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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Foreign Exchange Transacting Tutoring Used For Beginner
March 2, 2010 by Forex Guide
Filed under Forex Trading
For investors, learning forex trading presents an alternate investment selection to ancient stock market investing. Whereas there are thousands of stocks to pick out from, there are solely various major currencies to trade (the Greenback, Yen, British Pound, Swiss Franc, and thus the Euro are the most common).
Forex trading additionally delivers a lot additional leverage than stock trading, and the minimum investment might be a heap lower. Boost that the power to pick out versatile trading hours. Forex trading goes on twenty four hours daily, and you’ve got the rationale why thus many stock traders have flocked to Forex trading.
You should never get into Forex trading whereas not a wise Forex trading education, as there’s a possible for loss if you do not apprehend what you’re doing. With the correct trading education, you’ll be on your way to making a tidy profit.
The primary half of learning Forex trading is knowing the market background. The foreign exchange market is usually changing. With an accurate forex trading teaching, you may learn the way to observe these changes and notice helpful situations.
The subsequent half of your Forex training is to find out concerning risk management and risk management. You first ought to learn self control, thus as not to take a foothold a ton of than you’re willing to lose. You will also find out how to exit losing trades before your losses exceed your limits. This is truly a 0.5 of your Forex coaching and is totally crucial to serving to you learn the dear and basic lessons of Forex trading.
Another necessary half of learning Forex trading is to search out out a approach to open and control your Forex account. Once all, your forex schooling would possibly 1st begin when you’ve got opened and started to follow on a demo account. This approach you learn the ropes by practicing Forex trades with purely “play money.” There is no risk involved, but it is just as realistic as actual trading. This lesson ought to provide you’ll be able to finish purpose to let you recognize when you are prepared for trading real money.
There are many ways that that to induce a Forex trading education. The foremost effective place to urge this trading education is online. Several websites can enable you open free demo accounts to look at your Forex trading. One amongst the best things to attempt and do is to induce some recommendation from someone who might be a current Forex trader. They will give you several all the method all the way down to earth insight on the topic of learning trading forex.
Find out important recommendations about the topic of managed forex accounts – study the web site. The times have come when proper information is really only one click of your mouse, use this opportunity.
Stop Loss Mistakes In Forex Trading And Dirt Cheap Forex Training For New Traders
February 1, 2010 by Forex Guide
Filed under Forex for Beginners
Learn Forex Nitty Gritty from Bill Poulos. Discover the top 10 Forex Robot World Cup Ranked Robots. The #1 ranked robot is already 156.96% up in profit in just 11 days. Learn Fibonacci Retracement. Rahul: One mistake that is made by forex traders is not to have a stop loss on trades. Such trades are wide open and a big risk for the trading account. But the even biggest mistake is to have stop loss which are completely unrealistic! I mean, imagine you open a trade anticipating the currency pair to go up. You place a stop loss which is very close to the entry price. How would it feel when you see currency pair just hit your stop loss and then go in the direction you predicted? Its frustrating..isn’t it?
Moreover it just starts breaking the confidence! You start doubting the system and your analysis is deeply impacted. If you are using stop loss (which I highly recommend), then the values have to be realistic! The value of stop loss should be driven by –
1. The time frame you are trading
2. Ofcourse, Your risk taking appetite.
For example, if you are trading on 1 hr chart, any stop loss that is less than 45 pips is highly risky. Basically a tight stop loss doesn’t allow currency pair to move around. On the other hand if it is more than 65 pips, then you need to make sure that your average
profit is more than 100 pips to keep trading profitable. So whenever you are trading make sure that you have stop loss in place and the stop loss should be effective and realistic at the same time!
“dirt cheap” Forex training for “newbies”?
Are you a “newbie” when it comes to Forex? Are you a little overwhelmed by all the information out there that promises to put piles of cash in your wallet overnight? Do you have a sneaking suspicion that some Forex brokers are lying through their teeth & simply out to “screw” you so they can add another Mercedes or BMW to their fancy car collection? Do you feel unable to make any progress toward your dream of quitting your job because no matter how bad you want it, you just can’t afford to pay for $2,000 or more Forex training?
STOP!
I know exactly how you feel, and that’s why I’m glad I found this frank, straightforward, and “no B.S.” video presentation –
–> It leads you to a TON of “dirt cheap” Forex training that will give you the upper hand when dealing with brokers… & a big edge over all the other frustrated & clueless “newbies” out there. So, sit back, relax, & see if you relate to this “Forex tale”! (Make sure you watch the whole thing, because I think you’ll be “floored” by what’s revealed at the end.)
