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Showing posts with label money management in Forex trading. Show all posts
Showing posts with label money management in Forex trading. Show all posts
Investor Brain: Online Currency-Trading Sites Multiply.
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Online Currency-Trading Sites Multiply
IF YOU LIKE TRADING ON VOLATILITY, THERE IS nothing quite like the forex market.
It is open 24 hours a day, five days a week, and the players range from global banks to individuals. The daily volume is well over $3 trillion, according to the Bank for International Settlements. Despite its gargantuan size, the market isn’t tightly regulated, and traders can use lots of leverage, which poses benefits and dangers. There is no central exchange; the market moves from one country to another. As Tokyo is closing, for example, London is opening.
Among the 25 firms we evaluated for our annual Best Online Broker review, published on March 16, E*Trade, Interactive Brokers, MB Trading, thinkorswim and TradeStation all come with some kind of built-in forex- trading system. OptionsXpress and TradeKing have enabled currency futures trading, and customers of SiebertNet can place forex trades through a live broker.
Last week, Zecco (http://www.zecco.com) announced it is partnering with the forex trading firm GAIN Capital (http://www.gaincapital.com) to launch Zecco Forex. “Today’s volatile forex markets have created an attractive and complementary opportunity for our investors,” said Jeroen Veth, CEO of Zecco Holdings. “Zecco Forex provides them access to another asset class where they can make trades independent of overall equity-market direction.”
ZECCO’S FOREX OFFERING (http://www.zecco.com/forex) is a separate legal entity from its regular platform, so customers must sign up for a separate account. In time, however, the firm plans to integrate the two platforms into a single display, but that isn’t likely to happen until next year, according to Zecco spokesman Gabriel Dalporto.
When you arrive at Zecco’s forex site, you will find some educational content, as well as an opportunity to sign up for a practice account with $50,000 to start. The practice account lets you play with the analytical tools in the GAIN Capital platform and gives you a feel for how forex trading works. The account includes real-time quotes and charts, along with all the trading tools and information available to Zecco Forex customers. These tools include single and contingent order types, a real-time newsfeed and market commentary, plus daily and weekly research.
Should you decide to take the leap to trading with your own money, you can sign up for either a mini account, with a minimum deposit of $250, or a standard account, with $2,500. Those who deposit $10,000 or more can use a more advanced trading platform. The Java-based downloadable trading platform, ForexTrader Desktop, runs only on Windows, while the more advanced ForexTrader Web can be used by those with Macs and the Safari browser.
Most forex brokers don’t charge explicit commissions; they tack on a fee to the price paid for the trade. Zecco’s spreads are in line with what most of its rivals charge; a list can be found at http://www.zecco.com/forex/trade-pricing.html.
A key component of forex trading is leverage. Yes, stock and option traders can employ leverage by trading on margin. But their use of margin is minuscule, compared with that often found in foreign-exchange trades. You can utilize leverage of as much as 200 times the size of your account, so with just $500, you can hold $100,000 of currencies. With high leverage, however, comes much greater risk. It is imperative to stay on top of all your open transactions to avoid a huge margin call. Failure to use leverage prudently can be disastrous, as Lehman Brothers, Bear Stearns and thousands of no-down-payment home buyers found out.
Zecco Forex’s offering lets customers trade in 37 currency pairs, though most of the action is in just a few currencies (primarily the U.S. dollar, Japanese yen, euro and British pound). The Zecco community is starting to see action in its newly launched Forex section, so you can discuss your strategies with other traders.
FIDELITY’S FIXED-INCOME AUTO-ROLL program (http://www.fidelity.com) went live at the end of March. It allows customers to automatically reinvest the principal of their matured new-issue U.S. Treasury bills, notes and FDIC-insured certificates of deposit into similar new-issue instruments. The goal is to make it easier for customers to remain fully invested and leave less cash on the sidelines.
The Auto Roll Program’s methodology takes into consideration the original instrument’s security type, size, term to maturity and coupon frequency when locating a new purchase. Customers can verify that the pending trade matches their objectives through a Fidelity e-mail alert. If they decide not to reinvest, there is an option to cancel the trade.
