Showing posts with label forex account. Show all posts
Showing posts with label forex account. Show all posts
Ebook Forex Trading and Commodity (Package 37)
Posted On at by Forex KnowledgeJake Bernstein - Trade your way to riches
Jan L Arps - Surfing The Market Waves - The Swing Trader's
Japanese Candlestick Charting Techniques
Jay Kaeppel - The Four Biggest Mistakes In Futures Trading
Jeff Cooper - Intra-Day Trading Strategies, Proven Steps
Jeff Cooper - The 5 Day Momentum Method
Jens Clever - Master Trader
Joe Ross - Trading Spreads And Seasonals
John Allen Paulos - Mathematician Plays The Stock Market
John Grisham - The Broker
John Hayden - How To Use The Rsi
John J. Murphy - Technical Analysis of the Financial Market
John Wiley Sons - Valuation - Maximizing Corporate Value
John.Wiley.And.Sons.Angel
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Millionaire Traders: How Everyday People Are Beating Wall Street at Its Own Game
Posted On at by Forex KnowledgeEvery day, millions of ordinary people around the world wake up, turn on their computers, and try to make a living by trading the financial markets. Some are successful, some fail, but the possibility of hitting it big attracts many to the business. As currency strategists and traders, authors Kathy Lien and Boris Schlossberg have been active in the markets for more than a decade, meeting many successful individual traders along the way.In Millionaire Traders, Lien and Schlossberg interview twelve ordinary individuals who have transformed themselves into extraordinary traders. These people aren’t hedge fund managers or employees of large money center banks with billions at their disposal, but regular folks who started with as little as $1,000 and turned those modest initial investments into six- to seven-figure fortunes.The traders you’ll encounter come from all walks of life, live around the world, and trade a variety of electronic markets. Some focus on equities and options, while others deal in futures or foreign exchange. Each has a very different style of trading—many that are even in direct conflict with each other—but all share the common traits of discipline, persistence, and the willingness to always cut losses.Some of the individuals who share their experiences in the art of trading include:Dana “Dan” Allen: the man who buys crashes and thrives on making bids when most other market participants are running for the exitsChuck Hayes: who breaks many of the sacrosanct rules of trading yet thrives in the chaotic world of e-mini stock index futures, where the difference between fortune and failure can be measured in secondsIndi Jones (this is an alias): who trades options for volatility as well as directionality, using sentiment and psychology to select his winning contrarian ideasRoland Campbell: who likes to trade news flow, but only the news that catches the market off guardWhile none of the traders highlighted throughout this book were successful from the start, all learned from their early failures and used those experiences to improve performance. Now, with Millionaire Traders, they’ll show you how to make serious money in today’s financial markets—whether it be through stocks, futures, or forex.
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FOREX CONQUERED
Posted On at by Forex KnowledgePraise for FOREX CONQUERED "In this amazing book, John covers it all. From trading systems to money management to emotions, he explains easily how to pull money consistently from the most complicated financial market in the world. John packs more new, innovative information into this book than I have ever seen in a trading book before." —Rob Booker, independent currency trader "John Person is one of the few rare talents that are uniquely qualified to help traders understand the process of successful trading. With today's markets becoming increasingly challenging, John has cut right into the essentials and brought forward the much-needed tools of forex trading. This clear and well-organized publication is a major step forward in helping traders gain an edge. I would highly recommend Forex Conquered as a valuable handbook for both aspiring and experienced traders alike." —Sandy Jadeja, Chief Market Analyst and EditorLondon Stock Exchange, London, England "Forex Conquered is a bold title, but this book delivers the tools needed for successful forex trading. There is no fluff here, just the wisdom of a trading veteran that I have always respected-and followed." —Michael Kahn, Editor, Quick Takes Pro market letter and Columnist, Barron's Online "This is a wonderful, in-depth view into the explanation of technical analysis and prudent money management guidelines in the forex market." —Blake Morrow, President, 4XMadeEasy "Forex Conquered is a meaningful contribution to the growing number of books on forex trading. John Person provides a professional view of forex trading that readers will be able to use as a guide for strategies and tactics that work. The scope of the book covers more than forex and includes salient aspects of futures and option trading. It should be read and then re-read!" —Abe Cofnas, President, Learn4x.com Note: CD-ROM/DVD and other supplementary materials are not included as part of eBook file. From the Inside Flap If you intend on successfully trading in today's foreign exchange market, you need to be familiar with the strategies and systems that can help you capture consistent profits and effectively manage risk. Nobody knows this better than author John Person. With almost thirty years of experience in the trading business—as a broker, trader, and teacher of traders—Person understands what it takes to make it in this fast-paced environment, and with Forex Conquered, he wants to show you how. Whether you're a position trader, swing trader, or day trader, Forex Conquered can show you how to successfully navigate this dynamic market by using proven technical analysis techniques. Filled with in-depth insight, expert advice, and detailed examples, this book presents you with a comprehensive set of trading tools and reliable trading tactics that can be applied to everyday forex trading. And through discussions of different issues associated with trading the currency market, it also provides you with the knowledge needed to properly enter a position; identify a trade setup, trigger, or entry execution order; effectively place stops; and exit a trade without hesitation. Written with the serious trader in mind, Forex Conquered: * Examines what it takes to develop a trading system, how to evaluate it from a hypothetical standpoint, and apply it in real-world forex trading situations * Covers the fundamentals of candlestick charting and explains how to utilize them * Highlights the benefits that leading price indicators like Fibonacci price corrections, extensions, and projections analysis have to offer * Introduces Elliott wave theory and illustrates how to apply this method in the forex market * Outlines three effective trading systems based on pivot points—the stochastics system, the MACD histogram system, and the pivot point moving average system—that can be immediately implemented in your forex trading endeavors * Explores essential trade and risk management issues In addition to the valuable information found throughout these pages, this book's companion CD contains a Fibonacci calculator as well as a pivot point calculator, which can assist you in developing a trading plan without having to purchase extra software. Best of all, these calculators may give you an edge in determining longer-term price objectives, such as quarterly or annual price outlooks, which most software cannot do. The CD also includes six separate tutorials totaling more than 40 minutes of one-on-one instruction. You can achieve success in today's foreign exchange market, and Forex Conquered can show you how. This practical guide will help you make the most informed trading decisions possible and show you how to profit from one of the largest financial markets in the world.
