Forex Trading Strategies – What Are Your Options?

Forex trading revolves around currency trading. The value of the currency can rise and fall as a result of different factors that include economics and geopolitics. The changes in the currency value are what factor in the profits for Forex traders and this is the main objective of getting into the trades. The trading strategies are sets of analysis used by the traders to determine whether they should sell or buy currency pairs at a given period of time.

These strategies can be technical analysis charting tools based or news based. They are made of a multiple of signals that trigger the decisions whether to buy or sell the currencies a trader is interested in. The strategies are free for use or they can also be offered at a fee and are usually developed by the Forex traders themselves.

The strategies can also be automated or manual. Manual systems require a trader to sit and look for signals and also interpret them so they can decide whether to sell or buy. Automated systems on the other give traders more flexibility because they can customize software to look out for specific signals and interpret them. Trading strategies may not be all that perfect in making money, but when you have a sound understanding of what they are all about, it becomes easier to adopt reliable approaches when trading in the currencies.

Forex Trading Strategy Types

There are so many strategies out there that can be used by Forex traders. The most important thing would be for the trader to decide what strategy matches the kind of trading experience they wish to have and what strategies offer the best signals for interpretation so the best trading moves can be taken. Below are some of the top strategies most traders use and some you should consider if you are a beginner in the markets.

Forex volatility strategies – The Forex market can be volatile, meaning that the prices can make very sharp jumps. Volatility systems are created to take advantage of the price actions and are usually best for short term and quick trades. The systems are also based on volatility increase and whereas their winning percentage of trades may be higher, the profits earned per trade can be comparatively low. This strategy is best for traders and investors who understand the volatility perception.

Forex trend following strategies – These strategies use market trend marketing to guide traders towards their long term trading goals. Moving average, current market price calculation and channel breakouts are commonly used to generate signals and decide the best market direction to take. Instead of predicting or forecasting prices, traders using these strategies only follow the market trend.

Forex scalping strategies – Scalping in Forex involves making multiple trades with each of the trades making small profits individually. When using the scalping strategies of trading, the profits are usually anywhere between 5 to 10 pips for each trade. These strategies require constant Forex market analysis and the trader also need to place multiple trades at once. They can be pretty demanding and traders need to be relatively fast in predicting where the markets are headed so they can open and close positions in the shortest time possible.

Forex pivot point strategies – Pivots make it possible to identity entry points especially for range bound traders. These points are also helpful to breakout traders and trend traders in spotting key points that need breaking for given trading move so they qualify as breakout. Traders who understand pivot and calculations around it will find these strategies quite helpful in trading currencies. It is important to remember that calculating pivot using closing prices of the short time frame reduces significance and accuracy of the point of rotation. The calculations need to be precise because they make the Forex market backbone.

Forex chart pattern strategies – Charts are vital in Forex trading in assisting traders in the markets. There are different chart patterns that can be used when trading, but the most common patterns are triangle and head and shoulder. Triangle patterns occur mostly in short-term time frames and can descend, ascend or be symmetrical. Price converges with low and high creates the triangle leading into the tight price area. The head and shoulder pattern on the other hand is more like topping formation when an uptrend occurs and bottoming formation when there is downtrend. The pattern will usually complete in Head and Shoulder when the trend line is broken.

Forex Renko chart strategies – Renko charts are constructed when price surpasses bottom or top of the previous brick by pre-defined amounts. When this happens, the brick is moved in the next column. White bricks are usually used when the trend is up, whereas the black ones are used when the trend is down. This type of charting is useful in identifying key resistance and also support levels. In Renko charts, time and volume really have no major role. You will find all kinds of trading strategies that are Renko chart based to assist your trades.

Other Forex trading strategies you can use are the Bollinger Bands, Forex breakout, Forex support and resistance, Forex candlestick and Forex swing trading strategies.

Picking the best Forex trading strategy

With so many trading strategies available it can be challenging for traders, especially beginners, to decide which way to take. But using a few tips you can have an easier time choosing the best.

Set trading goals and decide whether to go long term or short term. It also helps to decide whether to trade full time or part time. This way you will be able to choose the strategy that best suits you as a trading individual.

