survey of over 5,000 US households and it intends to show the spending power, financial health and confidence of the average American consumer.
The survey comes with three headline figures: the index of consumer sentiment, current economic conditions and index of consumer expectations. This survey is usually a big market mover since the confidence of the consumer is of great importance for the performance of the country as a whole.
How to Read The Forex Calendar
It's very easy to read the calendar as all the information you need to know is given to you in black and white. The information comes in different colors where red is the most important, orange is less important while yellow shows the information is not important at all.
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Forex Tips You Can't Go Wrong With
Practically anyone can trade on the foreign exchange market, which focuses on major global currencies. The article below will help you learn how the Forex market functions and what it takes to make money through trading foreign currencies.
Check out all the latest financial news, paying special attention to news related to whatever currencies you are involved in. The speculation that causes currencies to fly or sink is usually caused by reports within the news media. You can organize yourself to receive confirmation about news regarding the markets you focus on so that you can potentially capitalize on major developments with lightning speed.
There will only be one dominant pattern at a time, though remember that on the Forex up, market and down patterns will always be present. A market that is trending upwards makes it easy to sell signals. Select your trades depending on the emerging trends.
If the market is thin, beginners in the Forex market should be cautious about trading. A "thin market" is a market which doesn't have much public interest. Remember that your stop points are in place to protect you. Stick to your plan and you will be more successful.
In order to preserve your limit and profits your losses you should understand and use margins sparingly. You can increase your profits tremendously using margin trading. When it is used poorly, you may lose even more, however. Only use margin when you feel your position is extremely stable and the risk of shortfall is low.
With experience and time, your skills will improve dramatically. Make good use of your demo account to try all of the trading strategies and techniques you want -- go crazy, since you aren't risking any real money. You can also get some excellent trading advice through online tutorials. Learn the basics well before you risk your money in the open market.
You want to take advantage of daily charts in Forex Technology can even allow you to track Forex down to 15 minute intervals. Be careful because these charts can vary widely and it could be luck that allows you to catch an upswing. To side-step unwanted stress and false hope, make commitments to longer cycles.
One of the perks of Forex is that you have the ability to make trades on a global level. The tips you are about to read will help you understand Forex and generate another source of income, as long as you exercise self-control and patience.
Adam discovered very early on that trading forex required a serious approach in order for it to be of long term profitability. Adam has now been trading for 15 years independently, but it was not with out help fine tuning his forex strategy from BOAFX Trading Signal Solutions
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Forex Trading Strategies That Actually Work
Professional Forex traders have their own set of strategies which they have developed over years of trading in the markets. However, we as beginners often have to rely on off-the-shelf or internet freebies to work our way out through the markets. The trouble with free Forex trading strategies is that most of the time they haven't been tested or if they actually are there is very little evidence of their reliability.
However, there are a few Forex trading techniques that have proven their worth over time and are known to have minimum chances of failure, if applied accurately. Some of the most useful Forex trading techniques are mentioned below:
1. Hedging: Hedging is a way to reduce the risk by taking both sides of the trade simultaneously. In simple words, you need to go long as well as short on the same pair. As a result no matter in which way the pair moves, you will both earn and lose the money and will almost even out. Professional traders use this technique to cover up their initial trades, when they feel that the market might move against them.
2. Position Trading: This strategy involves trading based on your overall exposure to a currency pair. Your initial position acts as your average price for any particular currency pair. For Example, you have taken a short trade on EUR/USD at 1.20. If the pair is ultimately trending lower, but happens to gain strength and retrace up then you simply take another short position at say 1.22, now your average position would be 1.21. Once the EUR/USD drops back below 1.21, you will overall be in profit.
3. Options: This is another hedging technique used by many professional traders. It provides you with the freedom to purchase (call) or sell (put) a currency pair at a pre-determined price at a specified time and for a specified duration. For example, you believe that the USD/EUR rate is going to shoot up due to some fundamental reason from 0.8 to 0.9. In such a scenario you can buy a call option on the USD/EUR pair so that you can gain profits if the rate actually moves as per your expectation.
