Posts
False break on daily level of support a good opportunity to take long to the resistance level area marked on the chart .
Tuesday
USD/JPY Opportunity For Long Trade
The pair created a pin bar on support level and now provides an opportunity for long trade The expectation is the pair will continue to increase to the levels that marked in the graph.
Monday
Saturday
Gold Technical Analysis
as you can see in the gold chart there is still potential for further increases there is 2 pin bars on strong support 1530 price area, the target will be 1790 resistance,stop location preference below 1500.
Pin Bar Forex Trading
Pin bars are one of the most popular price action forex trading strategies. They show a clear rejection of a price level and are often followed by a large directional move opposite the direction of the rejection.pin bar is the highest-probability setup that are worth risking your earned money on, I prefer to trade only 4 hour and daily time frame,because is a much higher probability the trade will be Successful.
Bearish pin bar Bullish pin bar
Here is an ex example of a long trade on EUR/USD daily time frame
Here is an ex example of a short trade on USD/CAD 4 hour time frame
Now after you know what is pin bars and how to trade them you can try trading them on a demo account,and star your way in forex trading.
Thursday
Forex Order Types
Limit Entry order A limit entry order is placed to either buy below the current market price or sell above the current market price.
Sell Limit Order
Buy Limit Order
Stop Entry order A stop-entry order is placed to buy above the current market price or sell below it. For example, if you want to trade long but you want to enter on a breakout of a resistance area, you would place your buy stop just above the resistance and you would get filled as price moves up.
Sell Stop Order
Buy Stop Order
Stop Loss order A stop-loss order is an order that is connected to a trade for the purpose of preventing further losses if the price moves beyond a level that you specify.
Trailing Stop The trailing stop-loss order is an order that is connected to a trade like the standard stop-loss, but a trailing stoploss moves or ‘trails’ the current market price as your trade moves in your favor.
Risk / Reward Important Part Of Forex Money Management
Forex trading is a game of probabilities, traders who learn to view and think about trade setups In terms of risk to reward,are the ones who usually end up making money in the Forex market. Defined trade setups at the right place and time is definitely a necessary ingredient to Successful trading.However, it is possible to make consistent money even if your discretionary Trade setup identification skills are not fully matured yet. Risk to reward setups are what give all Traders an equal chance at making consistent money.
Risk to reward is one of the most important pieces of the puzzle to profitable trading.And proper amount of self-discipline and emotional control.
Learning to think in probabilities and to view the market in terms of risk to reward, it is Necessary to calculate the risk on a trade, then you can calculate the reward as a multiple of the Amount you have at risk.
Concentrating on the risk first making you more aware of the risk involved on each trade setup.
Risk level for this setup is 40 pips the distance from the low to the high of the pin bar.We will figure 1$ per pip for the example so the risk is 40$ and the profit potential for 2times Risk is 80$ 3times risk is 120$.
Getting a risk / reward At least of 1:1 or 1:2 on every trade, you can lose on well over 45-50% of Your trades and still make money.
Now we learned from this article is that you can make still money in the forex markets even if You lose more trades than you win.
Price Action Forex Trading
What is price action forex trading?
Price action trading is the art and skill of making all of your trading decisions off of a stripped
Down or price chart. This means no lagging indicators outside to help identify dynamic support And resistance areas. All financial markets generate data about the movement of a security Over varying periods of time in the form of price charts.
All economic data that leads to price movement within a market is first turned into a belief in the Human mind about how this data will affect the market and this belief is then turned into an Action from a trader which reflects itself via price action on a price chart. In this way price action Trading reflects all variables of any market for any given period of time.Price movement Provides all the signals you will ever need to develop a profitable and high-probability trading System.
Price action forex trading can be used to trade any financial market; however the forex market Has the deepest liquidity and lowest startup costs as well as widest accessibility of any Financial market, for these reasons it is the most popular market today among retail traders. Price action trading is that you only need to master to be consistently profitable. In fact, having a Simple trading method consisting of minimal setups will work to reduce confusion and stress And allow you to concentrate more on the psychological aspect of trading.
Using numerous lagging forex indicators on your charts confusing you and are one of the main Reasons why you are still unsuccessful.
