By Onyebuchim C Obike
10 DIFFERENCES BETWEEN MT4 AND METATRADER 5
1. Installation
MT4: Installation is simple, and straightforward.
METATRADER 5: Installation is not as simple when compared to MT4. The manufacturer's demo trading server (METAQUOTE) is a default in the opening account phase of the installation. An option to add new trading server from METATRADER 5 for a demo account is also included.
2. Charts/Timeframe
MT4: There are nine (9) timeframes. There are limitations to the number of charts that can be opened at the same time.
METATRADER 5: There are 21 timeframes ranging from 1 minute to 1 month, and unlimited number of charts. One hundred charts can be opened at the same time without limitations.
3. Fundamental Analysis (news trading)
MT4: Forex Economic Calendar is not included in the news tab.
METATRADER 5: The platform has an inbuilt Forex economic calendar tab with features like news event, schedule, impact, forecast, earlier events, e.t.c.
4. Commerce/Market
MT4: The market utility tab is not integrated into the platform. You have to visit MQL4.com in order to buy any of its product in their market place.
METATRADER 5: The market utility tab is built inside the platform. You can directly buy Forex products through the market tab.
5. Indicators & Analytical Objects
MT4: There are 30 inbuilt indicators pre-installed on MT4 platform.
METATRADER 5: There are 38 inbuilt indicators pre-installed on METATRADER 5 platform. There are 22 analytical objects, and 46 graphical objects added to the platform.
6. Orders
MT4: It has only two (2) market orders, and four (4) pending orders.
METATRADER 5: More order types are included in the platform. There are two (2) market orders, six (6) pending orders, and two (2) stop orders.
7. Expert Advisor
MT4: The MQL code editor and strategy tester are the main utilities used for expert advisor design. Expert advisors are programmed with MQL programming language, and they are faster to compile. It is not possible to transfer expert advisor codes from MT4 to METATRADER 5. Therefore expert advisors designed in MT4 would not work on METATRADER 5.
METATRADER 5: It comes with more utilities for expert advisor design. The strategy tester utility has been upgraded, and a strategy tester agent manager for remote optimization of expert advisors was also added. Expert advisors are designed with C++, and they are slower to compile due to the dynamics of C++ programming language.
8. Interface
MT4: The interface is easier to navigate when compared to METATRADER 5. The one click trading feature, and the drag and drop functionality is included in build 500 version only.
METATRADER 5: There are slight differences on the platform's interface. A search box has been included on the platform as well as a details tab on the market watch window.
9. Trading (Hedging, FIFO, e.t.c.)
MT4: There are no restrictions on any trading method. However broker regulations is implemented on their proprietary MT4 platforms.
METATRADER 5: It does not support hedging of trades, and it also implements the FIFO policy by default.
10. Brokers
MT4: Most brokers deliver their services on MT4.
METATRADER 5: Fewer brokers deliver their services through METATRADER 5 when compared to brokers who deliver their services on MT4.
It is quite obvious that METATRADER 5 has more features when compared to MT4. But why do most Forex traders use MT4 in trading the Forex despite the improved features in METATRADER 5? Here are the reasons.
1. Expert advisors designed with MQL programming language cannot work on METATRADER 5. They cannot also be transferred to METATRADER 5. The only way out is to rewrite the codes in C++.
2. Hedging, and closing of orders irrespective of their positions is not allowed in METATRADER 5 platform. The platform automatically implements NFA rules
These two reasons are the main discouraging facts of METATRADER 5. This is the reason most Forex traders still prefer to trade the Forex with MT4 rather than trading with METATRADER 5.
Forex Trading has great potentials for success and at the same time high possibilities of loosing funds. Success in Forex requires the best resources and skills, which F provides. Keep in touch with our product updates page where we keep you informed of FREE Offers & New Products.
Monday, September 23, 2013
Saturday, September 21, 2013
Online forex trading: Of drawdown and recovery
by ’Kunle Adeyer
There is always downtime in all
ramifications of life. It is always a crucial period when survival instincts and strategies come alive to those who want to overcome. My
previous articles have been serially written involving education, live
trading and discipline. But there comes a time when one goes overboard
or something goes wrong. This is the acid test of a forex trader.
Every trader must be in this ‘mess’ once
or many times. Drawdown is simply when your equity or trading fund
falls short of the initial value. It is psychologically disturbing. It
literarily is as if one’s business is sinking. It could still be
tolerated if it is just the trader’s account but when it comes to funds
or client’s account being managed; it is not a funny story or smiling
time for traders.
I can guarantee you as a prospective
trader that you will find yourself or your account in this situation, at
least once, as compared to the late Tai Solarin’s ‘May your road be
rough’. It will definitely be in forex to climb to the top. But for
every problem there is a solution. I once wrote in this column about
recovery plans and management. Recovery of drawdown to equity level or
breakeven point and later profitability is the focus of such trader.
The very first thing is the belief that
you can do it. If the courage or confidence is not there, then there is
no way you can deploy the techniques even in the face of a sure trend.
That is the reason why I proposed that one should start live trading
early after training provided good training has been obtained. This
refines you as a trader. I always tell my trainees that the difference
between me and them is that I have somehow overcome fear and that they
will go places if they surmount the market without fear.
In this quagmire, a trader should deploy
the following. First, is profit management. I have used this weapon a
lot of times to get positive results during drawdown.
A trader who lacks this technique may
not have a backup to rely on. Profit management account gives me the
psychological boost that something is in the kitty and I can always
access, if need be.
The second thing is to adhere strictly
to discipline. With discipline you can ride to the top again. Never be
too much in a hurry to recover. Rely on the adage that a damaged/wounded
skin takes time to heal.
Reduce your lot size in comparison to
earlier ones. In addition, if your stop loss is not in place, never find
it difficult to close your orders at losses to have fund to trade. It
is better than you having a margin call or burn out.
Thirdly, let your
technical skills come alive and be bold to go for your ‘sure’ trade
orders. You may also trade economic news to boost your account. Scalping – that is profiting on short
trades – can help but never scalp too much not to incur the wrath of
your broker if your broker discourages much scalping.
Hedging is another method as proposed in my article dated February 15 in this column.
Thursday, September 19, 2013
Best Forex Trading Indicators - 4 Simple Effective Ones For Bigger Profits
By
Samuel Leslie Berkovits
Here we will look at some of the best Forex Trading indicators
and how you can combine them into a simple robust Forex trading strategy
for long term gains.
No single Forex trading indicator works all the time by itself and the way you combine them is essential. Many traders make the mistake of the thinking the more indicators they combine the better - Wrong!
If you do this the system has too many elements to break; you only need a few and your Forex trading system will be simple and robust in the face of ever changing prices.
Right lets build our Forex trading system and look at some of the best Forex trading indicators to help you build a trend following Forex trading system. First Identify the Trend.
This is obvious by looking at a bar chart but you also want to use moving averages as well. Simple moving averages are great in terms of smoothing out the fluctuations and two great periods to use are first, the 40 day MA to identify the long term trend. Secondly, use the 20 day MA to buy and sell back to in a strong trend and you will find this moving average is excellent for getting in on a trend in motion, with optimium risk / reward. Spotting the Set Ups
We don't have time to cover this in detail here but there are a couple of points that are the key to maximizing profits. Firstly, be patient and only trade high odds set ups and secondly, make sure you trade breaks to new highs and lows all the big trends start and continue from them so you need to trade them.
Bollinger Bands - Check Volatility and Standard Deviation
Ask most traders what standard deviation of price is and you will probably get a blank look but an understanding of standard deviation of price and volatility is something that all forex traders need to know about and if you don't, make part of your forex education and learn about Bollinger Bands.
