How to buy/sell in Forex???

How to buy/sell in Forex?
How to set stop loss and set take profit when buying selling in Forex?

From the technical point of view, it depends on the trading platform you use.
Every Forex broker will gladly give you the Forex trading Platform manual or will be able to guide you through the steps of setting buy/sell orders, profit targets and exits per you request.

As an example, let's review the basic order setting steps at the one the most popular trading platforms - METATRADER4.

On the price chart - mouse Right Click. Go to 'Trading', 'New order'.
You will have a new window with order specifications.
Symbol - the currency you'll be trading
Volume - how many lots you'll be buying
Stop loss - you need to put the price you want to be stopped at in case a trade goes against you.
Take profit - your profit goal.
Comment - leave it blank.
Type - leave it as Instant execution.
Then you have two buttons: Buy and Sell.
Press one of them. Ok. You have a new trade open.

You will be able to see it on your chart and also you can check menu 'Trade', located below your chart. If you now try to Right click on this trade, you will have an option to 'Modify or Delete order', where you'll be able to change your trading preferences.

http://www.youtube.com/watch?v=TmeQqJd3PYw&feature=player_embedded

How much can one earn in Forex?? What does it depend on???

Does capital invested determine the profit one make or depends on the no of lots executed??

The capital invested plays one of the key roles in the size of profits a trader can look to make in Forex.

One cannot come with $200 in a hope to make $20 000 quick and easy.
The major obstacle for this would be the inability to cover the cost of the trading, in other words, a trader won't be able to trade large lot sizes, because he/she will quickly run out of available margin.
Running out of the available margin results in a margin call.

When trading Forex, the very first thing a trader wants to do is to protect his/her investment capital. It can only be possible when risks on each trade are managed and do not exceed the reasonable percentage of account put at risk. Reasonable risk vary from 2% to 4-5% of the account size.

To expect large profits a trader should trade standard lot sizes of 100 000 units. Trading such lots requires good starting capital of at least $20 000, because when each pip costs on average $10 you don't want to risk losing $200 in just a small 20 pip move. You can't put tight stops here to protect yourself, because stops of 20 pips will be hit way too often. But you also don't want a stop of 100 pips being hit causing a $1000 loss. Therefore only investors with large size accounts can trade large lots and earn large profits.

What is left for small size account holders in Forex? They are offered an option to trade mini lots, which is the only good choice according to any conservative or aggressive money management rules.
Smaller lot sizes offer smaller profits, but they also bring smaller losses. The primary rule for every trader is how to survive losses, before he/she begin a hunt for profits.

Conclusion: invested capital determines profits one can earn in Forex.
The lot size traded should be chosen in accordance to account size.
Taking huge risks by trading large lots with small account size leads to a quick loss of the entire investment sooner or later.

What is drawdown???

What is drawdown?

A DRAWDOWN is a percentage of an account which could be lost in the case when there is a streak of losing trades. It is a measure of the largest loss that a trader's account can expect to have at any given moment or period of time.

(Streak of losing trades or a LOSING STREAK - a period of consecutive losses with no profitable trades.)

You'll see the term "drawdown" being used when describing a trading system. Before trusting any particular system, a trader wants to know what is the largest loss he can face when he starts taking losses due to changes on the market that would lead to a temporary worsening of a performance of a trading system.

For example, if a trader put $5000 to trade with and later he has lost $2500. This would be 50% drawdown.

Another example: you may hear that a trading system is 80% profitable, (which would logically mean that the remaining 20% of the time will produce losses). What a trader cannot predict is in what sequence the profits and losses will come... Will it be 8 consecutive profitable and 2 losing trades every time? Will it be 10 consecutive losing trades and then 3 profitable, and then 5 losing and then 15 profitable? It is impossible to tell in advance. However, by testing a system, a trader can look back ad find the largest period of losing trades - the largest losing streak - this is what would be called a MAXIMUM DRAWDOWN for a particular system, and this is what a trader should be prepared to.

What is a pip??? With Example!!!

Pip in Forex is the smallest price change in currency exchange rate.
Fore example, a current rate for EUR/USD = 1.4000.

