Forex Street

learn trading Forex

Do you imagine that some paid or free forex trading course.



Could you imagine that we could trade like machines do forex trading online? It
could be perfect. If you decided to invest in forex, the trade would be 100%
effective. Sadly, it’s impossible. So far, at least. Yet, though it’s humans who
trade, it’s impossible to trade avoiding emotions. But it doesn’t mean that only
if you are a human, you can not trade.



It happens so that most trading technologies combine some percent of chance to
win and some percent of stress. The technologies that are most effective are the
most stressful at the same time. Therefore it’s inevitable that you choose the
one that provides you with the greatest chance to win and that is at the same
time not impossible to handle the pressure. Choosing the right trading technique
is much about individual characteristics. It means that the very same technology
will be perfect for some traders, but will mean losses for the others. And it’s
not obviously that a person who fails using some technology is doing something
wrong.



So, what if it happens that you find the splitting deals trade most effective,
but one day it brings you losses? Mathematically it makes no sense. Yet, if you
take into account that you are a human being and your trade is influenced not by
technology only, it’s getting clearer. If the technology doesn’t “fit” you, it
will only bring you losses. If you do not take human factor into account, your
long term strategy has no future.



Yet’ let us not be too enthusiastic about the former example. It’s common that
the splitting deal trade is any way much more effective than other approaches.
Yet, we just wanted to state that there is almost nothing absolute in trade. You
should see the whole picture and be informed. And let nobody persuade you just
by stating that something is scientifically approved. Think about logics and
reasons for something.

 

Labels: learn Forex

Forex Money Management. Trade safe building stable gains

<>Money management is a way traders control their money flow: in or
out of pockets... Yes, it's simply the knowledge and skills on managing a
personal Forex account.

There are several rules of good money management:

1. Risk only small percentage of total account

Why is it so important?

The main idea of the whole trading process is to survive!
Survival first,
and only then making money on top.

One should clearly understand, that Big
traders first of all are skillful survivors. In addition, they usually have deep
pockets, which means that under unfavorable conditions they are financially able
to sustain big losses and continue trading. For the ordinary traders, the
majority of us, the skills of surviving become a vital "must know" platform to
keep trading accounts alive and, of course, to make good stable profits.

Let's
take a look at the example that shows a difference between risking a small
percentage of capital and risking a bigger one. In the worst case scenario of
ten losing trades in a row the balance of trader's account will suffer this
much:

Trades Account balance Risking 2% of total account per trade 1 Start — 5000 100 2 4900 98 3 4802 96 4 4706 94 5 4612 92 6 4520 90 7 4430 89 8 4341 87 9 4254 85 10 4169 — 17% of the account has been lost

Trades Account balance Risking 10% of total account per trade 1 Start — 5000 500 2 4500 450 3 4050 405 4 3645 364 5 3281 328 6 2953 295 7 2658 265 8 2392 239 9 2153 215 10 1938 — over 60% of the account has been lost

Apparently, there is a
big difference between risking 2% and 10% of the total account per trade. A
trader who has made 10 trades risking only 2% of balance per trade, under the
worst conditions would lose only 17% of the total account. The same trader who
had been exposing 10% of balance per trade would end up with loss of over 60% of
the total account balance. A simple money management rule — significant results.

Forex Trend Lines

Plotting a trend line on a Forex chart gives very valuable information.
Not only the trend line will show a current trend (direction) of the price move, it will also depict points of support and resistance levels for market price.

In addition, it will also help to determine good entry and exit points, best positioning for profit taking and placing protective stops.
This very simple, but yet quite powerful tool will be one of the crucial indicators of possible trend reversal (when market price starts move in the opposite direction).

So, shall we learn how to draw trend line to make it our good friend in profitable forex trading?

In the uptrend market trend line is drawn below the pattern formation; in the downtrend — above. (That is why when the trend is going to change our trend line will be crossed, which therefore will give us a signal that the price can start moving in another direction.)

In the uptrend, Forex trend line is drawn through the lowest swing-points of the price move.
Connecting at least two «lowest lows» will create a trend line.

In the down trend, trend line is drawn through the highest swing-points of the price move.
Connecting at least two «highest highs» will create a trend line.

