1. 21 July 2010
Forex Analysis – EURUSD – 21st July
EURUSD CHART
EURUSD CHART
Trend Direction: Bullish.
Trend Reversal Level: 1.2500
Key Support Levels: 1.2890, 1.2800, 1.2760, 1.2700
Key Resistance Levels: 1.3000, 1.3100
Entry Strategy: Buying dips in an uptrend while market trades above our trend reversal level.
Trade Suggestion: This pair on a technical basis is trading above minor bullish channel resistance line and now pulling back after it tested twice 1.3000 giving us a double top as well. Yesterday prices went as high as 1.2930 and did not sustain above key level 1.3000, which is bit of a concern.
Now we are seeing a pull back on this pair after a failure to trade above 1.3000 level, however this pair might find key support at 1.2800 level, which is a support from minor bullish channel and fib level as well. As on conservative basis we look to go long at 1.2800 levels after that we need price to hold at that level, targeting 1.3100, 1.3300 followed by 1.3500.
Aggressive trade is to go long after the break above 1.2900 targeting 1.3000.
Note: 1.3100 is a significant key level for this pair.
Alternate Scenario: Consider going short if prices break below 1.2800 key support area targeting 1.2760. 1.2700 followed by 1.2500
2. Trend Reversal Level: 1.4940
Key Support Levels: 1.5200, 1.5270, 1.5150, 1.5050, 1.5000
Key Resistance Levels: 1.5300, 1.5470, 1.5630, 1.5960
Entry Strategy: Buying dips in an uptrend above our suggested trend reversal level.
Trade Suggestion: On this pair we have seen a pull back from its high from 1.5471 , which is also a resistance level. As this broke out of the weekly bearish channel, it is now currently testing that broken channel resistance and bouncing off those levels. As we suggested yesterday this level could be a key support to hold prices. Price did exactly that and bounced back.
We also suggested to go short if prices break below 1.5200 targeting 1.5150, price went to that level and found support and reversed and currently trading at 1.5300 level.
Our suggestion is to go long after the break of 1.5300 targeting 1.5400, 1.5470. If price breaks above 1.5470 it will then open doors targeting towards 1.5525 & 1.5725
3, Trend Direction: Bullish. Trend Reversal Level: 0.8630 Key Support Levels: 0.8800, 0.8760, 0.8740, 0.8700, 0.8650 Key Resistance Levels: 0.8850, 0.8900, 0.9000 Entry Strategy: Buying dips in an uptrend above our trend reversal level. Trade Suggestion: This pair has bounced back from it support level 0.8650 and currently trading at 0.8810 level. Yesterday it broke it’s [...]
EUR/USD The Euro again found support close to 1.19 against the dollar on Tuesday and made an attempt at breaking back above resistance in the 1.20 area.
Wednesday, July 21, 2010
Saturday, July 10, 2010
BBC News Business Economy World Edition
IMF raises global growth estimate
The International Monetary Fund raises its world economic growth forecast for 2010 from 4.2% to 4.6%, but downgrades the UK.
Osborne defends OBR independence
Chancellor George Osborne defends the independence of the forecasting body, the OBR, amid reports it revised key numbers.
US releases delayed yuan report
The US Treasury's much-overdue report on China's currency says it is undervalued - but does not mention 'manipulation'.
Canadian employment rises sharply
Canada's employment levels surged by 93,200 in June, a far higher figure than analysts had expected.
UK rates kept at record low 0.5%
The Bank of England keeps UK interest rates on hold at a record low of 0.5% for the 16th consecutive month.
Banks optimism spurs market rally
A market rally in stocks, oil and the euro enters a third day, on hopes that European banks will pass stress tests.
Eurozone rates kept on hold at 1%
The ECB holds eurozone interest rates at a record low of 1% for the 14th month running, as expected.
Plan to change private pensions
The government wants to change the way some private sector pensions are calculated, affecting future income rises for many.
UK house prices wilting in summer
UK house prices have fallen slightly in the early summer compared with the start of the year, the Halifax says.
Manufacturing sees strong growth
UK manufacturing output grew in May at its fastest pace in more than 15 years, official data indicates.
