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Forex Articles

Forex Articles | Forex Education Center - In this section you will find latest articles submitted by contributors for education purpose.

The articles based on author's opinions and may not necessary based on the facts.

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3 tips for surviving in the markets

Financial markets are always interesting, never dull, but it could be said that the last few years have been more interesting than Forex Investorusual. The global financial crisis and the response from world central banks has led to financial events making the front pages of world news, when previously, this would not have been the case.

There is a good reason for this – the world of finance is more perilous than it has been in recent times. Stock markets can no longer be relied on to produce stable, solid returns and Forex markets are increasingly fought over by governments who all want to devalue their own currencies. As a result, there has never been a better time to learn how to survive in the markets.

Preserve capital

The key to surviving in any market, not just Forex, is the preservation of capital. Only once capital has been preserved can a trader even think about growing wealth. Because growing wealth without thinking about capital preservation means taking on unwanted levels of risk. [Read more...]

How to Trade Forex Like a Sniper

fx-sniper-hiTo succeed in the Forex markets, traders need to find the strategy that fits their personality. As well, they need to be nimble and aggressive, picking the trades that offer the most profit potential whilst making sure to minimize the risk of loss.

If you look at a number of the Forex systems on the market today, many of them have ‘war’ type names, such as ‘stealth’, ‘crosshair’ or ‘pip-hawk’. In the same way, some traders attempt to trade Forex like a ‘ninja’ or a ‘sniper’.

It’s interesting that such names have become associated with Forex trading. The reason must be to do with the fact that Forex trading is a battle. A seemingly endless daily battle between profit and loss that can cause havoc emotionally and sometimes physically. [Read more...]

Exotic Options for Diversified Investments

Investment experts concur that portfolio diversification is financially beneficial. The options market covers a wide array of Corn Commodity Price Risetrading formats that are used by millions of investors seeking to diversify. A large number of the accessible options are referred to as “exotic”.  These include binary options, quantity-adjusting options and Bermuda options, among others.

Binary Trading

Investors consider the options market to be simple, cost-efficient and quick.  With a few clicks on an online trading platform, the world of market investing is up and running.  Take a look at the trends; choose your asset; choose your timeframe be it minutes or hours; find your strike price; choose your investment amount; and place your put if the trend is downward, or your call if the trend is up.

The payout on each binary options trade is clearly defined.  If you have placed a call on Asset A, and at the expiry time Asset A is [Read more...]

Exchange Traded Binary Options in Perspective

Novices to the online trading arena have most certainly come across the term binary options. For some, it evokes negative Profit, loss and risk crosswordconnotations, and for others it is a jackpot waiting to be hit. Some investors are nonplussed by the concept, but everyone recognizes that binary options trading is real, and the profit potential is substantial. To gain a better understanding of precisely what binary options trading is all about, it’s imperative to separate fact from fiction. Equally important is the issue of regulated binary options brokers and a functional binary options trading platform.

Introducing Exchange Traded Binary Options

Many investors group all binary options together in the same basket of traded possibilities. However, there are unique elements to different types of binary options. For the most part, all binary options share one commonality: you’re either in the money or you’re out of the money. These all or nothing options are the common denominator with binary options, but the unique characteristics of individual binary options set them apart from one [Read more...]

Currency Pairs and Spread Betting in Forex

European stocks and the Euro are showing strength against the U.S. dollar as German business provided a much needed cushionhttp://www.dreamstime.com/stock-photo-currency-eggs-image8184950 for the Euro, which has risen from its funk. Originally down because of Chinese credit restrictions, the Euro jumped to $1.3769 and later traded flat at $1.3726.

The daily outlook for the Euro and Pound has extended to a higher level at 0.8286 from its rebound of 0.8157. The resistance level is on the upside at 0.8439. Retail sales were weak in the United Kingdom, prompting the currency pair’s strength. Chances for reversal are high, depending on the release of data, inflation and price pressure. The EUR/GBP currency pair is a cross between the two largest economies in Europe. The pair is sensitive to monetary policy between the European Central bank and Bank of England. [Read more...]

Forex Insights: spread vs. commission

Forex markets are quickly gaining popularity not only within experienced investors, but also within new and individual investors. Forex marketsMany of those enter the forex markets to diversify their portfolio, and also to take advantage of no commissions charged and low trading costs offed by forex brokers. Even though forex markets provide lower trading costs than other investment markets, it is important to analyse the details of those costs involved.

