Online forex trading – Doji

  by Kunle Adeyeri

The Japanese invented the candlesticks and started using it in trading rice as far back as the 17th century. Today, the Japanese candlesticks have been adapted by the Western world in the world of online trading. Even though there are other chart graphs such as bar and line, the candlesticks give better visual and graphical details

A trader,like me, who mostly trades bare with the candlestick analysis still marvels at the Japs invention. I say this because the understanding of candlestick charting and analysis in technical trading solves over 70 per cent, if not more.

One of such inventions of these candlesticks world is the Doji. Doji can be likened as most authors have written to a tug of war where both sides at the end pull the rope but no one could overpower the other resulting in a stalemate. Hence its significance in trading.

Doji represents indecision and weakening of a trend and sends a warning signal to a trader who knows how to interprete it. A typical candlestick in forex trading has an opening price (O), High(H) Low (L) and Closing price (C). The relationship between the opening and closing is crucial to determining what is going on in the market.

In case of Doji the opening and closing price are virtually equal. Doji are important candlesticks that provide information on their own and as components of in a number of important patterns. Doji form when a currency pair open and close are virtually equal. The length of the upper and lower shadows can vary and the resulting candlestick looks like a cross, inverted cross or plus sign. Alone, doji are neutral patterns. Any bullish or bearish bias is based on preceding price action and future confirmation. The word “Doji” refers to both the singular and plural form.

Ideally, but not necessarily, the open and close should be equal. While a doji with an equal open and close would be considered more robust, it is more important to capture the essence of the candlestick. As earlier said Doji convey a sense of indecision or tug-of-war between buyers and sellers. Prices move above and below the opening level during the session, but close at or near the opening level. The result is a standoff. Neither bulls nor bears were able to gain control and a turning point could be developing.

Determining the robustness of the doji will depend on the price, recent volatility, and previous candlesticks. Relative to previous candlesticks, the doji should have a very small body that appears as a thin line. A doji that forms among other candlesticks with small real bodies would not be considered important. However, a doji that forms among candlesticks with long real bodies would be deemed significant.

The relevance of a doji depends on the preceding trend or preceding candlesticks. After an advance, or long white candlestick, a doji signals that the buying pressure is starting to weaken. After a decline, or long black candlestick, a doji signals that selling pressure is starting to diminish. Doji indicate that the forces of supply and demand are becoming more evenly matched and a change in trend may be near. Doji alone are not enough to mark a reversal and further confirmation may be warranted.

After an advance or long white candlestick, a doji signals that buying pressure may be diminishing and the uptrend could be nearing an end. Whereas a security can decline simply from a lack of buyers, continued buying pressure is required to sustain an uptrend. Therefore, a doji may be more significant after an uptrend or long white candlestick. Even after the doji forms, further downside is required for bearish confirmation. This may come as a gap down, long black candlestick, or decline below the long white candlestick’s open. After a long white candlestick and doji, traders should be on the alert for a potential evening doji star.

I will summarise the types of doji available as minus sign (-), plus sign (+), inverted cross, T-shape (dragon fly doji), inverted T (gravestone doji). It has been said that the prior trend is crucial but in my practical application of doji to trading the periodicity and the range(maybe daily) matter. I also consider the minus sign as the most potent or robust of all for example say EUR/USD : O =1.3320, H =1.3320, L =1.3320, C =1.3320). The higher the time frame (periodicity) the more robust the weakness and also the higher the reversal will be.

FAQ on Forex Trading and Forex Trading Signal Service

By Linda Wilkinson 

People tend to have many questions when they are presented with something new, especially when it is related to their money. The following are questions that homemakers frequently ask regarding forex trading and forex trading signal service:

Q1: Is forex trading safe?

A1: Trading forex is of course safe. The reason is because today more and more country regulates forex market and they enforce strict rules that every forex broker must follow. As a result, we find that only the good brokers stay in the forex trading industry. On a personal level though, it is up to you to determine the safety of your account. If you trade recklessly then you will find that your capital will drain rapidly. Sometimes it is faster to lose money in forex trading than in casino. Therefore, you need to prepare yourself mentally and acquire lots and lots of knowledge or you can choose to go with hiring a good profitable trader and subscribe to his trading signal service. The latter is by far the faster, easier way to trade forex if you have limited or no knowledge about forex at all.

Q2: Can a homemaker succeed in forex trading?

A2: Of course, you can succeed in forex trading just like other trader. Everyone who trades forex have the same opportunity. In fact, homemakers have more potential to succeed because they have the most flexible schedule and needless to say, they have more time at their disposal than any other newcomer in forex trading. Homemakers usually develop the ability to do multitasking and this is the number one reason they can manage hectic days without a hitch. And actually, people can multitask forex trading if only they know how to do it. First of all, they need to find a genuine forex trading signal service and subscribe to it. Second, just do the things they usually do day in day out. Homemakers don't answer to any boss so they can use their time in any way they want and do the tasks however they want as long as the finish the tasks. This is why homemakers have the most potential to succeed if they know how to manage their abundant time.

Q3: Do I need to have experience in international finance to start trading forex?

A3: If you decided to trade forex with your own might then you need to go through the learning curve. However, if you join a trading signal service you don't need to have any experience in trading at all. This is why assisted trading is deemed the easiest way to participate in the forex market. Assisted trading is a term used to describe trading using the assistance of a trading signal service.

Q4: Can someone who only graduates from high school trade forex?

A4: This answer is of course, yes. All you need to do is to find good trader who consistently profit from the market and pay him to let you know what currency pair to trade, when to enter the market and when to exit. If you are humble enough to let someone professional help you then you are fine.

Q5: What do I need to become successful in forex trading?

A5: You need to have a strong commitment, willingness to learn things and diligently update your knowledge or information. Most people fail because they don't have a strong commitment from the start. Also, many people just don't have the right kind of information or knowledge.

Q6: Do I need to have a high-tech computer?

A6: Absolutely not. You don't need to have a computer that look like Star Trek or any other alien spaceship. A computer with 512 RAM, Pentium 4 2.67 Ghz, 80 Gb hard disk drive and windows xp is enough for you to be able to trade forex. However you need to know that it is important not to open multiple programs that consume a lot of resources from your computer or heavy program while you are trading forex. In nature, forex software such as Meta Trader 4 (commonly abbreviated as MT4) is very light and does not require computer with high specification.

Q7: Do I need to have a high-speed internet to trade forex?

A7: Well, it depends on what you mean by high-speed. Generally, an internet connection with 512 Kbps or more is already enough. It doesn't really matter whether your subscription is DSL or cable. However, you need at least 1 Mbps if you want to incorporate scalping method in your trading because some scalping methods require you to trade using a time frame lower than 1 minute. Moreover, scalpers usually trade during active trading hours (session overlaps or session open). Nonetheless, scalping is not a trading method anyone can use. Also, it is important to note that while trading using wi-fi is not prohibited it is far safer to trade using wired internet connection. The reason is because internet connection loss is rare if you are plugged with a cable rather than using wireless connection.

Q8: What is the best forex broker out there?