Bollinger Bands are not used to for market timing - but give you an all round view of volatility price and when you understand this concept, Bollinger Bands can help you in 3 ways:
They can alert you to potential big moves, help set targets and spot market value and entry levels.
Best Forex Trading Indicators for Confirming
When you spot a potential opportunity, you need to confirm the move and make sure price momentum is going the way you wish to trade. There are plenty of momentum indicators but for the last 25 Years I have found the following two the best. There easy to learn and apply, lets take a quick look at them.
The Relative Strength Index (RSI)
A great leading indicator to time your trading signals with. If the RSI supports your view of the market you can use it in strong trends - or when it diverges from the prevailing trend ( from over bought or over sold) to enter trades against the prevailing trend.
The Stochastic Indicator
The best Forex trading indicator of all for better market timing and when combined with the RSI you have a dynamite combination. The stochastic is a simple indicator but is the ultimate timing tool for timing trading signals in my view. If you use stochastic crossovers to confirm your move, you will get the odds on your side.
It's also very effective for timing contrary positions. A stochastic cross, from over bought or oversold levels, against the trend is a highly effective way of getting in on the big contrary trades.
Simple and Effective
There are other great indicators around such as the ADX indicator, MACD and many others but as a blend the above 4 indicators with a bar chart are my best forex trading indicators for profit and they have served me well over the last 25 years.
The indicators are easy to learn, apply and if blended correctly, can add a new dimension to your forex trading strategy.
No single Forex trading indicator works all the time by itself and the way you combine them is essential. Many traders make the mistake of the thinking the more indicators they combine the better - Wrong!
If you do this the system has too many elements to break; you only need a few and your Forex trading system will be simple and robust in the face of ever changing prices.
Right lets build our Forex trading system and look at some of the best Forex trading indicators to help you build a trend following Forex trading system. First Identify the Trend.
This is obvious by looking at a bar chart but you also want to use moving averages as well. Simple moving averages are great in terms of smoothing out the fluctuations and two great periods to use are first, the 40 day MA to identify the long term trend. Secondly, use the 20 day MA to buy and sell back to in a strong trend and you will find this moving average is excellent for getting in on a trend in motion, with optimium risk / reward. Spotting the Set Ups
We don't have time to cover this in detail here but there are a couple of points that are the key to maximizing profits. Firstly, be patient and only trade high odds set ups and secondly, make sure you trade breaks to new highs and lows all the big trends start and continue from them so you need to trade them.
Bollinger Bands - Check Volatility and Standard Deviation
Ask most traders what standard deviation of price is and you will probably get a blank look but an understanding of standard deviation of price and volatility is something that all forex traders need to know about and if you don't, make part of your forex education and learn about Bollinger Bands.
Bollinger Bands are not used to for market timing - but give you an all round view of volatility price and when you understand this concept, Bollinger Bands can help you in 3 ways:
They can alert you to potential big moves, help set targets and spot market value and entry levels.
Best Forex Trading Indicators for Confirming
When you spot a potential opportunity, you need to confirm the move and make sure price momentum is going the way you wish to trade. There are plenty of momentum indicators but for the last 25 Years I have found the following two the best. There easy to learn and apply, lets take a quick look at them.
The Relative Strength Index (RSI)
A great leading indicator to time your trading signals with. If the RSI supports your view of the market you can use it in strong trends - or when it diverges from the prevailing trend ( from over bought or over sold) to enter trades against the prevailing trend.
The Stochastic Indicator
The best Forex trading indicator of all for better market timing and when combined with the RSI you have a dynamite combination. The stochastic is a simple indicator but is the ultimate timing tool for timing trading signals in my view. If you use stochastic crossovers to confirm your move, you will get the odds on your side.
It's also very effective for timing contrary positions. A stochastic cross, from over bought or oversold levels, against the trend is a highly effective way of getting in on the big contrary trades.
Simple and Effective
There are other great indicators around such as the ADX indicator, MACD and many others but as a blend the above 4 indicators with a bar chart are my best forex trading indicators for profit and they have served me well over the last 25 years.
The indicators are easy to learn, apply and if blended correctly, can add a new dimension to your forex trading strategy.
Proper Forex Risk Management
By
Amanda L Stucky
For those involve in foreign exchange, it is important that you
know proper Forex risk management so you can sustain the pressure and
for you to succeed in the long run. When you know what the risk
involved, you will also be able to find ways on how to lower these
risks.
Everyday there are numerous companies and sole traders who exchange currencies on the Forex or foreign exchange. If you are involve in the buying and selling of foreign currencies then you are already participating in spot market. Buying and selling simply means exchanging your currency for another.
To manage the Forex risk, you should know how to use responsibly factors such as leverage, stop loss, lot size and risk reward ratio.
Leverage enables you to use small amount o money to control larger ones. Although this can bring increase your wins, it can also accumulate your losses. So if you're new with Forex exchange, it is best if you work with lower leverage first.
As with stop loss, it serves as your insurance when you are trading. A stop loss can prevent too much loss when exchanging rates.
The risk reward ratio would help you determine whether it is good to trade or if it's better to wait until the next trade. When you know how to work with reward risk ratio, you will still get profits even if there are only 50% chances that you win with the trade.
If you are new to Forex trade there are still things that you should get to know first. You should understand what the difference is with spot market vs. future Forex trading. Although there are risk involve with Forex management, there are several strategies you can use in order to lessen the danger involve. The more you know about these strategies, the more advantageous it is for you.
Everyday there are numerous companies and sole traders who exchange currencies on the Forex or foreign exchange. If you are involve in the buying and selling of foreign currencies then you are already participating in spot market. Buying and selling simply means exchanging your currency for another.
To manage the Forex risk, you should know how to use responsibly factors such as leverage, stop loss, lot size and risk reward ratio.
Leverage enables you to use small amount o money to control larger ones. Although this can bring increase your wins, it can also accumulate your losses. So if you're new with Forex exchange, it is best if you work with lower leverage first.
As with stop loss, it serves as your insurance when you are trading. A stop loss can prevent too much loss when exchanging rates.
The risk reward ratio would help you determine whether it is good to trade or if it's better to wait until the next trade. When you know how to work with reward risk ratio, you will still get profits even if there are only 50% chances that you win with the trade.
If you are new to Forex trade there are still things that you should get to know first. You should understand what the difference is with spot market vs. future Forex trading. Although there are risk involve with Forex management, there are several strategies you can use in order to lessen the danger involve. The more you know about these strategies, the more advantageous it is for you.
Forex pathfinder Thursday, September 19 Tradable News.
UK Retail Sales - 9:30am Paris time (Thursday, September 19)
--–––––————————————————————–––––--
| Traded pair | Expected figure | Deviation trigger | ||
| GBPUSD | 0.4 (%) | ±0.4 (%) |
| Buy | GBPUSD | if actual figure is or is above | 0.8 (%) | ||
| Sell | GBPUSD | if actual figure is or is below | 0.0 (%) |
Expected move during first 20 minutes after the release is 20 pips or more.
Review historical charts where the same deviation of at least 0.4 (%) occurred:
UK Retail Sales history of charts.
Once there, set filter to Difference Actual-Forecast >= 0.4 and click "Filter" to see list of charts.
UK Retail Sales - 9:30am Paris time (Thursday, September 19)
--–––––————————————————————–––––--
Review historical charts where the same deviation of at least 0.4 (%) occurred:
UK Retail Sales history of charts.
Once there, set filter to Difference Actual-Forecast >= 0.4 and click "Filter" to see list of charts.
