You need money to live a comfortable life. You need money to provide education to your children. And, you need money to eat. This is why you work, this is why people put up businesses, and this is why people go to great lengths to make money. One great money-making career that you should consider is trading in the largest financial market in the world. Not only is Forex or Foreign Exchange the world’s largest financial market, it is also the most liquid market in the world that operates 24 hours a day.
With trade exchanges that generates up to 2 trillion dollars a day, who wouldn’t get attracted to trade in this very liquid market? If you are a regular person with a regular job who is looking for a way to earn extra money, you can consider entering the Forex market and trade.
However, Forex also has its risks and people who have traded in Forex without the proper knowledge and skill lost large amounts of money, and some have suffered extreme financial losses. This is why it is necessary for you to have enough knowledge and skills when you trade in the Forex market. Today, there is a software available for you to use that can really make it easier for you to trade in the Forex market and earn that extra money you want. This software is often called the Forex trading robot.
Normally, Forex trading robots are accessed in the internet. It is very much like hiring a Forex broker but instead of a broker being human it would be in a form of a program. Since Forex trading robots don’t sleep, this software can run 24 hours a day and therefore, giving you the advantage of not missing any money making opportunities when the Forex market changes. Just imagine, it is now possible for you to trade in the Forex market like a professional. And, you can trade 24 hours a day. With this benefit, you will never miss another potentially profitable day in the Forex market. Also, you can even do this while you’re at work.
All these are possible through the use of a Forex trading robot. However, before you subscribe to a Forex trading robot, you have to first determine if the software can really work to your advantage. You have to determine if the Forex trading robot can really trade effectively and efficiently. You should also look for advanced trading features that the Forex trading robot can offer you. Here are a few of the features you should look for in a Forex trading robot:
• 24 hour a day operation – You want this feature in a Forex trading robot so you will never miss a money making opportunity.
• Minimum investment requirements – Investments in a Forex trading robot should be minimal in order for you to afford.
• Trading automation technology – Since your money is at risk, you should choose a Forex trading robot with the latest trading technology existing in the market today.
These are some of the things you should look for in a Forex trading robot. With these features, you can be sure that you can really earn money. Forex trading robots are perfect for people who wants to get involved in the Forex market but don’t have the proper knowledge and skills to trade currencies.
It is also great for people who are afraid to invest their money in Forex. You can also benefit from a Forex trading robot if you want to concentrate on your day job and still earn cash in the Forex market. Investing in the Forex market is one of the best ways to earn that extra cash you need. However, you should always remember that in Forex, you need to invest money to earn money. Also, you should also be able to afford to lose the money you invest in Forex.
Always remember that Forex, although a great money-maker for lots of people, also has equal risks that may cause you to lose money. With a Forex robot, you will be able to minimize the risk of losing money and increase you chances on earning potential 24 hours a day. With a Forex trading robot, you will never miss another trading day at the Forex market and take advantage of great market trends.
Showing posts with label trade. Show all posts
Showing posts with label trade. Show all posts
2.12.11
How to Trade the Forex Weekend Gaps
Trading the weekend foreign exchange gap is an easy-to-implement and potentially profitable strategy. The foreign exchange market, sometimes referred to as FOREX, is open 24 hours a day, Monday through Friday, providing a continuous market except on the weekends. A gap occurs in the FOREX market when the opening exchange rate for the new trading week differs significantly from the closing exchange rate achieved during the previous Friday's trading session. Traders profit from this weekend gap by anticipating that the new week's opening exchange rate will trade back toward Friday's closing exchange rate during the trading session.
Instructions: Risk capital
1) Choose the currency pair you want to trade. Although there are many different currency pairs traded every day, the most actively traded currency pairs traded today are the euro-dollar (symbol EUR/USD), the dollar-yen (symbol USD/JPY) and the pound-dollar (symbol GPB/USD). If you are new to FOREX, you may want to start out trading the euro-dollar pair, as it is the most liquid, and therefore less volatile than other pairs.
2) Identify the currency pair's closing exchange rate set on Friday. The closing exchange rate for the gap strategy is the closing exchange rate achieved on Friday at 5:00PM EST. For example, if the EUR/USD closed at 1.3800 on Friday at 5:00PM EST you would record this information and compare it to the following week's opening exchange rate, to be set on Sunday evening when the Asian market opens at 7:00PM EST.
3) Determine the percentage size of the gap. For example, you may want your gap to be greater than or equal to one percent, half a percent, or even a quarter of a percent. Assume you had chosen one percent. In this case you would want to verify if Sunday night's Asia opening exchange rate is off by one percent or more from where the exchange rate closed on Friday at 5:00PM EST.
4) Initiate a trade if the gap is greater than or equal to your predetermined criteria. For example, if you are using a one-percent gap criterion in the EUR/USD, then you would buy the currency pair if the exchange rate opened the week one percent or more below where it closed on Friday. If the EUR/USD currency pair opened the week one percent or more above where it closed on Friday, you would sell the currency pair.
5) Close out your trade once the gap has been closed or if the gap continues to widen beyond your initial criterion.
Source - eHow
Instructions: Risk capital
1) Choose the currency pair you want to trade. Although there are many different currency pairs traded every day, the most actively traded currency pairs traded today are the euro-dollar (symbol EUR/USD), the dollar-yen (symbol USD/JPY) and the pound-dollar (symbol GPB/USD). If you are new to FOREX, you may want to start out trading the euro-dollar pair, as it is the most liquid, and therefore less volatile than other pairs.
2) Identify the currency pair's closing exchange rate set on Friday. The closing exchange rate for the gap strategy is the closing exchange rate achieved on Friday at 5:00PM EST. For example, if the EUR/USD closed at 1.3800 on Friday at 5:00PM EST you would record this information and compare it to the following week's opening exchange rate, to be set on Sunday evening when the Asian market opens at 7:00PM EST.
3) Determine the percentage size of the gap. For example, you may want your gap to be greater than or equal to one percent, half a percent, or even a quarter of a percent. Assume you had chosen one percent. In this case you would want to verify if Sunday night's Asia opening exchange rate is off by one percent or more from where the exchange rate closed on Friday at 5:00PM EST.
4) Initiate a trade if the gap is greater than or equal to your predetermined criteria. For example, if you are using a one-percent gap criterion in the EUR/USD, then you would buy the currency pair if the exchange rate opened the week one percent or more below where it closed on Friday. If the EUR/USD currency pair opened the week one percent or more above where it closed on Friday, you would sell the currency pair.
5) Close out your trade once the gap has been closed or if the gap continues to widen beyond your initial criterion.
Source - eHow
How to Trade The Forex
The Foreign exchange market also known as the forex market or fx market is an exciting and fast past currency trading market. The forex is the most traded market in the world and it trades 24 hours a day somewhere in the world. Learning forex trading is a fascinating and high stakes market that can yield unbelievable profits as well as uncontrollable losses.
Over 300 billion dollars exchange hands each day in foreign currency trading. It is not hard to understand the opportunities that are present here for the few who can learn the system. Trading in the forex is not for everyone but the training and understanding of the currency market might be a great learning experience for just about everyone. Do not trade foreign without proper training, understanding of the global economy and have traded a practice account. More on practice accounts in another article.
Instructions:
1) Forex Training
Proper training is key in this fast paced dynamic climate. Training includes understanding charts, forex currency patterns, developing a forex trading system, forex courses, forex forums and more. 6 months to a year should be spent learning your own trading system before investing a dime.
2) Forex Course
As you might imagine, the training opportunities are endless and need to be approached with caution. Everybody thinks they have a system that works and they are ready to share it with you for a fee. Start deciding on a forex course after you have looked at some forex trading websites and learned the basics for free before investing in a forex course. Some forex courses are free from websites.
3) Forex PIP
Understanding the spread in forex and the pip of currency pairs will help you in choosing an online forex broker. Viewing forex real time quotes is imperative if you are going to trade. The online marketplace is competitive and multiple trading platforms and brokers should be researched prior to signing up.
4) Online Trading
You will be trading online and in a day trading type style. Once you develop your system and put into place your stop losses, understand charting and devoting time to training you will have a strong foundation to go live with your training.