Choose a unique strategy by comparing strategies and what they have in store for you. If a strategy does not seem to lie in your best interest, then it is not the right one for you.

Experiment on the strategy you prefer before settling for it. Experimenting first gives a chance to have a deeper understanding of what the strategy is all about and see whether it has worked for other traders in the past or not.

It is also important that you get familiar with trading styles so you can choose the perfect strategy for your trading. For instance, short term traders should consider trading styles like day trading, scalping, position trading and swing trading among others.

The trading strategy you choose can make or break your trades. Take your time to learn as much as possible about the different strategies them make an informed decision.

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Basics of Fundamental Analysis in Forex Trading

Fundamental analysis takes into account economic, social and political variables that affect supply and demand of assets. Basically, supply and demand affect price and like everywhere else in the world, this counts also for the Forex. Based on various factors we can get an idea of how the country thrives. If the economy a particular country is doing well, its currency strengthens. Investors will want to invest in the country which means that they will have to buy a given menu. This means that if the economy is good, currency value rises. If it is bad, so the value of currency decreases.

What is Fundamental analysis
In general fundamental analysis tries to predict how the economic, social and political variables affect exchange rate movements (stocks, commodities or currencies). Default forecasting procedure consists from three steps:

  • Global Analysis – examines the overall economic situation
  • Field Analysis – examines trends in the development of the field
  • Analysis of specific entities – examines the value of stocks, commodities or value of the currency

We can divide the basic needs for fundamental analysis on Forex market into two steps:

  • Global Analysis – analysis forecasting development of currency markets in total
  • Analysis of specific entities – specifically at Forex market follows the development of a currency pair

But because of the Forex market being an internationally interlinked market, almost without borders and limitations, these two steps often blend together creating one big fundamental analysis of the global Forex market.

Fundamental analysis is a way to look at the market through the economic, social and political aspects that influence supply and demand of assets. In other words we are looking for an economy that is doing as well and regularly as its currency is doing. The better the country’s economy is doing, the more the neighboring countries believe in its currency. Marketers use the information based on the reviews posted on financial magazines, websites or published in professional journals and financial newspapers periodically weekly or monthly, in addition to the GDP (Gross Domestic Product) and ECI (Employment Cost Index), which are issued quarterly.

The most important information sources include financial newspaper such as Wall Street Journal, Financial Times, The New York Times, Business Week magazine, for example: as well as websites such as Reuters or Bloomberg, being these two the most prominent.

There are loads of fundamentals and other factors that cause changes in the rates of currency pairs; and fundamental analysis is extremely important for the trader. Even a trader who trades only on the basis of technical analysis must take into account the announced reports.

Politics moves with Forex
All the changes in the movements of currency pairs are directly tied to changes in government, military, economic or financial policy of superpowers. Political crises are usually very dangerous and mostly unpredictable for the markets. Contrary to anticipated political events (elections, conclusions of interstate agreements, etc.), which generally take place at the exactly specified time and provide the market with opportunities coming from these changes, political crises come all of a sudden. It is important to know that in cases such as political crises, the spread can expand from 5 to 100 pips. Then you need to act quickly and with a cool head to avoid large losses.

If you are considering and deciding to trade according to fundamental news, be aware that markets do not always react as they are expected to. Nervousness and speculation about possible developments even before the important messages are announced, often excite false signals to enter the trade. Therefore, it is important and necessary to carefully test the method of inputs and outputs, preferably on some demo platform with actual and real data.

There are a lot of factors that can cause a nation’s currency to fluctuate. The key concept is that the movement of currencies is based on supply and demand, which is influenced by both economic factors and confidence factors.

Basic indicators of Fundamental Analysis
Fundamental analysis aims to determine a currency’s value by assessing the relative strength and weakness of a country’s economy compared to those of its trading partners. GDP growth, inflation, interest rates, and political stability and other factors are all taken into account.

