Forex Strategy

We all wont to know what is the best Forex trading strategy?while you start to learn about Forex,and to understand all the terms of Forex market,know we wont to get now how we can choose the best Forex strategy that we will be able to start to earn money.what we can see that every new trader always jumping from one strategy, to another looking for the best strategy.if we will look in the market we will can see that most of the trader do the same.so how we can know how to choose the best Forex strategy?
If we will look in the Forex market we can see that there are many winning strategies and the best Forex strategy will depend upon your currency trading system.



After all if we look in Forex strategy, if we will trade the aim of long term profits while the same strategy might not do good if you are more into day trading or looking for short term profits.as long as you can see to trade in Forex you can see that the best strategy is to follow the movement of the market and to make the best choose that make you earn more money.Therefore there is no one particular currency trading strategy which will work for everyone.

Two Wrong Moves in Online Forex Trading

Ninety percent of online traders commit one common mistake and that is thinking that advisers, experts, and buying other’s system can make them successful. This mistake is also done by novice traders.

Consider this 2 reason why it is a wrong a move.

1. Why sell an advice

Think about this.

If a successful forex trader earns up to 10,000 a month and win 70% of trades, why would he bother getting hundreds in selling advice? Truth is those writers can’t make money from trading and just make it by selling their advice.

This statement is true for over ninety percent of advice sold on online forex trading. Given that not all of them are bad majority of them are, even if some of it works for others it will still present another problem.

2. Can you follow someone else’s discipline?

Confidence that the system will work for you is vital in trading, you will find it hard to follow a method and have the discipline to use it if it does not fit your personality.

Over the years we are influenced to gain opinions from someone else or seek advice from an expert on almost about everything, but in order to be a successful trader what you need is confidence, discipline and courage.

You need to learn a method that you’ll be confident to use it, even great traders did it and you’ll be surprise it is a lot easier than others think.

No one can bring you success it is just YOU – so make your research, develop your own personalized method, be confident and have discipline to use it, and be successful with your forex online trading.

Profitable Forex Strategies and Techniq

This article is mostly for people that already know what the Forex market is and at least know the basic concepts. If you have no clue about what this market is or you have never heard about it, I will give you a very brief explanation bellow.

