Your Questions About Indicator Forex New
December 5, 2011 by Forex Guide
Filed under Forex Account
Richard asks…
Forex Trading indicators?
Hi all, I am new to this online trading so I need some information on these Forex indicators like SMA, EMA, STOC, RSI, FIB, MACD, BOLL and how to analyse themi n trading.
Forex Guide answers:
Try the forex tutorial at www.forexlane.com. The technical section has an explanation and methods of use for all the technical analysis tools that you are looking for.
Chris asks…
Effective FOREX trading systems?
I’m new to trading FOREX and would like some insight on how to come up with an effective system to bring somewhat consistent gains.
I’ve learned about all the trend indicators and oscillators but just can’t formulate a way to harmonize them to attain results.
Can someone give me an example of one that works for you? PLEASE HELP!
Don’t be shy on getting technical, I’ll most likely figure it out.
Forex Guide answers:
This works for me and it is free!
Http://forex-strategies-revealed.com/
Sharon asks…
Anybody knows a successful forex strategy that lies on technical analysis only ?
I’ve been trading forex for a long time, i’ve learned a lot about technical analysis, indicators, charts and even some of fundamental analysis. i tried many strategies some i found on websites, forums and others invented by me but none of them worked. I know it’s a matter of risk managment too, i’m aware about all of this as i’m not new to forex, but i’ve seen some people in forex tournaments make lot of money, even it’s virtual money but this means they use a successful strategy or maybe a software. Anybody has experienced a successful forex strategy or a software can help plz ? Thanks in advance
Forex Guide answers:
I hope that I found an article that will probably answer your question.
Betty asks…
need a opinion on a forex strategy?
i need an opinion on a forex strategy i use. here is what i use my time frame is the daily charts and i only trade the majors i use the following indicators Heiken-Ashi, and a 5 day on the open & 6 day on the close EMA plus a MACD and the ADX indicators on the bottom and i trade the crossovers is there anyone here that trades the forex with a similar setup what im looking for is just some opinions from some more experienced forex traders ive been back testing this for a couple of months and seems to be profitable but maybe i might just be missing something a more knowledgeable forex trader might be able to help me tweak it some more i realize there is no holy grail but any opinions would be greatly appreciated thank you for your time ive traded stocks for 30 years but the forex is a whole new ballgame
Forex Guide answers:
Opening and closing prices in forex do not have the same weight they do in stock trading, since forex is a continous 24 hour market. If you are using a 5 and 6 day EMA, and trading the crossovers, you might get many false signals. Test EMA 5 over EMA 13 on the close prices.
I have never used the Heiken-Ashi, but the MACD is pretty accurate on the daily chart when it gives bullish or bearish divergences and that is confirmed by a crossover or another signal elsewhere.
Back testing has the drawback of allowing the trader to ‘curve-fit’ the chart, better to test how the indicators perform in a demo account.
ADX is an okay indicator, but proper use of EMA with MACD will probably give better trade calls over the long term than the ADX alone.
Do not neglect the fundamental picture and know when to stay out of the market (major data, announcements), practise, practise, practise.
And good luck.
Sandra asks…
What is the link between an improving economy and rising govt. bond yields?
Happy Christmas and New year to all.
I’m learning about forex and the book that I am reading (Forex for Dummies) mentions rising 10-year government bond yields as a possible indicator of a currency that may be on the way up in relative value. The logic is that the increase in bond yield indicates a rising economy and therefore a greater possibility of an interest rate increase at some point in the future in order to keep a tab on inflation. Therefore more buying interest in the currency now and a rising relative currency value.
The link that I cannot make is the link between the rising economy and the rising bond yield. Is it because people are dumping bonds and buying stocks instead, thus pushing the bond price down and the relative value of the yield up. Or what?
Thanks.
Forex Guide answers:
Essentially, yes. Perceptions of a “rising economy” will tend to move capital out of relatively low-yield bonds and into equities. Thus, the bond yields rise because demand for them slackens.
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Your Questions About Forex Demo Trading Account
October 15, 2011 by Forex Guide
Filed under Forex Account
Joseph asks…
When selling a currency pair, what order do I use to take profits?
