Plan your trade and trade your plan: You must have a trading plan to succeed. A trading plan should consist of a position, why you enter, stop loss point, profit taking level, plus a sound money management strategy. A good plan will remove all the emotions from your trades.
The trend is your friend: Do not buck the trend. When the market is bullish, go long. On the reverse, if the market is bearish, you short. Never go against the trend.
Focus on capital preservation: This is the most important step that you must take when you deal with your trading capital. You main goal is to preserve the capital. Do not trade more than 10% of your deposit in a single trade. For example, if your total deposit is $10,000, every trade should limit to $1000. If you don’t do this, you’ll be out of the market very soon. Continue reading →
There are different types of indicators that can help you in your trading journey. Forex technical indicators combine mathematical and statistical formulas together in order to determine the strength of a trend, its direction and give other important info that may help you forecasting future prices.
Technical analysis differs from fundamental analysis in that technical analysis is applied only to the price action of the market, ignoring fundamental factors. As fundamental data can often provide only a long-term or “delayed” forecast of market price movements, technical analysis has become the primary tool with which to successfully trade shorter-term price movements, and to set stop loss and profit targets.
Technical analysis consists primarily of a variety of technical studies, each of which can be interpreted to generate buy and sell decisions or to predict market direction.
With almost a $4 trillion average daily turnover in the global foreign exchange market and many technical and fundamental techniques to help you predict the market, forex is a great way to make money in the comfort of your own home.
But with hundreds of forex brokers out there how to you know which one to choose? Here are some key points you should consider: Continue reading →
Currencies are traded in pairs. A currency pair is the quotation of the relative value of a currency unit against the unit of another currency. The first currency of a currency pair is called the base currency, and the second currency is called the quote, or counter, currency.
Currency pairs are written by concatenating the ISO currency codes (ISO 4217) of the base currency and the quote currency, separating them with a slash character.
GBP -> base currency
USD -> quote/counter currency
According to the average daily trading volume and to the liquidity we distinguish between: Majors, Minors and Exotic Pairs.
The most traded currency pairs in the world are called the Majors.
They involve Euro, US dollar, Japanese yen, Pound sterling, Australian dollar, Canadian dollar and the Swiss franc.
The Majors are:
EUR/USD – Euro/US dollar
USD/JPY – US dollar/Japanese Yen
GBP/USD – British Pound/US dollar
AUD/USD – Australian dollar/US dollar
USD/CHF – US dollar/Swiss franc
USD/CAD – US dollar/Canadian dollar
These currency pairs have high liquidity and represent more than 80% of the total Forex volume. Continue reading →