If you are looking for some Forex trading advice, to get you on the road to success then you should use this simple strategy the pros use to make huge gains; while incredibly simple and logical most novice traders ignore it but don't let that worry you - most traders lose! Let's look at how to make money the way the pros do.
It's a fact that all big bullish trends start and continue in the same way and you can see it on any currency chart - they start by breaking out to new chart highs and the trend continues in this way. So a great, high odds way to get in on all the big trends and profits is to buy these breakouts.
It's simple and logical, so why don't most traders do this?
They don't buy breakouts and this is due to a myth they believe which is you can predict FX markets in advance and buy exact lows and sell exact highs. Of course this is nonsense and prediction is really only hoping or guessing but traders continually try this method and lose. In fact, these traders often see a breakout and see a new trend emerging but do they buy the break? Of course not! They want prices to pullback so they can get in at a better price but these breakouts carry on and the trader waits in vain.
So how do you buy breakouts?
The answer is not every breakout continues so you need to be selective and only buy levels that have been firm in the past and other traders consider important, when the level gives way, stops are hit and new technical buying comes in and a big trend develops.
When trading breakouts to new highs, the more times the level has held in the past before the break the better. I like at least 6 - 8 tests and it's even better, if some of these tests are weeks or months apart in terms of time.
With breakout trading, you don't catch the exact bottom of the move but as that's not possible anyway there is no need to worry about that; what you focus on is the odds are on your side and the huge profits that are ahead of you!
Forex trading is all about making money and the Forex advice in this article is to buy breakouts and if you do, you will get in on all the big trends with the odds on your side and make huge gains and that's what all FX traders want to achieve.
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Article Source: http://EzineArticles.com/?expert=Kelly_Price
Tuesday, December 8, 2009
The Basics of Online Forex Trading
Technological advances have brought forth many platforms to trade Forex online. The number of people who use these platforms is increasing everyday. So are the avenues or software that aids this increase. There are many software vendors who extend online trading platforms for traders.
Basic Requirements
There are certain things that should be kept in mind while deciding on a platform to trade Forex online. The first and foremost thing to check out is whether they offer demo trading. This is very important since if you are a novice then trading on paper for free would teach you invaluable lessons for your trading career.
The next concern is access to currency pairs. The currency market carries on trade with different currencies from all over the world. Most software used to trade Forex online does not have access to all the markets. Thus you need to purchase a software that would give you access to currency pairs that you want to trade in. If you are planning to initiate Forex trading with USD or EUR, then almost all software available in market would provide you access. More exotic crosses or pairs would require more effort in finding a compatible platform. A platform offering free demo as well as access to preferable currency pairs would be ideal while beginning to trade Forex online. Once you have found it, you are all set to begin trading.
Basic Steps
Forex is the largest trading market in the world. The daily turnover in a Forex market is in trillions. The best way to approach trading here is to consult a margin broker. It would be wise to pick a pair and learn to trade in it and continue to do so until you are thorough with the nuances of trading in the chosen pair. Try to analyze the market technically using the available charting packages. Once you feel that you know the workings of the market you can begin with a micro or mini account.
Use only 20% of your principal for trading. Since prices of currency pairs in market are very volatile you should be prepared to cover the losses if any. Since not having enough money to cover downside in event of a loss you would be automatically removed from your order. Be patient and keep your positions open long enough to rake in profit.
Platform software also helps in analyzing risks and losses and help in making judgments that would result in consistent profitable trades. Your moves should be based on strategy and knowledge. Money management is important and detailed study is required for practical and profitable application.
Forex trading is a business involving high risks but the gains involved are also high due to available and allowed leverage. Thus in return for a small investment high returns are not impossible. The trick that should be used to trade Forex online is to trade only what you can afford to lose and this way stay afloat for longer.
The foreign exchange or forex market concerns trading in foreign currencies. It is a high risk market and forex trading online can allow you to negate the risks by acting quick to maximize your return on investment.
Article Source: http://EzineArticles.com/?expert=Alen_Cauller
Basic Requirements
There are certain things that should be kept in mind while deciding on a platform to trade Forex online. The first and foremost thing to check out is whether they offer demo trading. This is very important since if you are a novice then trading on paper for free would teach you invaluable lessons for your trading career.