If we add 1 pip to the rate, it'll look next way:
EUR/USD = 1.4001
The last decimal place in the rate is the smallest change of the value of the EUR/USD pair.

When currency pair rate increases, for example, by 5 pips, it means the value of that pair (EUR/USD in our example) will look next way:
EUR/USD = 1.4000 + 0.0005 = 1.4005

On the sreenshot we can see a chart of US dollar versus Canadian dollar (USD/CAD).
The very last price bar shows that the exchange rate raised from 1.1865 to 1.1866.
In other words, USD/CAD pair has moved up by 1 pip.

What is lot size and what's the risk???

Currencies in Forex are traded in Lots.
A standard lot size is 100 000 units.
Units refer to the base currency being traded. For example, with USD/CHF the base currency is US dollar, therefore if to trade 1 standard lot of USD/CHF it would be worth $100 000.
Another example: GBP/USD, here the base currency is British Pound(GBP), a standard lot for GBP/USD pair will be worth £100 000.

There are three types of lots (by size):

Standard lots = 100 000 units
Mini lots = 10 000 units
and micro lots = 1000 units.

Mini and micro lots are offered to traders who open mini accounts (on average from $200 to $1000). Standard lot sizes can be traded with larger accounts only (the requirements for a size of standard account vary from broker to broker).

The smaller the lots size traded, the lower will be profits, but also the lower will be losses.

When traders talk about losses, they also use term "risks". Because trading in Forex is as much about losing money as about making money.
Risks in Forex refer to the possibility of losing entire investment while trading. Trading Forex is known as one of the riskiest capital investments.

Returning back to lots:

With every Standard lot traded (100 000 units) a trader risks to lose (or looks to win) $10 per pip. Where Pip is the smallest price increment in the last digit in the rate (e.g. the smallest price change/move).

With every Mini lot traded (10 000 units) a trader risks to lose (or looks to win) $1 per pip.

With each micro lot (1000 units) - $0.10 per pip.

In Forex traders always search for the most efficient ways to limit risks or at least lessen risk effects. For this purpose various risk management and money management strategies are created.

It is impossible to avoid risks in Forex trading. In order to limit risks traders use methods of setting protective stops, trailing stops; use hedging techniques, study scalping strategies, look for the best deals on spreads among brokers etc.

Traders with the best risk management strategy earn the largest profits in Forex.

Would you like to add your own comment or ask another question?
Discussions speed up learning. Let's talk.

Why trade multiple time frames in Forex???

Why simply not trade Forex using one favorite time frame?
Why do we need screening several time frames?

Many beginners start trading Forex looking at one chosen time frame. They bring along or develop an approach and start testing their knowledge and skills.

Sooner or later traders discover that despite all efforts results seems to be random: at one time their trading system would work well, while the other time, seems like under the same conditions, it would fail…
What’s going on?

One of the potential answers may lie in the narrowness of the research done by looking at one time frame and never knowing what is going on at the more superior level.

The higher the time frame the more importance it carries.
E.g. 5 minute time frame (TF) is more important than 1 minute frame.
1 hour TF is more important than 5 min.
Daily TF is more important than 1 hour.
Weekly TF is more important than daily etc etc.

The key to successful Forex charts analysis lies in the habit to screen time frames higher than the one you normally trade with.
Two superior time frames is just the right number. Screening more than that could overload traders with information, less than that might be not enough, but still better than nothing.

Let’s avoid philosophy again and go straight to common time frame pairs.

Fist is the one you trade, second and third are suggested time frames to check market major trends, important price levels and forming patterns on:

1 min => 5 min => 30 min
5 min => 1 hour => 4 hour
1 hour => 4 hour => daily
4 hour => daily => weekly

The main approach here is to start with a superior time frame, conduct the analysis, identify the main trend and market turning points. Then go 1 step lower, continue the analysis while referring now to the major frame. Then descend to original chosen time frame and identify trading opportunities that fit the analysis done on the global scale.

Seeing things from larger prospective help traders increase the rate of winning trades in Forex.

What time frame to trade in Forex???

What is the best time frame in Forex? What is the most profitable time frame in Forex?
Those and similar questions are rising day after day in minds of novice Forex traders.

Let’s drop out the philosophy and focus on facts.