Forex is the acronym for Foreign Exchange Market. This is the biggest and most liquid market of the entire world today. One to three trillion dollars exchange hands at Forex every day. That's a huge amount of money. No stock market exchange of any country come close to this.
This market is huge. It is a sea of money full of sharks and dangerous waters, but it is also the only market where you at least hypothetically can make $1,000,000 in two weeks starting with only $1,000.
I say hypothetically because what happens often is that people blindly gamble their money at Forex without knowing anything about it and they lose their shirt. That's why I say to you: be careful! This market is profitable, but you need to learn the basics well, do your homework and demo trade a lot.
Just remember that 95% of traders lose money, 5% make it and less than 1% become rich at Forex. The nice thing about this market is that you can make money without creating any product or service, selling anything, nor advertising. You just trade some cash and get paid depending on your knowledge and expertise.
This is the market where banks, transnational corporations and individual traders exchange one currency for another. I am talking about the spot Forex market. You can trade at huge leverage as much as 400 to 1, meaning that for every dollar that you have for trading you can trade 400. For example if you have $1,000 on your account you can trade as much as $400,000.
This is dangerous. Most experienced traders won't use such a high leverage. In the other hand, high leverage can be good if you learn how to use it in your favor. Anyway, that's enough for the basics. If you want to learn more about how this market emerged, its history and so, then read my other articles.
Now let's talk about the strategies and how some traders make money at Forex. Let's start by saying that what works for me may not necessary work for you. Trading currencies is risky. That's a fact. But ultimately I discovered a few strategies that could give novice traders a winning edge.
Trading Forex is not as easy as most people think. Today you may be earning a lot and tomorrow you are losing 40% of your starting capital. Novice traders often make the same mistakes over and over again. I will enumerate a few of them bellow.
1. Do not look for a holly grail of trading.
This is for people who are afraid to lose or are too greedy and want to get rich quick. Even when it seems so, The Forex Market is not the place to get rich quick. Yes, you can make a lot of money over time and yes you don't have to sell anything, nor create or advertise any products. Still you have to learn a whole lot about what makes this market tick and what moves the price of the currencies plus how to manage your money effectively so you don't lose your shirt.
Many novice traders spend a LOT of time searching a perfect strategy that will allow them to always win-win and never lose. They want to have guaranteed profits because they can't stand to lose and/or they want to make too much (millions) quick so they can retire fast and buy a mansion in a far distant beautiful tropical island. It doesn't happen.
Don't waist your time. A trading strategy that allows you to have guaranteed profits do not exist. Trading is very risky. That's why it is so profitable. Remember: "no risk, no reward." So, do not try to always win on every trade. It is simply not possible. There is no way to get rid of the fact of uncertainty. What I mean is that no matter how effective your trading strategy may be, sometimes it will fail and you have to be ready to face this fact.
By not trying to find a perfect strategy that turns you into a millionaire fast, you will just save a ton of your own time and efforts. It doesn't exist. If you find it, please don't tell me about it. First I won't believe you. Second I don't need it. You will find out bellow why I say that I won't need it.
2. Use technical analysis and fundamental analysis.
When I started trading I didn't believe in this. I wanted to find a strategy which consisted of money management alone (which I explain bellow). This is not good! Money management is important but you still need the other two. You define ("predict") where the market is heading to depending on how effective your technical and fundamental strategies are.
Mastering technical analysis is the ability to predict future price movements by analyzing past price data and graphical patterns. You get a graphic of certain currencies. Check the data that you observe and based on your knowledge of technical analysis you "predict" with certain degree of accuracy where the market is going.
Many brokers allow you to add technical indicators to the graphs while you are trading. You can try this on a demo account and see how well you are able to define the future price movement of the currencies you plan to trade. One of those brokers is www.oanda.com.
There are many technical indicators. I can't tell which one will be more effective for you. Every trader is different. This is something that you will have to discover by yourself. There is not a hidden secret or magic formula for trading Forex. It is what you do every minute when you are in front of the graphics and checking the news what really counts.
The secret is in your overall knowledge and your decisions. This comes with experience and practice. If you open an account with one of these online brokers you can trade on paper before you trade with real money, so you can learn and practice before you risk any capital.
Let me tell you about a few technical indicators that you can use. You can use the MACD (Moving average convergence divergence), the Bollinger Bands, Pivot Points, RSI, Stochastic, Fibonacci, EMA, Elliot Waves and many others. There are in fact many technical indicators but these are among the most widely known and used.
When you add technical indicators to the graphic the brokers software will automatically perform mathematical calculations to reveal interesting facts and patterns about the graphics that you can't readily see without said indicators. You can use the technical indicators to create your own technical systems.
These systems will never work 100% of the time, but if they work 70% — 80% it may be enough. That's because you can control your risks with money management techniques as I describe bellow.
To further increase your probability of winning and reduce your probability of losing on every trade you can use fundamental analysis. I think that most traders choose one or the other but many traders use both.
Fundamental analysis is to trade the news. What is going on with the countries's economies of the currencies that you are trading? What is the unemployment index? Did something suddenly happen that could drastically affect the price of the currencies?
Trading the news is another effective way to "predict" where the market is going. Many online brokers offer you a link with important financial news. For example www.oanda.com has this feature. You can also find financial news on the following websites:
a) www.bloomberg.com
b) www.businessweek.com
c) www.economist.com
d) money.cnn.com
e) markets.ft.com
f) www.reuters.com
g) www.fxstreet.com
3. Use money management strategies.
You need money management techniques. This is what makes you or breaks you. Put it this way, most traders invest far too much of their trading capital on every trade. It is as follows . . . "Expect to make too much and you will make too little, expect to make little and you will make a lot."
What does it mean? It means that if you try to make a fortune on every trade you will lose your shirt. If you expect to make a little on every trade and you compound your profits, you may make a lot of money over the long run.
The first rule of money management says that you should not risk more than 1% of the money that you have on your account. You control this risk with stop loss and limit orders. When you start trading this may seem as little profits specially if you start with little trading capital. In the other hand if you compound some or all of your profits you may increase your account exponentially over time.
The magic of compound interest is amazing! This is the way that most fortunes are created on the financial markets, little by little. If you gamble your money you may lose it fast.
Many traders do exactly the opposite. Imagine that you open an account with $5,000 and you enter a trade for $1,000. Let's say that the market moves against you and you lose those $1,000. Now you have $4,000 on your account. You think that the price for the currencies is too low, so it should recover. In fact you are pretty sure that it will come back.
Then you invest $1,500 to recover from the previous loss plus realize a $500 profit. The market moves again against you. It kept going in the same direction, something that you didn't expected. What happens? Now you have $2,500 on your account. That's 50% of your initial trading capital. It will be very hard for you to recover from that loss.
In the other hand, if you risk 1% of your money on every trade, you will have $4,900 on your account after that initial loss. It will be much easier for you to recover from those trades.
The second rule of money management is to expect always to receive more profits than the money that you risk to lose. This can be accomplished through limit and stop orders as well as trailing stops.
For example if you expect to make a 25 pips profits on every trade, then you put the stop order at 15 pips bellow or above your entry price. A better way to have a greater expectancy ratio is to use trailing stops as I describe above. A trailing stop allows you to cut the loses short and let your winners ride.
These are the basic techniques that a successful trader should use to generate consistent profits at the Forex Market. This is basic information, but I realize that many people out there don't even know what Forex is, so I didn't want to get into more complex strategies here. You will find information about complex and advanced Forex strategies on my website.

