Diagrams and tables Forex

How do you need diagrams and tables Forex? How to learn to read them and act in accordance with the data that you see on the charts? Here is some information that will help you answer these questions.

There are some quite good free programs for readings of the diagrams in the online forex trading currency. Try, for example., Netdania.

Tables are distinguished by default in 300 units. This is a good start. Time charts show data for 12 days, 15-minute - for 3 days, 5-minute - 24 hours.

You can create a table with all data periods so as to easily switch between them.

What to look for in the first place? Look at the hourly chart to see the full picture. Pay attention to the level of support and resistance line within 2%.

Explore the 15-minute chart, pay attention only to the following:

1. The dominant trend;

2. Stream price ratio to the average price;

3. Maximum and minimum prices, ranging from 00.00 GMT;

4. The highest and lowest prices for W-day period.

So, we assume that hourly chart shows a decrease of currency. Look at the 15-minute. It should confirm the trend (stream price goes down on a sloping line). So, you know the trend that has prevailed in the market.

Does the benefit of the size of invested capital?

The size of invested capital plays a major role in determining the amount of benefits to which a trader can hope for in the online Forex trading currency. Do not hope that, having invested $ 200, you get 20 000 quickly and easily. The main obstacle to this is the inability to cover the costs of tendering, in other words, the trader will not trade big lots, because he / she quickly end margin. And if you exceed the limit of the margin, you get feedback.

Working in Forex, the first thing that a trader should do - protect your investment capital. This is possible only under one condition: if a trader skillfully manages risks, and they do not exceed a reasonable percentage of the insurance deposit, which are at risk.Size reasonable risk ranges from 2% to 4% of the size of the deposit.

If a trader wants to get a greater benefit, he should sell big lots, the size of 100 000 units. But in order to sell these lots, you need a big starting capital of at least $ 20 000, because if pip is worth on average $ 10, you will not want to risk losing $ 200 only because of the small fluctuation in the 20 pip.

Smaller lots require a smaller profit, but also less loss.

3 terms of a successful trader

1. Make your personal opinion about the online forex trading currency market and all that it happens. When I hear that the trader may not think about anything, but simply is an auction, I smile and think that he or an idiot or a liar. In fact, every time you go to the market, you should at least subconsciously guided by forecasts of future price movements. You get the profit is not for what is currently happening in the market, but for what will happen in the future, and if you can not predict possible scenarios of market behavior, you're just a gray mouse in a den of cats.

2. Wait for the confirmation of your assumptions before you enter the bidding. Stories of trade is known a lot of analysts who have become bankrupt even before they were right. Perhaps your prediction is 100% correct, but do not start trading until it is confirmed.

3. Become a good manager. The most successful trader - the best manager. Even if you put 2 good traders in the opposite positions, both come out of the bidding at a profit. Every time you start bidding, guided by the principle: Hope for the best, prepare for the worst. To be successful, you need to become as good an analyst, and an excellent manager

Automated Forex System

If you decide to work in online Forex trading currency, you need to remember that the market for so vast that for one person is practically impossible to trace most of the bidding.

For this reason, programs have been developed, which assists traders in obtaining the maximum profit. The process of becoming an trade through them much easier and gives you the best possible opportunity to translate their strategy.

With this program you will never have to sell yourself. All you need to do is set your program settings. Once you do, you will be able to bid even when you do not stay for their table. The computer does the rest. You can simultaneously manage their business and to trading on the Forex. The program also provides an opportunity to conduct trades in different time zones simultaneously.

Another advantage of automated Forex is that you can trade Forex 24 hours a day.

People are only able to trade multiple currency pairs at one time. You can not possess more than two pairs due to the fact that the physical and mental abilities of a person are limited. But with automated Forex systems possible.

Graphs. Main principles

Charts Forex - a proven way to achieve big profits, but most traders use them incorrectly. Let's look at the main principles of successful technical analysis Forex:

If you look at any chart in online Forex trading currency, you will see the major trends that may hold in the market for months, and if you want to make a profit, you need to understand for themselves the following fact: most of the big trends start with the breakthrough and reach new heights, or the bottom, and you should follow these trends. Most traders do not do that and lose. They wait until the price returns to its original place, but this does not happen. Most likely, the trend would continue its movement in one direction, follow it.

Be patient, using charts Forex. You will not receive remuneration for the number of attempts.Professional traders enter the market 3 times a month and receive a triple profit. Wait for the right moment!

If you decide to take the trend, always check the current price level, its direction. Never trust someone who says, if the price movement may be calculated using a mathematical formula! This formula does not exist.