The next concern is access to currency pairs. The currency market carries on trade with different currencies from all over the world. Most software used to trade Forex online does not have access to all the markets. Thus you need to purchase a software that would give you access to currency pairs that you want to trade in. If you are planning to initiate Forex trading with USD or EUR, then almost all software available in market would provide you access. More exotic crosses or pairs would require more effort in finding a compatible platform. A platform offering free demo as well as access to preferable currency pairs would be ideal while beginning to trade Forex online. Once you have found it, you are all set to begin trading.
Basic Steps
Forex is the largest trading market in the world. The daily turnover in a Forex market is in trillions. The best way to approach trading here is to consult a margin broker. It would be wise to pick a pair and learn to trade in it and continue to do so until you are thorough with the nuances of trading in the chosen pair. Try to analyze the market technically using the available charting packages. Once you feel that you know the workings of the market you can begin with a micro or mini account.
Use only 20% of your principal for trading. Since prices of currency pairs in market are very volatile you should be prepared to cover the losses if any. Since not having enough money to cover downside in event of a loss you would be automatically removed from your order. Be patient and keep your positions open long enough to rake in profit.
Platform software also helps in analyzing risks and losses and help in making judgments that would result in consistent profitable trades. Your moves should be based on strategy and knowledge. Money management is important and detailed study is required for practical and profitable application.
Forex trading is a business involving high risks but the gains involved are also high due to available and allowed leverage. Thus in return for a small investment high returns are not impossible. The trick that should be used to trade Forex online is to trade only what you can afford to lose and this way stay afloat for longer.
The foreign exchange or forex market concerns trading in foreign currencies. It is a high risk market and forex trading online can allow you to negate the risks by acting quick to maximize your return on investment.
Article Source: http://EzineArticles.com/?expert=Alen_Cauller
5 Ways to Reduce Forex Trading Risk
When I asked a successful trader one time how he managed to make so much money on Forex, he smiled and said to me: "I just lose a lot less than the rest of you." This was the first time I realized that the real key to achieving a long term success in Forex isn't winning more trades, but losing fewer and cutting your losses to a bare minimum.
Since it's impossible to avoid losing entirely (unless you have a crystal ball lying around) you need to find way to reduce your risk as much as possible. This is a key to long term trading success.
A lower risk means less losing trades and smaller losses when they do occur, as they are bound to occur for any trader on the planet. Here are some tips to help you lower your risk:
1. Know how much you're risking - Is this something you even think about? Do you know how much you're risking on each trade? What's the highest possible amount that you'll lose if your trade turns sour. Most traders don't even think about this and it leads to bad decisions, bad stop loss prices, and massive losses.
2. Place a stop, for heaven's sake - If you're trading without a Stop Loss, then I should take you on a plane and throw you off the side... without a parachute. It's basically the same thing. Trading without a stop is madness. Yes, you might get away with it for a while, but sooner or later, there will come that one aching loss which will wipe your account right off. Trust me, it's coming like a tsunami and it's heading your way.
3. Size up each position - You shouldn't place too much potential risk on one position. Each trade you open should be allowed to lose, at the very most, 2% of your account. You control this with your leverage, lot size, and your Stop Loss.
4. Test any new method that you buy, hear about, or otherwise acquire on a demo account. Make sure that you know how it works. Then, begin trading small amounts with it. Again, see that it works for you and only then begin trading big amounts with it.
5. Leverage cuts both ways - I know that placing a trade with a 200:1 leverage seems like a super-duper thing to do. But leverage is a double edged sword: if you win you win big. If you lose, you lose big. Reduce your Forex trading risk by keeping your leverage to a modest level. 10:1 is the most I'd go for, and even that only in rare cases when I'm super sure of winning.
Above all, realize that Forex is a long term business, not some short lived experiment. Have patience, play it smart, and you'll have every chance to succeed.
Click Download Free Forex eBook to get a free Forex eBook filled with killer tips.
For the best Forex news and updates, go to Forex News Updates And Tips
John Drummond works from home. He writes often on business, trading, and finances.
Article Source: http://EzineArticles.com/?expert=John_J._Drummond
Since it's impossible to avoid losing entirely (unless you have a crystal ball lying around) you need to find way to reduce your risk as much as possible. This is a key to long term trading success.
A lower risk means less losing trades and smaller losses when they do occur, as they are bound to occur for any trader on the planet. Here are some tips to help you lower your risk:
1. Know how much you're risking - Is this something you even think about? Do you know how much you're risking on each trade? What's the highest possible amount that you'll lose if your trade turns sour. Most traders don't even think about this and it leads to bad decisions, bad stop loss prices, and massive losses.
