Forexunderstanding

Forex Trading, What Hours Should I Be Ready For Trading?

Once you have decided to enter the Forex trading world you will find that FX trading has many advantages over other capital markets. Including among others; very low margins, free trading platforms, high leverage and around-the-clock trading.

It is my main concern in this article to let you know what hours you should be ready and focus for start trading, so you can expect the highest profits in your trades, and not just consider that around-the-clock trading means you should randomly trade through out the day.

In short, it is important to know what the best hours to trade are because if you want to find an appreciable number of profitable trades you need to enter the forex market at the best period of time, i.e., when the activity, the volume of transactions, is the highest.

At any given time; somebody, somewhere in the world is buying and selling currencies. As one market closes, another market opens. Business hours overlap, and the exchange continues as day becomes night and night becomes day. Giving you 5.5 entire potential trading days.

Forex Trading begins in New Zealand at Sunday 5pm EST, and then is followed by Australia, Asia, the Middle East, Europe, and America in this order and through out the day and through out the week until Friday 4pm EST when the American market closes.

Other important facts every Forex trader should know are: the US & UK markets account for more than 50% of the forex market transactions; Forex major markets are: London, New York and Tokyo. Nearly two-thirds of NY activity occurs in the morning hours while European markets are open. And maybe one of the most important characteristics; Forex Trading activity is heaviest when major markets overlap.

So, the answer to the question; What hours should I be trading? is dictated by this last characteristic, you should trade when the major markets overlap. Now, when do they overlap?.

Considering the different time zones of the world and open and close times for Australian, New Zealand, Japan, America and Europe markets. We can arrive to the conclusion that there are two major time gaps when two of the major markets overlap during trading hours.

These hours are between 2 am and 4 am EST (AsianEuropean) and between 8 am to 12 pm EST(EuropeanN. American).

So if you want to catch the best trading opportunities of the day and you are in the American continent you must be ready to wake up early or go to sleep late some times. Of course things change around the world. What’s the best region where to trade from if you can’t wake up early? Maybe the Ukraine.

This article is all about FOREX trading to make you rich – and were going to give some alternatives to conventional investment wisdom. Why? – Because most traders in FOREX follow the norm and make average gains – while this article is about making spectacular gains from FOREX Trading and making money fast!

The Aim

Here we are going to assume you know how to trade, and you have a methodology for FOREX trading you are happy with, and can apply with discipline.

What we are going to show you here, is how to change your system from making average gains, to making spectacular gains, with simple changes in trade selection, money management, and mindset.

FOREX trading offers the opportunity to make money fast – so lets see how it can be done.

1. Accept Volatility and Risk Cheerfully

All good FOREX trading systems incorporate volatility.

You can’t have a profitable FOREX trading method without taking calculated risks, and taking losses – if you cant accept risk, then dont trade.

Many traders back away from a market because its too risky – however, risk also means reward! If you are a trader who doesnt like volatility, then go and find something else to do.

Drawdowns are part of trading; its volatile markets that make FOREX trading fun and highly profitable.

To the well-informed FOREX trader, a drawdown is not something to fear, but something to enjoy.

Remember: volatility = big opportunity!

2. Trade Infrequently

Many traders trade frequently and always like to be in the market. They think that in FOREX trading if they are not in the market, they will miss a move, or that by trading more frequently, they will make money – wrong!

The big moves in FOREX trading, with the best risk to reward, come a few times a year, and you should trade infrequently.

Focus on the trades that make the really big gains

3. Dont Diversify

Diversification is an accepted wisdom, believed by most investors in Forex trading, but it wont make you money fast, – it will do the exact opposite.

4. Money Management

So far, you may think that we are being a little rash, but this is not the case.

We are focusing on the BIG opportunities that allow us to make meaningful gains, and this is actually, where money management becomes so important.

If you are taking risk, you need to control it – risk as much as 10% per trade, but increase your chances of success by:

1. Buying options at or in the money, to give you staying power – and prevent yourself from getting stopped out.

Many traders lose, not because they were wrong in market direction – they just were stopped out by a volatile counter move – and options will give you staying power.

2. Many traders start trailing their stops to close, they then get stopped out but the trade runs on to make spectacular gains. Dont fall into this trap – keep your stop in its original position – until the move is well in profit, before moving it up.

Youre looking to make money fast, and youre trading selectively – so have the guts to go for a trade when it looks good – and milk it for all its worth.

