A successful trader = money + motivation

If you want to become a top Forex trader, you will soon find out that you need very much to learn. It is very difficult to get a permanent income from trading on the Forex, but the more experience you gain in this area, the easier you will be given to it.

That's why you need the two most important things to become a successful Forex trader: money and motivation.

Let's start with money. Obviously, you need a small capital to start, but you also have a reserve, because practically everyone lets their seed money to the wind in the learning process.

That's okay, because you get so valuable experience. The loss of money - this is not the most pleasant adventure, so you'll be motivated not to lose them in the future, and will use more stringent brake application and good management techniques means.

You need to understand and accept that the majority of traders hours testing different strategies before they achieve success and possibly lose a lot of money. Therefore, you should not deviate, if at the very beginning you will lose a certain amount of money, because if you spend enough time studying their strategies, and you have the desire to win, why not become a successful trader in the online forex trading currency market.

Can there be trading on the Forex without technical indicators?

If you talk to Forex traders, you will know that the majority uses technical indicators when making decisions about bidding. Does this mean that you should have a basic knowledge of the technical indicators to profit from online Forex Trading currency? Not necessarily.

Technical analysis, of course, brings many benefits, and many traders were unable to achieve success if it had not watched their favorite indicators, but you can become a successful trader without it.

You can guide the actions of fundamental analysis, for example. To use the data on the current economic situation and forecasts for the future.

Another method - the use of daily news Forex news. This method is a bit complicated, but feasible.You can guess the wave of market volatility after the announcement of news.

And if you do not want to base their trading on fundamental analysis (both short and long term), make decisions in accordance with the level of prices. In the end, it is the price indicates the processes that occur with the currency, and you can predict the direction of its motion.

Three strategies for breakthrough

Strategy breakthrough - one of the most popular methods of online trading currency among Forex traders. Breakthrough in the following way: you expect the strengthening of prices in a narrow fluctuation band established and in position when the price breaks this limit.Given above said, can use three strategies:

1. Consolidation prices. This is the simplest form of trading using a breakthrough, because its use does not require any technical indicators. You need to wait for the period of low volatility when the price is in a very narrow margin of fluctuation. You buy a currency if it breaks upward price, and sell if the price is quite the opposite.

2. Linear Bollinger. Linear Bollinger are an effective tool to identify breakouts. All you need to do is to follow the upper two lines until they begin to converge, and one of them does not intersect, and then take a position.

3. Exponential moving average. This strategy involves the use of exponential moving averages, namely, 5, 20, 50 and 200 between essays. Wait for the convergence of these indicators, and short essays, and take up a position in accordance with the direction of the breakout.

Breakthrough Strategy

Forex online currency trading with breakthroughs - the most common of trading strategies, bringing high profits. That strategy is simple to understand does not mean that she can not bring permanent income, since the breakthrough strategy used by many successful Forex traders.

The strategy is based on the condition that if the exchange rate fluctuates within a certain pair of very narrow corridor, it will continue to move in the direction of the breakout. So, to keep a profit, you need to install the cases where the price of the currency pair were in a narrow range, and then place orders to sell and buy a little away from the current limits to reach a breakthrough.

In addition, if you want to find the optimum position, you can use technical indicators. Eg. You can use the 30-minute chart, which displays 15, 50 and 100 times the moving average.

As soon as the auction consists of the narrow limits, and all three exponential moving averages smoothed, you can be confident that a breakthrough will happen soon. It's like a volcano, which is about to explode.

This strategy is good because it works effectively in different time frames.

Types of technical indicators

There are 4 types of technical indicators in online Forex trading currency:

1. Indicators of the trend. These indicators are used to indicate the direction of the trend. They can be very useful, because the main rule of trading on the Forex market is "always go for the trend, not against it!". These include such indicators as the right to increase the stock value, convergence / divergence of the moving average and moving average.

