Some Advices before Entering Forex Trading - page 4

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forex related NEWS

How To Monitor Forex Indicators ?

 

Thank you for sharing Grace. Forex trading forums like this one are usually good resources for news and informations. I would advise getting a company that does free forex seminars / webinars. I would also advise company like makemoneycurrencytrading dot co dot uk as they teach you their strategies for free.

 

i.e. just like the 10 rules of the Christianity, if we follow all,

we either trade NOTHING

or making the right trade only

we ALSO TRAIN Our eye very much to read Horizontally,--- price level

so we DID NOT REALISE , all the SIGN for entry appear VERTICALLY, so we better draw a TALL long rectangle when the SIGN appears

so I will try to find indicator that compliance with the rules

here we go. rule #4

#14

===== =====

#10 don't trade near the applegreen rectangle -- wedge, otherwise, we could trade TP +8 SL -20 (above the channels permitted)

even better, use the 15M chart, set -- along the trend direction

==> 11 pips away set LO to go all the way (no SL/ TP)

then reverse the trend direction

==> 17 pips away set LO to go REVERSE (no SL/ TP)

i.e. no matter how the market go, the worst scenario is locking -28 pip lost -- otherwise, profit all the way !!

exception when the green MA trend indicate 15M is going FLAT !! , then NO NO (don't set any LO)

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we can see, load of indicators here, about 15% are really Easy and Excellent

but we seldom discuss the SING, the Behavior of the INDICATOR that we find

I think STATISTICS is important, holding a position just like holding a "Disposable wife" or J&J disposable contact Lens (more political correctness)

 

Functions of Financial markets

Today at this post we are going to discuss the function of financial markets as its very important for investors to have a good background:

Functions of Financial markets

Borrowing and lending: financial markets provides money to investors', by giving out certain amount of money but with certain interests which is known by cost of borrowing.

Price determination: sets or defines fixed or volatile prices for each type of instrument in the market.

Information collection and analysis: provides information for market participants to value or estimate prices of a certain instrument.

Risk sharing: financial markets eliminate a type of risk known by systematic risk, by diversifying investments.

Liquidity: markets provide sufficient amount of buyers and sellers helping any investors' to directly convert instruments into cash.

Efficiency: markets reflecting all the publicly available information on a certain instrument.

Major market participant:Broker: a broker's job is to locate a buyer to the seller, as they involve in assets transformation.

Dealer: smoothes the process of matching the buyer with the seller.

Investment banks: contributes in selling the newly issued securities.

Financial intermediaries: They are foundations that act as mediator between investors and firms.

 

Asset Allocation

Asset Allocation :Investment practice that divides funds among different markets to achieve diversification for risk management purposes and/or expected returns consistent with an investor's objectives.

Backwardation : Term referring to the amount that the spot price exceeds the future price.

10 - Band : The range in which a currency is permitted to move. A system used in the risk management.

11 - Bank Rate : The rate at which a central bank is prepared to lend money to its domestic banking system.

12 - Base Currency : The first currency in a currency pair. In a currency exchange, the exchange rate is quoted as the units of one currency in terms of a single unit of a base currency. For example, in a currency exchange of U.S. dollars for Japanese Yen, the base currency is the U.S. dollar.

 

Spreads and Pips

Spreads and Pips

The difference between the bid price and the ask price is called a spread. If we were to look at the following quote: EUR/USD = 1.5500/04, the spread would be 0.0004 or 4 pips, also known as points. Although these movements may seem insignificant, even the smallest point change can result in thousands of dollars being made or lost due to leverage. Again, this is one of the reasons that speculators are so attracted to the Forex market; even the tiniest price movement can result in huge profit. The pip is the smallest amount a price can move in any currency quote. In the case of the U.S. dollar, euro, British pound or Swiss franc, one pip would be 0.0001. With the Japanese yen, one pip would be 0.01, because this currency is quoted to two decimal places. So, in a Forex quote of USD/CHF, the pip would be 0.0001 Swiss francs. Most currencies trade within a range of 100 to 150 pips a day.

 

Technical Analysis

Technical Analysis

One of the underlying tenets of technical analysis is that historical price action predicts future price action. Since the Forex is a 24-hour market, there tends to be a large amount of data that can be used to gauge future price activity, thereby increasing the statistical significance of the forecast. This makes it the perfect market for traders that use technical tools, such as trends, charts and indicators.It is important to note that, in general, the interpretation of technical analysis remains the same regardless of the asset being monitored. There are literally hundreds of books dedicated to this field of study, but in this tutorial we will only touch on the basics of why technical analysis is such a popular tool in the Forex market.

 

Be careful "trading the news". Some of the largest swings happen during central bank announcements, and there's just a much a chance to lose a fortune as gain a fortune.

 

Forex Trading Glossary

Hi Traders,

This article covers the most common Forex terms.

Forex Trading Glossary

Enjoy!

 

Some info about Forex Taxation:

Forex Tax Basics

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