US to access Europe's bank data
The European Parliament backs a new deal to allow US anti-terror investigators to access Europeans' bank data.
Quicker mobile switching planned
Mobile phone users will be able to transfer their number to a new provider in one working day, the regulator says.
Australian employment up sharply
Australia's employment level surged by 45,900 in June, far more than economists had expected, figures show.
Germany trade increases sharply
German imports rise at their fastest rate since the country's unification in 1990, outpacing a sharp rise in exports.
China to tax sales of oil and gas
China confirms that a new tax on sales of primary resources, being tested in Xinjiang, will be rolled out nationwide.
New bridge plan for MozambiqueMozambique's government has announced plans to build a $132m (£87m) bridge across the Zambezi River to help tap coal reserves.
Ageing EU gets pensions warning
Low EU birth rates and ageing populations mean member states must reform pension systems, the European Commission says.
MEPs approve bank bonuses limit
The European Parliament formally approves a deal placing new limits on bankers' bonuses from next year.
Up in smoke: Cuban cigars cut back in response to falling demand
Cuba has been forced to cut its tobacco harvest in response to a fall in demand for its famous Cuban cigars.
Cut consequences
How scrapping quangos will hit one UK town
Stephanomics
Office for Budget Responsibilty: Can it be independent?
Money trail
Anti-terror deal gives US access to bank data
Hewitt on Europe
Spain win on the pitch, but lose economically
Recovery hurts
Why recovery can be bad for you - and recession good
Bogus taxpayers
Illegal immigrants who always pay their dues
The International Monetary Fund raises its world economic growth forecast for 2010 from 4.2% to 4.6%, but downgrades the UK.
Osborne defends OBR independence
Chancellor George Osborne defends the independence of the forecasting body, the OBR, amid reports it revised key numbers.
US releases delayed yuan report
The US Treasury's much-overdue report on China's currency says it is undervalued - but does not mention 'manipulation'.
Canadian employment rises sharply
Canada's employment levels surged by 93,200 in June, a far higher figure than analysts had expected.
UK rates kept at record low 0.5%
The Bank of England keeps UK interest rates on hold at a record low of 0.5% for the 16th consecutive month.
Banks optimism spurs market rally
A market rally in stocks, oil and the euro enters a third day, on hopes that European banks will pass stress tests.
Eurozone rates kept on hold at 1%
The ECB holds eurozone interest rates at a record low of 1% for the 14th month running, as expected.
Plan to change private pensions
The government wants to change the way some private sector pensions are calculated, affecting future income rises for many.
UK house prices wilting in summer
UK house prices have fallen slightly in the early summer compared with the start of the year, the Halifax says.
Manufacturing sees strong growth
UK manufacturing output grew in May at its fastest pace in more than 15 years, official data indicates.
US to access Europe's bank data
The European Parliament backs a new deal to allow US anti-terror investigators to access Europeans' bank data.
Quicker mobile switching planned
Mobile phone users will be able to transfer their number to a new provider in one working day, the regulator says.
Australian employment up sharply
Australia's employment level surged by 45,900 in June, far more than economists had expected, figures show.
Germany trade increases sharply
German imports rise at their fastest rate since the country's unification in 1990, outpacing a sharp rise in exports.
China to tax sales of oil and gas
China confirms that a new tax on sales of primary resources, being tested in Xinjiang, will be rolled out nationwide.
New bridge plan for MozambiqueMozambique's government has announced plans to build a $132m (£87m) bridge across the Zambezi River to help tap coal reserves.
Ageing EU gets pensions warning
Low EU birth rates and ageing populations mean member states must reform pension systems, the European Commission says.
MEPs approve bank bonuses limit
The European Parliament formally approves a deal placing new limits on bankers' bonuses from next year.
Up in smoke: Cuban cigars cut back in response to falling demand
Cuba has been forced to cut its tobacco harvest in response to a fall in demand for its famous Cuban cigars.
Cut consequences
How scrapping quangos will hit one UK town
Stephanomics
Office for Budget Responsibilty: Can it be independent?
