Tag Archives: forex trading

What is Forex: Beginners Guide To Forex Trading

Hey, what is Forex? You sure have heard the term Forex trading a lot recently. This probably has woken up some questions in your mind. This is why we have created this beginners guide to Forex trading in order to build your first impression about the currency market.

Content of Our Beginners Guide To Forex Trading

These are the topics that we will concern in our Forex trading beginners guide:

  1. What is Forex Trading
  2. How Does Forex Trading Work
  3. How to Start with Forex Trading

What is Forex Trading

Foreign Exchange market a.k.a. Forex is the place where trading goes off of the difference between various currencies. The Forex market is the largest, most liquid financial market in the world. It even dwarfs Stock market in size. The currency market has an average trading value of approximately $2,000 billion a day. Currency exchange generates foreign trade and business. Forex market takes advantage of the rise and fall of currency values based on global business dynamics among other factors.

How Does Forex Trading Work

Forex trading market is for currency exchange. But actually it has no central marketplace to work with. The whole Forex trading process runs electronically over-the-counter(OTC). This means that all the Forex trading transactions go electronically between traders over the network.

Forex Trading

In Forex trading, the user usually chooses a currency pair and has to bid based on the rises and the falls of its value. If the bidding is right the user gets his part of the profit. If the guess is wrong, the user loses. There are a lot of strategies and calculated studies in relation when investing in currency.

How to Start with Forex Trading Now

Even after reading this, perhaps you might have certain doubts and inhibitions about delving into the world of Forex trading. One of the websites that could give you more details is Aristrex.

4 Best Binary Options Trading Strategies that Work

Binary Options online trading is one of the famous trends in the pecuniary markets today. Both proficient and amateur traders are hurrying to incorporate them in their investment files. Same as to any other trading policy or business, you should have a game plan to use for making steady profits. In this relation, it is essential to approach some of the best binary options trading strategies that work.

How to Trade Binary Options Successfully

In the case without a tactic or technique to assist you in making money with binary options, you should see yourself betting. Depending on fortune is not pretty safe in binary options day trading. This is so because in the long run it will not be working for you and might wind up in losing the majority of your investment. You will require a dependable method that you can utilize all the time, which shall assist you to make the right forecasts. To trade binary options with success, you have to utilize a binary options trading and a system that you know well. If you test it and prove its positive odds, it is likely to steadily boost your odds of winning

Now let’s discuss some of the best binary options trading strategies that work.

1. Principal Analysis Methodology

This system involves the study of the conducting the entire performance or qualities of an organization e.g. fundamentals. As a binary options strategy trader, you are very interested about a sound balance sheet, the cash flow statement and the income statement of the organization before thinking about purchasing an option. When trading binary options with fundamental analysis, alternate elements that you ought to look at incorporate the worker and the business accomplices’ fulfillment. Basically, this methodology scrutinizes the total picture of the business they need to invest into their stock and on occasion the complete industry.

2. Technical Scrutiny System

This is a very famous procedure in option trading. It chiefly involves the investigation of the past, utilizing diverse parameters, for example, charts to anticipate the future cost of an asset. It’s very helpful in option trading in light of the fact that as a trader, you don’t need to dig into the organization’s financial statements.

3. Primary Options Systems

This technique is much famous amongst option traders. It is composed and utilized by a trader to defend himself from sustaining a total loss on their ventures. You shall pick an elementary asset or money that you are keen on and after that if the market is heading towards a good course, you can put a call option. In the meantime, you can place a put option in the same resource.

4. Money Administration Strategy

Without a right money administration, even the elite binary options trading system will destroy you in the end. Every binary options winning strategy is likely to lead to losing few trades. Accordingly, the primary objective of your trading approach can’t be to win every trade, yet to win adequate trades to wind up with a net gain at last. Money administration is the instrument that shall help you accomplish that.

Great money administration comprises of various guidelines, above all that you ought to just contribute a fixed little rate of your total capital in a trade. A precise money administration shall assist you to survive loss and make a consistent gain.


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Reasons Why Most Forex Day Traders Fail and Lose Money

Here’s the truth – most forex day traders lose money trading forex. And, if you have tried it on your own you have probably lost money too. But why do forex traders lose money in most of the cases? I don’t know what happened in your situation that caused you to lose money. But I do know, in general, why day traders fail and what causes most people to lose money with forex.

3 Reasons Why Forex Traders Fail

There are three factors that I find for reasons why most traders fail, and I want you to do a “self-analysis” to see if this is happening to you too:

1) Greed

This is a tough one because none of us want to admit to being greedy. However, MOST of us are to some degree! If you find yourself making money with forex but always wanting to “make more” only to find yourself eventually losing money, then you are struggling with greed! Remember, greed is one of the most common reasons why newbie traders in Forex lose money.

2) Unrealistic Expectations

Most people like forex because of the volatility and quick movements throughout the day. For some, this is no different than the thrill of gambling in a casino. If you are expecting to turn $1,000 into $10,000 in 30 days or less, then you have VERY unrealistic expectations.

Your goal should be to steadily make positive gains day after day and let your account grow through compound interest. Give yourself a LONGER timeline to become successful. This will reduce the pressure at you, boosting your Forex success rate.

3) Poor Money Management

Put simply, this means trading too large of a position for your account size. If you are risking more than 1% of your account on any one trade, you are trading too large. I personally trade MUCH less than 1% per trade because it helps to lessen my risk even further. I recommend you do the same!

And while we are on the subject …

Is Forex Trading Gambling?

Many people who don’t understand what is Forex immediately label it as “gambling” and guess what, most of them are right! And the reason they are correct is that traders violate the rules that professional gamblers follow EVERY DAY without fail.

Is Forex Gambling

What are those rules? Here are just some of the pro tips I’ve learned over the years.

