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 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

Facts about Scalping in Forex

Facts about Scalping in Forex

The only way to make small account big in a short period of time is through the use of really high leverage. But wait ... do not jump of the cliff right away. Start with reasonable leverage for scalping, for example 20:1 or at most 50:1, then move on as you see scalping skills improve. But even before that do not be lazy to demo trade your scalping system – make sure it will not disappoint you later ...

The only way to trade with high leverage without risking blowing up an entire account in only 10-15 trades is by trading with a tight stop loss. Trading without stop loss will “kill” your investment in no time.

It is wise to decide on the size of the trading lot and exposed risk in advance. Do a simple math : calculate the worst possible situation, e.g. : 10 consecutive losses in a row ; then see if your account will survive and if there be something left to move on. And, although 10 losses in a row is a very unlikely scenario, you cannot deny it ...

Although Forex is active 24/7, not every hour is suitable for scalping.
No scalper wants to sit in front of the monitor for numerous hours bored and disappointed with the “sleeping” price as it literally moves nowhere. Scalpers hunt for volatile, liquid market. There are 4 major market sessions : London, New York, Sydney and Tokyo session. To trade effectively scalper needs to learn behavior of a chosen currency pair and define most active sessions, even particular hours for this pair to be able to catch good price moves.

Another thing to keep in mind is spread which brokers charge for different currencies. The higher the spread the harder it will be to collect desired pips ( because once trading position is opened, trader must cover spread cost – earn pips for broker first – and only then collect own pips ). And, of course, the lower the spread the easier/faster it is to accumulate pips.

Another factor to consider is an average daily range of the price for chosen currency. The wider it is the more realistic is an opportunity to profit from price moves. One of the scalpers’ favorite currency pair is EUR/USD with its low spread and good daily price range.

While using high leverage combined with high frequency trading, scalpers should be very cautious about the cost of actual trading, as each pip here makes a dramatic difference after a large number of trades.

This means being very careful with entries and exits, stops and limit orders, and also be very realistic about profit targets.

Once in the trade, scalpers should manage trading risks by :
1 ) moving stops to break-even as soon as situation permits ;
2 ) taking profits at a logical levels : at round market price numbers : 00, 10, 20, 50 etc ..., at previous support/resistance levels, at Fibonacci levels etc ...
3 ) getting out of the trade if the price freezes for longer time than expected.

Scalp-trading is very demanding and requires a lot of concentration, constant monitoring of the price and very quick decision making. Also, short time frames used in scalping strategies, require a good grasp of trading complemented with sound technical analysis skills. It is not a place where beginners feel very comfortable as it demands from traders a good chunk of experience.

Scalping involves substantial risks

A lot of beginners have common problem when trading highly leveraged accounts – they tend to maximize profits by trading with full capital at once. Do not do that ! Maximizing chances for higher profits goes hand in hand with maximizing risks ! The size of positions opened must be calculated very accurately so that your entire account will not be wiped out with just one( ! ) very unfortunate trade.

Another factor that increases risks for scalpers is the spread traders pay when open a trade. Each time a new trade is open, the spread cost is paid to the broker, thus opening 10 small trades instead of 1 long term trade increases the cost of trading in 10 times. If to measure risk/reward ratio of such scalping activity it may show very risky and potentially losing trading.

Example :

With GBP/USD currency pair a scalper sets profit target of 10 pips and stop loss of 10 pips. So far it is 1:1 risk/reward ratio. In the next step, when the spread is added, the picture changes.

For example, the spread his broker charges for GBP/USD is 4 pips. When scalper opens a position he is -4 pips ( the spread has been charged ). Now in order for him to reach the target of 10 pips profit, the price has to move +4 and +10 pips = 14 pips.

On the other hand, in order to trigger his stop loss the price should move ... -4 is already in place ... so, only -6 pips and he will be stopped at total of -10 pips ... the risk-reward ratio has changed in over 2:1, not very promising situation indeed ...

