sâmbătă, 28 februarie 2015
joi, 14 octombrie 2010
How To Place Orders With A Forex Broker
When you place orders with a forex broker, it is extremely important that you know how to place them appropriately. Orders should be placed according to how you are going to trade - that is, how you intend to enter and exit the market. Improper order placement can skew your entry and exit points. In this article, we'll cover some of the most common forex order types.
Limit orders are commonly used to enter a market when you fade breakouts.
You fade a breakout when you don't expect the currency price to break successfully past a resistance or a support level. In other words, you expect that the currency price will bounce off the resistance to go lower, or bounce off the support to go higher.
For example, suppose that based on your analysis of the market, you think that USD/CHF's current rally move is unlikely to break past a resistance successfully. Therefore, you think that it would be a good opportunity to short when USD/CHF rallies up to near that resistance. You can then place a limit-sell order a few pips below that resistance level so that your short order will be filled when the market moves up to that specified price or higher.
Besides using the limit order to go short near a resistance, you can also use this order to go long near a support level. For instance, if you think that there is a high probability that USD/CHF's current decline will pause and reverse near a particular support level, you may want to take the opportunity to long when USD/CHF declines to near that support. In this case, you can place a limit-buy order a few pips above that support level so that your long order will be filled when the market moves down to that specified price or lower.
Limit orders are used to set your profit objective.
Before placing your trade, you should already have an idea of where you want to take profits should the trade go your way. A limit order allows you to exit the market at your pre-set profit objective. If you long a currency pair, you will use the limit-sell order to place your profit objective. If you go short, the limit-buy order should be used to place your profit objective. Note that these orders will only accept prices in the profitable zone.
Execute the Correct Orders
Having a firm understanding of the different types of orders will enable you to use the right tools to achieve your intentions - how you want to enter the market (trade or fade), and how you are going to exit the market (profit and loss). While there may be other types of orders, market, stop and limit orders are the most common of them all. Be comfortable using them because improper execution of orders can cost you money.
Limit orders are commonly used to enter a market when you fade breakouts.
You fade a breakout when you don't expect the currency price to break successfully past a resistance or a support level. In other words, you expect that the currency price will bounce off the resistance to go lower, or bounce off the support to go higher.
For example, suppose that based on your analysis of the market, you think that USD/CHF's current rally move is unlikely to break past a resistance successfully. Therefore, you think that it would be a good opportunity to short when USD/CHF rallies up to near that resistance. You can then place a limit-sell order a few pips below that resistance level so that your short order will be filled when the market moves up to that specified price or higher.
Besides using the limit order to go short near a resistance, you can also use this order to go long near a support level. For instance, if you think that there is a high probability that USD/CHF's current decline will pause and reverse near a particular support level, you may want to take the opportunity to long when USD/CHF declines to near that support. In this case, you can place a limit-buy order a few pips above that support level so that your long order will be filled when the market moves down to that specified price or lower.
Limit orders are used to set your profit objective.
Before placing your trade, you should already have an idea of where you want to take profits should the trade go your way. A limit order allows you to exit the market at your pre-set profit objective. If you long a currency pair, you will use the limit-sell order to place your profit objective. If you go short, the limit-buy order should be used to place your profit objective. Note that these orders will only accept prices in the profitable zone.
Execute the Correct Orders
Having a firm understanding of the different types of orders will enable you to use the right tools to achieve your intentions - how you want to enter the market (trade or fade), and how you are going to exit the market (profit and loss). While there may be other types of orders, market, stop and limit orders are the most common of them all. Be comfortable using them because improper execution of orders can cost you money.
marți, 12 octombrie 2010
How to Choose a Forex Broker
How to Choose a Forex Broker
Choosing a good forex broker is one of the most important decisions you need to make at the beginning (or at any point) of your forex trading career. Do not take this decision lightly, but at the same time don’t stress over it – the process does not need to be complicated – just like in your trading decisions, once you do your homework, things tend to fall into place. Chance favors the prepared trader and everything you need to make an informed decision is listed right here. All you have to do is follow the advice given and you will find yourself a broker that suits your needs. If you are not familiar with what is available, you can have a look at the brokers we have listed in our Broker Reviews section to familiarize yourself with who is who in the forex world. If you have already narrowed down your search to just a few, or even one broker, and want to be sure that they are in fact what you want, then keep reading.
Regulation (the "Legitimacy Test")
The first thing you need to do is check whether the broker is regulated. The fact that the forex market itself is not regulated opens the door to a lot of possibilities for a scheming mind. There are shifty brokers out there, ranging from outright scams to just badly run businesses which are not accountable to any regulatory body. The brokers who are regulated choose to be so, in order to add a layer of legitimacy to their reputation. Please do NOT fund any accounts with an unregulated forex broker. There are not many good reason to do so, and plenty of reasons not to. It just makes sense.