4 facts about the movement of prices in the Forex

You want to make a profit with online Forex trading currency? Then you need to know why prices in the Forex are in motion. Price movements in the Forex is conditioned by millions of reasons, but you need to know the most basic facts about the movement of prices in order to understand the nature of profit:

1. Movement of prices is unpredictable. Those who believe they can predict it in advance, are mistaken. If you are trying to do this, then you can not predict the price you are hoping or guessing, and it will lead you nowhere. But the fact that you can not predict prices, does not mean that you can not make a profit.

2. Software for the calculation of price behavior does not work.You meet a lot of programs, which the developers claim that the program uses mathematics to predict price movements. But if the market is not possible to predict how this will help mathematics?

3. Variability in the market in a short period of time, chance, and the lines of resistance are not acting in the short term. If you decide to start scalping the market and to short-term trading, it is likely that all the odds are against you.

4. Market Forex - a market probabilities, not certainties.

Earn a living with Forex

People often wonder is it possible to live at the expense of profits in the market Forex. One can say that it is probably impossible if you do not understand anything in trading and managing funds. If you have experienced success in the Forex and understand how to handle money, you can not only earn a living, but also to become rich.

To understand how the Forex, take a calculator. You can buy it in almost every shop. Then you can open a deposit on a demo online Forex trading currency and join the bidding. Follow the numbers that indicate the losses and gains, find out what a "pip". Then sketch out a purely hypothetical plan.

Once you're a bit familiar with the principles of Forex, you need to know what the expectations are realistic for a given period of time. Then decide what amount you can take a chance. Some believe that 2% will be enough. This figure is based on the belief that the Forex not a high ratio of risks and benefits. We assume that this is a good number. Then suppose, how much you can lose the amount that you have available. How much you earn pip?

4 fatal errors Traders

Mistake number 1: the lack of technique

If your goal - to become a successful trader, you must be an accurate method of trading, which will help to understand the market. Do not think that will help you intuition. If you do not have technique, you're not even able to identify trends.

Mistake number 2.: Lack of discipline.

Once you have developed your own method, you must cultivate in ourselves the discipline to follow this procedure.

Mistake number 3: unrealistic expectations.

Yes, you may receive above-average profits from trading in the online currency market Forex. But it is too difficult to do without assuming the risks of higher than average. The purpose of the trader in the first year of its operation should not be losing money. In other words Aim at 0% profit in the first year. This goal will be the most realistic.

Mistake number 4: The lack of patience

In any time interval in the Forex, there are only two or three good opportunities to earn. Very often, due to the fact that trade can cause excitement, you will feel that I missed a very important and a good bargain if you do not sell or buy that lot. As a result, the quality of your deals go down and trade will go beyond your means.

Introduction to Forex

Forex - foreign exchange market, where foreign currency trade - selling and buying spree.

Forex - the international arena for speculation in foreign currency, which has no central location for trading and exchange.

Forex - a huge market with a turnover of trillions of dollars per day and the biggest investors: banks, hedge funds, investment companies, etc.

Forex is open to individual retail investors, Forex traders through the services provided by Forex brokers, which provide access to market and execute orders of clients.

Forex - a market that is open 24 hours a day every day and online trading, except holidays.

Forex trading allows 150 pairs of foreign currencies, the most common of which are EURUSD, GBPUSD, USDJPY, AUDUSD, USDCHF, USDCAD and GBPJPY.

Forex trading is based on fundamental and technical analysis.

Forex allows retail investors to conduct their business without leaving home.

Forex - a tempting financial instrument, which can take possession of any person with any education.

Forex - the type of market in which trade can be automated on-line expert advisers without the involvement of human resources.

Learning the Forex Market

Online Forex Trading Currency market can seem both complex and simple. The simple part of the problem - how to earn money, but the introduction of this problem in life can hide a huge complexity. Ideally, to all those who want to try your luck at Forex, must undergo a corresponding training. It is important to understand the ways and methods of commerce, before you start to deal with it. Even if you are an experienced trader, there is something that can and should be corrected in your technique and strategy.

Market Forex - it is certainly not a game for a beginner in this field. In fact, many people who earn on the Internet, losing in Forex, and very few people earn millions annually. The difference between them lies in the Forex acquired skills and strategies used by the trader.

Forex offers a tremendous opportunity for a novice to succeed financially. But you certainly should first study the market.