2. Place a stop, for heaven's sake - If you're trading without a Stop Loss, then I should take you on a plane and throw you off the side... without a parachute. It's basically the same thing. Trading without a stop is madness. Yes, you might get away with it for a while, but sooner or later, there will come that one aching loss which will wipe your account right off. Trust me, it's coming like a tsunami and it's heading your way.
3. Size up each position - You shouldn't place too much potential risk on one position. Each trade you open should be allowed to lose, at the very most, 2% of your account. You control this with your leverage, lot size, and your Stop Loss.
4. Test any new method that you buy, hear about, or otherwise acquire on a demo account. Make sure that you know how it works. Then, begin trading small amounts with it. Again, see that it works for you and only then begin trading big amounts with it.
5. Leverage cuts both ways - I know that placing a trade with a 200:1 leverage seems like a super-duper thing to do. But leverage is a double edged sword: if you win you win big. If you lose, you lose big. Reduce your Forex trading risk by keeping your leverage to a modest level. 10:1 is the most I'd go for, and even that only in rare cases when I'm super sure of winning.
Above all, realize that Forex is a long term business, not some short lived experiment. Have patience, play it smart, and you'll have every chance to succeed.
Click Download Free Forex eBook to get a free Forex eBook filled with killer tips.
For the best Forex news and updates, go to Forex News Updates And Tips
John Drummond works from home. He writes often on business, trading, and finances.
Article Source: http://EzineArticles.com/?expert=John_J._Drummond
Learning Online - Forex Trading For Beginners
When you are interested to trade in forex trading, you must first learn to understand the terminologies and strategies of trading. You can find this information from Internet. Many web-based companies provide online tutorials around the forex trading. Through this tutorial, you will get basic knowledge to get the trading started.
Once you have learnt and understood the tutorial theories, there are some tips that you must keep in mind when you jump in the real time online forex trading. The number one rule that you cannot forget is placing stop loss orders. By placing stop loss, you can limit the possible loss during the trading and you can even prevent it.
The other important thing to keep in mind in doing online forex trading is placing the take profit orders. You do this the best at the same time you place the stop loss. In order to set such order, you can use OCO order function. Most of trading providers must have this function, so that you can easily use it. Take profit and stop loss orders are sharing similar bases. By placing take profit orders, you can maximize the profit that you can get, while by placing stop lose orders, you can minimize the amount of money that you may lose.
As a beginner, you must have a positive risk/reward ratio. You should not merely focus on how much profit you want to get, but you should also consider how much money that you can afford to lose. When you have such mindset, it is likely that you get success in online trading.
Another thing to keep in mind for every beginner is to understand that online trading is an instant way to be rich. It takes patience and lot of hard works in order to get success. Besides that, discipline is another behavior that you must possess to make profit from online forex trading. The learning is a continuous process along the way. You must be willing to give your very best efforts in doing the research and study in this field. When you learn more, you will also have more power to get the success.
Widen your knowledge on online forex trading at http://forextradingtipsblog.com - Free information and impartial advice.
Article Source: http://EzineArticles.com/?expert=Craig_Thornburrow
Once you have learnt and understood the tutorial theories, there are some tips that you must keep in mind when you jump in the real time online forex trading. The number one rule that you cannot forget is placing stop loss orders. By placing stop loss, you can limit the possible loss during the trading and you can even prevent it.
The other important thing to keep in mind in doing online forex trading is placing the take profit orders. You do this the best at the same time you place the stop loss. In order to set such order, you can use OCO order function. Most of trading providers must have this function, so that you can easily use it. Take profit and stop loss orders are sharing similar bases. By placing take profit orders, you can maximize the profit that you can get, while by placing stop lose orders, you can minimize the amount of money that you may lose.
As a beginner, you must have a positive risk/reward ratio. You should not merely focus on how much profit you want to get, but you should also consider how much money that you can afford to lose. When you have such mindset, it is likely that you get success in online trading.
Another thing to keep in mind for every beginner is to understand that online trading is an instant way to be rich. It takes patience and lot of hard works in order to get success. Besides that, discipline is another behavior that you must possess to make profit from online forex trading. The learning is a continuous process along the way. You must be willing to give your very best efforts in doing the research and study in this field. When you learn more, you will also have more power to get the success.
Widen your knowledge on online forex trading at http://forextradingtipsblog.com - Free information and impartial advice.