Selective Forex Trading: How to Achieve Over 100 Trades in a Row Without a Loss
Posted On at by Forex KnowledgeSelective Forex Trading skillfully outlines author Don Snellgrove’s S90/Crossover: an independently verified technical indicator that has provided traders with the ability to achieve over 100 consecutive Forex trades without a single loss. Whether you’re a seasoned professional or just getting started, this approach—which is based on historical resistance and support points within a trading range—can assist you in entering and exiting positions for the greatest profits possible. From the Inside Flap During the early days of the foreign exchange market, banks and other large financial institutions were the primary players in this field. Today, thanks in part to advances in technology, this market has quickly grown into a global electronic network of banks, financial institutions, and individual traders. With a reported volume of over $1.8 trillion changing hands every day, the time to get involved in this exciting global market has never been better. So how can you capture significant profits from the Forex market? With this reliable resource, author Don Snellgrove—an active Forex trader and educator of traders—will show you how. Written in a straightforward and accessible style, Selective Forex Trading skillfully outlines the S90/Crossover©: an independently verified technical indicator developed by Snellgrove that has provided traders with the ability to achieve over 100 consecutive Forex trades without a single loss. Whether you're a seasoned professional or just getting started, this approach—which is based on historical resistance and support points within a trading range—can assist you in entering and exiting positions for the greatest profits possible. In order to clearly understand the methodology described throughout this book—which includes the S90/Crossover as well as several other applications—you need to determine trends, resistance, support, and confirming procedures through software that utilizes ROI, RC, RCU/D, and their extensions with cluster formations for possible reversal entries. A brief explanation of each of these subjects is provided when they are initially discussed. Beyond providing hands-on guidance into using the S90/Crossover and Extreme levels, Selective Forex Trading also features specific exercises for creating and maintaining a strong mental discipline. These proven strategies will help you stay focused and committed even during the most difficult of times. The S90/Crossover and Extreme levels of the market are not the only methodologies that will allow you to increase returns and control risk, but they may be the simplest and most reliable approaches to consistently trading the foreign exchange market. Filled with in-depth insights and practical advice, Selective Forex Trading will help you enter this dynamic market with confidence and exit with profits.
Commodity Investing Maximazing Returns Through Fundamental Analysis (Ebook)
Posted On at by Forex KnowledgeCommodity Investing Maximazing Returns Through Fundamental Analysis
Straightforward and accessible, Commodity Investing balances academic-quality analysis with clear, compelling prose, and provides those interested in this fast-growing field with unparalleled investment insights. Page by page, you’ll acquire a deeper understanding of this discipline and discover how to make more informed decisions when investing in such a dynamic environment. With this book as your guide, you’ll benefit from the lessons of experienced practitioners and quickly come to grips with what it takes to make it in today’s commodity market. From the Inside Flap While commodities have been around for a long time, investors are just starting to realize their potential. But in order to achieve success in tomorrow's commodities market, you need skills and knowledge that are in short supply today. That's why Adam Dunsby and his colleagues at Cornerstone Quantitative Investment Group (CQIG)—a leading commodity trading advisor—have created Commodity Investing. Rooted in theory, but proven in practice, this detailed guide will give you the tools you need to succeed in this challenging market. Opening with a clear assessment of past commodity performance, this reliable resource puts commodity futures investing in perspective and prepares you for what should be expected along the way. With this information in hand, you'll be introduced to the commodities themselves and discover the state of their industries as well as their long-term outlook. Along with these big picture issues, you'll also become familiar with the nuts and bolts of numerous commodities—from oil, corn, and cattle to copper, coffee, and cotton—and learn how to effectively integrate them into your portfolio. Based on the hard-won experiences of authors Adam Dunsby, John Eckstein, Jess Gaspar, and Sarah Mulholland, Commodity Investing explains the various components that may prove useful in either constructing an investment strategy or in evaluating a commodity-based investment strategy. It also provides important insights on trend following strategies, anchor variables, the shape of the futures curve, and risk control methodologies such as value-at-risk and maximum drawdown. Page by page, you'll acquire a deeper understanding of this discipline, which will allow you to analyze specific commodities and strategies according to their individual characteristics and make more informed decisions when investing in this arena. Straightforward and accessible, Commodity Investing balances academic-quality analysis with clear, compelling prose, and provides those interested in this fast-growing field with unparalleled investment insights. With this book as your guide, you'll benefit from the lessons of experienced practitioners and quickly come to grips with what it takes to make it in today's commodity market.
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Timing Techniques for Commodity Futures Markets (Ebook)
Posted On at by Forex KnowledgeTiming Techniques for Commodity Futures Markets:
In just a few years, futures trading has grown from a specialized area to a major sector that is attracting pension funds, hedge funds, and other capital pools. Technological advances have led to increased globalization and around-the-clock trading, which has generated huge volumes that can be traded at minimal cost. In Timing Techniques for Commodity Futures Markets, expert stocks and futures advisor Colin Alexander explains how to make money in all market conditions. He shows you how to set up monthly and weekly charts with indicators that determine which markets may be worth trading. Then he shows daily and intraday charts tell you when to pull the trigger and get into a trade and stay until market action generates an exit signal. With Alexander's proven approach to evaluating markets, you'll learn how to avoid high-risk and marginal trades without sacrificing the high-potential ones. And, you'll see how informed applications of today's most effective indicators-including MACD, moving averages, stochastics, and Bollinger Bands-can help identify markets with the potential for extended moves. Through a focused examination of how money determines markets, Timing Techniques for Commodity Future Markets shows you how to: * Define a trend * Interpret who trades what and how much * Set stops and get out of trades * Fine-tune short-term trading Along with expert advice on such fundamental practices as building charts and reading candlestick charts, Timing Techniques for Commodity Futures Markets provides an insider's edge with rare information on the best chart patterns for all time frames, cyclical and seasonal forces and price rules for knowing when to pull the trigger on a trade. To illustrate real-time use, the Alexander includes two revealing case studies--one based on a prospective long position on gasoline and one based on a short position in copper. About the Author Colin Alexander has more than 25 years of experience in the investment industry as a publisher, trader, broker, and systems developer. Former publisher of The Five Star Futures Bulletin, a consistently ranked top ten advisory service, he is the founder of a successful stock advisory service, stockscom.com. He also is the author of several top-level trade books, including The Streetsmart Guide to Timing the Stock Market, published by McGraw-Hill, now in its second edition.
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Online Trading (Trading Currency and Stock Trading)
Posted On at by Forex KnowledgeForex Knowledge is what I say to explain all about Forex. This blog will give anything information about Forex such forex indikator, forex strategy, forex broker, forex tutorial, ebook forex, and all information about forex. So let's start increase your forex knowledge with this introduction.
What is FOREX? The Foreign Exchange market, also referred to as the "FOREX" or "Forex" or "Retail forex" or “FX” or "Spot FX" or just "Spot" is the largest financial market in the world, with a volume of over $2 trillion a day. If you compare that to the $25 billion a day volume that the New York Stock Exchange trades, you can easily see how enormous the Foreign Exchange really is. It actually eq9 P a g e uates to more than three times the total amount of the stocks and futures markets combined! Forex rocks! What is traded on the Foreign Exchange? The simple answer is money. Forex trading is the simultaneous buying of one currency and the selling of another. Currencies are traded through a broker or dealer, and are traded in pairs; for example the Euro dollar and the US dollar (EUR/USD) or the British pound and the Japanese Yen (GBP/JPY). Because you're not buying anything physical, this kind of trading can be confusing. Think of buying a currency as buying a share in a particular country. When you buy, say, Japanese Yen, you are in effect buying a share in the Japanese economy, as the price of the currency is a direct reflection of what the market thinks about the current and future health of the Japanese economy. In general, the exchange rate of a currency versus other currencies is a reflection of the condition of that country's economy, compared to the other countries' economies. Unlike other financial markets like the New York Stock Exchange, the Forex spot market has neither a physical location nor a central exchange. The Forex market is considered an Over-the-Counter (OTC) or 'Interbank' market, due to the fact that the entire market is run electronically, within a network of banks, continuously over a 24-hour period. Until the late 1990’s, only the “big guys” could play this game. The initial requirement was that you could trade only if you had about ten to fifty million bucks to start with! Forex was originally intended to be used by bankers and large institutions - and not by us “little guys”. However, because of the rise of the Internet, online Forex trading firms are now able to offer trading accounts to 'retail' traders like us. All you need to get started is a computer, a high-speed Internet connection, and the information contained within this site.