To understand the full challenge of scalping as a trading style, consider this : hard work and small gains accumulated over a decent period of time could easily be wiped out with one large loss. Finding a balance between profit levels and size of acceptable losses presents the most difficult challenge to scalper’s strategy.

Best of luck in achieving your goals !

Good Luck !
To Your Success

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

22 Forex Trading Tips

22 Forex Trading Tips

Dear Traders, take a look on those important tips given to you.
Read on ...

Tip #1 : No Gamblers
Gamblers go to casino. All unproved, spontaneous actions in Forex trading — are a part of pure gambling. Any attempt to trade without analysis and studying the market is equal to a game. Game is fun except when you are losing real money ...

Tip #2 : Practice on Forex Demo Account
Never invest money into a real Forex account until you practice on a Forex Demo account ! Allow at least 2 month for demo trading. Consider this : 90% of beginners fail to succeed in the real money market only because of lack of knowledge, practice and discipline. Those remaining 10% of successful traders had been sharpening and shaping their skills on demo accounts for years before entering the real market. So, starts practicing on your Forex Demo account first.

Tip #3 : Go with the Trend
Go with the trend ! Trend is your friend. Trade with the trend to maximize your chances to succeed. Trading against the trend won't "kill" a trader, but will definitely require more attention, nerves and sharp skills to rich trading goals.

Tip #4 : Looking at Time Frame
Always take a look at the time frame bigger than the one you've chosen to trade in. It gives the bigger picture of market price movements and so helps to clearly define the trend. For example, when trading in 15 minute time frame, take a look at 1 hour chart ; trading hourly would require obtaining a picture of daily, weekly price movements.

If a trend is hard to spot — choose a bigger time frame. Up and down market patterns are always present. Always make sure you know the dominant trend, unless you are a scalper. Scalpers have no need to spend their time studying big trends, what's happening in the market here and now ( during 5-10 minute time frame ) should be of only importance to a Forex scalper.

Tip #5 : Never Risk
Never risk more than 2-3% of the total trading account. One important difference between a successful and an unsuccessful trader is that the first is able to survive under unfavorable conditions on the market, while an unsuccessful trader will blow up his account after 5-10 unprofitable trades in the row.

Even with the same trading system 2 traders can get opposite results in the long run. The difference will be again in money management approach. To introduce you to money management, let's get one fact : losing 50% of total account requires making 100% return from the rest of money just to restore the original balance.

Tip #6 : Trade Calm
Put emotions down. Trade calm. Don't try to revenge after losing the trade. Don't be greedy by adding lots of positions when winning. Overreaction blocks clear thinking and as a result will cost you money. Overtrading can shake your money management and dramatically increase trading risks.

Tip #7 : Choosing the Time Frame
Choose the time frame that is right for you. Choosing wise means that you are comfortable and have time enough to analyze the market, place and close orders etc ... Some people can't wait for hours for the price to make a move, they like action and therefore prefer smaller time frames. On the contrary, for others 10-15 minutes is a hustle to be able to make the right decision.

Tip #8 : Stay Out
Not trading or standing aside is a position. When in doubt — stay out. If it is not clear where the market will move — don't trade. In this case saving present capital is and absolutely better choice than risking and losing money.

Tip #9 : Use Protective Steps
Learn to use protective stops. Respect them and don't move. Hoping that market will turn in your direction is a very delusive hope. By moving a stop loss further a trader increases his chances to end up with much bigger loss.

When holding to a losing trade too long, and even if funds permit, traders as a rule are very reluctant to accept big losses, thus often continue "hoping for best". In the mean time invested money is stuck in the open trade for unknown period of time ( weeks and even months ) and cannot be used for opening new positions. Not working money — dead money. Also this will result in constant interest payments for holding open positions.

Tip #10 : Keep it Simple
"Keep it simple, stupid" — applies to indicators, signals and trading strategies. Too much information will create a controversial picture of where to trade and when not to. To avoid lots of confusion create a simple but working method of trading Forex.

