FOREX Trading Tip – Use Leading indicators For Greater Profits Here’s How

Many traders like to buy dips to support or sell into resistance but this simply ensures they lose.

This FOREX trading tips is all about using leading indicators to confirm a move, rather than simply assuming support and resistance will hold.

Let’s look at it in more detail.

Buying Into Support and Sell Into Resistance.

You hear this tip all the time, but it doesn’t make money.

It is based on the old saying “buy low sell high” which is another phrase that won’t make you money.

If you buy into support or sell into resistance then the logic is that you will have low risk and high reward if the levels hold.

The important word here is “if”

If you trade FOREX then you don’t want to rely on “if” and hope – you want indicators that will increase the odds of these levels holding and your chances of making a profit.

If a price is speeding toward support or resistance then it will break as often as it holds, you therefore need to watch for changes in price momentum and that’s where leading indicators can help.

Getting the odds in your favor

If you want to buy support and sell resistance and get the odds in your favor do use the following FOREX tip.

You can use lagging indicators as well as trend lines in FX trading to denote areas of support and resistance and the ones we like are:

Bollinger bands and moving averages.

These indicaotrs like trend lines should NOT be used to enter trades.

When buying dips to support or into selling resistance, you want confirmation that the levels are going to hold – before prices reach these levels you want confirmation of the turn in advance.

When price momentum turns above support or below resistance you can enter with increased odds of success.

The best timing indicator by far is the stochastic.

Look it up and learn all about it as it’s a great under used tool.

Another great indicator is the Relative strength Index RSI.

Combine the two and watch for confirmation on both and you have a powerful combination you can use to increase your odds of success.

They will give advance warning of a change in price momentum at support and resistance and when they turn in your favor you can enter the trade.

You don’t predict with the above.

You act on confirmation and this will increase the odds dramatically in your favor and increase your overall profitability.

This FOREX tip is obvious, but it’s surprising how many traders simply hope a level holds rather than looking for confirmation

Don’t make the same mistake always act on confirmation when trading FOREX.



Source by Sacha Tarkovsky

The Idiot’s Guide To The Best Forex Trading Education Secrets

Individual traders can earn substantial profits on the Forex market. Through research, effort and following good advice, someone can make a good return on their investment. When learning the basics of Forex trading, an investor must be able to draw on the experiences of other traders. This article offers a number of useful tips and guidelines for Forex trading education.

Track financial news daily to keep tabs on the currencies you are trading. Speculation is the name of the game, and the news media has a lot to do with that. Try setting up a system that will send you a text when something happens in the markets you’re involved in.

If you’re new to Forex trading, one thing you want to keep in mind is to avoid trading on what’s called a “thin market.” Thin markets are those with little in the way of public interest.

Sometimes changing your stop loss point before it is triggered can actually lose your money than if you hadn’t touched it. Just stick to the plan you made in the beginning to do better.

When people first start in the Forex markets, they often let their greed blind them, resulting in losses. Other emotions to control include panic and fear. All your trades should be made with your head and not your heart.

Research the broker you are going to use so you can protect your investment. Pick a broker that has a good track record and has been at it for five years.

Never let emotion rule your strategy when you fail or succeed in a trade. Vengeance and greed are terrible allies in Forex. You need to keep a cool head when you are trading with Forex, you can lose a lot of money if you make rash decisions.

Automated Forex programs and eBooks detailing fool-proof systems are not worth your money. Nearly all products like these give you an untested and unproven program. Ultimately, the only people involved in these transactions who end up any richer are the sellers. Instead of wasting money on possibly dubious products, spend that initial amount of money on a Forex trader who can teach you what you need to know.

As mentioned in the beginning of this article, information and advice from experienced traders is important for new and less experienced traders. The great advice in this article can benefit anyone who wants to learn more about Forex trading. A trader who is willing to put in the effort in Forex trading education and listen to advice can reap huge rewards.



Source by Greg Bukkosi

Forex Trading Education: Things You Should Know About Forex Trading

How difficult is it to make money trading the Forex market? How much time does it take to actually be able to make a living trading the Forex market? These and other important aspects of trading are to be discussed in this article.