2. Momentum indicators. Momentum indicators or force used to measure the speed or power fluctuations and changes in direction. This oscillating indicators showing overbought and resold position. Eg., An indicator of price points, the relative strength index, an indicator value of the security, to detect speculation on it.

3. Indicators of volatility. These indicators provide indications of changes in market volatility can be expected from their name. This average true range and the lines (bands) Bollinger.

4. Indicators of volume. Used to denote the volume of trades of certain currencies. Indicators of volume may be useful in confirming the direction of the trend or may signal a breakthrough. These include such indicators as the Cash Flow Chaikin, the index of demand and the indicator OBV.

Why the Fibonacci numbers are sometimes useless?

Every Forex trader in online forex trading currency needs to have an idea of the analysis of the Fibonacci and the main level, which need to constantly monitor (50% and 61.8% levels). Charting the course of these levels, you will be able to understand on what prices you should target when there are fluctuations in prices.

Eg. If the fluctuation of prices was 1000 pip (from its lowest to the highest point), and the price began to go back down to their previous positions (500-pip), then you need to quickly close the position.

However, some traders prefer to wait until reaching the level of correction and open a new position in the direction of a new trend. In this case, the analysis of Fibonacci little can be useful. While there are many examples where, having reached 50% or 61.8% level, the price returns to the starting position, unfortunately, there are many examples where the price of ignoring these levels and passes them.

So, despite the fact that the Fibonacci numbers can serve as effective tools for identifying the points of exit their trades, these numbers are absolutely should not be relied upon if you are looking for an entry point to the current bid.

What is a rollover?

In the online Forex trading currency market, all deals must be concluded within two business days. The term "rollover" means a position closing price today and the opening of the same position at the price the next day that shows the difference in interest rates of two currencies.

In the international banking practice, the broker automatically replaces the previously open options position with a new long-term periods of performance at 17.00 Eastern Standard Time.

Rollover involves the sale and purchase of foreign currency in one working day. Eg. For transactions concluded on Monday for a period of performance is the environment.

However, if the position was opened on Monday and lasted the night, the period of performance will occur on Thursday. Exception is a position opened on Wednesday. Under the rules of the time of performance should come on Saturday, but since banks are closed on Saturdays, the value date is assigned on Monday. That is because the output positions open on Wednesday, are more profitable.

Transactions value date that falls on a holiday, also bring additional benefits. Forex traders can make profits with rollovers, depending on the direction of their positions and the difference in interest rates involved currency pairs.

Trendline

Trend line in online forex trading currency - a straight line that connects the significant high and low points on the graph to illustrate the levels of support and resistance.

Support Line - a line connecting the lower points on the graph.Resistance line - a line that connects the highest point on the graph.

Effective to form a trend line, requires a minimum of three points.

12.1 The numbers show the number of lines of support and resistance. While there are no exact statistics about the effectiveness of the use of trend lines, many traders recognize that their use can be profitable when trading with 5 -, 10 - and 20-minute charts.

You can use the tench trend as follows:

1. Buy with support. This is a simple procedure. Once formed the support line, buy when prices fall in support of the trend.

2. Sell at resistance. Also, a simple method: to sell the currency as soon as the established line of resistance and confirm the trend of falling prices.

3. Sell on the breakout below support. Once established support for the lowering of prices below the support level is a signal of weakness.

4. To buy the breakout above the resistance level.

Fibonacci numbers and market analysis

Fluctuations in the online forex trading currency market - is not just a war between supply and demand, because prices have had an enormous influence opinions, expectations and estimates of people. Studies show that the market behaves in a certain pattern, because human behavior is also subject to geometrical laws, even if they themselves do not understand. Forex market traders use Fibonacci numbers as the level of support and resistance:

Level of support Fibonacci - 0.236, 0.382, 0.500, 0.618, 0.764;

Resistance Fibonacci - 0, 0.382, 0.618, 1.000, 1.382, 1.618.