Auto Roll is available for new-issue Treasuries and certificates of deposit with a term to maturity of five years or less. If a Treasury or CD that matches the original investment isn’t found, Fidelity will alert the customer and move the principal of the mature instrument to the default cash position in his or her brokerage account.
NOTES ON SWITCHING ACCOUNTS: In response to our March 23 “How To Switch Brokers Painlessly” column, Steve Sanders, vice president at Interactive Brokers (http://www.interactivebrokers.com), tells us that there is a sister system to the Automated Customer-Account Transfer System, or ACAT, used by many firms. Called the Currency and Banking Retrieval System, it passes lot and cost-basis information from one broker to another. Adds Sanders: “It is up to the discretion of the broker to use this system. [Interactive Brokers] makes full use of this system, whenever the ACAT transfer broker also makes use of this system.”
STOCK MARKET TRADING.
CHARITY DONOR.
GET PAID.
NOTES ON SWITCHING ACCOUNTS: In response to our March 23 “How To Switch Brokers Painlessly” column, Steve Sanders, vice president at Interactive Brokers (http://www.interactivebrokers.com), tells us that there is a sister system to the Automated Customer-Account Transfer System, or ACAT, used by many firms. Called the Currency and Banking Retrieval System, it passes lot and cost-basis information from one broker to another. Adds Sanders: “It is up to the discretion of the broker to use this system. [Interactive Brokers] makes full use of this system, whenever the ACAT transfer broker also makes use of this system.”
STOCK MARKET TRADING.
CHARITY DONOR.
GET PAID.
Money Management : How To Avoid Loses In The Forex Trading Market.
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MONEY MANAGEMENT : HOW TO AVOID LOSES IN THE FOREX TRADING MARKET.
Check the Hot Tips here:
http://www.fxbrokeri.com/how-can-you-minimize-losses-in-trading-forex-cfds-and-binary-options/
Check the Hot Tips here:
http://www.fxbrokeri.com/how-can-you-minimize-losses-in-trading-forex-cfds-and-binary-options/
Foreign Exchange Risks And Benefits.
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FOREIGN EXCHANGE RISKS AND BENEFITS.
Although, making money in the Forex Trading Market is a must if you know "how to", so also are some risks. But, if you know "how to" it can be avoided. No one can actually determines or say categorically that there are more benefits in the market than the loss. It is true that the platform or the Forex brokerage platform, Forex trading signals, Forex trading strategies or trading trending could be of help, a good money management control seems to take the center stage.
This where a good money management idea came to play. There are a lot of books there, lectures, tutorials and many articles concerning the risks, as a trader you must be able to perfect your own trading plans so as to break even at all times. To assists you in making money from the Forex Trading Market, I not only found this tutorials of help to you but the site is a must visit for anybody or trader who takes trading the market very serious.
Do not forget to drop a comments so as to enabled me know how the message from the site is to you or as benefited to you. Find it here:
https://www.investopedia.com/university/forexmarket/
Although, making money in the Forex Trading Market is a must if you know "how to", so also are some risks. But, if you know "how to" it can be avoided. No one can actually determines or say categorically that there are more benefits in the market than the loss. It is true that the platform or the Forex brokerage platform, Forex trading signals, Forex trading strategies or trading trending could be of help, a good money management control seems to take the center stage.
This where a good money management idea came to play. There are a lot of books there, lectures, tutorials and many articles concerning the risks, as a trader you must be able to perfect your own trading plans so as to break even at all times. To assists you in making money from the Forex Trading Market, I not only found this tutorials of help to you but the site is a must visit for anybody or trader who takes trading the market very serious.
Do not forget to drop a comments so as to enabled me know how the message from the site is to you or as benefited to you. Find it here:
https://www.investopedia.com/university/forexmarket/
Money Management In Forex Trading : How to Risk Reward Ratio To Protect your Account in Forex Trading >
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MONEY MANAGEMENT IN FOREX TRADING :HOW TO USE RISK REWARD RATIO TO PROTECT YOUR ACCOUNT IN FOREX TRADING .