5) Forex Platforms
The forex platform is the trading platform that you will be executing your trades with. Each forex trading company has their own platform that operates basically the same but each system will need to be learned by the trader to feel comfortable with the process.
Over 300 billion dollars exchange hands each day in foreign currency trading. It is not hard to understand the opportunities that are present here for the few who can learn the system. Trading in the forex is not for everyone but the training and understanding of the currency market might be a great learning experience for just about everyone. Do not trade foreign without proper training, understanding of the global economy and have traded a practice account. More on practice accounts in another article.
Instructions:
1) Forex Training
Proper training is key in this fast paced dynamic climate. Training includes understanding charts, forex currency patterns, developing a forex trading system, forex courses, forex forums and more. 6 months to a year should be spent learning your own trading system before investing a dime.
2) Forex Course
As you might imagine, the training opportunities are endless and need to be approached with caution. Everybody thinks they have a system that works and they are ready to share it with you for a fee. Start deciding on a forex course after you have looked at some forex trading websites and learned the basics for free before investing in a forex course. Some forex courses are free from websites.
3) Forex PIP
Understanding the spread in forex and the pip of currency pairs will help you in choosing an online forex broker. Viewing forex real time quotes is imperative if you are going to trade. The online marketplace is competitive and multiple trading platforms and brokers should be researched prior to signing up.
4) Online Trading
You will be trading online and in a day trading type style. Once you develop your system and put into place your stop losses, understand charting and devoting time to training you will have a strong foundation to go live with your training.
5) Forex Platforms
The forex platform is the trading platform that you will be executing your trades with. Each forex trading company has their own platform that operates basically the same but each system will need to be learned by the trader to feel comfortable with the process.
Tips and Warnings:
Study a 6 months to a year before trading with real money trade a practice account sign up with more than one broker take a trading course research trading courses prior to buying.
Source - eHow
9.11.11
Forex Trading: What to Trade, When to Trade, and How to Trade
Trading in the worlds largest and the most liquid financial market is one of the best ways to earn money. Here, if you know how, when, and what to trade, you can be sure that you can earn huge amounts of profit. It is a fact that a lot of people who traded in this financial market became successful and became very rich almost overnight.
As a trader, you would want to grab the opportunity to earn lots of money and of course, start a trading career in Forex. The Forex market, as mentioned before, is the largest and the most liquid financial market in the world. Unlike the stock market and other financial market, Forex has no centralized location as it operates 24 hours a day at different locations around the world. Trades in this financial market are done through an electronic network.
In the past, because of the high financial requirements, Forex was only limited to large multinational corporations and financial institutions, such as banks. However, because of the advancement of the communications technology and also the existence of high speed internet, Forex in the late 90s is now available for everyone who is interested in trading in the Forex market.
Forex trading, for a beginner trader, is simply the buying and selling of different currencies of the world. This may seem simple enough for everyone, but you should also consider that a lot of inexperienced traders and some experienced traders have suffered huge financial losses in Forex.
You should always keep in mind that aside from the fact that Forex can give you a great money-making potential, Forex also has equal risks. Therefore, before you enter this market and trade, you should first consider a few things in order for you be successful in this money making venture.
First of all, you have to know how to trade currencies. In Forex trading, all you need is a personal computer with an active internet connection, a funded Forex account and a Forex trading system. There are numerous websites that offer Forex trading. In order to start trading, you have to open and fund an account first with your chosen website. After that, you can now start trading in the most liquid market in the world.
You need to have a fast internet connection in order to keep up with the updates and price movements and prevent slippages from happening. Another thing you have to consider is that as much as possible, you should register in a Forex website that offer dummy accounts so that you can practice your skills and strategies in Forex trading.
Now that you know how to trade in the Forex market, the next thing you need to know is what to trade. The Forex market involved different currencies from all over the world. It is also traded in forms of currency pairs. Here are the different currency pairs that you should consider trading in the Forex market:
• EUR/USD
• USD/JPY
• GBP/USD
• USD/CHF
• AUD/USD
• USD/CAD
• NZD/USD
• EUR/GBP
• EUR/JPY
• GBP/JPY
• CHF/JPY
• GBP/CHF
• EUR/AUD
These are the most commonly traded currency pairs in the Forex market. It is up to you to determine which currency pair you want to trade depending on market conditions. If you do it right, you can be sure that you can earn a substantial amount of income.
The next and last thing you should consider is when you have to trade in the Forex market. Since the Forex market is open 24 hours a day, you can trade whenever you like. And, since it is the most liquid, you can get out whenever you like. It is just a matter of knowing if the market condition is profitable or if it is falling.
Forex traders are mostly speculators who try to predict which currency is going to increase in value and which currency will decrease in value. Speculators use Forex charts to spot a trend and determine when a particular currency will increase or decrease in value.
Now that you know how to trade in the Forex market, you can now open a funded account and start trading currencies. Always remember that in all trades done in the financial market, you should also expect to suffer from losses. You should be prepared to deal with it and accept it. This is why you need a substantial amount of money to trade in Forex.
As a trader, you would want to grab the opportunity to earn lots of money and of course, start a trading career in Forex. The Forex market, as mentioned before, is the largest and the most liquid financial market in the world. Unlike the stock market and other financial market, Forex has no centralized location as it operates 24 hours a day at different locations around the world. Trades in this financial market are done through an electronic network.
In the past, because of the high financial requirements, Forex was only limited to large multinational corporations and financial institutions, such as banks. However, because of the advancement of the communications technology and also the existence of high speed internet, Forex in the late 90s is now available for everyone who is interested in trading in the Forex market.
Forex trading, for a beginner trader, is simply the buying and selling of different currencies of the world. This may seem simple enough for everyone, but you should also consider that a lot of inexperienced traders and some experienced traders have suffered huge financial losses in Forex.
You should always keep in mind that aside from the fact that Forex can give you a great money-making potential, Forex also has equal risks. Therefore, before you enter this market and trade, you should first consider a few things in order for you be successful in this money making venture.
First of all, you have to know how to trade currencies. In Forex trading, all you need is a personal computer with an active internet connection, a funded Forex account and a Forex trading system. There are numerous websites that offer Forex trading. In order to start trading, you have to open and fund an account first with your chosen website. After that, you can now start trading in the most liquid market in the world.
You need to have a fast internet connection in order to keep up with the updates and price movements and prevent slippages from happening. Another thing you have to consider is that as much as possible, you should register in a Forex website that offer dummy accounts so that you can practice your skills and strategies in Forex trading.
Now that you know how to trade in the Forex market, the next thing you need to know is what to trade. The Forex market involved different currencies from all over the world. It is also traded in forms of currency pairs. Here are the different currency pairs that you should consider trading in the Forex market:
• EUR/USD
• USD/JPY
• GBP/USD
• USD/CHF
• AUD/USD
• USD/CAD
• NZD/USD
• EUR/GBP
• EUR/JPY
• GBP/JPY
• CHF/JPY
• GBP/CHF
• EUR/AUD
These are the most commonly traded currency pairs in the Forex market. It is up to you to determine which currency pair you want to trade depending on market conditions. If you do it right, you can be sure that you can earn a substantial amount of income.
The next and last thing you should consider is when you have to trade in the Forex market. Since the Forex market is open 24 hours a day, you can trade whenever you like. And, since it is the most liquid, you can get out whenever you like. It is just a matter of knowing if the market condition is profitable or if it is falling.
Forex traders are mostly speculators who try to predict which currency is going to increase in value and which currency will decrease in value. Speculators use Forex charts to spot a trend and determine when a particular currency will increase or decrease in value.
Now that you know how to trade in the Forex market, you can now open a funded account and start trading currencies. Always remember that in all trades done in the financial market, you should also expect to suffer from losses. You should be prepared to deal with it and accept it. This is why you need a substantial amount of money to trade in Forex.
Forex Trading System: Knowing How to Trade in Forex
Do you want a very good career that has a potential to make you earn a lot of money? Do you want to enter a particular financial market but don’t know which one to choose? If you answered yes to either of these questions, then the Forex market is right for you. If you want to make a lot of money, the Forex market can provide for you.
