8 Trading Tips to Your Success

8 Trading Tips to Your Success

You can never have too many tips when you are trading !
Read on ...

Tip A. )
Trading strategies that work well in an up-market may not work in a down-market. Same as : systems that work well in a good trending market may not be applicable at all to a ranging market. The solution is either to have a system for each type of the market or make sure that one solid system will work well under all market conditions — extensive testing is the way to know the truth.

Tip B. )
Do not try to pick tops and bottoms of the price. It is a very wrong approach that unfortunately many traders have adopted. Searching for bargains is a good thing when you go shopping, but will put you in troubles if applied to Forex trading. Simply spot the trend and join it like other traders who are serious about trading do.

Tip C. )
Always remind yourself that the first and the last market bars/ticks are the most expensive. Delay entering the market on the first ticks and be out of the market early. On the open, never trade in the direction of a gap.

Tip D. )
Never worry about missing out on a trading opportunity. Do not provoke yourself to take a trade that does not meet all entry rules. Just because it seems to be too good to pass up is not an excuse for trading. You are never going to run out of trades, so be firm and stick to your rules.

Tip E. )
By using knowledge about currency correlation traders can easily avoid opening positions that cancel each other ( e.g. +10 pips on one pair and -10 on another = 0 ). Find out which currency pairs move simultaneously and which — in opposite direction. Currency correlation information.

Tip F. )
Did we say : "Have your stop loss order in place" ? Yes we did. Anyway, we will repeat it one more time. Even if your trading system needs no stops, still have it. Not that you are going to use it, but just for the safety of your capital. A sudden huge move in the market may cost you a big portion of your trading account especially if margin call is triggered.

We use insurance for many things in our life, why don't have one for your trading account ? For trading systems without a stop loss orders — put one on a decent distance, for example 100+ pips. Also do not use too tight stop orders as they will most likely be hit more often then you need to.

Tip G. )
Spend less time trading Forex but make it quality time. Trade only when you can be 100% focused. Time spent in front of the monitor does not assume profitability, so don't fool yourself and do not trade half-ready.

Tip H. )
And finally, it is wrong to trade with the money that you cannot allow to lose. That is also why traders switching from Demo to real account often may find themselves losing a trade after trade with a system that used to be profitable. This is because with a real account they've got fear to lose money, while on Demo account their minds were free.

Do not trade if you cannot afford to lose your money. Moreover, do not trade if you must make X amount of money per month to pay your bills in order to avoid financial trouble. Trading scared is the best way to mess up all trading rules, discipline and get additional stress.

Trading smart is what we wish you to achieve, and believe us, being focused and serious about the job you do will make you successful !

Good Luck !
To Your Trading Success

Wingcent Ning
Success-Biz Marketing
wingcent@gmail.com
http://mysignatureforex.blogspot.com
Singapore

What is Fundamental Analysis ?

What is Fundamental Analysis ?

Fundamental Analysis in Forex is a type of market analysis which involves studying of the economic situation of countries to trade currencies more effectively.

It gives information on how the big political and economical events influence currency market. Figures and statements given in speeches by important politicians and economists are known among the traders as economical announcements that have great impact on currency market moves. In particular, announcements related to United States economy and politics are the primary to keep an eye on.

What is economic calendar ?

Economic calendar is created by economists where they predict different economics figures and values according to previous months. It contains next data : Date — Time — Currency — Data Released — Actual — Forecast — Previous

For example : If the forecast is better than the previous figure, then US dollar usually is going to strengthen against other currencies. But when news are due, traders have to check the actual data.

If to look at oil prices, a rising price will result in weakening of currencies for countries which depend on huge oil import, e.g. America, Japan. A good example of detailed economic calendar can be found here : Forex Economic Calendar

Whose speeches to keep an eye on ?

Chairman of the Federal Reserve Bank of USA, Secretary of the Treasury, President of the Federal Reserve Bank of San Francisco and so on. Speeches of those prominent people are watched closely by traders.

What are the most powerful figures that move Forex market ?

Interest Rate

Traditionally, if a country raises its interest rates, its currency will strengthen because investors will shift their assets to that country to gain higher returns.

Employment Situation

Decreases in the payroll employment are considered as signs of a weak economic activity that could eventually lead to lower interest rates, which has negative impact on the currency.

Trade balance, budget and treasury budget

A country that has a significant Trade Balance deficit will generally have a weak currency as there will be continuous commercial sellings of its currency.

Gross Domestic Product ( GDP )

GDP is reported quarterly and is followed very closely as it is a primary indicator of the strength of economic activity. A high GDP figure is usually followed by expectations of higher interest rates, which is mostly positive for the currency.

Less powefull economic indicators are :

Retail sales

It is the first real indicator of the strength of consumer expenditure.

Durable goods

Rising Durable Goods Orders are normally associated with stronger economic activity and can therefore lead to higher short-term interest rates, which is usually supportive for a currency.

How do traders use all this ?

There are few useful tips that can be followed :

1. ) Keep an economic calendar on hand. Watch for the events when data are due to be released.

2. ) Know what indicator is gaining the most of attention at any given time as it becomes a catalyst for future price moves. For example, when the U.S. dollar is weak traders will watch closely the inflation indicator.

3. ) When the difference between the expectations and real results occur, watch for corrections in the market price moves.

4. ) Pay attention to news revisions if any, the situation on the market can change quickly.

Another important thing to consider — your Broker !

Because of the high volume of trades made at the time of important economic announcements some brokers may block new orders from being conducted.

For traders it means they should enter the trade before the "major action" begins and, what is more important, they must always have their protective stops placed. Being not able to access the trade desk to close your losing position in time is the most frustrating thing traders should always try to avoid.

