Posts Tagged ‘forex trading’

Bollinger Bands In Forex Trading

Learn this powerful method of Fibonacci retracement FREE pulling over 500 pips per trade. This is a patented system of Fibonacci forex trading by Tom Strignano, a trader BANK CHIEF EX. Download this highly profitable Forex Breakout Strategy Magic Tim Trush and Julie Lavrin FREE. Get three FREE Swing Trading Systems. Have you used Bollinger Bands in the Forex market? If not, then you should read this article before doing so. Bollinger bands are used to measure volatility in stock price. Working in almost every market and with any type of security. Volatility is measured using standard deviations in the statistics. Therefore, what Bollinger Bands do is trace the standard deviation above and below the simple moving average. A simple moving average is used to smooth price action.

By plotting the standard deviations above and below the moving average you infact create an envelope that show how much volatile the market is. Widening of the bands show that the market is becoming more volatile while narrowing of the bands show that the market volatility is decreasing. BBs are widely used to determine the overbought/oversold condition in the market as well as confirm divergence between the price action and the indicator. Keep these tips in mind when trading with Bollinger Bands (BBs):

1. Bollinger Bands are plotted above or below the simple moving average.

2. The default settings for the Bollinger Bands simple moving average is 20 periods.

3. The default settings for the two bands is two standard deviations above or below the simple moving average. These bands keep on increasing and decreasing in width as the market volatility increases or decreases.

4. Now this very important if you change the number of periods simple moving average, you should change the standard deviation of the bands too. For example, if the period is increased to 50, increase the standard deviation of two and a half and if you reduce the period to 10, decreased the standard deviation of one and a half. Periods of less than 10 does not seem to work well. Period of 20 or 21 is the optimal value.

5. You can use any timeframe for using Bollinger Bands that can vary from 5 minutes to daily to weekly or monthly.

6. Rapid price movement tends to take place after the bands tighten.

7. Prices moving above the upper BB is a sign of strength and prices moving below the lower BB is a sign of weakness.

8. When prices move outside the band, tend continuation is a good assumption.

9. A move outside the band followed by a sharp retracement is a sign of price exhaustion.

10. Always use another technical indicator when trading with BBs. One technical indicator that works very well with BBs is the RSI.

There are a number of trading strategies that employ BBs.

Make Money With Forex Trading – Learn How To Trade Forex

Whether you’re new to trading or you are what is a “seasoned” traders considered, there is a lot of money trading in Forex markets. Although direct trade with real money is not for beginners or people who have never traded, you can quickly learn the ropes with a little help and commitment.

Do you want a simple 4 step strategy used by successful Forex traders know to greatly improve their profit potential time she ever in a trade? Click here to download a free report!

What is Forex Trading?

Forex trading is the buying and selling currencies. In much the same way that you would buy and sell the stock on the stock market, currency traders to exchange that they have purchased. If you ever traded on the stock market, you should have no problem getting the hang of Forex trading.

The goal of Forex trading is to exchange one currency for another you have purchased with the hope that the price of the newly purchased one will rise in value. Whether you’re new to it or consider yourself an old pro, you’ll find it very exciting and fun. The value of the currency is always quoted in pairs like USD / JPY or GBD / USD. The reason is because you’re always a buying and selling of another.

However, it is recommended that until you get the hang of what you do, you set up a “demo” account where you can buy and sell currencies, but they are fake. By doing so, you’re learning how to do and giving yourself a chance to learn more about it without losing real money.

Register for an Account

Sign up for an account is easy. You can register for one of the programs on the Forex Web site, where you can “pretend” trading in a demo environment or take part in workshops where you have real experts will teach you all you need to know about Forex trading. You also have webinars at your disposal where you can watch demonstrations of Forex trading, participate in discussions with both beginners and experts in the field. Sign up for an account is not only fun and exciting through the best way to learn the ropes so you can quickly ready to start making money trading Forex.

Started is Easy

You will see that it’s easier than you think to get started. Banks and financial institutions doing it for years and now with the Internet available to everyone, it’s easy for you to make money at home with Forex trading. Because there are so many different theories behind Forex trading, it is to your advantage to talk to someone who knows what they do and has participated in Forex trading in the past.

