Forex Archives - BOLLYWOOD SURKHIYAN

Errors to Avoid in Forex Trading

Forex trading is the exchange of currencies from one hand to another in the currency market. Investment companies do this as well as banks but individuals can also play the currency trade through buying and selling. You buy at a lower price and then sell it or exchange it for a much higher rate of conversion.

Forex trading however can be a risky business to get into but once you get the hang of it, it an yield you a lot of gains. All you need to do is minimize your risks and errors in this volatile business and you are on your way to a bit of financial freedom.

Here are some of the mistakes that people make when they trade currencies. Read each one before you get into forex trading.

1. Never blindly trust people

No matter how good they supposedly are and no matter how great their credentials are in forex trading, there is still some room for mistakes. In fact, some people in the industry who have years of experience get too cocky and lose money in the process. If you are serious about going into forex trading, you must know the business yourself. You must also understand how the system works and be able to follow why a currency appreciates and depreciates. That way, you won’t just rely on the advice of people but also be able to make your own analysis and decisions.

2. Never rely on news

News may claim to be facts but often these are just one perspective or from one chunk of the bigger picture. If you want to really know about the business, do not rely on the news. Rely on your own analysis and then compare them to other peoples analysis in newspapers and television. That way, you will learn the business on your own. Besides, you should not believe everything you hear or read.

3. Buying low and then selling high

Although this is the theory for forex trading, this does not mean that you should wait for a currency to become really low, buy it and then wait again for it to recover and surge at higher rates. This is not the way to do it. Forex trading involves a much faster exchange of currencies. Buy low and then sell when it gains a point. You don’t have to wait for a peak to do it.

Forex Manual For Successful Trading – Just What You Need To Succeed In The Forex Business

There are entire library sections full of books that claim to offer a forex manual for successful trading. But truth be told, the only thing that’s really required is a little bit of first-hand exposure to the forex market. Of course, the books do help with clarifying basic concepts and giving new traders a sense of direction. So take a look at this basic information and guidelines.

Let’s start with the fact that the forex marketplace can’t be found located in the block around the corner, or around any corner. That’s because it is just a distributed global collection of large financial institutions who trade and set currency rates. Forex traders earn money by speculating on the relative values of specific currency pairs.

To be a forex trader, one has to open an account with a broker. This margin account usually needs a minimum opening deposit of $1000 or $2000. But unlike the stock market, forex traders have a massive leverage to play with. The amount available for trades on a new margin account with minimum deposit is usually one lot, which is $100,000.

These amounts may seem scary big for a new trader, but the risks are much lower than the stock market. Pick up any forex manual for successful trading, and it will say that all that’s required is to trade based on know-how and logic, instead of giving in to emotions. Even so, it’s better to keep the total amount of trades to less than 20% of the margin account. Individual trades should be no bigger than 5-10% of the account.

Even better to start off with a demo trading account and do paper trades instead of risking money for real. Choose a forex broker who offers a demo account. Use the account to clarify concepts like how to place a trade with the broker, how much of a spread the broker takes, and how many pips of gain that leaves for the trader.

This is also a good time to understand trading strategies, systems, signals and indicators, and forex derivatives and futures contracts. One very important thing which most forex training schools neglect is to teach traders to focus only on a few specific currency pairs. Good traders spend entire lifetimes tracking one or two currencies.

Given the complexities of currency variations and the large spreads charged by brokers for fringe currencies, it is better to focus on popular and stable pairs like USD/JPY, EUR/USD, USD/CHF and GBP/USD. This information can’t exactly be labeled as a full forex manual for successful trading. However, it is enough to get started in the right direction.

Forex Trading Profits – A Manual Trading Strategy That Works

It is possible to take up Forex as a full time profession. In fact, it is the only home-based business anyone can set up from home with as little as 1500 USD. You will need USD 500 to set yourself up with a laptop and internet connection and 1000 USD to deposit in your forex personal ECN account. In 20 days you will be making more than USD 200 per day with this strategy, but it takes time and patience.

Good charting software that comes with the popular MT4 trading platform that almost every broker offers free along with a trading account is the only tool one needs. Added to this is the knowledge of trading strategies and risk management and one is all set to set up the perfect home based business without any overheads at all.

It is possible to make as much, or as little (whichever way you look at it), as 200 USD per day trading forex with a 1000 USD account.

I’ll let you in on a little secret forex trading strategy of mine:

Trade a 0.5 percent of your deposit in PIP value. This means that one pip should be equal to 0.5 percent of your deposit. So if your deposit is USD 1000, your exposure per pip should be USD 5.

This will leave you with 160 pips to play around with. The chances of the market moving 100 pips in the wrong direction are scarce if you have an eye on the screen while the trade is open.

A good strategy will give you ample warning that the market is going to move further and you can opt out. I suggest you keep a stop loss of 120 pips, believe me you will never need it if you follow this strategy.

Observe a monthly chart. Mark out the highest point and the lowest point the pair reached over a period of 3 months. Observe the most common price the currency pair kept returning to and draw a line through that point. That is your entry point. Go long with 0.2 lots at that point and go short at the same point with 0.2 lots. Your per-pip value will be USD 2 in each trade.

