Newbies looks on the money management in a confused manner when it’s been discussed. The truth is that every trader must pass this stage in forex business. Sometimes you wonder why money management is been talked about in forex business. It’s not bad you wonder about this in fact you have every right to wonder why many experienced trader will tell you about money management. The truth about surviving in…
How to decided when is the best time for trading at Forex if each session has its own unique characteristics? Let’s examine characteristics of each session and determine if there is the best time to trade on Forex. As you know, demand for the national currency increases at the opening of the trading session in this country. For example, trading volume in the yen increases during the Asian session because…
Most trading is done using some type of technical analysis. There is an almost infinite number of indicators which can be used in myriad of ways. Trend lines, retracement levels, Fibonacci numbers, Elliot wave analysis, candlestick patterns, point and figure charting are widely used. Just about any form of technical analysis can be used for trading Forex. Yet there is a trading application popular in other in other financial markets…
What is Technical Analysis? In essence, it’s the study of price action to identify trends – spotting repetitive chart patterns that can be traded for profits. Forex chart patterns repeat themselves – as they reflect human psychology, which is constant. Many traders think that simply studying Forex charts can’t work – because it doesn’t take into account the supply and demand situation – but it does actually work. A simple…
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 thinking the more indicators they combine the better – Wrong! If you do this the system…
There are two types of analysis used in Forex trading, fundamental analysis and technical analysis. Fundamental analysis examines current political and economic events in order to predict movements in currencies, while technical analysis uses historical economic data to predict movements in the Forex market. There are three underlying assumptions to technical analysis: 1. Movements in price are the result of a combination of all the forces is in the market….
You’ll read a lot about the advantages of trading currencies, yet most traders tend to turn advantages into disadvantages due to a lack of understanding. That’s why 95% of currency traders lose money and there’s one thing in particular that wipes out more trader equity than anything else – volatility! Most forex traders simply can’t deal with volatility. Volatility, Deal with it or Lose Money Currencies are volatile, and in…
I had an email from a client today regarding the movement of a stop loss. First of all, I’m going to start off by assuming that you do, indeed, use a stop when you’re trading the forex, especially when short term trading. If you are trading without the use of a stop, you can plan on something very bad happening to your trading account at some point. It’s just a…
The fed ‘played their hand’, and decided not to raise interest rates in the US. It was this year’s highly anticipated news that forced the market to remain in consolidation holding patterns until the decision was announced, so investors knew where they stood. Initially the USD weakened off the back off the release, but quickly started to show signs of strength again. On the USDSGD daily chart, we can see…
The systems of compilation for Forex data vary a great deal. There are as many different types of collation as you can reasonably imagine, and some of these methods have been proven over time to be, if not foolproof, then at least incredibly informative. Access to the right data is important in ensuring as high a possibility of success in your trading as you possibly can. This kind of data…