Author Name: Nathaniel Tabares

Make Money Online in Forex

Most of us looking for to make extra money online in the web.We can give you one of the best way to make money is in the forex,this is the place that you will be able to make money online.For these how just start to use forex you just have to know the basic skills for trading and then you will be able start to make money at home.what you just have to know about forex that you have to know where to invest your money and then your profits start to roll in your bank account.



One of the first term in forex is "Foreign Exchange".this term mean you start to buy a currency and selling it to make profit.where you can buy and sell,The currencies are sold in pairs, such as, EUR/USD.but before you start to trade try to make you a demo account there you can practice to trade and when you will be able then open you a real account.



More you must to get familiar with forex broker that he will able to let you know more detail about forex currency,and forex best investing way.if you choose good forex broker,he will teach you all the knowledge that you need to start to trade forex and how to look in the forex market.What you should know about forex making money is where to find the best invest there you can invest your money and start to earn money.

How to Choose an Online Forex Firm?

Forex — What is it? The international currency market Forex is a special kind of the world financial market. Trader’s purpose on the Forex to get profit as the result of foreign currencies purchase and sale. The exchange rates of all currencies being in the market turnover are permanently changing under the action of the demand and supply alteration. The latter is a strong subject to the influence of any important for the human society event in the sphere of economy, politics and nature.
Consequently current prices of foreign currencies evaluated for instance in the US dollars fluctuate towards its higher and lower meanings. Using these fluctuations in accordance with a known principle “buy cheaper — sell higher” traders obtain gains.
Forex is different in compare to all other sectors of the world financial system thanks to his heightened sensibility to a large and continuously changing number of factors, accessibility to all individual and corporative traders, exclusively high trade turnover which creates an ensured liquidity of traded currencies and the round — the clock business hours which enable traders to deal after normal hours or during national holidays in their country finding markets abroad open.
Just as on any other market the trading on Forex, along with an exclusively high potential profitability, is essentially risk – bearing one. It is possible to gain a success on it only after a certain training including a familiarization with the structure and kinds of Forex, the principles of currencies price formation, the factors affecting prices alterations and trading risks levels, sources of the information necessary to account all those factors, techniques of the analysis and prediction of the market movements as well as with the trading tools and rules.
An important role in the process of the preparation for the trading on Forex belongs to the demotrading (that is to trade using a demo-account with some virtual money), which allows to testify all the theoretical knowledge and to obtain a required minimum of the trade experience not being subjected to a material damage.
Now, what to look for in an online Forex Firm:

1. Low Spreads.
In Forex Trading the ’spread’ is the difference between the buy and sell price of any given currency pair. The lower the spread saves the trader money. Most firms offer 4-5 pip spreads in the Major Currency pairs. The best firms offer clients 3-5 pips.

2. Low minimum account openings.
For those that are new to trading, and for those that don’t have thousands of dollars in risk capital to trade, being able to open a mini trading account with only $200 is a great feature for new traders.

3. Instant automatic execution of your orders.
This is very important when choosing a Forex firm. You want instant execution of your orders and the price you see and ‘click’ is the price that you should get. Don’t settle with a firm that re-quotes you when you click on a price or a firm that allows for price ’slippage’. This is very important when trading for small profits.