Even though there are hundreds of strategies available on the internet, the above mentioned techniques are time-tested by many professionals and are ideal for any beginner. Mastering them before venturing into other complicated techniques would be a wise attempt in your journey of becoming a successful trader.
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Understanding Forex Technical Analysis
In the world of foreign exchange, you will probably hear about technical analysis. It is just what the phrase means: you analyze and study the data with very technical or scientific means. You do not just give your own opinion, but you look at facts, study them, and then use them in formulas that can lead you to the result that you want.
In the case of foreign exchange, the result you want is the pattern that the trading makes in a given period. You want to use that pattern to make predictions. That is technical analysis explained at its simplest.
Is everything about Forex technical analysis fact-based?
Since there are data involved, technical analysis is mostly facts used in formulas. Numbers that result from a certain day of trading are facts that cannot be changed. Both people who have lost money and people who have gained money that day will have the same set of facts. It just so happens that their experiences about those facts are very different.
While Forex technical analysis may be fact-based, it is also based on a few assumptions. One of the main assumptions is that trading patterns will recur at regular intervals. In relation to this first assumption, another assumption arises, that is, currency value moves in trends.
Forex technical analysis is very fact-based that it does not bother itself much about generic guesses. The study no longer encompasses varying moods and opinions. It is as if the numbers have a life of their own, unaffected by outside influences.
How is Forex analysis done?
Technical analysis explained is about price charts and graphs. These mathematical representations are called studies. They are rightly called studies as you have to analyze these charts, graphs, and other forms of illustrated data to figure out what the trend is and what to expect in the next few days or even in the next 24 hours.
You take a certain timeline in foreign exchange trading of the currencies of your choice, and have to look at patterns that may emerge during that period. You can then base your predictions on those patterns. If you cannot find patterns on that smaller interval, you may have to extend your timeline.
What makes Forex technical analysis effective?
Some may say that Forex analysis is just one way of finding patterns that can create market predictions. Its advantage is not exactly on the many formulas that can generate market predictions, but, specifically, the factual way of generating that prediction. The purely unemotional and objective way of arriving at the prediction is what makes it effective.
You may expect that traders who make use of this analysis will be more careful with making decisions on whether to buy or sell a currency. Emotional traders may immediately sell most or their entire share of a currency that suddenly rises but is expected to fall based on gut feeling.
Forex analysis should be best explained as objectively as it is. You should find someone who can teach you how to do it with charts, graphs, and the whole deal. If you want a comprehensive way of learning how to do technical analysis, then you should undergo technical analysis training.
If you are looking for Technical analysis institute in Delhi or Fundamental analysis course in Delhi than visit DelhiTrainingCourses.com. We offer top quality education in stock market industry. Join Our Institute now!
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Understanding 3 Of The Most Common Forex Indicators
Indicators are technical analysis tools that help you in understanding the movement of Forex prices. The indicators are usually created using a given formula thus they are accurate in their working. There are many types of indicators in the market. Some of the notable ones are:
Bollinger Bands
These bands are created by calculating the average volatility of a given Forex. They are plotted on the Forex price chart as an upper and lower price band which represents the highs and lows of the average volatility range. You should use the indicators to buy Forex when the price has fallen to the lower band. You should also use them to sell your Forex when the price rises to the upper band.
Oscillator
These are usually a group of indicators and they include: stochastic, relative strength indicators (RSI) and commodity channel index (CCI). Stochastic indicators are based on systematic higher and lower price closing, RSI are formulated based on relative price strength while CCI gets its results after comparing its price to that of the previous price fluctuations.
You can use any indicator that you want and all you need to do is to choose the one that pleases you the most.
Of the three oscillator indicators, stochastic indicator is the most popular. A stochastic is a line that is plotted on a graph and measures between 0 and 100. The line aids in revealing whether a given stock is overbought or oversold.