We know that each time frame displays same data, but in different intervals.
The choice of time frames is wide.

Let’s take the most preferred Forex time frames: 1 day, 1 hour and 5 minute.
These time frames are also perfect for beginners to test their feel about the Forex market.

On daily charts each price bar represents one day, thus a change on the chart will be observed once a day.
On hourly time frame new price bars will appear every hour, putting more data on the chart for analysis.
5 minute chart will produce a new price bar every 5 minutes, showing market changes fast and in greater details.

Each time frame can be traded successfully and yield opportunities for profitable trading.
What time frame to trade? It will depend on your next expectations:

A. Timing
B. Profit goals
C. Money management and tolerance for losses

Timing
Are you willing to monitor charts every 5 minutes for several hours a day?
Are you comfortable taking decisions fast and like quickly changing prices?
If yes, try trading 5 minutes charts.

Or may be you prefer a slower pace at 1 bar per hour. You also believe that hourly charts are more reliable in the way they depict the market since much of the noise produced on smaller time frames can be eliminated.
Then 1 hour time frame might be your winner.

Or it might be the case that you don’t have time watching the charts during the day because you have a full time job and/or you believe that intraday changes do not have much effect on the market and summary results can be best observed by the end of the day. You may also find out that you want to hold your trading positions open overnight, means that your money will work even when you sleep; and at the same time you want to be confident that your Forex analysis wasn’t based on short term momentum.`
Then daily charts would be just right for you.

Profit goals
The smaller the time frame the smaller the profit goals set by traders for each trade. E.g. while on 5 minute charts Forex traders would see reasonable targets at the next support/resistance level 15-30 pips away from the entry point, on the daily time frame profit goals will be extended several days into the future with expectations of banking 200-400 or more pips in one trade.
A trader can make same 200-400 pips trading 5 min time frame, but it would require a lot of trades to be taken, hours of price monitoring, which is not an easy task.

Money management and tolerance for losses
Forex trading is not always about wins, losses are part of the trading process.
Managing losses on 5 min time frame would be the easiest thing to do. Firstly, because a trader is able to monitor charts all the time, secondly, because losses are usually small due to the nature of 5 minute trading: price ranges are smaller and it is easy to tell when the market starts turning against your position.

Hourly charts have wider price ranges and therefore require wider stops to be placed, and in case of being wrong on a trade, larger losses to be taken.

If to speak about daily charts, losses there if occur are even larger as the market requires wider space to swing the price.

So here you have: smaller profit targets and smaller losses or larger profit targets and larger risks. Making profits with more price action and more trading opportunities, but also a lot of time spent in front of the monitor every day, or making profits with less price action and opportunities and less time spend trading Forex.

What currency pairs to trade in Forex???

Although there is lots of currency pairs offered to Forex traders, if you are a beginner it is easier to start with major currency pairs:

EUR/USD
GBP/USD
USD/JPY

There are several good reasons for that:

1. These currency crosses are widely traded, thus providing liquidity which is needed in order to benefit from price changes.
2. They have tight spreads, except may be for GBP/USD, which most of the time receives higher spread quotation from Forex brokers as it is more volatile (e.g. has wider price ranges than other pairs).
3. They all are traded against US dollar, which automatically suggest that the most active trading hours would be during New York trading session – the session with the highest volume of trades.
4. And finally, there are many Forex trading systems that are developed for trading those pairs and can be found online.

What currency pairs to avoid?

Exotic and uncommon currency pairs should be avoided by novice Forex traders as some further knowledge is needed to trade such pairs successfully.

Here is the list of major currencies beginner traders should focus on:

Euro (EUR)
US Dollar (USD)
British Pound (GBP)
Swiss Franc (CHF)
Japanese Yen (JPY)
Australian Dollar (AUD)
Canadian Dollar (CAD)

Also novice Forex traders should try to avoid currency pairs which have high spreads. Spreads vary from broker to broker. The information about spreads can be found at brokers’ websites, or at the special column called “Spread” on the trading platform itself, or from the Ask/Bid table (found also on the trading platform) by subtracting Bid price from the Ask.

