Sunday, January 31, 2016

How to Develop Your Trading Skills with a FOREX Micro Account

How to Develop Your Trading Skills with a FOREX Micro Account

FOREX micro account is a type of account that is offered by many different FOREX brokers in the world. With a micro account, you can gain valuable experience in the FOREX market. With a micro account, you are trading a very small lot size. You can actually trade .01 standard lots. When you do this, it means that you are trading $.10 per pip. Here are a few reasons that you may want to consider using a micro account to develop your skills.
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How to Develop Your Trading Skills with a FOREX
Importance of Micro Accounts

  • Develop strategies--When you are trading in the FOREX market, you need to get your strategy down first before you risk significant amounts of money. The same principles will work regardless of whether you are trading .01 lots or 10 lots. Using a mini account first will allow you to work the kinks out before you play with big money.

  • Learn how to use charts--When you start trading for the first time, you need to become very comfortable with currency charts. A FOREX micro account will give you access to trade the charts in real time. 

  • Learn money management--When you trade live with real money, you will be able to practice money management techniques. You should only risk 1% to 3% per trade, and calculating this with pip values takes some practice. 
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Friday, January 29, 2016

Where can I recieve The Best Resources for Learning FOREX Technical Analysis

Where can I recieve The Best Resources for Learning FOREX Technical Analysis  ?
Using FOREX technical analysis is a very popular way for FOREX traders to decide when they want to trade. Technical analysis is basically analyzing the price data from a currency pair and looking for patterns. This can be a very valuable tool and is the most common way to analyze the FOREX market. Although common, it can be very complicated to learn how to do it effectively. Here are a few resources that you can use to learn FOREX technical analysis. 
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FOREX Brokers
Most FOREX brokers offer a wealth of information about technical analysis. They have classes and information that you can read in order to learn how to analyze the technical data properly. They do this for customers but many of them provide the information for free to anyone. 
Forums
Another popular way to get information about technical analysis is from FOREX forums. Many FOREX traders hang out in forums and can provide you with valuable insight into the world of technical analysis. Be careful because you can get bad advice here as quickly as you can get good advice.
FOREX Teachers
Many successful FOREX traders teach their strategies once they have become successful. There are many FOREX gurus out there to choose from so you need to be careful who you choose. 
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How to Use FOREX Technical Analysis

How to Use FOREX Technical Analysis
Using FOREX technical analysis is one of the most popular ways to trade the market. There are two main ways to trade the FOREX market. You can use fundamental analysis or technical analysis. With fundamental analysis, you analyze the underlying currency itself. With technical analysis, you just look at the price data of the currency pair to make your decisions. Here are a few things you need to know about technical analysis and how it is used in the FOREX market. 
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Technical Analysis
People that use technical analysis to trade the FOREX market are always looking at charts. FOREX charts show you a graphic illustration of how price has behaved over a certain period of time. There are a number of popular charting tools out there to use, including the popular MetaTrader platform. With these tools, you can pull up a chart of any currency pair that you want on multiple time frames. You can look at the 1 minute chart and see a detailed representation of what the price has done on a minute-by-minute basis. You can also look at 1 hour charts or even up to a month of price data. 
Patterns
The most important thing that you are looking for with technical analysis is a pattern. You are analyzing charts for hours and hours looking for a similar pattern. Price tends to behave in similar patterns at different points. Therefore, if you can successfully notice a pattern before it happens, you can accurately predict what the price is about to do next. While nothing is foolproof, you can increase your odds of success on a trade greatly by using a good technical analysis strategy. 
Indicators
With all of the FOREX trading platforms out there, there are a number of indicators that you can use on the charts to help you accurately identify circumstances that may be favorable trades. The charting software will come installed with a number of indicators already on it. You can combine them to create your own trading system or you can get help from someone else. There are even several custom indicators that are available on the market to purchase separately. Indicators can help you analyze the market and notify you when a trade opportunity is present. 
Expert Advisors
Another popular use of technical analysis is when traders utilize expert advisors. Expert advisors are a software program that plugs into your trading platform. It analyzes the price data for you and then identifies profitable trade patterns. It will even place the trades for you without any intervention on your part. It will open the trades, place the stop loss and take profit values and then close out the trade for you. 
Vs Fundamental Analysis
Those that use fundamental analysis in FOREX play close attention to the news. They watch for important events that could change the price of the currency pair. Those that believe in true technical analysis believe the price of the currency pair is all you need. Therefore, a balanced approach, with a little technical and fundamental analysis, is usually the best way to go.
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Tuesday, January 26, 2016