What is a Spot Market? A spot market is any market that deals in the current price of a financial instrument. Which Currencies Are Traded? The most popular currencies along with their symbols are shown below: Symbol Country Currency Nickname USD United States Dollar Buck EUR Euro members Euro Fiber JPY Japan Yen Yen GBP Great Britain Pound Cable CHF Switzerland Franc Swissy CAD Canada Dollar Loonie AUD Australia Dollar Aussie NZD New Zealand Dollar Kiwi Forex currency symbols are always three letters, where the first two letters identify the name of the country and the third letter identifies the name of that country’s currency. When Can Currencies Be Traded? The spot FX market is unique within the world markets. It’s like a Super Wal-Mart where the market is open 24-hours a day. At any time, somewhere around the world a financial center is open for business, and banks and other institutions exchange currencies every hour of the day and night with generally only minor gaps on the weekend. The foreign exchange markets follow the sun around the world, so you can trade late at night (if you’re a vampire) or in the morning (if you’re an early bird). Keep in mind though, the early bird doesn’t necessarily get the worm in this market - you might get the worm but a bigger, nastier bird of prey can sneak up and eat you too… Time Zone New York GMT Tokyo Open 7:00 pm 0:00 Tokyo Close 4:00 am 9:00 London Open 3:00 am 8:00 London Close 12:00 pm 17:00 New York Open 8:00 am 13:00 New York Close 5:00 pm 22:00 source: school of pipsology
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Use Forex Demo To Trading (Tips in Trading Currency)
Posted On at by Forex KnowledgeTip 1. Gamblers go to casino. All unproved, spontaneous actions in Forex trading — are a part of pure gambling.Any attempt to trade without analysis and studying the market is equal to a game. Game is fun except when you are losing real money...
Tip 2. Never invest money into a real Forex account until you practice on a Forex Demo account! Allow at least 2 month for demo trading. Consider this: 90% of beginners fail to succeed in the real money market only because of lack of knowledge, practice and discipline. Those remaining 10% of successful traders had been sharpening and shaping their skills on demo accounts for years before entering the real market.A good demo account to start practicing with could be.
Tip 3. Go with the trend! Trend is your friend. Trade with the trend to maximize your chances to succeed. Trading against the trend won't "kill" a trader, but will definitely require more attention, nerves and sharp skills to rich trading goals.
Tip 4. Always take a look at the time frame bigger than the one you've chosen to trade in. It gives the bigger picture of market price movements and so helps to clearly define the trend. For example, when trading in 15 minute time frame, take a look at 1 hour chart; trading hourly would require obtaining a picture of daily, weekly price movements.
If a trend is hard to spot — choose a bigger time frame. Up and down market patterns are always present. Always make sure you know the dominant trend, unless you are a scalper. Scalpers have no need to spend their time studying big trends, what's happening in the market here and now (during 5-10 minute time frame) should be of only importance to a Forex scalper.
Tip 5. Never risk more than 2-3% of the total trading account. One important difference between a successful and an unsuccessful trader is that the first is able to survive under unfavorable conditions on the market, while an unsuccessful trader will blow up his account after 5-10 unprofitable trades in the row.
Even with the same trading system 2 traders can get opposite results in the long run. The difference will be again in money management approach. To introduce you to money management, let's get one fact: losing 50% of total account requires making 100% return from the rest of money just to restore the original balance.
Tip 6. Put emotions down. Trade calm. Don't try to revenge after losing the trade. Don't be greedy by adding lots of positions when winning.Overreaction blocks clear thinking and as a result will cost you money. Overtrading can shake your money management and dramatically increase trading risks.
Tip 7. Choose the time frame that is right for you. Choosing wise means that you are comfortable and have time enough to analyze the market, place and close orders etc. Some people can't wait for hours for the price to make a move, they like action and therefore prefer smaller time frames. On the contrary, for others 10-15 minutes is a hustle to be able to make the right decision.
Tip 2. Never invest money into a real Forex account until you practice on a Forex Demo account! Allow at least 2 month for demo trading. Consider this: 90% of beginners fail to succeed in the real money market only because of lack of knowledge, practice and discipline. Those remaining 10% of successful traders had been sharpening and shaping their skills on demo accounts for years before entering the real market.A good demo account to start practicing with could be.
Tip 3. Go with the trend! Trend is your friend. Trade with the trend to maximize your chances to succeed. Trading against the trend won't "kill" a trader, but will definitely require more attention, nerves and sharp skills to rich trading goals.
Tip 4. Always take a look at the time frame bigger than the one you've chosen to trade in. It gives the bigger picture of market price movements and so helps to clearly define the trend. For example, when trading in 15 minute time frame, take a look at 1 hour chart; trading hourly would require obtaining a picture of daily, weekly price movements.
If a trend is hard to spot — choose a bigger time frame. Up and down market patterns are always present. Always make sure you know the dominant trend, unless you are a scalper. Scalpers have no need to spend their time studying big trends, what's happening in the market here and now (during 5-10 minute time frame) should be of only importance to a Forex scalper.
Tip 5. Never risk more than 2-3% of the total trading account. One important difference between a successful and an unsuccessful trader is that the first is able to survive under unfavorable conditions on the market, while an unsuccessful trader will blow up his account after 5-10 unprofitable trades in the row.
Even with the same trading system 2 traders can get opposite results in the long run. The difference will be again in money management approach. To introduce you to money management, let's get one fact: losing 50% of total account requires making 100% return from the rest of money just to restore the original balance.
Tip 6. Put emotions down. Trade calm. Don't try to revenge after losing the trade. Don't be greedy by adding lots of positions when winning.Overreaction blocks clear thinking and as a result will cost you money. Overtrading can shake your money management and dramatically increase trading risks.
Tip 7. Choose the time frame that is right for you. Choosing wise means that you are comfortable and have time enough to analyze the market, place and close orders etc. Some people can't wait for hours for the price to make a move, they like action and therefore prefer smaller time frames. On the contrary, for others 10-15 minutes is a hustle to be able to make the right decision.
Tip 8. Not trading or standing aside is a position. When in doubt — stay out. If it is not clear where the market will move — don't trade. In this case saving present capital is and absolutely better choice than risking and losing money.
Tip 9. Learn to use protective stops. Respect them and don't move.Hoping that market will turn in your direction is a very delusive hope. By moving a stop loss further a trader increases his chances to end up with much bigger loss.
When holding to a losing trade too long, and even if funds permit, traders as a rule are very reluctant to accept big losses, thus often continue "hoping for best". In the mean time invested money is stuck in the open trade for unknown period of time (weeks and even months) and cannot be used for opening new positions. Not working money — dead money. Also this will result in constant interest payments for holding open positions.