Article Source: http://EzineArticles.com/?expert=Craig_Thornburrow
Making Money With an Automated Forex Trading System
Besides trading stocks, trading currency has been gaining popularity these days. The basic method and procedure between these two are not too different. Further, you may get some interesting benefits from trading currency. One easy way to help you trading currency is by using automated forex trading system.
The key to success in making money might not always necessarily about work hard only, but work smarter is another factor to ensure you achieving the goal. If you want to know a smart way in making money from currency trading, you should keep reading.
The smart way referred to the currency trading is by utilizing automated forex trading system. What system is it? It is actually a software specially designed to predict the forex trading movements, either rising or falling. By knowing this, it is expected that as a trader, you can make profitable decision accordingly. Not only giving prediction, an automated trading system can also do the trading for you. When you are into this method, you only need to start the program and generate the money from forex trading. This automated program can continuously work for you during the day based on the news establishments.
There are many automated systems available, but they can be significantly different in use and advantage. People have been testing these various systems to get knowledge on how great the system offered. The best system must have been passed two tests namely back tests and live trades in order to work well for you. If they only passed the back tests only, they are not guaranteed to work well in live trades. Therefore, you need to find an automated forex trading system that has passed both tests.
The beginner traders can best experience the most advantage of utilizing a trading system. They do not know much about the trading knowledge yet, but they can generate some profits because the automated software will do the whole works for them. All they need to do is installing the software that only takes less than 10 minutes. After that, this system will automatically generate profits for you. It can be as easy as that.
With an automated forex trading system, you do not need to predict where the market trend will move, because the system will automatically take much of this guesswork. To start the trading, you need to provide as much as $50 into your trading account. Once the account is ready, you can start accumulating the profits from the automated system. When you generate profits, you can add your account up. In return, you can generate more profits with higher amount of money in your account. Many people get success in forex trading with this cycle.
If you are interested to involve in a forex trading, one easy way to help you jump in the field is by utilizing an automated forex trading system. Even though you have the least knowledge or experience in trading, you still have a great chance of generating profits by utilizing such automated forex trading system.
Widen your knowledge on penny stocks and get some free tips at http://buypennystockstoday.com - Free information and impartial advice.
Article Source: http://EzineArticles.com/?expert=Craig_Thornburrow
The key to success in making money might not always necessarily about work hard only, but work smarter is another factor to ensure you achieving the goal. If you want to know a smart way in making money from currency trading, you should keep reading.
The smart way referred to the currency trading is by utilizing automated forex trading system. What system is it? It is actually a software specially designed to predict the forex trading movements, either rising or falling. By knowing this, it is expected that as a trader, you can make profitable decision accordingly. Not only giving prediction, an automated trading system can also do the trading for you. When you are into this method, you only need to start the program and generate the money from forex trading. This automated program can continuously work for you during the day based on the news establishments.
There are many automated systems available, but they can be significantly different in use and advantage. People have been testing these various systems to get knowledge on how great the system offered. The best system must have been passed two tests namely back tests and live trades in order to work well for you. If they only passed the back tests only, they are not guaranteed to work well in live trades. Therefore, you need to find an automated forex trading system that has passed both tests.
The beginner traders can best experience the most advantage of utilizing a trading system. They do not know much about the trading knowledge yet, but they can generate some profits because the automated software will do the whole works for them. All they need to do is installing the software that only takes less than 10 minutes. After that, this system will automatically generate profits for you. It can be as easy as that.
With an automated forex trading system, you do not need to predict where the market trend will move, because the system will automatically take much of this guesswork. To start the trading, you need to provide as much as $50 into your trading account. Once the account is ready, you can start accumulating the profits from the automated system. When you generate profits, you can add your account up. In return, you can generate more profits with higher amount of money in your account. Many people get success in forex trading with this cycle.
If you are interested to involve in a forex trading, one easy way to help you jump in the field is by utilizing an automated forex trading system. Even though you have the least knowledge or experience in trading, you still have a great chance of generating profits by utilizing such automated forex trading system.
Widen your knowledge on penny stocks and get some free tips at http://buypennystockstoday.com - Free information and impartial advice.
Article Source: http://EzineArticles.com/?expert=Craig_Thornburrow
Online Forex Trading - How Honest is Your Online Forex Trading Broker?
For many online forex trading novices, online trading brokers possess experience, wisdom, and knowledge that they don't. So they fall into the trap of following them blindly, regardless of whether they are regulated or not - and in the course of doing so, unknowingly place their money in the hands of some that are unscrupulous and dishonest.