4 Most Important FOREX Indicators

4 Most  Important FOREX Indicators
In the world of FOREX trading there are a number of important FOREX indicators that traders use to identify profitable trades. With both technical and fundamental analysis, there are indicators that you can look to in order to predict where price is heading. These indicators are based on historical data and experience. Mastering several FOREX indicators can help you have a successful career in the FOREX market. Here are a few of the more popular FOREX indicators that are available to traders. 
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1. Moving Average
The moving average is a way to look at what price has been doing on average over a certain period of time. Depending on which time frame you select, it will average all of the prices that the currency pair has closed at on that frame. Therefore, when you put it on your chart, it will look like a wavy line that loosely follows the price. There are a few different kinds of moving averages and by looking at them, you can generally help determine which way the overall trend is moving. 
2. Stochastic Oscillator 
The Stochastic oscillator is a unique indicator that you can put at the bottom of a trading chart. This has a line that goes up and down on the chart in a wavy fashion. It helps you determine where action is occurring and whether a currency is overbought or oversold. You can use it in conjunction with other indicators to determine when a move is likely to be made in a certain direction. 
3. News Reports
Another indicator that you will want to pay attention to is economic news reports. This is part of the fundamental analysis of FOREX trading, but it can not be ignored by anyone. The jumps in price that come directly around a news release can be huge. Therefore, if you do not pay attention to these as an indicator, you can lose your investment dollars quickly. Watch the sites that broadcast upcoming news releases and plan your trading around them. 
4. Relative Strength Index
The relative strength index or RSI is a very popular FOREX indicator that you can setup on your charts to help you decide when to trade. When you set this indicator up on your chart, you will see a scale of 0 to 100. It will also help you determine whether a currency is overbought or oversold. If the number represented on the chart is less than 30, it is considered under-bought. This could represent an opportunity to make a buy trade if your other indicators match up. If the number on the RSI is at 70 or above, it is considered overbought. This could tell you that it is a good time to sell the currency pair. 
Using Indicators
There are many more indicators that you could potentially use. Regardless of which ones you choose to put into your trading style, you could profit from all of them. You also need to make sure that you do not use too many indicators and confuse yourself. Keep your strategy simple, stay up to date and make reasonable choices to stay on the winning side of any FOREX trade.
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Monday, January 25, 2016

Using Signal Providers or Indicators When we trade forex?

Using Signal Providers or Indicators When we trade forex?
Using FOREX alerts is a great way to keep up with the fast-paced FOREX market. When you want to successfully trade in the FOREX market, you have to be ready at a moment's notice. Since the market is open 24 hours a day, you never know when a trade opportunity is going to present itself. Therefore, using some means to alert you when a potential trade is forming can save you considerable amounts of time. 
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Signal Providers
There are a number of signal providers out there that will do all of the chart analyzing for you. When a trade is coming up, they will alert you of it in a variety of different ways. They can send you an email, text message, or possibly even an instant message. This allows you to be away from the computer and then quickly get back once you get the alert. You will not miss potentially profitable trades as you would normally.
Indicators
Another way to alert yourself of possible trades is to set up an alert system yourself. If you trade with the Metatrader platform, you can actually set it up to send you an email or text message when an alert pops up. This will allow you to send yourself alerts on your particular trading strategy. 
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Sunday, January 24, 2016