Trading the Forex market has many benefits over other financial markets, among the most important are: superior liquidity, 24hrs market, better execution, and others. Traders and investor see the Forex market as a new speculation or diversifying opportunity because of these benefits. Does this mean that it is easy to make money trading the Forex Market? Not at all.

Forex brokers agree that 90% of traders end up losing money, 5% of traders end up at break even and only 5% of them achieve consistent profitable results. With these statistics shown, I don't consider trading to be an easy task. But, is it harder to master any other endeavor? I don't think so, consider musicians, writers, or even other businesses, the success rates are about the same, there are a whole bunch of them who never got to the top.

Now that we know it is not easy to achieve consistent profitable results, a must question would be, Why is it that some traders succeed while others fail to trade successfully in the Forex market? There is no hard answer to this question, or a recipe to follow to achieve consistent profitable results. What we do know is that traders that reach the top think different. That's right, they don't follow the crowd, they are an independent part of the crowd.

A few things that separate the top traders from the rest are:

Education: They are very well educated in the matter; they have chosen to learn every single and important aspect of trading. The best traders know that every trade is a learning experience. They approach the Forex market with humility, otherwise the market will prove them wrong.

Forex trading system: Top traders have a Forex trading system. They have the discipline to follow it rigorously, because they know that only the trades that are signaled by their system have a greater rate of success.

Price behavior: They have incorporated price behavior into their trading systems. They know price action has the last word.

Money management: Avoiding the risk of ruin is a primary subject to the best traders. After all, you cannot succeed without funds in your trading account.

Trading psychology: They are aware of every psychological issue that affects the decisions made by traders. They have accepted the fact that every individual trade has two probable results, not just the winning side.

These are, among others, the most important factors that influence the success rate of Forex traders.

We know now that it is not easy to make money trading the Forex market, but it is possible. We also discussed the most important factors that influence the rate of success of Forex traders. But, how much time does it take to have consistent profitable results? It is different from trader to trader. For some, it could take a life time, and still don't get the desired results, for some others, a few years are enough to get consistent profitable results. The answer to this question may vary, but what I want to make clear here is that trading successfully is a process, it's not something you can do in a short period of time.

Trading successfully is no easy task; It is a process and could take years to achieve the desired results. There are a few things though every trader should take in consideration that could accelerate the process: having a trading system, using money management, education, being aware of psychological issues, discipline to follow your trading system and your trading plan, and others.

Useful Ideas For Learning Forex Trading

Many traders make careless decisions when they start making money based upon greed and excitement. Consequently, not having enough confidence can also cause you to lose money. Work hard to maintain control of your emotions and only act once you have all of the facts – never act based on your feelings.

As shown in the beginning of this article, there is a huge opportunity for success for Forex traders. While learning, you will need all the reliable information that you can get to avoid any problems. Use the advice in this article to keep you out of trouble, while you are learning.

The best advice to a trader on the Forex market is not to quit. You will undoubtedly run into a rough patch eventually, but don't let it get you down. What differentiates profitable traders from unprofitable ones is hard work and perseverance. Sometimes it is hard to see around corners, but even the darkest of situations can turn around.

With this knowledge you can be more confident entering the Forex Robots market. You know much more than you did before. Hopefully you have found the tips in this article useful and were able to use them to get you started trading on the Forex market. Before long, you will be trading as a professional.

Consider other traders' advice, but don't substitute their judgment for your own. It is important to listen to the opinions of others and consider them, but ultimately you should make the decisions regarding your investments.

Never pick a time-frame in which to trade that will not work for you. You must be attentive to your Forex and should never do it when you do not have the time to spend. This is when mistakes are made.

Does currency trading sound interesting to you? Now is the best time to do it! While you may wonder how to get started, you shouldn't; this article will provide you with all the necessary information. Here are some great tips for your Forex goals.

Supplemental income can help make ends meet in tough economic times. Millions of people want financial relief. If you have been thinking that Forex may be the way to supplement your income, here are some things you should know first.

It may seem like it is you against the world sometimes when it comes to dealing with Forex trading. With the vast amount of information available online, it can be nearly overwhelming at first. This article will provide much helpful information for you to get started on the right path.

Network with other Forex traders. By joining some Forex Trading Forums , you can start to have discussions with other Forex traders who can share expertise, tips and tricks with you. Make sure that you do not waste other people time by asking questions that could be answered by conducting a simple internet search.

