Your Questions About Indicator Forex Explained
December 18, 2011 by Forex Guide
Filed under Forex Account
Joseph asks…
what are the key fundamentals to watch for when trading forex? what economic indicators do u use? pls explain?
pls explain the correlations if u have time ie…when this indicator goes up, the value of the currency goes own etc etc
Forex Guide answers:
I understand what you are asking. There are a wide variety of news events (known as fundamentals in the forex arena) but, from my experience, the greatest movers are the consumer price index, the producer price index, and the non-farm payrolls number. Other news events, like the weekly jobless claims number, retail sales, and any sort of housing data tend to move the market slightly most of the time. I have not found GDP to move the market as much as many think, but it CAN move the market, especially if the number is unexpected. Other movers include the ISM and ISM Services, Michigan Consumer Sentiment Index, Trade Balance, Philly Fed, Empire State Index, Retail Sales, PCE, Richmond Fed, and Durable Goods. News from any major company, like GM, may slightly affect the dollar as well. One of the biggest indicators of all is any information that will affect interest rates on either side of your currency pair-here in the US it is the Fed, but in Japan it would be the BOJ, BOE in England, etc. I have given you some of the monthly reports that will affect the dollar but for a currency pair you will have to examine equivalent fundamentals for BOTH currencies-so for the CAD/JPY it would be important to examine Canadian as well as Japanese fundamentals. Other major economies will also have an affect on any currency pair, due to the law of one price and the effects of arbitrage in the world markets.
No one is going to give you correlations because they are going to be different for every currency and different every time. I am sure by doing a search you could find some historic correlations for the pairs you desire, but it always good to do your own research by watching the pair(s) that you choose and seeing the real minute by minute reaction, instead of just at certain times.
Forex Factory provides a good calendar of when the events take place, for all the majors:
http://www.forexfactory.com/calendar.php
Have fun. I don’t know if youre new to trading but if so you should know its hard work-just like being a doctor, lawyer, or business owner. The biggest trick as an entrepreneur in any field, especially trading, is NOT to listen to anyone that says you can’t do it, nor to the ones who tell you its easy-dumb and dumber my friend. Get in your own zone, never risk more than 2% of your capital, never be afraid to take a loss, control your costs, and set yourself up to profit when a pattern repeats itself.
Susan asks…
What Is a Good Intraday Trading Strategy For Forex?
Hi there,
What a strategy (system) do you recommend for an intraday Forex trader?
Please explain in detail and mention all the indicators, settings and … .
Best regards,
Vahid
http://www.weboma.com
Forex Guide answers:
Candlesticks are the best indicators in the world. They’re good for candlestick formation, elliot wave formation, and trend-line breakout. By mastering these 3 things, you should be able to break-even in Forex. To really make money though, you’ll have to master money management.
William asks…
How to use Forex Strategy Builder !?
I have successfully installed Forex Strategy Builder but I have not idea how to use the software to test my strategies, in terms of how to make the simulated market work, how to place buy and sell orders, and how to add and remove indicators. I have tried using the help tool that came with the software but it just explains what everything is, it does not show me how to use the software. I need to know how to use it. Any help would be most appreciated. Thanks.
Forex Guide answers:
I use a system called “forex autopilot“. It’s very good and there’s a nice review for it at http://www.fxsystemscompared.com
Paul asks…
What is your Strategy when trading in FOREX ?
Please tell me the time frame you trade in and the currencies that you prefer also any indicators if you use them………….any website links will also be helpful…….plz explain in detail bcoz this is very important to me……thanks……:)
Forex Guide answers:
Hi avhiphop,
It is really all depend to you. If you are live in Asia, then it is more likely that you can trade prior or during the London open or European session as price is begin their volatility moves at this hour.
The use of indicators also depend on each person’s preferences. Whether you are like to use leading indicators such as ATR, ADX etc. Or you like to use Lagging indicator such as MACD, Stochs or RSI.
If you would like to learn about Forex trading, here are lists of great site you can visit;
http://www.babypips.com
http://www.forexfactory.com
Mary asks…
I WANT TO TRADE IN CURRENCY ESPECIALLY ‘USD INR’ AND ‘EUR INR’?