UK Retail Sales - 9:30am Paris time (Thursday, September 19)
--–––––————————————————————–––––--
| Traded currency pair | : | GBPUSD | ||
| Initial spike duration limit | : | 15 seconds | ||
| Initial spike price action threshold | : | 12 pips | ||
| Triggering retracement percentage | : | 35 % | ||
| Retracement duration limit | : | 40 seconds | ||
| Maximum trade hold time after release | : | 10 minutes | ||
| Stop loss | : | 10 pips | ||
| Take profit | : | 10 pips | ||
| Maximum spread | : | 2 pips |
USA Existing Home Sales - 3:00pm Paris time (Thursday, September 19)
--–––––————————————————————–––––--
--–––––————————————————————–––––--
| Traded pair | Expected figure | Deviation trigger | ||
| USDJPY | 5.25 (M) | ±0.40 (M) |
| Buy | USDJPY | if actual figure is or is above | 5.65 (M) | ||
| Sell | USDJPY | if actual figure is or is below | 4.85 (M) |
Expected move during first 30 minutes after the release is 30 pips or more.
Review historical charts where the same deviation of at least 0.40 (M) occurred:
USA Existing Home Sales history of charts.
Once there, set filter to Difference Actual-Forecast >= 0.40 and click "Filter" to see list of charts.
USA Existing Home Sales - 3:00pm Paris time (Thursday, September 19)
--–––––————————————————————–––––--
Review historical charts where the same deviation of at least 0.40 (M) occurred:
USA Existing Home Sales history of charts.
Once there, set filter to Difference Actual-Forecast >= 0.40 and click "Filter" to see list of charts.
USA Existing Home Sales - 3:00pm Paris time (Thursday, September 19)
--–––––————————————————————–––––--
| Traded currency pair | : | USDJPY | ||
| Initial spike duration limit | : | 30 seconds | ||
| Initial spike price action threshold | : | 12 pips | ||
| Triggering retracement percentage | : | 40 % | ||
| Retracement duration limit | : | 80 seconds | ||
| Maximum trade hold time after release | : | 15 minutes | ||
| Stop loss | : | 10 pips | ||
| Take profit | : | 10 pips | ||
| Maximum spread | : | 2 pips |
Friday, September 13, 2013
Forex Risk Management Precautions
By
Tony Scalf
The foreign currency exchange industry is one of the most
unpredictable, liquid and volatile business industries ever operating
worldwide. It accommodates to approximately 1.5 trillion U.S. dollars
worth of transactions and it becomes a chance for banks, large
corporations, business companies of all size and even individual
investors to gain profit through forex.
The forex risk of losing or gaining profit in the market is as inevitable as the rising and setting of the sun daily. There is no way that a trader can fully and perfectly go about his trading business without undertaking risks of any sort. Because of this very sensitive and crucial topic in the forex trading industry, all traders must at least exercise some form of forex risk management in order to avoid unnecessary and devastating losses that can kick you out of the game completely.
There are a few things an investor must remember before he or she makes any trading decisions. One among which is cash flows, liabilities and assets are directly affected by any change in the exchange rates that may occur and of course since the exchange rates can change in a snap of a finger, international transactions especially dealing with finances will consequently greatly affect businessmen, traders and investors.
It is important that a trader must perform forex risk management measures especially on economic exposure, translation exposure, accounting and real operating exposure.
Because of the unpredictable changes in exchange rates, the transactional exposures are one among those that contribute highest risks to forex because cash flows, import and export services, lending and borrowing of foreign currency can greatly affect the exchange rates of involved currency pairs. A wise investor must therefore remember to incorporate this in his forex risk management strategy.
There are two general types of risk when dealing with forex risk management and these are: systematic and unsystematic risk. Systematic risk is the risk affecting business aspects such as inflation risk, interest rate risk and market risk. On the other hand unsystematic risks are more specific to the individual events happening to a particular transaction such as business risk and financial risk.
For all the traders out there it is always a good habit to have a trading strategy and you must see to it that both your online broker and your trading platform have forex risk management procedures incorporated into the system. There are many advanced software that contain reliable risk analysis features.
The forex risk of losing or gaining profit in the market is as inevitable as the rising and setting of the sun daily. There is no way that a trader can fully and perfectly go about his trading business without undertaking risks of any sort. Because of this very sensitive and crucial topic in the forex trading industry, all traders must at least exercise some form of forex risk management in order to avoid unnecessary and devastating losses that can kick you out of the game completely.
There are a few things an investor must remember before he or she makes any trading decisions. One among which is cash flows, liabilities and assets are directly affected by any change in the exchange rates that may occur and of course since the exchange rates can change in a snap of a finger, international transactions especially dealing with finances will consequently greatly affect businessmen, traders and investors.
It is important that a trader must perform forex risk management measures especially on economic exposure, translation exposure, accounting and real operating exposure.
Because of the unpredictable changes in exchange rates, the transactional exposures are one among those that contribute highest risks to forex because cash flows, import and export services, lending and borrowing of foreign currency can greatly affect the exchange rates of involved currency pairs. A wise investor must therefore remember to incorporate this in his forex risk management strategy.
There are two general types of risk when dealing with forex risk management and these are: systematic and unsystematic risk. Systematic risk is the risk affecting business aspects such as inflation risk, interest rate risk and market risk. On the other hand unsystematic risks are more specific to the individual events happening to a particular transaction such as business risk and financial risk.
For all the traders out there it is always a good habit to have a trading strategy and you must see to it that both your online broker and your trading platform have forex risk management procedures incorporated into the system. There are many advanced software that contain reliable risk analysis features.
Please check my website Forex Risk Management [http://forexriskmanagement.net/] if you looking for forex risk management tips.
Planning and Discipline in Forex Trading
by ’Kunle Adeyeri
The last two articles on education and
live trading are a build-up to this one. Education as the bed rock, live
account trading as the launch pad and closing on these two to cap it
all is planning and discipline in forex trading.
Planning (also called forethought) is
the process of-thinking about and organizing the activities required to
achieve a desired goal. Planning involves the creation and maintenance of a plan. As such, planning is a fundamental property of intelligent behavior.
This thought process is essential to the
creation and refinement of a plan, or integration of it with other
plans; that is, it combines forecasting of developments with the
preparation of scenarios of how to react to them.
An important, albeit often ignored aspect of planning, is the relationship it holds with forecasting.
Forecasting can be described as
predicting what the future will look like, whereas planning predicts
what the future should look like. The counterpart to planning is
spontaneous order. – Wikipedia
Wikipedia also explains that the phrase
“to discipline” carries a negative connotation. This is because
enforcement of order – that is, ensuring instructions are carried out–is
often regulated through punishment. Discipline is a course of actions
leading to a greater goal than the satisfaction of the immediate. A
disciplined person is one that has established a goal and is willing to
achieve that goal at the expense of his or her immediate comfort.
Discipline is the assertion of willpower
over more base desires, and is usually understood to be synonymous with
self-control. Self-discipline is to some extent a substitute for
motivation, when one uses reason to determine the best course of action
that opposes one’s desires. Virtuous behaviour is when one’s motivations
are aligned with one’s reasoned aims: to do what one knows is best and
to do it gladly’.
The bane of colossal loss in forex
trading has to do with lack of proper planning and much more discipline.
A forex trader is expected to have a trade plan before execution.
This has to do with determining entry
point, size or volume of his trade, entry and exit points, stop loss,
trailing profit etc. All these come under planning to achieve a set
goal.
Discipline now will focus on executing
the plans to the letter. Discipline involves sticking to your trade plan
which is backed up by what you have put in the risk management. No matter how your plan is, executing it to the letter is another thing. Supposing you have a trade plan and
strategy to roll in an order, discipline will come in if you have the
willpower to do so. It will also test if you can stick to your targets in
case when price moves in counter direction.
A to-be successful trader must be
disciplined. It is a virtue and can be cultivated as well. A disciplined
trader will not be too happy because he has winning traders nor be
emotionally down if he loses if all were to fall within his keeping to
his plans. A disciplined trader will not add more to winning or losing
trades. Plan well and be disciplined. Happy trading.