Interest Rates
Growth in interest rates causes an increase of nominal value of bonds and interest rate bonds. Interest rates are charged by various financial institutions. For example, the Prime Rate is an interest rate charged by banks to reputable customers and the Federal Funds Rate is an inter-bank rate for borrowing reserves to meet margin requirements. If there is an uncertainty in the market in terms of interest rates, any developments regarding interest rates could have a direct affect on the currency markets. Generally, when a country raises its interest rates, the country’s currency will strengthen in relation to other currencies as assets are shifted to gain a higher return. The timing at which the interest rate moves is usually known in advance. Interest rates are announced by central banks of individual countries, and the most important are:

  • Bank of England
  • United States Federal Reserve
  • European Central Bank
  • Swiss National Bank
  • Bank of Japan
  • Reserve Bank of Australia
  • Reserve Bank of New Zealand

Economic Indicators

  • GNP (Gross National Product) – GNP refers to the sum of all goods and services created by citizens of specific country.
  • GDP (Gross Domestic Product) – GDP indicates the value of all products and services produced in the country regardless of who owns the assets, or what nationality is the labor used to produce such products and services. The Gross Domestic Product is then the sum of all goods and services produced by both domestic and foreign companies in the economy in a year. GDP is a good indicator for the pace at which a country’s economy is growing or shrinking as it measures the country’s economic output and growth.
  • Consumer spending
  • Investment spending
  • Government Spending

Indicators of Industrial Sector

  • Industrial Production – Industrial Production is the quarterly measure of the change in the amount of goods and services produced per unit of input. It incorporates labor and capital inputs.
  • Capacity Utilization
  • Factory Orders
  • Durable Goods Orders – Durable Goods Orders measure the new orders placed with domestic manufacturers for delivery of hard goods.
  • Business inventories – Business inventories and sales figures consist of data from other reports such as durable goods orders, factory orders, retail sales, and wholesale inventories and sales data. Inventories are an important component of the GDP report because they help distinguish which part of the total output produced (GOP) remains unsold.

Indicators of Construction Sector

  • Planning permissions
  • Registrations, a proxy for housing starts
  • Dwellings completed
  • Investment in construction industry

Indicators of Construction Sector

    • Fiscal Policy – is the part of a national economic policy that affects the economy changes related to the amount and structure of public spending and taxes.
    • Monetary Policy – is the part of a national economic policy implemented by the central bank’s monetary instruments.
    • Inflation – refers to the increase in prices (price level)and wages over time that decrease purchasing power. It is calculated from changes in the price index, usually a consumer price index, or a GDP deflator.
    • PPI (Producer price index) – The PPI measures the average changes in selling price as indicated by domestic producers for their output in various industries. The Forex market tends to focus on the PPI for seasonally adjusted finished goods on a monthly, quarterly, semiannual and annual basis. PPI is an accurate precursor of the important Consumer Prices Index (CPI) figure.
    • CPI (Consumer Price Index) – The CPI is a primary indicator of inflation that measures the average price for goods and services most commonly used by a typical household. By definition, it is a measure of the average price level paid by urban consumers for a fixed basket of goods and services. It reports price changes in over 200 categories. Items included in the CPI reflect prices of food, clothing, shelter, fuel, transportation, health care and all other goods and services that people buy for day-to-day living.
    • GNP deflator – current and constant proportion of GNP
    • GDP deflator – current and constant share of GDP
    • Commodity Research Bureau’s (CRB)
  • Merchandise Trade Balance – balance of trade in goods

Indicators of Construction Sector

  • Report of the Employment Status – generally the most important indicator.
  • ECI (Employment Cost Index ) – the index of wage costs.
  • Retail Sales
  • Vehicle Motor Sales – the index of sales of motor vehicles
  • Personal income

Main Indicators

  • Average workweek of production workers
  • Average weekly claims for state unemployment
  • New orders of consumer goods and materials
  • Performance sellers
  • Contracts and orders for factories and equipment
  • New building permits issued
  • Change of the orders in the backlog of manufacturers
  • Change in the prices of materials

Fundamental analysis is a very effective and efficient method to forecast economic conditions, but not necessarily exact at forecasting market price movements. It important to study the fundamentals and see how they best fit your trading style before casting yourself into a particular mold regarding any aspect of market analysis. Furthermore, it is vital to stay current with public announcements and news that can suddenly move an exchange rate hundreds of pips in a matter of minutes.