Choosing a good forex broker is one of the most important decisions you need to make at the beginning (or at any point) of your forex trading career. Do not take this decision lightly, but at the same time don’t stress over it – the process does not need to be complicated – just like in your trading decisions, once you do your homework, things tend to fall into place. Chance favors the prepared trader and everything you need to make an informed decision is listed right here. All you have to do is follow the advice given and you will find yourself a broker that suits your needs. If you are not familiar with what is available, you can have a look at the brokers we have listed in our Broker Reviews section to familiarize yourself with who is who in the forex world. If you have already narrowed down your search to just a few, or even one broker, and want to be sure that they are in fact what you want, then keep reading.
Regulation (the "Legitimacy Test")
The first thing you need to do is check whether the broker is regulated. The fact that the forex market itself is not regulated opens the door to a lot of possibilities for a scheming mind. There are shifty brokers out there, ranging from outright scams to just badly run businesses which are not accountable to any regulatory body. The brokers who are regulated choose to be so, in order to add a layer of legitimacy to their reputation. Please do NOT fund any accounts with an unregulated forex broker. There are not many good reason to do so, and plenty of reasons not to. It just makes sense.
miercuri, 18 august 2010
5 Things You Must Do If You Want To Attain Financial Freedom Through Forex Trading
With the amazing growth of the forex market, you are going to see an astounding amount of traders lose all their money. Unfortunately, they haven't followed the simple steps I have laid out for you. Go through these steps and give yourself the greatest opportunity to achieve your goals.
1. Have Faith In Yourself
To reach the level of elite forex trader, you must trust in yourself and your forex trading education. You must be willing to make all your trading decisions, instead of relying on someone else's thoughts or ability (or lack of). Of course, you will prepare yourself fully before every risking any money.
2. Accept Your Learning Curve
Unless you are a veteran trader, you will lose money trading the Forex market. This is a near certainty. I don't say this to talk you out of trading. In fact, quite the opposite. You will be trading against others that fall to this reality day in and day out. You, however, will not risk a dime until you have learned the skills you need to make money trading the forex.
3. Decide What Type of Trader You Are
There are many ways to trade the forex. They range from very active to very patient. You must decide which style suits you best. The best time to learn this about yourself is while you are trading a demo account. There is no need to allow your learning curve to cost you money.
4. Get Educated
Education is the shortest path to elite forex trading. Regardless of your ultimate goals, you will reach them quicker with a great forex trading education. Take some time to review different options before deciding on who to trust with your forex trading education needs. A forex seminar will help shorten your learning curve drastically.
5. Continue to Get Educated
In order to achieve and retain elite forex trading skills, you must constantly be adding to you knowledge base. Your education should never end. In fact, one of the key points to look for in an elite forex trading course is ongoing education. It's nice to have an ongoing relationship with the person/people helping you to achieve your goals.
What separates an elite forex trader from all others is their desire and ability to be independent. Many traders are willing to follow signals, systems, strategies, or anything else you may call them. By taking this approach, however, these traders are only as good as the people they follow.
An elite forex trader will lead. Their decisions will be calculated and analyzed to near perfection. They will make decisions with no hesitation, and handle the growth of their account in a predetermined, intelligent fashion. Take your trading to their level and you will never look back.
by Eddie Yakubovich
1. Have Faith In Yourself
To reach the level of elite forex trader, you must trust in yourself and your forex trading education. You must be willing to make all your trading decisions, instead of relying on someone else's thoughts or ability (or lack of). Of course, you will prepare yourself fully before every risking any money.
2. Accept Your Learning Curve
Unless you are a veteran trader, you will lose money trading the Forex market. This is a near certainty. I don't say this to talk you out of trading. In fact, quite the opposite. You will be trading against others that fall to this reality day in and day out. You, however, will not risk a dime until you have learned the skills you need to make money trading the forex.
3. Decide What Type of Trader You Are
There are many ways to trade the forex. They range from very active to very patient. You must decide which style suits you best. The best time to learn this about yourself is while you are trading a demo account. There is no need to allow your learning curve to cost you money.
4. Get Educated
Education is the shortest path to elite forex trading. Regardless of your ultimate goals, you will reach them quicker with a great forex trading education. Take some time to review different options before deciding on who to trust with your forex trading education needs. A forex seminar will help shorten your learning curve drastically.
5. Continue to Get Educated
In order to achieve and retain elite forex trading skills, you must constantly be adding to you knowledge base. Your education should never end. In fact, one of the key points to look for in an elite forex trading course is ongoing education. It's nice to have an ongoing relationship with the person/people helping you to achieve your goals.