A8: Most of today's brokers are good because of the increasing number of regulations that swept the forex trading industry. The list is long but there are paths that you can follow to determine which broker is the best for you. You can choose to use a forex broker that has a presence in your own country because this will reduce the cost of transferring fund to and from your trading account. You can choose to use a broker outside of your country if you are looking for features that your domestic broker doesn't have such as higher leverage or the ability to hedge or trade CFDs. Lastly, you can choose to use a forex broker based on the spread they offer. For whatever trading conditions that you require in a forex broker you will most likely find the broker that will suit your need.

 Q9: How much money do I need to have to start trading forex?

A9: The first thing you need to remember is forex trading is a business and as with any other business it requires a good business plan and enough capital to start. You have to keep reality in check and don't expect to enter the business with $250 and turn it to $1 million in a year. Sure, there are people who can make it but certainly not everyone. Generally, a sum of $10,000 is good to start with but many people usually start with as little as $5,000. 10% monthly return on a $10,000 account is $1,000 and it is $500 on a $5,000 account. Of course, with a solid trading plan, a good forex trading signal has the potential to drive more than 10% per month. However, consistency is what you should seek. If you can make 10% per month consistently you will see that your money will grow to a staggering $309,126.81 in 3 years. That's a growth of 3,091%. so as you can see, 10% is actually great over a span of 3 years. Stick to the goal of 10% per month and you'll reap the benefit in no time.

Q10: What is the best way to trade forex?

A10: To be brutally honest, the best way to trade forex is by subscribing to a forex trading signal service. Why? The reason is you still have full control of the account but you don't really need to do the entire task needed to be done in trading. This solution is the best because it is practical especially if you are new to forex trading and know little or nothing about forex trading. When you have more experience you can trade by yourself and in the long run, this is the best way to trade forex. However, it will take time to learn the ropes and build your confidence and gain experience. Moreover, you need to consider the costs that will incur by buying trading literatures. Overall, your costs will include time, effort and money. So the wise decision to make is to subscribe to a forex trading signal service first and learn how to trade forex properly at the same time.

Q11: How does a forex trading signal service works?

A11: The first step is you need to find the service provider that you believe can deliver strong and accurate trading signal. After that, you pay the fee upfront so you can use their service for the next 30 days. The next step is to get familiar with their service and choose the method of delivery for the trading signals. They will then alert you when a good trading opportunity surfaced. Finally, you need to enter the orders exactly as they send and you can stay away from your computer. You will be alerted if the market situation changes so you will be able to protect your profit or even maximize your profit.

Q12: How much time do I need to set aside everyday to trade forex?

A12: You don't really need to set that much time to trade forex if you are using a forex trading signal service because they will do the analysis and report the result for via email or text message (SMS). All you need to do is check the email or text message that they send which will only take 1 minute to do and then submit the orders from your trading platform. The latter will only take 5 minutes. So in total, you only need less than 10 minutes to trade forex per signal.

Q13: Can I leave my computer when I am trading?

A13: Honestly, you don't need to stay in front of your computer all day long to trade forex. There are trading methods that are suited for long term trader or medium term trader and those types of trading method do not require you to constantly monitor the market. Moreover, you can use internal function in the trading platform to alert you when price crossed the price you desired. There are also indicators that have built-in alert so you know when price reacts in a certain way calculated by the indicator.

Q14: Is there any proof that a homemaker ever succeeded in trading?

A14: Well, you won't be able to find out every single one of them on the net. The reason might be that they don't want to be known by the public or the media only hunt real life stories that can increase their media circulation (or attract traffic to their website). However, you will find a few of them if you search using Google. Just use the keyword housewives trading forex or any combination of similar keywords. There are popular stories around the net regarding homemakers succeeding in forex trading and the most popular of them is Ms. Torii from Japan.

Q15: Is there a good forex trading signal service that I can subscribe to?

A15: Absolutely. There are many forex trading signal services out there but in order to profit, you need to find the genuine one. Of course, it is not an easy task to find it because they all claim to have delivered profitable forex trading signals to many people. In all honesty not all of them can back their claim with real result. Moreover, subscribing to a genuine forex trading signal service alone will not guarantee that you will profit. There are certain things that you can do to optimize the result of your trading. You can go here if you want to read about it.
I hope you can find the answer that you are looking for but more importantly, I hope that the answers can remove your doubt so you can enter the world of opportunities and start making money from the forex market.

Surely, there are a lot more questions than those listed above. However, asking too many questions will not get you anywhere. So instead of asking questions you can use that energy in learning how to do this business properly reliable forex trading signal service. Ultimately only the doers will succeed in any business. So remove the doubt, give yourself a chance and take action forex trading signal service for homemaker because you have the potential to succeed in the trading world.

Online FOREX trading: Regaining public confidence

Kunle Adeyeri

Prior to this column debut, the public opinion generally towards forex trading is nothing to write home about. I could recollect how an editor of a business and entrepreneurship magazine turned me down. His reason was that they have tried themselves but people are losing money! My poser to him was that why are people losing money? He apparently had no answer.

At the debut of this column on Friday 26 October, 2012 cynics and pessimists and those who had experienced burnout in FOREX trading bombarded me with a lot mails and calls. Some even said I belong to one of the trainers who are not traders. I remain unmoved knowing it just a matter of time. As my campaign intensified weekly on the column and also with ample time devoted to allaying fears (proffering answers and solutions to calls, mails etc) the opinion began tilting.

Now as the third set of my three-month program is mid-way and some short intensive courses two which I have had in Lagos, the trainees have now become my evangelists as over seventy per cent of them are trading profitably. The present formal class has encouraged me to publish a book based on my method of teaching and simplifying what they thought was a herculean task. Referrals from my attendees are swelling. Over sixty per cent of my attendees so far are those who had had unpalatable experience before, no thanks to bad teaching from inexperienced trainers who are hardly traders and who rush FOREX trading training in one day seminar.

In fact, the eagerness or urge to hit the market again is boiling based on the assurance that FOREX trading is worth living on and conviction seen on various real or live accounts I trade profitably. The confidence has been instilled in them; hence their opinion has tilted towards a favourable disposition.

I write this piece from the Garden City and Oil City  of Port Harcourt based on inspiration (not the article intended for this week) from those my column have positively imparted on those who are about to benefit as well, having transversed Lagos-Abuja-Owerri and calling next on Benin City. The journey provided the opportunity to see some of my online trainees and also prospective investors who sought for meeting, putting voices and faces together.

Secondly are readers. Most have kept mute following me every week. But as soon as I introduced market analysis into the column they were forced to voice out. The opinion again tilted. Most confessed that they were of the opinion I write to fill a space. Even though they had faint faith in what I write weekly, but the analysis sparked interest. Traders who have used the analysis to generate profits confessed. I gave examples some weeks ago of just three who made over 1000 pips which had never happened ever since they have begun trading FOREX. Question from this community on my style evoked interests.

Thirdly is what I group as the FOREX traders community. The encomiums have begun to pour in from this community. Appreciating the publishing house for giving us a forum. Never mind what people say, there are a lot of traders in Nigeria and many who want to be. They have just been waiting for this moment to have the right person or persons to show them the way to profitable trading strategies. Subscription and enquiries for market signals and analysis it has swollen from this group.