What is The Benefits of Managed FOREX Trading

What is The Benefits of Managed FOREX Trading

With managed FOREX trading you can take potentially make a great return on your investment. Managed FOREX trading is when you invest your money with an experienced trader, or group of traders, to trade in the FOREX market. They take your money, put it into a pool of funds and then use that money to invest in the FOREX market. This type of trading can present you with several benefits as a trader. Here are a few benefits of managed FOREX trading that you will want to consider. 
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Benefits
  • Hands off- One of the great things about managed FOREX trading is that you do not have to spend a lot of time trading. You simply invest your money at the beginning with the managed fund and they take care of the rest. They trade the money in the market and they grow your deposit. You do not have to spend hours upon hours in front of the computer screen watching charts. You just give them your money and let them do it for you.
  • Performance- Another great aspect of going with managed FOREX trading is that it can provide you with a phenomenal performance for your investment. The kind of returns that you can get from good FOREX trading is unlike anything else in the world. You can make much more with FOREX as compared to stocks, bonds or mutual funds. The returns that you can get might seem unbelievable and unrealistic at first glance. However, there are some traders making phenomenal returns with the FOREX market. As long as you can find a good managed trading fund to get involved with, you can make a lot of money.
  • Experience- When you invest with a managed FOREX fund, you are relying on the experience of the traders. Trading the FOREX market successfully usually takes years in order to master. Therefore, if you did not go with a managed FOREX trading fund, you would have to learn all of the information yourself. By using a fund like this, you can just let someone that does it for a living handle it for you. You are leveraging their experience in the industry and it saves you quite a bit of time in the long run. It gets you into the market before you are actually ready to trade on your own.
  • Leverage- When you trade in a managed FOREX account, you are pooling your money together with many other people. Therefore, the money that the trader is controlling is usually quite a bit. Additionally, the FOREX market allows traders to trade with huge amounts of leverage. This makes the potential returns on your investment much higher than if you were just allowed to trade with regular leverage. It also allows regular people to get involved in the FOREX market, without needing millions of dollars to get started, which opens the door for a lot of people to get in. 
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Friday, January 22, 2016

What is the Adantage and Disadvantage Of FOREX Scalping

What is the Adantage and Disadvantage Of FOREX Scalping

FOREX scalping is one of the most popular trading strategies in the foreign currency exchange market. Many traders use this as their primary method of trading. With scalping, you are employing a very short-term method of trading. You get in and get out of the market quickly. This type of strategy has some advantages, but it also carries with it some dangers. 
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Benefits
  • Limit risk--On each trade, you are risking only a small percentage of your account. Most short term trades have a small stop loss value, and therefore, you can protect your assets better.
  • Make fast profit--With this strategy, you can make a substantial amount of money in a very short period of time, if you know what you are doing. 
Dangers
  • Requires high accuracy--With this type of strategy, you are going to have to have a very high win percentage. Since each trade brings in only small profits, you cannot make up for losses with a big trade on the way. 
  • Take losses quickly--Just as you can make profit quickly with this type of trading method, you can also lose your profit just as quickly. If the market is going against you, you could really lose a lot of money in a day. 
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Thursday, January 21, 2016

What is FOREX Scalping?

What is FOREX Scalping?