Look at the two charts below and ask yourself which one seems more logical and less stressful
Messy vs clean price charts
Messy chart
Clean price Chart
You could learn to trade off a clean price action only,Price action setups are the best predictor Of future price movement, Price action is the best indicator of the aggregate belief of all market Participants.
Bottom line is that there is just no logical explanation for using lagging indicators. Price action Analysis takes into account all market variables.
Forex Trading With Money Management
When you are
trading with money management then you will be able to protect your capital and Make sure that you keep your profits as high as possible and limit your losses.
In principle this Sounds quite easy, however there are far too many people who
break these simple rules.
I will firstly
discuss what your money management strategy should not look like. One of these Examples is a strategy which is called the “martingale” strategy which involves
increasing your Trade size after every loss. However it is important to point
out that this is actually the opposite Of what good money management strategy
does.
This strategy
was initially developed for the game of roulette, however many people try to Implement this strategy when it comes to trading. The logic behind it is that
if you lose a trade Then you need to win that amount back and make a small
profit in the next trade. However this Strategy can result in you going broke due
to the size of the loss or through not being able to Increase the size of your
trade anymore because of a lack of available leverage.
One of the best
money management strategies is to simply set a risk percent per trade and Then
adjust the size of your lot after each trade. However the important question is
how much Should you risk per trade? You should choose a level of drawdown that
you never want to Surpass then you will need to observe the results of your
system from the previous 12 months. Your risk percent setting should generate a
maximum drawdown of half of that value on the Backtest.
If you ever
reach the point where you get to the maximum drawdown you set you should stop Trading with the system and use paper trading in order to observe whether it
picks up again. If The drawdown actually reaches double the size than ever
before this means that it is likely that Your system is not working correctly
or the backtest is not reliable.
You should also
always look at the factors surrounding Forex trading. If you rely on leveraging Then it is important that you are aware that the volatility of the currencies
can be significantly Pronounced so it is important that you always keep your
account under review in order to Monitor your investment and ensure that it is
not in danger.
An important
aspect of trading with money management is that you always keep accurate Records of your losses as this will also help you to determine the direction
of your investment. Money management is a vital part of Forex trading
regardless of how much money you are Investing. It is also recommended that you
spready your money across the board instead of Having growth spurts at one
point.
Forex Trading Psychology
trading psychology. Many people are frightened about
Forex trading because they think it is too difficult and they are worried that
they may lose money. However this is not true because with the right trading
psychology along with some easy to implement techniques, Forex trading can be effortlessly
conquered.
Most of the
techniques involve the mind of the trader and this is described as Forex
trading psychology. Research has found that over 90% of a trader’s success
depends on their trading psychology.
It is important
to note that a successful Forex trader will always trade with a per-determined
plan. A trader will have fixed and realistic goals as well as use proven
methods which will enable the trader to earn realistic returns over the long
term.
When a trader
has a solid plan then they will know what to do every step of the way in order
to achieve their goals and they will always be aware of what results they can
reasonably expect.
A successful trader is
always disciplined and this is something that many Forex traders find
difficult. However if you have a solid and proven plan as well as goals to keep
you motivated, then it is easier to become disciplined. Learning how to control
your emotions and overcome impulses is an
important part of becoming a successful trader.
Aa successful
trader will always follow a sound money management strategy. Quite simply if
you are a trader who does not have a money management strategy then you will
end up going broke. Proper money management rules are vital and should always
be included in your Forex trading plan.
It is important
to point out that the attitude of a trader is often the difference between success
and failure. The correct trading psychology is one which makes honest
assessments as well as accept events which have already taken place.
You need to
learn to accept that losses are a normal part of the Forex trading business. It
is recommended that you make a slow but steady start, be neutral as well as non
judgemental about oneself.
It is also
important that you understand that currency trading takes place in an
environment which offers a variety of unique challenges. You need to be aware
that markets are powerful, work ethics do not count for anything and also being
very clever does not necessarily mean you will be successful.
Therefore it is
vital that you have the correct trading psychology. You need a solid plan, act
with discipline and apply the right rules in order to become a successful
trader.
trading psychology. Many people are frightened about
Forex trading because they think it is too difficult and they are worried that
they may lose money. However this is not true because with the right trading
psychology along with some easy to implement techniques, Forex trading can be effortlessly
conquered.
