April 25, 2010

writing about forex trading techniques

Filed under: Currency Trading, Forex Trading Tips, STRATEGIES, learn forex — admin @ 2:00 pm

You may forget this after a while, but going back to the beginning, the single biggest barrier before I could consider FOREX as a legitimate investment channel, was that I didn’t comprehend what it meant to trade FOREX.

Well, I obviously understood, you sort of gamble about a pair of currencies’ ratio – “would the dollar outperform the euro?”, but is this really gambling, meaning, is it completely random? what’s my edge here?

I certainly didn’t know how to explain (though I admittedly heard about) leverages, technical analysis strategies, hedging strategies. let alone did I know anything about spot or forward deals etc’.

Going back to those days, I realized it’s far more important to teach these concepts and explain them, before I could send you off to scout for your perfect broker and start trading or even just compare brokers, before you understand the foundations.

I hereby declare the opening of my pet project – the guide4fx.com online forex trading school.

I think it’s far an important topic to be left here on our blog, so we will add such a category to the site, for your reference, and my personal enjoyment.

most important to point out: even after you read this school’s curriculum, you’d probably have to do some homework about practical trading issues such as broker’s interests, software usage etc’. we believe to cover that in our site, so it will stay out of the scope of the school.

hope you’ll find it useful.

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January 16, 2010

Swing Trading – Creating your way to profits

Filed under: STRATEGIES — Tags: — admin @ 8:38 am

It doesn’t matter what market you swing trade if you follow some basic tips and advice on implementing your swing trading strategy and use some basic trading principles. Trading or investing can be extremely risky. If you want to improve your trading success or are looking at starting your trading career, as a trader you always need to make sure you approach trading correctly and do not treat it like anything less than a business. Swing trading will give you all the tools you need to be successful, but if you aren’t prepared or know how to use those tools then you will fall far short of what you could have accomplished and be much less successful than you deserve. (more…)

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Traders do overtrade, you already know; but why actually?

Filed under: STRATEGIES — Tags: — admin @ 8:30 am

Ari Kiev suggests a few possible explanations in his book “Trading to win”. Some traders may overtrade just to gain some sort of involvement. They can’t sit still and do nothing. It’s as if they think, “An active trader trades all day.”
If you hold this belief, you will tend to feel you are missing out on something if you stand aside and do nothing. Other traders try to reach high performance goals, and feel that unless they make trade after trade, they have no chance of reaching them.
Professional institutional traders, for example, must make profits to stay employed. Sitting around doing nothing doesn’t make them think they can make a profit. When you fail to reach your performance objectives, there’s a powerful motive to make trades just to feel you are making some progress.
What often happens, however, is that bad trades are made and losses are mounted? In addition, while one is engaged in these loosing trades, he or she is not searching for solid, high probability setups. In the end, profits objectives are missed completely. (more…)

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Controlling profits – The Real trader way

Filed under: STRATEGIES — Tags: — admin @ 8:28 am

This may seem an odd headline as your probably thinking all traders want big profits so will accept them – this is not so. Many traders are very often right about the big trends but fail to make money from them. Why? Let’s get to the way.
Many traders have excellent forex methods and are right about the long term trends but cannot hold them due to the emotion of fear.
So what do they fear?
They fear of losing the profit that they have in an open position is something all novice trader struggle with. The bigger the profit gets the greater the temptation is to snatch it before it gets away.
As volatility eats into open equity, the temptation to take the profit becomes too much and the trader banks it. (more…)

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Forex Orders – Types and their importance

Filed under: STRATEGIES — Tags: — admin @ 8:22 am

Market Order
Generally saying, market order is an order to buy or sell at the current market price. As for as an example, EUR/USD is currently trading at 1.2140. As if you wanted to buy this exact price, you would click buy and your trading platform would instantly execute a buy order at that exact price. If you ever shop on Amazon, it’s like using their just a simple-one click ordering. You like the current price, you click once and gotcha; it’s yours! The one and only difference is you are buying or selling one currency against another currency instead of buying something weird or things which are not important to you at the present time. (more…)

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January 12, 2010

Traders do overtrade, you already know; but why actually?

Filed under: STRATEGIES — Tags: — admin @ 7:16 am

Ari Kiev suggests a few possible explanations in his book “Trading to win”. Some traders may overtrade just to gain some sort of involvement. They can’t sit still and do nothing. It’s as if they think, “An active trader trades all day.”
If you hold this belief, you will tend to feel you are missing out on something if you stand aside and do nothing. Other traders try to reach high performance goals, and feel that unless they make trade after trade, they have no chance of reaching them.
Professional institutional traders, for example, must make profits to stay employed. (more…)

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January 7, 2010

Controlling profits – The Real trader way

Filed under: STRATEGIES — Tags: — admin @ 10:11 am

This may seem an odd headline as your probably thinking all traders want big profits so will accept them – this is not so. Many traders are very often right about the big trends but fail to make money from them. Why? Let’s get to the way.
Many traders have excellent forex methods and are right about the long term trends but cannot hold them due to the emotion of fear.
So what do they fear?
They fear of losing the profit that they have in an open position is something all novice trader struggle with. The bigger the profit gets the greater the temptation is to snatch it before it gets away.
As volatility eats into open equity, the temptation to take the profit becomes too much and the trader banks it. (more…)

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January 6, 2010

How are stop losses important to forex traders?

Filed under: STRATEGIES — Tags: — admin @ 3:23 am

Despite the fact that it is one of the most important orders which a Forex trader can place, a surprisingly large number of foreign currency traders simply ignore the stop loss order.
This type of market is called a stop loss order for a very good reason – it stops you from making too heavy a loss should the market move against you. So, why do so many traders ignore a trading tool which is specifically designed to protect their trading interests?
The answer is emotion. (more…)

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How To Read Forex Graphs

Filed under: STRATEGIES — Tags: — admin @ 3:17 am

Forex technical analysis consists of reading different types of graphs. It is very important to know how to read forex charts. Only by reading charts you will be able to interpret patterns and based on that you can make the appropriate trading decision.

You have to understand a few points to understand any technical chart. The graphs are direct representations of the movement of price of a currency. The price is a reflection of the action of buying and selling that takes place between the buyers and sellers in the forex market. Every kind of transaction in the over the counter forex trading process or between the interbank tend to provide with the price movements. (more…)

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December 28, 2009

A new strategy – 1234 strategy

Filed under: STRATEGIES — Tags: — admin @ 9:03 am

Forex traders always need to exchange Forex trading opinions and strategy. Recently, there is a so called ‘1234′ strategy in Forex trading.

‘1′ refers to one concept. Realizing the Forex trading is seeking the greater return through smaller risk. Specifically saying, the Forex market is a fair and also a giant market, there is no Forex trader who is able to control this market, therefore any Forex trader which undergo Forex trading does not ensure profit making. Since no Forex trader is certain about profit making why do they still do transaction? This is because the Forex trader thought the probability of making profit is bigger than probability of making loss. For example, after Forex trader analyzes the present trend and bought pound, the probability which the pound loses money is 50 pips, but gains probability is 150 pips, then this definitely is an opportunity which is worth investing. But 50 pips losses probabilities are in fact if the Forex trader really execute stop lost. Therefore this ‘1′ concept is closely related to stop lost. Truly understanding this point, while doing transaction Forex traders can rely on own initiative observing the rule and the discipline, so that uncontrollable loss will not happen. (more…)

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