Risk reward ratio is one of the tools a Forex trader needs to protect its account from losses .This simply allows you to calculate how much you intend to give away if the odds is against you compared to how much you intend to earn if they work in your favor . An example is a situation where you set up a stop loss of 10pips and a take profit of 20pips , giving you a risk reward ratio of 1:2. I have had the opportunity of monitoring some trader accounts to find out what exactly could happen to their accounts . I learnt that many trader always short changing them self because of fear . He places an order with a stop loss of 50pips and take profit of 5 or 10 pips .The reason some have given this type of trading decision has been that it would be easier for price to reach the take profit than to the stop loss .
But , instead of short changing yourself this way ,you can own a trading system or strategy that is good with definite market / price . If you are trading along with the trend , you stand a better chance of having a good risk reward ratio .My trading strategy often allows a risk reward ratio of 1:5 . This system is for news trading . If you are not a news trader , I will suggest you work out something that give you at least 1:1.5 or 1:2 risk -reward ratios. 1:3 may be way too much for a technical trading system . With a good risk reward-ratio, you can make up of any lapses your trading system might have .
For example if you spot 10 trading opportunities in a week trading only news events , and happen to loose 5 and win 5 which is 50:50 . With a risk reward ratio of 1:5 one of the system I use offered (assuming you risk 6pips on a trade ) 5 losses will equal 6x5=30pips. And with a Take profit of 30pips on the other 5 trades , you will have 30x5=150pips.
Net profit = 150 - 30 giving you 120pips .Find out what works best for you and protect your account .
http://www.onlinestocktradingmagazine.blogspot.com
Risk reward ratio is one of the tools a Forex trader needs to protect its account from losses .This simply allows you to calculate how much you intend to give away if the odds is against you compared to how much you intend to earn if they work in your favor . An example is a situation where you set up a stop loss of 10pips and a take profit of 20pips , giving you a risk reward ratio of 1:2. I have had the opportunity of monitoring some trader accounts to find out what exactly could happen to their accounts . I learnt that many trader always short changing them self because of fear . He places an order with a stop loss of 50pips and take profit of 5 or 10 pips .The reason some have given this type of trading decision has been that it would be easier for price to reach the take profit than to the stop loss .
But , instead of short changing yourself this way ,you can own a trading system or strategy that is good with definite market / price . If you are trading along with the trend , you stand a better chance of having a good risk reward ratio .My trading strategy often allows a risk reward ratio of 1:5 . This system is for news trading . If you are not a news trader , I will suggest you work out something that give you at least 1:1.5 or 1:2 risk -reward ratios. 1:3 may be way too much for a technical trading system . With a good risk reward-ratio, you can make up of any lapses your trading system might have .
For example if you spot 10 trading opportunities in a week trading only news events , and happen to loose 5 and win 5 which is 50:50 . With a risk reward ratio of 1:5 one of the system I use offered (assuming you risk 6pips on a trade ) 5 losses will equal 6x5=30pips. And with a Take profit of 30pips on the other 5 trades , you will have 30x5=150pips.
Net profit = 150 - 30 giving you 120pips .Find out what works best for you and protect your account .
http://www.onlinestocktradingmagazine.blogspot.com
Money Management In Forex Trading Simplified : 4 Proven Ways To Conquer The Forex Tading Market .
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MONEY MANAGEMENT IN FOREX TRADING SIMPLIFIED : 4 PROVEN WAYS TO
CONQUER THE FOREX TRADING MARKET .
This edition of the proven ways to conquer the Forex trading market as a money management tips in Forex trading will show you how anyone wanting to delve into FX trading will succeed without even been a professional trader .
1.CHOOSING A RIGHT BROKER : There are many Forex brokers on the Internet today but not all are reliable . So , one needs to do a proper due diligence on any broker one intends using for trading .I have researched and based on my experience what you should considered when next you are choosing a broker .