5. Understand the Power of Compound Growth

IN FOREX trading the way to make money fast, is to understand the power of compound growth. For example, if you target 50% a year in your trading, you can grow an initial 20,000 account, to over a million pounds, in under 10 years.

Online trading is great way for serious investors to make money, but inexperienced traders often wind up with big losses. A good set of instructions can minimize the risks and save months of expensive trial-and-error learning.

Day Trading

Day Trading had its heyday during the bull market of the 1990’s. All the amateurs have since dropped out, but day trading is still being practiced by professionals. There are fewer opportunities in the current market, but skilled investors can still find them if they know what to look for.

FOREX Trading

The Foreign Exchange Market (FOREX), the world’s largest financial exchange market, originated in 1973. It has a daily turnover of currency worth more than 1.2 trillion pounds.

Unlike many other securities, FOREX does not trade on a fixed exchange rate; instead, currencies are traded primarily between central banks, commercial banks, various non-banking international corporations, hedge funds, personal investors and not to forget, speculators. Previously, smaller investors were excluded from FOREX due to the huge amount of deposit involved. This was changed in 1995, and now smaller investors can trade alongside the multi-nationals. As a result, the number of traders within the FOREX market has grown rapidly, and many FOREX courses are appearing to help individual traders increase their skills.

As a matter of fact, it’s advisable to take FOREX training even before opening a trading account.
It is vital to know the market mechanics of FOREX, leveraging in FOREX, rollovers and the analysis of the FOREX market. Due to this fact, potential FOREX traders would do well to either enroll in a FOREX training courses or even purchase some books regarding FOREX trading.

There are pros and cons to enrolling into a FOREX course. For beginners a FOREX course is a rapid method of learning the basics of FOREX trading. Not much time is spent on history of the market or arcane economic theories. Often, on-line or phone support from a skilled FOREX trader is available to answer any questions. Also, the information is condensed and practical, often with graphs and charts.

The disadvantage is the price, as courses are more expensive than a paperback from the bookstore. Also,
the course may just teach the approach of the trader who wrote it, and individuals have different trading strategies. The student may grow accustomed to the logic and focus of the teacher without coming to realise that nothing is predictable in the FOREX market, and many different strategies will bring profits in varying market circumstances. Also, knowledge of practical applications may not be enough, as the FOREX is highly unpredictable and there are many external factors, such as political issues, affecting the flow of finances in the market.

The best advice would be to do some background research on the FOREX market first, and then enroll in a course.

It should be noted that millionaire traders, Elder, Williams and some others are in fact professional psychiatrists. And it is not accidental that not the economists are the leaders and most successful traders, but professional psychiatrists and psychotherapists. Think about it. You will become a successful trader when you understand why it happens with Forex. You will understand what your Forex mistakes are, and why you are making them. And when you correct these mistakes you will become a trader who has no psychological barriers and obstacles on his way to better earnings in the Forex market.

So, why do the psychiatrists make better traders than economists who, as one would think, have the Forex market at their finger tips?

The economists are confused by:

- the fact that exchange rates are not always related directly to the economic circumstances in the countries. Well, do you know any economist who would be bidding for low fx rates when the economic situation is getting better and better? Or the one who admits that technical analysis of currency pairs is more important for Forex trading than the fundamental one? Any economist is confident that this can never happen because he knows all the economic dogmas. But it happens in the Forex. After all, how can a trader lose with the currencies moving up and down by the economic rules? The currency will surely react to the economic changes in the country, but who knows when and how? Here is a tip: there is the Elliott fifth way to teach a lesson to the ones who believe that fundamental knowledge is enough (before the trend turns, the currency spurts absurdly by the old trend), to confuse and draw the newbies into the game, while the experts wait for the trend to turn back.

- the lack of psychological knowledge that helps to understand the behavior of the crowd. And that is self-evident.

Are there any methods to overcome this fear?

It seems that every Forex book, every article offers efficient solutions for psychological difficulties experienced by the traders.

IN FACT NEITHER OF THESE BOOKS CONTAINS METHODS TO OVERCOME THE FEAR EXPERIENCED BY A FOREX TRADER!

But what do these books offer instead?

Almost every book of this kind consists of two unequal parts:

- the bigger part of the book narrates about traders problem that interfere with their Forex work and make it unsuccessful (nervousness, doubts, worries, fear, sleep deprivation, etc.). As if the traders do not know their own problems.

- the considerably lesser part contains conclusions and recommendations to the traders who are to solve their problems and overcome their fears to become successful.