Wednesday, September 11, 2013
Types of Forex Brokers You Need to Know About
By Dragan Lukic
There are various types of Forex brokers available for you to choose from when you start Forex trading so it can be difficult to pick out the best one, especially if you are a beginner. They range from illegal trading floors to international award-winning Forex brokers that have direct access to the market.
You may be one of the lucky ones that has been told which broker to use through your schooling or you may be a beginner that simply doesn't know where to even start searching. Whatever your situation, the list below will simplify and direct you towards various types of Forex brokers that are available to you:
Retail Forex brokers (market makers) - these are used the most, especially with new traders. Accounts can be easily created online and deposits as small as $100 can be made in order to start trading. The functionalities available are great and the process of trading is quite simple. Be advised to shop around and find out what each broker offers. This could be factors such as live support or instant buy/sell into the market; some could have a small delay depending on their market access which can be quite frustrating.
Institutional Forex brokers (market makers) - The sales angle these types of brokers use is their even more direct access to the market. Unfortunately, because of this feature they require large amounts of capital in order to start trading. Similarly to the above they are also perfect for beginners but because of the large capital requirement, they are usually side-lined until people acquire larger amounts of cash.
Institutional Forex brokers (non-market makers) - unless you are working in a bank you will not have access to these brokers. Large number if international banks trade in this manner where the access is direct to the interbank market.
Spread betters -these are currently only legal in a few countries - this does not include USA. The way in which they make money is different to the traditional manner. Instead of making money on their winnings, they make their money on the spread between two currencies. They usually also include the ability to trade other products like stocks, indices or commodities. As the trade you are putting is a bet in this instance your winnings are not taxable; if you have another form of employment.
The above list and explanations should give you a good idea about the different type of Forex brokers available for your perusal. Just remember to do your research and speak to a few brokers first; before you make a decision on which one to go with. You should probably review your account every year to see if better offers are available elsewhere to make your Forex trading cheaper.
http://EzineArticles.com
Monday, September 9, 2013
15 Most Common Forex Trading Mistakes
By
Danielle Franklin
Starting forex trading career is an exciting journey. The
mind-blowing financial challenges, economic riddles, potential sky
rocking profits and psychological effects - all assembled together in
one profession. As a new forex trader you need to recognize the
universal mistakes which can easily turn your forex trading adventure
into unnecessary, costly ride. What are the common mistakes traders make
and how can you avoid making them?
Here is the summary of slip-ups every trader should avoid:
1. Risking Too Much
There is no way of getting rich quick in forex trading. You have to be consistent and disciplined, and by no means try to compare forex to gambling. Every dollar you invest in forex must be a dollar you can afford to lose, a dollar which will not leave you butt naked on a street. Every successful forex trader protects ones capital, and therefore instead of risking too much and praying for it to turn into a goldmine, it is more important to focus on good entry techniques and understanding of trend.
2. Over trading
Most new traders think that in order to make huge profits you have to trade all the time. It is important to realize that forex market is volatile and changes direction all day long. You cannot expect profitable trades from every price movement. It is so easy to get addicted to winnings which can lead to sloppy trading. Depending on your trading style, the opportunity to profit strikes a few times a day and it is your job to figure out when it happens. After each win, give yourself a time out to ensure that you make right decisions based on your trading plan and not on the luring crave to win again! As soon as you learn to ignore all market swings, control your emotions and focus on profitable movements, you will become consistently profitable trader.
3. Errors in Order Entry
There is a time in every forex trader's life when the wrong order entry is made. Whether the clumsy fingers or lack or alertness are to blame, awkward errors happen to all of us. To save yourself a lot of stress, avoid heart attack and evade losing money, take two extra seconds to check that everything is correct before you click!
4. Not Having Your Own Trading Plan
I believe that every trader is unique and requires different set of approaches when it comes to forex trading. Just because other traders succeed in scalping, for example, it doesn't necessary mean that it is suitable for you. It is your responsibility to figure out what kind of trader you are. Are you a quick thinker or rather analytical? Are you aggressive or rather patient? Can you devote enough time to forex or you plan to trade part-time? What is your investment capital? Do you have a full grasp of fundamental analysis? What are your psychological weaknesses? The sooner you figure out who you are, the faster your trading plan will materialize and the better forex trader you will be.
5. Losing is The End of the World!
There is no such thing as forex trading system that works 100% at a time. You can become crazy rich by being right only about 10% of a time. Kick the perfectionist out of your mind and open mind to a larger picture. The most important thing in forex trading is win/loss ratio. It doesn't matter how many times you win or loose; what really matters is how much money you gain when you win and how much money you loose when you lose! Concentrate on monthly profits, and not on every single trade.
6. Ignoring Money Management
Money management is very important in forex trading. The purpose of money management is to protect you from risking too much and therefore grow your profits in a stable, consistent manner. Without a proper money management technique, you can empty your trading account within 5-10 clumsy trades.
7. Ignoring Psychological Issues
Psychology is a big part of forex trading. You have to train yourself to control your emotions, deal with losses and understand that success does not depend on every trade. Many traders keep a journal and write down not only the trading outcome, but their feelings and emotions during the trading hours. This can significantly help to analyze yourself and avoid, for example, over-trading, revenge trading, greed trading, ego trading etc.
8. Constructing Complicated Indicators
Simplicity is the best way in forex trading. You don't have to keep adding indicators or come up with extraordinary trading plan. Many indicators only add chaos and unnecessary information. Try not to overdo it; the basic idea behind indicators is to give hints to direction of a trend, support/resistance levels and buying/selling pressure.
9. Trading News
Unfortunately, in most cases even the most straightforward news releases are used as a tool to affect the investment psychology of the crowd. This is, in a way, a manipulation used by governments and traders. Analyzing only the news can be quite problematic, since often a forex market that seems extremely bullish can actually be an undercover bear! It is close to impossible to predict how the market will react to the news. I personally have seen markets going down more than 100 pips in one second and rising 100 pips back up within couple of more seconds. That's like playing a Russian roulette!
10. Using Too Much Leverage
The beauty of forex trading is the ability to use leverage or margin, however too much leverage can be extremely harmful. Having a small trading account and making big trades using leverage can turn into a complete disaster whenever the market moves against your positions by just a tiny swing.
11. Demo Trading The Amount You Don't Have
Most forex brokers offer demo account for practice. My personal advice is to trade demo account with the amount of money you actually plan to invest. Usually practice account comes with hundreds thousands of dollars, so in order to actually learn how to trade and understand the forex market reality, it is important to demo trade the amount of your actual capital. It doesn't make much sense to practice trading with thousands while you plan to invest $500.
12. Switching Strategies Like Pair of Gloves
You shouldn't jump from one strategy to another the moment you experience couple of losses. Your forex strategy should not be discarded the moment things get rocky. Every strategy need time to be optimized. Changing strategy from one to another will not turn you into successful trader. Give it time, consider losses as a down payment for the future wins.
13. Seeking Shortcuts to Learning about Forex
There is no shortcut - you have to learn. Most successful forex traders know exactly what is happening in forex market. You have to read, learn, practice and analyze all the time in order to be up to date and make profits. Forex trading is a lifelong learning career. Since forex market is complex and very flexible, a lot of learning is needed in order to adobt to new changes and become a skilled trader.
14. Ignoring Stop Loss
Ignoring stop loss is a no-no! You need to have a clear entry/exit plan. Decide now many pips you want to make, what is your loss limit, what are the reasons for entering a trade in the first place. Sometimes you have a feeling that if you want a little more your luck will turn around. No, this is a very bad idea. Stick to your plan and always set stop/loss targets. There is no such thing as a "trade of a life time". If you miss one, there Is always a set of new trades right around the corner!