Money trail
Anti-terror deal gives US access to bank data
Hewitt on Europe
Spain win on the pitch, but lose economically
Recovery hurts
Why recovery can be bad for you - and recession good
Bogus taxpayers
Illegal immigrants who always pay their dues
Forex Strategy Books
Forex strategy e-books that are listed here provide information on the specific trading strategies as well as the use of particular Forex trading instruments. Basic knowledge of Forex trading is required to correctly understand and use these strategies.
Almost all Forex e-books are in .pdf format. You'll need Adobe Acrobat Reader to open these e-books. Some of the e-books (those that are in parts) are zipped.
If you are the copyright owner of any of these e-books and don't want me to share them, please, contact me and I will gladly remove them.
1-2-3 System — A simple pattern trading system by Mark Crisp.
Bollinger Bandit Trading Strategy — A trading system based on Bollinger bands indicator by unknown author.
Value Area — from The Likos Letter.
The Dynamic Breakout II Strategy — by unknown author.
Ghost Trader Trading Strategy — by unknown author.
King Keltner Trading Strategy — by unknown author.
Scalp Trading Methods — by Kevin Ho.
LSS - An Introduction to the 3-Day Cycle Method — by George Angell.
Market Turns And Continuation Moves With The Tick Index — by Tim Ord.
The Money Manager Trading Strategy — by unknown author.
Picking Tops And Bottoms With The Tick Index — by Tim Ord.
The Super Combo Day Trading Strategy — by unknown author.
The Eleven Elliott Wave Patterns — by unknown author.
The Thermostat Trading Strategy — by unknown author.
Intraday trading with the TICK — by Christopher Terry.
Traders Trick Entry — by Traders Educators of Traders University.
Fibonacci Trader Journal — a journal covering different trading techniques based on Fibonacci indicators, by Robert Krausz. 12 issues.
Rapid Forex — a set of aggressive Forex trading strategies (Rapid Forex) by Robert Borowski and Stephen A. Pierce.
Microtrading the 1 Minute Chart — a small e-book aimed on Forex newbies to teach them the basics of M1 scalping.
BunnyGirl Forex Trading Strategy Rules and FAQ — set of rules for a BunnyGirl trading strategy based on WMA crossing.
The Daily Fozzy Method — by Michael Dunbar.
Forex Trader's Cheat Sheet — real Forex cheat sheet for position entry times/conditions by Quantum Research Management Group.
Offset Trading — a basic Forex news trading range breakout system by Dana Martin.
How to Trade Both Trend and Range Markets by Single Strategy? — by S.A. Ghafari.
A Practical Guide to Technical Indicators; Moving Averages — by S.A. Ghafari.
FX Wizard — essential Forex trading rules by Rob Walton.
FX Destroyer — a description of a rather simple Forex trading strategy, invloving moving averages, parabolic SAR and ADX indicators, by Izu Franks.
A Practical Guide to Swing Trading — a simple and practical guide to the swing trading strategy, by Larry Swing.
Practical Fibonacci Methods for Forex Trading — practical guide to Fibonacci levels with the real trade examples of the Forex strategy based on these levels, by Ken Marshall and Rob Moubray.
Using The Heikin-Ashi Technique — a short but detailed guide to trading using Heikin-Ashi charting technique, by Dan Valcu.
The Day Trade Forex System — an indicator-based strategy with detailed description, chart examples and minor advertising, by Erol Bortucene and Cynthia Macy.
5/13/62 — a revised and updated EMA-based Forex trading strategy explained in the 3-grade language, by Rob Booker.
Not So Squeezy Trading Manual — a description for the rather interesting trading strategy that utilizes indicators package under the same name, by Akuma99.
KobasFX Strategy — a simple MA+MACD Forex trading strategy by Obaseki O. A.
Almost all Forex e-books are in .pdf format. You'll need Adobe Acrobat Reader to open these e-books. Some of the e-books (those that are in parts) are zipped.
If you are the copyright owner of any of these e-books and don't want me to share them, please, contact me and I will gladly remove them.
1-2-3 System — A simple pattern trading system by Mark Crisp.
Bollinger Bandit Trading Strategy — A trading system based on Bollinger bands indicator by unknown author.
Value Area — from The Likos Letter.
The Dynamic Breakout II Strategy — by unknown author.
Ghost Trader Trading Strategy — by unknown author.