The conclusions are disappointing:

Many psychiatrists realize that the new field opens before their eyes now they may treat traders whose number amounts to millions all over the world and is growing with every day. And since most traders have a dream to become as successful as George Soros and other famous traders, this new field promises to be rather lucrative.

One thing is bad though: the overwhelming majority of these new-sprung trader brain specialists do not even know what the Forex is all about.

The presented article is intended for those who just turned their eyes toward FOREX. Beginning traders who are still learning the basics of the foreign exchange market may also find something of interest here. While experienced traders wont gain anything worth their time reading this article.

Basically there are 4 steps which can be defined as must do for those who wish to start trading FOREX. Though, their order is not particularly important, the more important part is their content, to which the great attention and responsibility must be paid.

First step is finding a right FOREX broker which will be your main tool in trading. You can have a great strategy, good technical analysis skills or an outstanding intuition but you will eventually fail if you choose a bad broker. A good FOREX broker is one that will not still your money, will be doing real trading with your positions, supports your preferred depositwithdraw methods and has fast and helpful user support service. It is nice if a broker is registered with some sort of governmental financial commission. One of the most important aspects of the broker is its trading platform but for a new trader this part is not so important as for expert traders. Still youll probably want to trade with some powerful and informative platform as a MetaTrader or its analogs. For new traders the more important is a demo account which can be used to trade virtual money while you are training your FOREX skills. If you are new trader, start only with the demo account! Dont lose your money on your first mistakes!

Second step is learning the basics of FOREX trading. If you already found your FOREX broker, you will easily get all information from its website or user support. There are many articles and websites dedicated to FOREX basics in the World Wide Web. All you need to do is just google for forex trading basics and youll find everything you wanted and even more. This step shouldnt be underestimated, because trying to trade without even understanding how the market works is not only very risky, it will also become boring very soon.

Third step is about education. FOREX trading education is not similar to any other education you probably have got in your life. FOREX market is very chaotic, so is the education there are no fixed rules and all time laws, it is unstable and dynamical. So, to be on the top you must learn new things about FOREX regularly and constantly. Try to read as many books, articles other traders opinions as you can. The more you learn, the more educated you will be. And with good FOREX education you will be able to create very sophisticated and effective trading strategies.

Fourth step is a final one; at least I consider it to be a final one. To achieve the successful results in the FOREX market you need to develop your own strategies. While you are learning youll be satisfied with known strategies and probably even FOREX signals. But true goal which leads to successful FOREX trading is to develop your own strategies. Not one strategy, but to follow the market day by day, developing new strategies and improving those which began to fail. And this comes not only to the trading strategy (this part is obvious), but also to the money management strategy (this part is often underestimated). While you gain experience in trading youll inevitably build such strategies that will fit your trading style, you character and your life as best as they can. And after that, trading will become a real pleasure, which will eventually lead to your financial freedom.

The presented article covers one of the most important (in authors opinion) aspects of trading in general and FOREX trading in particular managing of orders and positions. This includes choosing entry points, making decisions about exit points, stop-loss and take-profit of the trader. I hope this article will help new traders, who just began to work with FOREX, and also to experienced traders who trade regularly and regularly make or loose their money to the market.

When I started to trade FOREX and made my first big losses and profits I began to notice when very important thing about the whole trading process. While the right time to enter a position was rarely a problem for myself (nearly 80% of all my open positions had gone into the green profit zone), the problem was hidden in the determining the right exit point for that position. Not only was it important to cut my risk on the potential losses with stop-loss orders, but to limit my greediness and take profit when I can take it and make it as high as I can. There are many known guidelines and ways to enter a right position at a right time like major economic news releases, global world events, technical indicators combinations, etc. But while the entering into a position is optional and trade can decide to miss as many goodbad entry point moments as they wish, this is untrue if we talk about exiting a position. Margin trading makes it impossible to wait too long with an open position. More than that, every open position in a certain way limits traders ability to trade.

Choosing the good exit points for positions could be an easy task if only the FOREX market wasnt so chaotic and volatile. In my opinion (backed by my trading experience) exit orders for every position should be toggled constantly with time and as the new market data (technical and fundamental) appear.

