Currency Trade Pro

Archive for the ‘Forex Tips’ Category

for those of you who are still beginners in the forex world and you ask questions, how do we do forex trading? The answer is easy. Even with just a few minutes of exercise would have been basically understood. But again we’ve ever written in the article the previous article. That playing the forex is easy, do a hard victory.

Basically playing the forex is to predict a currency pair to rise or fall in value. And the confidence of the predictions that we achieve in open position / trade. And in forex there are only two kinds of open positions. Namely
1. BUY / BUY / LONG: predicting value pair INCREASED
2. SELL / SELL / SHORT: predicting value pair DOWN

In order to be clearer, see the illustration below.

1. Handoko entrance in a position to BUY EUR / USD at 1.3000, after a certain time
Handoko SELL (CLOSE) at 1.3064 then Handoko gain profit 64 pips / point (the smallest unit in forex). Read the rest of this entry »

If you read the statement mentioning that Forex is easy then you should not believe it and you just have to throw it out from your mind. Statistical survey results stating that 90% beginner traders suffered loss. And only 10% that can use forex for a living (trading for living).

Easy is the way to play, but hard to win or gain profit. You must be brave sacrifice of time, even thought the money so that later you can really become expert. You must test your skills in a range of time, 1-2 yrs so really your trading method and the way a tested and proven.
Here are some tips that may help you in forex trading:

1. Demo Account: Demo account / virtual provides an opportunity for us to trade significantly, but using virtual money. So that you can use to test the ability and methods used for your router. And be sure to test it in a long time range 6 months to 1 year. New thereafter if you managed to boost your profits by becoming a live account.

2. Learning: Many methods of analysis method used in playing forex. Generally is a technical and fundamental analysis. Then the second study the science of it either through books, forums, seminars, e-books, or to the people who are more experienced in that field.

3. Personal style trading: After you read the articles (web / forums / etc) you will be confused by the many kinds of trading styles. This is reasonable because this style is highly subjective, masing2 different people. So grab a suitable one with your style (time, risk ratio, emotions) and the style test and evaluation. Until eventually you find a style of play forex your trading style and of course bring in profit.

4. Community: Try to form a community (friends) so you can quickly exchange information with the forex. This will speed up your learning.

5. Do not be a gamble: People gamble often rely on ‘feeling’ and ‘emotion’, if this is a feature or your style, you better not forex trading. You will lose and just burst spending money alone. You must know, you should not be emotional, you need discipline and you should be rational and can think clearly and self-control.

Use the graph or chart is the most important in technical analysis because the only object of technical analysis is that price movements can be seen from the charts. Some types of charts are often used in technical analysis is as follows:

1. Line Chart

2. Bar Chart

3. Candlestik Chart

For bar charts and candlestick:
Open: Opening price (initial)
Close: closing price (last)
High: Highest price
Low: The lowest price
Calculated within a certain timeframe / bar = 5menit, or 30 minutes, or one hour or one day.

To learn candlestick chart patterns and its mean, please see here.

There are two types of analysis commonly used by traders, namely:

1. Fundamental analysis: to rely on news / rumors in the market.

2. Technical analysis: by relying on charts and mathematical formulas.

Fundamental analysis:
Fundamental analysis is the analysis that relies on the news happening in the world market. Or that was circulated in the market. This news content can drive a market trader’s emotions to determine the value of a currency, equity or other instruments. One example is the Central Bank rate hike by the Fed (U.S. central bank) can mean a stronger dollar. Rising prices will hoist petroleum stocks related to commodities and other things. If you do not like the analysis of complex-complicated (count, graph, etc.), then it is now time for you to learn this fundamental analysis.

To learn fundamental analysis correctly then you should study economics, the financial macro, for example why rising interest rates can make the value of the currency to strengthen. Here will not be described in detail about the economic laws. But there is some news (economic indicators) that if you can use as a reference. Read the rest of this entry »

Technical analysis is the analysis of movement based on a mathematical calculation (formulas, graphs, charts, etc.). By combining the movement of an instrument with specific mathematical formulas. To present a picture or predictions of the future. Now that you have to be careful and watch was the words, images / predictions, so accuracy is not 100%. The amount of accuracy is at the level of art and distinct from each trader. The more you diligently honed formula, evaluating, combining, etc. will become more precise.

The goal of traders using technical analysis, among other things:

1. Volume of transactions
2. Trends
3. Levels of psychological (support and resistance)
4. Period of time that occurred.

This technical indicator created by many technical analysts, and if the collected amount can reach 250 more, with a variety of purposes. And with the level of complexity is different. But little input you do not need to use all (because it was impossible too), just use whichever you really understand it, a little better and simpler, but you master and know where the strengths and weaknesses.

Indicators apply the principle of mathematical and statistical sciences. So the question, well I must be dong statistical science? The answer is not necessary, the application program forex, most of them have been able to provide a direct indicator that you apply in the charts. For those of you who have advanced (forex & statistics) you can also create an indicator based on your tastes. Although this congenital indicator can already be directly applied and used on the graph, you still need to study the usefulness and function of the indicator. Read the rest of this entry »