Since a very large number of traders is guided by these indicators in decision-making, they play the role of programming expectations. Traders also use the Fibonacci extension levels as an indicator of the level of realization of profit.

Virtually all schedules laid down tools for measuring the level of resistance and Fibonacci extension. In order to apply Fibonacci to your schedules, you should be able to recognize the highest and lowest point of sales. The highest point - a Japanese candle with no less than two peaks on either side.Lowest point - a Japanese candle with no less than two minimal on the left and right sides.

Fibonacci

Recently, the Fibonacci numbers was widely disseminated among Forex traders, due to high accuracy in predicting turning points in the market. You can use Fibonacci numbers as a tool for forecasting and market analysis in online forex trading currency.

Leonardo Fibonacci was a famous Italian mathematician, who discovered a simple sequence of numbers, formed coefficients.The sequence of Fibonacci numbers is as follows: 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89. This sequence of numbers displayed, starting with 1, followed by 2 plus 1 +2 to get 3, the third digit. Then, 2 plus 3 to get 5, the fourth digit, etc.

If you measure the ratio of any number to the next larger number, you get 618. Eg., 34 divided by 55 equals 0.618.

Ratio of any number of standing in front of a large number is 62% (Fibonacci correction level of prices).Reversible value of 62% is 38%, and this factor is also called the level of Fibonacci price correction.

A study conducted by mathematical psychologist Vladimir Lefebvre, showed that people think through the positive and negative ratings on the coefficient, which reaches phi. That is, the coefficient of 61.8% indicates a positive evaluation, and 38.2% - a negative, and Fibonacci numbers embedded in the psychology of the trader.

Forex Trading Systems

The basis for the Forex currency trading systems is to encourage investment company located abroad. You may also want to know all available information about this company to keep abreast of the latest developments. There are such systems Forex, that require a $ 5, for other systems also need large amounts (from 500 USD).

Remember that every Forex trading system has its own differences, for example., In the duration of your investments. Your location plays no role in choosing the system, since different trading systems scattered around the world, as a company in which you invest. With the help of trading systems actually can earn additional profits through investments made in another currency at different time intervals to obtain benefits.

Most Forex trading systems operate on the principle of equity markets. There is no difference between the trading of Forex, working on-line and off-line. However, the system Forex online can easily find access to your funds. Traders can invest, to take their money and execute trades faster online.

For those who trade on the Forex can be a bad idea

There are many ways to learn how the currency market Forex, for those who do not have this no idea. But this would require a really strong desire and dedication. For people who do not want to learn almost nothing can be done. Since the market consists of many small parts, one small mistake can cause big problems.
If you belong to the majority of people who are reluctant to learn, then you've probably realized how easy it is to lose money in online Forex trading currency. Moreover, unlike the stock market you do not have anything, so you can show or sell. You must sell the currency on the Forex, or you can use it when you can visit another country, but it is uncomfortable argument. On the other hand, you can console that almost every second, someone buys a currency, but you have to rely on people who will benefit at your expense.

Before you make a couple of fatal errors in the market, you ought to think. The risk in the investment currency, of course, is not for everyone, especially if you have no idea of how exchange rates affect other aspects of the world of finance. You must be absolutely honest with yourself before you start bidding on the market Forex.

Time for Trade

Time for Trade

Trading in OTC foreign exchange market does not allow you to go on pension, making a good investment, as it happens in the securities market. You should always keep abreast of developments of the world economy, since online Forex trading currency involves much more than simply monitor the relationship between the dollar and other currencies. The most important thing - to guess the time and the time to close the position, without hitting a sharp turn to trends in the market with leverage 1:100.

Do you really win if you set a specific time to trade and take into account your time 3 regional markets: Asia, Europe and the USA.

So, the Forex can be divided into 3 segment times, which attract the most attention and therefore can predict when will be a sharp price movement. These include 2 am (Eastern Standard Time) when embarking entrance German stock index Dax; 6-7 am (Eastern Time), when published by the London Interbank Offered Rate LIBOR; 11 am (Eastern Time), when European markets closed.