The Wall Street Journal has reported in the past that the average individual foreign-exchange-trading victim loses about $15,000, based on figures quoted by the U.S. Commodity and Futures Trading Commission (CFTC) in Washington D.C. In August 2008, the CFTC was compelled to set up a division specifically to cope with the increasing incidents of online forex trading fraud.
The most common methods of unscrupulous online forex trading activity seem to be those that promise novice forex punters low-risk, high yield returns over the course of only a few weeks, mismanaging 'managed' accounts in order to gain brokerage commissions, and selling software implied to earn an investor high profits.
Traditionally banks have held the responsibility of making sure that their customers understood the risks at hand when delving into the online market, however with more and more individuals having access to non-banking portals online, it is impossible to expect them to be able to do so now. In this way, the risks for online forex trading novices are increased dramatically due to their inexperience.
The good news is that not all online forex trading brokers are the same. There are a number that have achieved very reputable standing and have been rewarded for doing so via various licenses and accreditations which are issued by monitoring bodies. In Cyprus, for example, in the Mediterranean, brokers are regulated by the Cyprus Securities and Exchange Commission (CySec), whose license is awarded only after stringent criteria are adhered to.
When searching for an online forex broker to manage your accounts or to offer advice, it's imperative to check for applicable country licenses and accreditations that can only be gained by brokers doing their due diligence. Online software should be secure and easy-to-use, and any payment schemes verified. Additionally, you should be able to contact your broker easily.
Finally, do not feel that it is neither your place to ask for the status of your accounts nor to see proof of action by your broker.
After all, it is your money.
##
Tadawul FX is an online forex trading broker originally registered under Tadawul FX SA in Switzerland (CH-550-1049025-2). Following the relocation of its main offices to Cyprus, it was registered with number HE231759 under Cyprus law. Tadawul FX is regulated by the MiFID - Markets in Financial Instruments Directive - the standard for honesty and efficiency for investment services located within the EU. Recently, Tadawul FX was awarded its CySec license (103/09) which grants protection in the form of insurance up to €20,000 (approx. US$27,000) per client, in the event their online forex broker defaults or becomes insolvent. For more information, visit http://www.tadawulfx.com
The Wall Street Journal has reported in the past that the average individual foreign-exchange-trading victim loses about $15,000, based on figures quoted by the U.S. Commodity and Futures Trading Commission (CFTC) in Washington D.C. In August 2008, the CFTC was compelled to set up a division specifically to cope with the increasing incidents of online forex trading fraud.
The most common methods of unscrupulous online forex trading activity seem to be those that promise novice forex punters low-risk, high yield returns over the course of only a few weeks, mismanaging 'managed' accounts in order to gain brokerage commissions, and selling software implied to earn an investor high profits.
Traditionally banks have held the responsibility of making sure that their customers understood the risks at hand when delving into the online market, however with more and more individuals having access to non-banking portals online, it is impossible to expect them to be able to do so now. In this way, the risks for online forex trading novices are increased dramatically due to their inexperience.
The good news is that not all online forex trading brokers are the same. There are a number that have achieved very reputable standing and have been rewarded for doing so via various licenses and accreditations which are issued by monitoring bodies. In Cyprus, for example, in the Mediterranean, brokers are regulated by the Cyprus Securities and Exchange Commission (CySec), whose license is awarded only after stringent criteria are adhered to.
When searching for an online forex broker to manage your accounts or to offer advice, it's imperative to check for applicable country licenses and accreditations that can only be gained by brokers doing their due diligence. Online software should be secure and easy-to-use, and any payment schemes verified. Additionally, you should be able to contact your broker easily.
Finally, do not feel that it is neither your place to ask for the status of your accounts nor to see proof of action by your broker.
After all, it is your money.
##
Tadawul FX is an online forex trading broker originally registered under Tadawul FX SA in Switzerland (CH-550-1049025-2). Following the relocation of its main offices to Cyprus, it was registered with number HE231759 under Cyprus law. Tadawul FX is regulated by the MiFID - Markets in Financial Instruments Directive - the standard for honesty and efficiency for investment services located within the EU. Recently, Tadawul FX was awarded its CySec license (103/09) which grants protection in the form of insurance up to €20,000 (approx. US$27,000) per client, in the event their online forex broker defaults or becomes insolvent. For more information, visit http://www.tadawulfx.com
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