1.Licensing and regulation .
2.Location of the broker .
3.Customer support services .
4.Trading platform .
5.Low spreads .
6.Quality Institution .
7.Extensive Tools and Research .
8.Wide range leverage options .
9.Account types .
Check over and see if any of the above is missing in your choice . A good broker should be able to have a trading platform that will provide its customer with all the facilities needed for proper trading . The spread calculated in pips is the difference between the price at which a currency can be purchased and the price at which it can be sold at any given point in time .Forex brokers do not change a commission , so the difference is their profit which could be called commission . In comparing brokers you will find that the difference in spreads in Forex is as great as the difference in commissions in the stock arena . Lower spreads save you money . Find a broker who will offers you all what you need to succeed .
2.STOP LOSS ORDER : Here we consider the second rule which says we should not risk more than 3% -5% of our core equity in any single trade . Remember core equity means Equity capital minus used margin in trade . Core equity is the same as free margin . Assuming capital of $1,000 . If you decide you are going to trade with 0.50 lot size , this rules will guide you on where to place your stop loss . Let us now assume you have a brave hearth to risk and willing to risk 5% of your $1,000 which is $50 . The next question you need asked is that how many pips will give me $50 on 0.50 lot size . Let us do a little arithmetic to get this right . If you understand that 1 pip 0.10 equals $1 then 1pip in 0.50 lot size will give $5 . Hence , we divide $50 by $5 = 10pips . What this now means is that your stop loss should not exceed 10pips. So if you spot a trade that would not allow you a risk for stop loss of 10pips you will need to do the following .
Reduce your lot size , or skip the trade . But you really need to develop a good trading system that will enable you manage risk . rising not more than 3% on a mini account and not more than 2% on standard account seem to be a good money management system which I can advice you to follow .
CONQUER THE FOREX TRADING MARKET .
This edition of the proven ways to conquer the Forex trading market as a money management tips in Forex trading will show you how anyone wanting to delve into FX trading will succeed without even been a professional trader .
1.CHOOSING A RIGHT BROKER : There are many Forex brokers on the Internet today but not all are reliable . So , one needs to do a proper due diligence on any broker one intends using for trading .I have researched and based on my experience what you should considered when next you are choosing a broker .
1.Licensing and regulation .
2.Location of the broker .
3.Customer support services .
4.Trading platform .
5.Low spreads .
6.Quality Institution .
7.Extensive Tools and Research .
8.Wide range leverage options .
9.Account types .
Check over and see if any of the above is missing in your choice . A good broker should be able to have a trading platform that will provide its customer with all the facilities needed for proper trading . The spread calculated in pips is the difference between the price at which a currency can be purchased and the price at which it can be sold at any given point in time .Forex brokers do not change a commission , so the difference is their profit which could be called commission . In comparing brokers you will find that the difference in spreads in Forex is as great as the difference in commissions in the stock arena . Lower spreads save you money . Find a broker who will offers you all what you need to succeed .
2.STOP LOSS ORDER : Here we consider the second rule which says we should not risk more than 3% -5% of our core equity in any single trade . Remember core equity means Equity capital minus used margin in trade . Core equity is the same as free margin . Assuming capital of $1,000 . If you decide you are going to trade with 0.50 lot size , this rules will guide you on where to place your stop loss . Let us now assume you have a brave hearth to risk and willing to risk 5% of your $1,000 which is $50 . The next question you need asked is that how many pips will give me $50 on 0.50 lot size . Let us do a little arithmetic to get this right . If you understand that 1 pip 0.10 equals $1 then 1pip in 0.50 lot size will give $5 . Hence , we divide $50 by $5 = 10pips . What this now means is that your stop loss should not exceed 10pips. So if you spot a trade that would not allow you a risk for stop loss of 10pips you will need to do the following .
Reduce your lot size , or skip the trade . But you really need to develop a good trading system that will enable you manage risk . rising not more than 3% on a mini account and not more than 2% on standard account seem to be a good money management system which I can advice you to follow .