1) Never trade based on emotion

If you “feel” like a trade is going to go in a certain direction based on feelings alone then WALK AWAY. Leave emotion at the door! Pro traders place a trade for one reason only – they see an event unfold and they know with a high level of certainty that an outcome will repeat after that event (most of the time). They are playing an edge based on TESTING.

2) Never trade outside of your plan

This means you should trade the HOURS, the FOREX PAIRS and the TIME FRAMES you have decided that are best for your trading style. When you trade outside of that bad things happen. Don’t do it!

3) Walk away from your computer

Forex is not a “game” that rewards you for long hours. In fact, it usually works just the opposite. I guarantee that the more time you spend on your computer, the more trade setups, you will magically “see” and take. Taking MORE trades in forex will not reward you. Take just enough to make your profits and then WALK AWAY!

Now it’s your turn. Look in the mirror and decide if you want to trade forex for a living or let fear hold you back! Then, make a decision to take the first step to a life of freedom!

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3 Advanced Price Action Tricks Forex Traders Should Know

Forex traders who are aware of the secrets behind the advanced price action Forex trading can significantly increase their earnings. Knowing how to read price action is one of the most important trading concepts in the Forex market. Therefore, we have prepared this advanced price action tricks article, explaining price action Forex trading for dummies.

The advanced price action knowledge can improve the trading efficiency and the ability of the Forex trader to analyze trading charts. The problem is that there are a lot of action price rumors and misconceptions that confuse newbie traders and lead them to big failures. This article is going to share 3 of the most important price action tricks that will help you read price action. Now let’s see how to use the price action without losing in trades.

Resistance and Support Zones in Price Action Tricks

These two concepts pertain to the Forex charts and are the most popular price action concepts. The truth is that not many traders know the Resistance and Support secrets, and this interferes with making money in Forex. Many traders make use of single lines when looking for the resistance and support, which is wrong. They fail to catch the actual resistance or support zone during the live trade. This is because single lines are not as effective as referring to a zone/area when performing advanced price action analysis.

daily price action resistance and support

The above graph shows clearly a resistance and support zone as a whole area. The area is marked with gray on the chart. See that in the first half of the chart this area acts as a support, while at the second part of the chart it acts as resistance.

There are multiple ranges for which traders can target profitable deals here. A single line becomes too narrow and unrealistic in this case. For this reason, there is a great chance that you miss many good trades or open many losing trades by only relying on single lines when trading price action resistance and support.

Focus on Price Action High and Low Points

This is a very important point of the price action Forex trading because the high and low points tell us the strength of trends and the direction of the market. In many cases, daily price action highs and lows foretell trend reversals by signalizing about ending trends in advance.

The high/low analysis should be performed in combination with other price action trading methods like the resistance and support rules. The more you commensurate the information, the more reliable the results will be.

Another very powerful price action trick is when traders analyze the highs and lows with a trendline indicator. Below you will find three price action tricks which will help you understand the highs and lows beyond the normal Forex trading knowledge:

  • Identify long price action impulse coupled by small pullbacks. In most of the cases, this appears to be a strong trend.
  • Is the price trend hardly making any higher high and lower low? Maybe the market is telling you about fading momentum. This very often ends up with a trend reversal.
  • Look for the trend where the daily price action is making new highs and lows. This is a sign of volatility, and volatility is one of the strongest turning points in Forex.

Advanced Price Action Chart Patterns and Daily Price Action Setups

I will now meet you with a couple of the most famous daily price action chart patterns in Forex trading. These are the well-known Double Top and Double Bottom chart patterns.

We have a Double Top pattern when the price action creates two tops in the same resistance zone. The Double Top Chart Pattern comes after bullish trends and tends to reverse the price action. This creates bearish potential on the chart, which signalizes that you need to sell.

The Double Bottom pattern is opposite to the Double Top. We have a Double Bottom figure when the price creates two bottoms in the same support zone. The Double Bottom Chart Pattern comes after bearish trends and is known to cause reversals. Here, the created potential on the chart is bullish, which gives you a signal that you need to buy.

The Double Top/Double Bottom chart pattern is one of the most popular daily price action setups in Forex.

Correct Market Selection for Advanced Price Action Forex Trading

Many traders misunderstand the concept of the market selection and do not build a watch list before entering the markets. An effective market selection is highly advisable for the beginner and also the advanced price action traders. It is also highly advisable to look into the markets for crystal clear price action Forex trading figures. At the same time, make sure you avoid trading in markets where the price action is too unpredictable and noisy.

These advanced price action tricks will help many newbie traders to enhance their trading quality. If you have paid attention to these price action Forex trading tips, you will be able to pick markets that provide many trading opportunities.


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Forex Loss: 5 Tips Why Newbie Traders Lose Money in Forex

Forex market is the most volatile and vulnerable market in the world. It requires lot of patience and discipline to make money on the Forex market. Many newbie traders enter the Forex market with huge expectations. The main aim of the FX newbie is to make quick money from Forex. However most of the newbie traders end up making many trading blunders. At the end they account for a big Forex Loss and quit trading.

5 Reasons Why Newbie Traders Account Forex Loss

The truth is that most traders lose money in Forex. The statistic shows that about 95% of the traders lose money on the Forex market. This means that only 5% are actually making a living from Forex. 1 out of 20 traders is making money from Forex. The other 19 traders account for overall trading losses when investing in Forex. This brings the question: “Since so many traders experience FX loss, is it actually possible to make money from Forex?” The answer to this question is YES!

But to understand how traders make money from Forex, you should first understand Forex loss and learn how to avoid big trading losses. Therefore, we will now go through the 5 reasons why traders lose money in Forex trading.