15. Deciding on Forex Broker Too Quickly
Choosing the right broker takes time - so get ready for a long ride. There are hundreds online forex brokers today and all of them are attractive in one way or another. It is important to figure out which broker is most suitable for you. A broker good for one trader might not be the best choice for the other. There are many factors to consider, including:
¨ Trading Platform (download, online, metatrader 4, user-friendly, graphical etc.)
¨ Regulation (regulated brokers are usually more reliable)
¨ Features (news, daily analysis, mobile trading, free seminars, bonuses etc)
¨ Technical and Customer Support (it is important to have all the contact information for the broker including phone number, online support and email address. I also suggest testing all of the contact methods before making a deposit with the broker - Do forex broker representatives answer the phones? How fast does the broker respond to emails? Is online support proficient and professional?)
¨ Terms and Conditions (always go over terms and conditions you agree to with a forex broker. You might find nasty hidden costs involved or certain unprofitable trading conditions)
¨ Spreads or fixed price (the lower the better, of course!)
¨ Free Practice Account for practice and get to know the trading platform
¨ Minimum Deposit Requirements (How much are you planning to invest?)
¨ (Payment Methods (how are you planning to deposit/withdraw? Wiretransfer? Credit Card? Paypal? Moneybookers?
Here is the summary of slip-ups every trader should avoid:
1. Risking Too Much
There is no way of getting rich quick in forex trading. You have to be consistent and disciplined, and by no means try to compare forex to gambling. Every dollar you invest in forex must be a dollar you can afford to lose, a dollar which will not leave you butt naked on a street. Every successful forex trader protects ones capital, and therefore instead of risking too much and praying for it to turn into a goldmine, it is more important to focus on good entry techniques and understanding of trend.
2. Over trading
Most new traders think that in order to make huge profits you have to trade all the time. It is important to realize that forex market is volatile and changes direction all day long. You cannot expect profitable trades from every price movement. It is so easy to get addicted to winnings which can lead to sloppy trading. Depending on your trading style, the opportunity to profit strikes a few times a day and it is your job to figure out when it happens. After each win, give yourself a time out to ensure that you make right decisions based on your trading plan and not on the luring crave to win again! As soon as you learn to ignore all market swings, control your emotions and focus on profitable movements, you will become consistently profitable trader.
3. Errors in Order Entry
There is a time in every forex trader's life when the wrong order entry is made. Whether the clumsy fingers or lack or alertness are to blame, awkward errors happen to all of us. To save yourself a lot of stress, avoid heart attack and evade losing money, take two extra seconds to check that everything is correct before you click!
4. Not Having Your Own Trading Plan
I believe that every trader is unique and requires different set of approaches when it comes to forex trading. Just because other traders succeed in scalping, for example, it doesn't necessary mean that it is suitable for you. It is your responsibility to figure out what kind of trader you are. Are you a quick thinker or rather analytical? Are you aggressive or rather patient? Can you devote enough time to forex or you plan to trade part-time? What is your investment capital? Do you have a full grasp of fundamental analysis? What are your psychological weaknesses? The sooner you figure out who you are, the faster your trading plan will materialize and the better forex trader you will be.
5. Losing is The End of the World!
There is no such thing as forex trading system that works 100% at a time. You can become crazy rich by being right only about 10% of a time. Kick the perfectionist out of your mind and open mind to a larger picture. The most important thing in forex trading is win/loss ratio. It doesn't matter how many times you win or loose; what really matters is how much money you gain when you win and how much money you loose when you lose! Concentrate on monthly profits, and not on every single trade.
6. Ignoring Money Management
Money management is very important in forex trading. The purpose of money management is to protect you from risking too much and therefore grow your profits in a stable, consistent manner. Without a proper money management technique, you can empty your trading account within 5-10 clumsy trades.
7. Ignoring Psychological Issues
Psychology is a big part of forex trading. You have to train yourself to control your emotions, deal with losses and understand that success does not depend on every trade. Many traders keep a journal and write down not only the trading outcome, but their feelings and emotions during the trading hours. This can significantly help to analyze yourself and avoid, for example, over-trading, revenge trading, greed trading, ego trading etc.
8. Constructing Complicated Indicators
Simplicity is the best way in forex trading. You don't have to keep adding indicators or come up with extraordinary trading plan. Many indicators only add chaos and unnecessary information. Try not to overdo it; the basic idea behind indicators is to give hints to direction of a trend, support/resistance levels and buying/selling pressure.
9. Trading News
Unfortunately, in most cases even the most straightforward news releases are used as a tool to affect the investment psychology of the crowd. This is, in a way, a manipulation used by governments and traders. Analyzing only the news can be quite problematic, since often a forex market that seems extremely bullish can actually be an undercover bear! It is close to impossible to predict how the market will react to the news. I personally have seen markets going down more than 100 pips in one second and rising 100 pips back up within couple of more seconds. That's like playing a Russian roulette!
10. Using Too Much Leverage
The beauty of forex trading is the ability to use leverage or margin, however too much leverage can be extremely harmful. Having a small trading account and making big trades using leverage can turn into a complete disaster whenever the market moves against your positions by just a tiny swing.
11. Demo Trading The Amount You Don't Have
Most forex brokers offer demo account for practice. My personal advice is to trade demo account with the amount of money you actually plan to invest. Usually practice account comes with hundreds thousands of dollars, so in order to actually learn how to trade and understand the forex market reality, it is important to demo trade the amount of your actual capital. It doesn't make much sense to practice trading with thousands while you plan to invest $500.
12. Switching Strategies Like Pair of Gloves
You shouldn't jump from one strategy to another the moment you experience couple of losses. Your forex strategy should not be discarded the moment things get rocky. Every strategy need time to be optimized. Changing strategy from one to another will not turn you into successful trader. Give it time, consider losses as a down payment for the future wins.
13. Seeking Shortcuts to Learning about Forex
There is no shortcut - you have to learn. Most successful forex traders know exactly what is happening in forex market. You have to read, learn, practice and analyze all the time in order to be up to date and make profits. Forex trading is a lifelong learning career. Since forex market is complex and very flexible, a lot of learning is needed in order to adobt to new changes and become a skilled trader.
14. Ignoring Stop Loss
Ignoring stop loss is a no-no! You need to have a clear entry/exit plan. Decide now many pips you want to make, what is your loss limit, what are the reasons for entering a trade in the first place. Sometimes you have a feeling that if you want a little more your luck will turn around. No, this is a very bad idea. Stick to your plan and always set stop/loss targets. There is no such thing as a "trade of a life time". If you miss one, there Is always a set of new trades right around the corner!
15. Deciding on Forex Broker Too Quickly
Choosing the right broker takes time - so get ready for a long ride. There are hundreds online forex brokers today and all of them are attractive in one way or another. It is important to figure out which broker is most suitable for you. A broker good for one trader might not be the best choice for the other. There are many factors to consider, including:
¨ Trading Platform (download, online, metatrader 4, user-friendly, graphical etc.)
¨ Regulation (regulated brokers are usually more reliable)
¨ Features (news, daily analysis, mobile trading, free seminars, bonuses etc)
¨ Technical and Customer Support (it is important to have all the contact information for the broker including phone number, online support and email address. I also suggest testing all of the contact methods before making a deposit with the broker - Do forex broker representatives answer the phones? How fast does the broker respond to emails? Is online support proficient and professional?)
¨ Terms and Conditions (always go over terms and conditions you agree to with a forex broker. You might find nasty hidden costs involved or certain unprofitable trading conditions)
¨ Spreads or fixed price (the lower the better, of course!)
¨ Free Practice Account for practice and get to know the trading platform
¨ Minimum Deposit Requirements (How much are you planning to invest?)
¨ (Payment Methods (how are you planning to deposit/withdraw? Wiretransfer? Credit Card? Paypal? Moneybookers?