At the end of the session the U.S. markets in Asia will move in the opposite direction, although the lack of the required amount will lead to purchases. European markets tend to follow the trends of Asian, and then Chicago market will try to return prices to all initial positions from where it all began in the United States.

To avoid fraud and losses

Inexperienced and undisciplined traders tend to incur losses in Forex. We offer you 20 facts you need to know to avoid fraud and losses in market Forex.

1. Clearly defined risk tolerance. Decide what you seek.

2. Set goals and stick to his plan.

3. Choose a broker with caution.

4. Choose the size of the deposit and leverage in accordingly to your needs and expectations.

5. Start with small amounts, increases the size of your account as income, rather than large deposits.

6. Focus on one currency pair, and expand your horizons as far as improving skills.

7. Do what you can do.

8. Do not add to a losing position.

9. Restrain emotions.

10. Make notes. Examine cases where you succeed and when they lose.

11.Automatize your trade, as far as possible.

12. Do not rely on online robots Forex trading currency, magic methods and other shenanigans.

13. Your plan and analysis should be simple and understandable.

14. Do not go against market trends.

15. Remember, the Forex is nothing permanent. This market consists of the opportunities and forecasts.

16. Be humble and patient.

17. Examine the management of funds.

18. Explore the markets, fundamental and technical factors leading to price fluctuations.

19. Do not give up.

Quotes and spreads

Ask Forex - This is the actual price of futures or options and currency at some point. Forex quotes are a source of information and an indicator of market price.

Exchange Rates exist only in pairs. The main currency is worth in the first place, and the quotation currency in the second. The wholesale market using five-digit quotes.

"Suggested price" and "asking price" are typical of any financial product, as well as for quotations on the online Forex trading currency market.

To easily read quotes Forex, you need to remember that the primary currency is worth in the first place in the pair, and that its value is equal to unity.

Spread is called the difference between the offered price and the requested price. Standard spread depends on the currency pair you are trading. If the couple often appears in the auction, the fluctuations in spreads would be small. That is, the range spreads common currency small (4-5 pip), while the range spreads exotic currencies may not be very wide (5-20 pip).

The lower the spread, the closer the offered price and the asking price. Accordingly, the greater the spread, the greater the distance between the prices of supply and demand.

If you intend to buy the base currency, relying on your expectations regarding its growth, you need to make a transaction at a time when the proposed price is above the selling price.

Basic information on currency futures

You may seem that every time you turn on the TV, the news report about the weak dollar positions. The debate is usually conducted on how the weak dollar affects different markets. In contrast to the currency futures market, the size of the online Forex trading currency market is much more. This means that prices are dictated by the currency market, and he was subject to currency futures. What is the relationship between currency futures and spot prices, and how to put cash in the futures and vice versa?

The most active futures contracts sold 4 times a year: in the 3rd Wednesday of March, June, September and December. Unlike the futures market trading in the Forex market is every day. All transactions on the interbank market should be held directly.

Futures markets allow traders to buy and sell contracts, avoiding, thus cashing. This is possible at the conclusion of the quarterly futures contracts.
There is a misconception that future contracts are forecasting the price level spot at some point in the future. However, they are not. Future contracts - the result of differences in interest rates.

Eg., Assume that the exchange rate $ / yen should be immediately recorded in the year. This can be done, borrowed dollars a year. We translate dollars into yen and profit put on deposit for one year.After 12 months maturity period ends, and benefits used to fulfill the obligations of Jena. Price hedge loss equals the difference in interest rates. This difference can be used for betting on the spot Forex at their transformation into money. Such amounts are called future swaps.