King Keltner Trading Strategy — by unknown author.
Scalp Trading Methods — by Kevin Ho.
LSS - An Introduction to the 3-Day Cycle Method — by George Angell.
Market Turns And Continuation Moves With The Tick Index — by Tim Ord.
The Money Manager Trading Strategy — by unknown author.
Picking Tops And Bottoms With The Tick Index — by Tim Ord.
The Super Combo Day Trading Strategy — by unknown author.
The Eleven Elliott Wave Patterns — by unknown author.
The Thermostat Trading Strategy — by unknown author.
Intraday trading with the TICK — by Christopher Terry.
Traders Trick Entry — by Traders Educators of Traders University.
Fibonacci Trader Journal — a journal covering different trading techniques based on Fibonacci indicators, by Robert Krausz. 12 issues.
Rapid Forex — a set of aggressive Forex trading strategies (Rapid Forex) by Robert Borowski and Stephen A. Pierce.
Microtrading the 1 Minute Chart — a small e-book aimed on Forex newbies to teach them the basics of M1 scalping.
BunnyGirl Forex Trading Strategy Rules and FAQ — set of rules for a BunnyGirl trading strategy based on WMA crossing.
The Daily Fozzy Method — by Michael Dunbar.
Forex Trader's Cheat Sheet — real Forex cheat sheet for position entry times/conditions by Quantum Research Management Group.
Offset Trading — a basic Forex news trading range breakout system by Dana Martin.
How to Trade Both Trend and Range Markets by Single Strategy? — by S.A. Ghafari.
A Practical Guide to Technical Indicators; Moving Averages — by S.A. Ghafari.
FX Wizard — essential Forex trading rules by Rob Walton.
FX Destroyer — a description of a rather simple Forex trading strategy, invloving moving averages, parabolic SAR and ADX indicators, by Izu Franks.
A Practical Guide to Swing Trading — a simple and practical guide to the swing trading strategy, by Larry Swing.
Practical Fibonacci Methods for Forex Trading — practical guide to Fibonacci levels with the real trade examples of the Forex strategy based on these levels, by Ken Marshall and Rob Moubray.
Using The Heikin-Ashi Technique — a short but detailed guide to trading using Heikin-Ashi charting technique, by Dan Valcu.
The Day Trade Forex System — an indicator-based strategy with detailed description, chart examples and minor advertising, by Erol Bortucene and Cynthia Macy.
5/13/62 — a revised and updated EMA-based Forex trading strategy explained in the 3-grade language, by Rob Booker.
Not So Squeezy Trading Manual — a description for the rather interesting trading strategy that utilizes indicators package under the same name, by Akuma99.
KobasFX Strategy — a simple MA+MACD Forex trading strategy by Obaseki O. A.
Forex Education
This information will provide you with the basic knowledge, techniques a novice Forex trader should have as you take your first steps in the fascinating world of Forex.
The Forex market has the trading volume of approximately 3 trillion a day. To be in the action you need a computer with an internet connection.
The Forex market is open 24 hours a day, so that you can be right there trading whenever you hear a financial scoop. Unlike the stock market, a smaller market with tens of thousands of stocks to choose from, the Forex market revolves around more or less eight major currencies. A narrow choice means no rooms for confusion, so even though the market is huge.
The foreign exchange market is the largest financial market in the world with a daily turnover of just over $3 trillion! Now apart from being a really cool statistic, the sheer massive scope of the Forex market is also one of its biggest advantages. The enormous volume of daily trades makes it the most liquid market in the world.
It doesn’t take a financial genius to figure out that the biggest attraction of any market, or any financial venture for that matter, is the opportunity of profit.
Forex market, profitability is expressed in a number of ways. Unlike most financial markets, the Forex market allows you to start trading with relatively low initial capital. At Fx Highsummit, you can start trading Forex with as little as $500.00
Forex market doesn’t require large initial investments because it allows you to use leveraged trading. This means that Forex trading has the profit (and loss) potential of tens and even hundreds of percent a day.
What is unique about the Forex market is that any sort of movement is an opportunity to trade. Whether a currency is crashing or soaring, there is always room for speculation, since you always have the option of buying or selling the currency of your choice. Unlike the stock market, you are not limited to speculating on rising stocks, and a falling market is just as good for business as a rising market.
