Forex Technical Analysis

Forex traders are frequently looking for the 10 essentials of Forex trading. This article will discuss the top 10 essentials of Forex trading. Keep reading to get instant access to a Forex $100.000.00 demo account.

Forex trading is not a game, it’s a business. Only a select 10 percent of Forex traders are consistently successful. These 10 essentials of Forex trading will help you get into the select 10 percent and stay there.

Essential of Forex Trading Number 1: The majority of your time should be spent on the 15 minute chart only.

Essential of Forex Trading Number 2: Don’t overdo it. If you are new to Forex trading then only try and carve out 20 pips at one time. Once you have done that turn it off and do some more Forex study.

Essential of Forex Trading Number 3: Try not to dwell much at all on the 5 minute chart as it could only serve to distract you and confuse you.

Essential of Forex Trading Number 4: Don’t use MACD for buy and sell signals as it is useless as a trigger.

Essential of Forex Trading Number 5: Do all you can to protect your money by using 20-30 pip stops in your Forex trading. You will generally lose 3 out of 10 trades so it’s important to keep your losses to an absolute minimum.

Essential of Forex Trading Number 6: Consider employing trailing stops where you keep moving your Forex profits up to protect your losses.

Essential of Forex Trading Number 7: Keep an accurate and detailed log of all your good and bad trades. Analyze where you went wrong and what you could hav done better.

Essential of Forex Trading Number 8: Your “gut feeling” can get you into a lot of financial trouble. Only react to bona fide indicators and ignore all others.

Essential of Forex Trading Number 9: Everyone has different pivot points because everyone uses different market markets.

Essential of Forex Trading Number 10: If you’re not going to take Forex trading seriously then don’t even start!

There are many fundamentals that successful Forex traders follow to ensure they reach and stay in the select group of 10 percent of Forex traders who are consistently Forex winning traders.

By: Karin I Manning

Often people ask me if it is really possible to make a living trading the Forex market. I would have to say that it is definitely not possible to merely make a living unless you have no idea of what simple trading money management is. If you are successful in Forex trading and you understand what money management is, you will not just make a living but will create wealth relatively quickly. So I often tell people that if you are looking for a job, you might want to try Wal Mart. I hear they are hiring part time employees.

A good tool that can help you to understand how this works is a calculator. They can be purchased at most local stores for as little as $5.00. Then you might want to open a Forex trading demo account and place a trade. Observe what happens to the digits that display the profit or loss and get an idea of what the value of a PIP is in your account. Then you can develop a purely hypothetical trading plan.

After you have learned a little about how Forex trading works you should start to get an idea of what is a realistic expectation for results in PIPS over a given period of time. Then decide what a prudent risk management plan would be. Some say no more than 2% of your capital is a good number. That number is of course, based on a false industry belief that it is not possible to have a high win to loss ratio in Forex trading. Regardless, it is a good conservative number. Then simply start off with a number that represents the amount of capital you plan to start with and project what would happen if you were successful with a realistic win to loss ratio. How many PIPS will you earn? Win to loss ratio is the number of winning trades vs. the number of losing ones. Risk to reward ratio represents the average number of PIPS per loss vs. the average number of PIPS per winning trade. What will your average net gain be per day or per month? What will that do to your capital?

The next step is to note the amount of money you need to meet your living expenses. When the amount of your monthly profits is at least twice as much as the amount you need to live, begin taking out 50% of your monthly profits. From that point on you will make a living AND your trading account will increase each month while the amount you take out will also increase every month from that point on. What could be better than that?

By: Scott Shubert

Being in the forex field requires you to learn new things including the Pip value formula and the Fibonacci calculator which are obviously for computations. Forex is an easy field to be in especially if you have experiences when it comes to equities including the future market options. However, if you are a newbie, this will be complicated on your part as you need to start from the basics before you finally master this kind of work.

The basic includes your way of computing such factors when it comes to forex trading. At first, it will be complicated but if you will try to focus, you will take it as if you are just reading a book. The first calculating method you have is to use the pip value formula which is easy if you will use the USD currency and it will be complicated if it is not paired to other type of currencies.

If you are about to compute USD-based accounts which are paired to EUR, GBP, AUD and etc, you need to use the standard lot which is $10. Likewise, you headache will come if you will try to compute the non-USD currency based or those currencies that are not paired with USD like USD/JPY and EUR/CHF. Also, usage of pip value calculator is possible which can be obtained freely at some website offering free computation samples.