The group of investors are not left out. I have had confidently ninety five percent success since the column debut. Of recent many have had to double their investments having seen mouth watering returns traditional investment cannot give even in three years in a short term. As I showcase to those who come to seek the truth in my claims, with rising demand and pressure so also I gently raise the bar.

This piece is not self chest beating appraisal but to tell of an opportunity of window for knowledge, investment and career for others. Unbelievably registration ahead for the next three moth programme scheduled for to begin in the month of August time is encouraging as registrants are jostling to have a seat in the limited formal and online classes. The nationwide one week intensive training tour for those outside my domain seems very positive too as they are looking forward to the proposed dates. Some are even asking me to shift the dates back as they cannot wait to share from this knowledge.

I had to take a look back myself. It has not been an easy task. It has been a bumpy road to profitable ways. I am not a trader who cannot truthfully share his past. Hence when readers, traders, trainees confront me with questions, they are or seem satisfied with my answers. Now I do nothing else except FOREX trading and all that surround it. Hence my gospel truth, for others to key into this profession where vast opportunity is still green. Why not enrol for the three month programme or the one-week short programme when it’s your location turn. Now FX Pulp is backing the one-week nationwide training to buttress the claim that windows of opportunities abound.

How To Double Your Money Every Week Or Even Every Day…with Japanese Candlestick

Thank you, Mr. Steve Nison, for "discovering" the art of candlesticks!

What is a Japanese Candlestick?

What is a Japanese Candlestick?

While we briefly covered candlestick charting analysis in the previous lesson, we'll now dig in a little and discuss them more in detail. Let's do a quick review first.

What is Candlestick Trading?

Back in the day when Godzilla was still a cute little lizard, the Japanese created their own old school version of technical analysis to trade rice. That's right, rice.
A westerner by the name of Steve Nison "discovered" this secret technique called "Japanese candlesticks", learning it from a fellow Japanese broker. Steve researched, studied, lived, breathed, ate candlesticks, and began to write about it. Slowly, this secret technique grew in popularity in the 90s. To make a long story short, without Steve Nison, candlestick charts might have remained a buried secret. Steve Nison is Mr. Candlestick.

Trading Okay, so what the heck are forex candlesticks?

The best way to explain is by using a picture:

Candlesticks are formed using the open, high, low, and close of the chosen time period.

• If the close is above the open, then a hollow candlestick (usually displayed as white) is drawn.
• If the close is below the open, then a filled candlestick (usually displayed as black) is drawn.
• The hollow or filled section of the candlestick is called the "real body" or body.
• The thin lines poking above and below the body display the high/low range and are called shadows.
• The top of the upper shadow is the "high".
• The bottom of the lower shadow is the "low".

Sexy Bodies and Strange Shadows

Sexy Bodies

Just like humans, candlesticks have different body sizes. And when it comes to forex trading, there's nothing naughtier than checking out the bodies of candlesticks!
Long bodies indicate strong buying or selling. The longer the body is, the more intense the buying or selling pressure. This means that either buyers or sellers were stronger and took control.
Short bodies imply very little buying or-selling activity. In street forex lingo, bulls mean buyers and bears mean sellers.
Long white candlesticks show strong buying pressure. The longer the white candlestick, the further the close is above the open. This indicates that prices increased considerably from open to close and buyers were aggressive. In other words, the bulls are kicking the bears' butts big time!
Long black (filled) candlesticks show strong selling pressure. The longer the black candlestick, the further the close is below the open. This indicates that prices fell a great deal from the open and sellers were aggressive. In other words, the bears were grabbing the bulls by their horns and body-slamming them.

Mysterious Shadows

The upper and lower shadows on candlesticks provide important clues about the trading session.
Upper shadows signify the session high. Lower shadows signify the session low.
Candlesticks with long shadows show that trading action occurred well past the open and close.
Candlesticks with short shadows indicate that most of the trading action was confined near the open and close.
If a candlestick has a long upper shadow and short lower shadow, this means that buyers flexed their muscles and bid prices higher, but for one reason or another, sellers came in and drove prices back down to end the session back near its open price.
If a candlestick has a long lower shadow and short upper shadow, this means that sellers flashed their washboard abs and forced price lower, but for one reason or another, buyers came in and drove prices back up to end the session back near its open price.

Basic Candlestick Patterns

Spinning Tops

Candlesticks with a long upper shadow, long lower shadow and small real bodies are called spinning tops. The color of the real body is not very important.
The pattern indicates the indecision between the buyers and sellers.
The small real body (whether hollow or filled) shows little movement from open to close, and the shadows indicate that both buyers and sellers were fighting but nobody could gain the upper hand.
Even though the session opened and closed with little change, prices moved significantly higher and lower in the meantime. Neither buyers nor sellers could gain the upper hand, and the result was a standoff.
If a spinning top forms during an uptrend, this usually means there aren't many buyers left and a possible reversal in direction could occur.
If a spinning top forms during a downtrend, this usually means there aren't many sellers left and a possible reversal in direction could occur.

Marubozu

Sounds like some kind of voodoo magic, huh? "I will cast the evil spell of the Marubozu on you!" Fortunately, that's not what it means. Marubozu means there are no shadows from the bodies. Depending on whether the candlestick's body is filled or hollow, the high and low are the same as its open or close. Check out the two types of Marubozus in the picture below.
A White Marubozu contains a long white body with no shadows. The open price equals the low price and the close price equals the high price. This is a very bullish candle as it shows that buyers were in control the entire session. It usually becomes the first part of a bullish continuation or a bullish reversal pattern.
A Black Marubozu contains a long black body with no shadows. The open equals the high and the close equals the low. This is a very bearish candle as it shows that sellers controlled the price action the entire session. It usually implies bearish continuation or bearish reversal.

Doji

Doji candlesticks have the same open and close price or at least their bodies are extremely short. A doji should have a very small body that appears as a thin line.
Doji candles suggest indecision or a struggle for turf positioning between buyers and sellers. Prices move above and below the open price during the session, but close at or very near the open price.
Neither buyers nor sellers were able to gain control and the result was essentially a draw.
There are four special types of Doji candlesticks. The length of the upper and lower shadows can vary and the resulting candlestick looks like a cross, inverted cross or plus sign. The word "Doji" refers to both the singular and plural form.
When a Doji forms on your chart, pay special attention to the preceding candlesticks.
If a Doji forms after a series of candlesticks with long hollow bodies (like White Marubozus), the Doji signals that the buyers are becoming exhausted and weakening. In order for price to continue rising, more buyers are needed but there aren't anymore! Sellers are licking their chops and are looking to come in and drive the price back down.

If a Doji forms after a series of candlesticks with long filled bodies (like Black Marubozus), the Doji signals that sellers are becoming exhausted and weak. In order for price to continue falling, more sellers are needed but sellers are all tapped out! Buyers are foaming in the mouth for a chance to get in cheap.
While the decline is sputtering due to lack of new sellers, further buying strength is required to confirm any reversal. Look for a white candlestick to close above the long black candlestick's open.
In the next following sections, we will take a look at specific candlestick formations and what they are telling us. Hopefully, by the end of this lesson on candlesticks, you would know how to recognize candlestick patterns and make sound trading decisions based on them.