Having said all that, it is important to remember that as profitable as the Forex market is, it still carries all the risks involved with financial trading. You should always be aware of the risk, and never risk money that you can’t afford to lose.
The market is always on the move, and every tiny shift in currency rates can mean profits and losses of hundreds and even thousands of dollars!
Forex market eight most traded currencies on the Forex market:
AUD Australian Dollar
CAD Canadian Dollar
CHF Swiss Franc
EUR Euro
GBP British Pound
JPY Japanese Yen
NZD New Zealand Dollar
USD U.S. Dollar
Forex trading is always done in pairs, since any trade involves the simultaneous buying of a currency and selling of another currency.
When buying or selling a currency pair, each pair has its own Bid/Ask rate, example:
Pair Bid Ask
EUR/USD 1.5419 1.5421
This means you could either Buy the pair at the Ask rate Which means:
Buy 1EUR / Sell $1.5421
or
Sell the pair at the Bid rate Which means:
Sell 1 EUR / Buy $1.5419
But where’s the opportunity for profit?
The currency pair rates are volatile and constantly changing. One way to profit is by buying a pair, then selling it at a higher rate.
The second way is by selling the pair, then buying it at a lower rate.
Trend analysis is based on the idea that what has happened in the past gives traders an idea of what will happen in the future. Although this may seem pretty basic, being able to identify when a pair is in a trend and when it isn't will help you to increase your chances to profit consistently in the Forex market. When you can identify a trend, you can estimate what direction the rate of a currency pair is going to go in. You should exploit the direction of the trend you identify by placing a trade in that direction.
If it’s an uptrend, meaning that the rate is increasing, buying the currency pair will give you a better probability for profit. If it’s a downtrend, meaning that the rate is decreasing, selling the currency pair will give you a better chance of making money.
How do I identify a trend? What are the characteristics of a trend? The simplest way to identify a trend is through the distinct patterns that the price forms. These can tell you if the market is moving in an uptrend or downtrend.
When a trend is taking place in a Forex pair, the price movements start to form peaks and valleys in the chart of that pair, which are easily identified. In an uptrend, the price movements form a series of higher peaks and higher valleys.
In a down trend, the price movements form a series of lower peaks and lower valleys:
It’s important to note that during some trading days the trend is hard to spot, some trading days show no trend (the price movements form a Range), and some time you’re bound to run into the occasional reversal, so this is not a perfectly accurate or 100% reliable indicator for trading.
Trading ranges can be really unpredictable, which is why you should always look for trading trends. It’s a good idea to stay out all together during a range, and get back in only when the markets start to trend again.
Warning: Speculating on Forex rates involves great amount of risk. Be advised that even the most sophisticated traders can't always predict market movements' directions.
If you’ve been at all exposed to the world of Forex you’ve probably heard the word “Leverage” being tossed around. But what exactly is “Leverage”? Leverage is a very important part of Forex trading, and it’s critical that you know exactly how it works and how to use it. It is the term Forex traders use to refer to the ratio of invested amount related to the trade's actual value. Forex brokers usually provide their customers with the option to trade on borrowed capital, so that traders don’t have to invest tens of thousands of dollars for the chance to make any real profit. When you trade at a leverage of 1:100, or X100, it means that for every $1 that you invest in the market, the broker invests $100. As a result, you can control an amount of $10,000 by investing $100.
Fx Highsummit provides traders with the opportunity of trading at up to 1:400 leverage.
It probably won’t surprise you when we say that with greater opportunity for profit comes greater risk. Just like slight fluctuations in currency rates can make you significant amounts of money, it can also cause you to lose your money very quickly. The higher the leverage, the larger the profit that you stand to make and the quicker you might lose your investment. A leverage of 1:400 can make you more money than a leverage of 1:100, but it also puts your initial investment at more risk.
If you trade with a leverage of 1:100 the market would have to move 100 pips against you for your position to be wiped out. On the other hand, if you trade with a leverage of 1:400 the market would only have to move 25 points against you for your position to be wiped out. We recommend first opening a position with a low 1:100 Leverage, and only once you see that you’ve hit a strong trend, consider opening one with a 1:400 leverage.