Things You Need To Know About Hedgers
November 21, 2009 by Forex Guide
Filed under Learning Forex
Monthly futures and forex trading in the world is measured in trillions of dollars. The activity far surpasses the stock and bond markets combined. The key players are the hedgers and the speculators. It’s the fight of the century, with the clear winner being the hedgers.
A hedger is defined as someone who simultaneously holds a cash and futures position. Hedgers typically use futures as an insurance policy to protect themselves against adverse reactions in price. Their goal is to simply be profitable in the cash market with as little exposure to price changes. Many stock investors are familiar with hedge funds, but the reality is that hedge funds don’t hedge.
When it comes to investing, stocks have won the propaganda war. They have successfully been labeled securities, even though the level of risk associated with them is not much better than any other investment. The same can be said about hedge funds. The concept of hedging is meant to imply that you are making an investment that counterbalances, if not completely sidesteps, the level of risk to which your main portfolio is exposed. The majority of hedge funds do not do that. Some will dabble hi commodities, but few make a complete commitment to the concept as possible.
Hedgers come in all shapes and sizes. These actual buyers and sellers who use futures as an insurance vehicle include major corporations such as Nintendo, Sony, Deutsche Bank Securities Inc., Barclays Capital Inc., and Goldman Sachs Inc., along with many of the Fortune 500 companies. In fact, the same banks and dealers that carry cash positions In the interbank markets will also use futures contracts to protect themselves from overexposure to trades and news. There is no true separation between futures and spot fore* trading for the hedgers.
There are currently 11 futures and currency exchanges in the United States. They have a total of over 370 active futures contracts. Unlike stocks, futures do not have a minimum number to purchase. Each commodity has its own special “margin” requirements as well as movement frequency and values movement, with each futures contract operating on its own independent lime cycle.
But nowadays individual retail traders constitute the bulk of the forex. It became possible to start trading having just $200 in your pocket. Thus, thousands of amateur traders invaded forex. Most of such amateur traders lose in forex. If you do not want to be like those 90% of losing traders you can use forex magic machine.
This kind of forex software can analyze information that influences forex market. Thus, a forex magic machine is capable of making correct forecasts. Forex magic machines are developed by top forex traders who shared their knowledge and experience.
As you see, forex magic machine can be 100% trusted. You must be aware of forex investment is a risky investment, because forex trading can bring both profits and losses. That is why we highly recommend to study more about the industry of forex investment, before you start investing any money on it. Today we are living in the world where information makes life easier.
That is why if you are properly armed with the info in your sphere of interest you can be sure that you will always find the way out from any bad situation. So, please make sure to track this blog on a regular basis or – an ideal solution for you – sign up to its RSS. Thus you will have a direct shortcut to the latest informational updates here. Blogging can be helpful, you just need to understand how to use them.
Tips On How To Make Your Losses Smaller
November 21, 2009 by Forex Guide
Filed under Forex Tips
At any market the main target is to gain more profit. Forex market is no better than let’s say stock market. However, at Forex market even if you do not double the investments you may still profit. You can make more money even if you have some losses, in the long run you will still make enough profit.
To make your losses smaller you need to follow some steps. First, you need to understand how your trade can lose. For this you need to determine the level of the market at which the scenario will go wrong for you. The strategy should be as follows: you swing low when you buy currency, and swing high when you sell it. In addition, using Forex software you may increase your win rate by 20%. The higher your win rate the smaller stops (about 10 pip stops) you will have.
The next thing to do is to determine the maximum risk for your every trade. The base point should start at about 2-3%. Having such trade risk you will protect yourself from the bad scenario, e.g. having several consecutive losses.
In addition, review your strategies that you use for Forex trading. Some of them may work better than others. Follow the statistics, which will tell you what strategy works better in what situation. Even though it happens that an advance trader allows oneself to have a greater risk while trading to win actually more, this strategy works in a relatively small number of cases.
Depending on your winning system, you may also want to review your trading size. Sometimes it is worth increasing your trading size for increasing your earnings.
According to regular statistics only 10% of traders make good wins on a constant basis. Knowing this, you should not get upset about not making that much money. It is said that 5-10 pip wins are already quite lucky. Yet, the more pip wins you make the better. So what you need is making your winning percentage greater. At the same time you have to take steps to minimize your losses. It is also important to trace when the market will change in your direction. Even if the winning percentage will go down, the losses might go down as well. Traders who win 35% or more win in the long run because the losses get also reduced, and the profit and loss levels will at least stay the same.
And finally, you should not invest in a trade until you are sure you will make 50% and more win. Imagine your trade has 3 resistance points that are only 6 pips more than a price. You should not take it. Avoid such situations by all means.
There are 2 options you can earn on Forex market. You can study the basics of currency exchange trading with the help of a good forex book and do the forex trading personally or you can hire experienced traders to manage your account and they will trade for you. Read more about forex investment.
