7 Tips for Trading Foreign Currency

June 10, 2013 by  
Filed under Forex Trading

Both experienced and newbie forex traders are always looking for trading tips. If you’re looking for tips like the ones on a horse race, I can’t help you! I can’t predict which horse will win the first race, and I can’t predict exactly which of your forex trade will be winners. You’ll find lots more great information about forex trading at ForexInfoPlace.com

What I can do, however, is provide you with some basic forex trading tips to help keep you on track to make money trading foreign currencies.

1. Trade, don’t gamble. Trading is based on research and knowledge, whether yours or a trusted advisor’s. If you risk trading foreign currencies on hunches or without proper knowledge and research, you are not trading, but just gambling. Save your gambling for the horses or the gaming tables, not your forex trading.

2. Use a demo account to practice trading before using real money. To do this, use your broker’s “demo account” facilities. With a demo account you can trade as if it were real, making and losing money just as in the real forex world. No money actually enters into the picture, which means you can make all the mistakes you need to in order to learn. My advice to newbies: trade on a demo account for at least three months before you go live with real money. Not only that, but analyze your demo wins and losses carefully, learn from your mistakes so that you won’t repeat them with real cash.

3. Trade in the time frame that suits  your style. Short time frames like 15 minutes makes for a lot of excitement and many traders love that. I do strongly advise new traders to look for longer trading timeframes though, as that gives you more time to think before you react.

4. As a beginner, go with the trend. With experience, you might want to experiment by bucking the trend, and you might be successful. But don’t take any chances this way until you are really experienced — and maybe not even then. Learn more about trends here.

5. Study the charts of periods longer than your chosen trading time frame. This gives you a bigger picture and gives you a better chance to see and accurately identify trends. For example, if you are trading in an hourly time frame, you want to look at daily and weekly price movements for a more realistic picture. The forex market is subject to occasional blips that can trip you up if you’re not ready for them. Watching how things are unfolding in longer time frames will help you see these glitches coming and take appropriate action.

6. Manage your money conservatively. That generally means risking only about 2 – 3% of your total trading account on one trade. Understand that you WILL lose on many trades, that’s just the nature of forex trading. Each time you lose, you need to make twice that much on the next trade just to stay even! Keep your risk low so that a few losses in a row won’t wipe out your account.

7. Ignore your emotions when it comes to forex trading. Many new forex traders, and even more experienced ones, have been wiped out because they let their emotions influence their trades. Make your trades based on analysis, both technical and fundamental, not on panic or elation. Never trade on a hunch (see tip #1).

The world of forex is exciting, but it’s also a dangerous space. I recommend ongoing education in all aspects for as long as you are trading forex. One great place to start is with this free 7-part mini-course

 

130+ Pip Winner Trading the Ichimoku Cloud – FOREX -GBPH4

October 14, 2011 by  
Filed under Forex review, Forex Trading, Videos

Automated forex trading system based on the Ichimoku indicator. Expert advisor robot trader built for metatrader MT4. Ichimoku meaning in Japanese as ” one look” was created by  Japanese newspaper writer Goichi Hosada.

Unlike statisticians or mathematicians in the industry this was a work of person who used his expertise and few assistants and created  technical indicator that is so robust and strong in today’s trading. There is  strong pipwinner system built around this type of trading and it compliments other trading systems in place. Take a look a the video here.

The Ichimoku indicator is used to measure short term time frame momentum along with areas of support and resistance as they occur in naturally. The standard Ichimoku is comprised of five lines:

Tenkan-Sen

—  This is a line made up by using high and lows for the 7 to 9 periods. This can be interpreted as short term moving averages.

Kijun-Sen

— This line is same as the above Tenkan-Sen  but it consists of longer time frames.  Many traders use cross overs of kijun and Tenkan as entry and exits points .

The Cloud

The cloud is made up of space between the Senkou Span A and Senkou Span B. Senkou Span A is calculated by subtracting : (Tenkan – Kijun)/2 and the Senkou Span B is calculated by (Highest High- Lowest Low)/2 over typically 52 periods.

The crossovers are used for entry and exits points.

Chikou Span

— Lastly the Chikou span is created by plotting recent price movement twenty six  periods behind the latest closing price.

Forex Trading Is A Battle Of Traders

October 1, 2011 by  
Filed under Forex Trading

Forex trading is similar to waging war on a battlefield.

Choosing you weapons is important in order to win. Today’s auto Forex trader needs the best Forex strategies not only to survive but also be profitable. Many traders have a narrow view of Forex strategies and only see them in term of the time frame that they will be in a trade and the technical signals that they will trade on such as MACD, stochastic or moving average crossover.

Fundamental analysis was more important a few years ago, but now there is a great disconnect between fundamentals and the price of currencies. Forex strategies in my view also incorporates the Forex systems that will be used to accomplish one’s trading objectives. The system needs to be programmed to generate accurate Forex signals preferred on a timely basis and will allow for quick and easy execution of them.

There are different ways to approach this and depending on one’s preferences. Forex robots are a good example, they already come program for execution of trades based on certain technical indicators, which allows the novice to learn and participate, and the experience trader can adjust these pre-programmed parameters to his own style and liking.

There are other Forex Strategies, one is using a Forex signal service that has a professional trader analyzing the data and generating the buy and sell signal directly to the traders computer. Forex Samurai, one such Forex signal service goes a step further and actually inputs the trade for the trader. These Forex systems may be more appropriate for those who feel more comfortable with the human element of the system. No matter which Forex system is chosen.

The auto Forex trader needs to evaluate his Forex strategy in a holistic approach to be able to compete and win on a consistent basis. These system will not only give him the tools he needs to trade Forex, but others that are important such as cash management, stop loss settings and others that combined will give him the edge he needs. In conclusion, Forex trading is a battle of traders to win a profit. You need to ask yourself if you have the proper weapons to win.

About Author If you want to know more about the latest Forex Strategies and Forex Systems and best available, come on over to Auto Forex Trader

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