Lets say, you took a short position on EURUSD at 1.2563, at the time you are taking this position the supportresistance level is 1.25001.2620. You set your stop-loss order to 1.2625 and your take-profit order to 1.2505. So now, this position can be considered as an intraday or 2-3 days term position. This means that you must close it before its term is over, or it will become a very unpredictable position (because market will differ greatly from what it was at the time you have entered this position). After the position is taken and initial exit orders are set, you need to follow the market events and technical indicators to adjust your exit orders. The most important rule is to tighten the lossprofit limit as time goes by. Usually if I take a middle term position (2-4 days) I try to lower the stop and target order by 10-25 pips every day. I also monitor global events, trying to lower my stop-losses when very important news can hurt my position. If the profit is already quite high, I try to move my stop-loss the entry point, making a sure-win position. The main idea here is to find an equilibrium point between greed and caution. But as your position gets older the profit should be more limited and losses cut. Also, trader should always remember that if the market began to act unexpectedly, they need to be even more cautious with exit order, even if the position is still showing profits.

Every trader has their own trading strategy and habits. I hope this article will make its readers think about such an important aspect of trading as the exit orders and this will only improve their trading results.

Dear Friend,

Have you ever heard of FOREX? FOREX stands for Foreign Currency Exchange Market. This is a fascinating new way of making money in the trading market. With FOREX you can learn powerful techniques that will let you turn 200 to 3,000. You will learn to focus on what trades are the good ones and the most profitable. FOREX is an amazing tool to learn to use. Not only will you profit big, you will also have more confidence when deciding what to trade or not to trade.
The beauty of FOREX is that its not only for expert traders, but also for beginners. As a beginner, FOREX teaches the basic terminology used, concepts, and knowledge that will allow you to join the FOREX trading market. FOREX literally points you in the right direction of where to start your trading. Its as if youre being held by your hand and being taken to where the money is. FOREX is great, because if you sign up youll receive a FREE ebook with training materials that will teach you everything about trading FOREX and how to get started. This is a great course that will really teach you step-by-step in how to make intelligent trades in the trading market. One of the best features about FOREX is it doesnt cost thousands of pounds like most competitors and youll probably end up making much more money with FOREX than these competitors.
FOREX is also beneficial for expert traders. So for you experts out there, youll just fall in love with this from the start. You already know the basics and now youll become perfectionist in basically making money. Who wouldnt love this talent? FOREX is a great tool that basically lets you know when the major market moves will happen and in what direction. Its as if youre waiting for someone to give you the go ahead of trading and knowing that it will be profitable. This is just too good to be true. Well with FOREX its just that good! Learning these precision techniques will surely help you in achieving HUGE PROFITS.
There are always risks with trading. However, with FOREX the techniques that you will learn will teach you to trade with the smallest risk possible (between 10 to 20 pips). The purpose of FOREX is for you to be amazingly profitable. Like mentioned above, this is not only for experts but for beginners as well. This new powerful tool is feasible that even a child can learn. Youll see dramatic changes in your income and feel more confident in knowing when and how to trade. Youll enjoy this new way of living! Just think, you wake up start your day and do a little trade here and there and then thats it! You basically did your work for the day and then youre free to enjoy the rest of your carefree day. This type of lifestyle is waiting for you! Just remember FOREX is the place to be.

Best of Success!
Thanks,
Stephanie

This is one of the many remarkable trading techniques taught at:
Http:www.4exonline.com
Youll learn precision techniques that will make huge profits

How To Start Trading The Forex Market? (Part 5)

What are *PIPS* ?

Currencies are traded on a price point (pip) system. Each currency pair has its own pip value.

When you see a FOREX price quote, you’ll see something listed like this:

EURUSD 1.221013

Explanation:

a) If you want to BUY the EURUSD ( meaning you BUY EUROS and SELL US ) you buy 100,000 EUROS and you SELL 122,130 US, or in other words you receive
122,130 US for 100,000 EUROS.

B) If you want to SELL the EURUSD ( meaning you SELL EUROS and BUY US ) you buy 122,100 US and sell 100,000 EUROS, or in other words you receive 100,000 EUROS for 122,100 US.

The difference between the bid and the ask price is referred to as the spread. In the example above, the spread is 3 or 3 pips.

Since the US pound is the centerpiece of the FOREX market, it is normally considered the ‘base’ currency for quotes. In the “Majors”, this includes USDJPY, USDCHF and USDCAD. For these currencies and many others, quotes are expressed as a unit of 1 USD per the second currency quoted in the pair.

For example a quote of USDCHF 1.3000 means that fore one U.S. pound you receive 1.30 Swiss Francs. or in other words, you receive 1.30 Swiss Franc for each 1 US.

When the U.S. pound is the base unit and a currency quote goes up, it means the pound has appreciated in value and the other currency has weakened. If the USDCHF quote above increases to 1.3050 the pound is stronger because it will now buy more Swiss Franc than before.