Tip 10. "Keep it simple, stupid" — applies to indicators, signals and trading strategies.Too much information will create a controversial picture of where to trade and when not to. To avoid lots of confusion create a simple but working method of trading Forex.
Tip 11. Think about risk/reward ratio before entering each trade.How much money can you lose in this trade? How much can you gain? Now, make a decision if the trade is worth entering.Example: if trader is looking for possible 35 pips gain and possible 25 pips of loss, such conditions are not worth trading. Compare it with the situation when a trader has 100-120 pips of potential gain and only 10-20 pips of possible loss. This is the trade to open!
Tip 12. Never add positions to a losing trade. Do add positions when the trade has proven to be profitable.Don't allow a couple of losing trades in a row become a snowball of losing trades. When it is obviously not a good day, turn the monitor off. Often not trading for one day can help to break a chain of consecutive losses. Trying to get revenge can often make things worse.
Tip 13. Let your profits run.Let your position be open for as long as the market wishes to reward you. Of course, for this traders need a good exit strategy, otherwise they risk to give all profits back... Running two or more open trades gives an option to close some positions earlier and keep others running for higher profits.
Tip 14. Cut your losses short.It's better to finish unprofitable trade quickly than wait for the situation to get worse. Don't put a stop loss too far — it's your money you risk. Better calculate the best spot to enter when a potential loss would be minimized. Again: respect your stop and don't move it "cherishing hopes".
Tip 15. Trade currency pairs in respect to their active market hours. Learn about overlapping market hours: when two markets are open and highest volume of trades is conducted. For example, Australian and Japanese trading sessions are overlapped from 8pm to 1 am EST. At that time trader can successfully trade AUD/JPY currency pair.
Tip 16. Choose the right day to trade. This recomendation is often wrongly taken as an optional thing, because everyone knows that Forex market is open 24 hours a day 7 days a week. Yet, choosing the time to trade can make a difference between successful and hopeless trading.
It's proved and highly recommended not to trade on Mondays, when the market has recently awaken and is making first "probation steps" to form a new or confirm a current trend; and on Fridays afternoon, during the huge volume of closing trades. The best days to trade are Tuesdays, Wednesdays and Thursdays.
Tip 17. Learn about Fibonacci levels and how to use them for trading. Fibonacci can be very helpful in trading, even partially using the study, for example, to determine the best exit, can bring traders to a new edge of trading.
Tip 18. Always ensure that a signaling bar/candle on the chart is fully formed and closed before you enter a trade. A golden rule of trading: "Always trade what you see, not what you would like to see" is the best explanation here.
Tip 19. If you ask for someone else's advice as about how and when to tradein other words, choose to rely on live trading signals from other traders, make sure you do it for your benefit, not for disaster. If you use such signals to discover how other traders do analysis and study on the price — you are on the right track and soon you'll be able to do analysis yourself.But if you're just blindly following recommendations and your only task is to push the correct button... think again.
Tip 20. Using a highly leveraged account comes at a cost. It will, of course, give a trader more financial gear to trade, and also trader's broker will be happy as it will mean higher spread income for him. On the other side a trader signs up for additional risks that multiply with higher leverage in a "friendly tight" proportion.
Tip 21. Learn to measure trading success by the end of the day, week and then month and year. Do not judge about your trading success on a single trade. To be successful traders don't need to win every trade, they also don't become rich in one trade — they need to be profitable in a long run.
Tip 22. There is no such thing as a secret approach to understanding the market. Take the time to develop a solid trading system and find out that the secret to trading success lies in hard work and constant learning.
Tip 9. Learn to use protective stops. Respect them and don't move.Hoping that market will turn in your direction is a very delusive hope. By moving a stop loss further a trader increases his chances to end up with much bigger loss.
When holding to a losing trade too long, and even if funds permit, traders as a rule are very reluctant to accept big losses, thus often continue "hoping for best". In the mean time invested money is stuck in the open trade for unknown period of time (weeks and even months) and cannot be used for opening new positions. Not working money — dead money. Also this will result in constant interest payments for holding open positions.
Tip 10. "Keep it simple, stupid" — applies to indicators, signals and trading strategies.Too much information will create a controversial picture of where to trade and when not to. To avoid lots of confusion create a simple but working method of trading Forex.
Tip 11. Think about risk/reward ratio before entering each trade.How much money can you lose in this trade? How much can you gain? Now, make a decision if the trade is worth entering.Example: if trader is looking for possible 35 pips gain and possible 25 pips of loss, such conditions are not worth trading. Compare it with the situation when a trader has 100-120 pips of potential gain and only 10-20 pips of possible loss. This is the trade to open!
Tip 12. Never add positions to a losing trade. Do add positions when the trade has proven to be profitable.Don't allow a couple of losing trades in a row become a snowball of losing trades. When it is obviously not a good day, turn the monitor off. Often not trading for one day can help to break a chain of consecutive losses. Trying to get revenge can often make things worse.
Tip 13. Let your profits run.Let your position be open for as long as the market wishes to reward you. Of course, for this traders need a good exit strategy, otherwise they risk to give all profits back... Running two or more open trades gives an option to close some positions earlier and keep others running for higher profits.
Tip 14. Cut your losses short.It's better to finish unprofitable trade quickly than wait for the situation to get worse. Don't put a stop loss too far — it's your money you risk. Better calculate the best spot to enter when a potential loss would be minimized. Again: respect your stop and don't move it "cherishing hopes".
Tip 15. Trade currency pairs in respect to their active market hours. Learn about overlapping market hours: when two markets are open and highest volume of trades is conducted. For example, Australian and Japanese trading sessions are overlapped from 8pm to 1 am EST. At that time trader can successfully trade AUD/JPY currency pair.
Tip 16. Choose the right day to trade. This recomendation is often wrongly taken as an optional thing, because everyone knows that Forex market is open 24 hours a day 7 days a week. Yet, choosing the time to trade can make a difference between successful and hopeless trading.
It's proved and highly recommended not to trade on Mondays, when the market has recently awaken and is making first "probation steps" to form a new or confirm a current trend; and on Fridays afternoon, during the huge volume of closing trades. The best days to trade are Tuesdays, Wednesdays and Thursdays.
Tip 17. Learn about Fibonacci levels and how to use them for trading. Fibonacci can be very helpful in trading, even partially using the study, for example, to determine the best exit, can bring traders to a new edge of trading.
Tip 18. Always ensure that a signaling bar/candle on the chart is fully formed and closed before you enter a trade. A golden rule of trading: "Always trade what you see, not what you would like to see" is the best explanation here.
Tip 19. If you ask for someone else's advice as about how and when to tradein other words, choose to rely on live trading signals from other traders, make sure you do it for your benefit, not for disaster. If you use such signals to discover how other traders do analysis and study on the price — you are on the right track and soon you'll be able to do analysis yourself.But if you're just blindly following recommendations and your only task is to push the correct button... think again.
Tip 20. Using a highly leveraged account comes at a cost. It will, of course, give a trader more financial gear to trade, and also trader's broker will be happy as it will mean higher spread income for him. On the other side a trader signs up for additional risks that multiply with higher leverage in a "friendly tight" proportion.