A trend line confirms its validity when the price respects this line. The more «lowest lows» / «highest highs» the trend line contains, the stronger it becomes.

Another sample of drawing trend lines: main and inner downtrend lines.

Forex Fundamental Analysis.

 Basics
What is fundamental analysis?
Fundamental analysis in Forex is a type of market analysis which involves studying of the economic situation of countries to trade currencies more effectively.
It gives information on how the big political and economical events influence currency market. Figures and statements given in speeches by important politicians and economists are known among the traders as economical announcements that have great impact on currency market moves. In particular, announcements related to United States economy and politics are the primary to keep an eye on.

What is economic calendar?
Economic calendar is created by economists where they predict different economics figures and values according to previous months. It contains next data:
Date — Time — Currency — Data Released — Actual — Forecast — Previous
For example: If the forecast is better than the previous figure, then US dollar usually is going to strengthen against other currencies.
But when news are due, traders have to check the actual data.
If to look at oil prices, a rising price will result in weakening of currencies for countries which depend on huge oil import, e.g. America, Japan.
A good example of detailed economic calendar can be found here: Forex Economic Calendar
How to read Forex Economic Calendar?

Whose speeches to keep an eye on?
Chairman of the Federal Reserve Bank of USA, Secretary of the Treasury, President of the Federal Reserve Bank of San Francisco and so on. Speeches of those prominent people are watched closely by traders.

What are the most powerful figures that move Forex market?
Interest rate
Traditionally, if a country raises its interest rates, its currency will strengthen because investors will shift their assets to that country to gain higher returns.
Employment situation
Decreases in the payroll employment are considered as signs of a weak economic activity that could eventually lead to lower interest rates, which has negative impact on the currency.
Trade balance, budget and treasury budget
A country that has a significant Trade Balance deficit will generally have a weak currency as there will be continuous commercial sellings of its currency.
Gross Domestic Product (GDP)
GDP is reported quarterly and is followed very closely as it is a primary indicator of the strength of economic activity.
A high GDP figure is usually followed by expectations of higher interest rates, which is mostly positive for the currency.

Less powefull economic indicators are:
Retail sales
It is the first real indicator of the strength of consumer expenditure.
Durable goods
Rising Durable Goods Orders are normally associated with stronger economic activity and can therefore lead to higher short-term interest rates, which is usually supportive for a currency.

How do traders use all this?
There are few useful tips that can be followed:
1. Keep an economic calendar on hand. Watch for the events when data are due to be released.
2. Know what indicator is gaining the most of attention at any given time as it becomes a catalyst for future price moves. For example, when the U.S. dollar is weak traders will watch closely the inflation indicator.
3. When the difference between the expectations and real results occur, watch for corrections in the market price moves.
4. Pay attention to news revisions if any, the situation on the market can change quickly.

Another important thing to consider — your Forex Broker!
Because of the high volume of trades made at the time of important economic announcements some brokers may block or slow down the execution of new trading orders.
For traders it means they should enter the trade before the "major action" begins and, what is more important, they must always have their protective stops placed. Being not able to access the trade desk to close your losing position in time is the most frustrating thing traders should always try to avoid.


Good trades!
FX Leader

Forex Trading Tips

Tip 1. Gamblers go to casino. All unproved, spontaneous actions in Forex trading — are a part of pure gambling.
Any attempt to trade without analysis and studying the market is equal to a game. Game is fun except when you are losing real money...

 Tip 2. Never invest money into a real Forex account until you practice on a Forex Demo account!
Allow at least 2 month for demo trading. Consider this: 90% of beginners fail to succeed in the real money market only because of lack of knowledge, practice and discipline. Those remaining 10% of successful traders had been sharpening and shaping their skills on demo accounts for years before entering the real market.
A good demo account to start practicing with could be, for example, FXGame from Oanda.

 Tip 3. Go with the trend!
Trend is your friend. Trade with the trend to maximize your chances to succeed. Trading against the trend won't "kill" a trader, but will definitely require more attention, nerves and sharp skills to rich trading goals.