If you are a short-term trader you should use the indicator to buy a given Forex when the stochastic line moves below 20 thus indicating that the stock is oversold. You should also use the indicator to sell your stock when the stochastic moves above 80 indicating that the price is overbought.
MACD
The moving average convergence-divergence (MACD) indicator is an indicator that is usually plotted on the bottom of a price chart. The indicator is usually drawn as two separate moving average lines. Just like other indicators, this indicator provides you with buy and sell signals.
When the 12-day average converges and moves over the 26-day average, a buy signal is created and you should buy the Forex that you are interested in. On the other hand if the 12-day average moves over the top of the 26-day average, a sell signal is created and you should sell your Forex.
Conclusion
These are some of the indicators that you can use in Forex trade. To be on the safe side always try to understand everything about the indicators before putting them into work.
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Tips That Everyone Needs To Know for a Solid Forex Trading Strategy
Are you interested in becoming a currency trader? Now's a great time for you to get started! This article will help answer any questions you may have about currency trading. Listed below are some tips that will help you get started with your Forex trading strategy.
You should never trade solely on emotions. Greed, euphoria and anger or panic can really get you into trouble if you let them. There will always be some aspect of emotion in your decisions, but letting them play a role in the decisions you make regarding your trading will only be risky in the long run.
Follow your own instincts when trading, but be sure to share what you know with other traders. It is a good idea to take the thoughts of others into consideration, but in the end you must be the one to make the ultimate decisions about your investments.
One trading account isn't enough when trading Forex. You need two! You can have one which is your real account and the other as a testing method for your Forex trading strategy.
It is important to look at overall trends, though Forex trading always has up and down markets. It is easier to sell signals when the market is up. Your goal should be to select a trade based on current trends.
Trading when the market is thin is not a good idea if you are a Forex trading beginner. These are markets that do not really interest the general public and can cause a lot of frustration.
When you issue an equity stop order it will eliminate some potential risks. This placement will stop trading when an acquisition has decreased by a fixed percentage of the beginning total.
Don't take Forex lightly, it is very serious. Individuals going into it for thrills are doing it for the wrong reasons. Gambling away your money at a casino would be safer; at least then you know exactly how much you are going to lose.
Try to limit yourself to one or two markets to avoid taking on too much if you are new to trading the Forex market. This can result in frustration and confusion. You're more likely to be successful and it will make you more confident if you just use major currency pairs.
You are now more prepared in terms of currency trading. If you were ready to begin trading before reading this article, you should be itching to get started now! Hopefully you have found the tips in this article useful and were able to use them to get you started trading on the Forex market. You will be trading as a professional before long with a winning Forex trading strategy.
Adam discovered very early on that trading forex required a serious approach in order for it to be of long term profitability. Adam has now been trading for 12 years independently and recently started his own trading signals service where beginners and advanced traders can find a complete learning and trading experience.
Article Source: http://EzineArticles.com/9086431
New To The Forex Scene? Try These Simple Forex Trading Strategies
In order to profit from currency trading you need to find out all you can about Forex, this is important. Luckily, you will have plenty of opportunity to do that with a demo account before you start losing real money. Follow these valuable tips to enhance your Forex trading strategies.
Watch the news and take special notice of events that could affect the value of the currencies you trade. Speculation has a big hand in pushing the volatility and direction of currency price, and daily global events are usually the reason for investor diatribe. Set up alerts to your e-mail and internet browser, as well as text message alerts, that will update you on what is going on with the markets you follow.
Remember that on the exchange market down, up and market patterns will always be present, but there will only be one dominant pattern at a time. It is generally pretty easy to spot signals in a growing market. Use the trends you observe to set your trading pace and base important decision making factors on.
Novice Forex traders should avoid jumping into a thin market. Thin markets are those with little in the way of public interest and volatility. When people first start in the Forex markets, they often let their greed blind them, resulting in losses. You should also avoid panic trading. It is better to stick to the facts, rather than go with your gut when it comes to trading.