Lone Rangers - Single Candlestick Patterns

Hammer and Hanging Man

The hammer and hanging man look exactly alike but have totally different meanings depending on past price action. Both have cute little bodies (black or white), long lower shadows, and short or absent upper shadows.
The hammer is a bullish reversal pattern that forms during a downtrend. It is named because the market is hammering out a bottom.
When price is falling, hammers signal that the bottom is near and price will start rising again. The long lower shadow indicates that sellers pushed prices lower, but buyers were able to overcome this selling pressure and closed near the open.
Just because you see a hammer form in a downtrend doesn't mean you automatically place a buy order! More bullish confirmation is needed before it's safe to pull the trigger.
A typical example of confirmation would be to wait for a white candlestick to close above the open to the right side of the hammer.
Recognition Criteria:

• The long shadow is about two or three times of the real body.
• Little or no upper shadow.
• The real body is at the upper end of the trading range.
• The color of the real body is not important.

The hanging man is a bearish reversal pattern that can also mark a top or strong resistance level. When price is rising, the formation of a hanging man indicates that sellers are beginning to outnumber buyers.
The long lower shadow shows that sellers pushed prices lower during the session. Buyers were able to push the price back up some but only near the open.
This should set off alarms since this tells us that there are no buyers left to provide the necessary momentum to keep raising the price.
Recognition Criteria:

• A long lower shadow which is about two or three times of the real body.
• Little or no upper shadow.
• The real body is at the upper end of the trading range.
• The color of the body is not important, though a black body is more bearish than a white body.

Inverted Hammer and Shooting Star

The inverted hammer and shooting star also look identical. The only difference between them is whether you're in a downtrend or uptrend. Both candlesticks have petite little bodies (filled or hollow), long upper shadows, and small or absent lower shadows.
The inverted hammer occurs when price has been falling suggests the possibility of a reversal. Its long upper shadow shows that buyers tried to bid the price higher.
However, sellers saw what the buyers were doing, said "Oh heck no" and attempted to push the price back down.
Fortunately, the buyers had eaten enough of their Wheaties for breakfast and still managed to close the session near the open.
Since the sellers weren't able to close the price any lower, this is a good indication that everybody who wants to sell has already sold. And if there are no more sellers, who is left? Buyers.
The shooting star is a bearish reversal pattern that looks identical to the inverted hammer but occurs when price has been rising. Its shape indicates that the price opened at its low, rallied, but pulled back to the bottom.
This means that buyers attempted to push the price up, but sellers came in and overpowered them. This is a definite bearish sign since there are no more buyers left because they've all been murdered.

Double Trouble - Dual Candlestick Patterns

Engulfing Candles

The bullish engulfing pattern is a two candle stick pattern that signals a strong up move may be coming. It happens when a bearish candle is immediately followed by a larger bullish candle.
This second candle "engulfs" the bearish candle. This means buyers are flexing their muscles and that there could be a strong up move after a recent downtrend or a period of consolidation.
On the other hand, the bearish engulfing pattern is the opposite of the bullish pattern. This type of pattern occurs when bullish candle is immediately followed by a bearish candle that completely "engulfs" it. This means that sellers overpowered the buyers and that a strong move down could happen.

Tweezer Bottoms and Tops

The tweezers are dual candlestick reversal patterns. This type of candlestick pattern could usually be spotted after an extended up trend or downtrend, indicating that a reversal will soon occur.
Notice how the candlestick formation looks just like a pair of tweezers!
Amazing!

The most effective tweezers have the following characteristics:

• The first candle is the same as the overall trend. If price is moving up, then the first candle should be bullish.
• The second candle is opposite the overall trend. If price is moving up, then the second candle should be bearish.
• The shadows of the candles should be of equal length. Tweezer tops should have the same highs, while tweezer bottoms should have the same lows.

Three's Not A Crowd - Triple Candlestick Patterns

Evening and Morning Stars

The morning star and the evening star are triple candlestick patterns that you can usually find at the end of a trend. They are reversal patterns that can be recognized through these three characteristics:

1. The first stick is a bullish candle, which is part of a recent uptrend.
2. The second candle has a small body, indicating that there could be some indecision in the market. This candle can be either bullish or bearish.
3. The third candle acts as a confirmation that a reversal is in place, as the candle closes beyond the midpoint of the first candle.

Three White Soldiers and Black Crows

The three white soldiers pattern is formed when three long bullish candles follow a downtrend, signaling a reversal has occurred. This type of candlestick pattern is considered as one of the most potent in-yo-face bullish signals, especially when it occurs after an extended downtrend and a short period of consolidation.
The first of the three soldiers is called the reversal candle. It either ends the downtrend or implies that the period of consolidation that followed the downtrend is over.
For the pattern to be considered valid, the second candle should be bigger than the previous candle's body. Also, the second candle should close near its high, leaving a small or non-existent upper wick.
For the three white soldiers pattern to be completed, the last candle should be at least the same size as the second candle and have a small or no shadow.
The three black crows candlestick pattern is just the opposite of the three white soldiers. It is formed when three bearish candles follow a strong uptrend, indicating that a reversal is in the works.
The second candle's body should be bigger than the first candle and should close at or very near its low. Finally, the third candle should be the same size or larger than the second candle's body with a very short or no lower shadow.

Three Inside Up and Down

The three inside up candlestick formation is a trend-reversal pattern that is found at the bottom of a downtrend. It indicates that the downtrend is possibly over and that a new uptrend has started. For a valid three inside up candlestick formation, look for these properties:

1. The first candle should be found at the bottom of a downtrend and is characterized by a long bearish candlestick.
2. The second candle should at least make it up all the way up to the midpoint of the first candle.
3. The third candle needs to close above the first candle's high to confirm that buyers have overpowered the strength of the downtrend.

Conversely, the three inside down candlestick formation is found at the top of an uptrend. It means that the uptrend is possibly over and that a new downtrend has started. A three inside down candle stick formation needs have the following characteristics:

1. The first candle should be found at the top of an uptrend and is characterized by a long bullish candlestick.
2. The second candle should make it up all the way down the midpoint of the first candle.
3. The third candle needs to close below the first candle's low to confirm that sellers have overpowered the strength of the uptrend.

Trading

Forex Scalping Indicators MT4

By James T Taylor 

The Forex Scalping Indicators MT4 is particularly intended to help analyze short-term price fluctuations. It is one of the most extensively used by many active traders in the market for the Meta Trader platform. For the long-term investors, the scalping indicator can help determine good points to enter or exit by helping in speculating on future price levels or trends through the proper evaluation of past patterns.

The Meta Trader 4 is a Forex indicator developed using the MQL4 programming language. It can be used to create manual Forex trading strategies. Meta Trader 4 indicators can be categorized into several groups - general purpose, multi- time frame, divergence, statistical, and free foreign exchange indicators. These can be downloaded online which will give you an opportunity to test them before actual deployment on the Meta Trader platform. Additional alerts for the MT4 indicator can be put in place including email, sound, and pop-up alerts.