What separates an elite forex trader from all others is their desire and ability to be independent. Many traders are willing to follow signals, systems, strategies, or anything else you may call them. By taking this approach, however, these traders are only as good as the people they follow.
An elite forex trader will lead. Their decisions will be calculated and analyzed to near perfection. They will make decisions with no hesitation, and handle the growth of their account in a predetermined, intelligent fashion. Take your trading to their level and you will never look back.
by Eddie Yakubovich
marți, 17 august 2010
The Price of Money and Forex Indicators
Tuesday, August 17, 2010 GMT
By: Adrian Friggieri
Since money is not associated anymore with gold or other precious metals it has lost most of its value according to the latest Forex indicators. In the past if a government needed money they would require to have equivalent gold value or other precious metals that would back-up the money being printed.
So what is the difference now? If a Government requires money they would just print loads of paper notes and get these money notes into the economy for an economic boost. This would have not been possible at all at the time. Did you ever take note of how much is the actual money worth? What if your EUR 100 note in your wallet or your USD 100 note just the same would cost the government or your country 110% plus to get it in your hands. Amazed huh? Yes, money can cost more than its face value for the governments that circulate it and the difference in the price paid to the price as a face value of the note will go towards inflation. Yes inflation. This is how our economic climate gets worse in a moment, this is how your country can lose its monetary value and its population savings are seen shrinking within a moment.
Forex Trading and The Cost of Our Money Notes
But you can tell me at this point, what is the relationship between trading and the cost of our money notes? Well there is a direct relationship. Medium term to long term price movements of the currency pair. Although some currencies can be seen as in crisis and down under with no positive outlook soon to simply find out that this might be true according to some charts and Forex indicators, but only for the short term strategist this would make sense. The medium term to longer term strategist would know that when a price crashes it would still go up sooner or later as it cannot remain that low as it would harm the economic climate of the giants. Retracements and volatile price movements can affect the price to go negative heavily and even for a few weeks or possibly months but that is simply like a break, it will head back top track soon! This can be seen in all Forex indicators.
This article also relates to trends and support and resistance points when trading as it takes into consideration the same principle of price volatility but would come back to where it started sooner than you can think and without notice of course, that is the pipping time window in order to collect loads of pips and money from these moves. So watch out the economic Forex indicators people in your trading plan.
By: Adrian Friggieri
Since money is not associated anymore with gold or other precious metals it has lost most of its value according to the latest Forex indicators. In the past if a government needed money they would require to have equivalent gold value or other precious metals that would back-up the money being printed.
So what is the difference now? If a Government requires money they would just print loads of paper notes and get these money notes into the economy for an economic boost. This would have not been possible at all at the time. Did you ever take note of how much is the actual money worth? What if your EUR 100 note in your wallet or your USD 100 note just the same would cost the government or your country 110% plus to get it in your hands. Amazed huh? Yes, money can cost more than its face value for the governments that circulate it and the difference in the price paid to the price as a face value of the note will go towards inflation. Yes inflation. This is how our economic climate gets worse in a moment, this is how your country can lose its monetary value and its population savings are seen shrinking within a moment.
Forex Trading and The Cost of Our Money Notes
But you can tell me at this point, what is the relationship between trading and the cost of our money notes? Well there is a direct relationship. Medium term to long term price movements of the currency pair. Although some currencies can be seen as in crisis and down under with no positive outlook soon to simply find out that this might be true according to some charts and Forex indicators, but only for the short term strategist this would make sense. The medium term to longer term strategist would know that when a price crashes it would still go up sooner or later as it cannot remain that low as it would harm the economic climate of the giants. Retracements and volatile price movements can affect the price to go negative heavily and even for a few weeks or possibly months but that is simply like a break, it will head back top track soon! This can be seen in all Forex indicators.
This article also relates to trends and support and resistance points when trading as it takes into consideration the same principle of price volatility but would come back to where it started sooner than you can think and without notice of course, that is the pipping time window in order to collect loads of pips and money from these moves. So watch out the economic Forex indicators people in your trading plan.
luni, 16 august 2010
TheForexArticles.com Will Return In September
I'm off to Thailand for 6 weeks tomorrow so that means that there will be no more blog posts or email messages until September. I was going to try and organize some guest posts from other bloggers, but I never got round to doing it, so I'm sorry about that.In the meantime you might want to check out my main 4 hour trading strategy by filling in the form to the right, if you haven't already done so. Plus if you're new to forex trading, you might wish to check out Bill Poulos' very affordable forex course, which will teach you all the basics of forex trading, and will also provide you with a simple trading strategy that you can use to trade the markets.
Anyway that's about it from me. I'll talk to you again in September.