I am reading and learning forex trading using a demo account. I am selling the USD/CHF. I have my buy-stop in place above the market in case it moves against me. I learned this is a good money management practice. I have my take profit target set but do not know the order to implement that will allow me to leave the computer and not have to monitor the position. Any advice from the pros will greatly enhance my learning experience. Thanks so much!
Forex Guide answers:
As a general rule of thumb, traders should set stop/loss orders closer to the opening price than limit orders. If this rule is followed, a trader needs to be right less than 50% of the time to be profitable. For example, a trader that uses a 30 pip stop/loss and 100-pip limit orders, needs only to be right 1/3 of the time to make a profit. Where the trader places the stop and limit will depend on how risk-adverse he is. Stop/loss orders should not be so tight that normal market volatility triggers the order. Similarly, limit orders should reflect a realistic expectation of gains based on the market’s trading activity and the length of time one wants to hold the position. In initially setting up and establishing the trade, the trader should look to change the stop loss and set it at a rate in the ‘middle ground’ where they are not overexposed to the trade, and at the same time, not too close to the market. Limit orders, also known as profit take orders, allow Forex traders to exit the Forex market at pre-determined profit targets. If you are short (sold) a currency pair, the system will only allow you to place a limit order below the current market price because this is the profit zone. Similarly, if you are long (bought) the currency pair, the system will only allow you to place a limit order above the current market price. Limit orders help create a disciplined trading methodology and make it possible for traders to walk away from the computer without continuously monitoring the market.
Visit this site for more information. Their system allows traders to change their trade orders as many times as they wish Free of charge, either as a stop loss or as a take profit. The trader can also close the trade manually without a stop loss or profit take order being hit. Many successful traders set their stop loss price beyond the rate at which they made the trade so that the worst that can happen is that they get stopped out and make a profit.
Should you wish to trade with them, for a minimum deposit of $100 they will provide you a personal Account Service Manager with whom you can discuss live any of your technical questions and will even trade along with you to make sure you get familiar with their system.
Jenny asks…
How to step up my Forex game?
Hola,
I’ve been trading Forex in a demo account for over 2 months now. I’ve lost everything once in the process, made over $1,000 some days, etc. But I would like to research forex trading more to get more expert opinions. I’ve read the whole beginner’s guide on www.babypips.com (good resource for people brand new to Forex!)
Anyway I was just wondering…… are there any people out there famous for trading Forex full-time and being successful at it? Are there any widely-acclaimed books or articles or schools of thought? Keep in mind I’m not referring to “systems” you have to pay for, ie. scam artists.
My forex blog:
www.yarcofin.wordpress.com
Forex Guide answers:
I don’t trade forex full time, but I have alot of experience trading other markets. I guess if you’re trading technicals then you can use those no matter what the market.
One thing I’ve noticed about forex is that if I pick a direction and enter when volatility is shrinking usually end up with a winning trade.
As for resources, I think the best teacher is going to be experience. Just trade as small as you can while you learn.
Chris asks…
I Need Someone Who Can Loan me $1,000 To Start A Business?
I am here to see if someone can loan me $1,000 to start a business. I have been trading forex on demo account and I make average of 100 pips per day. I needed some money to open a live account. I will pay back the person after one month.
Forex Guide answers:
Trading forex is not a business. You’ll have to open a margin account with your forex brokerage, or get a bank loan.
David asks…
If I Open a trade in forex, Does it mean I’m creating a “market order”?
I’m a newbie in forex trading, just downloaded a broker platform and doing demo/practice account.
There I see option called “open trade” and also called “create order”. I’m confused that whether in order to open a position shall I click “open trade” or “create order” because what I learned from forex tutorials is that in order to buy or sell instantly, you should create a “market order”, but in my demo practice account trade is opened by just mere clicking on “open trade”, so I wonder what role plays the “create order”
Forex Guide answers:
Hi,
firstly generally,
Market order means to buy / sell at current price
buy limit order means to buy at the limit price or lower.
Sell limit order means to sell at the limit price or higher.
Are you using MT4?