Tip 21. Learn to measure trading success by the end of the day, week and then month and year. Do not judge about your trading success on a single trade. To be successful traders don't need to win every trade, they also don't become rich in one trade — they need to be profitable in a long run.
Tip 22. There is no such thing as a secret approach to understanding the market. Take the time to develop a solid trading system and find out that the secret to trading success lies in hard work and constant learning.
source: forex tips
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Stock Patterns for Day Trading by Barry Rudd (Ebook)
Posted On at by Forex KnowledgeStock Patterns for Day Trading by Barry Rudd
This book describes the trading strategies used by a professional stock trader in his own trading. The ideas come both from friends who are successful traders as well as his own experience with SOES trading. The collection of trading patterns described represents one of the first full-fledged books of instruction on short term, swing and day trading in individual stocks.
The author's intraday trend trading approach and his scalping method are both described in detail. He uses the setups daily in his own trading. This manual should prove valuable to the thousands of short term stock traders who seek to make their living from speculating on short term price swings. It is a toolbox for finding high probability trades for success as you trade the stock market. The technical ideas are primarily crafted around the personality of the NASDAQ market but may also be implemented in New York trades.
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This book describes the trading strategies used by a professional stock trader in his own trading. The ideas come both from friends who are successful traders as well as his own experience with SOES trading. The collection of trading patterns described represents one of the first full-fledged books of instruction on short term, swing and day trading in individual stocks.
The author's intraday trend trading approach and his scalping method are both described in detail. He uses the setups daily in his own trading. This manual should prove valuable to the thousands of short term stock traders who seek to make their living from speculating on short term price swings. It is a toolbox for finding high probability trades for success as you trade the stock market. The technical ideas are primarily crafted around the personality of the NASDAQ market but may also be implemented in New York trades.
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Hot Trading Secrets (Ebook)
Posted On at by Forex KnowledgeHot Trading Secrets
Master the market for maximum profits with HOT TRADING SECRETS Playing the trading game takes audacious confidence, but winning takes more. It's about making chances instead of taking chances. As founder of the remarkably successful Taipan Group-a team of independent financial analysts-author J. Christoph Amberger knows: ""There is always an opportunity to make exceptional stock market profits . . . as long as you know how to read the signs."" In Hot Trading Secrets,
Amberger gives you a blueprint for making big money in any financial climate. He will teach you: How to trade on ""insider information"" legally and profitably The secret strategies of CBOE floor traders How to profit from the ""Red Zones"" How to become a stone-cold profit predator In a simple step-by-step presentation, Amberger will liberate you from restrictive conventional fallacies. Using Hot Trading Secrets as your guide, you will learn to exploit volatile market events to achieve consistent profits-whether the market is up or down.
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Master the market for maximum profits with HOT TRADING SECRETS Playing the trading game takes audacious confidence, but winning takes more. It's about making chances instead of taking chances. As founder of the remarkably successful Taipan Group-a team of independent financial analysts-author J. Christoph Amberger knows: ""There is always an opportunity to make exceptional stock market profits . . . as long as you know how to read the signs."" In Hot Trading Secrets,
Amberger gives you a blueprint for making big money in any financial climate. He will teach you: How to trade on ""insider information"" legally and profitably The secret strategies of CBOE floor traders How to profit from the ""Red Zones"" How to become a stone-cold profit predator In a simple step-by-step presentation, Amberger will liberate you from restrictive conventional fallacies. Using Hot Trading Secrets as your guide, you will learn to exploit volatile market events to achieve consistent profits-whether the market is up or down.
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Fibonacci
Posted On at by Forex KnowledgeWe owe a debt of gratitude to the Italian mathematician Leonardo Pisano (1170-1250) Best known by his nickname, Fibonacci (he also went by "Bigollo," which may have meant "wandering good-fornothing"), he wrote the famous book, Liber abaci(1202). In it, he introduced to Europe the HinduArabic place-valued decimal system and Arabic. He also discussed mathematical problems that resulted in what we now call the Fibonacci summation sequence and the ratios derived from it. Here's one of the most important problems Pisano posed, and the result. Although the question sounds lighthearted, the answer has produced serious resolutions. "If one places a rabbit couple in an enclosed place, how many rabbits would one obtain after a certain time assuming they reproduce once per month, and that those born can reproduce at the age of a month?" The following infinite progression (now called Fibonacci numbers), results: 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, and 144, after each month. You'll notice that Fibonacci numbers run in a sequence. Each successive number equals the sum of the two previous numbers: 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, and so forth. The interrelationships between these numbers are intriguing. First, starting with the number five, any of these numbers equals approximately 1.618 times the preceding number. Second, any number equals approximately 0.618 times the subsequent number. Cool, huh? It's remarkable that so many objects formed in Fibonacci proportions occur throughout nature, including butterflies, sea shells, and spiral galaxies. The pentagram, Christian crucifix, and Pythagorean triangles also contain these proportions, as well as the art pieces of Leonardo da Vinci and Michelangelo. The four popular Fibonacci studies used by traders include arcs, fans, retracements, and time zones. Most charting software programs include Fibonacci retracements. Some of the more advanced programs utilize arcs, fans, and time zones. For now, we'll look at retracements.
What you need to know about Fibonacci retracements: Slocks.·often
Fibonacci ratios are gauged at 38.2 percent, 50.0 percent, and 61.8 percent, and are considered a leading indicator (predicting possible future price action).
Your job is to draw an uptrend (or downtrend) line, connecting a major peak and trough. Then, activate your charting software's Fibonacci retracement option. Start at the bottom of the trendline and drag your cursor to the top of the trend. (Fancy charting programs will include a 23.6 percent line.) You'll see five horizontal lines, representing 0.0 percent, then 38.2, 50, 61.8, and 100 percent of the entire move, or trend.
These levels act as support and resistance areas.
Since so many traders use Fibonacci retracement levels for guidance, some support/resistance action may be a self fulfilling prophecy. Still, it's positively uncanny how many times a stock in an uptrend will pull back to a Fibonacci level, then bounce. Or, a stock in a downtrend will rebound to a Fibonacci level, and then begin its fall anew. Some traders use "Fib ratios" by placing their stop-loss points a quarter-point below a stock's 61.8 percent retracement level from the previous high. Remember, though, that no indicator in this world predicts future price movement with absolute accuracy. Just because your stock happens to be heading for a Fibonacci retracement level is no guarantee it's going to halt there and bounce. It could just as easily slice right through it. Indicators-no matter what flavor-are just that. They indicate. Please don't use them as an excuse to stay in a losing position!
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What you need to know about Fibonacci retracements: Slocks.·often
Fibonacci ratios are gauged at 38.2 percent, 50.0 percent, and 61.8 percent, and are considered a leading indicator (predicting possible future price action).
Your job is to draw an uptrend (or downtrend) line, connecting a major peak and trough. Then, activate your charting software's Fibonacci retracement option. Start at the bottom of the trendline and drag your cursor to the top of the trend. (Fancy charting programs will include a 23.6 percent line.) You'll see five horizontal lines, representing 0.0 percent, then 38.2, 50, 61.8, and 100 percent of the entire move, or trend.
These levels act as support and resistance areas.
