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Understanding The Standard Contract Size...

When trading a currency pair, the standard contract size is called a “lot”. A lot can have different values for different currency pairs. At present, the major currency pairs have the lot value equal to 100,000 units. But 100,000 of what? When we buy, we give money for goods. When we sell, we get money for goods. But with currencies, we buy and sell simultaneously since we get one currency for another one. This is why it is common practice to consider that we get the first currency of the pair (base currency) wehn we buy and give, respectively, the second currency (quote currency).   A standard lot of USDCAD is $100,000 US dollars. if we buy one...

Understanding The Standard Contract Size
posted on: Oct | author: Ella

Money Management

The leverage basically gives a trader the possibility to control a higher capital, than his real start up capital. That way he is able to control larger lot size and to make higher profit, if the trade goes in his direction. But at the same time he is taking higher risk, if the trade goes against him. Resuming, leverage is a powerful too but it should be used by traders carefully!   Example: EURUSD, 4 percent per trade risk level, $1000 account size, 40 pips stop loss.   Well, let us assume that you want to trade EURUSD using Support Resistant Strategy and that your account size is $1000. First of all you need to define how much...

Money Management
posted on: Jul | author: Ella

Financial and Sociopolitical Factors That Forex Depends on...

Financial factors are vital to fundamental analysis. Changes in a government’s monetary or fiscal policies are bound to generate changes in the economy, and these will be reflected in the exchange rates. Financial factors should be triggered only by economic factors. When governments focus on different aspects of the economy or have additional international responsibilities, financial factors may have priority over economic factors. This was painfully true in the case of the European Monetary System (EMS) in the early 1990s. The realities of the marketplace revealed the underlying artificiality of this approach.   The role of interest rates. Using the interest rates independently from the real economic environment translated into a very expensive strategy. Because foreign exchange, by...

Financial and Sociopolitical Factors That Forex Depends on
posted on: Jul | author: Ella

Improve Risk Management and Discipline...

Risk Management is extremely important for a trader. If you want to achieve success, you need to adopt a disciplined mind about trading and improve your risk management rules as much as you can. You shouldn’t risk more than 2% of your account on a trade. This way you’ll be more relaxed because you know that if you lose money on a trade that’s not the end of the world. Besides this, if you have a good system or strategy, you need to have the discipline to stick to your rules. Be Patient and Realistic: You need to be patient and have realistic expectations about the Forex market.The truth is that Forex is a difficult market, and unless...

Improve Risk Management and Discipline
posted on: Jun | author: Ella
Best Hours To Trade Forex

Best Hours To Trade Forex

posted on: Jun | author: Ella

Since the Forex market is open 24 hours a day, a trader can’t track every single movement on the market. It’s crucial for a trader to know when he can expect high volatility, so that he can implement his strategy on the most effective way. If you’re trading using daily charts, the best period to analyze Forex is around 5pm EST because that’s the rollover period. If you’re trading on shorter time frames, you must know when you can expect more volatility. The most important Sessions on Forex are: The Asian Session (7pm – 4am EST) – During this period, you can successfully day trade especially if you trade the yen. USD/JPY is a good choice if you plan to trade on this session. This period is not as volatile as the US session or the European session, but it’s possible to trade it and achieve a good performance; The...

Why Do Most Forex Traders Fail?

Why Do Most Forex Traders Fail?

posted on: May | author: Ella

It is a sad fact that 90% of traders fail, and many very quickly give up. Why? When I went through a phase of losing trades I treated it as a temporary setback and went back to the drawing board. I analysed the reasons of my failure and I sought the guidance of Top Traders, Mentors and Coaches to put me back on the path of success and profitability. In my opinion the high rate of failure for a new trader can be related to the six major obstacles that a trader faces, which are summarised as follows – 1.Poor Skills 2.Lack of adequate capital 3.Setting unrealistic targets and goals 4.Lack of Patience 5.Lack of discipline 6.High risk aversion. Are You Struggling To Make Profit In Your Forex Trades Learn A Proven Steps To Succeed This is a revolutionary tested and trusted strategies that turns a newbie to a Successful Trader. Learn The...

Trading System Setup

Trading System Setup

posted on: Apr | author: Ella

It seems that everywhere you look, you see advertisements for software promising accurate buy and sell signals and profits with every trade.Just have a look at some captions of the adverts I have seen!   “I’ve Finally Cracked the Forex Code” “ Make thousand pips every month” “ Trade Forex with a secret formula that only a handful of Traders use”   The list is endless.. These so-called killer systems don’ t come cheap, costing you thousands to buy. However with just a little bit of effort, you too can “crack this secret code” yourself.   Once again let me assure you, from my experience and knowledge of being a trader for the past 12 years, that there is “NO Secret Code”, “NO Killer Systems”, “NO Holy Grail”, and “No Unique Discoveries”.   In my opinion most of these adverts are no more than scams. It may not make...

Overcoming Trading Fear

Overcoming Trading Fear

posted on: Apr | author: Ella

How do you define fear? “A strong emotion caused by anticipation or awareness of danger, it implies anxiety and usually the loss of courage.” This definition of fear is useful in helping define the issues that traders face when coping with fear. The reality is that all traders feel fear at some level, but the key is how we prepare to address our concerns related to taking on risk as a trader.   Mark Douglas, in his book, ‘ Trading in the Zone’ , says that most investors believe they know what is going to happen next. This causes traders to put too much weight on the outcome of the current trade, while not assessing their performance as “a probability game” that they are playing over time. This manifests itself in investors getting too high and too low and causes them to react emotionally, with excessive fear or greed after...

Candlestick Insight

Candlestick Insight

posted on: Apr | author: Ella

In order to create a candlestick chart, you must have a data set that contains open, high, low and close values for each time period you want to display. The hollow or filled portion of the candlestick is called “the body” (also referred to as “the real body”). The long thin lines above and below the body represent the high/low range and are called “shadows” (also referred to as “wicks” and “tails”). The high is marked by the top of the upper shadow and the low by the bottom of the lower shadow. If the stock closes higher than its opening price, a hollow candlestick is drawn with the bottom of the body representing the opening price and the top of the body representing the closing price. If the stock closes lower than its opening price, a filled candlestick is drawn with the top of the body representing the...

Forex Trading Truth

Forex Trading Truth

posted on: Mar | author: Ella

Many traders have had similar experiences to the one above; they think that by trying enough trading systems and forex indicators, eventually they will hit upon that one that is their automatic ticket to consistently profiting in the markets. This belief is exactly what causes many traders to blow out their accounts time and time again only to find themselves full of frustration and confusion. Simply put, there is no ‘free lunch’ in trading, still, many traders think by finding that one great trading system or indicator they can sit back and watch the money roll on. The truth is that nothing that is fully systematic will ever be a truly effective way to trade the forex market because the market is not a static entity that can be tamed through black box mechanical systems. It is a volatile beast that is driven from human emotion, and human beings...

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