Anyway since you are doing DEMO, why don’t you experiment?
If it is a market order, you will see your order appear in the chart at the current price.
Pending orders will requrie you to specify a entry price and if you place it, it will appear at the price you specified.
If you are new to forex, you can visit my blog where i write articles for newbies.
Hope i helped!
Daniel asks…
does this Forex trade strategy work on the live account?
I been using the demo account and thought of this little strategy which help me profit 200 dollars in one day for a couple of hours, but I don’t know if it works on a live account. First of all I buy as many trade as I could, and put them with a volume of .05, so that means you wouldn’t profit and lose that much. Majority of the trade will be losing money, so all i have to do is wait for one to gain some amount, and i will close the trade. Thus, profiting about fifty cent. I will buy the same trade again for a low volume. If the same trade profits again, then I will buy it for a higher volume like 1. I do the same with all the other trade. This is slow profit, but really works for me on the demo version. I’m not sure if it will be like that for the live version.
Forex Guide answers:
It will not work.
Demo account is because of you large capital in it and your low volume .
In the live account, with the trading style you play. When the trade goes the other way. You would have gotten a margin call.
Forex trading does not work like this.
If you want to be a full time forex trader. You have to take it like a business.
- Proper money management
- trading psychology
- mastering price action
- exit plans
- stop loss placement
etc.
This is what we teach in Asia Forex Mentor.
To an Awesome Trading,
Ezekiel
http://www.asiaforexmentor.com
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Why Millions Of People Choose Online Forex?
December 2, 2009 by Forex Guide
Filed under Forex Guides
Nowadays there are so many ways of earning money without leaving your home. One of them is online forex. Internet offers us new opportunities. With the advent of the Internet our lives has been changed forever. Online businesses and e-commerce became so popular that now millions of people are engaged in this kind of business.
Besides e-business, there are other ways to earn money online. Perhaps you have heard of forex market. Sure, you have seen advertisement of the forex. Forex ads are everywhere. No wonder. It is a forex boom now.
Why is forex so much popular with different people? Note that even people with no experience in the financial markets come to forex. Even people who have never been to a stock exchange want to become traders.
Forex offers unprecedented opportunities to all traders. Moreover, it offers equal opportunities. Thus, a beginner and a seasoned trader have equal chances of making correct forecasts and earning money.
In early 1990s forex was closed for small players. It was a market for banks, large corporations and even governments. If you did not possess millions you could not trade in forex. Now the situation is totally different. If you have $200 in your pocket and a computer connected to the Internet you can become a forex trader.
Indeed, forex is a very attractive market. But many people forget that this is the largest and the most unpredictable financial market in the world. For most individual retail forex traders forex is something like a new casino type. You bet money and wait for the win.
Forex does not work this way. This is a job, not a hobby. If you are not ready to learn and to lose sometimes you are not ready to become forex trader. Forex is not a casino. Sure, sometimes it looks like casino. But in most cases changes in exchange currency rates are predictable. In order to make forecasts you need to possess information which is available to everybody.
But having this information in not enough. You need to analyze it. Analysis is a key forecast method in forex. If you cannot analyze information, you will not be able to make correct forecasts and thus earn money.
Foreign exchange trading requires special skills and knowledge. Of course this knowledge and skills are to be acquired in practice. There are no born traders who entered the market with experience.
Many beginners refuse to learn. They want to earn money and do nothing. This is impossible in forex. There is no fast cash in this market. Forget about it. If you want to gamble, then go to the casino. It is a better place to try your luck. Forex is a job that likes professionalism. Is it may be your chance to change your life?
Those who are looking for productive forex software – please read the review of this forex software, before buying any.
It is obligatory to read reviews before purchasing forex software.
Why FX Traders Must Pay Great Attention To The Forex Psychology
December 2, 2009 by Forex Guide
Filed under Forex Guides
Perhaps you have heard stories of people who lost money in forex. They are quite dramatic, aren’t they? And those stories are 100% true! Indeed, many people lose in forex. But at the same time it does not mean that forex is a scam. 90% of fx traders lose money in forex, while only 10% are able to win money there on a regular basis and in the long term.