FOREX scalping is one of the most commonly used trading methods in the foreign exchange market, one of the most popular trading markets in the world. Here are a few things to consider about FOREX scalping. 
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Get In and Get Out
The basic idea behind scalping in the FOREX market is that you make several small trades during the course of the day. You find a currency pair that you like to trade, predict which way it is going to move and then place a trade. Instead of waiting around for a big trade like you do with other trading strategies, you just wait for a small movement in the direction you want and close the trade. You are aiming for a small profit target instead of a large one. This strategy usually takes place pretty fast. If you are trading during a high volume part of the trading day, the currency will usually move a few pips in a short period of time. Therefore, you may have your trade open for only 10 minutes or less. Sometimes it takes longer, but many times you can do a trade in only a few minutes. 
Benefits of Scalping
Scalping can be a productive strategy if you know what you are doing. With this strategy, you are not waiting around to hit the big home run. You are just consistently hitting singles throughout the trading day. Even if the market does not move very much throughout the day, you can still net some consistent profits. 
With this strategy, you can also protect your trading account better. Instead of taking a large trade with a big stop loss, you are taking several trades with a small stop loss. You are just hoping for a few pips, so you do not have to risk as much to have a successful trade as you would if you were taking big trades. 
Disadvantages of Scalping
The big drawback to scalping is that in a short time frame, it is very difficult to predict the direction of the market accurately. The market jumps up and down a lot throughout the day. When you smooth out the data on a larger time frame, you can more easily see the direction of the trend. 
Another disadvantage is that it is a very high-paced trading strategy. With other trading styles, it is not so crucial to get in and out at the precise second. You can be patient and trade when you want. With this method, you have to get into the market at a second's notice. 
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Wednesday, January 20, 2016

Learn FOREX Trading Signals

Learn FOREX Trading Signals
Forex trading signals are a unique investment tool that allows you to take advantage of the FOREX market with minimal experience. There are many FOREX signal providers out there that charge a fee to receive their signals. FOREX signals are provided by those that have an intimate knowledge with the FOREX market. They provide these signals as a subscription to those that want to leverage their expertise. With a good set of FOREX signals, you could make a lot of money. However, in order to effectively use them, you will have to be able to interpret the signals. Here are a few tips for interpreting FOREX trading signals.
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Methods of Distribution
There are a few different ways that your FOREX signals could be distributed. In order to take advantage of them, you have to know where you are getting them. One of the most common forms of distribution is email, however text and instant messaging are possible as well. When the expert trader determines that a trade opportunity has presented itself, you will receive an alert via your method of distribution. The trader has taken the time to analyze the markets and tell you when it is time to trade. It is now up to you to interpret the signal that they have given you. 
Currency Pair
One crucial thing that will be in any FOREX signal is the currency pair that you are supposed to trade. Without this, the signal is pretty much useless. For example, they might send an email that says you need to trade EUR/GBP. This is the currency pair that contains the Euro and the Great Britain Pound. In order to trade the correct currency pair, you need to get onto your trading platform and find the EUR/GBP pair. You should then be able to place an order on that pair once it is located.
Buy or Sell
Another crucial part of the signal will tell you what to do with that pair. You can either buy it or sell it. Sometimes it will say "go long" or "go short". In this case, long is buy and short is sell. In addition to these two commands, they may tell you to do a pending order instead of a live trade. With a pending order, you input what price where you want the trade to trigger. It will remain pending until the market gets to that point. 
Take Profit and Stop Loss
Another critical point that they will usually cover in the notification is the take profit and stop loss values that you need to input. It may say something like "t/p 40 pips, s/l 40 pips." This means that they are setting the take profit level at 40 pips and the stop loss value at 40 pips. Therefore, from whatever point you get in the market, you need to add 40 pips to get the take profit and subtract 40 pips to get the stop loss. 
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Tuesday, January 19, 2016

Does FOREX Seminar Help us a lot ?

Does FOREX Seminar Help us a lot ?

Is a FOREX Seminar Worth the Time?

