Posts Tagged ‘Forex Tutorial’
Saturday, July 16th, 2011
The base line for this mathematical models is to incorporate a theory that will generate automatic signals for when to buy and when to sell currency pair, and also should serve as a confirmation before opening a trade.
1. Moving Average
The first move should be to place one or two moving averages over the spot price. It is better to avoid adding more then 3 moving averages over one chart. The more indicators you have on one chart the more likely your are to miss the movement because they don’t line up to give you a trading signal.
These moving averages can be either a simple moving average or an exponential moving average (these are used more common). If you are using a weighted moving average the line will be much closer to the spot price because it gives a higher importance to the last prices.
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Tags: Fibonacci, Foreign Exchange, Forex, Forex Articles, Forex Market, Forex Tutorial, FX, Indicators, Momentum, Moving Average, Relative Strength Index, Resistance Levels, RSI, Support Levels, Technical Analysis, Trade, Trader, Trend
Posted in Technical Analysis |
Saturday, June 25th, 2011
Trading anxiety can be a problem for traders who have suffered big losses. Anxiety can cause lack of confidence, fear of making mistakes, and can take away the ability to be objective.
If you find yourself sick and tiered, upset of your trading account, it is very likely that the risk management that you use is not good enough. To overcome this you must make a plan. Thing about what you did that got you in the current situation. Once you have identified the mistakes, make a trading plan to correct the trading mistakes, write down on paper how you will avoid them in the future, so that you will not end up in the same situation.
Forgive yourself
Nobody is perfect, we all make mistakes. The most important thing is to learn from your mistakes. There are no perfect traders in the Forex market (or any other financial market). Even experiences traders have from time to time a significant lose.
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Tags: Foreign Exchange, Forex, Forex Articles, Forex Market, Forex Tutorial, FX, Trade, Trader
Posted in General Things About Forex, Miscellaneous Forex |
Tuesday, June 7th, 2011
Know your risk – Risk reward ratio
The risk is part of the Forex trading. Every trader has his own risk tolerance level. He must know how much he can assume for each trade. Knowing the risk tolerance level for each trade is a way to limit and to protect his trading account. The best way to know your risk tolerance level is to determine the risk-reward ratio. It is one of the most effective trading instruments of the risk management.
The risk reward ratio is a parameter which helps a trader to determine the risk level for a trade. It shows how much, a trader, risks compared with the potential profit for a single trade. Although it seems simple, a lot of trades neglect this and find out that the losses that they have are big or very big.
Risk Reward Ratio Calculation
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Tags: Foreign Exchange, Forex, Forex Articles, Forex Market, Forex Tutorial, FX, Risk Management, Strategies, Trade, Trader
Posted in Miscellaneous Forex, Risk Management |
Wednesday, May 25th, 2011
In Forex, brokers offer the possibility of margin trading. The margin is actually a loan received to be used only for trading. For example: if you trade with a margin or leverage of 50:1, then for every 1$ from your account balance, you can trade 50$. Of course this has it’s advantages and disadvantages.
Advantages of Margin Trading
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Tags: Foreign Exchange, Forex, Forex Articles, Forex Market, Forex Tutorial, FX, Leverage, Margin Trading, Trade
Posted in Miscellaneous Forex |
Thursday, May 19th, 2011
Successful Forex trading doesn’t consist of how much money you are making, or if you can beat your last record. It doesn’t consist on how much you trade on the volume that you trade or your account balance. Forex trading is all about making the right trades, following a simple trading plan, sticking to the rules that you made earlier (in your trading strategy), Forex is all about discipline.
Do not forget, the more money you have in your account balance, the more likely you are to sabotage yourself and to lose everything, especially when you get upset on your not so good trades. It is absolutely normal to by wrong, but be careful that your ego might come in to play and emotions then take control. You will get angry and you will want to get your revenge on the Forex market. In most of the cases, revenge trading is not good and will end up even worse.
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Tags: Foreign Exchange, Forex, Forex Articles, Forex Market, Forex Tutorial, FX, Losses, Trade, Trader
Posted in Miscellaneous Forex |
Tuesday, May 10th, 2011
One of the most difficult things in Forex Trading is stop loss management. A stop loss order is an order that stops you out of the market with the intention of minimizing your losses when the Forex market is moving against your position.
There is no golden rule to where a SL (stop loss) order should be set, it all depends on your trading strategy.
If your trading strategy is based more on day-trading, your could set your stop loss just below or above the daily high or lows. Therefore if the market moves out of the trend that you are trading and moves a lot in the opposite direction, your account is protected because your trade/trades are closed.
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Tags: Foreign Exchange, Forex, Forex Articles, Forex Market, Forex Tutorial, FX, Losses, Orders, Trade
Posted in Miscellaneous Forex |
Friday, May 6th, 2011
In Forex trading there are some things that you must acknowledged. Bellow are some things that you must never do in Forex trading, things you must avoid while you trade in the Forex market and a few tips for a more profitable Forex experience.
In Forex Never:
- Never overtrade
- Never risk more then 10% of your capital in one single trade
- Never trade without a stop loss order
- Never delete the stop loss order after you opened a Forex trade
- Never open a trade just to get a lower loss average
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Tags: Foreign Exchange, Forex, Forex Articles, Forex Market, Forex Tutorial, FX, Trade, Trader
Posted in Miscellaneous Forex |