- TO BE CONTINUED .
FOREX TRADING SIGNAL:Pivot Points Trading System Reviewed.
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FOREX TRADING SIGNAL:Pivot Points Trading System Reviewed.
Traders and market makers have used pivot points to determine critical support and or resistance levels.it is used to identify points of entry and also used by trend traders and breakout traders to spot the key level that need to be broken for a move to qualify as a breakout.You can also read more on Pivots trading system on one of the earlier post on this blogs.
WHAT IS THE SIGNIFICANCE OF MARKET OPENS TO PIVOT TRADING SYSTEM.
One of the key points you and me must understand as a trader when trading pivot points in the Forex market is that breaks tends to occur amid one of the market opens.The reason for this is the immediate influx of traders entering the market at the same time.I have found out that during quieter time periods such as between the US close and the Asian open and even through the Asian session,which is the quietest trading session,price may remained configured for hours between the pivot level and either the support or resistance levels.This provide the perfect environment for you and me.
In this case,I found out that the best strategy to adopt in using pivot points is to look for prices to obey the pivot level therefore validating the level as a solid support or resistance zone.In this type of strategy,you are looking to see the price break the pivot level,reverse and then trend back towards the pivot level.If the price proceeds to drive through the pivot point,this is an indication that the pivot level is not very strong and is therefore less useful as a trading signal.However,if prices hesitate around that level or validate it,then the pivot level is much more significant and suggests that the move lower is an actual break,which indicates that there may be a continuation move.
http://www.profitline66.blogspot.com
http://www.googleadsense-profits.blogspot.com
http://www.onlinestocktradingmagazine.blogspot.com
http://www.howtotradethestockmarket.blogspot.com
FOREX STRASTEGIES:HOW YOU MAKE MONEY IN FOREX.
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FOREX STRATEGIES:HOW YOU MAKE MONEY IN FOREX
Just with your Laptop and Internet access you can make as much as $1,000,000 in the Forex trading market.
In the forex market, you buy or sell currencies.
Placing a trade in the foreign exchange market is simple: the mechanics of a trade are very similar to those found in other markets (like the stock market), so if you have any experience in trading, you should be able to pick it up pretty quickly.
The object of forex trading is to exchange one currency for another in the expectation that the price will change, so that the currency you bought will increase in value compared to the one you sold.
Example:
Trader's Action EUR USD
You purchase 10,000 euros at the EUR/USD exchange rate of 1.1800 +10,000 -11,800*
Two weeks later, you exchange your 10,000 euros back into U.S. dollar at the exchange rate of 1.2500 -10,000 +12,500**
You earn a profit of $700 0 +700
*EUR 10,000 x 1.18 = US $11,800
** EUR 10,000 x 1.25 = US $12,500
An exchange rate is simply the ratio of one currency valued against another currency. For example, the USD/CHF exchange rate indicates how many U.S. dollars can purchase one Swiss franc, or how many Swiss francs you need to buy one U.S. dollar.
How to Read a Forex Quote
Currencies are always quoted in pairs, such as GBP/USD or USD/JPY. The reason they are quoted in pairs is because in every foreign exchange transaction, you are simultaneously buying one currency and selling another. Here is an example of a foreign exchange rate for the British pound versus the U.S. dollar:
GBP/USD quote
The first listed currency to the left of the slash ("/") is known as the base currency (in this example, the British pound), while the second one on the right is called the counter or quote currency (in this example, the U.S. dollar).
When buying, the exchange rate tells you how much you have to pay in units of the quote currency to buy one unit of the base currency. In the example above, you have to pay 1.51258 U.S. dollars to buy 1 British pound.
When selling, the exchange rate tells you how many units of the quote currency you get for selling one unit of the base currency. In the example above, you will receive 1.51258 U.S. dollars when you sell 1 British pound.
The base currency is the "basis" for the buy or the sell. If you buy EUR/USD this simply means that you are buying the base currency and simultaneously selling the quote currency. In caveman talk, "buy EUR, sell USD."
