Having trouble log in into blogger account lately. Forex is not going anyway at the moment. Up and down it is still at the same level.
Currently I am watching for a certain level in GbpUsd. 1.4650 is the level I am waiting for. Believe it or not, I have not traded this week. Today GU nearly hit my stop order. I am still waiting
Thursday, May 27, 2010
Wednesday, May 26, 2010
Trend, Momentum and Timing
When doing technical analysis on forex. There are 3 factors that need to be properly recognise and use. They are trend, momentum and timing.
Trend
Trend is the tendency of movement to a particular direction. When it is uptrend, the price will move up and vice versa.
Momentum.
Momentum is the strength of movement. The stronger the momentum the stronger the move. When the momentum is finished, it will reverse.
Timing
Timing is when u enter the market. Enter only when the profit to risk ratio is good. Other than that better stay out.
Trend
Trend is the tendency of movement to a particular direction. When it is uptrend, the price will move up and vice versa.
Momentum.
Momentum is the strength of movement. The stronger the momentum the stronger the move. When the momentum is finished, it will reverse.
Timing
Timing is when u enter the market. Enter only when the profit to risk ratio is good. Other than that better stay out.
Foreign exchange market is different from the stock market
The foreign exchange market is also known as the FX market, and the forex market. Trading that takes place between two counties with different currencies is the basis for the fx market and the background of the trading in this market. The forex market is over thirty years old, established in the early 1970’s. The forex market is one that is not based on any one business or investing in any one business, but the trading and selling of currencies.
The difference between the stock market and the forex market is the vast trading that occurs on the forex market. There is millions and millions that are traded daily on the forex market, almost two trillion dollars is traded daily. The amount is much higher than the money traded on the daily stock market of any country. The forex market is one that involves governments, banks, financial institutions and those similar types of institutions from other countries. The
What is traded, bought and sold on the forex market is something that can easily be liquidated, meaning it can be turned back to cash fast, or often times it is actually going to be cash. From one currency to another, the availability of cash in the forex market is something that can happen fast for any investor from any country.
The difference between the stock market and the forex market is that the forex market is global, worldwide. The stock market is something that takes place only within a country. The stock market is based on businesses and products that are within a country, and the forex market takes that a step further to include any country.
The stock market has set business hours. Generally, this is going to follow the business day, and will be closed on banking holidays and weekends. The forex market is one that is open generally twenty four hours a day because the vast number of countries that are involved in forex trading, buying and selling are located in so many different times zones. As one market is opening, another countries market is closing. This is the continual method of how the forex market trading occurs.
The stock market in any country is going to be based on only that countries currency, say for example the Japanese yen, and the Japanese stock market, or the United States stock market and the dollar. However, in the forex market, you are involved with many types of countries, and many currencies. You will find references to a variety of currencies, and this is a big difference between the stock market and the forex market.
The difference between the stock market and the forex market is the vast trading that occurs on the forex market. There is millions and millions that are traded daily on the forex market, almost two trillion dollars is traded daily. The amount is much higher than the money traded on the daily stock market of any country. The forex market is one that involves governments, banks, financial institutions and those similar types of institutions from other countries. The
What is traded, bought and sold on the forex market is something that can easily be liquidated, meaning it can be turned back to cash fast, or often times it is actually going to be cash. From one currency to another, the availability of cash in the forex market is something that can happen fast for any investor from any country.
The difference between the stock market and the forex market is that the forex market is global, worldwide. The stock market is something that takes place only within a country. The stock market is based on businesses and products that are within a country, and the forex market takes that a step further to include any country.
The stock market has set business hours. Generally, this is going to follow the business day, and will be closed on banking holidays and weekends. The forex market is one that is open generally twenty four hours a day because the vast number of countries that are involved in forex trading, buying and selling are located in so many different times zones. As one market is opening, another countries market is closing. This is the continual method of how the forex market trading occurs.
The stock market in any country is going to be based on only that countries currency, say for example the Japanese yen, and the Japanese stock market, or the United States stock market and the dollar. However, in the forex market, you are involved with many types of countries, and many currencies. You will find references to a variety of currencies, and this is a big difference between the stock market and the forex market.
Forex trading, where do customers go?
Forex trading uses currency and stock markets from a variety of countries to create a trading market where millions and millions are traded and exchanged daily. This market is similar to the stock market, as people buy and sell, but the market and the over all results are much much larger. Those involved in the forex trading markets include the Deutsche bank, UBS, Citigroup, and others such as HSBC, Braclays, Merrill Lynch, JP Morgan Chase, and still others such as Goldman Sachs, ABN Amro, Morgan Stanley, and so on.
To get involved in the forex trading markets, contacting any of these large broker assistance firms is going to be in your best interest. Sure, anyone can get involved in the forex market, but it does take time to learn about what is hot, what is not, and just where you should place your money at this time.
International banks are the markets biggest users on the forex markets, as they have millions of dollars to invest daily, to earn interest and this is just one method of how banks make money on the money you save in their bank. Think about the bank that you deal with all the time. Do you know if you can go there, and obtain money from ‘another’ country if you are heading out on vacation? If not, that bank is most likely not involved in forex trading. If you have to know if your bank is involved in forex trading, you can ask any manager or you can look at the financial information sheets that banks are to report to the public on a quarterly baiss.
If you are new to the forex market, it is important to realize there is no one person or one bank that controls all the trades that occur in the forex markets. Various currencies are traded, and will originate from anywhere in the world. The currencies that are most often traded in the forex markets include those of the US dollar, the Eurozone euro, the Japanese yen, the British pound sterling and the Swiss franc as well as the Australian dollar. These are just a few of the currencies that are traded on the forex markets, with many other counties currencies to be included as well. The main trading centers for the forex trading markets are located in Tokyo, New York and in London but with other smaller trading centers located thought out the world as well.
To get involved in the forex trading markets, contacting any of these large broker assistance firms is going to be in your best interest. Sure, anyone can get involved in the forex market, but it does take time to learn about what is hot, what is not, and just where you should place your money at this time.
International banks are the markets biggest users on the forex markets, as they have millions of dollars to invest daily, to earn interest and this is just one method of how banks make money on the money you save in their bank. Think about the bank that you deal with all the time. Do you know if you can go there, and obtain money from ‘another’ country if you are heading out on vacation? If not, that bank is most likely not involved in forex trading. If you have to know if your bank is involved in forex trading, you can ask any manager or you can look at the financial information sheets that banks are to report to the public on a quarterly baiss.
If you are new to the forex market, it is important to realize there is no one person or one bank that controls all the trades that occur in the forex markets. Various currencies are traded, and will originate from anywhere in the world. The currencies that are most often traded in the forex markets include those of the US dollar, the Eurozone euro, the Japanese yen, the British pound sterling and the Swiss franc as well as the Australian dollar. These are just a few of the currencies that are traded on the forex markets, with many other counties currencies to be included as well. The main trading centers for the forex trading markets are located in Tokyo, New York and in London but with other smaller trading centers located thought out the world as well.
Tuesday, May 25, 2010
Investing in Forex
Investing in foreign currencies is a relatively new avenue of investing. There are considerably fewer people are aware of this market than there are people aware of several other avenues of investing. Trading foreign currency, also known as forex, is the most lucrative investment market that exists. There are several factors that make this true among which, successful forex traders earn realistic profits of one hundred plus percent each month. Compared to some of the better known investment markets such as corporate stocks, this is an unheard of return on investment. It’s very necessary to mention here that a person who invests in forex must, without exception, make it a point to learn the detailed, but simple strategies and information surrounding the market. This very fact is what makes the difference between successful forex traders and other traders.
A few additional points, which create such powerful leverage for investors within the forex market are: The amount of capital required to begin investing in the market is only three hundred dollars. For the most part, any other investment market is going to demand thousands of dollars of the investor in the beginning. Also, the market offers opportunities to profit regardless what the direction of the market may be; In most commonly known markets investors sit and wait for the market to begin an up trend before entering a trade. Even then, investors, as a rule must sit and wait some more to be able to exit the trade with a nice profit. Given that the forex market produces several up, down, and sideways trends in a single day, it can easily be seen that forex stands head and shoulders above other markets. Additionally there are trading strategies, which are taught that provide for compounded profits; these are profits on top of profits. In addition, free demo accounts are available within the industry of forex trading, which facilitate the sharpening of skills without the risk losing any capital. And the advantage regarding the time factor in trading foreign currency is a very attractive point for any investor. Compared to one of the most sought after avenues of investing, which often requires forty or more hours each week, namely in the real-estate market, the forex market requires a much smaller demand on the investor’s time. Forex trading requires approximately ten to fifteen hours each week to earn a full time income. It’s easy to see that the advantages and great leverage that exist in the forex market, make it among the most lucrative, time liberating, and easy to enter by far.
I hope this information gives you a clear understanding of how you can turn your investing into a true method of making your money work harder for you.
by Joe Clinton
A few additional points, which create such powerful leverage for investors within the forex market are: The amount of capital required to begin investing in the market is only three hundred dollars. For the most part, any other investment market is going to demand thousands of dollars of the investor in the beginning. Also, the market offers opportunities to profit regardless what the direction of the market may be; In most commonly known markets investors sit and wait for the market to begin an up trend before entering a trade. Even then, investors, as a rule must sit and wait some more to be able to exit the trade with a nice profit. Given that the forex market produces several up, down, and sideways trends in a single day, it can easily be seen that forex stands head and shoulders above other markets. Additionally there are trading strategies, which are taught that provide for compounded profits; these are profits on top of profits. In addition, free demo accounts are available within the industry of forex trading, which facilitate the sharpening of skills without the risk losing any capital. And the advantage regarding the time factor in trading foreign currency is a very attractive point for any investor. Compared to one of the most sought after avenues of investing, which often requires forty or more hours each week, namely in the real-estate market, the forex market requires a much smaller demand on the investor’s time. Forex trading requires approximately ten to fifteen hours each week to earn a full time income. It’s easy to see that the advantages and great leverage that exist in the forex market, make it among the most lucrative, time liberating, and easy to enter by far.