Deviating from the Trading Discipline

trading discipline

A person wishing to engage in Forex rate trading should always follow the strategy of maximizing the profits and minimizing the losses. Not everything that comes in your way should be traded. Forex trading requires lots of analysis and strategy formulation. Strategies have to be followed strictly and you should never cheat on your Forex trading discipline. One has to be preserved and disciplined when trading Forex. There may be several tempting deals coming across the Forex trading process. But one should follow the strategies in a disciplined manner. In a long term you will be rewarded for your patience. If you don’t follow strictly your strategy, then you will definitely experience the Forex loss more often than you should.

Poor Analysis of Factors Affecting the Trade

poor analysis

Newbie traders do not plan their trading moves properly. There are several factors that can have an impact on the Forex trade. It is important for a newbie trader to have a thorough knowledge of these before planning and implementing strategies. Below you will find a list of some important factors, which can impact your Forex trades.

  1. Varied Market Forces
  2. Policies of Different Nations
  3. Technical Indicators
  4. Economic Indicators
  5. Market Sentiment
  6. Relation between Currency Pairs
  7. Forex Trading Time Zones and Overlaps

Each of these is an important point for the implementation of a proper Forex analysis. Forex beginners should understand these factors determine the Forex forces. Not knowing these guarantees you that you will account for a loss in Forex.

Dependence on Forex Automation

Forex automation isolates the human factor when opening and closing Forex trades. This could make the amateur trader dependent on the automated Forex trading. This could turn out to be very bad in case a Forex beginner turns off the Forex automation. Would you be able to implement your strategy as strict as the automated Forex software does? If not, then you will definitely account for a higher FX loss.

Setting Unrealistic Forex Targets

trading discipline

People have high expectations from Forex trades. The dream of FX beginners is to become rich overnight. They set unrealistic targets which require a very high stake investment in a trade. This involves a great amount of risk which is often neglected. Only the returns are calculated ignoring the risks involved. Setting unrealistic Forex targets leads to:

  1. Greater Position Size
  2. Neglecting Margin Requirements
  3. Taking More Leverage than You Can Afford
  4. Trading Many Currency Pairs
  5. Taking Risks with Low Liquidity Currencies
  6. Experiencing High Currency Loss in the Long Term

If you expect to make fast money from Forex I guarantee you that you will end up broke. First, consider the amount you deposit in your bankroll. Then work on pursuing a realistic monthly return. Most experienced traders say that they make around 10% monthly return. As a beginner you can aim for anything above 5%. After all, we shouldn’t forget that the yearly interest rates in the US are 0.50% and in Europe are 0.00% (Nov, 2016). This means that a 5% monthly return is an extremely big achievement.

Taking Unrealistic Leverage

unrealistic leverage

A Forex trade offers low margin and yields higher leverage in order to commence the trade. The range may exist something between 50:1 and 400:1. As a result people go in for bigger trades with small investments. Although high leverage yields greater profits, it also results in bigger losses. Newbie traders just want to make more profit. As a result they opt for high leverage trades and end up being Forex losers. Experienced traders always aim for moderate leverage and continuous profits without any unnecessary blow to the investment.

Conclusion:

Trading profit and loss account are normal phases of the Forex trading process.

Forex trading is not about making fast money. It is about generating steady income.

Newbie traders often neglect the risk in trading and fall into the trap of being a Forex loser. The top 5 reasons why traders lose money and account Forex Loss in trading are:

  1. Poor Trading Discipline
  2. Poor Forex Analysis
  3. Dependence on Forex Automation
  4. Setting Unrealistic Forex Targets
  5. Taking Unrealistic Forex Leverage

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Forex Broker with Lucrative Trading Conditions

Author: John Gilmore
Email: John.Gilmore865@gmx.co.uk

Financika is a not the most well-known broker on the internet. All of the available information about the services they offer, however, will tremendously improve your trading abilities. Since collecting information about the broker can be a time-consuming nuisance, we have decided to publish all of the information in one place.

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Account Types and Available Trading Platforms

To start with the broker offers only one regular account type. The account features a minimum deposit of $250, while the vital leverage factor is set at 1: 200. Although there is currently a lack of demo accounts, Financika does provide various learning tools for its beginner traders. One of the clear advantages of Financika is the variety of trading platforms it provides to its clients. When working with the broker, traders can opt to use the platform WebProfit, PROfit or the ever-popular and credible MetaTrader4.

Learning to Trade

Financika is a true leader in the Forex education department. The broker has created a sort of Forex Academy that very few competitors currently offer. The learning material includes video and text material aimed at improving the traders’ skills. The material however is not only useful for beginners. Traders with years’ worth of experience can also gain knowledge from the academy.

The Academy is divided into several sections. These include several charts, such as the line and bar chart, and the candlestick chart. Basic terminology and fundamental and technical analysis are also included within the academy.

The remaining sections of the learning program are equally informative and offer traders various ways of interpreting different trading trends, price fluctuations and moving averages. They also provides a detailed explanation on how to understand and benefit from the use of fundamental and technical analysis when trading.

To further enhance the traders’ abilities, Financika has included several trading tools. The daily market review, currency chart, economic calendar, and extensive glossary are all complimentary for the registered trader. The weekly video analyses are also not to be overlooked.

Additional Help

One of the biggest advantages of Financika is their variety of risk management tools. These include the Stop Loss order and the Take Profit. The former order limits the investor’s loss during a certain position, while the Take Profit position allows future sell orders to earn a set of security when a price is met.

Depositing and Withdrawing

Depositing with Financika is as easy as “ABC.” A trader can make a deposit via credit card check and bank transfers. Withdraws meanwhile are completed through a secure procedure involving the customer service department.

Human Interaction

Customer support is just an email, phone call or chat away. Traders working with Financika have the freedom to call and obtain vital information at any time they please. While the head offices are located in Port Villa, Vanuatu, Limassol and Cyprus, the telephone number provided is a London one. The customer support is available in a variety of languages including English, Arabic and Russian.