You have to realize that the Forex market is the largest and the most liquid financial institution in the world. With trades that go on for 24 hours a day, you will have an opportunity to make money any time of day you wish to. It is also a fact that the Forex market generates currency exchanges that amounts up to trillions of dollars each day.
With these kinds of feature, who wouldn’t want to trade in this very large financial market? Forex trading is not as complicated as it may sound. With the right knowledge and skills, you can instantly trade Forex for a minimum of 500 dollars in a mini-Forex account. The Forex trading system is very simple.
Basically, Forex is the exchange of currencies of the world. You should realize that all the currency of the world is involved in the Forex market. It may be confusing to choose which one to trade but all you need is to know the major currencies that are frequently traded. Here are the major currencies that you can choose from to trade:
• US Dollar (USD)
• Japanese Yen (JPY)
• British Pound (GBP)
• Swiss Franc (CHF)
• European Union Euro (EUR)
• Australian Dollar (AUD)
• New Zealand Dollar (NZD)
• Canadian Dollar (CAD)
These are the major currencies that you should consider trading. With these trades, you can be sure that you can maximize your money making potential. The basic thing that you need to know when trading in the Forex market is that you should buy low and sell high. And, since you will be trading with different countries currency, the economy and the government stability of a particular country can literally affect the value of the particular currency.
The next thing you need to know is that Forex trades are done by trading currency pairs. Currency pairs are the simultaneous buying one currency and selling the currency of another. So, basically, Forex is in fact trading. Aside from knowing how to trade currencies of the world or at least the major currencies, you also have to know about the different strategies used when trading in the Forex market. You have to realize the fact that knowing how to trade in the Forex market isn’t enough to get you that money. You also need to know the different strategies that are used in the Forex market.
An example of a Forex trading strategy that is used in this market is the leverage strategy. This will enable you to trade 100 times the amount of money you deposited in your Forex account. This means that you can earn a potential of 100 times more. With this kind of strategy, you can really maximize your income opportunity. You should also consider the stop loss order strategy. This strategy minimizes the risk of losing money. The stop loss order works when you choose to stop trading at a specific price. If the currency reaches that point, you will automatically stop trading.
There are other strategies that you can use in the Forex market that you should be aware of. If you want to be successful in the Forex market, you also have to realize and accept the fact that you will lose money in the first few months when you trade in Forex. This is why it is also important to remember that you should invest what you can afford to lose in the Forex market. If you can’t afford to lose the money you plan on investing in the Forex market, then it is recommended that you should never trade in this very large and very risky market.
Now that you know how to trade in the Forex market, all you need to do now is decide whether you really want to trade in this trillion dollar industry. If you do decide that you want to trade, then all you have to do is open an account with Forex brokerage companies and start using their Forex trading software to trade.
You have to realize that the Forex market is the largest and the most liquid financial institution in the world. With trades that go on for 24 hours a day, you will have an opportunity to make money any time of day you wish to. It is also a fact that the Forex market generates currency exchanges that amounts up to trillions of dollars each day.
With these kinds of feature, who wouldn’t want to trade in this very large financial market? Forex trading is not as complicated as it may sound. With the right knowledge and skills, you can instantly trade Forex for a minimum of 500 dollars in a mini-Forex account. The Forex trading system is very simple.
Basically, Forex is the exchange of currencies of the world. You should realize that all the currency of the world is involved in the Forex market. It may be confusing to choose which one to trade but all you need is to know the major currencies that are frequently traded. Here are the major currencies that you can choose from to trade:
• US Dollar (USD)
• Japanese Yen (JPY)
• British Pound (GBP)
• Swiss Franc (CHF)
• European Union Euro (EUR)
• Australian Dollar (AUD)
• New Zealand Dollar (NZD)
• Canadian Dollar (CAD)
These are the major currencies that you should consider trading. With these trades, you can be sure that you can maximize your money making potential. The basic thing that you need to know when trading in the Forex market is that you should buy low and sell high. And, since you will be trading with different countries currency, the economy and the government stability of a particular country can literally affect the value of the particular currency.
The next thing you need to know is that Forex trades are done by trading currency pairs. Currency pairs are the simultaneous buying one currency and selling the currency of another. So, basically, Forex is in fact trading. Aside from knowing how to trade currencies of the world or at least the major currencies, you also have to know about the different strategies used when trading in the Forex market. You have to realize the fact that knowing how to trade in the Forex market isn’t enough to get you that money. You also need to know the different strategies that are used in the Forex market.
An example of a Forex trading strategy that is used in this market is the leverage strategy. This will enable you to trade 100 times the amount of money you deposited in your Forex account. This means that you can earn a potential of 100 times more. With this kind of strategy, you can really maximize your income opportunity. You should also consider the stop loss order strategy. This strategy minimizes the risk of losing money. The stop loss order works when you choose to stop trading at a specific price. If the currency reaches that point, you will automatically stop trading.
There are other strategies that you can use in the Forex market that you should be aware of. If you want to be successful in the Forex market, you also have to realize and accept the fact that you will lose money in the first few months when you trade in Forex. This is why it is also important to remember that you should invest what you can afford to lose in the Forex market. If you can’t afford to lose the money you plan on investing in the Forex market, then it is recommended that you should never trade in this very large and very risky market.
Now that you know how to trade in the Forex market, all you need to do now is decide whether you really want to trade in this trillion dollar industry. If you do decide that you want to trade, then all you have to do is open an account with Forex brokerage companies and start using their Forex trading software to trade.
Forex Trading: The Best Hours to Trade
If you want to earn extra cash aside from the cash you earn from your regular job or your business, maybe it’s time to you to enter the financial market. One kind of financial market that made a lot of people earn a lot of money is the Forex market. Aside from the fact that the Forex market can give you an opportunity to earn a lot of money, you should also know that Forex is the largest and the most liquid financial market in the world with trade exchanges that amounts up to trillions of dollars each day.
Forex also operates 24 hours a day and therefore making it the most liquid market in the world. However, Forex is also a very risky market. Besides that fact that it generated a lot of people to become rich, it also made a lot of people lose large amounts of money. Therefore, you should consider that you should think twice before entering this financial market. You should have enough knowledge and skills before you enter this market. Part of the knowledge that you should know the best time you should enter this very liquid and very large market.
Sure you know how to trade, you know what currency pairs to trade, and you even know how to read charts. Perhaps, you also know one or two strategy when trading in the Forex market. However, you should also consider the fact that because the Forex market operates 24 hours a day, you need to know when you should trade.
Every minute in the Forex market counts. One minute you notice a currency is increasing in value, the next you notice that the same kind of currency you noticed a minute ago is decreasing in value. This is why you should consider the fact that Forex market is a very dynamic market with lots of price oscillations.
Minute by minute events are very important in order for you to be successful. Because of this feature that is found in the Forex market, you, as a Forex trader, can enter the market a number of times a day. This will allow you to earn some profits after every number of trades you do and perhaps maybe even lose one if you made the wrong trading decision.
Firstly, you have to remember that the Forex market beings at Sunday at 5PM EST to Friday at 4PM EST then it beings again at 5PM EST. Trading begins in Forex at New Zealand next at Australia followed by Asia, in the Middle East, Europe and ends in America. The major markets in Forex are London, Tokyo and New York with trading activities the heaviest when major markets overlap.
Basing from the times, you will see that there will always be someone anywhere in the world who is buying and selling currencies. You will see that when one market closes, another market opens. Trading in the Forex market is 24 hours a day. Forex market transaction volume is always high during the whole day. However, it peaks the highest when the Asian market, the European market and the US market opens at the same time.
These are the trading hours in the Forex market you have to trade in, in order to get the highest possible trades. This are the hours that are also the most profitable. Here are the open market times that you can use as reference:
• New York – 8am to 4pm EST
• London – 2am to 12nn EST
• Great Britain – 3am to 11am EST
• Tokyo – 8pm to 4am EST
• Australia – 7pm to 3am EST
If you look at the schedule and study it, you will see that there are two instances where two of the major markets overlap on trading hours. These are between 2am and 4am EST with Asian and European markets and 8am to 12pm EST with European and North American.