4. Free charting and technical analysis
You need a firm that gives you access to the best charting and technical analysis available to active traders. The firm that I recommend gives clients FREE professional charting services and even allows traders to trade directly on the charts!

5. High Leverage
You want high leverage — the ability to trade a large amount with a small margin deposit. Some of the best firms offer .25% or 400:1 leverage.

6. Hedging Capability
You want the flexibility of opening positions on the same currency pair in opposite directions without them eliminating each other and without margin increase!

Online Trading Forex

Forex trading has entered the home and lives of many people around the world, both men and women; all of them coming from many walks of life. Being this a relatively new phenomenon in the department of alternative income opportunities.

It was only about ten years ago that the Forex market moved into our homes. And this was made possible only thanks to the invention and rapid spreading of the internet. The technology that made online forex trading possible.

Before the internet era, trading was an activity reserved only to the big players, banks, brokerage firms, in short; only wealthy people could aspire to enter the currency markets. But the arrival of the internet and the online trading platforms available for downloading, most of them free of charge, to the computers of regular citizens have come to transform the face of forex currency trading in a few years.

The easy accessability to the forex markets and the ever increasing number of new forex traders that has taken place in the last few years has motivated the brokerage firms to improve their services and the accessibility of their trading platforms. Not only with better and more efficient software but also with new financial products as the Mini-account that allows people to trade with an awaesome minimum margin of only $100 or even less in their trading account.

Once you download and install the trading platform from your broker, there are many out there you can choose from. You will notice the many features made available to the trader thanks to these platforms. For example, they will show you the current prices of the most important currency pairs, also included with the platform will be the charting software that will let you perform the technical analysis needed in order to find good trades.

The charting tools coming in with the software included in the trading platform package is really handy. It usually has all the important indicators, RSI, Bollinger Bands, Fibonacci levels, etc. and they are just one click away from you to use. And yes, you can even draw on the chart. The software also includes applications for the entering and exiting of trades (stop, limit, etc), and all is managed in real time through your home internet connection. And of course, when involved in online forex trading it is important to consider the fact that the higher the speed of your connection the better your trading experience will be. No one wants to lose information in the middle of a tight trade.

Start Trading Forex

We wont to give all of the best reason way should you may consider foreign exchange, or Forex trading?the huge potential to make money is in the forex market that is the largest in the world.the Forex market is even largest then U.S. stock market, and has a daily trading volume larger than all the world's stock markets combined.



Here we wont go give you the best reason way is trade in Forex is smart move for you.
Start to trade forex it easy,trading on the forex market,it is simpler.the primary currencies traded are the U.S. dollar, the Japanese yen, and the British pound. There is less to keep track of, so conducting research and analysis can be much easier.



You may consider start to trade Forex at home.you have to get good computer that you will be able to get involved in forex trading.if you know what kind of strategy you can conduct transactions online for minimal fees and without having to pay a professional to do it for you.while you start to trade online from home even try to involve other how already trade in forex, and ask their preferences.doing good research how start trading forex, will give you best answer, and you will be able to take the best move by trading forex.



While you make your first invest in forex do it minimal:
When you start to get involved in forex trading, you may consider start your first invest in small amount .in this way you will be able to get start to know how the forex market work.this way allows the new trader to get involved.then the new trader learn the process by make risk in small amount.while you trade in forex you may consider to determine your risk limit, and not invest above that amount.in this way you get start to involved forex trading and then make move to get enter to trading market.



While you trade in the forex market you should know that the Foreign Exchange market is a twenty-four hour process.It mean that you can trade at any time of the day,which give you much control in your stock market.more you can respond of any influence that can be made in the world that can be influence on your stock or invest.


The more you learn about forex trading market, then you will be more get involved all the process and then your decisions will be useful for your own investment.

Learn Forex Trading

Forex trading is being called the Recession Proof Business of 21st Century. Forex trading is becoming the best home based business opportunity. You only need a computer and a good internet connection to start trading forex from your kitchen table.

Forex and stock markets work differently in many ways. Forex market is highly liquid as compared to the stock market. Stocks are basically a long term investment method where ordinary people buy stocks either individually or through mutual funds and wait for these stocks to rise in order to build their retirement portfolios.