You would buy the pair if you believe the base currency will appreciate (gain value) relative to the quote currency. You would sell the pair if you think the base currency will depreciate (lose value) relative to the quote currency.
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Long/Short
First, you should determine whether you want to buy or sell.
If you want to buy (which actually means buy the base currency and sell the quote currency), you want the base currency to rise in value and then you would sell it back at a higher price. In trader's talk, this is called "going long" or taking a "long position." Just remember: long = buy.
If you want to sell (which actually means sell the base currency and buy the quote currency), you want the base currency to fall in value and then you would buy it back at a lower price. This is called "going short" or taking a "short position". Just remember: short = sell.
Long dog, short dog
"I'm long AND short."
Bid/Ask
EUR/USD quote
"How come I keep getting quoted with two prices?"
All forex quotes are quoted with two prices: the bid and ask. For the most part, the bid is lower than the ask price.
The bid is the price at which your broker is willing to buy the base currency in exchange for the quote currency. This means the bid is the best available price at which you (the trader) will sell to the market.
The ask is the price at which your broker will sell the base currency in exchange for the quote currency. This means the ask price is the best available price at which you will buy from the market. Another word for ask is the offer price.
The difference between the bid and the ask price is popularly known as the spread.
On the EUR/USD quote above, the bid price is 1.34568 and the ask price is 1.34588. Look at how this broker makes it so easy for you to trade away your money.
If you want to sell EUR, you click "Sell" and you will sell euros at 1.34568. If you want to buy EUR, you click "Buy" and you will buy euros at 1.34588.
Now let's take a look at some samples.
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While you are logged into your account,
you can save your progress in the School of Pipsology!
How you made your money depends on your time.Be trade conscious.
In the forex market, you buy or sell currencies.
Placing a trade in the foreign exchange market is simple: the mechanics of a trade are very similar to those found in other markets (like the stock market), so if you have any experience in trading, you should be able to pick it up pretty quickly.
The object of forex trading is to exchange one currency for another in the expectation that the price will change, so that the currency you bought will increase in value compared to the one you sold.
Example:
Trader's Action EUR USD
You purchase 10,000 euros at the EUR/USD exchange rate of 1.1800 +10,000 -11,800*
Two weeks later, you exchange your 10,000 euros back into U.S. dollar at the exchange rate of 1.2500 -10,000 +12,500**
You earn a profit of $700 0 +700
*EUR 10,000 x 1.18 = US $11,800
** EUR 10,000 x 1.25 = US $12,500
An exchange rate is simply the ratio of one currency valued against another currency. For example, the USD/CHF exchange rate indicates how many U.S. dollars can purchase one Swiss franc, or how many Swiss francs you need to buy one U.S. dollar.
How to Read a Forex Quote
Currencies are always quoted in pairs, such as GBP/USD or USD/JPY. The reason they are quoted in pairs is because in every foreign exchange transaction, you are simultaneously buying one currency and selling another. Here is an example of a foreign exchange rate for the British pound versus the U.S. dollar:
GBP/USD quote
The first listed currency to the left of the slash ("/") is known as the base currency (in this example, the British pound), while the second one on the right is called the counter or quote currency (in this example, the U.S. dollar).
When buying, the exchange rate tells you how much you have to pay in units of the quote currency to buy one unit of the base currency. In the example above, you have to pay 1.51258 U.S. dollars to buy 1 British pound.
When selling, the exchange rate tells you how many units of the quote currency you get for selling one unit of the base currency. In the example above, you will receive 1.51258 U.S. dollars when you sell 1 British pound.
The base currency is the "basis" for the buy or the sell. If you buy EUR/USD this simply means that you are buying the base currency and simultaneously selling the quote currency. In caveman talk, "buy EUR, sell USD."
You would buy the pair if you believe the base currency will appreciate (gain value) relative to the quote currency. You would sell the pair if you think the base currency will depreciate (lose value) relative to the quote currency.