The three exceptions to this rule are the British pound (GBP), the Australian pound (AUD) and the Euro (EUR). In these cases, you might see a quote such as EURUSD 1.2080, meaning that for EURO you receive 1.2080 U.S. pounds.

In these three currency pairs, where the U.S. pound is not the base rate, a rising quote means a weakening pound, as it now takes more U.S. pounds to equal one Euro, British pound or an Australian pound.

In other words, if a currency quote goes higher, that increases the value of the base currency. A lower quote means the base currency is weakening.

Currency pairs that do not involve the U.S. pound are called cross currencies, but the calculation is the same. For example, a quote of EURJPY 134.50 signifies that one Euro is equal to 134.50 Japanese yen.

HOW TO BUY ( going LONG )and SELL ( going SHORT ) in the FOREX Market?

Keep in mind 2 very important rules:

RULE # 1) Cut your LOOSING trades and let your WINNING trades RUN

YOU WILL HAVE LOSING TRADES. Every FOREX trader has. The secret is, that a consistent, disciplined trader, at the end of the day, adds up more winning trades than losing trades.

When you and see on your charts, without any doubt, that you are in a losing trade, don’t keep losing money. Most of the novice traders are lowering their stop loss just to prove they are right or hoping that the market will reverse. 99% of these trades, are ending up with more losses. Most of the profitable trades are usually “right” immediately.

Remember, smart traders know there are many other opportunities. CUT your losses short and compound those winning positions.

RULE 2) NEVER EVER trade FOREX without placing a Stop Loss Order.

PLACE a STOP order, right along with your ENTRY order, via your online trading station, to prevent potential losses.

Before initiating any trade, you have to calculate at what point ( price) you would be wrong, because the market changed direction, and would want to cut your losses.

To make profits, in the FOREX, a trader can enter the market with a *buy position* (known as going “long”) or a *sell position* (known as going “short”).

As an example let’s assume you’ve been studying the EURO. The EURO is paired first with the U.S. pound or USD.

Your trading methods, rules, strategies, etc., tell you that the EURO will rice in the next 2 weeks, So you buy the EURUSD pair meaning you will simultaneously buy EUROS, and SELL pounds).

You open up your excellent trading station software (provided to you for free by Fenix Capital Management, LLC www.fenixcapitalmanagement.com ) and you see that the EURUSD pair is trading at:

EURUSD: 1.20101.2013

As you you believe that the market price for the EURUSD pair will go higher, you will enter a *buy position* in the market.

As an example, lets say you bought one lot EURUSD at 1.2013. As long as you sell back the pair at a higher price, then you make money.

To illustrate a typical FX SELL trade, consider this scenario involving the USDJPY currency pair:

REMEMBER Selling (“going short”) the currency pair implies selling the first, base currency, and buying the second, quote currency. You sell the currency pair if you believe the base currency (USD) will go down relative to the quote currency (JPY), or equivalently, that the quote currency (JPY) will go up relative to the base currency (USD).

HOW TO CALCULATE PROFIT OR LOSS?

The Profit Calculations, on the Short-sell trade scenario below, may seem somewhat complicated if you’ve never been in the FOREX market before, but this process is continually calculated through your broker trade station (software). I show you this process below so you can SEE how a PROFIT might occur.

The current bidask price for USDJPY is 107.50107.54, meaning you can buy 1 US for 107.54 YEN, or sell 1 US for 107.50 YEN.

Suppose you think that the US pound (USD) is overvalued against the YEN (JPY). To execute this strategy, you would sell pounds (simultaneously buying YEN), and then wait for the exchange rate to rise.

Your trade would be the following: you sell 1 lot USD (US 100,000) and you buy 1 lot JPY (10,754.000 YEN). (Remember, at 0.25 % margin, your initial margin deposit for this trade would be 250.)

As you expected, USDJPY falls to 106.50106.54, meaning you can now buy 1 US for 106.54 Japanese YEN or sell 1 US for 106.50.

Since you’re short pounds (and are long YEN), you must now buy pounds and sell back the YEN to realize any profit.

You buy US 100,000 at the current USDJPY rate of 106.54, and receive 10,654,000 YEN. Since you originally bought (paid for) 10,754,000 YEN, your profit is 100,000 YEN.

To calculate your P&L in terms of US pounds, divide 100,000 by the current USDJPY rate of 106.54

Total profit = US 938.61