I hope this information gives you a clear understanding of how you can turn your investing into a true method of making your money work harder for you.
by Joe Clinton
Forex Is About Trading...
The truth is Forex is about trading. It is not something that you can sell. Now lots of people claims to have a good Forex system and selling it over the internet. Where is the logic in that.
Imagine you have a Forex system that consistently giving you wining trades. The probability is so high that you are willing to and have succesfully trade up to 50% of your capital. Because of its high winning ratio, your accout grows more than 100% a month. Would you sell that system or would you just keep it to yourself.
Would you go to the trouble of doing marketing, SEO, website, selling pages and payment processor? Is it easier to just trade it by yourself? Is it worth it to sell something that is a winning system?
In my hands I have a winning system. I am not willing to sell it or even to share it. I am however looking for 2 students whom I will teach the system and let them trade it. If the 2 students make profit, I am sure what I have now is a winner Forex system and it will be my best kept secrets. It will not be written anywhere but inside my head.
The next time you meet someone who claims to have a good Forex system and trying to sell it to you, maybe you can ask him the same question. Why sell it for money when the Forex system itself can generate money for you, lots of it forever.
Imagine you have a Forex system that consistently giving you wining trades. The probability is so high that you are willing to and have succesfully trade up to 50% of your capital. Because of its high winning ratio, your accout grows more than 100% a month. Would you sell that system or would you just keep it to yourself.
Would you go to the trouble of doing marketing, SEO, website, selling pages and payment processor? Is it easier to just trade it by yourself? Is it worth it to sell something that is a winning system?
In my hands I have a winning system. I am not willing to sell it or even to share it. I am however looking for 2 students whom I will teach the system and let them trade it. If the 2 students make profit, I am sure what I have now is a winner Forex system and it will be my best kept secrets. It will not be written anywhere but inside my head.
The next time you meet someone who claims to have a good Forex system and trying to sell it to you, maybe you can ask him the same question. Why sell it for money when the Forex system itself can generate money for you, lots of it forever.
Monday, May 24, 2010
Market Not active
For the past 2 weeks the market is not very active. Just now its starting to move. When the market is not active I rarely trade and even if I do trade it would be small TP and SL. At the moment I have 2 post newly open. Its in profit now just hoping for a bigger return.
When the market is not active, I do other things. In these 2 weeks, I have upgraded my pc and car. Pc and cars are my hobby now.
My PC:
At the moment I have 2 desktop and 1 laptop. I wanted to buy a new pc but if I do buy a new pc I will have 3 desktop which is an overkill for me alone. Im not about to open a cyber cafe at my home.
Upgrade Spec
1. Abit AN9 32X RM570.00
2. AMD Athlon X2 +4000 RM235.00
3. Kingston 1GB DDR2 X2 RM278.00
4. Geforce 8600GT RM395.00
5. 350W Power Supply RM110.00
My pc upgrade cost me RM 1,588.00
My car:
I also upgraded my car ekzos system and intake system. It is an upgrade long overdue since the original piping already have holes here and there.
Upgrade Spec
1. Complete ekzos system + muffler RM305.00
2. Intake pipe + K&N filter RM400.00
3. New Head Unit. Now can play SD directly RM398.00
My car upgrade RM 1,103.00
guess what, at the moment it is much cheaper to upgrade your car compare to upgrading a pc.
Then I was looking around the net and found this website. It sells magnetic bracelet. Sort of Bio Magnetic Therapy. I go and buy one and wear it. The first time I wear it, I felt dizzy like I was drunk of something. I cannot even smoke cigarette any more. That night I had a good night sleep. The best sleep since a long time. Its like someone switch off the power. The next morning its all good. Looks like Bio Magnet Therapy really works. The bracelet is good looking, it give you bio magnetic therapy and also its a MLM business. Personally I dont do MLM anymore but since the bracelet is giving you a chance to actually make money, its a very good deal. Not only does it looks good, it keeps you healty and give you good opportunity make money.
When the market is not active, I do other things. In these 2 weeks, I have upgraded my pc and car. Pc and cars are my hobby now.
My PC:
At the moment I have 2 desktop and 1 laptop. I wanted to buy a new pc but if I do buy a new pc I will have 3 desktop which is an overkill for me alone. Im not about to open a cyber cafe at my home.
Upgrade Spec
1. Abit AN9 32X RM570.00
2. AMD Athlon X2 +4000 RM235.00
3. Kingston 1GB DDR2 X2 RM278.00
4. Geforce 8600GT RM395.00
5. 350W Power Supply RM110.00
My pc upgrade cost me RM 1,588.00
My car:
I also upgraded my car ekzos system and intake system. It is an upgrade long overdue since the original piping already have holes here and there.
Upgrade Spec
1. Complete ekzos system + muffler RM305.00
2. Intake pipe + K&N filter RM400.00
3. New Head Unit. Now can play SD directly RM398.00
My car upgrade RM 1,103.00
guess what, at the moment it is much cheaper to upgrade your car compare to upgrading a pc.
Then I was looking around the net and found this website. It sells magnetic bracelet. Sort of Bio Magnetic Therapy. I go and buy one and wear it. The first time I wear it, I felt dizzy like I was drunk of something. I cannot even smoke cigarette any more. That night I had a good night sleep. The best sleep since a long time. Its like someone switch off the power. The next morning its all good. Looks like Bio Magnet Therapy really works. The bracelet is good looking, it give you bio magnetic therapy and also its a MLM business. Personally I dont do MLM anymore but since the bracelet is giving you a chance to actually make money, its a very good deal. Not only does it looks good, it keeps you healty and give you good opportunity make money.
Saturday, May 22, 2010
A Good Start
Here is a hint to those starting in Forex. Take a good scalping system that you can find in the internet, use that system to trade on longer timeframe like 4hours or daily. If the system is good on short timeframe it would be better on longer timeframe.
You will have yourself a price action system. Which means you dont have to forecast anything. You will trade based on price action and you will have little to no stop loss. Try it
You will have yourself a price action system. Which means you dont have to forecast anything. You will trade based on price action and you will have little to no stop loss. Try it
Friday, May 21, 2010
UJ strength is broken
From the way i see it. Usd/Jpy strength is broken but the uptrend is still intact. Anyone care for a high risk entry??
Short UJ @ 123.70 or better
Stop Loss : On your own
Target : This is going to be a big one
And before i forget, EurJpy and GbpJpy is riding on the trendline. Not broken yet but if all goes well we will see it broken by tonight. Then we have the usual ranging market before a new trend is born.
Happy trading.
Short UJ @ 123.70 or better
Stop Loss : On your own
Target : This is going to be a big one
And before i forget, EurJpy and GbpJpy is riding on the trendline. Not broken yet but if all goes well we will see it broken by tonight. Then we have the usual ranging market before a new trend is born.
Happy trading.
Thursday, May 20, 2010
Ranging Market
For the past 2 weeks, forex has enter the ranging mode. Ive been busy with work since I have a day time job. Merdeka celebration is coming and I am going to be extra busy. Next week I am going to KL.
As for forex, this week is not so good for me. All my technical is correct just that being unlucky sometimes. My position of long GU and GJ both hit SL on the last dip. I can never imagine it can go down that much. Thanks for EG, I manage to cover my lost and made a little profit.
Back to technical analysis, GJ has made it top at 244.06 and there is a reversal sign. GU it seems has not reached it top. There is some room to go before a reversal can be considered. Look for formation of double top and watch out for its strength. Im not going to give signal since I do not have time to trade. If I do enter the market it would be touch and go or thru stop order with sl (which is very difficult to judge).
Happy trading, may profit be with you always.
As for forex, this week is not so good for me. All my technical is correct just that being unlucky sometimes. My position of long GU and GJ both hit SL on the last dip. I can never imagine it can go down that much. Thanks for EG, I manage to cover my lost and made a little profit.
Back to technical analysis, GJ has made it top at 244.06 and there is a reversal sign. GU it seems has not reached it top. There is some room to go before a reversal can be considered. Look for formation of double top and watch out for its strength. Im not going to give signal since I do not have time to trade. If I do enter the market it would be touch and go or thru stop order with sl (which is very difficult to judge).
Happy trading, may profit be with you always.
Wednesday, May 19, 2010
What Forex Taught Me??
In my 1 year of trading forex I have learnt a lot about forex. There are some qualities that is needed in a traders. From my experience these are some of them:
1. No Ego
Ego is when you dont want to admit that you have made a mistake. In forex, mistakes are common. It is very hard to forecast something that has a lot of factors involve. If you have made a mistake, admit it and turn your position if you see fit. If you dont want to admit your mistakes, you will end up broke
2. The Future is unknown
That is the truth the hard truth. Unless you can see the future like the movie next we are all the same. There are some people with skills that can forecast the movement of forex and make money but the truth is, its too high of a risk. Better to trade based on price action
1. No Ego
Ego is when you dont want to admit that you have made a mistake. In forex, mistakes are common. It is very hard to forecast something that has a lot of factors involve. If you have made a mistake, admit it and turn your position if you see fit. If you dont want to admit your mistakes, you will end up broke
2. The Future is unknown
That is the truth the hard truth. Unless you can see the future like the movie next we are all the same. There are some people with skills that can forecast the movement of forex and make money but the truth is, its too high of a risk. Better to trade based on price action
How The Market Move???