Choosing the Right Forex Scalping Indicators
There are several factors that need to be considered when selecting the appropriate Forex scalping indicators MT4 to use. For one, divergence indicators tend to be most accurate in flat Forex markets just like other oscillators. They are therefore advisable to use with MT4 indicators when determining the possible direction the Forex market will go. There are also specific indicators that work best with MT4 for various purposes such as Forex scalping, intraday trading, and even for long-term Forex trading strategies.
A good idea is to evaluate various Forex indicators from different sources and try them out on the Meta Trader platform. Using several divergence indicators in combination with the indicators of Forex market tendencies can help clear up an enter signal and make it possible to secure a good position in a trending market.

The Benefits of Meta Trader 4 Indicators
One good thing about these MT4 indicators is that they come with source code in MQ4 file format. This means you can break it down and manually analyze what it is supposed to do, and make adjustments when necessary. Likewise, the Forex scalping indicators have been tested by experienced professional Forex traders. The indicators are not rehashed and they employ proven mathematical algorithms in the program. Additional alerts are also available and can easily be installed if required.

The Forex Scalping Strategy
A lot of trades last for only a few minutes, less than a minute even in some cases, and the targets are normally from 5 to 15 pips. The idea is to get in and out with some profits whenever possible, and to immediately get out of bad positions to prepare for future trades. Experienced day traders who use a relatively longer time frame use the same Forex scalping indicators MT4 in their trading strategy. This is because it is easy to use and does not present too many complications which is a good thing as you do not intend to stay long in the trading market for long periods at a time. This way, you will be able to optimize gains while at the same time minimize your losses from losing trades.

James T. Taylor is a successful and experienced Forex trader, know his ways getting hot Pips. Now helping traders by sharing his skills. He is also a webmaster for forexpips, bringing you all the latest Forex information, advice and reviews. Best of all he is giving away Fishing Forex Pips's Indicator System you can download from this link: forexpips

Trading

Learning How to Execute Proper Forex Risk Management

By Paul Bryan 

The foreign exchange or forex market is one of the largest and most liquid financial markets in the world with a daily transaction of almost 1.5 trillion U.S. dollars. Banks, financial institutions and individual investors, therefore, have huge potential of economic gain as well as losses.

Foreign exchange risk is a potential gain or loss that occurs as a result of a change in exchange rate. In order to minimize the possibility of financial loss, every investor needs to adopt some forex risk management measures.


For minimizing forex risk, one must remember few basic points:

 (1) value of a currency changes frequently affecting firms and individuals engaged in international transactions;
(2) assets, liabilities, and cash flows are affected through changes in the exchange rates.

So the forex market presents risks involving accounting and translation exposure, economic exposure, transaction exposure and real operating exposure.

Transactional exposures involve quite high risk for foreign exchange. Impact of exchange rate fluctuations on present cash flows, export and import, borrowing and lending in foreign currency, all can cause fluctuation in currency rates which should be considered while developing risk management features.

In most currencies there are futures or forward exchange contracts whose prices give indication on expected market prices of the currencies. These contracts can lock in the anticipated change. So the foreign exchange risk arises due to unanticipated exchange rate changes.

Foreign currency risk management involves managing two types of risk: systematic and unsystematic risk. Systematic risk affects all investments, such as the market risk, inflation risk and interest rate risk. Unsystematic risk relates to individual events that affect a particular investment, such as the business risk and financial risk. Unsystematic risk can be hedged.

If you are a trader or an investor engaged in day or intra-day trading, you must have a trading strategy at place. Your online broker or trading platform should incorporate risk management features in their trading strategies.

The signals and indicator to be generated must be based on risk analysis. You can join some professional workshop or course on foreign exchange risk management where you can learn the basics. The course should be interactive and customized where you can get your specific queries answered.
It is important that foreign currency risk management begins before the risk exposures and not after it has developed. The risk management course should include practical examples from real life incidents on basis of which you can learn the techniques of decision-making.

For calculating foreign exchange risk factors, you can find many advanced project management software that has integrated risk analysis. You can seek help from financial advisers who monitor, assess and hedge the risk in particular investments and in overall portfolios, depending on the investment objectives of the investor.
The foreign exchange risk management should use market indexes and averages in market analysis. It should consider theories of forex market behavior, including technical fundamental analysis. The risk management methods should periodically review investment objectives like safety, growth, speculation, and should always inform the investor about his or her investments.

Learn how to reduce your Forex trading losses by visiting Foreign Exchange Risk Management.

Trading

Forex Trading Exits Strategies.

By Danielle Franklin 

In forex trading making correct entries seems to be an easier task than making exits. Most traders suffer from exiting-too-early syndrome and therefore missing out the extra points. In most cases bad exit taking causes you to miss out on more than half the profit you could have. What are the key factors when it comes to staying in or exiting?

Is it more profitable, for example, to just set the stop and the limit, and wait until either of them gets reached? Does the understanding of exits available help minimize losses and lock in profits?

How many times has the market missed your target by just a small fracture, and then continued moving in the direction you have predicted without you "on board"?! Or, on another unfortunate trading day, forex market simply misses your profit target and leaves you with nothing, or even worse - loss! Obviously making profits is the hardest part in forex trading. It can take years to figure out how to enter but not how to exit.

No matter how complicated, if you want to make money you will have to find a point to exit. Optimizing the trading strategy is the key to forex success. To track and understand decisions better, some traders create a trade log and write down the reasons each time they exit a trade. It is time consuming and may take weeks, months or even years to understand the flaw in the current strategy. However, usually after the first month the trading pattern emerges and traders can mortify the flaws to maximize returns.

Figuring out exits is similar to predicting the future. It is extremely difficult if not impossible. Knowing for sure where to exit requires aiming for a specific target. However, keep in mind that setting a target restricts the profits from running.

Before you enter a trade, consider the following factors. Firstly, you should plan out the length of the trade. Secondly, try to figure out the risk you are willing to take. Last but not least, ask yourself when a good time to get out is.

Every trader is different and you need to find what suits you best and stick to the plan. Also keep in mind that it is impossible to always be in a win-win situation, so you need to calculate your risk/reward ratio and whether the trade is worth taking before you actually place a trade.
This is quite general, but here are some things to consider:

1. Fractals.
Using fractals allows you to know when to change the stop and to follow the market down as it goes.

2. Resistance/Support. You can decide on an exit on some resistance/support area targeted on a higher timeframe.

3. Fibs. Fib extensions are your magic wand. Use it for your own good.

4. Moving average. Set a stop right behind the moving average.

5. Last but not least, consider scaling. Consider closing half at the original target, run balance and see how things progress. If the market pulls back to the original target, then you can simply close the balance. In other case, run a trailing stop.

Most importantly, when you decide on a strategy, stick to it. You cannot control the market, but you can get a hold of your forex trading behavior.