Use margin wisely to keep your profits up. Trading on margin has the effect of a money multiplier. But you have to use it properly, otherwise your losses could amount to far more than you ever would have gained. Margin is best used only when your position is stable and the shortfall risk is low.
Expert Forex traders know how to use equity stop orders to prevent undue exposure. This will halt trading once your investment has gone down a certain percentage related to the initial total. Be sure not to open using the same position every time. Your opening position should reflect the current trades you have available for the best chance of success with the Forex market.
Once you become comfortable with Forex trading, it will become easier to invest. Keep in mind that you should keep your knowledge sharp and current as things evolve. Continue to go through Forex websites, and stay on top of new advice and tips in order to stay ahead of the game and develop a good Forex trading strategy.
Adam discovered very early on that trading forex required a serious approach in order for it to be of long term profitability. Adam has now been trading for 5 years independently, but it was not with out help fine tuning his forex strategy from BOAFX Trading Signal Solutions that made this possible.
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Do Better In Your Forex Trading Education With These Excellent Strategies
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The personal trader has many opportunities available to him or her and a market full of possibilities. After you have informed yourself about Forex trading education, it is time to work hard and make a profit. When learning the basics of Forex trading, an investor must be able to draw on the experiences of other traders. The following article contains advice for those who are interested in trading in Forex.
Never base your trading on your emotions. Feelings of greed, excitement, or panic can lead to many foolish trading choices. If your emotions guide your trading, you will end up taking too much risk and will eventually fail.
You should never trade Forex with the use of emotion. This can help you not make bad decisions based on impulses, which decreases your risk level. Emotions will always be present when you're conducting business, but try to be as rational as possible when making trading decisions.
Avoid choosing positions just because other traders do. Forex traders often talk only about things they have accomplished and not how they have failed. It makes no difference how often a trader has been successful. He or she is still bound to fail from time to time. Stay away from other traders' advice and stick with your plan and your interpretation of market signals.
Don't get greedy when you first start seeing a profit; overconfidence will lead to bad decisions. You can also become scared and lose money. Trade based on your knowledge of the market rather than emotion. As soon as emotions get involved, you run the risk of making impulse decisions that will come back to harm you.
Forex should be taken seriously, and not thought of as a game. Anyone who trades Forex and expects thrills are wrong. Anyone who wants to roll the dice with their money should visit a craps table, not the Forex markets.
Draw up a detailed plan that outlines what you want to get out Forex trading. When you begin trading on the Forex market, have a set number in your head about how much money you want to make and how you plan to accomplish it. When you are new to trading, keep in mind that there is room for error. Determine how long you will spend trading each day, including researching market conditions.
Again, any trader new to the Forex market can gain useful information and knowledge by learning from experienced traders. This article is designed to provide anyone with the tools to begin a successful Forex trading education in the Forex market. Working hard and heeding sound advice can help traders make a substantial profit.
Greg discovered very early on that trading Forex required a serious approach to Forex trading education for it to be of long term profitability. Since Greg began speculating on the currency market his account and confidence have grown exponentially and he now uses his skills to teach others to be profitable through BOAFX Trading Signal Solutions and their forex trading strategies.
Article Source: http://EzineArticles.com/expert/Greg_Bukkosi/2110829
What Does Fast Execution Forex Broker Mean For Your Forex Trading?
The first thing to note is that faster execution times are predominantly an advantage if your broker is a non-dealing desk (ie. They do not trade against you or create a market). If your broker is a market maker, your orders are not going to any Liquidity Providers and the prices are created by your broker which allows them to re-quote.
A trader can enjoy the benefits of fast execution times if their broker is a true ECN or STP Forex broker (non-dealing desk broker). When an order is opened, there is a wait time for the order to be processed. The trader first opens the order via their trading platform on the computer, the order is then sent to reach the trading servers where it is processed with the LPs and is then sent back to the trader's platform. This entire process is considered the 'wait time' (also known as 'latency') and is usually completed in less than a second. Despite this, one second is more than enough time for spreads or currency prices to change. Any change during this waiting period is called 'slippage' and is something traders wish to avoid. 'Slippage' can be costly, it may reduce profits or increase loss (although it might also increase profits just as easily). Faster execution reduces the risk of slippage as orders are processed sooner and at a level closer to the intended price point.