Resolution

Financika may not yet be the Internet sensation that everyone is talking about, but it’s quickly gaining credibility as a solid Forex broker. Their FAQ section is well informed and their overall services are well above average. The lack of a demo-account is a slight setback, but the educational material provided by the broker certainly compensates this absence. Overall, the services they offer are perfect for anyone looking to earn a profit in the Forex world.


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Forex Arbitration: Traders Rights in Forex Legal Dispute

As you may know, Forex opens not only alluring prospects of financial gain but also involves substantial risks. Conflicts over order execution occur between the parties involved in a transaction (the broker and the trader) all too often. Therefore, traders often get involved with Forex arbitration claims and Forex legal disputes. One should always know the traders rights during a Forex dispute resolution. Therefore, we have created this article explaining the trade laws and how to apply them.

Trade Laws and Forex Arbitration Claim

In most jurisdictions, local trade law regulatory authorities oblige Forex brokers to take part in independent Forex dispute resolution systems. The reason for this is to protect the traders rights in situations when a Forex arbitration conflict cannot be resolved through negotiations between the FX broker and the client. The best-known Forex dispute resolution systems are represented by trade laws enforcing bodies like the Financial Ombudsman Service of the United Kingdom of Great Britain and Northern Ireland, the Financial Dispute Resolution Scheme of New Zealand, the Financial Ombudsman Service Limited or the Credit and Investments Ombudsman in Australia, and so on.

Forex Trade Law Forex Dispute Resolution

Independent Forex dispute resolution systems are organizations that act as intermediaries between brokers and their clients. Forex legal dispute systems can be organized by the state or by traders themselves for the benefit of other traders. An example of the latter is the Financial Commission.

Conflict resolution through independent Forex arbitration has a few differences as compared to Forex legal proceedings in the country of the broker’s incorporation.

Firstly, it is free. When filing a lawsuit in court, a trader will have to pay an official fee, but lodging a complaint with an independent Forex dispute resolution system does not cost anything to the trader. In fact, financial costs of a Forex dispute processing are carried by the broker. Being part of an independent dispute resolution system is mandatory for maintaining a brokerage license, and brokers pay annual membership fees for it.

Secondly, according to the trade laws the Forex arbitration decision is binding for the broker, but not for the trader. Therefore, if the trader is not satisfied with the decision taken by the dispute resolution system, he can utilize other ways of finding a solution to the problem, including taking Forex legal action.

Traders Rights during Forex Arbitration and Forex Legal Disputes

Filing a Forex arbitration claim is an independent and objective process to pursue Forex traders rights. The broker and the trader are equal in presenting their cases to an independent Forex dispute resolution system. It means that the broker cannot influence the outcome of the Forex arbitration. The appointed mediators, who are neither employed by nor affiliated with the broker, will make a decision on a case.

Forex Legal Traders Rights

While investigating a Forex dispute case, the mediators will take into consideration all the evidence provided by the parties, including account opening agreements and other regulatory documents. That is why we recommend making a careful study of these documents before filing your complaint to Forex arbitration.

The trade laws state that arbitration accepts your complaint only if the means of Forex dispute resolution through the broker’s internal policies have been exhausted. The mediators will check which steps have already been taken by the parties to settle the conflict.

You should also keep in mind that the financial compensation, which can be offered by arbitration is limited. Some independent Forex dispute resolution schemes set a maximum amount to be awarded to the trader if a claim is settled. Also, other independent dispute resolution schemes have the minimum compensation limit. It means that they will not investigate Forex disputes of less than the minimum limit amount.

Most Forex dispute resolution systems publish case reports and decisions on their websites. Each case report includes a brief overview of the trader’s complaint, the broker’s viewpoint and the Forex legal decision taken by arbitration. As most Forex disputes appear to be quite similar, we assume that anyone who takes an interest in Forex trading will find this article useful.


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Forex Pros: Forex Advantages and Benefits of Forex Trading

The simple accessibility, the 24/5 schedule and the high liquidity, are some of the Forex pros that made trading on the Forex marketa full-time job and even a career for some people. These Forex advantages continue to attract people from all over the world since being your own boss and making your own schedule is appealing for anyone wanting to achieve financial freedom. So if you’re thinking about trading Forex, here are some benefits of Forex trading that you would need to know before diving in the Forex market.

Benefits of Forex Tools

One of the Forex pros is the accessibility on different levels. No matter if you’re a new or an experienced trader, you’ll love the fact that your trading platform provides a lot of tools to up your Forex success rate. In fact, there are many fundamental analysis tools and theories available for long term traders. At the same time, technical indicators draw on for short term trades. Combined, these can help create huge opportunities for any trader, regardless of his Forex background or how long he’s been trading for. Therefore, the diversity is one of the many benefits of Forex trading platforms.

Lack of Central Exchange as One of the Main Forex Pros

Forex operates all over the world, and there is also no central regulator or exchange for this market. While it’s true that there are certain markets where the banks may interfere, these are usually isolated incidents. One of the main Forex pros is that the Foreign Exchange market is hot centralized.

Forex Pros - No Central Bank

If you compare that to the equity market where companies can report losses or declare dividends which immediately cause massive price changes, Forex is by far a lot more stable and safe to trade on. Another of the Forex advantages is that the chances of insider trading are also zero.

Benefits of Forex Trading Flexibility

The Forex market is open 24/5 and what this means is that you can trade at your own leisure. One of the biggest Forex pros is that even if you work a 9:00 AM to 5:00 PM job, you can still do trading on the side. And still, you can do a great job honing your trading skills and building your account at the same time. Forex trading is so developed nowadays that investing in currency could happen from any mobile device.