These are the things you should remember when trading in the Forex market. It is not only important that you know how to trade and know some strategies on Forex trading, But, you should also know when is the best time to trade in this very large and very liquid market. If you follow all these, you can be sure that you can earn a potentially higher profit than on other trading times.
Forex also operates 24 hours a day and therefore making it the most liquid market in the world. However, Forex is also a very risky market. Besides that fact that it generated a lot of people to become rich, it also made a lot of people lose large amounts of money. Therefore, you should consider that you should think twice before entering this financial market. You should have enough knowledge and skills before you enter this market. Part of the knowledge that you should know the best time you should enter this very liquid and very large market.
Sure you know how to trade, you know what currency pairs to trade, and you even know how to read charts. Perhaps, you also know one or two strategy when trading in the Forex market. However, you should also consider the fact that because the Forex market operates 24 hours a day, you need to know when you should trade.
Every minute in the Forex market counts. One minute you notice a currency is increasing in value, the next you notice that the same kind of currency you noticed a minute ago is decreasing in value. This is why you should consider the fact that Forex market is a very dynamic market with lots of price oscillations.
Minute by minute events are very important in order for you to be successful. Because of this feature that is found in the Forex market, you, as a Forex trader, can enter the market a number of times a day. This will allow you to earn some profits after every number of trades you do and perhaps maybe even lose one if you made the wrong trading decision.
Firstly, you have to remember that the Forex market beings at Sunday at 5PM EST to Friday at 4PM EST then it beings again at 5PM EST. Trading begins in Forex at New Zealand next at Australia followed by Asia, in the Middle East, Europe and ends in America. The major markets in Forex are London, Tokyo and New York with trading activities the heaviest when major markets overlap.
Basing from the times, you will see that there will always be someone anywhere in the world who is buying and selling currencies. You will see that when one market closes, another market opens. Trading in the Forex market is 24 hours a day. Forex market transaction volume is always high during the whole day. However, it peaks the highest when the Asian market, the European market and the US market opens at the same time.
These are the trading hours in the Forex market you have to trade in, in order to get the highest possible trades. This are the hours that are also the most profitable. Here are the open market times that you can use as reference:
• New York – 8am to 4pm EST
• London – 2am to 12nn EST
• Great Britain – 3am to 11am EST
• Tokyo – 8pm to 4am EST
• Australia – 7pm to 3am EST
If you look at the schedule and study it, you will see that there are two instances where two of the major markets overlap on trading hours. These are between 2am and 4am EST with Asian and European markets and 8am to 12pm EST with European and North American.
These are the things you should remember when trading in the Forex market. It is not only important that you know how to trade and know some strategies on Forex trading, But, you should also know when is the best time to trade in this very large and very liquid market. If you follow all these, you can be sure that you can earn a potentially higher profit than on other trading times.
4.11.11
How To Trade a Forex Mini Account
Foreign currency exchange, or Forex, is a large worldwide network of traders who speculate on the value of currencies. While daily changes in exchange rates are small, Forex trading involves high amounts of leverage to capitalize on fluctuations of fractions of a cent. For this reason, Forex can be extraordinarily risky. A Forex mini account or micro account allows you to learn and participate in the Forex market without risking too much money. Many accounts can be opened for less than $500. Trading a Forex mini account is the same as trading larger accounts, but with less risk.
Instructions:
1)Open a Forex mini or micro account with any Forex broker. The terminology for these account varies. To ensure decreased risk with your account, make certain that the minimum trade size, or "lot," of the account is no more than 10,000 currency units. Many accounts are available with lot sizes of only 1,000 which offers an additional reduction in risk.
2)Fund the account after it is opened. Most Forex brokers accept automated Automated Clearing House (ACH) transfers that may be processed through the broker's website. There is typically a three-day delay on getting access to these funds after the transfer is initiated.
3)Download and install the Forex trading platform on your computer. Most Forex brokers offer their own proprietary trading software free for all account holders. You usually cannot trade a Forex mini account without installing this program.
4)Open the Forex trading software.
5)Choose a currency pair that you wish to trade. All currency trading involves a "base" currency and a second currency that establishes the base currency's value. No currency has intrinsic value without comparison to another currency. The U.S. Dollar, for example, may rise in value against the Canadian Dollar while simultaneously falling in value against the Euro.
6)Chart the currency pair so you can see how prices are fluctuating.
7)Purchase a single lot of the currency pair when you believe the base currency is likely to rise. Forex action is quick so you must be nimble as a Forex trader. Most Forex platforms offer obvious "Buy" and "Sell" button for the currency pair you are trading.
8)Sell the currency pair after you have achieved a desirable profit or to cut any losses short. Constant awareness of potential losses is the single most important issue that should be on the minds of any trader. Avoid the temptation to let your losses run indefinitely. Many new traders hope a losing position will rebound, but this usually just adds to a trade's losses.
Tips and Warnings:
Carefully consider whether you need a mini or micro account. In some cases, a mini account is advertised with a minimum lot size of 10,000 currency units. This is still quite risky and should be avoided for novice traders. Seek a Forex account with a minimum lot size of 1,000 if you are completely new to trading, or a minimum size of 10,000 if you are willing to endure more risk. At all costs avoid a Forex account with a lot size of 100,000 as this may be exceptionally stressful for new traders.
Source - eHow
Instructions:
1)Open a Forex mini or micro account with any Forex broker. The terminology for these account varies. To ensure decreased risk with your account, make certain that the minimum trade size, or "lot," of the account is no more than 10,000 currency units. Many accounts are available with lot sizes of only 1,000 which offers an additional reduction in risk.
2)Fund the account after it is opened. Most Forex brokers accept automated Automated Clearing House (ACH) transfers that may be processed through the broker's website. There is typically a three-day delay on getting access to these funds after the transfer is initiated.
3)Download and install the Forex trading platform on your computer. Most Forex brokers offer their own proprietary trading software free for all account holders. You usually cannot trade a Forex mini account without installing this program.
4)Open the Forex trading software.
5)Choose a currency pair that you wish to trade. All currency trading involves a "base" currency and a second currency that establishes the base currency's value. No currency has intrinsic value without comparison to another currency. The U.S. Dollar, for example, may rise in value against the Canadian Dollar while simultaneously falling in value against the Euro.
6)Chart the currency pair so you can see how prices are fluctuating.
7)Purchase a single lot of the currency pair when you believe the base currency is likely to rise. Forex action is quick so you must be nimble as a Forex trader. Most Forex platforms offer obvious "Buy" and "Sell" button for the currency pair you are trading.
8)Sell the currency pair after you have achieved a desirable profit or to cut any losses short. Constant awareness of potential losses is the single most important issue that should be on the minds of any trader. Avoid the temptation to let your losses run indefinitely. Many new traders hope a losing position will rebound, but this usually just adds to a trade's losses.
Tips and Warnings:
Carefully consider whether you need a mini or micro account. In some cases, a mini account is advertised with a minimum lot size of 10,000 currency units. This is still quite risky and should be avoided for novice traders. Seek a Forex account with a minimum lot size of 1,000 if you are completely new to trading, or a minimum size of 10,000 if you are willing to endure more risk. At all costs avoid a Forex account with a lot size of 100,000 as this may be exceptionally stressful for new traders.
Source - eHow
How to Trade FOREX Channels
A channel is one of the most common technical analysis tools used by traders in all markets. It is created by drawing one line connecting price highs and another line connecting price lows. Some traders use channels to trade short-term breakouts, while others prefer to trade off high and low extremes. Whatever strategy is used, together with the great leverage, liquidity, and explosive volatility of the Forex, channels can be a gateway to outstanding profits.
Instructions:
1) Understand channels and their variations. Channels are constructed by drawing straight lines at an angle connecting the highs and lows on a particular chart, forming a band between which prices often trade. Other forms of channels are mathematically calculated from price and volatility data, and form an envelope around the price of a particular pair, with the high end denoting an overbought extreme, and the low end denoting an oversold extreme. Such channels are called linear regression lines, Bollinger Bands, and Keltner Channels.