Tip 4. Always take a look at the time frame bigger than the one you've chosen to trade in.
It gives the bigger picture of market price movements and so helps to clearly define the trend. For example, when trading in 15 minute time frame, take a look at 1 hour chart; trading hourly would require obtaining a picture of daily, weekly price movements.
If a trend is hard to spot — choose a bigger time frame. Up and down market patterns are always present. Always make sure you know the dominant trend, unless you are a scalper. Scalpers have no need to spend their time studying big trends, what's happening in the market here and now (during 5-10 minute time frame) should be of only importance to a Forex scalper.

Tip 5. Never risk more than 2-3% of the total trading account.
One important difference between a successful and an unsuccessful trader is that the first is able to survive under unfavorable conditions on the market, while an unsuccessful trader will blow up his account after 5-10 unprofitable trades in the row.
Even with the same trading system 2 traders can get opposite results in the long run. The difference will be again in the money management approach. To introduce you to money management, let's get one fact: losing 50% of total account requires making 100% return from the rest of money just to restore the original balance.

Tip 6. Put emotions down. Trade calm.
Don't try to revenge after losing the trade. Don't be greedy by adding lots of positions when winning.
Overreaction blocks clear thinking and as a result will cost you money. Overtrading can shake your money management and dramatically increase trading risks.

Tip 7. Choose the time frame that is right for you.
Choosing wise means that you are comfortable and have time enough to analyze the market, place and close orders etc. Some people can't wait for hours for the price to make a move, they like action and therefore prefer smaller time frames. On the contrary, for others 10-15 minutes is a hustle to be able to make the right decision.

Tip 8. Not trading or
standing aside is a position.

When in doubt — stay out. If it is not clear where the market will move — don't
trade. In this case saving present capital is and absolutely better choice than
risking and losing money.

Tip 9. Learn to use protective stops.
Respect them and don't move.

Hoping that market will turn in your direction is a very delusive hope. By
moving a stop loss further a trader increases his chances to end up with much
bigger loss.

When holding to a losing trade too long, and even if funds permit, traders as a
rule are very reluctant to accept big losses, thus often continue "hoping for
best". In the mean time invested money is stuck in the open trade for unknown
period of time (weeks and even months) and cannot be used for opening new
positions. Not working money — dead money. Also this will result in constant
interest payments for holding open positions.

Tip 10. "Keep it simple, stupid" — applies
to indicators, signals and trading strategies.

Too much information will create a controversial picture of when to trade and
when not to. To avoid lots of confusion create a simple but working method of
trading Forex.

Tip 11. Think about risk/reward ratio before
entering each trade.

How much money can you lose in this trade? How much can you gain? Now, make a
decision if the trade is worth entering.

Example: if trader is looking for possible 35 pips gain and possible 25 pips of
loss, such conditions are not worth trading. Compare it with the situation when
a trader has 100-120 pips of potential gain and only 10-20 pips of possible
loss. This is the trade to open!

Tip 12. Never add positions to a losing
trade. Do add positions when the trade has proven to be profitable.

Don't allow a couple of losing trades in a row become a snowball of losing
trades. When it is obviously not a good day, turn the monitor off. Often not
trading for one day can help to break a chain of consecutive losses. Trying to
get revenge can often make things worse.

Tip 13. Let your profits run.

Let your position be open for as long as the market wishes to reward you. Of
course, for this traders need a good exit strategy, otherwise they risk to give
all profits back...

Running two or more open trades gives an option to close some positions earlier
and keep others running for higher profits.

Tip 14. Cut your losses short.

It's better to finish unprofitable trade quickly than wait for the situation to
get worse. Don't put a stop loss too far — it's your money you risk. Better
calculate the best spot to enter when a potential loss would be minimized.
Again: respect your stop and don't move it "cherishing hopes".

Tip 15. Trade currency pairs in respect to
their active market hours.

Learn about overlapping market hours: when two markets are open and highest
volume of trades is conducted.

For example, Australian and Japanese trading sessions are overlapped from 8pm to
1 am EST. At that time trader can successfully trade AUD/JPY currency pair.

 

Labels: Forex advice free

Forex Books for Beginners, Download Free

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books , forex books download , forex books torrent , forex books pdf , forex
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Here you will find the Forex e-books that provide the basic information on
Forex trading. You can learn basic concepts of the Forex market, the technical
and fundamental analysis. While all these e-books are recommended for every new
Forex trader, they won’t be very useful to the very experienced traders.

Online Trading Courses — Course#1 lesson #1 by