Saturday, September 7, 2013
Forex Trading Indicators - The Keys to Finding Forex Success
By
Steve Crown
The Forex Market or Foreign Exchange market is where a
professional trader purchases and sells currencies. The best way to
initiate trades is to become fully familiar with the Forex trading
indicators: In fact it is necessary that you do so. By understanding the
Forex indicators you are in a position to properly evaluate information
and affect successful trades. The various types of Forex indicators are
discussed below.
1. Trend indicators will show three movements with respect to (the market) price including up, down and to the side. The trend indicators are helpful in implementing your Forex trading strategy. The trend indicators show you what to expect with regard to price consistency and inconsistencies over specific (time) periods.
2. Volume indicators are relative in that they are useful in supplying information as to the interest level of investors in the Forex market. If the investor volume is high then it is more than likely indicative of a new trend. A low level of interest may suggest investor uncertainty or also that investors are simply not interested in a particular currency market. Conceptually in order to fully appreciate volume indicators you will need to become knowledgeable in what the (supplied) data means. Additionally, you will need to know the best way to respond to the information provided. Quick increases or decreases in volume may suggest reversals. A decrease in volume that is continual yet consistent may be supported by movement that is fast-paced within the market.
3. The third type of indicator is the momentum indicator. The momentum indicator tracks the rates within the currency exchange during particular time periods. It also charts simultaneously the weakness or strength of a trend's movement. The greatest momentum is found at the start of a trend. The lowest level of momentum is naturally at the end of a trend.
In order to use the Forex indicators successfully you will need to establish incompatibility with the Forex rate(s) and the data provided by Forex indicators. Movements with respect to indicators and rates suggest the following information:
1. Changes in trend may be expected when the momentum indicator is strong and the rate of exchange is moving sideways.
2. A weak momentum indicator is a sign that the currency exchange rate is about to increase.
3. Diversity in direction between the momentum indicator and rate is illustrative of the fact the current trend is starting to weaken.
4. Another important Forex indicator is the volatility indicator. The volatility indicator provides the trader with information as to the relative proportion of a price or rate increase or decrease. As a trader you will find sometimes the Forex market is highly volatile and other times it is less risky.
The indicators make it possible for the Forex trader to achieve profits when conducting trading activity within the Forex market. If the Forex market is at a low level of volatility you may surmise that there is little investor interest. In this light you may anticipate an enormous movement within the market. This is your sign that it may be the time to reap substantial profits with respect to your trading activities.
You will need to select indicators that provide you with the necessary data essential to your success as a Forex trader. You do not want to use too many indicators that are similar. What you want is an indicator that provides information and an indicator that subsequently verifies the information (previously) supplied by the initial indicator.
1. Trend indicators will show three movements with respect to (the market) price including up, down and to the side. The trend indicators are helpful in implementing your Forex trading strategy. The trend indicators show you what to expect with regard to price consistency and inconsistencies over specific (time) periods.
2. Volume indicators are relative in that they are useful in supplying information as to the interest level of investors in the Forex market. If the investor volume is high then it is more than likely indicative of a new trend. A low level of interest may suggest investor uncertainty or also that investors are simply not interested in a particular currency market. Conceptually in order to fully appreciate volume indicators you will need to become knowledgeable in what the (supplied) data means. Additionally, you will need to know the best way to respond to the information provided. Quick increases or decreases in volume may suggest reversals. A decrease in volume that is continual yet consistent may be supported by movement that is fast-paced within the market.
3. The third type of indicator is the momentum indicator. The momentum indicator tracks the rates within the currency exchange during particular time periods. It also charts simultaneously the weakness or strength of a trend's movement. The greatest momentum is found at the start of a trend. The lowest level of momentum is naturally at the end of a trend.
In order to use the Forex indicators successfully you will need to establish incompatibility with the Forex rate(s) and the data provided by Forex indicators. Movements with respect to indicators and rates suggest the following information:
1. Changes in trend may be expected when the momentum indicator is strong and the rate of exchange is moving sideways.
2. A weak momentum indicator is a sign that the currency exchange rate is about to increase.
3. Diversity in direction between the momentum indicator and rate is illustrative of the fact the current trend is starting to weaken.
4. Another important Forex indicator is the volatility indicator. The volatility indicator provides the trader with information as to the relative proportion of a price or rate increase or decrease. As a trader you will find sometimes the Forex market is highly volatile and other times it is less risky.
The indicators make it possible for the Forex trader to achieve profits when conducting trading activity within the Forex market. If the Forex market is at a low level of volatility you may surmise that there is little investor interest. In this light you may anticipate an enormous movement within the market. This is your sign that it may be the time to reap substantial profits with respect to your trading activities.
You will need to select indicators that provide you with the necessary data essential to your success as a Forex trader. You do not want to use too many indicators that are similar. What you want is an indicator that provides information and an indicator that subsequently verifies the information (previously) supplied by the initial indicator.
Safeguarding Your Investments With Forex Risk Management
By
Delores Lee
Let's all admit the fact that Forex market is the place not only for success and profits but also for losses and high risks. Perhaps, the reward and financial gains you acquire here is just similar or with very little difference to the risks you take. Because of the market's volatility, there is no stability on its direction, not to mention that the price of currencies and stocks often fluctuates. As a result, traders are prone to drawbacks and losses if they won't implement proper Forex risk management.
This kind of business requires hard work and higher competency in order not to encounter troubles in the future. Traders really need to commit an enough time to study and master the major processes in trading. They also need to be familiar with all the factors that significantly affect the market's flow that may influence trading transactions. Part of their responsibility is also to be aware of the risk they are taking, they're future outcome if not taken into account, and on how to manage or lessen its intensity. That's why a Forex risk management was developed in order to:
• Avoid surplus stocks. One of the ways to avoid financial troubles is to limit your stock orders. Purchase only an average quantity needed for trading. This way, you could avoid extra expenditure and debt.
• Conquer your emotions. In the trading business, it is ideal to not let your emotions overrule in the process. It would only add up to your worries and burden.
• Do not invest your money in just one trading transaction. Higher risks are taken if you will just concentrate and put all your investments in one trade. Chances are, if unfortunate events will happen, you'll just going to lose all your money leaving you with no resources to pull you up.
Forex risk management is essential in every trading. It does not only lessen the risks you are taking, but also gives you the confidence to overcome hardships and difficulties the Forex market may give you. Remember, the key to success is hard work and competence. This two work hand in hand for the achievement of goals.
Forex trading is one of engines that run the world economy. It is
the place where people earn higher profits, create their names and gain
stability in the trading business. It is a one big platform of
opportunities and great benefits which would likely be an open door for
success. The chance to get financial success significantly depends on
how you execute Forex risk management. However, there are a lot of
business owners who are afraid to try foreign exchange trading. This is
due to the fact that they are blind by the thought that investing in a
currency is a scam or by other fraudulent schemes made to rip them off.
But this is just a false belief. They just don't know how helpful their
investments would be in the world market.
What happens on a Financial Market?
People buy and sell different stocks and currencies taking the advantage of their daily fluctuations. Here competencies and different innovations never run out of style. The Forex market is a highly sophisticated type of financial market and therefore traders should be aware of modern Forex risk management systems. A lot of quick decisions are to be made, so traders should really be flexible and focus on every trading process in order to get full control of the whole transaction. By doing so losses and future financial troubles will be avoided.
Two Groups of Traders in the Fx Market
It is one of the most popular strategies of this new era. One of the features of this method allows traders to trade online without using real money. One of the advantages is that you have small risk due to not exposing your investment. This is very helpful especially for small traders or even for neophytes of trading.
Whatever the Forex market may bring you, just remember that confidence is not effective if not anchored with great competency and responsibility. Success in trading is easy to reach only if you have a proper Forex risk management.