Eg., US $ 12 month deposit / lending rate 6.25%

Yen 12-month deposit / lending rate 0.50%

The difference in interest rates = 5.75% $ / yen

The exchange rate 105.00 105.00 * -0.0575 =- 6.038 points
Of course, the transaction can be carried out by other means, fixing the price of the dollar against the yen. In this case, you lend yen and translate them into dollars. As a result of such trades, you will receive a 5.75% transaction. If future market does not coincide with the difference in interest rates, traders will try to quickly align them, using the deposit market.

Elliott Wave Theory. Continued.

Wave 1.

The online forex trading currency market makes the first leap upward. Typically, this spike driven by a relatively small number of people who suddenly felt (for many reasons) that the price in the market is small, and it's time to buy. This leads to higher prices.

Wave 2.

At this stage, a sufficient number of people who bought at the first stage, decide that the price is inflated, and it's time to benefit.This leads to a fall in prices. However, the market will not return to the lowest price the first wave.

Wave 3.

It is the longest and strongest wave. The market drew the attention of the masses. More and more people know about it and want to buy. This leads to continuous improvement in the price. Prices of the third wave, as a rule, exceed the level achieved during the first wave.

Wave 4. Users benefit because it is considered that the market is price hike. This is a weak wave, because the market there are still many people waiting to raise prices.

Wave 5.

At this stage, many masters hysterics, as market prices to be inflated. You can easily absorb the large companies, not asking you for permission. Opposing investors are beginning to reduce their fee should be in the market, and it all starts from the beginning.

Elliott Wave Theory

Let us move to 20e, 20 century when he was this mad genius named Ralph Nelson Elliott. Elliot shown that stock markets behave in a certain pattern, whereas at that time was believed that they were absolutely chaotic.

Processes in the stock market to repeat the circles, which he identified as the emotions of investors and traders, due to external factors or dominant mass psychology.

Elliot shown that abrupt changes in mass psychology always occur in the same order, so-called waves. Elliott called his discovery of the wave theory.

By Eliot market moves on 5.3 wave patterns. The first 5-wave pattern is called impulsive waves, and the last 3-wave pattern - corrective waves.

Although Eliot developed the wave theory of stock markets, this theory can be applied in the online currency market trading Forex. In place of the securities in this theory can be currencies, bonds, gold, oil, etc.

The principle of wave posits that collective investor psychology moves from optimism to pessimism and back again. These vibrations create patterns that indicate the price fluctuations in the market at every level of the trend.

Platform Mt4

Most Forex dealers offer their customers the platform, adding to its poor quality of their programs with errors and forcing traders, thus, lose their money even before they learn to use the platform.So you have to master the technique of using the platform at the demo deposit, so as not to lose and then real money. Read tips on its use. Maybe just one page with tips in the future will save your status. Each Forex broker must have its own version of Metatrader, and which will point to the broker's policy regarding the procedure of hedging and margin. Metatrader 5 (MT5) is now in testing and will be released soon which will be the most powerful platform in online forex trading currency.

Pay enough attention to the summary line Metatrader 4. It contains information about what is going on with your deposit:

- "Balance" means the last receipt of funds, but the profit / loss are not included here;

- "Capital" includes the same balance, given the current profit / loss;

- "Margin" means the amount of funds that are intended for your open orders;

- "Free margin" - the level of protection from the market and untapped amount of your capital. When will your free margin, one of your positions will be eliminated, which may incur a loss.

The difference between the stock market and Forex

The difference between the stock market and online Forex trading currency market is on the basis of the enormous volume of retail trade in market Forex.In Forex selling millions of millions, that is trillions of dollars a day. This is much more than the volume of trading on any stock market anywhere in the world. Participants in the Forex market are governments, banks, financial institutions and similar types of institutions of all countries.

What is sold, bought and sold again in Forex can be easily converted into cash, so you get real cash. You can transfer money from one currency to another - money available to all investors from all countries.

Forex is different from the stock market as well and that it spread throughout the world. While trading on the stock market take place within a particular country. The stock market is based on the business and products within the same country, and includes the Forex every state.