The other calculating process you can use aside from the first mentioned above is through the Fibonacci calculator. Obviously, you will need a computing device here which can also be obtained from some websites that offers help for those who started working with forex trading. Double checking is possible as you can use some Fibonacci formula which can be used only if you have enough knowledge on how you will use this.

There are lots of ways to learn more about this factor and the most convenient is through the informational sources that can be seen on websites. In this manner, if you want hard copy, then you can purchase eBook or a real book that discusses about forex trading as a whole and not just focusing in one topic. You just need to exert extra effort for you to learn everything about this field as it is one of those jobs that needs computations desperately.

It is good to learn things before you finally get into a certain field. In this situation that you are about to deal with money, you need to know first the basis on how you will compute through the use of either pip value formula or Fibonacci calculator. Learning things on how to use these two computing process needs to be accomplished before anything else.

By: Ems Aleks

Many people who start to trade the Forex market, do so without really knowing what everything means. You need to know all the facts before doing anything, get to know the system, memorize symbols and terms for later use. Here is a list of some of the terms that a successful trader will need to know.

Arbitrage – Profiting from the differences in the price of a currency pair that is trade against another pair.

Ask/Ask Price – Price at which a currency pair is offered for sale; the quoted price at which a trader can buy a currency pair.

Bear Market – An long period of general price decline in an individual currency, asset or market.

Bid – The price at which a trader can place an order to buy a currency pair.

Broker – An agent who ‘executes’ orders to buy and sell currencies for a commission or on a spread.

Bull Market – A market with a consistent upward trend.

Central Bank – A bank administered by a national government, which regulates the behavior of financial institutions within its borders.

Commission – The fee that a broker may charge traders for dealing on their behalf.

Currency Pair – The two currencies in a foreign exchange transaction. The”EUR/USD” for example.

Day Trading – A type of trading style where trades are opened and closed during the same day.

Federal Reserve (FED) – The Central Bank of the United States.

Hedge – A Transaction that reduces the risk on an existing investment position.

Long Position – In the forex market, when a currency pair is bought, the primary currency is the “long” pair and the second is the “short”.

Margin Call – A call for additional funds in an account because the amount of money in an account has fallen below a required minimum.

Open Position – Any position, long or short, that is subject to market movements and has not been closed out.

Pip – The smallest amount of change in a foreign currency price, up or down.

Rate – Price at which a currency can be bought or sold against another currency.

Slippage – Its the experience of not getting filled at your expected price when you place a market order or stop loss. This can happen because either

Spot Market – A market where people buy and sell actual financial currencies.

Spread – The pip difference between the bid and ask price of a currency pair.

Stop Loss – Order to buy or sell when a given price is reached.

Tick – The smallest possible change in price, up or down.

By: Luis Aguirre

Before getting to know about forex projects, it is important to have some basic idea about it. Forex or foreign exchange is one of the largest and most liquid financial markets in the world, which according to the Triennial Central Bank Survey of the BIS (Bank of International Settlements) has an average turnover of a whopping $1.88 Trillion daily!

Forex put in a nutshell is actually the dealing of currency between different parts of the world. All that you do is to buy for less and sell for high. Though it may sound simple enough theoretically, once you get into it there’s no turning back. It involves a lot of risk and hence is fit for only those who have the business acumen in them.

Now coming into the subject, forex projects are nothing but blogs which detail the wide range of experiences of a trader. The project aspect of it is to construct oneself into a full-time forex trader. This forex blog may include daily postings of forex traders, trade performance charts, informative trading articles written by those with a whole lot of experience in the field, forex charts and images.

It may also include forex videos, ratings and reviews, contests and a lot more. Currently, forex projects posts an Alexa ranking of 168,095 and a Compete ranking of 262,031.

Other sites which are included under this family are Forex on Top, Broker On Top, All Pivot Points, Forex Risk Calculator and many more which are yet to come. Out of these, the first two have gained wide acceptance since they were started. Forex on Top algorithmically ranks the most visited forex websites while Broker on Top was launched in order to provide rankings of Futures Commission Merchants. The Forex Calculator provides leverage, pip profit or loss, profit at target, loss at stop etc.

By: Dane Bergen