2) Settle on a trading timeframe. Most Forex participants trade on an intraday basis, using 5-minute, 15-minute, or 60-miunte charts. Each chart obviously looks different. If you trade channels on a 5-minute chart, the range and depth of price movement is considerably more constricted than if you trade on a 60-minute chart or longer. The timeframe you elect to trade will both affect the primary technical picture you see, as well as how you will need to adjust your profit expectations and stop loss safeguards.
3) Trade bounces off of channel highs or lows. Many traders combine this strategy with indicators called "oscillators" as part of a short-tem countertrend strategy. A particular advantage of countertrend strategies is that most of the time Forex prices tend to churn in a relatively narrow range, bouncing off lower and upper channels. This creates many short-term, high probability trades. The disadvantage is that when prices do eventually breakout to the upside or downside, they move very strongly, and getting caught on the opposite side can lead to large losses.
4) Trade channel breakouts. As soon as a price bar closes above the upper channel line, buy immediately at the open of the next price bar. This strategy will be unsuccessful far more often than a countertrend strategy, but when it's right and you catch a big move, the profits from one successful trade can more than pay for three or four losing trades. Channel breakouts tend to be most successful if you buy into them after a prolonged stretch of particularly narrow range trading. When buying a channel breakout, you might also wait for a retest of the upper channel before buying to get a better price.
5) Observe other technical factors that compliment channel analysis. The most important are trend, support and resistance, and range. Typically, when Forex prices compress and coil into a particularly narrow range channel, there will soon be a large breakout move, either up or down. Conversely, after a big range move, prices tend to bounce around in a new narrow range before either continuing or reversing the previous trend. Be aware of the broader conditions affecting the Forex pair you are trading, and use channels to augment your overall analysis.
Source - eHow
Instructions:
1) Understand channels and their variations. Channels are constructed by drawing straight lines at an angle connecting the highs and lows on a particular chart, forming a band between which prices often trade. Other forms of channels are mathematically calculated from price and volatility data, and form an envelope around the price of a particular pair, with the high end denoting an overbought extreme, and the low end denoting an oversold extreme. Such channels are called linear regression lines, Bollinger Bands, and Keltner Channels.
2) Settle on a trading timeframe. Most Forex participants trade on an intraday basis, using 5-minute, 15-minute, or 60-miunte charts. Each chart obviously looks different. If you trade channels on a 5-minute chart, the range and depth of price movement is considerably more constricted than if you trade on a 60-minute chart or longer. The timeframe you elect to trade will both affect the primary technical picture you see, as well as how you will need to adjust your profit expectations and stop loss safeguards.
3) Trade bounces off of channel highs or lows. Many traders combine this strategy with indicators called "oscillators" as part of a short-tem countertrend strategy. A particular advantage of countertrend strategies is that most of the time Forex prices tend to churn in a relatively narrow range, bouncing off lower and upper channels. This creates many short-term, high probability trades. The disadvantage is that when prices do eventually breakout to the upside or downside, they move very strongly, and getting caught on the opposite side can lead to large losses.
4) Trade channel breakouts. As soon as a price bar closes above the upper channel line, buy immediately at the open of the next price bar. This strategy will be unsuccessful far more often than a countertrend strategy, but when it's right and you catch a big move, the profits from one successful trade can more than pay for three or four losing trades. Channel breakouts tend to be most successful if you buy into them after a prolonged stretch of particularly narrow range trading. When buying a channel breakout, you might also wait for a retest of the upper channel before buying to get a better price.
5) Observe other technical factors that compliment channel analysis. The most important are trend, support and resistance, and range. Typically, when Forex prices compress and coil into a particularly narrow range channel, there will soon be a large breakout move, either up or down. Conversely, after a big range move, prices tend to bounce around in a new narrow range before either continuing or reversing the previous trend. Be aware of the broader conditions affecting the Forex pair you are trading, and use channels to augment your overall analysis.
Source - eHow
How to Trade FOREX Futures
A forex (foreign exchange) future is a standardized, transferable, exchange-traded contract that requires delivery of a currency at a specified price on a specified future date. The holder of a future has an obligation to buy or sell the currency. The risk to the holder is unlimited, and the risk to the seller is unlimited as well. Corporations and individuals use futures to hedge (as an insurance) against detrimental currency fluctuations. Futures are also used to speculate against movements in currency prices.
Instructions:
1) Imagine that it is October and that you are the treasurer of a multinational company with many stores in Europe. You want to know exactly what revenues in U.S. dollars you will get from your European stores. You are worried that if the euro appreciates, your profit margin will be eroded.
2) You check the current euro to U.S. dollar (EUR/USD) spot rate (current market rate) and see that it's 1.0900 dollars per 1 euro. Your anticipated revenues over the next three months are budgeted at 5 million euros. At today's EUR/USD spot rate of 1.0900, this is $5,450,000 in dollar revenues and your net profit will be 5 percent of these revenues.
3) You calculate that if the EUR/USD spot rate depreciates to 1.0355 you will lose all your profit. (1.0900 times 0.05 = 0545pips), (1.0900 minus 0545 = 1.0355). A pip is 1/100th of 1 percent of a rate and is the fourth decimal place after the point in an exchange rate.
4) You decide to hedge any potential currency fluctuations by doing a forex future. You ask your broker what the forecast for the euro is over the next three months and he tells you that he sees the euro depreciating against the dollar. You ask your broker for a quote for euro futures for December. Your broker quotes 1.0865 for December delivery of euros.
5) You decide to sell 40 contracts of EUR/USD futures at 1.0875 (each contract is euro 125,000) to cover your anticipated revenue of 5 million euros (40 times 125,000 = 5,000,000). Your broker asks you for an initial margin of 3 percent and a maintenance margin of 2.5 percent.
6) You calculate that the 40 contracts are worth $5,437,500 at the futures rate of 1.0875 (40 times 125,000 times 1.0875 = 5,437,500), which reduces your dollar revenues by just $12,500, or 0.2 percent (12,500/5,450,000 by 100 = 0.2 percent).
7) You tell your broker to go ahead and sell 40 euro contracts and that you will deposit the 3 percent initial margin of $163,000 (5,437,500 times 0.03 = 163,000). Your broker reminds you that the EUR/USD futures rate for December will fluctuate daily and that you should always have at least 2.5 percent of the value of the contracts in your margin account. For example, if tomorrow the rate was 1.0873, the dollar value would be EUR 5,000,000 times 1.0873 = 5,436,500 times 0.025 = $135,912. This is a lesser amount than the balance in your margin account, so the margin account would be reduced by $27,085.
8) Imagine that it is now December and it's time to settle the futures contract. You deliver the 40 EUR contracts and receive $5,437,500. You check the current spot rate and see that it is EUR/USD 1.0587. You calculate that if you had not done the futures contract and sold EUR 5,000,000 at spot you would have lost $144,000, almost half your anticipated profits (EUR 5,000,000 x $1.0587 = $5,293,500. $5,437,500 minus $5,293,500 = $144,000).
Tips and Warnings:
If you are new to trading foreign exchange it is advisable to seek professional advice on hedging strategies. Currency futures are a zero-sum game and even seasoned sellers or the buyers of futures contracts can lose all their capital.
Source - eHow
Instructions:
1) Imagine that it is October and that you are the treasurer of a multinational company with many stores in Europe. You want to know exactly what revenues in U.S. dollars you will get from your European stores. You are worried that if the euro appreciates, your profit margin will be eroded.
2) You check the current euro to U.S. dollar (EUR/USD) spot rate (current market rate) and see that it's 1.0900 dollars per 1 euro. Your anticipated revenues over the next three months are budgeted at 5 million euros. At today's EUR/USD spot rate of 1.0900, this is $5,450,000 in dollar revenues and your net profit will be 5 percent of these revenues.
3) You calculate that if the EUR/USD spot rate depreciates to 1.0355 you will lose all your profit. (1.0900 times 0.05 = 0545pips), (1.0900 minus 0545 = 1.0355). A pip is 1/100th of 1 percent of a rate and is the fourth decimal place after the point in an exchange rate.
4) You decide to hedge any potential currency fluctuations by doing a forex future. You ask your broker what the forecast for the euro is over the next three months and he tells you that he sees the euro depreciating against the dollar. You ask your broker for a quote for euro futures for December. Your broker quotes 1.0865 for December delivery of euros.