Read more about Forex Brokers, Day-trading and Forex Market [http://www.wheretoforex.com].

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Top 10 Tips For Choosing Reliable Forex Trade Brokers

Recently, more and more people are looking towards trading as a form of investment as well as a form of business. Forex Trading or Currency trading is fast becoming one of the most popular forms of investment trading today.

And with minimum start up capital required, the barriers to entry are fairly low and this has made it easier for the man in the street to start trading the Forex market.

However, unless you are a bank or large financial institution, you will require the services of a broker to be able to trade currencies.

Luckily, with an increase in the demand for FX Trading, there is a corresponding increase in the number of Forex brokers in the market.

However, with so many brokers to choose from, the problem facing most potential Forex traders is not how to trade but how to select a reliable broker to begin trading with.

Unfortunately, not all brokers in the market are the same. You will need to find a suitable broker that caters to your specific needs as a trader.

And from experience, this could be prove to be the tricky part as not all brokers offer the same services or have the same charges and policies. Slight differences in charges such as the pip spread will have a large impact on your profits’ bottom line.

Seriously, if you wish to make a living as a Forex trader, you need to focus on the markets and not have to worry about questionable brokers. Therefore, choosing a reliable Forex currency trading broker should be one of the top priorities you need to do before you even start trading.

There are actually several factors that make a foreign exchange broker a good one, and here’s my top 10 tips for choosing good currency trading brokers.

1. Reputation

Reputation is important in this business as there are quite a number of “fly-by-night” operations out there in the market. Basically, the rule of thumb is to stick with the more established Forex currency trading brokers who have a good track record.

An important factor to note is that all of their business dealings must be verifiable. Do they have a legitimate office with many satisfied customers? Have they been in business for many years or did they just pop up overnight?

You can find out a great deal of information from unbiased review websites that talk about their experiences with brokers. If someone got ripped off before, you should probably steer clear.

Dependable brokers should be transparent in their dealings and operations. Relevant information about how they function must be readily available online so that potential traders can easily find out more about their reputation as well as performance.

2. Regulations

No matter which country you live in, always choose a Forex broker that is conducting business in a country where their activities are monitored by a regulatory authority. A reliable Forex broker must be regulated and accountable to the relevant authorities.

For example, the Swiss banking system is one of the most tightly-run ships in the world regulated by the Swiss Federal Department Of Finance, while US Forex trade brokers should be official members of the National Futures Association (NFA) and registered as a Futures Commission Merchant (FCM) with the Commodity Futures Trading Commission (CFTC).

In other words, they must adhere and conform to industry rules and regulations. The last thing you want is some unregulated broker in the middle of nowhere holding onto your money. If they go under, good luck ever getting your money back.

If a broker is not regulated by any monetary authority, it might be better to select another broker instead.

3. Differences In Pip Spread

Unlike stock brokers, currency trading brokers don’t charge a fee or commission, instead they make their commission from the difference in the pip spread of the currency pair when you trade.

Unlike other financial markets, the currency market is not traded through a central exchange, the value of this spread is thus determined by the broker you are using instead.

Most Forex brokers publish live or delayed prices on their websites so that traders can compare spread differences and some brokers even offer a variable pip spread.

At first glance, the concept of a variable spread may appear tempting because of the volatility of the Forex Market. When the market is quiet, the spread is relatively small, but when the market really heats up, the spread difference might just widen large enough to wipe out your profits.

Unfortunately, many brokers out there are referred to as “bucket shops”. They don’t have your best interest in mind and some have been known to change the spreads around to their advantage.

The bottom line here is still to look for FX brokers with fixed and low pip spreads regardless of how the market moves.

4. Speed Of Execution

In my book, this is something most novice traders seldom notice when they sign up for a trading account.

Most brokers do publish live prices on their trading platform but the question here is how fast are they able to execute the order once you click the “Buy” or “Sell” button.

Speed of execution of the order is imperative especially if you are a scalper trading the 5 minute charts, can’t possibly sit around waiting another 5 minutes just for the order to confirm right?