Tip #11 : Risk Ratio
Think about risk/reward ratio before entering each trade. How much money can you lose in this trade ? How much can you gain ? Now, make a decision if the trade is worth entering. Example : if trader is looking for possible 35 pips gain and possible 25 pips of loss, such conditions are not worth trading. Compare it with the situation when a trader has 100-120 pips of potential gain and only 10-20 pips of possible loss. This is the trade to open !

Tip #12 : Proven Trade
Never add positions to a losing trade. Do add positions when the trade has proven to be profitable. Don't allow a couple of losing trades in a row become a snowball of losing trades. When it is obviously not a good day, turn the monitor off. Often not trading for one day can help to break a chain of consecutive losses. Trying to get revenge can often make things worse.

Tip #13 : Let Profits Run
Let your profits run. Let your position be open for as long as the market wishes to reward you. Of course, for this traders need a good exit strategy, otherwise they risk to give all profits back ... Running two or more open trades gives an option to close some positions earlier and keep others running for higher profits.

Tip #14 : Cut Losses
Cut your losses short. It's better to finish unprofitable trade quickly than wait for the situation to get worse. Don't put a stop loss too far — it's your money you risk. Better calculate the best spot to enter when a potential loss would be minimized. Again : respect your stop and don't move it "cherishing hopes".

Tip #15 : Overlapping Market Hours
Trade currency pairs in respect to their active market hours. Learn about overlapping market hours : when two markets are open and highest volume of trades is conducted. For example, Australian and Japanese trading sessions are overlapped from 8pm to 1 am EST. At that time trader can successfully trade AUD/JPY currency pair.

Tip #16 : Choosing Right Day
Choose the right day to trade. This recomendation is often wrongly taken as an optional thing, because everyone knows that Forex market is open 24 hours a day 7 days a week. Yet, choosing the time to trade can make a difference between successful and hopeless trading.

It's proved and highly recommended not to trade on Mondays, when the market has recently awaken and is making first "probation steps" to form a new or confirm a current trend ; and on Fridays afternoon, during the huge volume of closing trades. The best days to trade are Tuesdays, Wednesdays and Thursdays.

Tip #17 : Fibonacci Levels
Learn about Fibonacci levels and how to use them for trading. Fibonacci can be very helpful in trading, even partially using the study, for example, to determine the best exit, can bring traders to a new edge of trading.

Tip #18 : Signaling Bar
Always ensure that a signaling bar/candle on the chart is fully formed and closed before you enter a trade. A golden rule of trading : "Always trade what you see, not what you would like to see" is the best explanation here.

Tip #19 : Live Trading Signals
If you ask for someone else's advice as about how and when to trade, in other words, choose to rely on live trading signals from other traders, make sure you do it for your benefit, not for disaster. If you use such signals to discover how other traders do analysis and study on the price — you are on the right track and soon you'll be able to do analysis yourself. But if you're just blindly following recommendations and your only task is to push the correct button ... think again.

Tip #20 : Leveraged Account
Using a highly leveraged account comes at a cost. It will, of course, give a trader more financial gear to trade, and also trader's broker will be happy as it will mean higher spread income for him. On the other side a trader signs up for additional risks that multiply with higher leverage in a "friendly tight" proportion.

Tip #21 : Measure Trading Success
Learn to measure trading success by the end of the day, week and then month and year. Do not judge about your trading success on a single trade. To be successful traders don't need to win every trade, they also don't become rich in one trade — they need to be profitable in a long run.

Tip #22 : No Secret Approach
There is no such thing as a secret approach to understanding the market. Take the time to develop a solid trading system and find out that the secret to trading success lies in hard work and constant learning.

Good Luck !
To Your Success

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

6 Forex Trading Tips for Newbies

6 Forex Trading Tips for Newbies

You have decided to be a trader in the Forex market, and you have no idea on how to begin. Let's first start by defining what the Forex market is and what it does.

The term "FOREX", also known as the FOReign EXchange is a market for the sale and purchase of all kinds of currencies. It originated in the early 1970's when floating currencies and free exchange rates were first introduced. At this time, the Forex market traders were the ones who set the value of one type of currency against another.