Trading

Forex Profit Signals

By Pradipta Kumar Bari 

What is Forex Trading:
Forex Trading is trading currencies from different countries against each other. Forex is an inter-bank market that took shape in 1971 when global trade shifted from fixed exchange rates to floating ones. This is a set of transactions among Forex market agents involving exchange of specified sums of money in a currency unit of any given nation for currency of another nation at an agreed rate as of any specified date. During exchange, the exchange rate of one currency to another currency is determined simply: by supply and demand - exchange to which both parties agree.
Actually Forex is the financial game between BULLS and BEARS.
The Major currencies pairs are:
EUR/USD
GBP/USD
USD/JPY
USD/CHF
USD/CAD
AUD/USD
And these are the 6 best Forex Markets.
What are Forex Signals?
Forex signals are indicators that let you know when it's a good time to buy or sell a currency pair. They provide you with insight as to what's going on in the Forex market without the necessity to monitor Forex trends throughout the day. If you are self-employed or employed by another company, Forex trading is likely a part-time endeavor for you. You won't have time to sit at the computer and monitor the Forex market all day. Forex signals can be delivered to you throughout the day by professional Forex traders to give you a heads-up on what's going on in the market. You can receive the signals, and then place the signals for buy or sell.
Forex signals are basically "suggested" buy and sell points with price targets and stop-loss levels delivered by fx signal providers to traders. They may be delivered by email, instant messenger, cellphone, live currency trading systems or direct to your Forex signal metatrader on your desktop.
Forex trading is a risky business and it takes some time to master the art of Forex trading signals. There are a number of fx signal providers but before you choose, you need to make sure you have done your homework. Always ask for the Free signals to deliver for 3 to 5 days and test those signals in your Demo Account.
The main characteristics of Forex trading signals to be aware of are as follows;
Cost: monthly subscription
Complexity: Simple "one email a day" OR Full-Service
Control: You keep full control OR the signal provider trades your a/c for you
Most Forex trade signals charge a very modest subscription fee, usually in the region of USD $80 - $400 per month.
If you're new to Forex trading, you probably realize how important it is to make the right trading decisions. One wrong trading move can drastically harm your portfolio while a good move can bring tremendous profits. That's why trading signals are so important. Once you've tried a Forex demo account for practice and created a strategy that works for you, you can add trading signal services as a useful tool in your Forex trading.
With online Forex, finding a trading signal service is easier than ever.
In their simplest form a Forex trading signal will send you a Forex alert email once a day listing trade set ups for the next 24 hours.
Some Forex signal providers offer a free trial service, thus allowing currency traders to sample the signals to assess their worth. This is a helpful step, as it allows the trader to consider the quality and reliability of the signals before paying money. This is a crucial element in the research process, and weeds out the providers who want money upfront as they are not confident in their ability to call profitable trades. This is a good service that you can try for free for 3 to 5 days.
Various fx signal providers offer a few complimentary services along with the featured ones. Look for a fx signal company that provides email support, phone assistance and even mentoring to their clients. This is of great value, especially to new traders.
They assign their time assisting traders in taking buy/sell decisions. Forex traders depend upon and trust the recommendations of these professional signal providers, while making investing decision in the Forex market
Forex signals are not meant to be a magic solution to all your Forex problems. They are designed to inform you about the market.
Forex business timing is extremely crucial; a trader can earn millions or lose even more depending upon the his timely or untimely actions. Besides, being the biggest market on the face of earth - it generates business activity of almost 3 trillion USD, it operates around the clock, all over the globe, making it thus impossible for a trader to stay vigilant all the time about market fluctuation and probable changes therein. Therefore a trader needs alarms and indicators to get knowledge about the possible opportunities and probable pitch points. Hence the need for Forex signal or alerts. Basically Forex alert or signal is a communication or intimation to the trader indicating the ripe time to buy/sell and the suitable price to pay/ask. Most of the time, such signals and alerts are provided by trained professionals, either individual or companies.
When choosing a Forex signal service, be sure the company offers the type of signal alerts you need. Every person is different. Some require computer or email alerts, while others are not accurate Forex signals are made for both professional traders and although new traders. The best Forex signals trading system is going to cover multiple situations on the Forex market. For instance the best Forex trade signals is going to cover all major currencies like GBP, USD, and EUR at all times the market is open, not only for specific situation. Simply to get the full value of your Forex trade you must know what is happening in regards to all the major currencies. The Forex system should also be able to give you at least 1-3 Forex trading signal alerts a day.
Some Forex trading signals are high volume scalpers, calling many trades in a day aiming to profit a handful of pips on each. Others only call a few trades a day, aiming to profit 20 - 80 pips on each single trade.
Forex trading signal providers help you in minimizing risks or losses in trading.
Forex signals are generally given on a daily updated basis and all are contingent on factual market analysis and behavioral flow and not on mere hearsay and other speculations.
The signals are calculated and generated by using different indicators such as trends, moving average, Elliott waves, Bollinger bands, Fibonacci series, etc. In spite of that, some uses strategies like:
Pip Maximizer Method 1
Pip Maximizer Method 2
Pip Reversal Method
Pip Divergence Method
Instant Pip Method
Pip Retracement Method
Quantum Pip Strategy
... to give profitable and accurate signals.
The following question I wish to raise, is the abundant selection of Forex signals from which we can choose. Because of the variety of service providers, they offer different services, of which we must be aware. The first type of Forex signal provider will just send out trade alerts by email, often daily, sometimes at several intervals throughout the day. Thus you need to have a laptop of email receiving device ready at all times, to gain the most from trading Forex signals.
The next type to consider are through EA/Expert Advisors. These types of signals are not good at all because those are the computer oriented programs which can ruin your money within a few trades. But fortunately this is not such a big problem today, as more traders have email reading devices. The most crucial aspect concerning the format you receive the signals, is to ensure that you receive them immediately, and have the capability to act on them straight away - so you have to have immediate access to your Forex brokerage account, and place the trade as soon as you humanly can.
A unique benefit of trading Forex signals is that it gives guidance and discipline in a Forex currency trader. Forex profit signals service providers send you alerts when the conditions are right for the trade. They use cutting-edge technology which constantly monitor all major currency pairs for generating technical indicators.
Forex signal generators produce Forex signals which are indicators of ideal trading opportunities. These are certain algorithmic patterns which have been evident in successful Forex trades throughout the years. These Forex signals are then fed onto the program of Forex automated EA or Expert Advisors. This program will then either make Forex trading decisions for the individual while s/he is away from the computer or advice the individual about what to do. Forex EAs act like wizards which monitor currency ratings through online Forex Trading Platforms. One can look at Forex signals as triggers of commands which allow the automated system to function.
Forex signals can immeasurably add to the profits of a Forex trader.
How to Receive Forex Signals:
Forex signal services are available to provide signals to you around the clock. These services usually have professional Forex traders who monitor the market 24/7 and provide you with up-to-date information. These services often charge a monthly or yearly subscription fee for their services. The methods used to deliver the Forex signals to you can vary from one service to the next. Signals can be sent through email alerts, to your phone or cell phone, through your pager, or even through a pop-up software system that will show a screen on your computer each time a signal is sent. The services also vary in how they present information to you. Some will provide live charts to give you more insight as to what as happening in the market.
Time frame for which the Forex trading signals are generated is equally important. Few trading signals can be valid only for a few minutes or an hour; others may have recommendations that are valid for a day or more. If the Forex trading signal providers generate signals for shorter time frame, you need to monitor the market frequently.
Some Forex signal service providers offer add-on services like email or mobile alerts. The service provider should have end-to-end technical support for the customers.
Even with experienced traders calling your trades, it's prudent risk management to never ever risk more than 3% of your initial capital on any one trade, preferably only 1%. So, if for example your initial capital, (or to put it another way, the maximum you can afford to lose) is let's say 5,000, the position size you take on each trade should be such that if the trade hit your stop loss, your maximum loss would be no more than 1% x 5,000 = 50.
Forex signal providers render Forex business quite a bit easy for traders, especially those who are relatively new in the business. Forex signal generation and provision can be either manual or automated and it provides entry/exit points of the trade streak for major or already chosen currency pairs. In manual signal generation system a simple trade signal is provided by the single provider. In automated signal generation system, the Forex system not only intimates and alerts the trade to either enter or exit the trade, but some times makes the deal by operating in synchronization with the trader's bank or broker.
Initially Forex signals and alerts used to come in the form of telephone calls and facsimiles. Now as we have stepped into the era of information revolution which has brought forth amazingly advanced digital technology, Forex signals and alerts generation and provision system has also advanced and become much more sophisticated and quick. Now these alerts come in the form of e-mails, SMS (Short Message Service, a way of sending text messages to mobile devices), or desktop software. However with trading Forex signals, there is no such chance to over trade your account. It is absolutely possible to learn the mental aspects of trading, by following a set of rules, and not to deviate from those rules.
Many trading Forex signals provide you with a complete set of instructions in order to take the trade. Frequently the signal will have multiple exits, which enable a trader to take money off the table in small steps. So this enables the currency trader to input all of these prices into his trading platform when he gets the signals, and then to switch off the computer.
As for any purchase, it is essential that the Forex trader first does his research into the more effective trading Forex signal service for him or her. This involves a lot of careful research, and reading various reviews and testimonials of the service in question. Before I go, in conclusion, the trader is strongly advised to practice using the trading Forex signals on a demo account first, so that the Forex trader can totally test out the profitability of the signals. This has an supplementary benefit for a complete new, as it will enable the currency trader to become familiar with the trading platform, and reduce the possibility of making any mistakes.
Whenever possible, go for a free demo account and then try your forex signals for a few days before becoming a paid member. Forex trading does involve some planning and strategy building so be prepared for a steep learning curve before trading with real money!
I'm going to start by telling you some cool facts about the FOREX market.
As you may already know, FOREX is the acronym for "The Foreign Exchange Market." This market concerns itself with the buying and selling of the currencies of just about every country on earth. This market is BIG! So big, in fact, it's hard to wrap your mind around the size of it.
Listen. The daily average volume of FOREX is:
Almost 5 TRILLION Dollars Per Day!
I'm going to try to bring that fact home for you: The New York Stock Exchange has a daily volume of approximately 50 billion dollars. That means the FOREX is 100 times larger than the NYSE
Actually, the daily volume of the FOREX is triple the size of all other investment markets combined!
In spite of its size, the FOREX does not have a physical location or a central exchange. It operates through an electronic network of people, banks and companies that specialize in trading one currency for another.
Almost all FOREX trades are executed on the internet by someone sitting at a computer with a high-speed connection. So, if you don't like working with a computer you may as well stop reading... because... you will be left out.
Still with me? Good.
The Only 24 Hour Financial
Market In The Whole World
Because the FOREX does not have a physical location or a central exchange, it is able to operate on a 24 hour basis leapfrogging from one time zone to another across the major financial centers of the world.
The FOREX market actually follows the sun around the globe... because... as one country is closing for the day, another is just opening up. This market is open 24 hours a day, six days a week from 5:00 PM Sunday (East Coast Time) to 4:00 PM Friday (East Coast Time). This 24 hour access combined with its huge trading volume makes this...
The Most Liquid
Market On Earth!
Except for Saturdays, you can enter or exit the FOREX market anytime night or day. This market has virtually no gaps whatsoever and your stop-loss orders are almost guaranteed.
Can you imagine that? The multi-trillion dollar liquidity, combined with 24-hour trading access virtually guarantees your stop-loss orders will be executed without slippage.
Just try to get that kind of guarantee from your stockbroker!
The stock, futures and options markets cannot offer you this guarantee because the limited trading hours create frequent gap opens. Nearly all Forex brokers make sure their hours of operation coincide with the hours of operation of the global FOREX market.
Let's see, what else?
Oh, yeah, no one can corner the market. The FOREX market is so huge and has so many global participants that no single individual nor entity... not even a central bank... can control the market for any significant period of time.
Plus,
There Is No Insider Trading!
Because of the vast size of the global FOREX market and its non-centralized nature, there is no chance whatsoever for disruptions caused by insider trading. There is less chance for fraud in the FOREX than in any other investment market. Best of all forex can never become zero but stocks can become zero and majority of the options expire worthless.
There are no commissions. Yep, you read it right. No exchange fees, no closing fees, no government fees, no brokerage fees. This all adds up to a very low retail transaction cost. If you select your broker properly, your round-trip transaction cost could be as low as .07 percent.
And know this, a very desirable by-product of extremely high liquidity is almost instantaneous transactions executed with blinding speed. You can leverage your trades by a factor of 50 to 1, 100 to 1 and even 400 to 1.
Not only that, you can trade with a very low margin with relative safety compared to the disastrous potential of margin trading found in other financial markets. Also it is tax free income if the country you reside has no capital gain tax.
And finally, if you get really great at currency trading, your potential financial reward is so big it can make your head swim!
As an experienced researcher, my idea is to learn and share everything I can with my readers. Stay tuned for more business, travel and career ideas as I love to write about this subjects and more...