Benefits of Forex Trading on the Side

Even more, you can also choose the style of trading you’d like to pursue. Whether it’s high volume for small profits, trading long term or short term, nothing forces you to use a trading style you don’t like or think it’s unprofitable. Therefore, when we talk benefits of Forex trading we should not forget that this is the most flexible financial market nowadays.

Also, in the past years we saw the appearance of cryptocurrencies. The biggest among the crypto Forex benefits is that cryptocurrency market works 24/7 – e.g. it never sleeps and you can trade crypto Forex even in weekends.

High Liquidity is among the Big Forex Advantages

The Forex market engages the highest number of users and this creates an extremely high level of volatility. As a result, regardless of how large your currency trade may be, it’s certainly going to be filled right away without any significant price variations. This eliminates problems such as price anomalies and price manipulation and enables spreads that result in more efficient pricing.

Other of the benefits of Forex is the wide range of pairs you can trade. In total, there are eight major currencies which means that you can trade up to twenty eight currency pairs that have relatively tight spread.

Forex Advantages - Many Forex Pairs

These are some of the most popular Forex pairs that drive most trading volume. As for the criteria you can use to choose a pair, it can be anything from economic developments, volatility patterns or convenient timing.

Trading on the Forex market is a great way to make a living and achieve financial freedom. One of the greatest Forex advantages is that you don’t need to be an expert to do this. There are many types of Forex strategies you can use to make profits, so just make sure to come up with one and then start trading.

Conclusion

  1. Currency trading is one of the most popular ways to approach the financial markets and there are many Forex pros for this.
  2. Some of the biggest Forex advantages are:
  3. Benefits of Forex Tools:
    • Fundamental Analysis Tools
    • Technical Analysis Tools
    • Short Term Forex Trading Strategies
    • Long Term Forex Trading Strategies
  4. Lack of Central Exchange – One of the Main Forex Pros:
    • Forex market is not centralized.
    • Lack of centralization makes the Forex market safe and stable.
    • Another of the Forex advantages is that there is no chance for inside trading.
  5. Benefits of Forex trading flexibility:
    • Forex market is the most flexible financial market nowadays.
    • Forex market is open 24/5.
    • Another of the big Forex pros is that currency trading could be your side job.
    • Cryptocurrency market is available 24/7 letting enthusiasts to trade currency even during weekends.
  6. Forex Liquidity – One of the Biggest Forex Advantages:
    • Forex market involves many participants.
    • The currency market is the most liquid market today.
    • Trades are instantly filled without big price variation.
    • Another of the big Forex benefits is the wide range of Forex pairs available for trading.

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Forex Today and Where is Forex in Your Trading Portfolio

Where is Forex Today in Your Currency Portfolio

The key to success in Forex trading all starts with understanding where is Forex in your trading portfolio. In today’s guide, we’re going to talk you through everything you need to know about getting started, in a safe and secure investment environment. Diving in with Forex without knowledge will only end in tears. So, let’s clear up a few things for anyone out there who is new to the foreign exchange trading game and needs to learn where is Forex today in his trading portfolio. Ready to get started?

Understanding Forex Portfolio

Before we get started, can you explain what is Forex trading in layman’s terms? If not, then the chances are that you have difficulties understanding Forex.

Forex Trading Portfolio

It is vital that you learn about Forex before getting involved. It’s a high-risk game to play, and stakes can be enormous. Without a little education, you can damage your trading portfolio irreparably with successive Forex loss. If this sounds like we are trying to scare you away from Forex trading, we’re not. It can bring you incredible rewards – but you are unlikely to see them if you go in half baked with your portfolio Forex management.

Therefore, we will now go further in the Forex portfolio as a potential to profit from the Foreign Exchange market.

Forex Trading Principle

The principle of Forex trading is easy enough to grasp. At the top of the pile, governments swap currencies and make trade deals. Because of the market changes of currencies, there is always one side that ends up better off, while the other is worse off. These changes trickle down into a trading environment that individual investors can access. So, where is Forex today in your trading portfolio? In essence, currency trading is a game that goes into your foreign exchange portfolio. People invest a certain amount of money on currency, asset, or financial product, and hope for a particular result. You can bet that the currency value will rise in a particular time frame, for example, or, perhaps, you can gamble on it going down.

Forex Exchange Portfolio Platforms

There are a variety of innovative Forex trading platforms that you can use for your currency portfolio – each of which has its own set of rules. And, because you are dealing in global currencies, there are also legal regulations you need to consider, too if you deal with portfolio Forex management. It is vital to research these rules – and the Forex brokers you plan to use. Make sure you understand thoroughly Forex broker Terms & Conditions in order avoid unpleasant consequences for your Forex portfolio.

Is Forex Today a Good Addition to Your Trading Portfolio

Because of the risks involved, a robust trading portfolio should not include Forex trading. That’s not to say you should avoid it – but you need your house in good order first. As any investment guide will tell you, sound investing means only using the money you can afford to lose. It’s, even more in the case with a Forex portfolio. Stakes are incredibly high, and it takes a long time to learn the intricacies of the Forex trading environment. Experienced Forex traders learn to ‘feel’ the market, and understand how tiny fluctuations can have a big impact. And, of course, they know that a failure rate of over 50% is not an issue, as long as they still leverage big wins. It’s this that is the major risk factor in Forex – you are more likely to lose. Unless you can handle those losses, it can cause you major issues.

Forex trading is not for everyone. But if you have spare money that you can afford to lose, it can bring high returns. If you invest in other assets as well, make sure that Forex sits slightly outside your main trading portfolio, rather than being the centerpiece.


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Forex Secrets: 10 Trader Secrets to Up Forex Success Rate

Sometimes, perhaps inadvertently, a routine is set for everything we do. Same can be said about forex trading. With time, Forex traders find their rhythm on their way to success in currency trading. But as it is with human nature, every trader has Forex secrets for increasing his Forex success rate. Therefore, this article will reveal the top 10 trader secrets to boost success rate in Forex.