Luckily, the best solution to this problem is to open a demo account with the broker and given them a test drive. This will allow you to test trial their trading platform’s speed of execution.

5. Minimum Trading Account Size

Nowadays, broker leverages are getting higher and higher to cater for the small retail trader who have limited capital but wants a piece of the Forex action.

Micro and Nano accounts are available but most brokers offer the 2 standard types of trading account sizes, namely the Standard and Mini account.

There key difference between a Standard and Mini account is that a Standard account trades in 100,000 units, while a mini account trades only a tenth of that size, or 10,000 units per lot.

In other words the mini account deals in one tenth the size of the regular account. This allows you to risk a tenth of what you would be risking in the regular account.

6. Margin & Leverage

Margin accounts constitutes the basis framework of Forex trading, so make sure you are fully aware the broker’s margin terms before rushing to open a live trading account, the last thing you want to hear is a margin call from your broker.

Make sure you are fully aware of how your broker calculates the margin requirements and does it change according to the currency pair traded? Is it fixed or variable at different times of the day or week?

Do take note that some brokers offer different margin requirements for Standard and Mini accounts, so beware.

And when it comes to leverage, most traders are familiar with the 1:100 ratio, but are did you know that some currency trading brokers today even offer leverages of up to 1:400.

A word of caution if you are a novice trader, don’t use too much leverage as this is one of the key reasons so many newbie traders get wiped out so fast. Remember, the key to winning the Forex game is to compound small and consistent profits.

7. Rollover Rates

Rollover rates are charges that are incurred when traders move their positions to the following trading day.

If you are a scalper or a day trader, this rate might not affect your trading account but if you are a swing trader or a long term trader, this seemingly small figure might sometimes snowball if you are not aware.

That is why it is important to find out the minimum margin requirements to earn on an over-night position? Is it a mere 0.5% or a staggering 2%, go do the math.

8. Trading Platform

A good trading platform should not only show real live prices that allows traders to “Buy” or “Sell”, but also a host of other features like charting and technical analysis tools.

Some platforms even offer more advanced functions like trailing stops, mobile trading and even the use of automated trading softwares called expert advisers.

Most brokers will have their own proprietary trading platform but many are using the Metatrader 4 platform as it is a fairly easy to use system that can cater to all levels of traders ranging from novices to experts.

In my book, the type of trading platform used can either make trading the Forex market a breeze or a real hassle, so make sure you get a feel of the platform by signing up for a demo account.

9. Technical Support

Typically, the type of support comes in the form of telephony or email support, and even “Live Chat” in some cases.

Since the Forex market is a global 24 hours market, likewise the corresponding support provided by the broker should be 24 hours around the clock as well.

Remember, it might be 3pm in the afternoon for you, but it could also be 3am in the morning for another trader across the globe, so ensure that there will be someone from the broker’s office to pick up the call if something goes wrong.

A essential aspect of support that must be high-lited is the ability to close an “open” position over the telephone in the unfortunate event that your PC stalls or the internet connection fails, beware, anything can happen if Murphy’s Law kicks in.

10. Additional Value Added Services

Most of the better Forex trade brokers offer great value added services in terms of free webinars, technical tools, e-books, articles and even daily market analysis and updates from their own panel of in house consultants.

This might just come in handy if you are the type of trader who trades fundamentals.

Well, that’s my 2 cents worth when it comes to finding reliable Forex trade brokers, hope it provides you sufficient information for a good head start in all your Forex trading ventures.

Have a safe and profitable trading day ahead.

Derrick C.K Lee is an active trader & investor from Singapore with many years of experience trading the financial markets.

Through attending numerous financial trading courses & seminars by big name gurus over the years, he learned how to trade the different financial instruments and found his forte in trading the Forex markets.

Derrick has gained great insights and intimate knowledge of the currency markets through daily fundamental analysis and technical trading.

He has written many articles on Forex trading with a flair for Japanese candlestick charting techniques. He strives to write his articles in a layman style that is easily understood by the novice traders.

Find out how you can learn to successfully trade the Forex markets in a complimentary Free Forex Course [http://www.bestforextrainingcourse.com] conducted in Singapore.