Nowadays, the market forces determine the value of a currency against another. One unique aspect of the Forex market is that very little trading qualifications are required of anyone intending to trade therein.

Independence from external control ensures that only the market forces influence the currency prices. As the largest financial market, with trades reaching up to 1.5 trillion U.S. dollars, or USD, the money moves so fast, it’s impossible for a single investor to substantially affect the price of any major foreign currency.

In addition, unlike any stock that is rarely traded, Forex traders are able to open and close any positions within seconds, because there are always a number of willing buyers and sellers.

1. ) The first thing you need to do is open a Forex account. You will have to fill an application form which includes a margin agreement stating if the broker will be allowed to intervene with any trade when it appears too risky. Since most trades are done using the broker's money, it is only logical that he protect his interests. However, once you have established an account, you can fund it and begin trading in the Forex market.

2. ) Adopt a trading strategy, that has proven to be successful for you. Remember that strategies will work differently for different traders, so don't try to adopt a strategy that works well for another trader. It might backfire on you. The two available approaches are either Technical analysis or Fundamental analysis. A combination of the two is a more preferred choice for experienced traders.

3. ) Understand that prices move by trends. Forex has a popular saying, “The trend is your friend.” There are certain movements that have been studied over many years in order to identify a pattern in the trend. These trends need to be understood in order to understand a good trading strategy. For small accounts that are $25,000 and under, trading with a trend may help improving your odds when compared to bi-directional trading. Most newbie’s will look to trade in any direction, when they should be trading with a trend.

4. ) Ensure you know which are the top five currencies pairs in the foreign exchange. These are USD/Yen, Swiss franc/USD, Euro/Yen, Euro/USD and Pound/USD.

5. ) For newbies, it is advisable to maintain two accounts to ensure you learn to play the trading game. Keep one real account, one that you will actually use to trade real money ; and the second account should be a demo, one that you can use to test alternative moves in the trading game. You can easily use your demo account to shadow the trades in your real account so you can widen your stops to see if you are being too conservative or not.

6. ) Always examine the one hour, four hour and daily charts that concern your trades. Although you can trade at 15 and 30 minute time intervals, doing so requires a handful of dexterity.

Good luck !
To Your Success

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

Three Simple Forex Trading Strategies

Three Simple Forex Trading Strategies

No one ever said that trading success was easy. It takes time and you need to know and understand your market, as well as have a good bit of self control. These three simple Forex trading strategies will help keep you on track.

If someone tells you that you can continuously make money in a foreign exchange market, they are either lying or they have no idea about the market they talk about. Foreign exchange has always been a volatile market and it still is today. Add trading on margin and the volatility goes up even more. But three simple Forex trading strategies can keep you in the green.

For you to make successful trades you need to understand and take into account the data and then make an informed decision based on your understanding and what you expect from the market. Just three simple Forex trading strategies will make all the difference to you.

Never trade with money unless you can afford to loose it

Trading on Forex markets is speculative and don't let anyone tell you differently. That means losses can occur. It's also exiting and somewhat addictive and the more you get involved the harder it is to clearly see what the right thing is to do. These three simple Forex trading strategies will certainly help keep you on track. Trading on Forex should enhance not hurt your life.

One of the keys to the three simple Forex trading strategies is to know your exit strategy. You should also determine what time frame you are making your trades on. What is it you want to get out of your money and the market ? Sure you enjoy the thrill of the hunt but you really need to have a time frame and a goal of where you are going.

Use your three simple Forex trading strategies to do what the pro traders do. 9 and 14 RSI are the most common trend lines and then there are 9, 20, and 40 day moving averages. The closer you want to get to where the pro traders do the more precise your calculations for your estimates are going to have to do.

These three simple Forex trading strategies are just a start to the strategies available to try. If your life needs a little excitement and you could use a few extra dollars do give Forex trading a try.

Let these three simple Forex trading strategies be your guide.

To Your Success

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