Forex Is Foreign Exchange

It may come as a shock to the investment rookie, but Forex is the largest market in the world. Forex is an abbreviated form of the term Foreign Exchange, or simply currency. These terms refer to the monetary value of one country’s money value (as measured by the country’s largest single-value denomination) and is usually measured in comparison to the unit of currency used by the country in which the investor is a citizen.

The measure by which Forex is considered the largest market is in terms of cash value traded, and it is used by every type of investment imaginable, from individuals (who use brokers or banks) to governments to international banking firms. Forex is extremely popular due to its extreme liquidity and its time capacity (with three large stock markets open day long during the week, it is possible to exchange foreign currency at every hour of the day). Liquidity is a term that is short for market liquidity, which refers to the ability to quickly buy or sell without causing a dramatic fluctuation in price. As currency for countries is determined mostly by internal (domestic) factors rather than external ones, Forex is not subject to the fluxes caused by a panicked sell-off.

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Опубліковано в Forex Trading EA, електронні книги, Відео, Книги | Позначено тегами , , , , , | Залишити коментар

Risk Management in Forex Trading

Most of the times, it doesn’t matter which platform you use for trading and how experienced you are with the stock market. If you have not taken proper risk management steps to minimize loss, you have not prepared yourself for the worst. In forex trading, it is quite difficult to predict which way the wind will blow at a particular time. Therefore, risk management becomes quite important. As a forex trader you must follow these simple steps to take calculated risks so that you don’t face an abrupt end to your forex dealings.

  • Don’t spend all the capital together- Investing only 0.5 percent to 3 percent of your total capital at one time. This will create a safety net of funds for you and you will be able to save your funds for a rainy day.
  • Distribute- Do not put all your capital on a single currency or a single trade. If you have to keep $10000 at stake for USD-EUR forex in a 1 minute time frame, you have higher chances of losing all your money in a matter of 60 seconds. This should never be your case. Never spend more than 10 or 15 percent of your capital in one currency.
  • Multiple Time Frame Trading- This is one way that you can minimize your risk. Just the way you should not spend it all on one currency, similarly you should not spend it all on a single time frame. A good way can be to spend 15 percent on small time frame, 35 percent on the medium time frame and 50 percent on a longer time frame as you get more chances to predict the flow. The combination can be as per your choice and depend on the kind of trading you specialize in.
  • Risk Rate- Never opt for a trade where the risk rate is more than 5 percent. In fact, keeping it as low as 2 percent is quite beneficial. While higher risk opportunities may sound lucrative, you must only go for a careful analysis of the actual trends in the market and then put your money at stake.
  • Stop Losses- When you create a stop loss for the investment you have made, you ensure that you don’t suffer sudden or unprecedented heavy losses. Stop losses minimize the chances of an uninvited death in the market.
Опубліковано в Психологія Форекс | Позначено тегами | Залишити коментар

Forex Multiple Time Frame Trading

While trading in forex, the time frame required for trading can become an issue for most of the new traders. What usually happens is that new traders generally don’t like to wait for several hours and check the time frames then. They are mostly inexperience and they want to make quick money. З іншого боку, there are many traders who like to keep it very old school and conservative and chose for long time frames like 1 hour or even 4 годин. This gives them accurate readings of the currency they want to trade in and hence it becomes possible for them to do exactly what they wish to.

Однак, for each kind of trader, whether big or small, new or experienced, the first priority should be to trade in multiple time frames. When this is done, you get a safety net to land on. What specific time frame you chose depends on how much you really want to make and what are your long terms goals in the trading market. It is always good to keep shifting your time frames and give enough gaps in between the time frames so that the currencies can shift themselves.

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Опубліковано в Торгова система Forex | Позначено тегами , | Залишити коментар

How To Develop Your Forex Trading Systems?

There are diverse techniques and strategies in the Forex trading. Some traders offers it for free online, other ideas on Forex trading systems can also be purchased, however, the knowledge on Forex trading is widely shared, to be successful one is only required to be dedicated and well-experienced.

Forex trading is not only about making money, most of the traders in this industry consider it a great passion. In this form of trading expect continuous opportunities for developing your trading skills and learning and increasing your financial success. By the time you develop your forex trading systems, you will achieve entry points ahead of schedule, exit points to protect your maximum profits and avoid bogus entry and exit indications. If you achieve these things, definitely you have a very cost-effective trading system.

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Опубліковано в Торгова система Forex | Позначено тегами , , , , , , | Залишити коментар

What Is an Automated Forex Trading Robot?

Purchase and sell orders, which are automatically set off based on a foreign exchange market core program. This is a strategy on trading which is called as forex auto trading. This strategy has two major types. The automated forex trading robot and the signal-based forex auto trading.

In this article, we will discuss about automated forex trading robot, which has the same features as black-box or algorithmic trading. In this type of auto trading, an algorithm in a computer decides on the characteristic of the order, which includes price, timing or quantity and sets off the order in an automatic manner. Although users are allowed to interfere through altering technical parameters of the program, however, the program manages the other controls.