If you do not know anyone with enough experience to help you, consider signing up for a number of online forex webinars and workshops. They are very helpful and will guide you through every scenario you can imagine and are available to answer all your questions. You can remain part of a “demo” trading market until you are ready to save your own real money. That’s when you see how much money you really can make Forex trading.

How To Earn Money Online With Trading Robot?

Many claim that it is easy to make money online with Forex robot programs. It is true that these systems are not dealing with the currency marking a lot easier than it has in the past. But in making any financial investment is worth investigating this method of making money a little further before you start.

These robots can be the Forex trading site when you enter your home or work computer. You need information such as which currencies you wish to be involved, and the set amount you wish to buy and sell on to perform.

That bit is easy, and then all you have to do is let her work. This system can work, but there are no guarantees. It may be useful for a bit about Forex and currency prices of the factors that influence learning.

Many sites allow you to learn and have good free tutorials to watch videos that help explain how your robot. You may also like to try a practice account before you start working for real.

Due to the nature of the trading system, many people think they can just leave it at work and the money will rack in. You should at least check the activity at least once a day for all nasty shocks that might occur to avoid.

The robot can help you stop yourself to make hasty decisions during the purchase or sale of currencies. It can also work during the entire twenty-four hours as opposed to the trade of you were working manually. Trillions of dollars pass through the market every day, people sometimes win, sometimes lose. This is a great way to make a profit, to learn and experiment and hopefully could get a good return for your investments to see. I personally made more than 8 times on my money using an automated Forex trading robot.

Learn Forex Trading Before You Start

About forex trading, the first thing you need to know what is forex and currency trading is about what? Currency trading is a simple thing to just learning and you will be expert in. Currency Trading is about buying and selling currencies of various countries of the world. And the purchase of one currency and selling of foreign currency in the same period of time, make a coin deal. Exchange market is the largest financial market in the world. These different peoples of different countries. Currency Trading is about making profits in trade.

The first step in learning currency trading before the start of that, one must be able to learn how to study forex prices known. These forex quotes are always quoted in pairs. You should also contact a broker with a certain amount of money before you start buying and selling currencies for making money. Many forex brokers are based on web, so you can start trading your home on your personal schedule. You must have experience and marketing skills by taking advice from the experts and the experience of forex.Forex trading accounts are very useful for beginners because it helps in buying and selling of different currencies among themselves.

The best way to learn forex trading before you start is by attending seminars, reading books, you open a trading account and take advice or suggestions from the experience of forex trading on how to do business in forex market. To trade simple and easy to understand, you need the right tools that will help you to know at what time to market. Learn currency trading is not so hard, you have the strategies of foreign exchange to learn and after that you will definitely earn profits in forex trading.

Forex Option Trading – The Basics In A Nutshell

Here are the basic terms you need to manage (and profit) trade of forex option trading.

A call option gives the holder the right but not the obligation to buy the underlying instrument at a specified price, known as the strike.For example, if you consider that the underlying asset will increase in a given day, you could buy a call option on the assets that fell.

If by that date, the option has increased in price, you have the right to buy the currency at the exercise price, which will then be below the current market price. As a result of your position is correct, you will have benefited by an amount equal to the difference between the current (higher) market price and the strike price. If your order appears to be incorrect and the market has not risen (or fallen), you just can not take the opportunity and the instrument. In this case you would have lost only the option premium, which is the amount of money you pay when you trade in exchange for the flexibility to buy the currency at a specified price. In forex trading option (as in option trading in general) options purchased are indeed one of the safest yet most cost effective ways of trading the market, because you know in advance what your maximum loss on the position will be.

A put option, on the other side, the right but not the obligation to sell the underlying instrument at a specified price (strike price) on a certain date. This is the symmetrical opposite example, a purchased call option in your forex option trading strategy. If you believe that the market will fall on a given day, you can buy a put option to that view money.

If the market dropped by that day if you predicted the option to exercise and to sell the asset at the strike price and buying back from the market at a lower price. Your profit from the forex option trading method, the difference between the strike price and current market price. If the market has not fallen, as predicted, then your maximum loss, the option premium.