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Long/Short
First, you should determine whether you want to buy or sell.
If you want to buy (which actually means buy the base currency and sell the quote currency), you want the base currency to rise in value and then you would sell it back at a higher price. In trader's talk, this is called "going long" or taking a "long position." Just remember: long = buy.
If you want to sell (which actually means sell the base currency and buy the quote currency), you want the base currency to fall in value and then you would buy it back at a lower price. This is called "going short" or taking a "short position". Just remember: short = sell.
Long dog, short dog
"I'm long AND short."
Bid/Ask
EUR/USD quote
"How come I keep getting quoted with two prices?"
All forex quotes are quoted with two prices: the bid and ask. For the most part, the bid is lower than the ask price.
The bid is the price at which your broker is willing to buy the base currency in exchange for the quote currency. This means the bid is the best available price at which you (the trader) will sell to the market.
The ask is the price at which your broker will sell the base currency in exchange for the quote currency. This means the ask price is the best available price at which you will buy from the market. Another word for ask is the offer price.
The difference between the bid and the ask price is popularly known as the spread.
On the EUR/USD quote above, the bid price is 1.34568 and the ask price is 1.34588. Look at how this broker makes it so easy for you to trade away your money.
If you want to sell EUR, you click "Sell" and you will sell euros at 1.34568. If you want to buy EUR, you click "Buy" and you will buy euros at 1.34588.
How you make money depends on the strategies you adopted.
How to use pivot points to profit in the Forex trading market.
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How to use pivot point to profit in the Forex trading market
Pivot points trading system in Forex trading is a new way of generating profit pips in the Forex trading market..Pivot points as a trading system is good because it is predictive.You as a trader is able to use the information of the previous day high,low and close to generates 7 points.i.e 3 supports,3 resistance levels and the actual pivot points.
Trading system.
1.If the market opens above pivot point,then go for long trades as long as price remains above the pivot point.
2.If the market opens below the pivot point then go for short trades as long as the market remains below the pivot point.
3.The general idea behind trading pivot point is to look for a reversal or break of R1 or S1.By the time the market reaches R2,R3 or S2 the market WILL ALREADY BE OVER BOUGHT or oversold and these levels should be use for exits rather than entries.
How to calculate the points.
1.Pivot point=High+previous close+previous low/3
2.Resistance 1= 2*Pivot point - previous low
3.Support 1=2*pivot point-previous high
4.resistance 2=pivot+(R1-S1)
5.Support 2=Pivot-(R1-S1)
6.support 3=Low-2*(High-Pivot point)
7.Resistance 3 =High + 2*(pivot-Low)
HOW TO MAKE MONEY FROM FARM INVESTMENT
Forex trading platform:How the choice of your trading platform can influence your success in the Forex trading market.
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Forex trading platform:How the choice of your trading platform can influence your success in the Forex trading market.
There are thousands of Forex brokers yet you need to choose a broker that is registered with the regulatory body.It is no good if you discover that your brokerage firm is unregistered,after they have stolen all your money.
Brokers that offers online trading facilities(that allows you to view Forex quotes in real time).Brokers that offers 24hr telephone and email support would serve you best.
Brokers that offers trading pairs in all seven major currencies:USD,EUR,JPY,GBP,CHF,CAD and AUD.More importantly you need to discover how your brokers calculate rollover charges.Rollover charges are charged to your account when your trade extends(roll over)past the end of the trading day into the next trading day.
To maximize profit in trading,choose a broker that allows you to trade Forex and Binary options/bonds from one single account.Do your broker offers free bonus?my recommended brokers simply does this.Check them out.
Go for brokers that offers the smallest bid/ask spreads.The bid/ask spreads is normally 5pips but some brokers offer spreads of only 3pips or even 2pips.Choose rightly.
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HOW TO PROTECT YOUR INVESTMENT IN THE FOREX TRADING MARKET.
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stephenadebiyi |
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HOW TO PROTECT YOUR INVESTMENT IN THE FOREX TRADING MARKET.