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Trade the News in 2018

If you have been trading the Forex for sometime now, you will realize that price action fluctuates the most usually before and after an economic data release from the world’s major economy such as America, European Union, or Japan. Other times when price action swings in a volatile fashion is during times of political unrest such as the recent Egypt Riot, Greece Fiscal Crisis, or natural disasters as in the case of Japan’s recent massive Tsunami and earthquake off the Northeastern Coast of Sendai.

Whatever the case, staying up to date with current events and being able to interpret them as it relates to the currency market is an important skill that every trader has to develop in order to make sound trading decisions. Because news has such a huge impact to the currency market, sometimes causing pairs to move 60-100 pips in matters of 30 minutes-an hour. Subscribing to a Forex news signal provider can greatly enhance your ability to catch the BIG pips during these massive buy/sell rallies.

Forex News Signal Trading: Where to find them?

If you go to major Forex news services or large popular Forex brokerage, you can usually find a place to subscribe for a Forex news signal trading services for a monthly fee of anywhere $50 and upward. This is beneficial for you as a trader because this allows you to trade along side with a panel of expert analyst as they themselves trade the same recommendation as you and they are working for their company.

How to Trade News Anywhere in the World!

To trade the news, you should go to sites such as Forex factory or any other site that shows the daily, weekly, and monthly economic calender.

The first things you should note for is configuring the time zone to match the time zone you are living in to make sure you are not a few hours behind or few hours ahead when the news get release.

Second thing you should do is pay close attention to the particular countries you are trading your currencies with. In most cases, anything related to America is important because most of the major currencies are pegged to the American dollar as they are the world’s reserve currency therefore whatever the Americans do will have an effect on most currencies on the board.

In recent times, the Chinese economy, now the second largest in the world, surpassing Japan is also becoming very influential in the currency market particularly to commodity resource-based pair such as the Australian dollar or the New Zealand dollar (traders like to call it the kiwi!) Why? because the Chinese are busy buying up the entire world’s resource/commodity in order to fuel their ever growing economy.

When to Trade the News?

There are two key times that trader should be on their screen when an economic news is release. The first is a few hours usually 3-4 hours before the news. Rumour abounds during these times and trader will begin to take sides on a particular currency driving up the prices and creating massive build-up right to the very hour when the news release. After the news get release, two things usually happen.

1) If the news is not what trader has expected, there will be massive sell-off and reversal pattern which completely counters the previous 3-4 hours build up of that trend. These reversal pattern usually last an hour and the currency is back to where it had left off in the previous 3-4 hours before the news started.

2) If the “actual” forecast is in according to the “predicted” forecast, you will usually not see much action as before but rather you will see a consolidation or leveling of the trend on the chart. Sometimes you have to be extremely careful because there is what’s call a”fake sell off.” Basically what happen is the big banks and hedge funds will try to trick theindividual traders by producing a fake reversal pattern only to see a sudden rebound minutes later as the actual trade direction reveals itself.

Yes, welcome to the real world. It’s a dark world out there and this is why the big shark will always swallow up the small fishes.

How you can protect yourself against the big sharks?

By subscribing to a reliable Forex news signal providers, you can follow exactly how professional traders trade the Forex as they are already very familiar with the little tricks that the big sharks try to pull and you will be following the tails of the big sharks instead of going directly into the big sharks’ mouth!!

Nick is a 22 year old Chinese Canadian trader from Hong Kong and he has made a list of the most reliable Forex news trading signal indicators online today that people can use to enhance their trading decisions and profitability.

Grab your FREE recommendation list of Forex Trading Signal Indicators [http://myforexonlinetraining.com/forex-trading-signals] and jump start your FOREX career today!!

Article Source: http://EzineArticles.com/expert/Chun_Tak_Nicholas_Tsoi/227545

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8 Simple Steps to Scalp the Forex Market in 2018

A pure Forex scalper exits a position quickly if the market doesn’t go his way. He will make a number of trades a day, between 10 to a couple hundreds, and he doesn’t hold on to a losing position hoping or praying that it will turn around!