Here is an example:

On the screenshot we have USD/CHF spread = 3 (Ask – Bid = 0.9992-0.9989 = 3)
GBP/USD spread = 3
EUR/USD spread = 2
USD/JPY spread = 2


Currencies that have high spreads are more volatile, e.g. have wide price ranges and longer price spikes, which unprepared traders may find difficult to trade.

Also a common mistake done by many beginner traders is that they try to monitor too many currency pairs at once. Not only it makes trading hectic and more difficult to manage, it also prevents deeper analysis of the currency pairs and actually learning their “behavior” over the time.
Currency pairs do have their unique ways to move, react to economical events, form trends etc.
By studying one currency pair at the time, Forex traders have the ability to observe its behavior and learn the ways to trade the pair even more effectively.

3 easiest pairs are: EUR/USD, USD/JPY and GBP/USD.

EUR/USD - most popular pair with the lowest spread. This pair is an ideal choice for beginners, since it responds quite well to basic technical studies and rules, which traders learn in the beginning. EUR/USD is not too volatile under normal market conditions and, thus, can be traded safely with lesser risks and closer stops.
From the fundamental point of view EUR/USD gets lots of global economic coverage, it is an easy to follow and monitor pair.

USD/JPY is another good currency pair. It often has the same low spread as EUR/USD, which makes it attractive to investors. USD/JPY pair features much smoother trends, comparing to other pairs; this makes trading USD/JPY during trends a real joy, not to mention the fact of earning profits alongside.

The behavior (trend) of USD/JPY pair can also easily be compared/verified with other /JPY pairs, for example, EUR/JPY, CAD/JPY or GBP/JPY.

GBP/USD - this currency pair likes large moves, it is able to bring more pips in one simple move than EUR/USD or USD/JPY. It is a pair often used for breakout trading. However, the risks here rise proportional to profit opportunities. GBP/USD requires further away placed stops. It belongs to volatile pairs group.
There is also plenty of market research and analysis available for GBP/USD, which makes it favorable among traders.

Every trading system would behave differently with different currency pairs. Stops, Profit levels, risks - everything should be calculated and tailored individually for each pair if you are looking to get the best performance out of each trade.

What is FOREX????

Abbr. "FOREX" stands for Foreign Exchange, an exchange of currencies. When a person comes to trade currencies, e.g. buy one currency and sell another one - it is called currency exchange trading, or simply known as Forex.

Because the value of each currency always on the move, it fluctuates depending on the local and global economic factors, there is always an opportunity to profit on those changes/fluctuations - it is called currency speculation.

Euro, US dollar, Swiss Frank, British Pound and Japanese Yen - these are the most traded currencies in Forex. Of course, trading is not limited to those currencies, Forex offers variety of currencies one can trade.

If to describe in simple words how individuals trade Forex it would look next way:

Forex trading in its prevailing volume is done online.
A person finds a Forex broker, opens a trading account with the broker and deposits money.
Forex broker provides to trader so called Forex trading platform - an application, a working environment, where trader buys and sells currencies, dealing online - in other words he speculates to make money on the difference of currency rates.

In Forex currencies are traded in pairs.
EUR/USD, GBP/USD, AUD/JPY, USD/CHF and so on.

The first currency in the exchange pair is referred to as the base currency and the second as the quote currency.
For example, EUR/USD exchange rate = 1.400
Here the price of the Euro is expressed in US dollars: 1 euro = 1.400 dollars
The exchange rate tells to trader how much of the quote currency should be paid to obtain one unit of the base currency.

A Quick Overview of FOREX

FOREX is a spot market, where foreign currencies are traded - bought and sold for profit.

FOREX is a worldwide currency speculation arena with no centralized place for trading and exchange.

FOREX is a huge market with trillions dollars turnover a day and the largest investors - banks, hedge funds, investment companies and so on.

FOREX is open to individual retail investors - Forex traders - through the services of Forex brokerage companies that provide an access to the currency exchange market and take care of buying and selling orders of their clients.

FOREX is a 24 hour market that is traded every day all year round, except for holidays.

FOREX allows trading over 150 foreign currency pairs, among which the most traded are: EURUSD, GBPUSD, USDJPY, AUDUSD, USDCHF, USDCAD and GBPJPY.

FOREX trading is based on technical (price charts) and fundamental (news, economic events) analysis.