Many traders attend a FOREX seminar at some point to try and learn how to trade the markets. Many companies and FOREX experts offer seminars in order to teach new traders how to use FOREX to their advantage. There are many different seminars, on several different products. If you have never attended a FOREX seminar, you may be wondering if it is worth the investment. FOREX seminars are usually not cheap and you want to make sure that it is worth your time. Here are a few things to consider about a FOREX seminar and whether or not it can help you. 
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What is Taught?
You can potentially learn a lot at a FOREX seminar. The FOREX market has a lot of information surrounding it and all of it could be a potential topic at a seminar. However, there are a few common threads that tend to come up at FOREX seminars. Here are a few potential topics that you could learn at a seminar.
  • Trading strategies- This is usually one of the most popular topics as there are so many different kinds of trading strategies out there that you could go with. Each trader has their own style and technique. Therefore, you can learn a lot of different trading strategies that work. They will walk you through the trading strategy and give you some rules for its use. They may provide you with access to indicators and other tools that come with the system.
  • Money management- Money management is one of the most important aspects of FOREX trading. In order to be successful in the FOREX market, you need to adhere to strict money management rules if you want to win. You could take a good FOREX strategy and still lose money if you do not live by money management rules. Therefore, these seminars will usually take some time to cover this all-important topic.
  • Charts- They will also show you how to analyze FOREX charts. In order to use technical analysis to your advantage, you need to be able to read charts and use the charting software from your broker. 
How Helpful Are They?
Depending on who is giving the seminar, it could be very helpful. You need to do some research on the seminar and the person giving the seminar before you get involved. If you are an advanced trader, you would not get anything out of some of the basic introduction seminars. Therefore, you will want to make sure that the seminar is on your level before you sign up. You will also want to make sure that your teacher knows what they are doing. 
Developing Connections
Another benefit of going to a FOREX seminar is to develop connections that can help you later. When you are learning FOREX trading, it is very helpful to have someone that you can talk to through the process. Seminars are a great place to meet other people that are interested in FOREX. You can keep a network of people within reach and thus be able to access even more information than if you were investing alone.
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Monday, January 18, 2016

3 Worst FOREX Trading Habits that you may have

3 Worst FOREX Trading Habits that you may have

Taking FOREX (foreign exchange market) tips from just anyone is a recipe for disaster. The FOREX market is the most dynamic and fast-paced market in the world. It boasts a trading volume of over $2 trillion per day. Because a lot of money moves through the FOREX market on a given day, it represents a huge risk-vs.-reward scenario. If you take advice from someone who is not qualified to give it, you could find yourself with an empty account. Here are a few common FOREX tips that can lead to disaster. 
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1. Higher Leverage is Better
When you trade FOREX, you must do so with leverage. The price of a currency pair only moves a few decimal points every day. Therefore, in order to capitalize on any movement that small, you have to use leverage. A common leverage for a FOREX account is 100:1. This means that for every dollar of your money that you risk, you are actually risking $100. With this kind of risk, it does not take very much movement to make a big difference in your trading account. This is why there is a lot of money to be made and a lot of money to be lost as well. You can even get leverage that is as high as 500:1 with some FOREX brokers. While this can help you in some ways, it can make trading very dangerous for you. 
2. Trade 24 Hours A Day
The FOREX market is the only market that is open 24 hours a day for 5 days out of the week. With this capability, many new traders think that they should trade as often as possible to get the best results. While it seems logical, this is not always the case. 
Even though the market is technically open for 24 hours a day, they have different sessions around the world where the majority of trading takes place. The big three sessions are the London session, the New York session, and the Asian session. During these three sessions, there is a huge amount of trading going on. Therefore, the market behaves differently during these sessions. This can affect your trading strategy greatly. A good trading strategy during the Asian session is not necessarily a good one during the London session. If you like to trade the GBP/JPY pair, it will experience the most movement during the Asian session and during the London session, since the people that live in these areas use those currencies.
3. Trade With No Stop Loss
Many trading strategies that are available will actually encourage you to make trades with no stop loss. For whatever reason, they think that it gives you a better chance of winning. However, this is a great way to blow out your account in a hurry. All it takes is one freak move in the market, and your account is gone before you can do anything about it. 
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Sunday, January 17, 2016

FOREX Arbitrage gives you an Investing Opportuity

FOREX Arbitrage gives you an Investing Opportuity
There are investing opportunities with FOREX arbitrage. This article will explain what FOREX arbitrage is and its purpose within the market. It will also explain what FOREX arbitrage means for potential investors. It should be noted that any investing or investment platform entails risk, including the risk that you will lose the entire amount invested. This is important to understand because you should never solely rely on information reported in an article as your sole advice about investing. Do your own research and ask questions before starting any investment program. This article is not a promise of future returns or the potential that your investment experience will be good.
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What is FOREX Arbitrage?