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Опубліковано в Програмне забезпечення для торгівлі Forex | Позначено тегами , , , , | Залишити коментар

How To Calculate Forex Pivot Points

Forex trading is a risky and high paced way to participate in the financial market, and those who are into it rely mostly on the price charts of currencies for determining the time to buy and sell. Forex pivot points are one of those several chart driven strategies that most of the traders use to make predictions on the future turning point in exchange rates. These are called as pivot points because at these price level prices may reverse or pivot during a trading day.

These points are calculated mathematically based on the low, high and closing prices of the previous day. They are calculated as daily, weekly or monthly pivots, it provides the significant points of resistance or support that you can use for good continuation or reversal setups as well as profit targets or stop loss positioning. Lots of traders make use of the Forex pivot points in their daily trading, and it has proved itself highly effective. Most popular pivot points used by the traders are; Floor, Woodies, Camarilla, and Tom Demark’s pivots. Here we are going to explain you to calculate the pivot points, knowing it will certainly help you to get more acquainted with generic technical analysis. Продовжити читання →

Опубліковано в Форекс технічний & Фундаментальний аналіз | Позначено тегами , , , , | Залишити коментар

Why You Need Stop Loss In Forex Trading?

The truth is Forex trading sometimes moves wherever it wants to that is why we need to use the Forex stop loss options at times when you can see threats on a situation that might drain your trades. We cannot control its reins, making the business really challenging. Things may change in just a blink of the eye similar to major economic events or changes in currency prices. Таким чином, it is not unusual to find one in a very problematic position when the market moves against his favor; however, you may find ways how to control your moves in order not to be caught in the web of this situation.

One way is choosing Forex stop loss. How do you go about it? Actually, it is as simple as cutting your loss immediately or go with the flow and cross your fingers in hopes that the market will turn to your favor in the days to come. You have to keep surviving because, as you ride with the market route daily, you will gain more experience and learning which will help you succeed on this venture.

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Опубліковано в Forex Trading ABC | Позначено тегами , , , , | Залишити коментар

Що таке регулярна дивергенція?

Divergence is a methodological price indicator that transpires when a live quote and the oscillator that an FX trader is comparing goes in an alternate direction. When it comes to forex trading, divergence signals occur with upcoming changes in trend be it forwards or backwards. When a trader keeps an eagle eye on the divergence trend, it serves as an indication that a trading opportunity beckons.

When divergence trading is utilized properly, it can be a means of consistent profiting for a trader. It is a minimal risk to sell close to the top and close to the bottom because the danger is far lesser and sometimes can even be considered to be at the barest minimum.

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Опубліковано в Форекс технічний & Фундаментальний аналіз | Позначено тегами , , , , , , , | Залишити коментар

Що таке прихована дивергенція?

Дивергенція - це технічний індикатор ціни, який виникає, коли жива котирування та осцилятор, які порівнюються трейдером, рухаються в різних напрямках.. Сигнали дивергенції означають зміну наступних тенденцій. Вони можуть бути як прогресивними, так і регресивними. Розбіжності важливі, тому що якщо ви їх правильно спостерігаєте, Ви знаєте, коли можна торгувати прибутково.

Оскільки на дивергенцію впливають цінова дія та індикатори осцилятора, такі як RSI, CCI або MACD, Ви знаєте, коли ринок збирається змінити напрямок, і позиціонуйте себе, щоб отримати прибуток відповідно. Основною перевагою використання дивергенцій є те, що вони можуть здійснюватися як у верхній, так і в нижній частині, де вони привертають мінімальний ризик. Це означає, що їм комфортно на ведмежому або бичачому ринку. Основна мета трейдерів дивергенції полягає в тому, щоб визначити на графіках вищі максимуми або нижчі мінімуми.. Це цінна стратегія, яка допоможе вам помітити тенденцію, що спадає або насувається.

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Опубліковано в Форекс технічний & Фундаментальний аналіз | Позначено тегами , , , , , , , , | Залишити коментар

Що таке форекс Голова і плечі?

Трейдери та інвестори Forex використовують багато різних методів та інструментів під час торгівлі. Це включає шаблони діаграм, програмне забезпечення та інше. Для цілей цієї статті, ми розглянемо модель діаграми форекс голова і плечі. Це важлива техніка, про яку повинен знати кожен трейдер. Якщо ви розумієте, як ефективно використовувати цю техніку, ви можете отримати великий прибуток від торгівлі на форекс.

Валютні рухи на ринках Форекс зазвичай визначаються та стають зрозумілими за допомогою діаграм і різних типів торгового програмного забезпечення. Після збору торгової інформації, ви можете використовувати певні шаблони для аналізу та розуміння даних. Багато успішних трейдерів використовують зібрану інформацію, щоб майстерно планувати свої кроки та приймати рішення на основі даних графіків на торгових діаграмах. При торгівлі, ви б вибрали діаграми на основі їх значення для того, що спричиняє існуючі валютні тренди. Як правило, моделі розвороту з’являються, коли тренд наближається до кінцевої точки.

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Опубліковано в Форекс технічний & Фундаментальний аналіз | Позначено тегами , , , | Залишити коментар