Forex markets are open 24/5 meaning 24 hours, 5 days a week except on Saturday and Sunday. As compared to forex markets, stock markets have fixed hours usually from morning to evening. After the close of a stock exchange the trading on that stock exchange stops.

In contrast to the stock exchange, the forex is primarily a short term market. Most traders enter and exit a trade within a 24 hour period " sometimes within a few minutes.

In the US stock markets there are more than 50,000 stocks listed on the different stock exchanges. As compared to that in forex markets, mostly five major currency pairs are traded: USDEURO, USDGBP, USDCHF, USDJPY, USDASD.

Forex trading offers you the advantage of lower trading costs as compared to stock trading. In forex trading, there are no commissions, only the spread between the bid/ask price that you have to pay. In stock trading you have a pay a commission to your broker per trade.

Then, dont forget the Stock Market Crash of 2008. People have lost 50-to-75% of their portfolios and retirement accounts, even with so called blue chip stocks - those having proven value over many years and many bought as the backbone of an investment portfolio.

There is a bear market in stocks right now. This bear market may take a few more years to recover. On the other hand, forex markets are always bullish. SInce, currencies are always traded in pairs. If one currency loses, the other currency gains.

Daily more than $3 trillion get traded on the forex markets. If you combine all the stock markets of the world, even then they cannot the match the size of the forex market. Forex markets are so huge that even governments and central banks are unable to control them.

After losing their hard earned wealth in the stock market crash of 2008, many people are wondering how can they recover their losses...

Learn forex trading. Yes, forex trading is the answer to this recession. It is not difficult to learn forex trading. If you are willing to give two hours daily to forex training, I believe in 2 months, you can become a forex trader. Take forex trading as your passion or hobby. You are not going to regret it.

Forex Trading Quotes

Trading Quotes
If you like to open a position you need to place an "entry" order. When an entry order executes, the position becomes "open" and it starts its life in the forex market. At any point in time, you can place an "exit" order to "close" the position. A position can be "long" (entry order is to buy and exit order is to sell an instrument) or "short" (entry order is to sell and exit order is to buy an instrument).
When trading forex you will often see a two-sided quote, consisting of a 'bid' and 'offer'. The 'bid' is the price at which you can sell the base currency (at the same time buying the counter currency). The 'ask' is the price at which you can buy the base currency (at the same time selling the counter currency).
At a point when you place your entry order, you need to define price level at which you want to buy or sell certain instrument. You also need to specify type of the order and quantity of the instrument you want to trade. There are 3 order types:

Market Order
Placing a market order means that you will buy at your broker's current "ask" (or "offer") price, or sell at your broker's current "bid" price, whatever that price currently is. For example, suppose you are buying EUR/USD. The current market, as quoted by your broker is 1.2934 / 1.2938. This means that your broker is willing to buy EUR/USD from you at 1.2934, and sell it to you at 1.2938.

Stop Order
Initiating a trade with a stop order means that you will only open a position if the market moves in the direction you are anticipating. For example, if USD/JPY is currently 108.72 and you believe it will move higher, you could place a stop order to buy at 108.82. This means that the order will only be executed if the market moves up to 108.82. The advantage is that if you are wrong and the market moves straight down, you will not have bought (because 108.82 will never have been reached). The disadvantage is that 108.82 is clearly a less attractive rate at which to buy than 108.72. Opening a position with a stop order is usually appropriate if you wish to trade only with strong market momentum in a particular direction.
Limit Order
A limit order is an order to buy below the current price, or sell above the current price. For example, if EUR/USD is trading at 1.2952 / 56 and you believe the market will rise, you could place a limit order to buy at 1.2945. If executed, this will give you a long position in EUR/USD at 1.2945, which is 11 pips better than if you had just bought EUR/USD with a market order. The disadvantage of the limit order is that if EUR/USD moves straight up from 1.2952 / 56, your limit at 1.2945 will never be filled and you will miss out on the profit opportunity even though your view on the direction of EUR/USD was correct. Opening a position with a limit order is usually appropriate if you believe that the market will remain in a range before moving in your anticipated direction, allowing the order to be filled first.
For both entry and exits orders you can specify price levels at which you want them to be executed. You have to specify entry levels when you place you entry order, while most brokers would allow you to specify exit levels at any time.