FOREX is an online stay-at-home type of business for individual investors.

FOREX is an attractive financial instrument, which can be mastered by any person with any kind of education and/or social status.

FOREX is a type of market which nowadays can also be traded by automated online expert advisors without any human intervention.

FOREX is an alternative type of investment, which unlike any other investment carries one of the largest financial risks.

FOREX is a trading arena, where in order to succeed a trader needs to learn the rules of the market, its trends, moves and behavior, and be able to apply the knowledge under real trading conditions.

FOREX is difficult to trade without a trading method - a trading strategy or system.

FOREX is a fast growing industry, and by directly dealing with money it also became
a lucrative business to various scam dealers. Novice traders should be alert about any offers in Forex which sound too good to be true.

Finally, FOREX should never be associated with quick and easy money.

Forex for Dummies - 1

Hello Everyone


Its good to see so many people getting interested in trading Forex . I've been into forex for the past 8 months. I see a lot of newbies trying to find Help. Well I�ve been there n ill tell u wot i did so it might help u guys. Ill be postin helpful info in this thread so keep ur eyes open. I spent 6 months Reading and learning everything I can from the internet without paying a Dime because I am a student at University lol. I finally opened a demo account 2 months ago and started practicing and testing out over 50 strategies. Trying to copy another persons strategy is not very rewarding because everyones style of trading n strategies are different. So u need to develop your own style and strategy from all the strategies and indicators u learn to use.


Let me try n walk through wot u need to know

1. FOREX has a HUGE amount of information to learn so u will never stop learning even if u trade for 50 years. So learn to accept this and remember the following:

!!!LEARN WOT U NEED TO MAKE MONEY AND LEAVE WOT U DONT NEED TO KNOW!!!

This is wot i did:

1. EDUCATE YOURSELF

Read and understand all the basic stuff on forex ie all the free materials from the internet and how some indicators work e.g. MACD, Bollinger Bands, Stochastic, RSI, Pivot Points etc. A really good and simple place to learn them free is: http://www.fxstreet.com/education/fxstrategy.asp

2. JOIN THE FORUMS AND MAKE A NETWRK OF TRADER FRIENDS
I cant stress the importance of joining Moneytec http://www.moneytec.com/index.php and elite trader http://www.elitetrader.com/. It will help u immensely and learn things in an hour which might normally take a week to learn. It has loads of strategies n advice from other traders. It is also a great place to make a network of trader friends to help u on the way .

3. PRACTICE ON A FREE DEMO ACCOUNT - U know wot they say PRACTICE MAKES PERFECT. I recommend u practice all the strategies n indicators on all the 6 major currency pairs. JUMP INTO THE DEEP END n practicing on a demo account its the best way to learn forex. Always keep your eyes open and observe carefully how all the indicators work. Also flip back n forth on the time charts 1min, 5min, 15min 30 mins 1 hr, 4hrs etc n look at the trends. The BEST trading platform that i found to trade on is Metatrader 3.0 or 4.0 http://www.metaquotes.net/metatrader because it has tons of indicators, its pretty easy to learn compared to others, u can automate strategies n its free.
Oanda http://www.oanda.com/ is another very good one, its probably the easiest one to use but it doesnt have many indicators to use.

4. CONTROL YOUR EMOTIONS, GREED AND DICIPLINE YOURSELF TO A CERTAIN STRATEGY TO WIN THE GAME OF FOREX .

Control your emotions and dont be Greedy because u will end up losing more. Its always good to take small bites at the apple instead of trying to Swallow the whole thing lol. Forex is not for everyone as u may know the famous figure of 90 to 95% fail. So if u try it out n think its not for u !!!LEAVE AT FIRST SITE!!!. From day one Practice n in your mind set a goal to develop your own style and strategy. From months of practice i have noticed i like short trades which lasts 10 - 30 mins per trade (sometimes up to an hour) on a 5 mins chart picking up 3 - 10 pips per trade . I am suited to this style and i have developed a strategy to go with it AND DECEPLINED MYSELF TO FOLLOWING IT.