I have the Love and Passion for Trading which force me to spend countless hrs for learning, experimenting & perfecting the Art & Science of Trading. My ultimate purpose is to help you live the life that you deserve. I know how it is, most people work hard to make a living, yet it feels like a never-ending treadmill. After paying the bills, there doesn't seem to be enough left over to enjoy what life has to offer. I know EXACTLY how it feels, because I was there once. I did my research and discovered how many of the world's richest people had made their fortunes. I modeled my efforts on their example, and invested time, money and energy to learn all I could about Trading

Best online forex trading broker

Forex trading can be a risky business. While hundreds of people have gainedmillions in profits through this trade, others have also experienced huge loss in it. As with any kind of investment, it all boils down to making sound decisions in forex trading.

These sound decisions actually start with choosing a high-quality forex trading broker or your trade could instantly turn into an unlucky throw of a dice, so to speak. This is especially true if you are a new investor who's looking for a reliable forex trading advice. If you wish not to trade in the dark, read on to find out what to look for in a forex trading broker, where to find the best one, and how to establish a professional relationship with them.

The good qualities of online forex brokers as follows:

Experience

Experience, they say, is the best teacher. As with any profession, forex trading brokers get better with longer experience in the trading arena. That's why this is the first thing to look for in a broker: a proven track record. Otherwise, you will find it hard to trust the advice of a broker.