Remember, Leverage can be a trader’s best friend when used carefully, and his worst enemy when used recklessly. It is a great tool for increasing profits, in fact private traders rarely trade without it, but you should always keep in mind that the higher the leverage is – the higher the risk level involved.
Here is a to‐do list of actions to be taken as you open a trade:
‐ Identify the pair to buy/sell
‐ Decide on the initial investment amount
‐ Choose the appropriate leverage
‐ Consider applying trade limits
‐ Open trade
The Forex market is open 24 hours a day, but what are the best times to make a profit? Even though the Forex market is open 24 hours a day with the exception of weekends, not all hours are as equally good for trading. The reason that the Forex market is open 24 hours a day is that it is made up of different sessions around the globe that between them cover 24 hours. The more markets are active at the same time, the more trades are being executed, and the more action for you to cash in on.
Practice with Virtual Money Use virtual money mode for practice. Our platform provides you with a practice environment. Virtual money mode works exactly the same as real trading mode and uses the same real time rates, with the small difference of no risk involved. We recommend using the practice mode to get to know the platform and gain Forex trading experience. And even after you’ve begun trading with real money, it is the perfect place to try out your trading strategies. There is no point in risking your money to test out a possible theory, when you can do so with the same success minus the risk.
Don't forget FOREX TRADING is a RISKY business.
The Forex market has the trading volume of approximately 3 trillion a day. To be in the action you need a computer with an internet connection.
The Forex market is open 24 hours a day, so that you can be right there trading whenever you hear a financial scoop. Unlike the stock market, a smaller market with tens of thousands of stocks to choose from, the Forex market revolves around more or less eight major currencies. A narrow choice means no rooms for confusion, so even though the market is huge.
The foreign exchange market is the largest financial market in the world with a daily turnover of just over $3 trillion! Now apart from being a really cool statistic, the sheer massive scope of the Forex market is also one of its biggest advantages. The enormous volume of daily trades makes it the most liquid market in the world.
It doesn’t take a financial genius to figure out that the biggest attraction of any market, or any financial venture for that matter, is the opportunity of profit.
Forex market, profitability is expressed in a number of ways. Unlike most financial markets, the Forex market allows you to start trading with relatively low initial capital. At Fx Highsummit, you can start trading Forex with as little as $500.00
Forex market doesn’t require large initial investments because it allows you to use leveraged trading. This means that Forex trading has the profit (and loss) potential of tens and even hundreds of percent a day.
What is unique about the Forex market is that any sort of movement is an opportunity to trade. Whether a currency is crashing or soaring, there is always room for speculation, since you always have the option of buying or selling the currency of your choice. Unlike the stock market, you are not limited to speculating on rising stocks, and a falling market is just as good for business as a rising market.
Having said all that, it is important to remember that as profitable as the Forex market is, it still carries all the risks involved with financial trading. You should always be aware of the risk, and never risk money that you can’t afford to lose.
The market is always on the move, and every tiny shift in currency rates can mean profits and losses of hundreds and even thousands of dollars!
Forex market eight most traded currencies on the Forex market:
AUD Australian Dollar
CAD Canadian Dollar
CHF Swiss Franc
EUR Euro
GBP British Pound
JPY Japanese Yen
NZD New Zealand Dollar
USD U.S. Dollar
Forex trading is always done in pairs, since any trade involves the simultaneous buying of a currency and selling of another currency.
When buying or selling a currency pair, each pair has its own Bid/Ask rate, example:
Pair Bid Ask
EUR/USD 1.5419 1.5421
This means you could either Buy the pair at the Ask rate Which means:
Buy 1EUR / Sell $1.5421
or
Sell the pair at the Bid rate Which means:
Sell 1 EUR / Buy $1.5419
But where’s the opportunity for profit?
The currency pair rates are volatile and constantly changing. One way to profit is by buying a pair, then selling it at a higher rate.
The second way is by selling the pair, then buying it at a lower rate.