With 160 pips to play around with you don’t have to worry about the margin call. The market will move in both direction and return to the same entry point at some time or the other. You must set up alerts on the MT4 for 10 pips above and 12 pips below the entry price. When the alert sounds, exit the trade.

If the market moves away in either direction you will still make a profitable trade. It will be a matter of time before the market returns to the entry point.

With a 0.2 lot trade and take profit point at 10 pips, you stand to gain 20 USD per trade. You will get at least 4 opportunities to trade in a day. That will make you USD 80 per day. With a consistent trading strategy you will make 1600 USD in 20 days. Use it to increase your per-pip value.

This is one strategy that has worked for me over the last 2 years. Why, should it not work for you? The only thing that could be a problem here is that you need patience and have to be in front of your terminal every day. It will also pay if you increase your deposit and reduce your trade percentage. The lower the better because then you will have more pips to play around with if the market moves against the trade. Remember, the market will return to the entry point, you just have to wait it out without fearing a margin call.

Importance Of Forex Strategy For Traders

There are many options for you when you are looking to do some investment. You can do any kind of business, but make it sure that you are familiar with that business field; otherwise you might face the loss of your money. If you are looking to invest in the forex market, then proper planning is required from you, so that you could achieve your targets. This planning is known as forex strategy. You must follow these instructions, so that you could be able to keep yourself away from those risks that are involved with this market.

In a foreign exchange market, traders do the buying and selling of different currencies for the purpose of making profits. This kind of business requires huge amount of patience from you, as you might only become a successful trader in this market after spending a lot of years. There are three kinds of traders; short-term traders, medium-term traders and long-term traders. Short-term traders invest for short term objectives. One of the best plans is medium-term strategy, because it requires small amount of funds for investment.

There are different kinds of plans for the investors and these plans includes advance, simple, complex and basic. If you are a beginner, then you must follow a basic plan, because rules are defined in this plan. Skilled beginners can use a simple plan. In this plan, techniques of trading are defined.

Complex and advance plans are for the guidance of traders. Before the start of this business, you are required to practice with the software that is specially designed for this trade. With the help of this software, you could be able to gain an idea of this business as well as an idea of the foreign exchange market.

With the use of a forex strategy, a trader can make wiser decisions. These plans are really helpful to the traders, but you must be aware of those risks that are associated with this trade.

It is not compulsory that 100 % results are achieved by you with a business plan, because there is great requirement of hard work. Technical analysis and fundamental analysis plays an important role in the formulation of plans, so you must understand these well.

You must pay your focus in learning different skills, so that you could create a forex strategy. It is compulsory for you to plan well and work hard at the same time, because success could not be achieved without hard work.

Factors Affecting Forex Trading

Forex Currency Trading is affected by several factors which are mostly external to an individual. Most important of these are GDP, trade reports, unemployment and interest reports.

One beauty of FX trading is that there is no lag in the dissemination of information across the globe. It is released simultaneously and becomes available to everyone equally online or offline.

This is unlike online stock trading where one remains ignorant for a considerable period of time about the news affecting the volatility of a stock.

Most of the times in the stock market, an investor is in the dark regarding the causes of movement in a particular stock. Investors come to know about the causes like insider trading, law suits, revision in earnings etc. much after the market has reacted and absorbed the news.

Only few people have the right information at the right time in stock trading. As a result, most of the investors are at the receiving end in this market.

This is not the case in currency trading. Here all the information that affects a particular currency becomes known to everyone instantaneously in the whole world. There is hardly any role for insider trading or behind the scene news in a forex market. So information is more open.

Almost every online forex trading platform maintains a global economic calendar. This calendar indicates the major forthcoming economic, financial and business related events all over the world and which can have important bearing on foreign exchange market.

All one has to do is to keep a tab on these important events and their positive affects. If one can analyze them properly, it is possible to benefit considerably overtime.

Aforesaid factors which are having a major bearing on currency exchange are fundamental in nature. Coupled with technical analysis, these are of substantial aid to any forex exchange player.

Of course it is not easy to watch or keep a tab on all the factors that affect foreign exchange trading sentiment. They change in importance over time and condition. But the information is available to anyone and for use to one’s benefit. One can react immediately to any new information.

In stock markets, one is always faced with trading hours restrictions, closing and opening bells and unknown information. Forex markets are credited with 24 hours availability, open information and ease of use. One is not faced with restricted trading hours and one can trade from a few minutes to long hours.

In North America or Western Europe, people know a lot about stocks and bonds. But the rest of the world deals in currency. As there is more of globalization, online currency trading will get a further boost.

Most important GDP figures that affect forex trading are those of USA, Japan, Canada, Australia and Britain. China is also expected to be a major force in online paper trading in not that distant future.

One can do forex currency trading from anywhere in the world. All one needs is a computer and a forex trading platform. As soon as one gets some important economic or financial news, one can react accordingly in real time.

For more information and for a Free Forex Report, please follow the following link:

http://www.businesses-jobs-careers.com/Forex/ForexSystems.html