Forex is a very tricky market. It all looks quite optimistic for forex traders. You have the Internet and trading platform. You have your PC. You can work any time you want. You have all the graphs and charts. All you need to do is to enter the market at the right time and then leave it properly. Seems quite easy, huh?
It appears that it only seems easy. This explained the fact that so many traders lose in forex. Some of them bring their life savings to forex and lose everything they have. It is not easy to recover after such enormous losses.
Amateur traders hope to have a bright future of rich men. They hope to earn at first $100 a day, and then increase capital. Sure, everybody wants to earn big money without doing anything. But it does not happen this way in forex.
Most fx traders have no respect for forex psychology. The psychology of a trader is very important. Every experienced trader would tell you that it is important to stay cool and not to let your emotions overwhelm you.
Forex psychology prepares you to deal with big money. When you see millions and billions of dollars out there in forex you lose control over your emotions. When you pictures yourself mansions and yachts which they will have once turning rich, they totally lose control over emotions.
Once a trader gets angry he may forget about getting any profit. Well, he may win once or twice but that will be his good luck which is as known not eternal. Good luck ends one day. Then come the losses.
Forex psychology teaches traders to fight greed. Greediness is the most serious weakness of most traders. The desire to earn as much money as possible makes traders take up stupid and risky decisions. Well, the risk is OK but when the risky decision has no grounds and is based on emotions, it will do no good for a trader.
Forex psychology teaches to fight fear. So many forex traders fear to stay in the market for a long time. They fear to lose. They quit the market too early. You need to be confident. If according to your strategy you must stay in the market you should stay.
Forex is a challenging but at the same time interesting job.
Feel like getting some automated forex trading? Stop, before you do that you must read the reviews of the forex software you want to buy.
For more info about online forex guide- read this review.
The Most Important Foreign Exchange Issues To Keep In MInd
December 2, 2009 by Forex Guide
Filed under Forex Guides
The world is changing rapidly. The business always follows these changes. With the development of the Internet business has changed dramatically. Internet offered new opportunities. Sure, people immediately realized that the Internet is a perfect money making machine. Internet gives access to a many millions audience. Internet is a new future of the world.
As said above the Internet has changed business. Forex is not an exception here. In early 1990 forex was a closed market. It means that only chosen players could participate in it. Forex was a place for banks and corporations, governments and international financial institutions. Forex is a place where people and organizations trade foreign currencies.
When the Internet came to every house in this country it became clear that the forex market will soon be available for everybody. Indeed, it happened so. Brokers started to offer people to trade online.
Online trading became very popular and convenient. Indeed, you do not have to leave your house. You do not have to go to the bank to open account, since you can use electronic money transfer services. If you have a computer connected to the Internet you can become a trader.
If in early 1990 you had to have really big money to start trading, now you can become a trader with $200 in your pocket. Brokers can now offer mini accounts.
But your future in forex does not seem very bright. You are to understand that trading in forex is not easy at all. No matter what advertising says, forex is a serious job. You will never earn money spending 1 hour a day in forex. Moreover, you will lose there since not winning in most cases means losing. Forex is not a hobby. This is a job to be taken seriously.
Many amateur traders use automated forex software. You do not trust forex magic machines? Well, this is your mistake. Forex magic machines are developed by very experienced traders. So, virtually, forex magic machine is a professional forex trader.
If you want to cut your losses at the beginning of your forex career, you can certainly use forex magic machine.
FMM always collects and analyzes information before it enters the market and start performing trades. Forex magic machine has a certain trading strategy and it always follows this strategy.
Forex magic machine enters the market only in case it is favorable to it. In general forex magic machine will help you avoid the most common and stupid mistakes amateur traders usually do.
FMM is easy to use. It is not expensive. Besides, it can trade 24/7. It needs no sleep and rest. It never gets angry since it has no emotions. Thus, FMM is to be 100% trusted.
You must be aware of forex investment is a risky investment, because forex trading in itself can bring both profits and losses.
Due to this we highly recommend to study more about the topic of forex investment, before you start spending any money on it.