Both forex option trading strategies are very conservative. Be careful when you start selling options instead of buying them from the risk profile is dramatically different. In currency trading, from a risk standpoint buy or sell the currency is about the same. In forex trading in options on the risk of an option is bought and sold significantly different.

Building a profitable forex trading strategy can be reduced to two major factors – knowledge and testing. Visit to take advantage of expert reviews and get advice on forex trading systems and forex signals.

Forex Trading With EToro

Forex trading is the trading currency of selected countries around the world. Over the years it has become the world’s largest financial market. It involves betting on currency pairs. There are about 30 currency pairs. Some examples are USD / CAN, EUR / GBP, etc. You need the decision to buy or sell. To avoid such decisions, you need to observe market trends to see what would be the best decision to make. Before you involved in the real forex trading, you must first open up a free account to a eToro practice before you gain some experience in the real trading market.

eToro Forex Trading

The eToro trading platform was established with the plan for a trading platform easy to learn and to show that fx forex eToro is not so complicated that most people would think. eToro provides traders the opportunity to learn forex trading, while trading. They offer unique animations start-up entrepreneurs show how the forex market works. With the opportunity to practice with eToro’s trading platforms, new entrepreneurs are able to gain experience without having to pay for forex trading courses and expensive software.

In addition to the eToro trading platform eToro also offers many other features. eToro offers a free online forex fx course.This is of great advantage because it offers a comprehensive education in the forex market that may be hundreds of dollars elsewhere. Other aspects of forex education that eToro offers video tutorials and educational forums. With these educational forums, will allow users to trade with novice and expert members, a valuable asset to all market participants to discuss.

What are the benefits of eToro?

- Free Practice Account eToro available for download.

- Video tutorials.

- Live Chat is available.

- Low initial investment.

- Spreads as low as 2 pips.

- Personal Trading coaches available to help.

- 24 / 7 support.

With all these features and benefits that eToro offers, there is no question why eToro still one of the top online forex webtrader platforms.

Forex Trading – Education Is the Key to Success

Regardless of the size of the account, Forex trading can be a bit risky. Many of the participants and if you do not educate yourself well you can just end with a zero balance!

Forex is the largest market in the world. Over three years, and by some estimates $ 4,000,000,000,000 to separate currency swap hands everyday. The Forex market is characterized by sudden movements, but also as highly liquid because it deals with foreign currency and everyone’s value against its peers.

Forex is a very relevant financial arena, and only those with the knowledge, experience and financial support to begin. Managing risk is a priority. Those who manage their own portfolios are an increasing share of the market. However, you must first inform yourself about the market. Learn the basics and intricacies of the game before trading with live capital. You should consider learning a smart and respected teacher, because there are many places on the net to go so far. You could also go to the website of the federal Commodities Futures Trading Commission (CFTC) as they’re offering the consumer about brokers, as well as information on applicable laws in Forex trading.

While not easy to say, the most experienced Forex traders learned all the secrets of the trade. The correct use technical indicators, theory, correlations, and fundamental analysis that they normally can explain market behavior. When you acquire these skills, you can accurately predict the direction of the market, allowing you to reduce risk and increase profits.

Future Of Trading Systems

With the growth of forex trading robots is a massive drop in retailers using self-designed trading systems. This has led to a decrease in the number of independent traders which unfortunately most are not robots that use the profits in the long term and not outside the trading game, so to spreak.

Creating a perfect trading system is not possible, but make a good thing is achievable with a little time and effort.

The futures market is usually not promoted as the largest traded market in the world. While this may be the case the reason for choosing as your forex trading market should be as simple as there are several markets and can be traded cheaply with little or no down payment.

Designing a good trading system requires thinking and processing. You need to figure out what you want to trade, how you want to swap. You have to figure out what type of trading system are you trying to make? How much risk you are willing? All these things must be devised in a systematic way.

Net trade randomly in the hopes that you stumble across a winning system is a very dangerous game to play. So what are the fundamental things to think about?