5) You decide to sell 40 contracts of EUR/USD futures at 1.0875 (each contract is euro 125,000) to cover your anticipated revenue of 5 million euros (40 times 125,000 = 5,000,000). Your broker asks you for an initial margin of 3 percent and a maintenance margin of 2.5 percent.
6) You calculate that the 40 contracts are worth $5,437,500 at the futures rate of 1.0875 (40 times 125,000 times 1.0875 = 5,437,500), which reduces your dollar revenues by just $12,500, or 0.2 percent (12,500/5,450,000 by 100 = 0.2 percent).
7) You tell your broker to go ahead and sell 40 euro contracts and that you will deposit the 3 percent initial margin of $163,000 (5,437,500 times 0.03 = 163,000). Your broker reminds you that the EUR/USD futures rate for December will fluctuate daily and that you should always have at least 2.5 percent of the value of the contracts in your margin account. For example, if tomorrow the rate was 1.0873, the dollar value would be EUR 5,000,000 times 1.0873 = 5,436,500 times 0.025 = $135,912. This is a lesser amount than the balance in your margin account, so the margin account would be reduced by $27,085.
8) Imagine that it is now December and it's time to settle the futures contract. You deliver the 40 EUR contracts and receive $5,437,500. You check the current spot rate and see that it is EUR/USD 1.0587. You calculate that if you had not done the futures contract and sold EUR 5,000,000 at spot you would have lost $144,000, almost half your anticipated profits (EUR 5,000,000 x $1.0587 = $5,293,500. $5,437,500 minus $5,293,500 = $144,000).
Tips and Warnings:
If you are new to trading foreign exchange it is advisable to seek professional advice on hedging strategies. Currency futures are a zero-sum game and even seasoned sellers or the buyers of futures contracts can lose all their capital.
Source - eHow
7.10.11
How to Trade Bounces in the FOREX Market
Every year, thousands of aspiring traders come to the forex market to take advantage of the opportunities of 24 hour trading with a variety of trading methods. One method that has proven reliable and stood the test of time is how to trade bounces in the forex market. For the novice forex trader, trading bounces in the forex can seem a bit risky because the market is falling but using a few key steps this can be a trading methodology that wins consistently.
Instructions: Panning For Gold
1) Go to a computer with internt access and log on. Then, once you're online, go to FreeStockCharts.com and pull up a quote chart with all the currency pairs that you want to search for setups in trading bounces. Then, pull up a price chart that will link from the quote chart to the price chart. As you scan through the different currency pairs on the forex that you use for trade opportunities for this setup they will automatically pull up one by one on the price chart as you click on each symbol in the quote chart. Also, include volume at the bottom of the price chart.
2) Scan the list of currency pairs and mark down any steep decline off of a high that is accompanied by a large increase of volume. This indicates heavy sales volume as large numbers of forex traders are either selling positions and many more are trading in the direction of the decline. After the initial wave of selling watch for a rally to relieve the selling pressure.
3) Prepare for a trade entry when the price of the currency pair rallies initially but then begins to decline again to the significant low that was made. This area will become an area of potential heavy support as it is retested. Once price enters the price area of the low that was made during the initial decline you want to wait and watch for price to react and bounce up from this area to trigger a trade entry.
4) Enter a position as price travels over the highest high of the price bar that set the significant low and closes for the day above that price bar. This confirms the entry is valid and that price is bouncing back from an area of significant support.
Tips and Warnings:
You can also use Bollinger Bands on the price chart to gauge where the standard deviation of the mean of the price lies so that you can trade bounces off the bands themselves. This approach is a bit advanced so be cautious but it is reliable as well. Always use stops and plan for sound risk control when trading the forex.
Forex trading is extremely lucrative but if you don't have a method of managing your position size and risk exposure then it can be really hard on your financial life. Like a boxer, you want to have a strong defense against your opponent which for you is the forex market. Protect yourself at all times and you'll end up a winner in the end.
Source - eHow
Instructions: Panning For Gold
1) Go to a computer with internt access and log on. Then, once you're online, go to FreeStockCharts.com and pull up a quote chart with all the currency pairs that you want to search for setups in trading bounces. Then, pull up a price chart that will link from the quote chart to the price chart. As you scan through the different currency pairs on the forex that you use for trade opportunities for this setup they will automatically pull up one by one on the price chart as you click on each symbol in the quote chart. Also, include volume at the bottom of the price chart.
2) Scan the list of currency pairs and mark down any steep decline off of a high that is accompanied by a large increase of volume. This indicates heavy sales volume as large numbers of forex traders are either selling positions and many more are trading in the direction of the decline. After the initial wave of selling watch for a rally to relieve the selling pressure.
3) Prepare for a trade entry when the price of the currency pair rallies initially but then begins to decline again to the significant low that was made. This area will become an area of potential heavy support as it is retested. Once price enters the price area of the low that was made during the initial decline you want to wait and watch for price to react and bounce up from this area to trigger a trade entry.
4) Enter a position as price travels over the highest high of the price bar that set the significant low and closes for the day above that price bar. This confirms the entry is valid and that price is bouncing back from an area of significant support.
Tips and Warnings:
You can also use Bollinger Bands on the price chart to gauge where the standard deviation of the mean of the price lies so that you can trade bounces off the bands themselves. This approach is a bit advanced so be cautious but it is reliable as well. Always use stops and plan for sound risk control when trading the forex.
Forex trading is extremely lucrative but if you don't have a method of managing your position size and risk exposure then it can be really hard on your financial life. Like a boxer, you want to have a strong defense against your opponent which for you is the forex market. Protect yourself at all times and you'll end up a winner in the end.
Source - eHow
How to trade currency online (Forex)
Currency trade know as forex. If you like to know the stock trading or future trading. You may also like to know currency trading. In some way, they are similar, but more risk. On the other hand, more earning in short time.
Instructions:
1) Search online for "currency trade" or "forex". There are many agents all over the world. You don't need to be US to trade "money". But, there are several US companies provide service over sea. For example, "Forex.com", "FCXM.com" and "e-trade". You will find more than this list.
2) Sing up for practice account. Most company provide free practice account with real time market. It is good opportunity for people to know this trading and to see are they fitting to this kind of trading.
3) Also read all the learning information on the web site. You must read through the learning material. Most of them you may know if you familiar with stock trading or some other online trading. But you still need to read. Currency trading is much high risk than other trading.
4) After you have basic knowledge and try with your practice account. You than make the decision to start trading on real market or just go away.
Tips and Warnings:
Not every one enjoy the forex. SO it is ok to give up after practice account. It is very high risk trading, don't sign up real market without test in practice account.
Source - eHow
Instructions:
1) Search online for "currency trade" or "forex". There are many agents all over the world. You don't need to be US to trade "money". But, there are several US companies provide service over sea. For example, "Forex.com", "FCXM.com" and "e-trade". You will find more than this list.
2) Sing up for practice account. Most company provide free practice account with real time market. It is good opportunity for people to know this trading and to see are they fitting to this kind of trading.
3) Also read all the learning information on the web site. You must read through the learning material. Most of them you may know if you familiar with stock trading or some other online trading. But you still need to read. Currency trading is much high risk than other trading.
4) After you have basic knowledge and try with your practice account. You than make the decision to start trading on real market or just go away.
Tips and Warnings:
Not every one enjoy the forex. SO it is ok to give up after practice account. It is very high risk trading, don't sign up real market without test in practice account.
Source - eHow
How to Trade Forex With the Big Banks
Foreign exchange, Forex and FX are all names for the same thing: trading currencies. The Forex market is the largest in the world, trading over $3 trillion every day, according to ForexTrading.com. Trading within the intrabank network allows for the narrowest spreads and highest liquidity (the spread is the difference between the best buy and sell price). Banks trade within Electronic Communication Networks, or ECNs, which connect the world's leading banks together. Currently, Currenex was voted by Global Finance as the best FX Bank Trading System. It won the award as it offers prices from 70 of the world's biggest banks. To trade within this network, all one has to do is open an account with a FOREX firm where its trades are all routed to Currenex.