After looking at charts for over 1 year now, I have made a conclusion on how the market move. It may differ from other people point of view but at least this is how I made profit or loss in Forex Market.
The Market generally move once or the most twice a day. That is how much Forex market move. There is no point on being stuck in front of the pc the whole day since it will only move once. If you dont belive me look at any pair in timeframe 1 hour or less. Forex doesnt move in straight line but it has a tendency of moving to a particular direction in a zig zag motion.
The idea is to develop a system or set of indicators that will give you an entry early enough for you to profit when the market makes its move. There is no way you can tell the move before its moving. The price must move at least a little to a particular direction before you signal is triggered. Then you enter the market and take the remaining move.
The system must only give you signal once a day or twice the most. Because its a daily trade dont expect much. Sometimes condition are bad even 5 pip is enough. You must remember that if you are trading less than 1 billion you are small fish in the sea. Take what you need and leave or else get eaten by the big fish.
In developing the system that will take advantage of Forex movement characteristic, I sense that I have succeeded. I have a system that will give signal only once a day or twice the most. Like most Forex system in the world, there are difficulty finding the right entry and exit point. An entry and exit that will give you the most out of the move before it will retrace.
In the end, its about how and when you enter. There are no room for mistakes here since mistakes are costly. From the very 1st trade you make till the last trade, the risks are all the same. Experience is an advantage but its not an insurance. Once everything turns bad, there is no saving you.
Welcome to the World of Forex
The Market generally move once or the most twice a day. That is how much Forex market move. There is no point on being stuck in front of the pc the whole day since it will only move once. If you dont belive me look at any pair in timeframe 1 hour or less. Forex doesnt move in straight line but it has a tendency of moving to a particular direction in a zig zag motion.
The idea is to develop a system or set of indicators that will give you an entry early enough for you to profit when the market makes its move. There is no way you can tell the move before its moving. The price must move at least a little to a particular direction before you signal is triggered. Then you enter the market and take the remaining move.
The system must only give you signal once a day or twice the most. Because its a daily trade dont expect much. Sometimes condition are bad even 5 pip is enough. You must remember that if you are trading less than 1 billion you are small fish in the sea. Take what you need and leave or else get eaten by the big fish.
In developing the system that will take advantage of Forex movement characteristic, I sense that I have succeeded. I have a system that will give signal only once a day or twice the most. Like most Forex system in the world, there are difficulty finding the right entry and exit point. An entry and exit that will give you the most out of the move before it will retrace.
In the end, its about how and when you enter. There are no room for mistakes here since mistakes are costly. From the very 1st trade you make till the last trade, the risks are all the same. Experience is an advantage but its not an insurance. Once everything turns bad, there is no saving you.
Welcome to the World of Forex
Monday, May 17, 2010
Forex Trade 23 April 2010
Today is a good day to trade. I still have 2 position open which I will put stop loss later.
Total Trade Closed = +45 pip
Reason Closed = When you trade more than 50% of your capital its called stealing. When you are stealing, take what you can and leave. Dont get caught by the market.
Trade Still Open = +90 pip
Possible trade:
UsdCad is looking good for a long entry @ 1.0430
EurUsd is looking good for a long entry @ 1.3812
UsdJpy is looking to short again? Weird ....
Total Trade Closed = +45 pip
Reason Closed = When you trade more than 50% of your capital its called stealing. When you are stealing, take what you can and leave. Dont get caught by the market.
Trade Still Open = +90 pip
Possible trade:
UsdCad is looking good for a long entry @ 1.0430
EurUsd is looking good for a long entry @ 1.3812
UsdJpy is looking to short again? Weird ....
A Good Start
Here is a hint to those starting in Forex. Take a good scalping system that you can find in the internet, use that system to trade on longer timeframe like 4hours or daily. If the system is good on short timeframe it would be better on longer timeframe.
You will have yourself a price action system. Which means you dont have to forecast anything. You will trade based on price action and you will have little to no stop loss. Try it
You will have yourself a price action system. Which means you dont have to forecast anything. You will trade based on price action and you will have little to no stop loss. Try it
A BASIC SYSTEM
Any system need to have a very good basic to stand on. Once the basic is sort out, then all the accessories can be add on. Just remember not to add too much to it. Today I am going to give a basic system. It consist of only 2 indicators. Being simple, it is able to generate good signal. Just remember to put SL properly.
Indicators:
1. LWMA 55
2. MACD standard setting
Time frame: 30m
Stop Loss : 35 pips
Take Profit : 35 pips or more.
Currencies : EurUsd, GbpUsd, EurJpy, GbpJpy
Trading System:
LWMA act as a thin trend line. If the price is above it, its uptrend. If the price is below it, its downtrend. So you buy or sell according to trend. Never reverse trade. MACD also shows the trend. If MACD is above 0, its uptrend and the other way around.
I have put 3 vertical lines in the chart where MACD cross 0. Once MACD cross 0, you should only trade according to trend. You entry should be on the LWMA 55 or close. At the moment MACD has cross 0 and is heading down. From now on only consider short position. Try to enter as close as possible to LWMA 55.
Caution has to be taken, even though MACD has cross the trend is not yet full down actually. There is another indicator that I use to show trend and its not full down yet. Unfortunately that indicator is no where in the chart because it is not on GbpUsd chart. It is somewhere else.
Now you wonder why its not there. The truth is most people fail because what they are looking for is not there. That is what I meant with looking at the wrong direction. The trend indicator for GbpUsd is not on GbpUsd chart. Weird isnt it?
You can take this basic system and try to add on what ever system you have. Hopefully it is useful. Good Luck
Indicators:
1. LWMA 55
2. MACD standard setting
Time frame: 30m
Stop Loss : 35 pips
Take Profit : 35 pips or more.
Currencies : EurUsd, GbpUsd, EurJpy, GbpJpy
Trading System:
LWMA act as a thin trend line. If the price is above it, its uptrend. If the price is below it, its downtrend. So you buy or sell according to trend. Never reverse trade. MACD also shows the trend. If MACD is above 0, its uptrend and the other way around.
I have put 3 vertical lines in the chart where MACD cross 0. Once MACD cross 0, you should only trade according to trend. You entry should be on the LWMA 55 or close. At the moment MACD has cross 0 and is heading down. From now on only consider short position. Try to enter as close as possible to LWMA 55.
Caution has to be taken, even though MACD has cross the trend is not yet full down actually. There is another indicator that I use to show trend and its not full down yet. Unfortunately that indicator is no where in the chart because it is not on GbpUsd chart. It is somewhere else.
Now you wonder why its not there. The truth is most people fail because what they are looking for is not there. That is what I meant with looking at the wrong direction. The trend indicator for GbpUsd is not on GbpUsd chart. Weird isnt it?
You can take this basic system and try to add on what ever system you have. Hopefully it is useful. Good Luck
Sunday, May 16, 2010
I Missed Most Of It
Last week was a busy week + I have a bad flu. I only manage to trade on Friday last week and got out with a lot of pip. Thank god.
As for next week, opening of next week will be tricky. Last friday we saw a jump on GU, EU, GJ and EJ. That last jump really upset the downtrend. It would be very difficult to trade those pairs now.
Last hope is to use a breakout system. Hopefully next week we can see a clear direction of trade. May many pip be with you.
As for next week, opening of next week will be tricky. Last friday we saw a jump on GU, EU, GJ and EJ. That last jump really upset the downtrend. It would be very difficult to trade those pairs now.
Last hope is to use a breakout system. Hopefully next week we can see a clear direction of trade. May many pip be with you.
Marketiva Scam????
Read some very interesting review on marketiva. It seems that some people classified Marketiva as scam. I dont mind since im still using their $5. To me marketiva is a learning platform. Btw one review for you to read:
"I would not trust any company with no background info. I had asked to see who or what is behind the company before depositing funds. No response. I believe there is some type of long term scam here. Something is not right compared to other brokers. Also it is a bit strange that you can open an acct. with no I.D. Last but not least, beware the glowing reviews of Marketiva spread out on forums. Most if not all of these posts are made by actual Marketiva admins posing fraudulently as investors. You can easily pick them out. They are the ones using obvious marketing slogans and pushing the free $5 for joining. The $5 is just a ploy to sucker in the new trader.The rest of the posts are from those promoting their referral links.I'm of the opinion that Marketiva is a total bucket shop. Like a ponzi, the money from losers lines the pockets of Marketiva and helps pay the few that make a profit. I seriously doubt any investor's money actually makes it onto the market. 95% of traders lose on average. This makes for a profitable business model especially when the investor is essentially trading on a demo account with real money. They know you are very likely to lose, so your money goes into the bucket and you are left blaming a bad market when you lose when in fact, your money never even made it there.Ok, thats enough ranting. Beware Marketiva and do your own research and due diligence checks on any broker you wish to join.Best of luck out there!"