Since so many traders use Fibonacci retracement levels for guidance, some support/resistance action may be a self fulfilling prophecy. Still, it's positively uncanny how many times a stock in an uptrend will pull back to a Fibonacci level, then bounce. Or, a stock in a downtrend will rebound to a Fibonacci level, and then begin its fall anew. Some traders use "Fib ratios" by placing their stop-loss points a quarter-point below a stock's 61.8 percent retracement level from the previous high. Remember, though, that no indicator in this world predicts future price movement with absolute accuracy. Just because your stock happens to be heading for a Fibonacci retracement level is no guarantee it's going to halt there and bounce. It could just as easily slice right through it. Indicators-no matter what flavor-are just that. They indicate. Please don't use them as an excuse to stay in a losing position!
Stochastic Oscillator
Posted On at by Forex KnowledgeTraders sometimes refer to the Stochastic (pronounced sto kas tik) Oscillator, as "Stochastics," because it employs two lines to give a single signal. An overbought/oversold indicator developed by Dr.. George Lane, the Stochastic Oscillator compares where a stock's price closed at to its price range over a specific period of time. The driving principle: as a price rises in an uptrend, the closing price moves to the upper end of the recent price range. In a downtrend, closing prices usually sink to the b,ottom of the range. We won't study the actual calculation here. And believe me, if you ever see it, you'll be glad we didn't! Again, the Stochastic Oscillator is displayed in two lines. The major line is called the "%K." The second line is referred to as the "%D," and is a 3-day moving average of the %K. Many times you'll see the % K as a solid line and the % D as a dotted line. Stochastics come in two flavors-fast Stochastics,and slow Stochastics. The one described in the previous paragraph is fast Stochastics. In slow Stochastics, the slow %K equals the fast %D, with the slow %D equaling
a 3-day average of the fast %D.
Got that? If not, cheer up. Your charting software understands the equations needed to calculate the display. For the record, I prefer the fast Stochastics, although slow Stochastics has a smoother look. In tandem, the %K and %D lines rise and fall between zero and 100. Readings above 80 are considered overbought, and readings below 20 are oversold. The Stochastics buy/sell signal is as follows:
Buy-when the lines are below 20, and the faster %K line crosses above the slower %D line. (Watch out for short-term crossovers. Use indicators to confrrm the reversal.)
Sell-when the lines are above 80, and the %K crosses the %D to the downside.
Look for divergences, just as you do with the RSI. An example: Bossy Bank makes a new high. At the same time, the Stochastics moves sideways or hooks to the downside. That's called a "bearish divergence." Assume the price will soon follow the Stochastics south. Or, while Bossy Bank experiences a normal consolidation period in an uptrend, the Stochastic suddenly hooks up. Referred to as a "bullish divergence," it tells you to prepare for a continuation of Bossy Bank's uptrend within the next few time periods.
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a 3-day average of the fast %D.
Got that? If not, cheer up. Your charting software understands the equations needed to calculate the display. For the record, I prefer the fast Stochastics, although slow Stochastics has a smoother look. In tandem, the %K and %D lines rise and fall between zero and 100. Readings above 80 are considered overbought, and readings below 20 are oversold. The Stochastics buy/sell signal is as follows:
Buy-when the lines are below 20, and the faster %K line crosses above the slower %D line. (Watch out for short-term crossovers. Use indicators to confrrm the reversal.)
Sell-when the lines are above 80, and the %K crosses the %D to the downside.
Look for divergences, just as you do with the RSI. An example: Bossy Bank makes a new high. At the same time, the Stochastics moves sideways or hooks to the downside. That's called a "bearish divergence." Assume the price will soon follow the Stochastics south. Or, while Bossy Bank experiences a normal consolidation period in an uptrend, the Stochastic suddenly hooks up. Referred to as a "bullish divergence," it tells you to prepare for a continuation of Bossy Bank's uptrend within the next few time periods.
Relative Strength Index
Posted On at by Forex KnowledgeThe RSI, or Relative Strength Index, is a misleading moniker for this reliable oscillator. When we speak of an equity's relative strength, many times we refer to its health as it relates to a broad market index such as the S&P 500, or the industry index where the stock resides, like the semiconductor index ($SOX.X) or the pharmaceutical index ($DRG.X).
The RSI does not compare two separate entities. Introduced by Welles Wilder in the June 1978 issue of Commodities (now Futures) magazine, and in his book published in the same year, New Concepts in Technical Trading Systems, the RSI operates as an oscillator that measures a particular stock's current relative strength as compared to its'own price history. When Wilder first introduced the RSI, he recommended using a 14-day time period. Now, 9-day and 25day RSIs are also favorites. The RSI is one of my preferred oscillators, and we're going to use it in our buying criteria. For multi-day to multiweek holds, the 14-day parameter works well (and is standard in most charting software). So, please stick to that time parameter for now. As you gain more experience, you may want to tweak the setting to a faster, or slower, time period.
As a price-following oscillator, the RSI is plotted on a vertical scale numbered from 1 to 100. It's considered to be oversold when it falls below 25, and overbought when it rises over 75.
Dandy features of the RSI are:
The RSI forms chart patterns, such as a double top or head-and-shoulders, which may not show up in the stock's price pattern.
The RSI may indicate support and resistance levels more clearly than the stock's price pattern.
The RSI makes a fantastic buy/sell decision support tool when it diverges from the stock's price action. For example, the stock may make a new high, but the RSI does not. That's bearish. Or, the price may tumble to a new low, while the RSI moves sideways or up. That's bullish. Prices usually follow the direction taken by the RSI.
To incorporate the RSI into your buy/sell criteria, you'll add it to the signals we already have in place, meaning the 1-2-3 entries, strong volume on the breakout, and price bouncing off a major moving average (such as the 20-day, 40-day, or 50day MAs). Now add the RSI. When you enter a position, you want it to appear in one of these ways:
Oversold, and hooking up from below 30.
Hooking up from below 50 and in an uptrend (making higher lows and higher highs).
Making a bullish divergence by rising when the stock price is consolidating, or pulling back, in the course of an uptrend.
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The RSI does not compare two separate entities. Introduced by Welles Wilder in the June 1978 issue of Commodities (now Futures) magazine, and in his book published in the same year, New Concepts in Technical Trading Systems, the RSI operates as an oscillator that measures a particular stock's current relative strength as compared to its'own price history. When Wilder first introduced the RSI, he recommended using a 14-day time period. Now, 9-day and 25day RSIs are also favorites. The RSI is one of my preferred oscillators, and we're going to use it in our buying criteria. For multi-day to multiweek holds, the 14-day parameter works well (and is standard in most charting software). So, please stick to that time parameter for now. As you gain more experience, you may want to tweak the setting to a faster, or slower, time period.
As a price-following oscillator, the RSI is plotted on a vertical scale numbered from 1 to 100. It's considered to be oversold when it falls below 25, and overbought when it rises over 75.
Dandy features of the RSI are:
The RSI forms chart patterns, such as a double top or head-and-shoulders, which may not show up in the stock's price pattern.
The RSI may indicate support and resistance levels more clearly than the stock's price pattern.
The RSI makes a fantastic buy/sell decision support tool when it diverges from the stock's price action. For example, the stock may make a new high, but the RSI does not. That's bearish. Or, the price may tumble to a new low, while the RSI moves sideways or up. That's bullish. Prices usually follow the direction taken by the RSI.