Most of the
techniques involve the mind of the trader and this is described as Forex
trading psychology. Research has found that over 90% of a trader’s success
depends on their trading psychology.
It is important
to note that a successful Forex trader will always trade with a per-determined
plan. A trader will have fixed and realistic goals as well as use proven
methods which will enable the trader to earn realistic returns over the long
term.
When a trader
has a solid plan then they will know what to do every step of the way in order
to achieve their goals and they will always be aware of what results they can
reasonably expect.
A successful trader is
always disciplined and this is something that many Forex traders find
difficult. However if you have a solid and proven plan as well as goals to keep
you motivated, then it is easier to become disciplined. Learning how to control
your emotions and overcome impulses is an
important part of becoming a successful trader.
Aa successful
trader will always follow a sound money management strategy. Quite simply if
you are a trader who does not have a money management strategy then you will
end up going broke. Proper money management rules are vital and should always
be included in your Forex trading plan.
It is important
to point out that the attitude of a trader is often the difference between success
and failure. The correct trading psychology is one which makes honest
assessments as well as accept events which have already taken place.
You need to
learn to accept that losses are a normal part of the Forex trading business. It
is recommended that you make a slow but steady start, be neutral as well as non
judgemental about oneself.
It is also
important that you understand that currency trading takes place in an
environment which offers a variety of unique challenges. You need to be aware
that markets are powerful, work ethics do not count for anything and also being
very clever does not necessarily mean you will be successful.
Therefore it is
vital that you have the correct trading psychology. You need a solid plan, act
with discipline and apply the right rules in order to become a successful
trader.
Wednesday
Forex Trading Benefits
24 Hour Market
Since the forex market is worldwide, trading is continuous as long as there is a market open some where in the world. Trading starts when the markets open in Australia on Sunday evening, and ends after markets close in New York on Friday.
Liquidity
In forex we can move large amounts of money into and out of foreign currency with minimal price movement.
Leverage
Leverage is the ability to trade more money on the market than what is actually in the trader's account. If you were to trade at 50:1 leverage, you could trade $50 on the market for every $1 that was in your account. This means you could control a trade of $50,000 using only $1000 of capital.
Profit Potential
The forex market has no restrictions for directional trading. This means, if you think a currency pair is going to increase in value you can buy it, or go long. Similarly, if you think it could decrease in value you can sell it, or go short.
What Is Forex Trading?
If you are reading this article then you are probably looking for more information regarding Forex trading. You may already be familiar with the phrase as you may have come across it on The television or on various websites, however just what is Forex trading? The Forex market is Operated 5.5 days a week and is it available to anyone who has a computer as well as an Internet connection. Forex trading can be carried out from anywhere in the world and it is Important to point out that it is completely different to stock trading.
Forex trading involves a particular trader buying and selling different currency pairs and Currencies from various countries are then traded against each other. For example the Currency in Europe apart from the UK is known as the Euro and in the United States the Currency is known as the US dollar. Currency pairs include the EUR/USD which is the Euro and The US dollar and the GBP/JPY which is the British Pound and the Japanese Yen. There are a Variety of different currency pairs that can be traded and Forex trading is the process where You will either buy or sell a currency with the knowledge that it will either go up or down. You can Then make a profit based on the price you purchased it at and by how far it moves.
You may be wondering why
an individual would want to trade the Forex market instead of the More
traditional stock market.The main reason is that the Forex market is open 5.5
days a Week and it is a 24 hour market.This means that the Forex market gives
you the ability to open And close your trades at
anytime of the day. The other main reason why people choose the Forex market is
because it is a volatile market which means you can make large profits if you Are lucky enough to be on the right side of the trade.
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| FreeDigitalPhotos.net |
The word Forex is actually an acronym for the "Foreign Exchange". There are many places Online where trades can be completed either through a market maker or a broker. In order to Place an order this usually will only require a few clicks of a button and when your order has Been received then it will be passed on to a partner in the Interbank Market so that your Position can be filled. Once you decide to close your trade then the broker will finalize your Position on the Interbank Market and your Forex trading account will then be credited with any Gains or losses you have made.
When you first start trading Forex then it can be difficult to understand the process so it is Recommended that you get some training in order to learn about how the Forex market works. You can also learn about Forex trading charts which will then increase your understanding of How the market operates.