"I would not trust any company with no background info. I had asked to see who or what is behind the company before depositing funds. No response. I believe there is some type of long term scam here. Something is not right compared to other brokers. Also it is a bit strange that you can open an acct. with no I.D. Last but not least, beware the glowing reviews of Marketiva spread out on forums. Most if not all of these posts are made by actual Marketiva admins posing fraudulently as investors. You can easily pick them out. They are the ones using obvious marketing slogans and pushing the free $5 for joining. The $5 is just a ploy to sucker in the new trader.The rest of the posts are from those promoting their referral links.I'm of the opinion that Marketiva is a total bucket shop. Like a ponzi, the money from losers lines the pockets of Marketiva and helps pay the few that make a profit. I seriously doubt any investor's money actually makes it onto the market. 95% of traders lose on average. This makes for a profitable business model especially when the investor is essentially trading on a demo account with real money. They know you are very likely to lose, so your money goes into the bucket and you are left blaming a bad market when you lose when in fact, your money never even made it there.Ok, thats enough ranting. Beware Marketiva and do your own research and due diligence checks on any broker you wish to join.Best of luck out there!"
Friday, May 14, 2010
When You Understand....
It seems that there is a behaviour in all of us. If we do not understand, we will study it. Thats how knowledge begins. We study in order to understand things that are unclear and unknown to us but what happen when we started to understand it?
Once we know how something works, we will not see it as a challenge. For those people that love challenge, they will lose interest. This is because it is no longer something to go after. You already have the answers and started looking somewhere else for new challenges. In the end such people will not accumulate wealth but he will gain knowledge. Knowledge in the end is what matters.
Last week I lose in Forex trading. I will update screenshot when I have the time. It seems to me that I am starting to lose interest in Forex for the above reason. For other reason I will not be trading forex till start of next year. Holiday season is coming, Im going home for a long vacation and forex has started to lose it appeal.
Those of you still struggling to understand it, keep up the work. Its a feeling undescribe by mere words once you have found the answer. At the time of writing we are seeing major turn on 3 pairs which are EurUsd, UsdChf and UsdJpy. Chrismast is coming and it would be a waste of time to trade now. Let us hope a new year wil bring new fortune to us all. Happy holidays everyone.
Once we know how something works, we will not see it as a challenge. For those people that love challenge, they will lose interest. This is because it is no longer something to go after. You already have the answers and started looking somewhere else for new challenges. In the end such people will not accumulate wealth but he will gain knowledge. Knowledge in the end is what matters.
Last week I lose in Forex trading. I will update screenshot when I have the time. It seems to me that I am starting to lose interest in Forex for the above reason. For other reason I will not be trading forex till start of next year. Holiday season is coming, Im going home for a long vacation and forex has started to lose it appeal.
Those of you still struggling to understand it, keep up the work. Its a feeling undescribe by mere words once you have found the answer. At the time of writing we are seeing major turn on 3 pairs which are EurUsd, UsdChf and UsdJpy. Chrismast is coming and it would be a waste of time to trade now. Let us hope a new year wil bring new fortune to us all. Happy holidays everyone.
Thursday, May 13, 2010
INTERNET PROBLEM
Having trouble log in into blogger account lately. Forex is not going anyway at the moment. Up and down it is still at the same level.
Currently I am watching for a certain level in GbpUsd. 1.4650 is the level I am waiting for. Believe it or not, I have not traded this week. Today GU nearly hit my stop order. I am still waiting
Currently I am watching for a certain level in GbpUsd. 1.4650 is the level I am waiting for. Believe it or not, I have not traded this week. Today GU nearly hit my stop order. I am still waiting
EURGBP DROP
Yesterday I wrote about EG connection. Guess what, I took the whole EG drop and run away with it. Right now all live post on EG is closed, profit in the bag :).
I was so confident on EG drop I was betting 50% of my capital on it on 1 post only. Quiet a risk and really worth it. I feel like I just won a horse race :))
EU still up there and there is a killer spike up to 1.3537. Atm I on sideline watching for opportunity.
Fing lol email me on your progress. Really like to hear how you are doing.
I was so confident on EG drop I was betting 50% of my capital on it on 1 post only. Quiet a risk and really worth it. I feel like I just won a horse race :))
EU still up there and there is a killer spike up to 1.3537. Atm I on sideline watching for opportunity.
Fing lol email me on your progress. Really like to hear how you are doing.
Wednesday, May 12, 2010
THE ENDING IS NEAR
1,447 days ago I started to step in the world of Forex. 6th May 2006 is the day I registered my 1st demo account and its a Saturday. Through out my journey in Forex, there are no actual manual, text or books that I can really refer to. Its like an unexplored land with no maps what so ever. There are only guides available online with no one giving specific answer.
Though hard it may be I started to develop my own system and continue to improve on that system. No matter how I try to improve it, there is still something missing. After a long and hard work I finally got the answer. It is an answer that I wasn't willing to accept. So I disappeared for almost 1 year though my part of moving places only took 1 month to settle.
Now I am back trading with the answer in my head thus a new direction in my sight. Turns out it is really easy once you have the right answer. You know the question as well as I do. "WHAT IS FOREX".
I believe my learning period in Forex is almost over. I can now see direction clearly. I know which pair to trade with the highest probability of profit. I know when to exit and I know when to turn off the computer while still holding positions. I have mastered the basic of Forex. The only thing now is discipline and Money Management.
What I am not willing to do is to write in this blog about trading ideas. I may blow out the answer. After almost 4 years, its not something I am willing to give easily. There are no notes, no records, nothing written anywhere on my trading ideas. Its all in my head. My system now is so simple, it consist of only 2 main indicators which I can trade without. Find the answer and its all smooth sailing from there. I just wish I have found it earlier.
For those of you who show interest in my new trading system, thank you for the attention. I have stopped giving out my system due to limited time I have to teach. I dont teach, I dont sell my system, I dont ask for your money and I dont give signals.
You can come and visit this blog. I will give chart analysis from time to time. Dont expect too much coz there is not much in Forex anyway.
Good luck to all of you. Thank you for visiting my blog. For today, do sell GJ coz its going down. You just need to figure out where to enter. Its not an easy task, I know coz Ive been there.
Though hard it may be I started to develop my own system and continue to improve on that system. No matter how I try to improve it, there is still something missing. After a long and hard work I finally got the answer. It is an answer that I wasn't willing to accept. So I disappeared for almost 1 year though my part of moving places only took 1 month to settle.
Now I am back trading with the answer in my head thus a new direction in my sight. Turns out it is really easy once you have the right answer. You know the question as well as I do. "WHAT IS FOREX".
I believe my learning period in Forex is almost over. I can now see direction clearly. I know which pair to trade with the highest probability of profit. I know when to exit and I know when to turn off the computer while still holding positions. I have mastered the basic of Forex. The only thing now is discipline and Money Management.
What I am not willing to do is to write in this blog about trading ideas. I may blow out the answer. After almost 4 years, its not something I am willing to give easily. There are no notes, no records, nothing written anywhere on my trading ideas. Its all in my head. My system now is so simple, it consist of only 2 main indicators which I can trade without. Find the answer and its all smooth sailing from there. I just wish I have found it earlier.
For those of you who show interest in my new trading system, thank you for the attention. I have stopped giving out my system due to limited time I have to teach. I dont teach, I dont sell my system, I dont ask for your money and I dont give signals.
You can come and visit this blog. I will give chart analysis from time to time. Dont expect too much coz there is not much in Forex anyway.
Good luck to all of you. Thank you for visiting my blog. For today, do sell GJ coz its going down. You just need to figure out where to enter. Its not an easy task, I know coz Ive been there.
Tuesday, May 4, 2010
Demo account?
Beginners should always start with a demo account or practice account. Most of the leading currency brokers dealing in fx online trading offer demo account. Account opening is simple – Register on the website of the broker and download currency trading software. It hardly takes few minutes to start trading currencies.
1. What is a Demo account?
Demo account is essentially a practice account where you can do everything that fx trader does in a live fx market.
2. How does a Demo account work?
When you open a demo account, you are allotted a notional sum of 50,000$. Sum varies from broker to broker. Validity of demo account varies from 30 days to 60 days. With this virtual money of 50,000$ you can buy/sell foreign currency in a real fx market without any fear of loss of money.
3. What are the major benefits of a Demo Account?
Demo account is a great way to get a real handle on the features and functionality of fx trading platform of the broker. Demo account is the best option to learn A to Z of foreign exchange trading right from the types of orders up to the technical analysis and currency trading strategies.
Demo account is an ideal solution to get rid of the phobia of getting started with foreign exchange trading.
1. What is a Demo account?
Demo account is essentially a practice account where you can do everything that fx trader does in a live fx market.
2. How does a Demo account work?
When you open a demo account, you are allotted a notional sum of 50,000$. Sum varies from broker to broker. Validity of demo account varies from 30 days to 60 days. With this virtual money of 50,000$ you can buy/sell foreign currency in a real fx market without any fear of loss of money.
3. What are the major benefits of a Demo Account?
Demo account is a great way to get a real handle on the features and functionality of fx trading platform of the broker. Demo account is the best option to learn A to Z of foreign exchange trading right from the types of orders up to the technical analysis and currency trading strategies.
Demo account is an ideal solution to get rid of the phobia of getting started with foreign exchange trading.
Forex brokers
Forex brokers or forex brokerage firms act as an intermediary that facilitates order routing between the buyers and sellers. With rapid development of forex markets, brokers have transformed into full service agencies. Forex brokers offer vast number of innovative features and services instead of just acting as the dealers. Forex brokers fall under two categories – small and medium brokers and large and heavyweights like financial institutions or banks.