To incorporate the RSI into your buy/sell criteria, you'll add it to the signals we already have in place, meaning the 1-2-3 entries, strong volume on the breakout, and price bouncing off a major moving average (such as the 20-day, 40-day, or 50day MAs). Now add the RSI. When you enter a position, you want it to appear in one of these ways:
Oversold, and hooking up from below 30.
Hooking up from below 50 and in an uptrend (making higher lows and higher highs).
Making a bullish divergence by rising when the stock price is consolidating, or pulling back, in the course of an uptrend.
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Exponential Moving Average (EMA) Indicator
Posted On at by Forex KnowledgeAlthough the simple moving average is a great tool, there is one major flaw associated with it. Simple moving averages are very susceptible to spikes. Exponential moving averages (EMA) give more weight to the most recent periods.
Read More..SMA Indicator
Posted On at by Forex KnowledgeA simple moving average is the simplest type of moving average (DUH!). Basically, a simple moving average is calculated by adding up the last “X” period’s closing prices and then dividing that number by X. If you plotted a 5 period simple moving average on a 1 hour chart, you would add up the closing prices for the last 5 hours, and then divide that number by 5. If you were to plot a 5 period simple moving average on a 10 minute chart, you would add up the closing prices of the last 50 minutes and then divide that number by 5. If you were to plot a 5 period simple moving average on a 30 minute chart, you would add up the closing prices of the last 150 minutes and then divide that number by 5. If you were to plot the 5 period simple moving average on the a 4 hr. Most charting packages will do all the calculations for you. The reason we just bored you with how to calculate a simple moving average is because it is important that you understand how the moving averages are calculated. If you understand how each moving average is calculated, you can make your own decision as to which type is better for you.Just like any indicator out there, moving averages operate with a delay. Because you are taking the averages of the price, you are really only seeing a “forecast” of the future price and not a concrete view of the future.
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ebook: Profiting with Forex
Posted On at by Forex KnowledgeBook Description Profiting with Forex introduces investors to all the advantages of the global foreign exchange market and shows them how to capitalize on it. Readers will learn why forex is the perfect supplement to stock and bond investing; why it is unrivaled in terms of protection, profit potential, and ease of use; and how it can generate profits, whether the other markets are up of down. Written by two leading forex experts, this complete investing resource uses basic economic principles, solid technical analysis, and lots of common sense to develop an arsenal of tools and techniques that will lead to winning results in the lucrative foreign exchange marketplace. Profiting with Forex includes everything that investors need to know about: # The many advantages of the forex market: huge market size, ease of entry, profit potential, tax incentives, 24-hour trading, no commissions, increased leverage, and guaranteed stops # The basic terms of forex trading: definitions of important concepts, including "pip," "currency pair," "contract" or "lot," and more # Genesis and growth of the forex market: how the forex market emerged out of a changing global financial landscape and continues to changes and adapt with that same volatile landscape # Fundamental factors that shape the Forex market: the U.S. government, inflation, the U.S. stock market, China and other emerging markets, oil, and breaking news # Fundamental tools for tracking Forex market changes: interest rates, Treasury International Capital Data, Consumer Price Index, S&P 500, U.S. dollar vs. Chinese yuan, balance of trade, crude oil futures, and news media # Technical analysis tools and indicators for gauging market sentiment: moving averages, oscillating indicators such as, stochastics, Commodity Channel Index, Relative Strength Index, Fibonacci analysis, and others Filled with over 150 illustrations and figures, Profiting with Forex also shows investors how to combine their newly acquired knowledge of Forex fundamentals with proven trading techniques that can generate great rewards in the market.
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Candle Stick ebook
Posted On at by Forex KnowledgeCandle stick ebook click here and ebook by Greg Morris - Candlestick Charting Explained here to download.
All ebook in this site I get free from some forum, and you can get free too.
What to look for in an online Forex broker/dealer
Posted On at by Forex KnowledgeWhat to look for in an online Forex broker/dealer:
1. Low Spreads.
In Forex trading the ‘spread’ is the difference between the buy and sell price of any given currency pair. Lower spreads save you money.
2. Low minimum account openings.
For those that are new to Forex trading and for those that don’t have millions of dollars in risk capital to trade, being able to open a micro trading account with only $250 (we recommend at least $1,000) is a great feature for new traders.
3. Instant automatic execution of your orders.
This is very important when choosing a Forex broker. Don’t settle with a firm that re-quotes you when you click on a price or a firm that allows for price ‘slippage’. This is very important when trading for small profits. You want what we call a WYSIWYG (pronounced wiz-ee-wig) broker! This means you want instant execution of your orders and the price you see and "click" is the price that you should get...WYSIWYG = What You See Is What You Get!
4. Free charting and technical analysis
Choose a broker that gives you access to the best charting and technical analysis available to active traders. Look for a broker that provides free professional charting services and allows traders to trade directly on the charts.
5. LeverageLeverage can either make you super rich or super broke. Most likely, it will be the latter. As an inexperienced trader, you don't want too much leverage. A good rule of thumb is to not use more than 100:1 leverage for Standard (100k) accounts and 200:1 for Mini (10k) accounts.
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1. Low Spreads.
In Forex trading the ‘spread’ is the difference between the buy and sell price of any given currency pair. Lower spreads save you money.
2. Low minimum account openings.
For those that are new to Forex trading and for those that don’t have millions of dollars in risk capital to trade, being able to open a micro trading account with only $250 (we recommend at least $1,000) is a great feature for new traders.
3. Instant automatic execution of your orders.
This is very important when choosing a Forex broker. Don’t settle with a firm that re-quotes you when you click on a price or a firm that allows for price ‘slippage’. This is very important when trading for small profits. You want what we call a WYSIWYG (pronounced wiz-ee-wig) broker! This means you want instant execution of your orders and the price you see and "click" is the price that you should get...WYSIWYG = What You See Is What You Get!
4. Free charting and technical analysis
Choose a broker that gives you access to the best charting and technical analysis available to active traders. Look for a broker that provides free professional charting services and allows traders to trade directly on the charts.
5. LeverageLeverage can either make you super rich or super broke. Most likely, it will be the latter. As an inexperienced trader, you don't want too much leverage. A good rule of thumb is to not use more than 100:1 leverage for Standard (100k) accounts and 200:1 for Mini (10k) accounts.
The Factor to choose Forex Broker
Posted On at by Forex KnowledgeBefore selecting an online Forex broker, you should closely examine their features and
policies. These include:
• Available Currency Pairs
You should confirm that the prospective broker offers, at minimum, the seven major currencies (AUD, CAD, CHF, EUR, GBP, JPY, and USD).
• Transaction Costs
Transaction costs are calculated in pips. The lower the number of pips required per trade by the broker, the greater the profit that the trader makes. Comparing pip spreads of half dozen brokers will reveal different transaction costs. For example, the bid/ask spread for EUR/USD is usually 3 pips, but if you can find 2 pips, that’s even better.
• Margin Requirement
The lower the margin requirement (meaning the higher the leverage), the greater the potential for higher profits and losses. Margin percentages vary from .25% and up. Low margin requirements are great when your trades are good, but not so great when you are wrong. Be realistic about margins and remember that they swing both ways.