1. Examine the price of the currency.

2. Watch for trends.

3. Proceed from the present state of the economy.

3. Use long-term strategies.

To succeed at Forex, you need to consider trade strategy and move on, reaping the fruits of their work.

5 Tips on trade in volatile market

1. Be picky when you start bidding. Avoid starting a large number of trades simultaneously. We must remember that during the volatility in the market trends, your losses can be quite large.

2. Reduce the size leverage. You may incur substantial losses.You should always keep in mind what the effect will be leverage the result of trades. Enclose smaller deals.

3. Reinforce discipline. Always follow the pre-selected strategy. At a time when the market dominated by instability, it is especially important. Adhere to established stop price, otherwise you risk losing too much.

4. Stricter stop price. Many traders are reluctant reinforce the stop price, considering that the large fluctuations in prices may lead to a withdrawal of their positions. If you previously installed the stop price at 80 min, advised to reduce it to 50-60. So you probably defend its position. There is a high probability that the trend will continue to drop. Thus, the stop price will bring you out of bidding before you lose too much.

5. Be ready for anything. You should know what caused the instability in the online forex trading currency market, that would be prepared for unforeseen circumstances and, accordingly, to model their strategy.

How to choose a broker

In order not to fall into one of the many scams with brokers, you should ask the following questions when choosing a broker:

1. Ask the broker to which organization he belongs and the regulator in any country it is registered. Online Forex Trading Currency market has a very small degree of control, unlike stock markets, stock markets and commodities.

2. Find out how quickly the broker executes an order. There is no doubt that the warrant must be executed within a second or two after its release. Moreover, modern technologies contribute to its rapid implementation.

3. Inquired whether the agent is attached to any bank or credit organization. The activities of banks are well regulated, that will give you confidence and peace.

4. Have your agent call the country in which it is a corporation. Appropriate response to you serve any country, with clear laws governing banking. Wrong answer - in any other country.

5. Ask what type of broker is the firm.

6. Ask your broker what the minimum amount of deposit insurance. This is a very important question.You need to be sure that you have enough money to your position was not closed at the height of trading, because you ended funds.

Combat losses

Traders who want to be successful, must believe that they are responsible for the results of bidding - as all profits from them, and for the losses. They must learn how to deal with losses, because losses - part of the everyday life of a trader. Every trader must learn to accept defeat, and, raising his head high, move on.

6 secrets to a successful trader in the online forex trading currency. 1. Find method. 2. Be disciplined. 3. Get experience. 4. Accept responsibility. 5. Adjust to losses. 6. Take a big profit.

People who curse manipulators, insiders, them big guys, programs, lobbyists every day, doomed to failure even before you start bidding. They are already convinced that the market is closed to them, and they have no chance to earn it. You should know that each victory or loss - is your handiwork.

You should also have the fortitude to admit that the losses - part of the game. Some are very difficult to accept even this simple fact.

If you're hoping to perfect trades, you are guaranteed to have failed. You need not be perfect, you need to be better than others.

Be honest with yourself. Most fights at a loss, saying the truth to others and sometimes even themselves.

You are not taught this at university

You have studied economics at the University? Then you should already know a lot of economic terms, and that's good, because you must have a theoretical base.But there is one problem. University professors never teach you how to earn money, to be the best at work or achieve market success. That is, you can not get practical knowledge. But we should not despair. You need only know at than concentrate their Force:

1. You really can earn a lot of the online forex trading currency markets. Have you talked about this at least one professor? Probably not, because most professors, theorists, and not practice.

2. Securities market - not the only market. There are plenty of different markets: the stock market, bond market, currency market, the market of goods, etc. The biggest of these is the currency market Forex.

3. Your mind is more important than tools. The classes in economics you learn a lot of formulas, calculates the amount of current and future bills, the value of securities, etc.Finances - it figures, formulas and analysis, right? No, correct. The most important instrument of labor is your brain! Market - is the interaction of personalities, and to understand this interaction, it is necessary to examine the collective psychology.

Introduction to fundamental analysis

There are two main types of analysis on the online forex trading currency market Forex:fundamental and technical analysis.

In simple terms, fundamental analysis - an analysis of economic and political conditions that may affect the price level. Forex traders using this type of analysis rely on news about the state of the economy, politics, the level of inflation, interest rates and unemployment.

Having a common picture Forex, traders often transferred to the technical analysis, in order to plan entry and exit their trades.

Forex market in many ways resembles the other markets and is subservient to the influence of the laws of supply and demand, which also dictated by economic conditions.

National governments publish a variety of economic indicators, which are considered the main features of the economic health of the country, that is, all sectors of its economy. Virtually all economic indicators go out once a month, some once a week.