Instructions:
1) Visit the Currenex website to find Forex firms that use the Currenex network (see Resources). Research "White Label Partners" and request an account that trades directly within the Currenex network, or with Currenex itself.
2) Choose a broker by evaluating their demo platform product and reviewing their commission structures. Forex brokers offer varying platforms. Some offer more robust charting software than others, and the appearance of their price quotes and order entry systems may differ. Basically, you get what you pay for; brokers with low commissions tend to have low-end platforms as well.
3) Check account minimums and fund your account accordingly.
4) Use trading platform to place trades within the intrabank network.
Tips and Warnings:
ECNs offer floating spreads. This means that the spreads of each currency pair will change. During times of increased market action, liquidity will increase and spreads will tighten, allowing for the best order executions. During times of important economic news releases, spreads can widen and move rapidly. Trading during this time may lead to receiving filled orders at unexpected prices.
Source - eHow
Instructions:
1) Visit the Currenex website to find Forex firms that use the Currenex network (see Resources). Research "White Label Partners" and request an account that trades directly within the Currenex network, or with Currenex itself.
2) Choose a broker by evaluating their demo platform product and reviewing their commission structures. Forex brokers offer varying platforms. Some offer more robust charting software than others, and the appearance of their price quotes and order entry systems may differ. Basically, you get what you pay for; brokers with low commissions tend to have low-end platforms as well.
3) Check account minimums and fund your account accordingly.
4) Use trading platform to place trades within the intrabank network.
Tips and Warnings:
ECNs offer floating spreads. This means that the spreads of each currency pair will change. During times of increased market action, liquidity will increase and spreads will tighten, allowing for the best order executions. During times of important economic news releases, spreads can widen and move rapidly. Trading during this time may lead to receiving filled orders at unexpected prices.
Source - eHow
How to Trade the Forex With Fractals
Fractals enjoy a special place in the field of mathematics, and have delighted mathematicians and lay-people alike with their captivating patterns and colors. In the investing world, a fractal does not refer to these specific formulaic structures. As a chart pattern on forex charts, a fractal is a simple method of identifying turning points in a trend. Traders use these fractals to participate in price reversals for a profit.
Instructions:
1) Look at a candlestick or bar chart in any trading platform or other charting software. Identify any areas where price reversed to the up-side or down-side.
2) Compare these turning points with two bars on each side of the reversal. A down fractal pattern exists if it presents a high point in the middle of the pattern with two lower highs on both sides. Similarly, a five-bar pattern with the lowest point in the middle and higher lows on each side represents a bullish fractal with an expected reversal to the up-side.
3) Combine the implication of the fractal pattern with another technical indicator for verification. Investopedia notes the popularity of the "Alligator indicator" for use with fractal patterns. This tool is based on a set of three moving averages. Fractal signals which occur above or below the center line in this system are considered valid, while other fractal signals are ignored. For example, a bullish turning point that displays below the "alligator's teeth" (the center line) carries more weight than one which does not coincide with this additional signal.
4) Implement an additional technical indicator to provide the most valid confirmation of the fractal pattern. A common indicator which works well in fractal analysis is the Fibonacci tool. This chart study applies ratio analysis to determine extreme price swings. When a bearish fractal turning point appears at a high Fibonacci extreme, the implication is particularly powerful. Some traders use both moving averages and Fibonacci levels with fractals to offer fewer, but more reliable, trading signals.
5) Draw a trend line between fractal pattern centers to analyze overall market structure. The traditional "Dow Theory" introduced by Charles Dow in the 19th century simply states that an uptrend is characterized by higher highs and higher lows. By only using highs and lows that are generated by true five-bar fractal patterns, the clarity of a trend line is more obvious This makes it particularly easy to identify the strength of a trend and when the trend may slow or stop due to a break in the line.
Tips and Warnings:
Always study a new chart pattern and technique extensively before committing real money to any strategy. It is important to gain experience with these patterns as they develop in real-time so there are no surprises in their behavior.
Source - eHow
Instructions:
1) Look at a candlestick or bar chart in any trading platform or other charting software. Identify any areas where price reversed to the up-side or down-side.
2) Compare these turning points with two bars on each side of the reversal. A down fractal pattern exists if it presents a high point in the middle of the pattern with two lower highs on both sides. Similarly, a five-bar pattern with the lowest point in the middle and higher lows on each side represents a bullish fractal with an expected reversal to the up-side.
3) Combine the implication of the fractal pattern with another technical indicator for verification. Investopedia notes the popularity of the "Alligator indicator" for use with fractal patterns. This tool is based on a set of three moving averages. Fractal signals which occur above or below the center line in this system are considered valid, while other fractal signals are ignored. For example, a bullish turning point that displays below the "alligator's teeth" (the center line) carries more weight than one which does not coincide with this additional signal.
4) Implement an additional technical indicator to provide the most valid confirmation of the fractal pattern. A common indicator which works well in fractal analysis is the Fibonacci tool. This chart study applies ratio analysis to determine extreme price swings. When a bearish fractal turning point appears at a high Fibonacci extreme, the implication is particularly powerful. Some traders use both moving averages and Fibonacci levels with fractals to offer fewer, but more reliable, trading signals.
5) Draw a trend line between fractal pattern centers to analyze overall market structure. The traditional "Dow Theory" introduced by Charles Dow in the 19th century simply states that an uptrend is characterized by higher highs and higher lows. By only using highs and lows that are generated by true five-bar fractal patterns, the clarity of a trend line is more obvious This makes it particularly easy to identify the strength of a trend and when the trend may slow or stop due to a break in the line.
Tips and Warnings:
Always study a new chart pattern and technique extensively before committing real money to any strategy. It is important to gain experience with these patterns as they develop in real-time so there are no surprises in their behavior.
Source - eHow
The Best Times to Trade Forex
Forex trading involves substantial risk of loss and is not suitable for all investors. Forex, the market where international currencies are traded, is open for trading 24 hours a day, five days a week. But not all times are ideal for trading as there are some optimal times to trade Forex.
Liquidity and Volatility
During what times is the market most liquid? In other words, when is it easiest to enter and exit positions? And, during what times is the currency you're trading the most volatile? (Volatility is how much price changes in a specific period of time. The answer to these questions depends on the day of the week and the time of day the trading is occurring.
A Day to Avoid
If your strategy depends on recent intraday price history, and your broker is based in the U.S., consider staying out of the market on Sunday. U.S. brokers miss one hour of trading every Sunday, so their charts are less than completely accurate. Sign on with a non-U.S. broker, such as Alpari (UK) or Dukascopy, to solve this problem.
Best Times of the Day to Trade
Learn the start and end times of the different sessions:
London session hours are 8:00 to 17:00 GMT. New York session, 13:00 to 22:00 GMT; Sydney, 22:00 to 7:00 GMT and Tokyo, midnight to 9:00 GMT.
Understand that these times are only guidelines; London traders may start their day earlier than 8:00, for example. Get aware of this by watching price action closely about an hour before the stated session start time. Watch especially the length of the candle, regardless of the timeframe(s) you trades on. Candle length grows noticeably when London and New York sessions start, and shrinks when they end.
If you like high volatility and liquidity, trade when the most volatile sessions--London and New York--overlap: 13:00 to 17:00 GMT. If you prefer times when price is less likely to shatter your stop loss, trade during the low volatility Sydney or Tokyo sessions.
Avoid Newstime
Another factor to consider is news time. The bigger potential impact that a news event has on the currency pair you're trading, the wiser it is to wait until after the news has passed before you take a position. This is especially true of the Non Farm Payroll (NFP) report, usually released on the first Friday of each month. Even veteran traders avoid NFP, because volatility may jump to several times the average, and price direction can change violently. Wait at least five minutes after NFP's release before trading.
Also, in the hours before a news event, price may range in anticipation of the news. Use a range-oriented strategy if you want to trade such times.
Ultimately, your trading strategy and temperament will determine the best time to trade. Find your best time by first backtesting your strategy during as many different times as possible. Do at least two full months of backtesting before forward testing your strategy on a demo account.
Source - eHow
Liquidity and Volatility
During what times is the market most liquid? In other words, when is it easiest to enter and exit positions? And, during what times is the currency you're trading the most volatile? (Volatility is how much price changes in a specific period of time. The answer to these questions depends on the day of the week and the time of day the trading is occurring.