Don't think that you're going to go into Forex trading without any knowledge or experience and immediately see the profits rolling in. You are not going to become an expert trader overnight. The chances that you will accidentally stumble upon a previously unknown, yet winning trading technique are minuscule. Know best practices and use them.

The wise trader has a plan in place before he or she gets into the Forex market. Codifying expectations can help the trader determine whether or not they are getting what they want out of the Forex market. With a pre-set goal, a well-prepared trader can better determine if their efforts on Forex are effective or not.

A great tip for Forex trading is to work smart, not hard. To be successful at trading you need to be able to make the right decisions at the right time. It isn't about how hard you work or how many hours you put in.

When investing using Forex you should not use any money that is part of your typical budget. The last thing you want is to end up in the red when you are intending to invest and make some sort of profit. This will ensure that you can never lose, and can only gain.

If you are interested in finding new ways to invest some extra money you may have, consider the Forex market. There are many available charts, news and research websites that can offer tips and tutorials on how to get started, and invest successfully. Speculating on the fluctuation of foreign currencies can be very profitable.

Learn the difference between gambling and trading, to protect yourself. The Forex market can be dangerous for those with predilections towards gambling and addictive behavior. Learn the warning signs of a gambling problem like mood swings, obsession with the market and an inability to control your behavior. If you see these patterns stop trading and get some help.



Source by Artur Aghajanyan

Forex Education – Forex Software Or a Trading Course, Which is the Best Option For You?

If you want some help with your Forex education the two most popular ways traders seek help in making profits is – either to buy a Forex robot or use a Forex course but which method is the best for you, lets find out.

Forex robots are popular because they offer you the potential to make big gains with, low risk and no effort and there also very cheap with the majority costing just a hundred dollars or so the problem is though – they don't work.

Anyone who thinks that by spending a hundred dollars or so they can get a huge income for life is naive. If these systems worked, no one would work for a living and everyone would be a trader but the reality is the only person who makes a regular income, is the person selling the system.

So can a Forex Course help you succeed?

The answer is yes because they are teaching you the skills you need to win in a market where 95% of all traders lose money. While of course you have to do some study and work, the rewards for your effort can be life changing.

The best courses come from traders who give you proven strategies to use and all the logic behind them so you can trade with confidence and discipline. Furthermore, they will show the strategy and how effective it is by trading it live in daily updates so you can see how much profit it makes.

All the best courses come with money back guarantees, so if you don't like the strategy or feel FX trading is not for you, you get your money back which allows you to learn Forex with no risk.

If you are serious about making money, forget about get rich software and make an effort and learn the skills you need to win and to do this quickly and risk free, the best Forex courses offer you a great route to currency trading success.

Forex Education – 5 Common Trading Mistakes You Must Avoid Or You Will Lose!

Enclosed in this article you will find some common trading mistakes which you must make a part of your essential Forex education or you will lose and lose quickly.

Let’s start with how many traders lose money and its 95% and that’s a big majority! This leads us to our first point which most trades ignore and try and get rich quick.

1. Forex Trading is Easy

Forex trading is not easy and you wouldn’t expect it to be with the rewards on offer. If you want to win, you need to learn skills and this leads me to the next fact about Forex trading and its:

2. Forex Robots and Expert Advisors will Make You Rich

All the cheap, get rich quick Forex software you see sold online will lose you money. These systems offer you financial freedom for paying out a couple of hundred of dollars or less but if they worked 95% of traders wouldn’t lose. They are sold so cheaply because they simply don’t work.

3. Effort or Intelligence Leads to Success

This is a common mistake to make, because you rewarded for these traits in society but you don’t get rewarded for them in Forex trading. You are only rewarded for the accuracy of your trading signal, it can take you 5 hours or 5 minutes it doesn’t matter how long it takes, profits are all that count. You don’t need to work hard or be smart, just get the right education and mindset and trading should take you just 30 minutes a day or less.

4. Forex Price Movement can be Predicted

No they can’t and if they could there would be no market as we would all know the price ahead of time, markets move on uncertainty not certainty. If try and predict you are hoping or guessing and that won’t make you money, so simply trade the reality of price change and you will have the odds on your side.

