Introduction to Forex Trading
The foreign exchange (FOREX) market is the purchase or sale of a currency against sale or purchase of another. The object in Forex is to exchange one currency for another in the expectation that the price will change so that the currency you bought will increase in value compared to the one you sold. Through Forex education and training it is possible to speculate the direction of the market and receive a good return on your investment.
The major participants in the FOREX include commercial and investment banks and central banks. Other participants include corporations, hedge funds, and millions of speculation traders like you. Some of the top banks in the world such as Bank of American, Credit Suisse, and Morgan Stanley are major players when it comes to the FOREX. In order to make money within this realm, you will be competing against all of the major banks as well as individual traders.
When beginning in the FOREX, it’s important to select a reputable broker. After all, the broker is going to be the one paying you when it’s time to cash out. A broker acts as a middle man between you and the FOREX. When you place a trade in the FOREX, your position is filled by the broker and the broker sends the order off to the banks. When it’s time to be paid, your money is with the broker and they need to be able to cover your positions in the market. Most brokers offer a 3 to 5 pip spread on all the major currencies pairs, such as the ERU/USD, GBP/USD and the USD/JPY. A 3 to 5 pip spread basically means that the FOREX must move 3 to 5 pips before your trade is in profit. One pip can be worth any amount, depending on how much money you’re willing to risk per trade. There are two types of traders, fundamentalist and technical traders.
Fundamentalist study the cause of market movement, whereas technicians study the effect. Most traders identify themselves as both a technician and fundamentalist. Most fundamentalist will have knowledge of charts, indicators and chart analysis. Similarly most technicians are aware of the fundamentals. However, the problem is that the charts and fundamentals are often in conflict one another. It’s usually a wise decision to have a bit of training in both fundamentals and technical analysis. One of the most important factors in the FOREX is learning to manage your money.
Traders will experience losses in the FOREX; therefore it is essential that a trader utilizes proper money management. In many cases money management is a simple concept, yet to practice money management consistently is very challenging. Generally speaking money management is knowing when to cut your losses. For each trade, a trader should be looking to make three times the amount they plan to lose. This way a trader only has to be right 33% of the time in order to be in profit
Taken from forex forums.
1. System name : Daily swing
Time Frame : 15 and 30 minute
Indicator : EMA 5
EMA 10
RSI 14
Stochastic 10,3,3
Buy signal if : EMA 5 Cross over and above EMA 10
RSI must above 50
Stochastic Turned up
Sell signal if : EMA 10 Cross over and above EMA 5
RSI must <50> 50
MACD Crossed and must >0
2. System name : MACD strategy
Time frame : 5 minut dan 15 minut
Indicator : WMA 5
WMA 13
Slow stochastic 8,3,3
RSI 13
MACD 3,34,7
Buy signal if : WMA 5 cross over and above WMA 13
stochastic turned up
RSI > 50
MACD Crossed and must >0
Sell signal if : WMA 13 cross over and above WMA 5
Stochastic turned down
RSI <50>
MACD Crossed and histogram <0
3. Candlestick strategy
did you know just the chart can tell you when to buy and sell with simple click. when I Look thr chandlestick chart I look if the chart is uptrend and the trend will be offer. the chandlestick will show you the pattern. just with 3 chandles you can sell or buy before your indicator tell. if you want to use the strategy, you must understand and save in your memory some of pattern. download the chandlestick e-book in the e-book download zone. enjoy....... All of trading strategy will make profit if you are dicipline to use the strategy, Remember that decipline is a key to be a succses.
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