FOREX arbitrage is billed as a risk-free trading strategy that allows you as an investor to take advantages of differences between markets. This is done by buying or selling a currency contract in one market and making an opposing transaction in another in order to take advantage of the difference in price. This requires having access to the FOREX trading platform in order to see when an arbitrage opportunity exists, and being able to take advantage of it.
There are software packages that are available, including FOREX calculators that can be used to take advantage of arbitrage opportunities. These type of packages and programs are for sophisticated or knowledgeable investors who have the time and patience to work and follow through on this trading strategy. A note of caution on risk-free strategies-there is no such thing. All investment, as stated above, involves risk.   

What is the Purpose of FOREX Arbitrage within the Market?

The purpose of a FOREX arbitrage strategy is to provide investors with a way to profit from pricing changes between markets. This type of strategy may be of value for a commodities trader that is seeking to hedge changes in a currency in order to increase the value of an import/export contract for a client, or simply to benefit personally. FOREX arbitrage is as useful an investment strategy for making short swing profits as other similar types of strategies.

What Does FOREX Arbitrage Mean for Potential Investors?

FOREX arbitrage, simply put, means an opportunity for investors to profit from changes between markets. This is a huge incentive for many investors to become involved in a FOREX trading strategy, as everyone seeks a way to make money through investing. Before you seek to benefit from implementing a FOREX trading strategy as part of your investment program, however, you need to make sure that you educate yourself completely on how the strategy works, and not only about the benefits and promissory claims of profit, but also the potential for loss. Simply relying on promises of profit will leave you disappointed if the investment strategy does not work as planned.
Be aware also that pursuing an investment strategy such as FOREX arbitrage involves work and a willingness on your part to invest the time and energy to pursue the strategy.
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Wednesday, January 13, 2016

How to make ptofit with the forex margin in forex trading?

How to make ptofit with the forex margin in forex trading?
Making a profit in forex trading is not too difficult, if you can follow the rule that states “ Buy at lower prices and wait and sell at higher prices.” This is much more easily said than done. Making money in the Forex trade calls for certain planned approach. A trader buys apples from wholesalers at $1 apiece and sells it at $2 per fruit. The differential margin in price less whatever expenses – is the trader’s profit. Investors in real estate play the same game by buying properties when the markets are down to sell at higher value when the markets bounce back. Dabblers in stock market also follow the same principle. It is no different in Forex trading.
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Action Plan
  • Avoid trading beyond a particular limit in the Forex market
  • It is advisable to broaden the stops. It is suggested that the initial stop loss should ideally be between 23 and 33 points when trading short term.
  • Be selective about the profit margins. It is not worth trading if one cannot make minimum 100 points.
  • Study the direction in the 4-hour chart and do not trade in an anti-direction. In other words, trade only with the prevailing trend.
You should follow the action plan in order to make money in this market. Any seasoned Forex trader will verify that if the action plan is adhered to,  the profits will come, despite a couple of misses.
Contributory Factors
The Forex trade market should be approached with a balanced and proper mindset. A mature trader should know that not every profit will have a return. Long-term trading is not possible if the trader refuses to treat losses as part of the game. Sporadic losses will inevitably occur in any trade. The success formula is to keep the losses as low as possible and subsequently earn profits to wipe out the occasional losses.
Yet another important quality needed in a Forex trader is money management skills. Many beginners in the Forex trader are unaware of the pitfalls and trade over-enthusiastically and end up losing all the investment money. A sound money management principle entails winning twice as much as the loss of any one trade. People lacking in money management methods can meet with serious setbacks. 

Summing up
If one is serious about making handsome profits in the Forex trade, you must become a quick study with  market movements and become familiar with different world currencies. Several traders have made huge profits in the Forex trade by following a well-conceived plan. The Internet has quite a few online courses that can help you learn more about Forex trading.
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