If you are a potential investor in the forex currency trading then your first step in the right direction is to choose a reliable forex broker. There are many important factors that need proper due-diligence in order to select professional forex broker. It is indeed a daunting task for the beginners. This article intends to provide a comparison between forex brokers operating in and around UK. Comparison is centered on UK because UK plays a very vital role in the entire global forex markets and due to its dominance in the global forex markets, majority of the forex brokers provide their services in UK.
Table given below shows a comparison of forex brokers based on the most important parameters viz. leverage ratio, pip spread, and minimum deposit. We have selected about a dozen plus leading names from small/medium/large forex brokers who are registered under NFA (National Futures Association, USA) or CFTC (Commodities Futures Trading Commission, USA) or FSA (Financial Services Authority, UK) or any other global regulatory authority.
If you are a potential investor in the forex currency trading then your first step in the right direction is to choose a reliable forex broker. There are many important factors that need proper due-diligence in order to select professional forex broker. It is indeed a daunting task for the beginners. This article intends to provide a comparison between forex brokers operating in and around UK. Comparison is centered on UK because UK plays a very vital role in the entire global forex markets and due to its dominance in the global forex markets, majority of the forex brokers provide their services in UK.
Table given below shows a comparison of forex brokers based on the most important parameters viz. leverage ratio, pip spread, and minimum deposit. We have selected about a dozen plus leading names from small/medium/large forex brokers who are registered under NFA (National Futures Association, USA) or CFTC (Commodities Futures Trading Commission, USA) or FSA (Financial Services Authority, UK) or any other global regulatory authority.
futures trading
Efficient order management, live charts, real time market quotes, commodity forex news and analysis – these are few of the necessary elements required by a trader for commodity forex trading.
Majority of the commodity forex brokers provide fully integrated and customizable futures trading platforms without levying any additional charges or license fees. Some of the brokers may grant free access only for web based or browser based trading software but for java application based software they impose one time license fees or insist on minimum commitment on brokerage business.
What should you expect from futures trading platforms?
Look out for a state of the art futures trading platform that works on application based software and that offers:
* Multi segment platform that can allow trading across various exchanges and markets such as E-Minis, Globex commodities and forex, pit traded commodities and many other global futures markets.
* Live streaming quotes, market depth, multiple market windows, fast, reliable and efficient order management.
* Facilities to trade directly from the charts.
* Surfeit of technical analysis, charting and other analytical tools like options calculator and currency converter to develop trading strategies.
* Real time access to global news, fundamental research and technical analysis.
* Demo version with a demo user id and password. It helps you get a complete idea about various features and functionalities of the futures trading platform.
Majority of the commodity forex brokers provide fully integrated and customizable futures trading platforms without levying any additional charges or license fees. Some of the brokers may grant free access only for web based or browser based trading software but for java application based software they impose one time license fees or insist on minimum commitment on brokerage business.
What should you expect from futures trading platforms?
Look out for a state of the art futures trading platform that works on application based software and that offers:
* Multi segment platform that can allow trading across various exchanges and markets such as E-Minis, Globex commodities and forex, pit traded commodities and many other global futures markets.
* Live streaming quotes, market depth, multiple market windows, fast, reliable and efficient order management.
* Facilities to trade directly from the charts.
* Surfeit of technical analysis, charting and other analytical tools like options calculator and currency converter to develop trading strategies.
* Real time access to global news, fundamental research and technical analysis.
* Demo version with a demo user id and password. It helps you get a complete idea about various features and functionalities of the futures trading platform.
Forex Symbols:
Forex Symbols: There are seven most active currencies on the forex trading markets, besides number of other currencies that are traded sporadically.
1. US Dollar – USD
2. European currency – EURO
3. Japanese Yen – JPY
4. British Sterling Pound – GBP
5. Swiss Franc – CHF
6. Australian Dollar – AUD
7. Canadian Dollar – CAD
Forex Pairs: The term Forex pair may sound intriguing to those of you who are used to stock trading. Why forex in pairs? Well, even in stock trading, indirectly you are trading a pair. When you buy a stock, you are selling your money and vice versa. Similarly when you are trading forex you are buying once currency and selling the other currency. EURO/USD, USD/JPY, GBP/USD and USD/CHF are the most traded forex pairs that churn out the bulk of the daily trillion dollars turn over in global forex trading.
On any forex trading platform, you will find that almost half of the screen is occupied by flashing figures of forex quotes. Dealing rates is the alternate term often prescribed for forex quotes. Prima-Facie you may feel that it is very easy to read forex quotes. However if you are a novice, you may land up with a buy trade instead of a desired sell trade. I would suggest that you must thoroughly understand how the forex rates are quoted on the forex trading platforms.
Let us study an example of USD/JPY. There are essentially two aspects. The first aspect relates to the exchange rate and the second aspect relates to the forex quote as appearing on the screen of forex trading broker.
1. US Dollar – USD
2. European currency – EURO
3. Japanese Yen – JPY
4. British Sterling Pound – GBP
5. Swiss Franc – CHF
6. Australian Dollar – AUD
7. Canadian Dollar – CAD
Forex Pairs: The term Forex pair may sound intriguing to those of you who are used to stock trading. Why forex in pairs? Well, even in stock trading, indirectly you are trading a pair. When you buy a stock, you are selling your money and vice versa. Similarly when you are trading forex you are buying once currency and selling the other currency. EURO/USD, USD/JPY, GBP/USD and USD/CHF are the most traded forex pairs that churn out the bulk of the daily trillion dollars turn over in global forex trading.
On any forex trading platform, you will find that almost half of the screen is occupied by flashing figures of forex quotes. Dealing rates is the alternate term often prescribed for forex quotes. Prima-Facie you may feel that it is very easy to read forex quotes. However if you are a novice, you may land up with a buy trade instead of a desired sell trade. I would suggest that you must thoroughly understand how the forex rates are quoted on the forex trading platforms.
Let us study an example of USD/JPY. There are essentially two aspects. The first aspect relates to the exchange rate and the second aspect relates to the forex quote as appearing on the screen of forex trading broker.
Calculation of Profit and Loss for EURO/USD Trade:
Calculation of Profit and Loss for EURO/USD Trade:
* Buy trade executed at 1.5555 and sell trade executed at 1.5560.
* Profit/Loss = 1.5560 – 1.5555 = 0.0005 OR 5 Pips.
* Since the quote currency (second currency) is USD, profit and loss in USD terms = 0.0005 x 100,000 = 50 USD ALTERNATIVELY profit and loss = 5 Pips x 10 USD =50 USD
* If you are a trader from EURO zone and you wish to calculate your profit and loss in EURO terms then you need to apply basic math. Divide your USD profit and loss by the exchange rate i.e. 1.5560. It works out to 50/1.5560 = 32.13 EURO. This point has been explained just for the academic interest as all the forex trading brokers display your profit and loss in USD terms.
Calculation of Profit and Loss for USD/CHF Trade:
* Buy trade executed at 1.0473 and sell trade executed at 1.0488.
* Profit/Loss = 1.0473 – 1.0488 = 0.0015 OR 15 Pips.
* Since the quote currency (second currency) is CHF (other than USD), profit and loss in USD terms = 0.0015/1.0488 x 100,000 = 143.02 USD.
Calculation of Profit and Loss for USD/JPY Trade:
* Buy trade executed at 108.09 and sell trade executed at 108.30.
* Profit/Loss = 108.30 – 108.09 = 0.21 OR 21 Pips.
* Since the quote currency (second currency) is JPY (other than USD), profit and loss in USD terms = 0.21/108.3 x 100,000 = 193.91 USD.
* Buy trade executed at 1.5555 and sell trade executed at 1.5560.
* Profit/Loss = 1.5560 – 1.5555 = 0.0005 OR 5 Pips.
* Since the quote currency (second currency) is USD, profit and loss in USD terms = 0.0005 x 100,000 = 50 USD ALTERNATIVELY profit and loss = 5 Pips x 10 USD =50 USD
* If you are a trader from EURO zone and you wish to calculate your profit and loss in EURO terms then you need to apply basic math. Divide your USD profit and loss by the exchange rate i.e. 1.5560. It works out to 50/1.5560 = 32.13 EURO. This point has been explained just for the academic interest as all the forex trading brokers display your profit and loss in USD terms.
Calculation of Profit and Loss for USD/CHF Trade:
* Buy trade executed at 1.0473 and sell trade executed at 1.0488.
* Profit/Loss = 1.0473 – 1.0488 = 0.0015 OR 15 Pips.
* Since the quote currency (second currency) is CHF (other than USD), profit and loss in USD terms = 0.0015/1.0488 x 100,000 = 143.02 USD.
Calculation of Profit and Loss for USD/JPY Trade:
* Buy trade executed at 108.09 and sell trade executed at 108.30.
* Profit/Loss = 108.30 – 108.09 = 0.21 OR 21 Pips.
* Since the quote currency (second currency) is JPY (other than USD), profit and loss in USD terms = 0.21/108.3 x 100,000 = 193.91 USD.
Monday, May 3, 2010
Online forex trading
Online forex trading offers number of distinct advantages. Besides real time rates, your profit and loss is calculated on real time basis by the forex trading software and is displayed live online. Even though this is an important advantage in forex trading account but I strongly recommend that you must be aware about the methodology to calculate your profit and loss from forex trading.