• Minimum Trading Size Requirement
The size of one lot may differ from broker to broker, spanning 1,000, 10,000, and 100,000 units. A lot consisting of 100,000 units is called a “standard” lot. A lot consisting of 10,000 units is called a “mini” lot. A lot consisting of 1,000 units is called a “micro” lot. Some brokers even offer fractional unit sizes (called odd lots) which allow you create your own unit size.
• Rollover Charges
Rollover charges are determined by the difference between the interest rate of the country of the base currency and the interest rates of the other country. The greater the interest rate differential between the two currencies in the currency pair, the greater the rollover charge will be. For example, when trading GBP/USD, if the British pound has the greater interest differential with the U.S. dollar, then the rollover charge for holding British pound positions would be the most expensive. On the other hand, if the Swiss Franc were to have the smallest interest differential to the U.S. dollar, then overnight charges for USD/CHF would be the least expensive of the currency pairs.
• Margin Account Interest Rate
Most brokers pay interest on a trader’s margin account. The interest rates normally fluctuate with the prevailing national rates. If you decide to take an extended break from trading, the money in your margin account will be accruing interest. Keep in mind that most brokers DO NOT allow you to accrue interest unless your margin requirement is at least 2% (50:1).
• Trading Hours
Nearly all brokers align their hours of operation to coincide with the hours of operation of the global Forex market: 5:00 pm EST Sunday through 4:00 pm EST Friday.
Other Policies
Be sure to scrutinize a prospective broker’s “fine print” section to be fully aware of all the nuances that a specific broker may impose on a new trader. Finding the right broker is a critical part of the process. It’s not easy and requires some real work on your part. Don’t pick the first one that looks good to you. Keep looking and trying different demo accounts.
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How To Make Forex Order
Posted On at by Forex KnowledgeThere are some basic order types that all brokers provide and some others that sound
weird. The basic ones are:
• Market order
A market order is an order to buy or sell at the current market price. For example,EUR/USD is currently trading at 1.2140. If you wanted to buy at this exact price, you would click buy and your trading platform would instantly execute a buy order at that exact price. If you ever shop on Amazon.com, it's (kinda) like using their 1-Click ordering. You like thecurrent price, you click once and it's yours! The only difference is you are buying or selling one currency against another currency instead of buying Britney Spears CDs.
• Limit order
A limit order is an order placed to buy or sell at a certain price. The order essentially contains two variables, price and duration. For example, EUR/USD is currently trading at 1.2050. You want to go long if the price reaches 1.2070. You can either sit in front of your monitor and wait for it to hit 1.2070 (at which point you would click a buy market order), or you can set a buy limit order at 1.2070 (then you could walk away from your computer to attend your ballroom dancing class). If the price goes up to 1.2070, your trading platform will automatically execute a buy order at that exact price. You specify the price atwhich you wish to buy/sell a certain currency pair and also specify how long you want the order to remain active (GTC or GFD).
• Stop-loss order
A stop-loss order is a limit order linked to an open trade for the purpose of preventing additional losses if price goes against you. A stop-loss order remains in effect until the position is liquidated or you cancel the stop-loss order. For example, you went long (buy) EUR/USD at 1.2230. To limit your maximum loss, you set a stop-loss order at 1.2200. This means if you were dead wrong and EUR/USD drops to 1.2200 instead of moving up, your trading platform would automatically execute a sell order at 1.2200 and close out your position for a 30 pip loss (eww!). Stop-losses are extremely useful if you don't want to sit in front of your monitor all day worried that you will lose all your money. You can simply set a stop-loss order on any open positions so you won't miss your basket weaving class.
• GTC (Good ‘til canceled)
A GTC order remains active in the market until you decide to cancel it. Your broker will not cancel the order at any time. Therefore it's your responsibility to remember that you have the order scheduled.
• GFD (Good for the day)
A GFD order remains active in the market until the end of the trading day. Because foreign exchange is a 24-hour market, this usually means 5pm EST since that that's U.S. markets close, but I’d recommend you double check with your broker.
• OCO (Order cancels other)
An OCO order is a mixture of two limit and/or stop-loss orders. Two orders with price and duration variables are placed above and below the current price. When one of the orders is executed the other order is canceled. Example: The price of EUR/USD is 1.2040. You want to either buy at 1.2095 over the resistance level in anticipation of a breakout or initiate a selling position if the price falls below 1.1985. The understanding is that if 1.2095 is reached, you will buy order will be triggered and the 1.1985 sell order will be automatically canceled.
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weird. The basic ones are:
• Market order
A market order is an order to buy or sell at the current market price. For example,EUR/USD is currently trading at 1.2140. If you wanted to buy at this exact price, you would click buy and your trading platform would instantly execute a buy order at that exact price. If you ever shop on Amazon.com, it's (kinda) like using their 1-Click ordering. You like thecurrent price, you click once and it's yours! The only difference is you are buying or selling one currency against another currency instead of buying Britney Spears CDs.
• Limit order
A limit order is an order placed to buy or sell at a certain price. The order essentially contains two variables, price and duration. For example, EUR/USD is currently trading at 1.2050. You want to go long if the price reaches 1.2070. You can either sit in front of your monitor and wait for it to hit 1.2070 (at which point you would click a buy market order), or you can set a buy limit order at 1.2070 (then you could walk away from your computer to attend your ballroom dancing class). If the price goes up to 1.2070, your trading platform will automatically execute a buy order at that exact price. You specify the price atwhich you wish to buy/sell a certain currency pair and also specify how long you want the order to remain active (GTC or GFD).
• Stop-loss order
A stop-loss order is a limit order linked to an open trade for the purpose of preventing additional losses if price goes against you. A stop-loss order remains in effect until the position is liquidated or you cancel the stop-loss order. For example, you went long (buy) EUR/USD at 1.2230. To limit your maximum loss, you set a stop-loss order at 1.2200. This means if you were dead wrong and EUR/USD drops to 1.2200 instead of moving up, your trading platform would automatically execute a sell order at 1.2200 and close out your position for a 30 pip loss (eww!). Stop-losses are extremely useful if you don't want to sit in front of your monitor all day worried that you will lose all your money. You can simply set a stop-loss order on any open positions so you won't miss your basket weaving class.
• GTC (Good ‘til canceled)
A GTC order remains active in the market until you decide to cancel it. Your broker will not cancel the order at any time. Therefore it's your responsibility to remember that you have the order scheduled.
• GFD (Good for the day)
A GFD order remains active in the market until the end of the trading day. Because foreign exchange is a 24-hour market, this usually means 5pm EST since that that's U.S. markets close, but I’d recommend you double check with your broker.
• OCO (Order cancels other)
An OCO order is a mixture of two limit and/or stop-loss orders. Two orders with price and duration variables are placed above and below the current price. When one of the orders is executed the other order is canceled. Example: The price of EUR/USD is 1.2040. You want to either buy at 1.2095 over the resistance level in anticipation of a breakout or initiate a selling position if the price falls below 1.1985. The understanding is that if 1.2095 is reached, you will buy order will be triggered and the 1.1985 sell order will be automatically canceled.
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