A Day to Avoid
If your strategy depends on recent intraday price history, and your broker is based in the U.S., consider staying out of the market on Sunday. U.S. brokers miss one hour of trading every Sunday, so their charts are less than completely accurate. Sign on with a non-U.S. broker, such as Alpari (UK) or Dukascopy, to solve this problem.
Best Times of the Day to Trade
Learn the start and end times of the different sessions:
London session hours are 8:00 to 17:00 GMT. New York session, 13:00 to 22:00 GMT; Sydney, 22:00 to 7:00 GMT and Tokyo, midnight to 9:00 GMT.
Understand that these times are only guidelines; London traders may start their day earlier than 8:00, for example. Get aware of this by watching price action closely about an hour before the stated session start time. Watch especially the length of the candle, regardless of the timeframe(s) you trades on. Candle length grows noticeably when London and New York sessions start, and shrinks when they end.
If you like high volatility and liquidity, trade when the most volatile sessions--London and New York--overlap: 13:00 to 17:00 GMT. If you prefer times when price is less likely to shatter your stop loss, trade during the low volatility Sydney or Tokyo sessions.
Avoid Newstime
Another factor to consider is news time. The bigger potential impact that a news event has on the currency pair you're trading, the wiser it is to wait until after the news has passed before you take a position. This is especially true of the Non Farm Payroll (NFP) report, usually released on the first Friday of each month. Even veteran traders avoid NFP, because volatility may jump to several times the average, and price direction can change violently. Wait at least five minutes after NFP's release before trading.
Also, in the hours before a news event, price may range in anticipation of the news. Use a range-oriented strategy if you want to trade such times.
Ultimately, your trading strategy and temperament will determine the best time to trade. Find your best time by first backtesting your strategy during as many different times as possible. Do at least two full months of backtesting before forward testing your strategy on a demo account.
Source - eHow
The Best Way to Trade Forex on Daily Charts
If you are interested in trading on the Forex, but don't have much time to dedicate to it, then you might be interested in learning how to trade on the daily charts. This requires little time because you don't have to sit and watch each tick; you can just spend five minutes reviewing the daily charts and then place your orders, stop losses and profit targets.
Get a Trading System
Find a trading system that works for you. A good place to start your research is at ForexPeaceArmy.com or EliteTrader.com. These are both well-known trading forums that offer independent third-party reviews of software programs and trading systems. Affiliate links aren't allowed, so for the most part you are getting unbiased opinions. A couple of systems on the daily charts that work well and you might consider are MarketClub for Smart Traders and Stealth Forex.
Use the 2-Period RSI
Use a 2-period RSI (relative strength indicator). A well-known trader named Larry Connors did 10 years of statistical back-testing with this indicator and found that when it is below 10, there is a statistical edge that the markets will move up. Likewise, when the RSI is above 90 it, will likely move down. Couple this with a good entry system and you have a viable trading system.
Use the Daily With Weekly Charts
Use the daily and the weekly time frames to trade with. Use the weekly charts to to determine the trend and the daily charts for entry and exit signals. In other words, look at your trading system and if it indicates a "buy" signal on the weekly charts, then look at the daily charts and only take buy signals. Likewise, if the weekly charts say to sell, only take sell signals on the daily charts.
Making It Work
Put it all together. When you have a buy signal on the weekly charts, then move to the daily charts. If you have a buy signal there, look at the 2-period RSI. If its last low was below 10, take the signal; if not, ignore it. If you have a sell signal on the weekly chart, look for sell signals on the daily chart. If you have a signal, look to the 2-period RSI, and if the last high reading was 90 or above, take the signal; if not, ignore it.
Find the Best Pairs
Choose your pairs. This trading system generally works well with the following Forex pairs: EUR/USD, GBP/USD, USD/CHF, USD/JPY, AUD/USD, NZD/USD, EUR/JPY and GBP/JPY.
Source - eHow
Get a Trading System
Find a trading system that works for you. A good place to start your research is at ForexPeaceArmy.com or EliteTrader.com. These are both well-known trading forums that offer independent third-party reviews of software programs and trading systems. Affiliate links aren't allowed, so for the most part you are getting unbiased opinions. A couple of systems on the daily charts that work well and you might consider are MarketClub for Smart Traders and Stealth Forex.
Use the 2-Period RSI
Use a 2-period RSI (relative strength indicator). A well-known trader named Larry Connors did 10 years of statistical back-testing with this indicator and found that when it is below 10, there is a statistical edge that the markets will move up. Likewise, when the RSI is above 90 it, will likely move down. Couple this with a good entry system and you have a viable trading system.
Use the Daily With Weekly Charts
Use the daily and the weekly time frames to trade with. Use the weekly charts to to determine the trend and the daily charts for entry and exit signals. In other words, look at your trading system and if it indicates a "buy" signal on the weekly charts, then look at the daily charts and only take buy signals. Likewise, if the weekly charts say to sell, only take sell signals on the daily charts.
Making It Work
Put it all together. When you have a buy signal on the weekly charts, then move to the daily charts. If you have a buy signal there, look at the 2-period RSI. If its last low was below 10, take the signal; if not, ignore it. If you have a sell signal on the weekly chart, look for sell signals on the daily chart. If you have a signal, look to the 2-period RSI, and if the last high reading was 90 or above, take the signal; if not, ignore it.
Find the Best Pairs
Choose your pairs. This trading system generally works well with the following Forex pairs: EUR/USD, GBP/USD, USD/CHF, USD/JPY, AUD/USD, NZD/USD, EUR/JPY and GBP/JPY.
Source - eHow
5.10.11
How to find a Forex web site that helps you trade the forex currency market
If you trade the Forex markets or want to learn how to trade you need a good web site that helps with forex news and information.
Instructions:
1) A good forex web site will provide you with daily news in the currency markets since it is a 24 hour market. This will help you decide when to place short term forex trades. One of the things I find helpful is make a list of the news times that break each week. Most good forex web sites will update daily on the news and when important news is released. One such news event is the U.S. non farm payroll which has a big effect on the forex market. Forex web sites will project what they think the report will say and what trades will be effected but the news.
2) Most Forex broker sites have a news feed that comes along with the trading platform. This is very helpful if your a short term forex trader. It is important that the FX site has live updating charts in many of the world's currencies. Remember that there are different time zones to deal with in the market. Each site is different but most of the forex sites will show the different time zones and when they are most active in trading. The site should have a currency converter this can be very helpful.
3) Another good resource to look for is a daily calendar that shows the times of the forex news release and what time zone it is in. The site should give FX news that is relevant to the FX market not just news releases but general information on the world banks and different forex brokers.
Most web sites also include charting tools to calculate pivot points and support and resistance areas for different currency pairs. Sites such as Bloomberg and fxstreet are excellent at helping the Forex trader learn how to trade the currency markets. The forex site should have a forum and live chat room with active traders to help in making your trading decisions.
Source - eHow
Instructions:
1) A good forex web site will provide you with daily news in the currency markets since it is a 24 hour market. This will help you decide when to place short term forex trades. One of the things I find helpful is make a list of the news times that break each week. Most good forex web sites will update daily on the news and when important news is released. One such news event is the U.S. non farm payroll which has a big effect on the forex market. Forex web sites will project what they think the report will say and what trades will be effected but the news.
2) Most Forex broker sites have a news feed that comes along with the trading platform. This is very helpful if your a short term forex trader. It is important that the FX site has live updating charts in many of the world's currencies. Remember that there are different time zones to deal with in the market. Each site is different but most of the forex sites will show the different time zones and when they are most active in trading. The site should have a currency converter this can be very helpful.
3) Another good resource to look for is a daily calendar that shows the times of the forex news release and what time zone it is in. The site should give FX news that is relevant to the FX market not just news releases but general information on the world banks and different forex brokers.
Most web sites also include charting tools to calculate pivot points and support and resistance areas for different currency pairs. Sites such as Bloomberg and fxstreet are excellent at helping the Forex trader learn how to trade the currency markets. The forex site should have a forum and live chat room with active traders to help in making your trading decisions.
Source - eHow
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