There are generally two forex trading strategies you need to know, but you will only need one of them to be successful in Forex trading.
One of the most important questions that you should make yourself before you opt for the Forex trading strategy is to find out your tolerance towards risk. Knowing your own personality traits is important, so you can use an effective strategy for your trading activities.
You should not predicting the evolution and the market as your forex trading strategy, because that is certainly one way to accede to 95% of traders who are losing money.
You have to keep your strategy simple and not always emotionally attached to certain set of two coins that you are trading with the hope that it will help a lot of money.
Some traders will probably advise you to use swing trading strategy when you first start because it helps to take care of two important issues that face new forex traders, but could not overcome. This strategy is very simple, because you only need to focus on support and resistance during the use of some momentum indicators to enter the market at the right time.
This strategy helps them to understand that patient and the treatment of more trade does not mean that they can make more money.
No matter what kind of forex trading strategy that you plan to use, it is important for you to invest some money for your training, so you can enjoy a sustainable forex trading success.
Wednesday, December 31, 2008
KEYWORD FOREX DEFINITIONS
If you have just started their journey in the world of trading Forex, which will be useful for the definition of some terms you need to know before you start trading. Whether you call it Forex or FX, you're talking about the foreign exchange market. This is where the trading of currencies, against each other, is done. To get an idea of how big is the action, add all the stock exchanges in the world together and the Foreign Exchange dwarfs them all!
When you consider that speculators, hedge funds, large corporations, governments and even, and several private investors to participate in currency trading, it is hardly surprising that this market is so strong and that the estimated average daily turnover of the foreign exchange market is more than 3 trillion U.S. dollars!
Here are some definitions you will want to know before you start trading in Forex market.
1. Spot Trade: This is the purchase or sale of a foreign currency or a commodity for immediate delivery. Spot trades are settled "on site", as opposed to a fixed date in the future. Futures transactions which expires next month, are also called spot trades. The transaction must be resolved within two business days.
2. Lance: It refers to the price at which the buyer is obliged to buy the currency.
It can be compared to an auction, when someone puts his hand to say
they are willing to buy the things they auctioned off the price.
3. Limit Order: This is where you want to give instructions to buy or sell a currency at a specified exchange rate.
4. Inter Bank Rates: This is the launch of exchange rates and international banks that are traded when buying and selling among themselves.
5. Spread: This is the difference between the purchase price and asking for a coin.
6. Stop Loss: occurs when given an order to buy or sell a currency at a price set by the client in a particular trade. If the price is reached, he will quit the position, in particular the price declared.
7. Transaction Date: This is the date that trade in currencies is being done.
8. Date of liquidation: This is the date of exchange of currencies that contracts are settled.
When you consider that speculators, hedge funds, large corporations, governments and even, and several private investors to participate in currency trading, it is hardly surprising that this market is so strong and that the estimated average daily turnover of the foreign exchange market is more than 3 trillion U.S. dollars!
Here are some definitions you will want to know before you start trading in Forex market.
1. Spot Trade: This is the purchase or sale of a foreign currency or a commodity for immediate delivery. Spot trades are settled "on site", as opposed to a fixed date in the future. Futures transactions which expires next month, are also called spot trades. The transaction must be resolved within two business days.
2. Lance: It refers to the price at which the buyer is obliged to buy the currency.
It can be compared to an auction, when someone puts his hand to say
they are willing to buy the things they auctioned off the price.
3. Limit Order: This is where you want to give instructions to buy or sell a currency at a specified exchange rate.
4. Inter Bank Rates: This is the launch of exchange rates and international banks that are traded when buying and selling among themselves.
5. Spread: This is the difference between the purchase price and asking for a coin.
6. Stop Loss: occurs when given an order to buy or sell a currency at a price set by the client in a particular trade. If the price is reached, he will quit the position, in particular the price declared.
7. Transaction Date: This is the date that trade in currencies is being done.
8. Date of liquidation: This is the date of exchange of currencies that contracts are settled.
ATTITUDE TRADING FOREX
If you are a risk taker, whether you like to do business? If you have a highwant to know nature, whether you trust people to manage your assets and your money? Answer the first, you have the money to do business more like a business even though it is at risk because every business has a risk of varies. The second, every person who has more money will be more careful in business without trust someone who does not know.
My advice, you should be sure and can do and know how to do business. Trading in how wise when you know every detail and understand the opportunities and how to maximize the opportunities that exist. Never trust your money to another person without that you own or manage have been really understand the risks of trading.
If you delay people who temporize something, you do not have the confidence and self-disciplinary? Should never trading.Save about your first, before you sure you do things correctly. Trading price movements are only in a clockwise trade in the international money market. Survey that will guide and convince us to take the attitude in responding to opportunities in trading.
Trading offers an opportunity with the risks that are not different from other businesses, everything will return to us each to know the capabilities and limitations of the risk business.