The main aim of the Forex scalper is to buy (or sell) a particular pair of currency at the bid (or ask) price and then quickly sell them a few pips higher (or lower) for a profit. When the Forex scalper uses this strategy, small profits can be easily compound into large gains if a strict exit strategy is used to prevent accumulating large losses.

Most Forex scalper mostly makes use of 1 min, 5 mins or hourly charts to scalp for small profits in the Forex market. Most of the good Forex scalper will choose a brokerage house that provides a reliable platform with instant execution of orders, which is highly crucial to his profits.

I was fortunate enough to know and work with some of the best day traders that scalps for a living. They have shared with me some of the main ingredients, which they use to scalp the market.
In this post, I am going to summarize the scalping strategy which i have incubated, into 8 simple steps;

1st Step

Go to http://www.forexfactory.com to check important data release time

2nd Step

Record the previous day OHLC (Open, High, Low, Close)
for all the 4 major currency in your diary.

3rd Step

Identify candlestick studies(i will reveal more next time) on the daily charts

4th Step

Identify major trendlines, support and resistance on the daily charts

5th Step

Determine the market sentiments (Bullish or Bearish?) for the day.

6th Step

Go to hourly charts and determine the support and resistance

7th Step

Lookout for candlestick (We will talk more about it in our next article) formations on hourly basis.

* For reversal candlestick signal;
– Wait for better signal or staggered your lots
– Enter only near support or resistance level

8th Step

Adjust your risk to entry level when you are 10pips in the money.

* Scalping Risk Reward Ratio
Risk : 10pips
Target Profits : 20pips

I hope you have benefited from my summary above, on the steps to scalp the Forex market. In my next article, I will be focusing more on the Japanese Candlestick Studies.

Hi

Let me give you some history about myself.. I am a 33 year old Singaporean(as of 2009). Who started my trading journey since 2004. Now, I focus mainly in Stock Options, Forex and other Investments. I have started Online Trading FX – a site about trading psychology, Forex trading, investments and other topics that interests me from time to time. I hope to educate and contribute my humble experience and thoughts to everyone out there.

Do find out more in [http://www.onlinetradingfx.com]

Best Regards

Sebastian

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What Is The Best Time To Trade Forex?

Many people know that the most important question you need to ask yourself when you are going to trade Forex is what is the best time to trade Forex? The answer is all to do with stats. If there is a trend then follow the trend and listen to the advice of the experts. If you are waiting for something to increase then you are in the wrong mindset. You need to find the best movers and trade. In terms of what’s the best time to trade in the week there are many different opinions but the majority of people and experts say the best time is mid week, Tuesday, Wednesday and Thursday. This is because the majority of currency pairs reach their highest in the middle of the week.

But an important point to remember is that don’t just trade because someone tells you to, or it looks good because it is a Wednesday, you have to do your own research and look at the stats of the Forex before even thinking about trading. Another interesting point is trade when many big markets are open, not just one. At certain times the American market and the UK market will be open at the same time; this is always a good time to trade. Remember trades online take seconds most are done in under 1 second, so once you have made your decision there is no going back. The UK and US markets account for over half of the total world’s market which means that Forex trading is particularly busy during this time.

Don’t be put off to much by the time to trade. The most important thing to remember is that you should only trade if you feel confident that you will make money on the trade, and get high R.O.I. whether they are high risk or whether they are going to get you high r.o.I. even if they are low risk. You do not need to be overly concerned with the best time to trade Forex, just remember once you have traded there is no going back and sometimes you might make a wrong decision and lose your investment. Another quick point, Forex is investment not gambling so do not invest and hope that a currency will increase/decrease. Use your brain, go with the trend.

In conclusion before investing Forex you need to know the best time to trade, the best times to trade are when multiply markets are open, it is mid week and you feel confident about the stats and where the trend is going. Only then should you invest, you should also understand that if you leave your investment for longer you are more likely to either lose or make a lot more money and get a higher r.o.I.

Building a profitable forex trading strategy can be boiled down to two key factors – knowledge and testing. Visit TomorrowInTrading.com to benefit from expert reviews and gain advice on forex trading systems and forex signals.

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