In the stock market has laid down certain working hours. Typically, he works in the business time and closed at the weekend and bank holidays. The Forex market is open 24 hours a day, because a great number of countries participating in Forex, are located in different time zones.

Stochastics - another strategy work at Forex

Stochastics (indicator value of the security, to detect speculation on it) belongs to the most popular indicators in the online trading currency market Forex.Unfortunately, many traders do not know how to use it.

The indicator was developed by George Lane in the late 50e.Stochastics consists of 2 lines:

% D - the main line, usually in bold print;

% K - K moving average, is often depicted by a dotted line.

There are 3 types of indicators:

1. Full

2. Fast;

3. Slow stochastics.

Slow stochastics - this is just a uniform version fast stochastics. A full stochastics further delayed the slow version.

Interpretation. Buy currency when% K falls below resold level (below 20) and rises above the same level.

Sell when% K rises above the overbought level (above 80) and drops below the same level.

However, this interpretation is used by the majority of traders, acting only when the market there are no trends.

When the price changes within the market hall and trend indicators are not effective, we need an oscillator. When the trend in the market will go up, then the signals that lead to success, we must go in one direction with the trend. On the other hand, if the prevailing trend in the market downturn, you must sell the currency, as well as your risks at the same time will be minimal.

Stage analysis

Before you invest money in the online forex trading currency market, any sensible person will want to examine the possibility of benefit, to get a full picture of trends in the market to be armed in case the market will play against him. To properly make the analysis, you need to remember the 6 main issues:

"Who?" Says about the people involved in the Forex, which form the market and bring in his recovery.

"Why?" About why the Forex market to understand the prospects and opportunities that it offers traders.

"Where?" Advises us to combine the goals and efforts with this professional dealer.

"When?" Tells us about the right moment, when our auctions can bring the maximum benefit.

"What?" Helps you select the tools of trade or currency pair, based on your budget and investment principles.

"How?" To choose a trading tool that will help improve the skills and technology trade.

It goes without saying that it is impossible to predict every movement in Forex, but we try to develop an understanding of the situation and environment in the market.

With the help of these issues can make an effective plan that will cover all major aspects of trade.

What is Forex?

Forex - is an international foreign exchange market with the high dynamics of exchange rates (rates may vary a few thousand times a day), the highest trading volumes (more than 3 trillion dollars a day) and the smallest amount of bail, which is required for the operation.

The main operations in the international currency online market trading Forex is the buying and selling foreign exchange contracts in order to profit from currency fluctuations over time. Trading Forex based on the principle of margin trading, and by using brokers traded currencies at prices that reflect market conditions at the moment. The essence of margin trading is as follows: an investor puts on deposit with the broker cash collateral assets and is able to manage the trust loan broker, more than 100-200 times the amount of bail. However, incurring losses that exceed this amount, the investor can not, he would not allow it to make conditions of work with a broker. Anyone can participate in Forex, trading with Forex brokers.

And you too can take part in the community of traders, or simply learn something new about the foreign exchange markets and their dynamics in the trade forum Forex.

Forex. Information

Forex - is an international exchange market where buying and selling currencies. Forex is the largest market in the world.

One of the participants in the Forex market currency exchanges of other countries on its currency and vice versa. These parties may be companies who need to pay the salaries of their foreign offices.

The other part of the traders are currency speculators profiting from the smallest fluctuations in exchange rates.

Exchange rate fluctuations on Forex conditioned by actual monetary flows and expectations about changes in macroeconomic factors. Theoretically, this type of news should be public.

The Forex market operates 24 hours a day throughout the workweek. At the tender may be involved individuals, banks and brokers in various combination. Individuals (or currency speculators) have the opportunity to work at Forex in 24 hours in their own interests.

On the market online Forex trading currency, as well as on any other market, there is a difference between the price of buying and selling currencies. This difference is usually located in the region 1-2 points.

The average volume of trade in Forex is 1.9 trillion dollars (April 2004) according to the Bank for International Settlements.