Good Forex money management can take a trader from gambling with his or her money ,hoping for a gain,but probably encountering many loses,to successfully trading while maximizing losses.It may not be as exciting as other aspects of Forex trading,but for traders who want higher gains,money management is an absolute necessity.
today,i will be explaining how to use risk/reward ratio as a tool in Forex money management in trading.The risk/reward ratio means the amount you are risking i.e your stop loss amount against the amount you stand to gain i.e your profit or limit on the trade.
For example, if you enter long on the GBP/USD at 2.0040 and you enter a stop loss or determine you will manually close the trade at 2.0020 if it goes the wrong way then your risk is 20pips per lot.If on the same deal you determine that your target or where you will take profit and close the trade is at 2.0140 then your reward is 100pips i.e 2.0140-2.0040=0.0100 or 100 pips.So on this particular trade your risk/reward is 100pips /20pips or 5:1.
If you have a risk /reward ratio of1:1 it means you risk the same amount as your reward each time,then obviously you have to win 50% of your trades to break even.Below are a few risk/reward ratios and the win percentage you need to break even.
1:1-50%,2:1-33%,4:1-20%,5:1-17% and 10:1 equals 10%.
The best traders I know practice good money management with good risk/reward ratios.Ratios of at least 2:1, up to 4:1.
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1.Trade Forex and Binary options/bonds from one account.
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HOW TO PROFITS WITH EUR/USD PAIR.
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stephenadebiyi |
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FOREX TRADING MARKET:HOW TO PROFITS WITH EUR/USD PAIR.
The fact is that if you as a forex trader buy the pair,you are betting that the euro will increase in value versus the USD and if you sell EUR/USD,then you are saying USD would increase in value to EUR.
To profit from this pair,you must take the advantage of what moves EUR/USD.
WHAT MOVES EUR/USD?
1.Surprises in US economic releases:This pair would move when results comes as a surprise,especially indicators that measure growth or recovery in the US.Thuis uncomplementary news on US economic growth favors the euro.
2.Interest rates:If Fed raises interest,it boosted the value of the dollar.This is because money would flow into the US as investors move to capitalise on these higher returns.
3.Oil prices:Since the US economy is highly dependent on imported oil,movements in the price of oil tends to impact the value of the dollar.
4.Trade:More imports to exports has tghe power to reduce the value opf the dollar in the long run because the market is very concerned with theb trade balance in the US.Changes means a shift in the value of the US dollar.
In all watch the Us economic data closely and take good advantage of uncertainty about US economic recovery.In the absence of a trend,go for range trading strategies.
HOW TO APPLY MONEY MANAGEMENT IN FOREX TRADING.
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stephenadebiyi |
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HOW TO APPLY MONEY MANAGEMENT IN FOREX TRADING.
PART 1
A traders money management style can be the difference between a loss and a gain.Most traders do not care for this aspect of trading,but it is very important.
In many cases of large losses,poor money management was the culprit.Everyone wants the $1billion profit in a single day,but that is market gamble.Good Forex management ,though,can give a trader much better odds of a large gain than a trader who has little or no money management.
I agree with some of my friends who are trends followers that beginner traders should not risk more than 1% of their total equity on any trade.At 1% ,a loss is very minimal and it is much easier to recoup and rebound.
On an individual trade ,the 1%makes little difference and even if the trader is wrong 20 times,he or she will still maintain 80%in equity.This type of Forex money management,however,requires discipline which is often in short supply with many traders.
Money is very easy to lose,but not so easy to make back.For example,a trader invests $100,000 and loses $50,000.This is a 50%loss.However,the percentage that the trader must make in order to get back to the original $100,000 is actually 100% this would mean that there was a 50% draw down,the percentage of the difference between the peaks and trough of an investment.
It is thus advisable that traders who are joining the Forex market for the first time should use speculative capital only.In deciding how much money to begin trading with,it is advisable to select an amount that can be considered as an acceptable loss.
HAPPY TRADING.
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