Borrow are often discussed. You should think about borrowing is obvious, but you should also consider the psychological effects of a string or loss to understand. Ideally, you want a smooth equity curve. It will give you more a more confident trader.

If you look at other peoples specific trading systems are important to check on their power curve. Look for strange patterns such as sudden steep curve flattening. This will show that back testing results are better than forward testing. This is a dead give away to a system that will eventually cost you your capital.

There are many trading systems tips and tricks you can use, but use them wisely and more importantly they use a forex system that suits you to do.

How to Find the Most Successful Forex Robot on the Market

Forex robots are software programs that buy and sell shares of foreign currencies automatically on the international exchange.They been around for many years and have become extremely popular with currency traders. The problem is that there are so many robots out there and it can be difficult for one to filter out the bad apples. I will discuss how to determine if a forex robot is a quality.

Although the tip of a robot to automate the process of trade, if you’re stuck with a bad then you run the risk of losing a lot of money. Like any investment, how you choose your investment is how much risk you’re willing to take. The same goes with choosing a FX bone. You can use a low risk, low yields, or high risk and hopefully get a high return. It is important that you take your time when choosing a robot. Jumping the gun too quick and impulsive buying will not be wise for you or your bank account.

Most products displayed robots earning history, but most of these are based on historical data, and it’s up to you take the time and test the software before investing your hard earned money with the new robot. It is also important that a robot is not designed to operate within certain characteristics of the market and you should be sufficiently informed to determine when the market’s most successful robot competitions. Again, please take the time to test the robot, so you understand its strengths and weaknesses in a variety of market conditions. This includes re-testing with historical data and live data.

Make sure you are able to set up a demo account and the time for the robot to use play money to invest and how it performs with your investment style to see taken. This is the best way for you to determine whether or not a quality product.

Once you’ve done, and it performs well then you may consider it strongly.

If you follow these simple steps seriously, there is no reason why you can not be a successful FX trader with a quality robot for you.

How to Play the Current Silver, Gold and Dollar Reversal

This is an interesting week for investors and traders of precious metals melting at the back of a rising dollar. Shares on the other hand, bucked the trend and moved higher as they bought in the earning season. Once the earnings release, we begin to see the market get sold on the retail numbers and good will in the right numbers to buy if the smart money selling their shares, while liquidity in the market.

Speaking of pullbacks, I talked about silver and gold, forming a top. A few months ago in November I saw the first warning of distribution to sell the precious metals sector. There was a large drop in price with heavy volume that is a warning sign that the Big Money starts to roll out of the busy trade (precious metals). The thing is that she tops with a long time to take shape and become very choppy.

Since the November highlights both silver and gold have traded broadly sideways. They never really went much higher and that’s because the big money is to spread their shares to smaller investors slowly overtime (retail buyers and average Joe’s). They try not to deter investors, so they sell their positions in chunks.What most people do now is that these vendors to form higher highs, because once a new high is for people buying again become more bullish on the breakout. It is these waves that the big money sells bullishness that is why you see heavy volume after a new high has formed.
Daily Silver Chart

The silver chart clearly shows the bull market (markup phase) and the distribution phase is taking place now …. If all goes according to then choppy / low prices supposed to take place over the next 1-4 months.
Gold daily chart

Gold is doing the same thing as silver, and I do not think the sale is not over.
Dollar daily chart

The past 12 months it seems as though everything is a dollar-based games. Which means that if you draw one minute chart of the dollar and 1 minute chart of the SP500 or Gold, you would now that if the dollar moves down stocks and commodities and vice-versa. That said, the SP500 has started to go up with the dollar in recent months, so there is a shift underway, but it’s a slow change and is not much of a concern for gold now.

If the dollar starts a leg higher will provide a good timing and market sentiment is at an extreme and earning season is here.This usually means lower prices for stocks and commodities.
Mid-Week Silver, Gold and Dollar Trading Conclusion:

In short, over the next 1-4 weeks, I am optimistic about the dollar and bearish or neutral on stocks and commodities. The reason I’m neutral because I do not like short things in a bull market phase when they can continue to go up much longer than we thought at times. Rather keep my strong positions and wait for a correction to buy / add when I feel the momentum has stopped selling later this year.