5. Not Trading with Discipline

This is something the vast majority of traders do and it leads to a wipeout of equity. If you cannot trade your system with discipline you simply don’t have one.

You are going to lose for long periods, all traders do and you must keep your losses small in these periods and take them cheerfully. If you get frustrated and angry like most traders, you will start to run losses and that ends in disaster you need to stay on course until you hit a home run.

How to Win at Forex Trading

The above are all common mistakes and you need to avoid them and if you do and get a solid Forex education, you could soon be making some great profits, in 30 minutes a day or less.

Forex Education For Beginners – Best Practices Explained

Forex has a bad reputation among some traders as a kind of online gambling scheme where the house (the brokers) makes money, while you lose just about everything that you risk. No doubt, this has been the case for many traders, but forex itself isn't the cause of this low success rate – it is a lack of understanding and knowledge that has doomed so many traders to failure. As with any business, trading currencies requires knowledge and patience to deliver its returns. To acquire the knowledge, and gain experience, you must study hard, but given how much useless information there is online on forex trading, the question of who to ask and where to seek acquires a critical nature.

Ultimately, the best forex education for beginners is practicing in the heat of the action without risking much. Since forex is about probabilities, no textbook on golden rules can provide us the foolproof blueprint for a constantly successful trading strategy. Most successful and experienced traders admit that knowing what not to do is just as important, if not more important than knowing what to do in the world of forex. And on the list of lessons on forbidden practices, emotional trading is the first item.

To avoid the dangers of trading too much, and to prevent your feelings from making your trading choices, you must get the best forex education. You can't open a door without a key, and the key to riches in forex is study. There have been traders who failed in spite of a good education, but there will never be anyone who succeeds without learning and studies. So make sure that you arm yourself with the best knowledge available on currency trading.

Forex Education – Bollinger Bands Can Give You a Huge Trading Edge Here's Why

One of the critical pieces of forex education for any Forex trader is to understand the concept of standard deviation of price and how to use volatility to their advantage.

If you understand the concept you can easily apply it with Bollinger bands which are an essential tool for all forex traders.

Let's look at why Bollinger Bands are so useful and profitable, when incorporated in your Forex Strategy.

If you don't know what standard deviation is simply check our article on the concept – right, let's take a look at Bollinger bands.

Bollinger Bands Defined

Bollinger bands are simply volatility bands drawn either side of a moving average.

You calculate Bollinger bands using the standard deviation of price over the same period as moving averages the mean price, then the volatility bands are plotted above and below the moving average.

Moving averages are used to identify the underlying trend of currencies and Bollinger bands take this one step further by:

Combining the moving average of the currency with the volatility of the individual market (or the standard deviation) – this then creates a trading envelope – with a middle mean price (moving average and 2 x bands (expanding or contracting) either side that reflect volatility or standard deviation.

As prices move away from the longer-term average, the standard deviation rises – and thus the bands will fluctuate in varying amounts, away from the average.

Why they work

In any market, the value of a currency traded tends to rise slowly over the longer term.

Prices can and do spike quickly in the short term, but will normally return to the longer term moving average – which represents fair value.

The standard deviation of the outer bands (how far they are from the mean) shows how far prices are from longer-term value.

Most price spikes are caused by trader psychology with greed and fear to the fore and this can be graphically seen with Bollinger bands.

So how should you use Bollinger bands?

There are 3 main ways to use them.

1. Spotting price spikes

When the bands are a long way from the mean you can use Bollinger bands as profit taking signal on existing trades or use them to spot contrary trades.

2. Enter exisiting trends

If you have a good trend in the forex markets then you can use dips to the middle band to buy at fair value.

3. Entering new trends

When prices are trading in tight range and start to breakout with a change in volatility a great new trend could be emerging.

Bollinger bands can certainly give you a new dimension to your forex trading strategy and any currency trading system can benefit from the extra insight that they can give you.

A word of warning

Like all technical indicators you should not use Bollinger bands in isolation to enter trades, however combined with timing indicators such as, the stochastic or RSI, then you have a powerful combination for greater FX profits.

With regard to forex education, knowing what standard deviation is and how to apply the concept through Bollinger Bands, will give you a huge trading edge, so make sure you use them.