Basically there are two straightforward rules for calculating your profit and loss from forex trading:
1. Rule No.1: Whenever the quote currency (second currency) is USD, you can calculate the profit and loss in USD terms by multiplying the number of Pips with 10 USD if the lot size is a standard lot of 100,000. Similarly in case of mini lot of 10,000, the profit and loss from forex trading can be calculated by multiplying the number of Pips with 1 USD.
2. Rule No.2: In case of quote currency other than USD, the profit and loss will be calculated by dividing the number of pips with the exchange rate and then multiplying the result with lot size.
Let us discuss few factual examples on how to calculate profit and loss from forex trading. I have illustrated three examples – one example with USD as the quote currency and two examples with JPY as the quote currency. For simplicity only Long trades (Trades where you buy first and then sell) are considered. The lot size is assumed as standard lot of 100,000 and lot quantity is taken as 1 Lot.
Basically there are two straightforward rules for calculating your profit and loss from forex trading:
1. Rule No.1: Whenever the quote currency (second currency) is USD, you can calculate the profit and loss in USD terms by multiplying the number of Pips with 10 USD if the lot size is a standard lot of 100,000. Similarly in case of mini lot of 10,000, the profit and loss from forex trading can be calculated by multiplying the number of Pips with 1 USD.
2. Rule No.2: In case of quote currency other than USD, the profit and loss will be calculated by dividing the number of pips with the exchange rate and then multiplying the result with lot size.
Let us discuss few factual examples on how to calculate profit and loss from forex trading. I have illustrated three examples – one example with USD as the quote currency and two examples with JPY as the quote currency. For simplicity only Long trades (Trades where you buy first and then sell) are considered. The lot size is assumed as standard lot of 100,000 and lot quantity is taken as 1 Lot.
Sunday, May 2, 2010
Forex Trading Software
Forex Trading Software: This is the backbone for online forex currency trading. Ensure that the forex trading platform is state of the art. Look out for the following important feature.
1. IT infrastructure and user friendly features.
2. Real time quotes, multiple windows, types of orders, number of currency pairs and speed of execution of orders.
3. Charting, technical analysis and other analytical tools.
4. Research and Analysis: There are ample value add on services like tips on entry and exit points, forex indicators, real time access to fundamental and technical research reports and global news broadcasts. Find out are there any extras for these services?
Demo Account: Most of the forex trading brokers offer you a free practice account or a demo account for at least 30 days. However if it is not offered then insist upon it. Demo account enables you to get an in-depth idea about forex trading platform.
Account Related: Read and understand all the paper work before signing any documents. Find out (1) What is the minimum balance requirement (2) What is the margin and leverage and (3) Whether the back office is fully online. Nowadays you can start with as low as 250$ account and leverage ratio as high as 200:1.
Trading costs: There is only once cost – Bid/Ask spread. Pips charged by the forex brokers vary from 2 to 5 Pips, lower the better. Ensure that there are no other hidden costs and charges.
Customer Support and Reputation: I will not deliberate much on this factor as it can be ascertained only after the experience. However you can take the reviews from friends or internet bloggers community.
1. IT infrastructure and user friendly features.
2. Real time quotes, multiple windows, types of orders, number of currency pairs and speed of execution of orders.
3. Charting, technical analysis and other analytical tools.
4. Research and Analysis: There are ample value add on services like tips on entry and exit points, forex indicators, real time access to fundamental and technical research reports and global news broadcasts. Find out are there any extras for these services?
Demo Account: Most of the forex trading brokers offer you a free practice account or a demo account for at least 30 days. However if it is not offered then insist upon it. Demo account enables you to get an in-depth idea about forex trading platform.
Account Related: Read and understand all the paper work before signing any documents. Find out (1) What is the minimum balance requirement (2) What is the margin and leverage and (3) Whether the back office is fully online. Nowadays you can start with as low as 250$ account and leverage ratio as high as 200:1.
Trading costs: There is only once cost – Bid/Ask spread. Pips charged by the forex brokers vary from 2 to 5 Pips, lower the better. Ensure that there are no other hidden costs and charges.
Customer Support and Reputation: I will not deliberate much on this factor as it can be ascertained only after the experience. However you can take the reviews from friends or internet bloggers community.
Global forex
Global forex trading business has emerged as the most rewarding venture for skilled, experienced and professional forex traders. It is true that people like me and you would also like to grab a small pie from the enormous profit potential of forex trading. Well, there is nothing wrong in it but it is not a piece of cake for everybody to become a successful forex trading professional.
It is said that success follows automatically if you can avoid failures. It is only partly true in forex markets as the success also depends upon few other special qualities of a forex trader. So, what are the traits of a successful forex trader? Read further in the article to get a hand on whether you can also become a successful forex trader.
1. Confidence and Conviction
Confidence and conviction in your own knowledge, research and analysis is the first prerequisite to a path of success in forex currency trading. Successful traders know that they should take the profit of the table as fast as possible without letting the luck come into picture. They are confident about when to enter the market and when to exit the markets. They follow their convictions rigidly.
2. Discipline, Calmness and Focus
Forex trading demands a strict discipline and self-control over your emotions, limitations, actions and decisions. You should develop and maintain your own trading style suitable to your limitations, personality and financial goal. Successful traders stick to their normal trading style. Your ability to remain calm and focused ensures that you won’t be perturbed in panic situations like extreme volatility during market crash.
3. Accept Losses and Failure in Your Stride
I don’t know of any forex traders who have not tested failures and loss of money during their forex trading careers. It is simply not possible to go on a winning spree. Your ability to cut losses is most vital. Successful traders know how to keep the losses as small as possible and when to jump the sinking ship. Don’t pray when your trade starts going against you, instead book the losses. You should never commit a mistake of averaging a losing trade. In forex markets, delay in cutting the losses may result into complete erosion of your wealth. Your skills and experience in risk control and management can save you from a big disaster.
It is said that success follows automatically if you can avoid failures. It is only partly true in forex markets as the success also depends upon few other special qualities of a forex trader. So, what are the traits of a successful forex trader? Read further in the article to get a hand on whether you can also become a successful forex trader.
1. Confidence and Conviction
Confidence and conviction in your own knowledge, research and analysis is the first prerequisite to a path of success in forex currency trading. Successful traders know that they should take the profit of the table as fast as possible without letting the luck come into picture. They are confident about when to enter the market and when to exit the markets. They follow their convictions rigidly.
2. Discipline, Calmness and Focus
Forex trading demands a strict discipline and self-control over your emotions, limitations, actions and decisions. You should develop and maintain your own trading style suitable to your limitations, personality and financial goal. Successful traders stick to their normal trading style. Your ability to remain calm and focused ensures that you won’t be perturbed in panic situations like extreme volatility during market crash.
3. Accept Losses and Failure in Your Stride
I don’t know of any forex traders who have not tested failures and loss of money during their forex trading careers. It is simply not possible to go on a winning spree. Your ability to cut losses is most vital. Successful traders know how to keep the losses as small as possible and when to jump the sinking ship. Don’t pray when your trade starts going against you, instead book the losses. You should never commit a mistake of averaging a losing trade. In forex markets, delay in cutting the losses may result into complete erosion of your wealth. Your skills and experience in risk control and management can save you from a big disaster.
forex trading brokers
Your analysis and conviction dictates you that EURO will appreciate to a level of 1.5600. In anticipation you buy 1000 EURO/USD at 1.5550. As a matter of fact you have bought 1000 EURO by paying 1555 USD. Your trade turns in your favor and the exchange rate goes up to 1.5600. Immediately you sell 1000 EURO/USD at 1.5600. You have sold your 1000 EURO in exchange for 1560 USD. Let us work out the profit under two different scenarios.
* Without leverage: Profit = 1000 x (1.5600 – 1.5550) = 5 USD. Your return on investment (ROI) is 0.5%.
* With leverage: Let us presume that your forex trading broker has given you a leverage of 100:1 Now with the same investment of 1000$, you are in a position to buy 100,000 EURO/USD. Profit = 100,000 x (1.5600 – 1.5550) = 500 USD. Your ROI is 50%.
Don’t you think that magic of leverage creates wonders? Well, it does, but let me caution you that there are dark sides as well. Suppose if the trade went against you and EURO/USD fell to 1.5500. You will land up with a loss of 5$ without leverage but the loss would be 500$ with leverage. Do you realize the actual implications? You have ended up with a loss of 50% of your capital in just one trade.
Summing Up
* Risk management is an extremely important function in forex trading.
* Risk management and surveillance systems followed by forex trading brokers and forex trading company are different. In case your forex trading position is making huge losses, you may be called upon to jack up your margins. It may happen that in the event of acute volatile market conditions your loss making position would be squared off automatically
* Without leverage: Profit = 1000 x (1.5600 – 1.5550) = 5 USD. Your return on investment (ROI) is 0.5%.
* With leverage: Let us presume that your forex trading broker has given you a leverage of 100:1 Now with the same investment of 1000$, you are in a position to buy 100,000 EURO/USD. Profit = 100,000 x (1.5600 – 1.5550) = 500 USD. Your ROI is 50%.
Don’t you think that magic of leverage creates wonders? Well, it does, but let me caution you that there are dark sides as well. Suppose if the trade went against you and EURO/USD fell to 1.5500. You will land up with a loss of 5$ without leverage but the loss would be 500$ with leverage. Do you realize the actual implications? You have ended up with a loss of 50% of your capital in just one trade.
Summing Up
* Risk management is an extremely important function in forex trading.