10 Forex Secrets to Raise Forex Success Rate

Trader Secrets for Forex Success Rate

The followed material is developed into 10 subheadings containing 10 trader secrets to raise Forex profitability. Each of these Forex secrets is crucial for applying an adequate Forex trading routine. Therefore, it is important that you approach cautiously each of these

Good Sleep before Forex Trading

This is probably the most important among the trader secrets. Get yourself a good rest before starting your Forex trading day. Adults need a good 7 to 8 hours of sleep to function properly during the day. Compensating with an extra cup of coffee will only lead to sleep deficit and impaired cognitive abilities.

Prepare a Forex Trading Strategy

Forex trading needs a strategic approach. Leave emotions out of it, because it is serious business. Prepare a Forex trading strategy that fits into your goals and objectives, test it to affirm profitability and then stick to it strictly. It will be your North Star when investing in currency.

Forex Trading is Not a Hobby or a Casino

Forex trading is serious business. Treat your currency trading business with the respect it deserves. Forex trading is not about hedging your bets for the big win that often comes with bigger risks than your trading strategy may allow. It is the sum total of your actions in the currency trading markets. Learn the use of position sizing effectively to manage your risks and rewards, and make it an integral part of your trading strategy. Sticking strictly to your trading strategy will increase your Forex success rate.

Avoid Forex Overtrading at All Costs

Although statistically speaking, a higher number of trades are supposed to reduce your risk, they actually rarely manage to do so. Forex overtrading invariably reduces the efficiency of your judgment about currency value. Forex trading should always be about the profit of smart trades versus the loss from bad trades each month.

Master Forex Price Action

Spend some time with demo trading accounts for a few months before trading with real money. Learn few price action tricks or strategies and absolutely master them. It will equip you with the necessary skills of Forex trading and keep you away from overtrading in Forex. It will also help you improve your accuracy over time when you start trading with real money – your money.

Adopt a Healthy Lifestyle

This may seem out of place, but it is as necessary to have a healthy lifestyle as it is to have a trading strategy for Forex trading. Having an exercise routine will keep you in a physical and mental feel-good state and help you sleep better. Start your day with a good breakfast. Indulge in hobbies and time-off with friends and family. It will help you stay focused and keep your cognitive abilities sharp.

Think Long-Term and Stick to Logical Reasoning

Don’t get overzealous after a win or discouraged after a Forex loss. It is a sure-fire way to lose focus and deviate from your trading strategy. Logical reasoning after each win or loss will keep you away from Forex overtrading. Always keep a long-term outlook of your Forex trading objectives. Your trading success or failure is not dependent on one win or loss.

Stick to the Basics

Other one among the Forex secrets of successful Forex traders is to try stay basic. Forex trading is often easily over-complicated by some people. Learn the basics, and stick to them. Simplify everything, and avoid overanalysis. Of course, a thorough analysis is required for executing successful Forex trades, but not at the cost of losing logical reasoning and emotional overtrading.

Learn Trader Secrets from Successful Traders

You should always learn from every successful trader by examining good and bad moves in the market. Many people have tried their hand at Forex trading before you. A trading mentor may help you to unravel the mysteries of Forex trading much quicker than you would be able to achieve on your own as a beginner. Both their successes and failures can reveal many trader secrets that will help you boost your Forex success rate.

Follow the Discipline of Routine

Patience is derived from discipline and routine, and it is essential among the Forex secrets of successful traders. Don’t see them as a task, but as an ingredient for profits and rewards. Let yourself to step out of the information stream of currency markets and take a break. Incorporate patience, discipline in your trading strategy, and you will stabilize your Forex success rate.

Implement these trader secrets at each point of interaction with the currency markets as a part of your trading strategy. Keep your approach to Forex trading simple and based on logical reasoning. There will be winning trades and losing trades throughout your career. All you have to do is keep a clear mindset and you will see the results in your trading accuracy over time.


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Good Forex Broker – 4 Things to Look for in an FX Broker

The Forex market is the largest financial network, and the Forex broker is a crucial part of it. When choosing a good Forex broker, it is important for you to know what is the FX broker offering and what are the advantages, if you open an account. The Forex market is a part of a global financial network. You don’t need to choose a Forex broker from your own country if you don’t want to. You have the ability to choose a currency broker who resides in some other country.

Research the FX Broker Market

The first thing you need to do before start trading is to research the FX Broker market. Check out what mass of the brokers are offering and write down the most competitive foreign currency brokers. As we know, competition is what makes companies great at what they do. It works the same way with the top Forex brokers. Therefore, when you distinguish the best companies in the industry, you should know that your currency broker is among them. Then you should look for the following four characteristics, which distinguish the good Forex broker from the rest.

4 Characteristics of a Good Forex Broker

Here are some characteristics shared by Easy Markets that you should look for while searching for a good Forex broker:

Good Financial Background

There are many newbie traders who think that it is not that important to check the assets of the FX broker that he is going to choose. They think that whatever their funds are, they will get profit as there are traders around the world who are depositing money in their accounts. But this is not true. A good Forex broker needs to have a good asset base of their own. This will ensure you that your money is safe and secure.

Good Forex Trading Platform

Foreign currency brokers work with trading platforms. In order to trade Forex, it is important to use a Forex trading Forex platform that is efficient. The trading platform allows traders to receive Forex news, carry out technical analysis, trade in the market and manage their accounts.

FX broker trading platform

The Forex markets are extremely volatile and dynamic. This is why top Forex brokers have quick and responsive trading platforms regarding price action. There is a simple way in which you can judge these trading platforms. All the good Forex brokers offer demo accounts where you can practice on real trading charts until you become an expert.

