Archive for the ‘Forex Basics’ Category
admin on March 29th, 2010
The standard pip value for the USD-based account and the USD-based currency pairs (EUR/USD, GBP/USD, AUD/USD, etc.) is $10 for the standard lot. But many beginning Forex traders soon stumble upon the non-USD currency pairs (USD/JPY, USD/CHF or more difficult – EUR/JPY, EUR/CHF) or the non-dollar based accounts. In all those cases, the value of a single pip for your positions isn’t obvious. Here’s simple formula to calculate the pip value in all possible [...]
admin on November 26th, 2009
Technical analysis teaches us how to read the language of the markets as we trade Forex online. After we learn how to read it, we may begin to speak it as well, interacting with fellow traders in the vast Forex universe, and profiting from our knowledge. Technical analysis’ tools of translation are the indicators, and price formations that are drawn on price charts. While many of these tools have their critics [...]
admin on November 9th, 2009
Learning to trade Forex is somewhat easier if you have experience in equities, futures or options markets, but when you are a complete newbie, you’ll need to start from the basics. When learning from start, there are little as useful methods as reading the books. Forex and general trading books are so popular and numerous nowadays that it takes a lot of effort to find those pieces that will [...]
admin on October 9th, 2009
Forex demo account is one of the best learning, practicing, educational, informational and even entertaining tools that every Forex newbie can use for his advantage. Sometimes, beginning currency traders underestimate the usefulness (and I would say, the necessity) of the demo account trading. Demo account can be opened with almost any Forex broker and in 99.9% of cases it’s completely free. On the demo account one can trade Forex with [...]
admin on September 26th, 2009
At some point of their learning curve newbie traders eventually face some of the problems that are intrinsic to the Forex trading industry. So, what are these problems, how to deal with them or even avoid them? Old Strategies Stop Working. You should be ready to update, tweak and tune your Forex trading strategy if you want to keep it profitable. Market conditions evolve and the old strategies [...]
admin on July 27th, 2009
Almost all Forex analysts, mentors and common traders speak in the terms of the Japanese candlestick charts. When they present the example chart, it’s usually comprised of the small candles with weird lines and colors. A person that is not acquainted with the Japanese candlestick bars can be easily confused with such charts. That’s why it’s important to understand this most popular chart data representation. You’ve probably already seen something like this: On the image you can see a Japanese candlestick chart [...]
admin on April 7th, 2009
Trading currencies involves more than technical knowledge and up to date information regarding market news and events. Each trade has its own numeric particularities, which will determine your profit/loss depending on several factors, such as: lot size, pip value, spread and leverage. This article will explain in 3 examples how you can manage your buy/sell orders in order to successfully achieve the expected results for each one of them.
admin on August 27th, 2008
Leonardo Fibonacci (1170-1250) was an Italian mathematician, considered by many to be the most talended of the Middle Ages. He popularized a number series, which would later be named after him, as a model of the rabbit population growth generation by generation, but it will later be discovered that these number can be applied to a variety of other situations, including forex trading.
admin on August 26th, 2008
Drawdown and risk/reward ratio are two parameters to always keep in mind when trading forex, as they indicate your risk factor for your open trades in a very precise and clear way.
admin on August 21st, 2008
In forex like in many other areas of the investing world, there are mainly three ways of indicating market movements and prices: line, bar and candlestick graphs are the tools that make it easy for you to understand the behaviour of any given pair during a certain timeframe.
admin on August 18th, 2008
If you are new to the world of forex investing, chances are you were first introduced to this world by one of the many flashy banners you see around promoting brokers that say you can open a mini account with them with just $100, sometimes even less. However, despite what you may have been brought to believe, investing such low sums of money is generally a bad idea.
admin on August 14th, 2008
In forex like in other forms of investment, deciding beforehand exactly how much you’re going to risk in a trade and when you’ll be getting out is something of the utmost importance. In forex more than in other markets, though, novice traders tend to avoid this fundamental step completely.
admin on August 13th, 2008
Due to the extremely high volume traded on a daily basis — some say around 1.5 trillion, but we’ll never know with precision — and the number of online (and offline) brokers residing and operating all around the world, it would be inherently difficult for a central organization to impose a definite regulation that is valid and accepted by all the major players.
admin on August 8th, 2008
If you like browsing forums and sites, you might have heard several times of the terms “fundamental analysis” and “technical analysis”, two metodologies of analyzing the market in order to decide when to enter or exit a trade. But what are they all about?
admin on August 8th, 2008
If you are considering starting to invest your money in the currency trading market, you might be wondering what all the recent fuss is about: everywhere you go, you see ads of online forex brokers saying how you can start investing with them even with a very small capital, as low as $100, and have a potential for huge profits.