* Risk management and surveillance systems followed by forex trading brokers and forex trading company are different. In case your forex trading position is making huge losses, you may be called upon to jack up your margins. It may happen that in the event of acute volatile market conditions your loss making position would be squared off automatically
Saturday, May 1, 2010
forex trading accounts
Orders with Price Variable:
1. Market Orders: This is the most basic and simplest type of order. The order is executed at the current market price. In this order you buy or sell immediately at the best available price. If you are trading through online forex trading software with your high speed broadband internet connection then the order is executed almost instantly.
2. Limit Orders: In limit order you can specify the limit price – upper limit for buy order and lower limit for sell order. Limit order is used by the forex traders for entering a new position or exiting the open position.
3. Stop or Stop-Loss Orders: Stop order is akin to limit order but stop order is used for entry or exit at a price that is pre-determined as per support and resistance levels on the technical chart. Stop orders are essentially used as an effective tool to curtail the losses or for protecting the profit (trailing stop loss). Stop orders are favorites for forex traders who trade aggressively based on the break out on the chart.
4. OCO – Order Cancels Other: In OCO order you place two orders simultaneously. One order is placed above the current price and the other order is placed below the current market price. As soon one order gets executed the other order is cancelled.
Orders with Duration Variable:
1. GTC – Good Till Cancelled: GTC orders can be placed with limit orders or stop orders. The order remains in the forex trading system till it is cancelled by the trader. It is the responsibility of the trader to cancel this order as per his judgment.
2. GTD – Good Till the Day/Date OR GFD – Good for the Day: Unlike GTC orders, GTD orders would remain in the system only till the end of the day.
1. Market Orders: This is the most basic and simplest type of order. The order is executed at the current market price. In this order you buy or sell immediately at the best available price. If you are trading through online forex trading software with your high speed broadband internet connection then the order is executed almost instantly.
2. Limit Orders: In limit order you can specify the limit price – upper limit for buy order and lower limit for sell order. Limit order is used by the forex traders for entering a new position or exiting the open position.
3. Stop or Stop-Loss Orders: Stop order is akin to limit order but stop order is used for entry or exit at a price that is pre-determined as per support and resistance levels on the technical chart. Stop orders are essentially used as an effective tool to curtail the losses or for protecting the profit (trailing stop loss). Stop orders are favorites for forex traders who trade aggressively based on the break out on the chart.
4. OCO – Order Cancels Other: In OCO order you place two orders simultaneously. One order is placed above the current price and the other order is placed below the current market price. As soon one order gets executed the other order is cancelled.
Orders with Duration Variable:
1. GTC – Good Till Cancelled: GTC orders can be placed with limit orders or stop orders. The order remains in the forex trading system till it is cancelled by the trader. It is the responsibility of the trader to cancel this order as per his judgment.
2. GTD – Good Till the Day/Date OR GFD – Good for the Day: Unlike GTC orders, GTD orders would remain in the system only till the end of the day.
Calculate Pip Values
If you are steadfast on taking up online forex trading business, I would recommend that you must get your hands on very sound fundamentals about Pips. For an ardent trader involved in global forex trading, the day starts with setting out the target for the Pips and the day ends with ascertaining his Pips balance sheet. I will try to guide you in learning the basics of Pips. It is essential that you must do sufficient math work to understand Pips to get a clear insight on Pips.
What is meant by Pips?
* Well, I would say that Pip is nothing but a fancy name for ‘Point’. Technically speaking, Pip is the smallest increment or decline in the value of the exchange rate. In a much simpler way, you can understand Pip as the last decimal point of any exchange rate. Pip is the acronym for Percentage in Point.
* An illustration of EURO/USD exchange rate of 1.5582 will make the things much better. In this exchange rate the next incremental value would be 1.5583 and the next decline value would be 1.5581. Mathematically the difference is 0.0001 and in forex jargon it is said that the exchange rate has increased or decreased by 1 Pip.
* You must be aware that rates of most of the currency pairs are expressed up to four decimal points except USD/JPY where it is expressed in two decimal points.
* Let us delve further into Pips by considering a fictitious buy/sell trade of EURO/USD. You are expecting that the value of EURO would appreciate in relation to USD. You have decided to buy EURO/USD. Your buy trade is executed at 1.5582. Your speculation turns in your favor and after some time EURO/USD appreciates to 1.5600. You make up your mind to lock the profit and sell EURO/USD. Your sell trade is executed at 1.5599. The difference between buy and sell values is equal to 0.0017. You have gained a profit of 17 Pips. What exactly is 17 Pips in USD terms? Well, we will see it in the next topic.
What is meant by Pips?
* Well, I would say that Pip is nothing but a fancy name for ‘Point’. Technically speaking, Pip is the smallest increment or decline in the value of the exchange rate. In a much simpler way, you can understand Pip as the last decimal point of any exchange rate. Pip is the acronym for Percentage in Point.
* An illustration of EURO/USD exchange rate of 1.5582 will make the things much better. In this exchange rate the next incremental value would be 1.5583 and the next decline value would be 1.5581. Mathematically the difference is 0.0001 and in forex jargon it is said that the exchange rate has increased or decreased by 1 Pip.
* You must be aware that rates of most of the currency pairs are expressed up to four decimal points except USD/JPY where it is expressed in two decimal points.
* Let us delve further into Pips by considering a fictitious buy/sell trade of EURO/USD. You are expecting that the value of EURO would appreciate in relation to USD. You have decided to buy EURO/USD. Your buy trade is executed at 1.5582. Your speculation turns in your favor and after some time EURO/USD appreciates to 1.5600. You make up your mind to lock the profit and sell EURO/USD. Your sell trade is executed at 1.5599. The difference between buy and sell values is equal to 0.0017. You have gained a profit of 17 Pips. What exactly is 17 Pips in USD terms? Well, we will see it in the next topic.
Forex Pairs
Before I deliberate on Forex Quotes, let me first update you on forex pairs and forex symbols. Let us not delve further into the history of how the currency pairs have evolved and standardized in the forex trading system.
Forex Symbols: There are seven most active currencies on the forex trading markets, besides number of other currencies that are traded sporadically.
1. US Dollar – USD
2. European currency – EURO
3. Japanese Yen – JPY
4. British Sterling Pound – GBP
5. Swiss Franc – CHF
6. Australian Dollar – AUD
7. Canadian Dollar – CAD
Forex Pairs: The term Forex pair may sound intriguing to those of you who are used to stock trading. Why forex in pairs? Well, even in stock trading, indirectly you are trading a pair. When you buy a stock, you are selling your money and vice versa. Similarly when you are trading forex you are buying once currency and selling the other currency. EURO/USD, USD/JPY, GBP/USD and USD/CHF are the most traded forex pairs that churn out the bulk of the daily trillion dollars turn over in global forex trading.
On any forex trading platform, you will find that almost half of the screen is occupied by flashing figures of forex quotes. Dealing rates is the alternate term often prescribed for forex quotes. Prima-Facie you may feel that it is very easy to read forex quotes. However if you are a novice, you may land up with a buy trade instead of a desired sell trade. I would suggest that you must thoroughly understand how the forex rates are quoted on the forex trading platforms.
Let us study an example of USD/JPY. There are essentially two aspects. The first aspect relates to the exchange rate and the second aspect relates to the forex quote as appearing on the screen of forex trading broker.
* The forex quote USD/JPY = 108.09 is in reality the exchange rate. Here in this quote, the first currency USD is termed as the base currency and the second currency JPY is termed as the quote currency. Thus for buying one unit of the base currency you have to pay 108.09 units of quote currency.
* If you see the forex quote for USD/JPY on the online forex trading software, you will find two separate quotes. USD/JPY Sell =108.07 and USD/JPY Buy=108.10. Offline forex trading brokers will quote USD/JPY = 108.10/108.07. The first price is the bid price and the second price is the ask price. Does it not sound confusing? Well, it is, but till the time you get used to the system. Here is where the concept of bid/ask spread comes into picture.
Forex Symbols: There are seven most active currencies on the forex trading markets, besides number of other currencies that are traded sporadically.
1. US Dollar – USD
2. European currency – EURO
3. Japanese Yen – JPY
4. British Sterling Pound – GBP
5. Swiss Franc – CHF
6. Australian Dollar – AUD
7. Canadian Dollar – CAD
Forex Pairs: The term Forex pair may sound intriguing to those of you who are used to stock trading. Why forex in pairs? Well, even in stock trading, indirectly you are trading a pair. When you buy a stock, you are selling your money and vice versa. Similarly when you are trading forex you are buying once currency and selling the other currency. EURO/USD, USD/JPY, GBP/USD and USD/CHF are the most traded forex pairs that churn out the bulk of the daily trillion dollars turn over in global forex trading.
On any forex trading platform, you will find that almost half of the screen is occupied by flashing figures of forex quotes. Dealing rates is the alternate term often prescribed for forex quotes. Prima-Facie you may feel that it is very easy to read forex quotes. However if you are a novice, you may land up with a buy trade instead of a desired sell trade. I would suggest that you must thoroughly understand how the forex rates are quoted on the forex trading platforms.
Let us study an example of USD/JPY. There are essentially two aspects. The first aspect relates to the exchange rate and the second aspect relates to the forex quote as appearing on the screen of forex trading broker.
* The forex quote USD/JPY = 108.09 is in reality the exchange rate. Here in this quote, the first currency USD is termed as the base currency and the second currency JPY is termed as the quote currency. Thus for buying one unit of the base currency you have to pay 108.09 units of quote currency.