Good Luck !
To Your Trading Success

Wingcent Ning
Success-Biz Marketing
wingcent@gmail.com
http://mysignatureforex.blogspot.com
Singapore

Forex Chart Trend Lines

Forex Chart Trend Lines

Plotting a trend line on a Forex chart gives very valuable information. Not only the trend line will show a current trend ( direction ) of the price move, it will also depict points of support and resistance levels for market price.

In addition, it will also help to determine good entry and exit points, best positioning for profit taking and placing protective stops. This very simple, but yet quite powerful tool will be one of the crucial indicators of possible trend reversal ( when market price starts move in the opposite direction ).

So, shall we learn how to draw trend line to make it our good friend in profitable forex trading ?

In the uptrend market trend line is drawn below the pattern formation ; in the downtrend — above. ( That is why when the trend is going to change our trend line will be crossed, which therefore will give us a signal that the price can start moving in another direction. )

In the uptrend, Forex trend line is drawn through the lowest swing-points of the price move. Connecting at least two «lowest lows» will create a trend line.

In the down trend, trend line is drawn through the highest swing-points of the price move. Connecting at least two «highest highs» will create a trend line.

A trend line confirms its validity when the price respects this line. The more «lowest lows» / «highest highs» the trend line contains, the stronger it becomes.

Another sample of drawing trend lines : main and inner downtrend lines.

Good Luck !

To Your Trading Success

Wingcent Ning

Success-Biz Marketing

wingcent@gmail.com

http://mysignatureforex.blogspot.com

Singapore

Forex Market Hours

Forex Market Hours

When to trade and when not to.

Forex market is open 24 hours a day. It provides a great opportunity for traders to trade any time of the day or at night. However, although it seems to be not very important at the beginning, the right time to trade is one of the most crucial points to be successful in trading at the forex market.

So, when should one consider trading and why ?

The best time to trade is when the market is the most active and therefore has the biggest volume of trades. More active currency moves will create a good chance to catch the trade and make some profit. A calm, slow market is literally wasting of time — turn off your computer and don't even bother !

Forex trading hours, trading time :

New York opens 8:00 am to 5:00 pm EST
Tokyo opens 7:00 pm to 4:00 am EST
Sydney opens 5:00 pm to 2:00 am EST
London opens 3:00 am to 12:00 noon EST

And so, there are hours when two sessions are overlapped :

New York and London — 8:00 am — 12:00 noon EST
Sydney / Tokyo — 7:00 pm — 2:00 am EST
London / Tokyo — 3:00 am — 4:00am EST

For example :

Trading EUR/USD, GBP/USD currency pairs would give good results between 8:00 am and 12:00 noon EST when two markets for those currencies are active.

At those overlapping trading hours you'll find the highest volume of trades and therefore more chances to win in the foreign currency exchange market.

Good Luck !
To Your Trading Success

Wingcent Ning
Success-Biz Marketing
wingcent@gmail.com
http://mysignatureforex.blogspot.com
Singapore

What Is Forex ?

What Is Forex ?

The Term

The term “FOREX” stands for Foreign Exchange FOREX ( or FX as a short abbreviation ) is a global currency exchange market where foreign currencies from all over the world are bought and sold for profit.

Forex is the largest and most liquid market in the world

Forex is the largest and most liquid market in the world where trillions of dollars exchanges take place every day. That’s an enormous money flow. No stock market exchange in the world come close to these numbers.

Currencies in the Forex market are traded 24 hours a day 7 days a week. Market literally follows the sun around the world. Trading moves from major banking centers of the United States to Australia and New Zealand, then to the Far East, gets to Europe and finally returns back to the States.

Trading Forex is all about exchanging currencies

Trading on Foreign exchange market simply means buying of one currency and selling another at the same time. In other words, the currency of one country is exchanged for currency of another country at the current exchange rates.

Foreign currencies are always traded in pairs - EUR/USD, GBP/USD, EUR/JPY etc ... Around 70% of all transactions made with major currencies like U.S. dollar, Australian Dollar, British Pound, Swiss Franc and Japanese Yen.

Nowadays Forex is available to small investors

While in the past Forex market was not available to small investors ( individuals ) due to large minimum transaction sizes, today Forex brokers are able to break those large sizes into a smaller unit lots and thus offer small investors an opportunity to buy or sell currencies side by side with regular core Forex market investors such as large banks, central banks, multinational corporations, hedge funds and other financial institutions.

Being incompetent in Forex can be expensive

Forex market is huge and plunging into trading without knowing its rules, without knowing "what is Forex" will be equal to swimming in the pool with ocean sharks. The dominant Forex players such as banks and hedge funds have a power to influence market moves and currencies exchange rates. For inexperienced traders investing own money in such game is as risky and uncertain as gambling. It could turn into a million fortune only in a couple of weeks or become a disaster for those who was ignorant in learning.

Forex brokers offer very big leverage to individual investors. A trader can trade at huge leverage as much as 300 to 1, meaning that for every dollar trader puts in for trading he can trade $300.

For example, having an account equal to $1,000 trader can trade as much as $300,000.It is a huge opportunity, but it also is very dangerous. No experienced trader will ever trade with such big leverage unless he has a really strong argument for a particular trade, and even after that it is an enormous risk.

Is trading Forex profitable ?

Trading in the Forex market is profitable, but only for 5% out of all beginner traders who start trading Forex. New traders need to learn the basics of trading well, and practice a lot on demo accounts before going real.

Like in every business, when trading money in Forex, trader gets paid depending on his knowledge and trading experience.

Good Luck !
To Your Trading Success

Wingcent Ning
Success-Biz Marketing
wingcent@gmail.com
http://mysignatureforex.blogspot.com
Singapore