User-Friendly Trading Account

There are many aspects of the trading accounts that the FX broker is willing to offer you. Some account features of the top Forex brokers are:

  • Minimum Lot Size which You Can Trade
  • Minimum Deposit to Open an Account
  • Leverage Available
  • Size of Spreads Offered
  • Funds Withdrawal Methods

Make sure that your FX broker lets you to easily access your account and to retrieve money whenever you want. After all, if you are not able to reach your money at any time, why choosing this particular foreign currency broker?

Customer Care

The good Forex broker has a great customer care. The Forex market almost never sleeps. It is open 24 hours a day, five days a week. So, customer service personnel of your currency broker should always be there for you whenever you need help. Before choosing an FX broker, make sure that they will be there for you whenever you have a query, or you need help in Forex trading.

Conclusion

  1. The foreign currency broker is a significant part of your Forex trading experience.
  2. First, you need to research the FX broker market to find the best companies in the industry
  3. You should be aware of the conditions your FX broker is offering you in exchange for opening an account.
  4. The good Forex broker should have:
    • Good Financial background
    • Good Forex Trading platform
    • User-Friendly Trading Accounts
    • Great Customer Care
  5. If you find these four qualities in a currency broker, then this might be the one for you.

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What is Automated Trading System and Trade Automation

Forex traders that are focused on technical analysis techniques will often set up a trading station in ways that allow for automated trading.  To some, trade automation might seem to be risky.  But when certain money management techniques are used, it is definitely possible for traders to account for regular profits using Forex automated trading system on the markets.

What is Automated Trading System

I bet you have heard the term automated trading many times recently. You probably ask yourself “What is automated trading system?” Here it is:

The automated trading involves the programming set of rules into your trading platform. Your platform implements these rules automatically by activating different trading processes. An automated trading system involves setting clear entry levels and targets on the chart, as well as Stop Loss rules.

Nowadays, the automated trading strategies are among the most used when investing in currency.

Forex Automated Trading Strategies

Generally speaking, there are two basic automated trading strategies that work. They are broadly used when Forex traders are looking to establish trade automation.  Automated trading in Forex can be separated into two basic trading techniques. The first are the ones that rely on momentum automated Forex trading strategies. The second are trading techniques that rely on contrarian automated trading strategies.  Here, we will look at some of the differences that exist for each of these automated trade techniques.

Momentum Automated Forex Trading Strategies

First, we look at momentum automated trading strategies which require a certain level of trend activity in order to generate significant trading ideas.  Trends are usually viewed as a series of higher highs or a series of lower lows.  When this is apparent, Forex automated traders can place their positions in the direction of the trendline in order to capitalize on the underlying momentum that can be found in the market.

In these cases, expert automated traders are generally looking to pair a strong currency with a weak currency, as this tends to be the scenario that creates the strongest trends and momentum activity.  So it should also be understood that these are the types of scenarios that are capable of generating the biggest profits for those using momentum automated trading system.  But at the same time, it will need to be understood that few opportunities might be present when markets are not caught in a major trend.

Contrarian Automated Trading Systems

On the other side of the coin, we have the traders that prefer contrarian automated currency trading.  This opposes what happens with momentum automated trading strategies. This is so because in these cases automated traders are actually looking to place positions in the direction opposite the trend.  To some, this might seem like a losing battle.  But if the major trend is about to end, then it will start to make more sense to place automated trading orders in the other direction.

Contrarian automated trading systems allow Forex traders to “buy low and sell high.” Therefore, it can be very profitable when used successfully.  There is risk involved when the dominant trend is not assessed correctly. But money management strategies in trade automation allow for tight stop losses in many cases.

Automated Trading Platform: MT4 Automated Trading

One of the most used automated trading software is the well-known MetaTrader 4 platform. This platform allows full customization and modification through a special coding language called MQL 4, which is the base of the MT4 Indicators.

Automated Trading Platform: MT4 Automated Trading

The MT4 automated trading allows you to set special trading rules that the platform will implement for you. This way the MT4 automated trading platform reduces the human factor when trading, which increases the profit potential in case of a successful automated trading strategy. This is why the automated trading MT4 platform remains among the best Forex software and automated trading platforms.


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Best Forex Software: Online Forex Trading Forex Platforms

Your Forex platform is of great importance to the success of your online Forex trading account. Every platform Forex software has specific features, which are helping Forex investors to improve their trading experience. Today we will discuss the features, which the best online Forex trading Forex platforms should have. This article will then help you to choose the best Forex software for your Forex trading needs.

Best Online Forex Trading Forex Platforms

Some Forex platforms are better than others. Therefore we will look at the important elements which every online Forex trading Forex platform should possess.

Forex traders are constantly looking for ways to gain an edge on the Forex market. But to gain an edge, you will need to find ways to customize your Forex platform, so that it will fit your trading style. To accomplish this, it is vital to have a Forex platform that you can design by yourself. This way you would be able to personalize your Forex trading experience.

The other important feature is the set of tools on your Forex trading platform online. In other words, what type of Forex indicators and oscillators are included in the top Forex trading platforms?

For this reason, the next two paragraphs will be dedicated to the Forex platform customization and the best Forex software indicators.

Forex Platform Customization

Many online Forex trading experts consider that the most important element in Forex trading platforms is the high level of personal customization.  Each of the best Forex trading platforms offers customization. This feature is extremely useful to traders who base their strategy on technical analysis.

When we look at the market as a whole, it is difficult to deny the fact that Meta Trader 4 has attained the highest level of accolades in these areas. This is why it is considered one of the best Forex software products. If you are not familiar with this Forex platform, use this Meta Trader 4 download link to get it. The customization of the MT4 platform is so high that Forex programmers are can build indicators by using the MQL coding language. The MQL4 Community is very big nowadays, and it unites Forex programmers from all over the world. This is why many Forex traders consider Meta Trader 4 to be the best online Forex trading platform.