* If you see the forex quote for USD/JPY on the online forex trading software, you will find two separate quotes. USD/JPY Sell =108.07 and USD/JPY Buy=108.10. Offline forex trading brokers will quote USD/JPY = 108.10/108.07. The first price is the bid price and the second price is the ask price. Does it not sound confusing? Well, it is, but till the time you get used to the system. Here is where the concept of bid/ask spread comes into picture.
Advantages of Forex
Most of you must have often heard the term Forex or Fx. Forex is nothing but foreign exchange or international currency exchange. Simply speaking, if you are an American, then British Sterling Pound or European Euro or any other currency is a foreign exchange for you.
Huge amounts of Forex change hands in the global trade and commerce. Besides the international business transactions, forex has also established a firm foothold in the investment portfolio of large number of people. You may wonder how you can invest in forex. Is it like investment in stocks and bonds? Is it suitable to a layman like me? Well, according to me it is neither easy nor difficult. You must give it a try, provided you are willing to learn forex trading.
Let me tell you one astounding feature of forex markets. Rates of international currencies fluctuate tremendously depending upon the country specific factors. To realize the true potential of how the vast scale fluctuation or volatility in the forex rates can help you in reaping huge benefits, you must partake in online forex trading.
Let me first brief you on the Advantages of Forex Trading:
* Liquidity: Global forex trading witnesses a daily turn over of few trillion US dollars.
* Market Availability: Forex trading is a round the clock market place. Forex market wakes up with Sidney, moving around globally as each market comes to life. Tokyo wakes up next, then London and finally US.
* Low Trading Costs: Like all the other markets, forex trading requires an intermediary called as a forex broker. However unlike other markets, the forex trading brokers do not charge any commissions for executing your trade. On the contrary the forex trading brokers make a small profit from bid/ask spread on the currency pair.
* Small Capital and High Leverage: You do not need to deploy huge capital amounts as the exposure or leverage ratios are high of the order of 200:1. Most of the forex brokers allow you to start with a capital as low as 100 USD.
Huge amounts of Forex change hands in the global trade and commerce. Besides the international business transactions, forex has also established a firm foothold in the investment portfolio of large number of people. You may wonder how you can invest in forex. Is it like investment in stocks and bonds? Is it suitable to a layman like me? Well, according to me it is neither easy nor difficult. You must give it a try, provided you are willing to learn forex trading.
Let me tell you one astounding feature of forex markets. Rates of international currencies fluctuate tremendously depending upon the country specific factors. To realize the true potential of how the vast scale fluctuation or volatility in the forex rates can help you in reaping huge benefits, you must partake in online forex trading.
Let me first brief you on the Advantages of Forex Trading:
* Liquidity: Global forex trading witnesses a daily turn over of few trillion US dollars.
* Market Availability: Forex trading is a round the clock market place. Forex market wakes up with Sidney, moving around globally as each market comes to life. Tokyo wakes up next, then London and finally US.
* Low Trading Costs: Like all the other markets, forex trading requires an intermediary called as a forex broker. However unlike other markets, the forex trading brokers do not charge any commissions for executing your trade. On the contrary the forex trading brokers make a small profit from bid/ask spread on the currency pair.
* Small Capital and High Leverage: You do not need to deploy huge capital amounts as the exposure or leverage ratios are high of the order of 200:1. Most of the forex brokers allow you to start with a capital as low as 100 USD.
Fx Trading Tournament
Forex or Fx as is fondly known in the global foreign exchange trading community, could probably rank as the most fancied investment avenue. I am sure that a popular search engine would yield millions of results for forex or fx. What does it imply? It simply means that a lot has been written on the subject of Fx trading and I don’t intend to bore you any more with stuff like basics of forex, introduction to forex and fundamentals of forex.
I am going to write something about Fx trading tournaments. Have you ever heard of it? Well, unlikely, as it is probably a new idea. I am inclined to say that it is indeed an innovative approach to forex training. Carry on further with a short FAQ on Fx Trading Tournaments.
What does it mean?
Fx trading tournament has nothing to do with any of your favorite sports. Fx trading tournament or alternatively Fx championship is an innovative opportunity offered by few forex brokers to forex investors to test their trading skills. Essenially, it is an event where large numbers of forex traders participate in online foreign currency trading at one common forex platform.
I am going to write something about Fx trading tournaments. Have you ever heard of it? Well, unlikely, as it is probably a new idea. I am inclined to say that it is indeed an innovative approach to forex training. Carry on further with a short FAQ on Fx Trading Tournaments.
What does it mean?
Fx trading tournament has nothing to do with any of your favorite sports. Fx trading tournament or alternatively Fx championship is an innovative opportunity offered by few forex brokers to forex investors to test their trading skills. Essenially, it is an event where large numbers of forex traders participate in online foreign currency trading at one common forex platform.
Construction of CandlestickConstruction of Candlestick
Chart is the most essential element for any technical analyst. There are various methods of plotting the charts. Candlestick charting is one of the most favored techniques for visual analysis. Candlestick charting was first developed by Japanese and hence the name Japanese Candlestick chart has become very famous.
As a matter of fact, this method of charting captured the attention of Wall Street traders much later. Japanese were using this technique for tracking the price movement of agricultural commodities. For all the practical purposes when a technical analyst refers to Candlestick charts, it essentially implies Japanese Candlestick chart.
Construction of Candlestick charts (refer drawing):
japanese-candlestick
Like bar chart, construction of candlestick charts is also very easy. Let us try to understand how it is done.
* Each candlestick line represents the activity for a fixed period that could be an hour or a day or a week or a month. It shows the prices at opening, high price, low price and closing price. OHLC is a frequently used acronym for open high low close.
* Main body or real body is either filled in (black or red) or hollow (white or green) and
* It represents the price range between the opening and closing prices. Black and white colors were used as per the traditional methods when the charts were drawn manually. However, in most of the latest computer aided charting red and green colors are used.
* If the opening price is higher than the closing price then the main body is filled.
* If the closing price is higher than the opening price then the main body is hollow.
* The thin lines above and below the main body are called as shadows or wick. Shadows represent the high and low prices for the particular period.
As a matter of fact, this method of charting captured the attention of Wall Street traders much later. Japanese were using this technique for tracking the price movement of agricultural commodities. For all the practical purposes when a technical analyst refers to Candlestick charts, it essentially implies Japanese Candlestick chart.
Construction of Candlestick charts (refer drawing):
japanese-candlestick
Like bar chart, construction of candlestick charts is also very easy. Let us try to understand how it is done.
* Each candlestick line represents the activity for a fixed period that could be an hour or a day or a week or a month. It shows the prices at opening, high price, low price and closing price. OHLC is a frequently used acronym for open high low close.
* Main body or real body is either filled in (black or red) or hollow (white or green) and
* It represents the price range between the opening and closing prices. Black and white colors were used as per the traditional methods when the charts were drawn manually. However, in most of the latest computer aided charting red and green colors are used.
* If the opening price is higher than the closing price then the main body is filled.
* If the closing price is higher than the opening price then the main body is hollow.
* The thin lines above and below the main body are called as shadows or wick. Shadows represent the high and low prices for the particular period.
Patterns of Japanese
Comparison between a standard bar chart and a Japanese Candlestick chart:
* Scaling is same.
* Overall shape is same.
* Both the charts can be used in conjunction to study other technical analysis tools such as moving averages, oscillators and other methods.
* Range of high and low is same for each period.
* Different types of patterns develop in both the charts that can help to identify the market trend.
* There is only one difference. How the opening and closing prices are displayed.
Advantages of Japanese Candlestick chart over the standard bar chart:
* Visual analysis is much easier and hence the traders can read the price action much faster.
* Comprehension of market sentiments can be done in a better way.
* Many traders believe that the Japanese Candlestick charts provide a better depth of information over the traditional bar charts.
* Traders find it easy and quick to analyze the trend reversal, trend continuation and other patterns. Identifying the pattern is usually considered as one of the most difficult part of technical analysis.
Patterns of Japanese Candlestick chart:
Candlesticks can take variety of shapes depending upon the relationship of OHLC. Shape of each Candlestick represents different interpretations such as extremely bullish, extremely bearish, bullish, bearish, neutral, turning period and end of the trend. Besides the shapes of individual Candlestick, various patterns develop on the Candlestick chart. Major patterns are Bullish Reversal, Bearish reversal and Continuation.
* Scaling is same.
* Overall shape is same.
* Both the charts can be used in conjunction to study other technical analysis tools such as moving averages, oscillators and other methods.
* Range of high and low is same for each period.
* Different types of patterns develop in both the charts that can help to identify the market trend.
* There is only one difference. How the opening and closing prices are displayed.
Advantages of Japanese Candlestick chart over the standard bar chart:
* Visual analysis is much easier and hence the traders can read the price action much faster.
* Comprehension of market sentiments can be done in a better way.
* Many traders believe that the Japanese Candlestick charts provide a better depth of information over the traditional bar charts.
* Traders find it easy and quick to analyze the trend reversal, trend continuation and other patterns. Identifying the pattern is usually considered as one of the most difficult part of technical analysis.
Patterns of Japanese Candlestick chart:
Candlesticks can take variety of shapes depending upon the relationship of OHLC. Shape of each Candlestick represents different interpretations such as extremely bullish, extremely bearish, bullish, bearish, neutral, turning period and end of the trend. Besides the shapes of individual Candlestick, various patterns develop on the Candlestick chart. Major patterns are Bullish Reversal, Bearish reversal and Continuation.
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