HOW TO DETERMINE WHETHER INR WILL FALL OR RAISE AGAINST USD OR EUR ON EVERYDAY TRADE? WHAT ARE THE INDICATORS TO BE WATCHED AND HOW? PLS EXPLAIN AS I AM NEW TO FOREX.
Forex Guide answers:
As a 10+ year Forex trader, here is how I trade to make money…
If you want, you can also follow these steps. I’ve dumbed it down to the easiest, yet safest way to win in the Forex.
1) Open a live account at http://bit.ly/iPV25O
2) Select AAAFx broker, and open MICRO account with 200:1 leverage.
3) Deposit at least $300 in your account to start.
4) “Add to Portfolio” the top 20 strategies at http://bit.ly/mJiyZV
5) Don’t add any strategy that makes less than 10 average pips per trade.
6) …when adding strategies, set maximum number of trades to 5, and…
7) …select lot size of 0.1 “mini” lots for each $1000 in your account. 
It will trade automatically, following all those top 20 strategies.
9) Then sit back, relax and take a vacation as you make easy Forex money.
Powered by Yahoo! Answers
Forex Trading Strategy For The Yo-Yo Market
February 16, 2010 by Forex Guide
Filed under Forex Strategies
Learn this powerful secret Fibonacci Retracement method FREE that pulls 500+ pips per trade. Watch this Fibonacci Strike Video FREE and see this powerful method in action. Get these Forex Scalping Cheatsheets FREE. These forex scalping cheatsheets give you the five best forex scalping methods plus the best times for scalping. Watch these Triple Threat FX Trading Psychology FREE Video Series by Todd Brown that reveal the secrets of making millions in forex trading. Bruce Kovner was a NYC Taxi Cab driver who borrowed $3,000 on his credit card in 1977 and started trading forex. He ended up making $11 Billion.These FREE Trading Psychology video series will explain the secret that psychology and mental discipline is far more important than the method or for that matter the strategy in trading.
One of the Forex Day Trading Strategy that is often used by day traders is to buy and sell the same currency pair, same lots same time. In other words, you are taking both long and short positions in the same currency pair at the same time.
For example, buy 1 lot of EurUSD at 1.4239 and sell 1 lot of EurUSD for 1.4234. Note the difference between the buy and sell rate. This is the spread. Why pay the spread? The reason for buying and selling the same currency pair, same lots, same timing is that you are hedging your position. The up or down movement of the currency pair will provide you the opportunity to make profit. Place a stop loss of 5 pips and take profit of 15 pips on both the orders.
Suppose the rate goes up. The take profit order will close your long position (buy order) when it reaches a profit of 15 pips. For the sell order, the stop loss ensures that you only lose 5 pips. Your net gain 15-5= 10 pips. In this case, the winning buy order provides the foundation of 15 pips. By placing the stop loss you lock in your profit of 10 pips. 10 pips gain means $100 profit on a $1000 deposit with 1:100 leverage.
Never ever trade without a stop loss otherwise you can lose your deposit in no time. If the EurUSD rate goes down, stop loss closes your buy order at 5 pips loss while the take profit order closes your sell position when you reach 15 pips. Your net gain: 10 pips. This forex day trading strategy works very well in a yo-yo market. How to get a yo-yo market? Time your orders with a fundamental announcement.
Now, you can practise with this forex day trading strategy on your demo account. Do at least 10 trades. This day trading strategy does not need more than 10 minutes for you to implement. With practise you can increase your pips to 20,30,40 or even more.
The days of manual trading are almost over. With the introduction of the metatrader platform and the use of MQ4 robotic script, most of the forex traders now use expert advisors also known as robots to trade automatically. People are making thousands of dollar on autopilot with forex trading robots.
How To Reduce Risk To Zero In Forex Trading?
January 11, 2010 by Forex Guide
Filed under Forex Courses
Know these Forex Charts. Learn this 10 minute a day Swing Trading Strategy that is highly profitable. Learn to reduce risk to zero and triple your profits safely with these FREE Flexible Forex Day Trading Videos! In day trading, the most important thing is risk management. Surprisingly, many people jump into day trading without giving much thought to risk management. Manage your risk first, rewards will come later.