The main indicators in the Forex market is the data of the International Trade Commission, and interest rates, but traders use the same consumer price index, the index of industrial prices, the index of expectations of purchasing managers and retail sales.

Demo deposit

Many successful online Forex currency traders find that any trades "on paper" from time to time can be very useful and profitable.

Problems of traders appear when they start to lose the deal, one after another. Although the loss - is part of the everyday life of a trader, they will always be hit and you will always have a desire (even on subconscious level) to compensate for the loss so quickly. As possible. This means in most cases, that you immediately return to the market and once again lose the deal.

But it is wise to make the following transactions "on paper". In this case, you should imagine that enters into this transaction and do all the operations, but only in writing. You will learn the market indicators, open position, set the stop price and transact.

You can win or lose out but it will not make much difference, because you have made a deal "on paper". However, the importance of such a transaction will consist in the fact that it enables you to collect your thoughts and leave behind a previous unsuccessful transaction. After that, you are ready to leave the fake trades in Forex trading and return to this trade with victory in mind.

Index average directional movement

Watching the pair EUR / USD rose up, you still desperately seized the opportunity and bought. But now after the next increase, the price of this pair started to decline, and you think seriously about whether there is a way to measure the strength of the movement to advance to protect your profits. Yes there is, and it is called the average directional movement index.

Average directional movement index was developed by JW Wilder, and is intended to assess the strength of the current trend, regardless of its direction. This technical indicator in the online forex trading currency does not indicate the direction of a trend, and its strengthening or weakening.

Correlation in the Forex market

Now consider the currency pair USD / JPY and EUR / USD for example highly negative correlation. Although both of the pairs there is the U.S. dollar, it appears in different positions of each auction. However, in one of the pairs of the dollar is bought and sold in another, was caused by a negative correlation.

For comparative analysis of the correlations in the online forex trading currency market Forex, is not advised to compare the currency, which are presented in pairs more than once. Comparing the two pairs of currencies, you will receive a sum of four currencies, which will affect their relationship. To avoid the overstatement of one currency, it is important that each form of currency in the pair appeared only once, regardless of whether you are selling or buying a currency. Thus, you can create a unique relationship, which will help you to understand the relationship between the two pairs of currencies. By learning to do an analysis of the correlation, you will have the opportunity to develop unique trading strategies. But in order to understand the full range of opportunities provided by the analysis of correlations in the currency market Forex, you need to carefully examine the methodology and technique of the analysis.

Correlation

In the language of statistical correlation - a correlation between the two units, calculated for a certain period of time. Correlation coefficients measured in: from -1 (perfect negative correlation) to 1 (perfect positive correlation). A positive correlation implies that the two units move in one direction, the greater the correlation, the more clearly and accurately traced the data traffic. Conversely, a negative correlation represents a reversal, where the ratio of two units expressed by a movement in opposite directions.

It is important to understand that the online Forex trading currency market you are buying or selling the currency pair as a single unit. A pair consists of two different currencies, and their price is based on the price of one currency divided by the price of another. Technically, you are making two trade deals when trading in Forex. You buy one currency and at the same time selling another. It is therefore logical to consider buying and selling currency pairs, as two parallel transactions.

If compare some of the most popular currency pairs on Forex, you would immediately notice the similarity in their trajectory. Eg., EUR / JPY and EUR / USD /

There is a simple explanation: in both pairs you buy Euros and sell the other currency.

Quotations

Many newcomers to the online Forex Trading currency market immediately scared of large amounts of data on the market. In fact, this is the most common barrier to newcomers. Quotes on Forex is very short, but contain much useful information. The following is an explanation that may mean quotation.

Forex quote is always based on any pair of currencies, of which one currency you are selling, and buying another. Identifies two prices: one for selling and one for the purchase. If you read the quotation, it might look like this: USD / JPY 106.52/56.
The first currency of the pair is called the base currency, the second - quoted. The base currency is always equal to 1 (in this case, 1 U.S. dollar). Number of quotes indicates the number of quote currency (Japanese yen), which you can buy for $ 1.

A number 106.52/56 - this is an abridged version of two numbers: 106.52 and 106.56. A smaller number - this is the price the buyer, more - the asking price. Price buyer shows how much a dealer will buy the currency. Price seller reveals how much does the dealer wants to sell the currency.

The difference between the buyer and the seller is called the spread, and each part is called the pip 0,01. In our example, the spread for the pair USD / JPY is 4 pip.