Best Forex Software Indicators

The indicators included in your online Forex trading platform are of great importance. If there are no indicators in your Forex platform, how are you going to implement a detailed technical analysis? Furthermore, the default parameters of indicators are unsuitable for some traders. Therefore, it is always preferable to use Forex platforms that allow users to modify indicators.

Best Forex Software Indicators

This is an example of the MetaTrader 4 Forex platform indicators. This is a chart, which includes eight different indicators: Trendline, Moving Average, Stochastic Oscillator, Volume Indicator, Ichimoku Cloud, Moving Average Convergence Divergence, Momentum Indicator; RSI Indicator

Does your strategy involve less commonly used indicators like the Average True Range (ATR) or Stochastic Oscillator? Do you employ harmonic or Elliott Wave methods? Meta Trader is one of the few Forex trading platforms, which include these type of indicators. If your strategies use any of these, you will need to choose among the Forex platforms that allow customization.

All of these are factors to consider when new traders are looking for the best Forex trading platforms available currently.

Online Forex Trading Account

online forex trading account

When you find the best Forex trading platform for you, you would need to research which Forex brokers use it. Then you should research your broker as well. First, you would need to check if the broker specifications respond to your requirements. In this relation, you would need to research the following details:

  1. Financial Instruments and Contracts Offered
  2. Spreads with the Different Financial Instruments
  3. Leverage with Different Financial Instruments and Contracts
  4. Minimum and Maximum Deposit Requirements
  5. Bonus Promotions (Deposit Bonus, Rebates, Debit Cards, etc.)

After you research these, and you find out that the broker suits your needs for online Forex trading, you will need to do another research. You will need to find out if the broker is legit. The Forex trading market online is extremely developed nowadays. There are thousands of brokers available, and each of them offers more and more attractive trading conditions. However, most of these brokers are scammers, and they profit not from spreads and commissions, but from your misfortune. Therefore, if you want to ensure that the broker is legit, you should check the following details:

  1. Broker’s Financial Regulation – Never trade with a broker, which is not fully regulated. You want to have an authority behind your rights in case you get scammed.
  2. Leverage – Legit brokers offer a maximum leverage of 1:100. The reason for this is that the big liquidity providers, which the brokers claim to work with, do not provide higher leverage conditions. So if a broker offers you a leverage of 1:500 or 1:1500 (yes, it happens), you will know that it is a scam.
  3. Forex Trading Platform Reviews – Check online what other people think of the broker and the Forex platforms in your focus. Scam brokers tend to modify charts. If you read the T&C of a Forex broker, you will realize that most of them keep the right to change the spread if needed. Scam brokers employ people, who widen the spreads when the Forex rate is close to a psychological level. The stop losses of traders get hit and many Forex trading positions are closed with a big Forex loss.

When you research the information written in the points above, and you realize everything is OK, you can proceed to open an online Forex trading account with the respective broker. If you have doubts about even one of these points, you should never deposit with this broker, because you risk to never seeing your money even if you are a successful and profitable trader. Even if you manage to account profits with a scam broker, there is a great chance that they won’t satisfy your withdrawal. In other words, even if you win, they might not pay you back.

Conclusion

  1. Your Forex trading platform is crucial for your success in the online Forex trading.
  2. The best Forex trading platform for you should offer two basic things:
    • Customization –You should be able to be in charge of your Forex trading experience.
    • Forex Trading Indicators – The good Forex platforms offer a rich set of indicators, so you will be able to perform a high-quality technical analysis.
  3. When you find the best Forex trading platform for you, you would need to research the brokers which offer it. Then you will need to research the broker.
  4.  Broker’s Terms & Conditions
    • Financial Instruments and Contracts Offered
    • Spreads with the Different Financial Instruments
    • Leverage with Different Financial Instruments and Contracts
    • Minimum and Maximum Deposit Requirements
    • Bonus Promotions (Deposit Bonus, Rebates, Debit Cards, etc.
  5.  Is the Broker Legit?
    • Broker’s Regulation
    • Leverage Offered
    • Forex Trading Platform Reviews

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Forex Trading: Australian Dollar Presses Higher

With all the news about Brexit, Italy, and Spain many anticipated the Euro to fade and it has for the past couple of months. This pair has been ranging between 1.4 and 1.6 price levels since August last year.  Fundamentally, earlier in the Asian session we saw the Melbourne Institute Inflation expectation recorded at 3.7% in June against 3.5% rise of inflation recorded in May.

This monthly inflation hint gives us a bird’s eye view of what is to come when it comes to matter inflation — which most central bankers are trying to boost by cutting rates to near zero or even negative. We also saw unemployment rate data increasing to 5.8% last month from 5.7% in May with the economy churning out 7.9K jobs against the expected 10.1K jobs.

This reading was less than half of what the economy created in May. Despite the bad news, the Aussie gained momentarily before losing ground against its European currency counterpart.

Forex Daily Chart Analysis:  Euro vs. Australian Dollar

EURAUD Daily chart-14.07.2016.jpg

Forex Trading Chart Source: Easy Markets

Technically, from the daily chart, price action is trending in the 1.4 price level which is our 12-month support and with news like this, I expect the Aussie to cede ground and boost Australia’s Trade balance in the coming months. We expect the price to turn anywhere within the 1.46 and 1.43 price range and confirmed by the stochastics.

If this does turn out to be the case, the price will reverse from the 23.6 Fibonacci level and go by the rule of thumb price might rise back to highs of 1.6. At the moment, we should not look to buy because of that banding of the lower BB which means momentum is still high and there is no reversal or buy signal yet.  Traders are likely to remain neutral for now.