Anyway that's about it from me. I'll talk to you again in September.
sâmbătă, 10 iulie 2010
Forex Money Exeptions
Daily Forex Analysis – March 09, 2010
March 9th, 2010 by Forex
Investors confidence rouse more then expected, the published result was -7.5
In Germany the industrial production increased, but it was still with 0.5% lower then the 1.1% result expected
EUR
Fundamental Analysis
Today for the euro will be published the trade bance of France, which is expected to have a slightly increase from -4.3 bilions of euro to -3.9 bilions.
Daily Forex Analysis – March 08, 2010
March 8th, 2010 by Forex
Last week was one with a lot of price movement mostly because of the important economic data published.
Both in Europe and USA, unemployment rate fell to 9.9% and 9.7%. The interest rates for both euro and British pound where unchanged from the lowest levels in history, 1% and 0.5%.
Eur/Usd
Why forex brokers offer Leverage
March 5th, 2010 by Forex
Forex brokers earn from the spread, the difference between the buying and the selling price of a currency pair at one moment. They are happy to offer leverage because the higher the volume of a trade is the valuable are the pips in the spread.
When and how to start trading?
March 4th, 2010 by Forex
Before you start trading the forex market, there are a couple of questions that need to be answered. How to chose a boker? Should I use a demo account? What do I need to know before I make my first trade? Let’s talk about this things.
1. Choosing a broker
This is a personal decision for every trader. Some forex brokers offer different options and different benefits that can be very attractive for some traders while at the same time other traders may consider them useless. It is very important that you compare and analyze carefully every forex brokers options and to chose the one that you feel comfortable with.
Three Frequent Mistakes
February 24th, 2010 by Forex
When you start trading on the forex market there are a couple of mistakes that you must avoid. Below are the most common mistakes that occur in forex trading.
1. To much leverage
One of the best advantages of the forex trading is the posibility of using the leverage. One of the most common mistake the trades do is that they use to much leverage. Using to much leverage means that you make a big transaction when you have to little money in the account. If the market moves a little against your position that could result in a big loss for you.
Forex Scams
February 21st, 2010 by Forex
Popular Forex Scams
Forex scams can have many forms. Some of them can seem very convincing and legal. They all have in common the fact the traders are looking for that magic formula that can make them profits. Unfortunately, there are no easy answers. Below is a short list of the most common forex scams.
1. Signals sellers
What is Forex?
February 20th, 2010 by Forex
Forex or FX is the acronym for foreign exchange. Different countries have different currencies. For example, we have in Europe the euro, in the United States the American Dollar. A forex trade or transaction would be a simultaneous buying of the euro and selling the US dollar. This trade is also called going long on the euro versus the dollar. But this transaction dosen’t physically take place until the end of it (when you cash in the profits / accept the losses or you lose all your investment).
How dose it work?
Forex or FX is the acronym for foreign exchange. Different countries have different currencies. For example, we have in Europe the euro, in the United States the American Dollar. A forex trade or transaction would be a simultaneous buying of the euro and selling the US dollar. This trade is also called going long on the euro versus the dollar. But this transaction dosen’t physically take place until the end of it (when you cash in the profits / accept the losses or you lose all your investment).
How dose it work?
The forex (fx) trading is done usually through a broker or a market maker. As a trader in the forex market, you can choose a currency that you consider it will appreciate in value and make a deal accordingly. For example, if you would have bought 1,000 Euro in may 2009 it would have cost you 1,300 US Dollars. If at the end of septmber 2009 you would have sold the 1,000 Euro, you wuold have received 1,450 USD, and made a profit of 150 US $.
Transaction in the forex market can be made through a broker or a market maker. The orders can be made in just a few clicks, and the the broker places the order in the interbank market to cover your position. All this take place in just a few seconds.
What are the benefits of trading in the forex market?
There are five things that offer unique features of the forex trading.
1. The forex market is open 24/7
Because the forex market is an international market, trades are made every second as long as there is an open market in the world. Trading start with the Australia session, on monday, around 9 AM local time, and ends when the New York market closes, on friday evening.
2. High liquidity
The liquidity is the ability of a financial instrument to be converted into cash quickly and without losing form the price. In forex it means that you can transfer large amounts of money to and from a currency with minimum loss.
3. Low trading costs
In forex, usually the price of a transaction is included in the price. And it is called spread. The spread is the difference between the buying and the selling price in one moment.
4. Leverage
Forex brokers offer to the traders the posibility of using leverage. The leverage is the ability to trade a bigger amount of money then what a trader has in his account. If you are trading with a 50:1 leverage, you could trade on the forex market 50 $ for every 1 $ in your account. This mean that you can control a trade of 50,000 usd using just 1,000 usd.
5. Profit from price fluctuations
The forex market dosen’t have restrictions on the direction of the trade. This means that if you consider that a currency will increase in value you can buy it. Similarly, if you think if will decrease in value you can sell it.
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