What happens on a Financial Market?
People buy and sell different stocks and currencies taking the advantage of their daily fluctuations. Here competencies and different innovations never run out of style. The Forex market is a highly sophisticated type of financial market and therefore traders should be aware of modern Forex risk management systems. A lot of quick decisions are to be made, so traders should really be flexible and focus on every trading process in order to get full control of the whole transaction. By doing so losses and future financial troubles will be avoided.
Two Groups of Traders in the Fx Market
- Banks and Companies. This first type of traders are trading for the sake of business. Once they profited in the currency of one country, they will then convert it to the currency of another country in order to earn more. This method will help them to save a lot since converting through the Central Bank is too costly.
- Individual Traders. This refers to struggling traders that want to earn higher profits. They are self governing and are the ones designing their own trading systems and methods. Some big investors may consider them as nothing in the Forex world, but somehow their investments also contribute to the value of currency that affects the economic growth.
It is one of the most popular strategies of this new era. One of the features of this method allows traders to trade online without using real money. One of the advantages is that you have small risk due to not exposing your investment. This is very helpful especially for small traders or even for neophytes of trading.
Whatever the Forex market may bring you, just remember that confidence is not effective if not anchored with great competency and responsibility. Success in trading is easy to reach only if you have a proper Forex risk management.
Let's all admit the fact that Forex market is the place not only for success and profits but also for losses and high risks. Perhaps, the reward and financial gains you acquire here is just similar or with very little difference to the risks you take. Because of the market's volatility, there is no stability on its direction, not to mention that the price of currencies and stocks often fluctuates. As a result, traders are prone to drawbacks and losses if they won't implement proper Forex risk management.
This kind of business requires hard work and higher competency in order not to encounter troubles in the future. Traders really need to commit an enough time to study and master the major processes in trading. They also need to be familiar with all the factors that significantly affect the market's flow that may influence trading transactions. Part of their responsibility is also to be aware of the risk they are taking, they're future outcome if not taken into account, and on how to manage or lessen its intensity. That's why a Forex risk management was developed in order to:
• Avoid surplus stocks. One of the ways to avoid financial troubles is to limit your stock orders. Purchase only an average quantity needed for trading. This way, you could avoid extra expenditure and debt.
• Conquer your emotions. In the trading business, it is ideal to not let your emotions overrule in the process. It would only add up to your worries and burden.
• Do not invest your money in just one trading transaction. Higher risks are taken if you will just concentrate and put all your investments in one trade. Chances are, if unfortunate events will happen, you'll just going to lose all your money leaving you with no resources to pull you up.
Forex risk management is essential in every trading. It does not only lessen the risks you are taking, but also gives you the confidence to overcome hardships and difficulties the Forex market may give you. Remember, the key to success is hard work and competence. This two work hand in hand for the achievement of goals.
Difference Between Demo and Live account in Online Forex Trading.
A consistent live account trader of one
month is better than the consistent of five years of demo trading.
The fact is that you cannot grow or be successful if your money is not
involved in forex trading. As a demo account trader you can try all
experiments but with live or real account it is a different
psychological frame of mind. You learn faster from your mistakes and get
refined, matured and disciplined in the market.
As a beginner trading live account, you
will see money on the table (i.e. sure trading position that will yield
profit) yet fear of loss grips you and you just sit down there and watch
the market move in the trend you have envisaged or analyzed. But if it
were demo account you will go for it. On demo account you take risks
which ordinarily you would not dare on a live account, you end making
money there. But it turns out to be another story when it’s a live
account.
Even though demo account is a near
perfect simulation of live trading, the trader’s emotions and fears are
completely wide apart. It is traditional or conventional for most
trainers to ask you to begin demo trading after your training, but with
my training, I am changing that course. My experience, boldness and
success stem from the fact that I got burnt in the market, but I decided
to face the question of why I encountered losses and since I found that
answer I have nearly been on over 95 per cent success story.
Most people who have lost money in forex
trading and hence loathe forex are those who (by my guess) spent much
time demo trading without a good psychological preparation for the real
or live trading. Also, those who lose money initially to inadequate
education (on technicals and fundamentals) of the market think forex
trading is a herculean task. The initial losses discourage them and they
never go far beyond overcoming that trauma to look for the right answer
rather the blames are heaped on the market. Forensic analysis on their
account history will definitely show their wrongdoings.
In summary, good education and fearless
early live market entry is a sure way to finding the door to successful
career and profitable trading. No pain, no gain!
Sunday, September 1, 2013
Free Forex Bonus €100 To Start Your Trading Career - No Deposit Required!
FOREX BONUS 100 EUR - Tradimo offers €100 for free to start your trading career - no deposit required!
To get started:
► Step 1:
Register with tradimo, click here to register
► Step 2:
Pass the 6 quizzes on the Forex trading beginner strategy
Answers of the questions are following:
* QUIZ 1
Forex beginner strategy: getting started (10 questions)
1. A and D
2. B
3. B and D
4. D
5. A
6. A and C
7. B and E
8. C
9. E
10. B
* QUIZ 2
1/5 Determine the market direction (7 questions)
1. C
2. A
3. B
4. A
5. C
6. B
7. A
* QUIZ 3
2/5: Identify the trading opportunity (9 questions)
1. A
2. C
3. A
4. A
5. D
6. C
7. D
8. C
9. B
* QUIZ 4
3/5: Enter the pending order (10 questions)
1. B
2. A
3. A
4. B
5. C
6. C
7. C
8. A
9. B
10. D
* QUIZ 5
4/5: Manage the pending order while you wait for your trade (10 questions)
1. A, B and C
2. D
3. E
4. E
5. D
6. B
7. B
8. A
9. B
10. A
* QUIZ 6
5/5: Trade management (8 questions)
1. B
2. A
3. B
4. B
5. A
6. C
7. A
8. B
► Step 3: Apply for an account at Varengold
► Step 4: Enter the Varengold user number (Account number) you receive via email
► Step 5: Download and install the trading software. You will get €100 within 48 hours.
Claim your free €100 now!
To get started:
► Step 1:
Register with tradimo, click here to register
► Step 2:
Pass the 6 quizzes on the Forex trading beginner strategy
Answers of the questions are following:
* QUIZ 1
Forex beginner strategy: getting started (10 questions)
1. A and D
2. B
3. B and D
4. D
5. A
6. A and C
7. B and E
8. C
9. E
10. B
* QUIZ 2
1/5 Determine the market direction (7 questions)
1. C
2. A
3. B
4. A
5. C
6. B
7. A
* QUIZ 3
2/5: Identify the trading opportunity (9 questions)
1. A
2. C
3. A
4. A
5. D
6. C
7. D
8. C
9. B
* QUIZ 4
3/5: Enter the pending order (10 questions)
1. B
2. A
3. A
4. B
5. C
6. C
7. C
8. A
9. B
10. D
* QUIZ 5
4/5: Manage the pending order while you wait for your trade (10 questions)
1. A, B and C
2. D
3. E
4. E
5. D
6. B
7. B
8. A
9. B
10. A
* QUIZ 6
5/5: Trade management (8 questions)
1. B
2. A
3. B
4. B
5. A
6. C
7. A
8. B
► Step 3: Apply for an account at Varengold
► Step 4: Enter the Varengold user number (Account number) you receive via email
► Step 5: Download and install the trading software. You will get €100 within 48 hours.
Claim your free €100 now!
Friday, August 30, 2013
The Value of Education in Online Forex Trading.
Education is a rope that can carry us to greatness. It is
one of the most important things in life, because without it, you can't
contribute to the world or earn money, and do not have knowledge. Knowledge is
power, so when you know what you can do, you can go that mile further. This
article addresses that issue and tells how to find the importance of education and what is the worth of quality
education in forex trading?