*NEVER THINK U WILL FIND A STRATEGY THAT WORKS 100% OF THE TIME*

You WILL lose money in forex ladies n gents but U can win MORE time than u LOSE in forex that is the key to remember. Its possible to develop strategies that will win 90% of the trades u take and lose 10 % . Thats wot u have to aim for.... U will get there if u put in the hours and work SMART N HARD. It is really worth it at the end. Like all things "the first step is the hardest to take". When u know your stuff its simple.

5. HAVE A REALISTIC AIM

Before u start trading make sure u have a clear head otherwise u WILL LOSE. Aim for 10 to 15 pips of profit a day for starters. Its pretty simple to catch 10 - 15 pips per day if u know your stuff if u dont u WILL LOSE. when u'r fairly consistent at getting that aim for 20 - 30 pips this is possible when u get experienced and understand how different currencies behave n also develop ur senses for predicting accurately, u become a PRO at using a number of good indicators and DECEPLINE URESELF at using them. Occasionally u will catch 80 - 100 pips a day when u are at it so there is somthin good to look forward to .

Well thats how far i got up to folks with my trading. I hope it helps u guys. I have heard of people getting over 100 pips a day consistently n i think it is possible when u become a GURU in forex . I am not online as much as i like to because of my busy lifestyle but feel free to ask questions when iam online on MMG or post it here. So good luck n work ur way through smoothly "DONT LEARN TO RUN BEFORE U CAN WALK".

Keep ur eyes open on this thread as ill be posting helpful thoughts and links.

Forex for Dummies - 2

Forex Basics

If you've already read the "What is Forex?" section then you should know what Forex market is and what it is all about. If not, please, do it. There are five essential aspects of foreign currency market a beginner trader (and an old one as well) should be aware of:

• Forex Fundamental Analysis
• Forex Technical Analysis
• Money Management
• Forex Trading Psychology
• Forex Brokerage

Understanding and mastering these aspects of trading are crucial to organize your Forex trading experience.

Forex Fundamental Analysis

Fundamental analysis is the process of market analysis which is done regarding only "real" events and macroeconomic data which is related to the traded currencies. Fundamental analysis is used not only in Forex but can be a part of any financial planning or forecasting. Concepts that are part of Forex fundamental analysis: overnight interest rates, central banks meetings and decisions, any macroeconomic news, global industrial, economical, political and weather news. Fundamental analysis is the most natural way of making Forex market forecasts. In theory, it alone should work perfectly, but in practice it is often used in pair with technical analysis. Recommended e-books on Forex fundamental analysis:

• Reminiscences of a Stock Operator
• What Moves the Currency Market?

Forex Technical Analysis

Technical analysis is the process of market analysis that relies only on market data numbers - quotes, charts, simple and complex indicators, volume of supply and demand, past market data, etc. The main idea behind Forex technical analysis is the postulate of functional dependence of the future market technical data on the past market technical data. As well as with fundamental analysis, technical analysis is believed to be self-sufficient and you can use only it to successfully trade Forex. In practice, both analysis methods are used. Recommended e-books on Forex technical analysis are:

• Chart Patterns and Technical Indicators
• Candlesticks For Support And Resistance
• Trend Determination

Money Management in Forex

Even if you master every possible method of market analysis and will make very accurate predictions for future Forex market behavior, you won't make any money without a proper money management strategy. Money management in Forex (as well as in other financial markets) is a complex set of rules which you develop to fit your own trading style and amount of money you have for trading. Money management plays very important role in getting profits out of Forex; do not underestimate it. To get more information on money management you can read these books:

• Risk Control and Money Management
• Money Management (A chapter from The Mathematics of Gambling)

Forex Trading Psychology

While learning a lot about market analysis and money management is an obvious and necessary step to be a successful Forex trader, you also need to master your emotions to keep your trading performance under strict control of mind and intuition. Controlling your emotions in Forex trading is often a balancing between greed and cautiousness. Almost any known psychology practices and techniques can work for Forex traders to help them keep to their trading strategies rather to their spontaneous emotions. Problems you'll have to deal while being a professional Forex trader:

• Your greed
• Overtrading
• Lack of discipline
• Lack of confidence
• Blind following others' forecasts

These are very professional books on psychology written specially for financial traders:

• Calming The Mind So That Body Can Perform
• 25 Rules Of Forex Trading Discipline
• The Miracle of Discipline

Forex Brokerage

Every Forex trader like any other professional needs tools to trade. One of these tools, which is vital to be in market, is a Forex broker and specifically for Internet - on-line Forex broker - a company which will provide real-time market information to trader and bring his orders to Forex market. While choosing a right Forex broker things to look for are the following:

• Being a professional company you can trust
• Provide you with real-time quotes
• Execute your orders fast and accurately
• Don't take a lot of commissions
• Support the withdraw/deposit methods that you can use

For beginning Forex traders I recommend these four brokerage companies that are probably the best Forex brokers to start with:

• FXOpen — one of the most popular and progressive brokers with MetaTrader platform and comfortable trading conditions for all kind of traders.
• InstaForex — a reputable MetaTrader 4 brokers, allows Islamic Forex trading accounts, while you can deposit and withdraw money via WebMoney.
• FXcast — good because you can start trading Forex with as little as 10$, use MetaTrader 4 platform and the dozen of various deposit and withdraw methods, including WebMoney, Moneybookers and wire transfer.
• LiteForex — broker that supports MetaTrader 4 Forex trading platform and doesn't require a lot of money to start with.



Top 10 Forex Trading Tricks: You Won’t Lose

The foreign exchange market or forex is the largest and most liquid markets in the world. Its growing popularity can be seen by the whooping $2 trillion trades a day. While the forex can be an extremely lucrative market, it can also be somewhat complicated. These ten tricks will help insure trading success in the foreign exchange market.

First, make sure you implement a trading plan. You should develop a foreign exchange trading system that you can stick with. Having a decent strategy is not enough you need a well-developed system to effectively implement your strategies. You should start by creating a schedule of when you will do your Forex trading. Next create on organized budget to keep track of the inflow and outflow of your money. It’s important to understand that Forex trading, like any business venture, will have its peaks and slumps. You should be prepared to stick to your system despite these fluctuations to maximize profits in the long run.

Second, make plans to trade within your means. Quite simply, if you cannot afford to lose, then you really cannot afford to win either. All traders hope that the will be profitable in their investments, but losing at some point is inevitable. For this reason it is important that you invest only money that you could stand to lose. Try setting aside some saving that you can dedicate just to trading.

Another helpful hint is to trade along side the majorities. This means trading mainly on the most common currency pairs. The most common currencies are the United States dollar, USD, the Japanese yen, JPY, the European Euro, EUR, the United Kingdom pound, GBP, the Australian dollar, AUD, the Swiss franc, CHF, and the Canadian dollar, CAD. The most common pairs of currency are referred to as majors and are GBP/USD, EUR/USD, AUD/USD, USD/JPY, USD/CHF, and USD/CAD.

Another way to insure success is to avoid emotional trading. Stick to you trading strategy and do not deviate because of gut feelings or hunches. Learn to exit the market when signals indicate that the market is about to swing in an unfavorable direction.

Learning to trust the trends is another important trick. Although currencies will always fluctuate slightly, they generally move steadily in one direction. If you are not sure on where to position yourself in the forex, following a trend is usually a safe bet.

Next, you should anticipate small losses. Know matter how well you know the market or how long you have been a trader you will probably encounter small losses. You need to expect and accept these losses as small components of a larger plan. Be ready for these small losses and put them aside in anticipation of acquiring greater returns in the future. The key to long-term success in the Forex market is patience.

Another helpful hint for traders is to avoid Forex strategies that you do not understand. You should do your research ahead of time and draw on the information from useful Forex guides and tutorials. It is important to be cautious of Forex scams. There are numerous scams popping up where companies offer to do your trading for you, these are the ones you should avoid. You should develop your Forex methods with an expert and only make trades on your own or through a licensed broker. The bottom line is making sure that you are fully aware of all aspects of your strategy and are comfortable with the risks and benefits.

Next, make sure you have an exit strategy planned out. Though you should expect small losses, you need to be able to recognize when you are in to deep. Before you jump into the Forex market you should set yourself limits on how much you plan to invest. One you determine the amount that you plan devote to your Forex trading do don’t surpass you limit. Be able to cut you losses once you realize the situation will not get better.