Customer service

Customer service is a series of activities designed to enhance the level of your satisfaction – that is, guide you through the process of opening an account, downloading the platform and placing a trade, live chat and 24/7 telephone numbers.

Account

The account type is the second thing to take into consideration. Be sure to check if the forex trading broker has an account that offers sufficient liquidity. What else can be a better gauge for this than your expected amount of investment? If, for example, you expect to trade $70,000, it would be unwise to go with a broker who holds smaller accounts. The key is to find a broker with both financial stability and sufficient liquidity for your investments.

Trial

Some forex trading brokers are better salesmen than performers. Simply put, their promises of premiere service and reliability are nothing but lip service. So you won't fall for this trap, go on a trial with a broker. Put the 24-hour support to the test by finding out how long the broker can get back to you when you have a question or issue to clarify. Make sure that the broker can be reached both via phone and the Internet. Through a trial, you can find out if your forex trading broker gives automatic execution. This is a good way to know if the broker provides dealing tools that are important during the trading process. There's nothing like having a broker that offers real-time charts, real-time data and news, and technical analysis.

Leverage

Leverage is one big word in the forex trading world. It comes as a ratio between the total capital available for you to trade and your actual capital. The more leverage you have, the more you can increase your potential profits. By choosing a trading broker with a higher margin, you get more leverage. For instance, if your broker offers a leverage of 300:1, this means they can offer $300 for very $1 of your actual capital. When choosing a broker, a good guiding point is to make sure that he or she offers you at least a leverage of 200:1.

Bigger leverage, though, means higher risk in losing money. This is where guaranteed stop comes into the picture. Go with a broker that provides guaranteed stop protection and negative balance protection.

Type of currency pair

Next, you must take into account the currency pair or pairs you expect to trade. It's just a matter of finding a broker that offers the kind of currencies you want to trade.

Time

The times at which you trade also play a big role in choosing your forex broker. This determines the spread (the difference of the buying price from the selling price), which varies at different times of the trade. For instance, if you expect to trade off market times, you should select a broker that offers a fixed spread. In contrast, if you want to trade during peak hours, you'll do well in selecting a broker with variable rate spreads. By going on a trial with two or more brokers that offer different spreads, you can better decide on which broker gives better value for your money.

Trading platform

The trading platform itself gives you an idea as to whether or not you're dealing with a reliable forex broker. Select a platform with such features as limit and stop orders and one-cancels-other orders. Hidden charges can be a problem with some forex brokers. That is why you should make sure your transaction cost covers only the currency spread and no extra fees or commissions.

Country

Check the country of your forex trading broker. Their country actually has significant tax and legal consequences since regulations vary in different jurisdictions. You can make better comparisons of forex brokers by consulting your legal, tax, or financial advisor.

Finding the best one

Learn from other people's experience. One good way to make sure you're choosing a good broker is to find people who have had experience with good brokers themselves. Ask for referrals from friends. If none of your friends or acquaintances is into forex trading, then you can ask for client references from a broker. You can also visit online forums. Such communities are great venues to know which forex trading brokers are truly reliable.

Once you have chosen a good broker for the trade, it's time to establish a professional relationship with them. After all, making good money is usually borne out of good relationships. While you should look for a forex trading broker who's available 24/7, you yourself should be available either through phone or the Internet. From the very start, let them know when they can call or email you. This is crucial since you often have to make fast decisions in the trade. It's important to be open to your broker, especially when you are not sure about the kind of deals you make. It can be helpful to ask questions when you have doubts about matters.

Do your own homework. Any broker would find you annoying if you rely too much on his or her skills. While it is important that you trust your broker when he or she gives you advice or suggestions, you will do well in trusting your broker while researching on the side about information that can affect your own investments. Researching means regularly reading forex charts and being in the know about the latest economic and political issues.

Stick to the trade. It's best to limit conversations with your forex trading broker to topics related to your investments. Getting too personal is never a good way to have business with them.

WHY YOU SHOULD INVEST IN ONLINE FOREX TRADING.

What Is Forex?

Forex is the art of making money through trading currencies.

How Can You Trade Forex?

Very easy! You buy and sell currencies online through your personal computer and from the comfort of your home.

What Do You Need To Start Trading Forex?

• Forex Trading Skill And Experience:
  You have to have the trading knowledge and experience to start trading forex. Making money through forex trading is easy, but you should learn how to do it, otherwise you will lose.
• Forex Trading Account:
  It is like a bank account. You open it, deposit some money in it and you can start buying and selling currencies against each other. To have a forex trading account, you should open an account with a forex broker.
• Forex trading software (platform):
  It is a very simple and easy to use software that gives you the currencies' prices and the tools that you need to analyze the currency market and place your orders. When you open a forex trading account with a broker, they provide the trading platform too. 
  
  

  Benefits online Forex Trading

Trader/investment manager

With good technical ability, trading on behalf of investors becomes a lucrative means of living. It could be trading on account in which profits are shared in a ratio between investor and trader as agreed. It could also be a situation where the trader or investment manager gives a fixed or varied return on fund invested.

Market forecaster & analyst

With good technical ability to study predict market or price behaviour becomes a hobby which can be turned into earning potentials by selling signals  through subscription service. It could be a daily, weekly, monthly, quarterly, half year or annual subscription

Trainer

Though I advise practical and experienced traders to offer services in this area, rather than demo and part-time traders. If you are not cut out to offer training, it is a hard area as some of your audience might be experienced ones. Training could be online or formal.

Introducing broker

These are like marketing agents or sub-brokers to major brokerage firms. They offer services on behalf of the major brokers to clients. They earn commission from the major brokers and not the clients. I was also once an IB before I moved to another level.

White label partner

This does not come easy. Requirement may be experience in terms of years as an IB, evidence of performance, corporate registration (unlike IB which may be personal) and also a working website. Deposits in thousands of dollars may also be required as deposit. Returns here monthly are very lucrative as well.

Country rep/manager

As foreign investments directly or indirectly are flowing in, opportunities abound to fill these positions though with proven record.

The above shows that forex trading is more than just trading as most people think, but to benefit in these areas mentioned, there is need for knowledge on how the market works. I believe this is a career still much green to be exploited by teeming youths and graduates looking for white collar jobs. Finance and other related career personnel, working, retrenched or retired can also take up this career. The coast is clear.

Market analysis for Friday July 5, 2013

This forecast should be useful as you are reading this column this Friday morning of July 3, 2012 and based on daily analyses if the targets have not been tested.

EUR/AUD (SELL) : Market expected to go short. Exit at 1.3823

AUD/JPY(SELL) : The pair is likely to go short. TP 103.12

EUR/NZD (SELL) : Market expected to go short. TP at 1.6200

GBP/AUD (SELL) : Market expected to go short. TP at 1.6200

GBP/NZD (SELL):  Market expected to go short. TP at 1.9012

Let entry points be at trader’s discretion. This constitutes my view and may or may not be used for trade decisions. Please money management is strictly advised. Happy trading