Easy money

Easy money - another reason why people are so attracted by the Forex market and trade on it. Many people think that everything happens as in television, where the hero of the film turns into a millionaire overnight. Seeing how easy film heroes are traded on the exchange, many are seriously thinking about that, too, become a trader and invest some insignificant amount of money to suddenly become rich.

In fact, the very process of online forex trading currency is not complicated, and the market is open to anyone who wants to work. But the main reason for your entry - an exaggeration of income, but it's not easy to do in Forex.

In reality, benefit or advantage to obtain a continuous process very difficult. Permanent profit includes a long learning, stability, restraint, dedication of himself and many other qualities that are not so easy to acquire.

Education is the foundation of any business, work or type of service, unless, of course, you want to succeed. Market - in itself a great teacher who teaches each day traders on how and what to do. At any time the market may turn you back, and what you already know will not help. So you never finish learning.

Margin Trading

FOREX FX market participants can transact and trade on the market, using the insurance deposit, that is engaged in so-called margin trading. Margin trading consists of two stages: first, sell the currency (or buy) at one price and then buy (or sell) at a price.The first transaction is called opening the position, the second - the closing position. When the party opens the online FOREX trading currency market position, it does not make delivery of currencies in reality, and makes a deposit insurance guaranteeing compensation for losses. Once the position is closed, the deposit goes to the participant in the market back. Recalculates the profit and loss.They usually make up the equivalent amount of deposit insurance.However, deposit insurance can be much less than the amount used by a party for the opening position.

Let us consider in detail the stages of margin trading: eg., According to forecasts the Canadian dollar will strengthen its position in relation to the U.S. dollar. You buy a cheap Canadian dollar and are going to sell it more expensive after the price increase. Thus, opening the position will be buying the Canadian dollar, and by closing - follow it for sale.

Leverage

Leverage - is the ratio between the size of investment and the actual cost. Leverage size in 1:100 means that the trader can buy a Forex contract size of $ 1000, paying $ 10 in the online forex trading currency.

Before you allow to make a new deal, the system checks for the presence of the trader's minimum insurance deposit required to open a new contract. If funds are not sufficient to open a new contract, the platform will not allow any trades, except to close existing ones.

Start new auction is displayed in the column "Used Margin".

Used Margin - deposit, temporarily withdrawn from market participant to cover the losses which the participant may incur as a result of trades. When the bidding stopped, he comes back.

The rest - the reasonable margin.

Available margin limits the size of the positions offered by a trader, and extends to the case, if the trader receives feedback.

When the balance of your account is compared with the stream of used margin because of losses, you get feedback, and brokerage platform will start eliminating all your open positions to make sure that you do not spend more than that invested.

Risk Management

Come out from bidding on reaching a certain goal. Limit orders allow traders to stay in time and leave the market after a pre-determined features. Limit orders establish the discipline of trading techniques, allowing traders to set limit on the desired benefits and exit trades. They are also exempt traders from the need to monitor the market for days to fly at the screen.

Restriction losses. The command "stop price" serves the same purpose as limit orders, allowing investors to set a withdrawal from bidding for losses. Thus, investors can control their risks. Set the command "stop price", you will know the level of potential losses.

How to set the level of limit orders and stop prices. It depends on how much risk you are willing to go. Council does not have a stop price is too close to the normal market price, as the slightest fluctuations in the market could trigger the warrant. The same applies to limit orders, which should reflect rational forecasts for profits, based on market activity.

In the online Forex trading currency market is always there, because currencies are unpredictable by nature, and this is one of the shortcomings of the market.

Mini Trading

If you are new to trade online forex trading currency, then you probably want to start trading on the Forex mini deposit. Though different brokers different minimum amount required for opening deposit As a rule, you will pay about $ 2 500 or more. But a novice in this area can open a mini deposit from $ 250.

The standard deposit is needed for the size of trades in 100 000 the lot, while the mini deposit allows you to trade lots sizes of 10 000.

Mini Forex deposit involves the use leverage at the conclusion of transactions, that is, you are trading more money than you have in your account. Again, the size leverage varies depending on the broker, but it averages between 200 to 1.

So what does this mean? Assuming that the minimum necessary to purchase the lot with leverage from 200 to 1, is 10 000, you can trade with $ 50 ($ 50 X 200 = $ 10,000). If your deposit is $ 250, you can buy 5 lots.

This, of course, very elementary explanation, but the main thing that you need to understand - even novices who do not have a large start-up capital, can trade in Forex, without incurring large losses and not making a big investment