My advice, you should be sure and can do and know how to do business. Trading in how wise when you know every detail and understand the opportunities and how to maximize the opportunities that exist. Never trust your money to another person without that you own or manage have been really understand the risks of trading.
If you delay people who temporize something, you do not have the confidence and self-disciplinary? Should never trading.Save about your first, before you sure you do things correctly. Trading price movements are only in a clockwise trade in the international money market. Survey that will guide and convince us to take the attitude in responding to opportunities in trading.
Trading offers an opportunity with the risks that are not different from other businesses, everything will return to us each to know the capabilities and limitations of the risk business.
TRIUNITY THEORY IN TRADING
Changes to a Market
Behavior (psychology), or factors beyond logic, and insight always move financial market. By identifying the level of imbalance between market prices and market sentiment is the best way to foretell the direction of movement should be next. We can make money with precisely the level of error estimated other people in the movement of the market. Changes in the behavior of the economy and market acceptance of the economy and will never reach the level of balance in regard humans, or psychology, all of the elements and actors in the market.
Three Basic Triunity In theory deal: sentiment (Psychology), reasoning (fundamental / Focus Investment meantime) and the Agency / Price (Technical / Price Trends)
Turnaround from all activity between brain function and the three markets, the sentiment, reasoning and Price. Each function affect each other. These functions, among other psychological conditions (passion / mood), the concept of movement (the mind / fundamentals) and the market price (the body).
Psychology is the sentiment of the market movement
The market is about psychology or belief. Take the market price of up to the level of optimism pesimism. The level of error movement to create a process or a basic lack of market actors, as the central do not want , but as a small factor in the study area from the movement of the market.
While the focus is a fundamental investment idea from the Movement Growing Market
Each market saturation always decorated by the pressure of ideas that we call the market as a factor "fundamentals". Triunity in the fundamental theory is the primary focus of the financial market. That there are elements of the economic indicators of each country which can affect the market price movements.
Teknik is a pattern of price movements of Growing Market
In theory Triunity, technical statistics from the overall market movements, such as the volume of transactions, the price of a new peak, the increase and decrease of market movement that formed patterns and trends. Establish the pattern of price, estimates of future trends, and the appropriate placement transaction position is the basic trends of Sustainability Analysis
Theory Triunity Tren Positioning System and Trends.
The reasoning (Basic Investment Focus) affect Movement (price patterns) and the creative vitality (Psychology)
Investors who trust the Basic Investment will buy the stock price increases and price increases. Positive thoughts will encourage investors to price and form a technical agreement (price patterns). This produces mood of the market better. Inventory Turnover trade is part of the theory Triunity in the market, we can use in the deal and take a decision portfolio. And more important, this theory can help us to be able to consider the amount of macro-economic factors of the market movement and direction of movement of the market.
Behavior (psychology), or factors beyond logic, and insight always move financial market. By identifying the level of imbalance between market prices and market sentiment is the best way to foretell the direction of movement should be next. We can make money with precisely the level of error estimated other people in the movement of the market. Changes in the behavior of the economy and market acceptance of the economy and will never reach the level of balance in regard humans, or psychology, all of the elements and actors in the market.
Three Basic Triunity In theory deal: sentiment (Psychology), reasoning (fundamental / Focus Investment meantime) and the Agency / Price (Technical / Price Trends)
Turnaround from all activity between brain function and the three markets, the sentiment, reasoning and Price. Each function affect each other. These functions, among other psychological conditions (passion / mood), the concept of movement (the mind / fundamentals) and the market price (the body).
Psychology is the sentiment of the market movement
The market is about psychology or belief. Take the market price of up to the level of optimism pesimism. The level of error movement to create a process or a basic lack of market actors, as the central do not want , but as a small factor in the study area from the movement of the market.
While the focus is a fundamental investment idea from the Movement Growing Market
Each market saturation always decorated by the pressure of ideas that we call the market as a factor "fundamentals". Triunity in the fundamental theory is the primary focus of the financial market. That there are elements of the economic indicators of each country which can affect the market price movements.
Teknik is a pattern of price movements of Growing Market
In theory Triunity, technical statistics from the overall market movements, such as the volume of transactions, the price of a new peak, the increase and decrease of market movement that formed patterns and trends. Establish the pattern of price, estimates of future trends, and the appropriate placement transaction position is the basic trends of Sustainability Analysis
Theory Triunity Tren Positioning System and Trends.
The reasoning (Basic Investment Focus) affect Movement (price patterns) and the creative vitality (Psychology)
Investors who trust the Basic Investment will buy the stock price increases and price increases. Positive thoughts will encourage investors to price and form a technical agreement (price patterns). This produces mood of the market better. Inventory Turnover trade is part of the theory Triunity in the market, we can use in the deal and take a decision portfolio. And more important, this theory can help us to be able to consider the amount of macro-economic factors of the market movement and direction of movement of the market.
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