Let me spell out three scenarios:
Driving from Ojodu/Berger, Lagos, the
first turning on the right has a ‘NO ENTRY’ sign for motorists. A good
one by the transport management authority to educate the motorists and
ensure an effective traffic control, I suppose, but in the middle of
that sign is the non-conspicuous time of ‘from 4pm.’ I wonder why that
important time limit will be written in such a small size font. Then,
what is the essence of that road education? Punitive?
I tuned my car radio and a programme in
which an official of a forex brokerage company was reeling out the
importance of education in forex trading was been aired. The PR man made
notable points as he stressed the importance of education in forex as
the very basic step. A good one! But in my mind, I disagree with their
training structure. I do not see it taking traders to their desired
goal. My doubt also stems from the fact that brokers and traders might
somehow be strange bed fellows. I can authoritatively confirm that an
account under that broker’s PAMM scheme for two years, which yielded
nothing other than a 20 per cent shortfall in investment, was doubled in
six weeks under my management. The client found it incomprehensible.
Thirdly, the craze for foreign education outside Nigeria calls for serious concern economically, especially when one thinks of its effect on capital flight. From the three examples above, the first shows an attempt to educate but still something is hidden. The second points to getting your education at the right place and probably not with a ‘rival’ and the last speaks of how people seek better knowledge if affordable to them.
In relation to this article, readers
have to be informed that getting a proper education now in forex
trading, which removes all fear of losses, teaches proper risk and
profit management, technical and fundamental trading, good trading
strategies, is all they should seek. The time frame to cover all of this
cannot be in short seminars of a day or few days.
Forex trading involves investment, hence the need to guide your capital. Traders go into the market as speculators to make profit. This is the ultimate aim and if that fails, discouragement sets in. From my experience on feedback since writing here, I do not encourage those who seek materials on their own to trade in forex.
Irrespective of the cost, I recommend
mentoring from an experienced trader. Some that called to find the cost
of training, which at present is less than $500, complained that it was
expensive and I advised them to try the Online Trading Academy in St.
Albans, UK or the branch in the US.
Not taking them far again, I do even ask
for their permit to recommend cheaper ones around. Some take it in a
bad stride as if I am haughty. But the answer is that going into forex
trading in which you expect to make money, if not a living, dictates
that you should shun quack training for a quality one; but the choice is
yours. I would not compromise standard. I wonder why someone investing
close to a million naira if not more would shun good training because of
a fee that is less than 10 per cent of his or her investment.
Friday, August 23, 2013
How To Use Candlestick To Identified Short/Sell Signal Forex Market.
This article is a continuation of last
week’s article. Last week, if you can grab a copy of that article, we
discussed long or buy formations. This week, the focus is the opposite
of that. We shall also summarise five candlestick bearish patterns and
their characteristics for a sell decision or to go short.
Hanging man
The hanging man has or is characterised
by a small real body, long lower shadow and short or
non-existent upper shadow. The length of the lower shadow must be at
least twice that of the real body.
The hanging man is a bearish reversal
pattern that can also mark a top or resistance level. Forming after an
advance, a hanging man signals that selling pressure is starting to
increase. The low of the long lower shadow confirms that sellers pushed
prices lower during the session. Even though the bulls regained their
footing and drove prices higher by the finish, the appearance of selling
pressure raises the yellow flag.
As with the hammer, a hanging man
requires bearish confirmation before an action. Such confirmation can
come as a gap down or long black candlestick on heavy volume.
Shooting star
The shooting star is a bearish reversal
pattern that forms after an advance and in the star position, hence its
name. A shooting star can mark a potential trend reversal or resistance
level. The candlestick forms when prices gap higher on the open, advance
during the session and close well off their highs. The resulting
candlestick has a long upper shadow and small black or white body. After
a large advance (the upper shadow), the ability of the bears to force
prices down raises the yellow flag. To indicate a substantial reversal,
the upper shadow should relatively be long and at least two times the
length of the body. Bearish confirmation is required after the shooting
star and can take the form of a gap down or long black candlestick on
heavy volume.
Bearish engulfing
This requires an existing or previous
uptrend or ascension. The last candle before the engulfing candle must
be bullish. The engulfing candle must be bearish and must ‘swallow’ the
previous bullish candle in a manner that the previous candle can
completely fit into it. A bearish confirmation may be required. The
formation of the pattern on a higher time frame will give more potent
result.
Bearish piercing
This requires an existing or previous
uptrend or ascension. The last candle before the piercing candle must be
bullish. The piercing candle must shoot/pierce/cover the over or at
least 50 per cent of the previous candle. The piercing candle must be
bearish. The piercing candle must open higher than the close of the
previous candle, then close below the midpoint of the body of it. A
bearish confirmation may be required. The formation of this pattern on a
higher time frame will give more potent result.
Dark cloud cover
This requires an existing or previous
uptrend or ascension. The last candle before the dark cloud candle must
be bullish. The next candle opens at a new high then closes below the
midpoint of the body of the previous bullish candle. The formation of
this pattern on a higher time frame will give more potent result.
A combination of last week and this week
summary on candlestick formation could narrow your search on winning or
profitable candlestick formation strategy as you now have nine
strategic formations to look out for on your trading style, time frame
or periodicity.
Friday, August 16, 2013
Candlestick Long/Buy Formations
Online forex trading is simply about
buying and selling. All technicalities and fundamentals about forex boil
down to buying and selling of currency pairs to make gain. This article
and subsequent ones shall focus on these two. The articles shall
summarise trading in its simplest form. The way I have taken trading
despite all its intricacies is that am either buying or selling to make
gain and leave the rest. Going long means to buy in forex trading.
With these articles you can get the
essence of forex trading and remove fear of what you see on your
computer screen that looks complicated. This week’s article is on buy or
going long signals with candlestick charting/formation as the basis of
decision. In as much as new comers in forex will want to have an
in-depth (which is good), on the long run it will be surprising that
forex trading is simply about what am about to discuss. Success in forex
trading is not measured by how many books you have read, nor how many
courses you have attended, or by how many market tools in your arsenal
but by that apt decision to buy and sell and ultimately make profit.
I will onwards from here give four candlestick patterns and their characteristics for a buy decision or to go long.
Hammer
As in the picture above hammer has or it’s characterised by a
small real body (black or white), long lower shadow and short or
non-existent upper shadow. The length of the lower shadow must be at
least twice that of the real body. The hammer is a bullish reversal
pattern that forms after a decline (meaning there must be an existing or
previous downtrend). In addition to a potential trend reversal, hammers
can mark bottoms or support levels. After a decline, hammers signal a
bullish revival. The use of hammer also goes with periodicity. The
formation of a hammer on a higher time frame will give more potent
result.
Inverted hammer
The inverted hammer is the opposite of
hammer as in the picture above. It has all the characteristics of a hammer but it is like a
hammer turned upside down (inverted), hence instead of a long lower
shadow, it has a long upper shadow. The Inverted Hammer forms after a
decline or downtrend. Inverted hammers represent a potential trend
reversal or support levels. After a decline, the long upper shadow
indicates buying pressure during the session.
However, the bulls were not able to
sustain this buying pressure and prices closed well off of their highs
to create the long upper shadow.
Because of this failure, bullish
confirmation is required before action. An inverted hammer followed by a
gap up or long white candlestick with heavy volume could act as bullish
confirmation. The application of an inverted hammer also goes with
periodicity. The formation of an inverted hammer on a higher time frame
will give more potent result.
Engulfing
Bullish Piercing
Given an array of candlestick
formations, the four above could simply be looked for on your Meta
trader platform and any which supports candlestick charting taking into
cognisance the periodicity. I am of the positive opinion that you could
be trading profitably based on the fact that you can actually recognise
these patterns.
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