Investors who are involved in stock trading most of the times have a trading account with a broker, and they have funds deposited in their account. Once he identifies a stock investment opportunity, an investor will send a trading order to the broker and the broker will go ahead and execute that order on behalf of the client. For the service of reception and transmission of the order by the client, the broker will be compensated by charging a commission to the client. With stock trading, the commission charged by the broker can be a fixed dollar amount for each trade, or a dollar amount for each share traded, or it will be linked on the size of the trade. For any of these cases, the commission will be charged on both sides of the transaction. This means that the commission will be applied on the purchase of stocks and also on the subsequent sell of those stocks at a later stage. [Read more...]

Forex Scalping Strategy Explained in Detail

Forex is a highly volatile type of trading market. Get more information on how to trade here. You need to have a range of Forex Scalpingstrategies to succeed in such a cut-throat business.

There are many ways in which you can involve yourself in the market. One of the most popular ways is through scalping. Forex scalping is an increasingly popular way of entering the market by adopting a minimal amount of risk.

Read on if you want to find out more about how this part of Forex trading works.

What is Scalping?

The Forex scalper adopts a position of low risk and low reward. As we know, the amount of reward directly correlates with the amount of risk you take on. Scalpers will place a number of small bets instead of a few large bets.

This is only part of what characterises a scalper, though. Most scalpers will only remain in their chosen market for a few minutes [Read more...]

Diversifying Your Income With Binary Options Trading

Gold DollarOne of the latest trends that have indeed made a significant impact is recent times is opting for multiple sources of income. The reason behind the same is that it qualifies as one of the best alternatives so as to help you in tiding across situations pertaining to financial insecurity. Binary options trading can indeed be looked upon as the ideal option so as to be able to earn extra money.

Suitable For Novice Traders

Binary option can be viewed as a better alternative as compared to the other forms of trading alternatives that are available. The reason as to why; it is considered to be a better alternative is that you can either consider enjoying complete payoff or nothing at all. A novice trader will not face minimum difficulty in practicing the different types of trading activities at any particular point of time. One of the other reasons that binary options trading can help you in diversifying your income is that it can offer you with the advantage of being able to trade on a part-time basis, as well. [Read more...]

Forex Trading: Price and Time to Trade

One of the most challenging tasks when trading is price forecasting, this meaning not only calling for turning points (tops or bottoms), but also for the time the specific forecast is going to happen.

Trading without taking into account the time element is a deadly mistake and should be avoided by traders at all costs. Knowing a certain price will be touched but not having any idea about when such thing will happen, it should be viewed like a job half done.

There are several trading theories that tried to incorporate the time element into any ones trading decision, but none come so close to reality like the Elliott Waves Theory and the works of W.D.Gann.

In the case of Elliott, for specific patterns/waves price makes, time can/should be considered when trying to count waves. For example, if price is developing a wedge, falling or rising, and this one comes as an ending diagonal, then it is typical for price to reach the fifty percent retracement from the whole wedge in less than the time taken for the whole wedge to form. And there you go you have a target, namely the price value given by the retracement level, and the possible time for that target to be reached. [Read more...]

How price action strategies can clean up and simplify your trading

price-action-holy-grailUnderstanding how the market “communicates” (and learning how to “communicate” back with appropriate trades) is the key to becoming a great trader. Price action is the language of the market.

Think back to your high school French class when your teacher was trying to talk in all kinds of crazy words while you were daydreaming about the girl in the next row. When it came time for test day, you likely didn’t do so well. Imagine your homework is studying price action and test day is trading day. You have to learn price action language in order to score well on your trading exam.

When explained in bare-bones language, price action trading is the trading technique used to read plain candlestick charts and identify patterns in order to anticipate future price movement. It is the acquired skill of reading raw price movements on which you base your trading decisions. In price action trading, a trader analyses candlestick patterns as well as the market’s reaction of price when it interacts with support/resistance levels and trend lines. It’s basically the Holy Grail of Forex.

With price action knowledge, a trader can perform a better range of analysis with no need for messy indicators. As a trader, your primary job is to manage risk. This can be hard to achieve with some other trading systems if they aren’t based of logical conclusions, don’t you just hate it when you’re guesstimating where your stop loss should go. [Read more...]

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