Forex Market
Thursday, 24 July 2008
The foreign exchange market (forex) may be a traitor market to trade especially if you're not properly equipped for employment. You will need to pay attention to the following: equipment and the type of Internet connection you have, the overall amount of capital, you can put at risk on this company and the amount of capital that you are willing to risk a trade, your broker and reliability of the trading platform, maps and technical analysis, good entry and exit signals, be aware of press releases that affect this market, the need to use limiting loss on each trade to protect your position, cutting losses if a trade goes against you and the composition of profits.
You ideally need a Pentium 4 desktop computer running Windows XP with a speed of 2.5 GHz processor and 512 MB of RAM. The monitor should be at least 17 ", but 19" or larger is better. You can get away with a 56K dial-up connection to broadband, but is generally much better in terms of stability.Some people have been known to trade this market successfully from a laptop which gives them mobility.
You will need a minimum of $ 20000 venture capital to trade this market. "The capital investment," it does not have money you need to live from month to month, and therefore you can use it on the market for speculative purposes. The reason for the entry figure is so high that it is inadvisable to risk more than 3% of the total venture capital on a trade. On this basis, the maximum amount that you should be put at risk on a trade is $ 600 ($ 20000 X 3%) making full use of the lots. You can start with a lesser amount of risk capital using mini-lots and still maintain the maximum 3% loss a trade.
You need a broker to choose wisely for two reasons: its financial stability and the stability of the platform it provides. It is best to choose a broker with evidence on the market FOREX operating a well-regulated countries like the USA, UK or Switzerland.This market was open only to speculators in 1997, for brokers changes have not had a long history as stockbrokers.It It is therefore preferable to choose on the basis of the size you look for a broker at least 10000 customers operating from one of the aforementioned countries. The functionality of the platform provides the broker is important for the implementation and monitoring of operations live. What you do not want is a platform which keeps down at crucial moments in your trading day. In my experience, platforms owned the major brokers are now very reliable although there might be a problem with continuity of data displayed from time to time.
People who trade off-market forex fundamental analysis have been known to remain in the positions taken for several days, weeks, months or even years. If you are daytrading this market, however, you do not have much choice but to use technical analysis as a basis for your decisions. Hence, the cards become vitally important in the decision-making process. candlestick charts are the easiest to follow on the screen as easy to distinguish a bull a candle to wear just by looking at the different colors. With graphics, especially at the beginning of your trading day, it is preferable to use the "top-down approach.Even if your entry and exits May be made outside the 15 minute chart, you should start the day by looking cards every day get an overview. Then, Table 4 pm, an hour and 30 minute chart each in turn, be consulted before your table (15 minute) to get the top-down perspective on the market.
Buttons support or resistance provide good entry points for transactions. A support line can be drawn by joining the merits of the two candles that are lower than their immediate neighbors recall that the support line should be tilted up so the nearest candle line is connected must be higher than later . If this line is then extended in the future and is confirmed by a third candle touching the line you have a solid support line. When a candle richness of this online support and 15 minutes candle closes below this threshold and candles go 5 seeds (or points) beyond the bottom of the candle that broke the support line, you an entry point valid for a short trade (selling thatis the currency pair being traded). Lines of resistance are carried out on the same basis except that the first line should have a slope which, when broken, and the other entry criteria is met, gives you a valid entry long (which buys currency pair being traded).
Before you start your trading day, it is imperative that the DayTrader knows when economic news affecting currency pairs being traded is scheduled for released.There are various websites that are not, but the best that I 've found is http / / www. dailyfx.com. If you go to their homepage and click on Calendar at the top, a page opens with the words "Weekly Economic Calendar for ....." in the upper left corner where you click to the page where all the information required for major currency pairs are traded on a daily basis. The hours of press releases are given in both GMT and the East so that you May to compensate depending on the time zone you're in the world.Knowing when the news will be released is crucial, because according to its May it is advisable if you're in a business that makes a profit. to take their profits before the news hit the wire, or at least strengthen your judgement.
It is also reasonable to never trade without a stop. For daytrading a stop in the region of 20 to 30 pips is reasonable. It is the loss that you are ready to take on trade if it goes against you. It is also advisable to set your goal profit higher than the loss of 25% -50% depends on the quality of the signal generated. Only 3% risk of your risk capital on any one trade. If you start with $ 20000 venture capital and after 4 months or if you've found it has risen to $ 40000, now use 2 lots for trade and employment compounding.When what you pushes the $ 60000 capital, you must use lots 3 and so forth. If your selection criteria is good your capital can build at a surprising rate using this technique.
Labels: forex
posted by Master @ 02:07,