Faster execution also allows traders to open up multiple trades almost instantly. There is often a lot-size limit to the amount of trades able to be sent to an LP at one time. As such, traders work around this by opening up multiple orders one after the other almost instantly. With quick execution speeds, and a Forex trading tool such as one-click trading (an MT4 feature), traders can open up many multiple positions in just a few seconds at similar pricing. If a trader's strategy proves to be correct, opening up multiple orders almost instantly can boost profits.
There are a few other reasons why faster execution for Forex trading is an advantage. More security and better performance with services such as EAs or Auto-trading sites are some examples, but the lowering of slippage is the main advantage. All these advantages beg the question: how does a trader attain faster execution?
There are a number of methods a trader might implement in order to decrease their latency. Although ultimately, it depends on the Forex broker the trader is with. Latency can be decreased if the broker's technological infrastructure is modern and well-structured. The broker's servers are very important in this regard, as is their connection method to their LPs. One of the best setups a Forex broker can have is if their LPs are using the same servers as the broker, known as 'co-allocation'. This kind of setup allows for a massive reduction in latency.
Latency can also be reduced by using a Virtual Private Server (VPS) that is well-maintained and operating smoothly in regards to its connection to the Forex broker's server. It's worth doing research in finding the best VPS for your setup. Another method may be to use a FIX engine allowing traders to tweak their settings and finding an optimum solution to boosting execution speeds.
Forex Trading comes with a degree of risk that should be fully understood before trading. Traders should only risk amounts they can and are willing to afford. If you have any doubts or concerns, you should consult an independent financial adviser.
Zeba Warsi is doing branding for http://www.blackbullmarkets.com, a leading foreign exchange (Forex / FX) brokerage based in New Zealand has partnered with Fast Execution Forex Broker https://www.blackbullmarkets.com/forex-trading-analysis Faster execution allows traders to open up multiple trades almost instantly. As an online reliable Forex broker, CFDs and commodities, BlackBull Markets offers clients a professional, secure and institutional level of trading.
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3 Ways Forex Brokers Play Games On You
Although, Forex brokers are supposed to work with you and help you to be successful in the Forex market, some unscrupulous brokers try to play games on you. Here are some of the ways in which the brokers play games on you:
Marking Up The PIP
Forex brokers are supposed to transfer orders to the banks and then get commissions for every order that they transfer. Commissions are the only way in which the brokers earn money. There are some brokers who add an extra PIP to the spread. For example, if the spread for EUR/USD is 1 PIP, the broker with add another 1 PIP making it a total of 2 PIPs. This means that the broker not only makes money from the commissions, he/she also makes money from the extra PIPs.
To avoid such a broker you need to do your research. The best way of doing it is comparing the broker's spread with the regular spread. If the broker's spread is above the regular spread by 1-3 PIPs, chances are that the broker is marking up the spread.
Slippage
This is where the brokers increase the price of the currencies when you are about to open a trade. They do this in order to prevent you from making a huge profit. When you are about to buy a given currency, the price automatically rises so that you end up buying at a slightly higher price than the one indicated on the chart.
It's very easy to know that this is happening as you only need to compare the price that you have bought the currency and the one that you intended to buy at. If there is a discrepancy between the two, the broker is most likely playing games on you. To be on the safe side you should close your account as fast as you can.
Re-Quoting
Here the broker will delay for a little bit before you are allowed to make a trade. For example, if the price is going up strongly and you want to buy a currency, the broker will delay for a few seconds and wait for the price to go higher so that you can buy the currency at a higher price. The same thing happens when the price of the currency is going down-the broker will wait for a few seconds for it to go lower.
Many brokers do this 100% intentionally and aim at reducing your chances of making good profits.
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Article Source: http://EzineArticles.com/9093730
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