Trend analysis is based on the idea that what has happened in the past gives traders an idea of what will happen in the future. Although this may seem pretty basic, being able to identify when a pair is in a trend and when it isn't will help you to increase your chances to profit consistently in the Forex market. When you can identify a trend, you can estimate what direction the rate of a currency pair is going to go in. You should exploit the direction of the trend you identify by placing a trade in that direction.
If it’s an uptrend, meaning that the rate is increasing, buying the currency pair will give you a better probability for profit. If it’s a downtrend, meaning that the rate is decreasing, selling the currency pair will give you a better chance of making money.
How do I identify a trend? What are the characteristics of a trend? The simplest way to identify a trend is through the distinct patterns that the price forms. These can tell you if the market is moving in an uptrend or downtrend.
When a trend is taking place in a Forex pair, the price movements start to form peaks and valleys in the chart of that pair, which are easily identified. In an uptrend, the price movements form a series of higher peaks and higher valleys.
In a down trend, the price movements form a series of lower peaks and lower valleys:
It’s important to note that during some trading days the trend is hard to spot, some trading days show no trend (the price movements form a Range), and some time you’re bound to run into the occasional reversal, so this is not a perfectly accurate or 100% reliable indicator for trading.
Trading ranges can be really unpredictable, which is why you should always look for trading trends. It’s a good idea to stay out all together during a range, and get back in only when the markets start to trend again.
Warning: Speculating on Forex rates involves great amount of risk. Be advised that even the most sophisticated traders can't always predict market movements' directions.
If you’ve been at all exposed to the world of Forex you’ve probably heard the word “Leverage” being tossed around. But what exactly is “Leverage”? Leverage is a very important part of Forex trading, and it’s critical that you know exactly how it works and how to use it. It is the term Forex traders use to refer to the ratio of invested amount related to the trade's actual value. Forex brokers usually provide their customers with the option to trade on borrowed capital, so that traders don’t have to invest tens of thousands of dollars for the chance to make any real profit. When you trade at a leverage of 1:100, or X100, it means that for every $1 that you invest in the market, the broker invests $100. As a result, you can control an amount of $10,000 by investing $100.
Fx Highsummit provides traders with the opportunity of trading at up to 1:400 leverage.
It probably won’t surprise you when we say that with greater opportunity for profit comes greater risk. Just like slight fluctuations in currency rates can make you significant amounts of money, it can also cause you to lose your money very quickly. The higher the leverage, the larger the profit that you stand to make and the quicker you might lose your investment. A leverage of 1:400 can make you more money than a leverage of 1:100, but it also puts your initial investment at more risk.
If you trade with a leverage of 1:100 the market would have to move 100 pips against you for your position to be wiped out. On the other hand, if you trade with a leverage of 1:400 the market would only have to move 25 points against you for your position to be wiped out. We recommend first opening a position with a low 1:100 Leverage, and only once you see that you’ve hit a strong trend, consider opening one with a 1:400 leverage.
Remember, Leverage can be a trader’s best friend when used carefully, and his worst enemy when used recklessly. It is a great tool for increasing profits, in fact private traders rarely trade without it, but you should always keep in mind that the higher the leverage is – the higher the risk level involved.
Here is a to‐do list of actions to be taken as you open a trade:
‐ Identify the pair to buy/sell
‐ Decide on the initial investment amount
‐ Choose the appropriate leverage
‐ Consider applying trade limits
‐ Open trade
The Forex market is open 24 hours a day, but what are the best times to make a profit? Even though the Forex market is open 24 hours a day with the exception of weekends, not all hours are as equally good for trading. The reason that the Forex market is open 24 hours a day is that it is made up of different sessions around the globe that between them cover 24 hours. The more markets are active at the same time, the more trades are being executed, and the more action for you to cash in on.
Practice with Virtual Money Use virtual money mode for practice. Our platform provides you with a practice environment. Virtual money mode works exactly the same as real trading mode and uses the same real time rates, with the small difference of no risk involved. We recommend using the practice mode to get to know the platform and gain Forex trading experience. And even after you’ve begun trading with real money, it is the perfect place to try out your trading strategies. There is no point in risking your money to test out a possible theory, when you can do so with the same success minus the risk.
Don't forget FOREX TRADING is a RISKY business.
Subscribe to:
Posts (Atom)