Day trading requires long term commitment. You have to be persistent. You need to improve continously. That’s why risk management is important. If you do not preserve your capital, you will not be able to survive long in this game and you will be unable to reap the real profits.
So how do you start with risk management in day trading? Treat day trading as a business. Make a good business plan with proper targets. Risk management should be an important part of this business plan. Now risk management may require a number of different control levels like managing your account balance.Making sure, it does not fall below a certain level. Than you need to learn how to manage losses in each trade. Your business plan should be long term. You should think about yourself as a long term player.
You need to determine what is the acceptable level ofr risk that you can take. To make it more clear, you see I may be comfortable with one level of risk but you may not be comfortable with that level of risk. You may have a different level of risk that makes you comfortable. This level of risk is the amount of money in your account that you can afford to lose without losing your sleep or getting emotionally disturbed. Knowing this number what can call your,”Tilt Number”, is very important. With this tilt number in your mind, you can trade safely. If you reach this number in a trading day,stop trading. Something has gone wrong. Is it your trading strategy? Is it your trading style? Whatever. try to figure it out first. Only then you should restart your day trading.
Another rule that you can follow is,” Three Strikes and you are out.” What this means is that if you lose three trades in a row, stop trading. Re-evaluate your trading strategies and style and only trade after a thorough analysis of what went wrong and how you are going to correct it.
Always calculate your Risk to Reward Ratio before you enter in a trade. Do not trade if the Risk to Reward Ratio is more than 1:3. What this means is that you have a chance of winning 3 trades against losing 1 with this Risk to Reward Ratio. Any thing more than this should be considered as too risky.
Learn the use of Stop Loss. Never ever trade without a stop loss order in place. Manage each trade. If the markets are unpredicatable or you have difficulty understanding the market mood, don’t trade!
Day Trading Strategies
January 8, 2010 by Forex Guide
Filed under Forex Strategies
Get these FREE Forex Scalping Cheatsheets. Learn this 10 minute a day Swing Trading Strategy that is highly profitable. Watch these 4 Flexible Forex Day Trading Videos that show how to reduce the risk to zero in forex trading and triple your profits safely. In day trading, your strategy is very important in determining how much you make. In order to succeed in day trading, you need to be selective in choosing your strategy and than mastering it.
Trend trading is the most popular trading strategy that is used by the global hedge funds and other successful traders. Always remember the saying, ” Trend is your friend.” Big profit potential lies in trades that capture big market moves. But most of the time the market is not trending. 70% of the market moves occur only 20% of the time.
Most of the time, markets are ranging. Ranging means they are consolidating and moving sideways. You identify a range by the rectangle patterns that form in the price action charts. However, range trading is not as profitable as trend trading. But what to do when the markets are not trending. At those times, you can only do range trading.One of the best trading strategy in range trading is scalping.
As a day trader, you don’t want to lose sight of the overall market. So how do you go about determining when the market trending. You need to use Multiple Timeframe Analysis. Looking for opportunities to buy in a uptrend or sell in a downtrend is much more profitable as compared to buying at the top and selling at the bottom as done in range trading. In multiple time frame analysis, you can use the daily or weekly chart to determine the overall trend in the market and then use a hourly or a 30 minute chart to narrow it down to determine the exact entry and exit points in the trade.
Currency markets are influenced by the large transactions done by the big banks. If a large transaction is done by a bank, it can effect the overall price action in the market in the short term. There is a day trading strategy called, ” Fading the Double Zeros” that tries to capitalize on this. There are certain psychological price levels that are used as triggers for large order flows by banks. If you have this insight and believe that the price action is being influenced by large double zero order flows by a big banks, you can use this insight to make many pips in day trading.
There is continous action in the currency markets 24/5. What this means is that the currency markets are open 24 hours, 5 days a week apart from the weekends. You can divide the 24 hours in the currency markets into different sessions like the Asian Session, the European Session and the US Session. There is one strategy known as the London Rush Hour that uses the London Session.
You can also use a intraday breakout strategy or fading strategy. Whatever trading strategy, you select first practice it on your demo account thoroughly and try to master it.