Forex Education – Prerequisite for Beginners Before Trading

Forex education is always a prerequisite for anyone who is interested to start Forex Trading. Forex Trading may look simple on its skin, but when you look deep into its body it is often a complicated one. If you want to succeed as a Good Professional, then it is wise to have some Basic knowledge on Forex Trading. basically requires 3 attributes in you. These are Courage, Analytical Mind and Knowledge. Anyone who wants to do and in case does not posses these attributes by default, he can gain these attributes during his training and education. Before stepping in the real forex world, it is imperative to go through the forex demo, which will help the individuals in understanding the mechanism of trading at the Forex Market.

Online forex courses:

Many Forex Trading Courses are available online. But before enrolling yourself for a Course, it is necessary to know the Overview of the Course. A good Course is the one which teaches you right from the Definition, Introduction and Working of. The course should also cover basic concepts like Market Trends, Money Management, Forex Indicators, and Data Analysis etc. From Online Courses you will be able to learn how to minimize risks and develop a good trading strategy. Online Courses provides you Flexibility over time. Hence many Forex Trading Beginners opt for these online courses. In order to get an insight into, you can read Books by Specialists. They will act as a guide in your Voyage of Forex Trading. There are plenty of such books available which are written by Forex Trading Specialists.

Demo account:

Once you have required knowledge to put your feet on, it is not necessary for you to directly enter into the Forex Trading World at once. You can always test your knowledge and expertise in through forex demo. This Demo account will enable you to practice Forex Trading Virtually. You need to invest by using your Virtual Money. Demo Account brings you a step closer to the Environment. By using a Demo account you can get familiar with the Trading platform. Next you can learn how to execute a trade, have a feel of profit and loss scenarios on a real time basis.

You can apply all the knowledge you have acquired during forex education and see if the trading strategy proves fruitful. The Demo account also has its own set of disadvantages. But these disadvantages are over come by the fact that the Demo Account provides you basic practical knowledge in Forex Trading which is valuable for any beginner. Hence, all the beginners who look out for trading at the forex exchange must opt ​​for training and education so that they are well aware of the fundamentals and mechanisms of trading.

3 Tips On Becoming A Forex Millionaire in 14 Months Starting With Only $100!

You must be dreaming of becoming a Forex millionaire. Many new traders dream of becoming a Forex millionaire within one to two years but give up after a few months when they lose their hard earned money. The problem is most of them don’t have a trading plan. Well, if you sincerely follow the following trading plan, you can also become a Forex millionaire.

Becoming A Forex Millionaire Tip#1

First educate yourself about Forex trading. Most of the info is freely available online. Choose a Forex trading system that you think suits your personality and style. This Forex trading system should have a 60 days money back guarantee. This way, you can try that system and if it doesn’t work, you can get a refund. The right choice of your trading system is very important. You don’t need to rush. Read about the different Forex systems that are being sold in the market. Make a list of at least 3 best Forex systems. Make sure the Forex systems are easy to trade and don’t take more than 3-4 hours daily to trade.

Becoming A Forex Millionaire Tip#2

Test the best Forex system in your opinion on your demo account for one month. If you find the system difficult to trade, go for a refund. Choose the second Forex system in your list. After testing or two systems, you will find the system that works for you on the demo account and makes 100% return per month. Once, you have mastered the system on your demo account, it is time to trade live.

Becoming A Forex Millionaire Tip#3

Now, we are not going to trade live on a standard account right away. What we will do is deposit $100 into a micro account and trade micro lots with that system. Your aim should be to achieve a return of 100% or more every month. When you trade on a micro lot, 1 pip is equal to 10 cents. So, losing 10 pips means losing $1. However, if you lose 10 pips on a standard lot, you lost $100 plus you need at least $1000-$2000 to trade with a standard lot.

What we will do is try to double that $100 in one month. This means making a return of at least 100% in one month. Losing 100 pips on a micro account means only losing $10. So, you are safe when you trade on a micro account. Test a system on the micro account and if it doesn’t make 100% return per month, get a refund and try the second best system in your list.

Once, you find the system that makes 100% return on your micro account, it will make your $100 into $200 by the end of second month and that $200 into $400 by the end of the third month.

Now you need to switch to a mini account as you want your trading risk to become more realistic. 1 pip on a mini account is equal to $1. With that same trading system now turn that $400 into $800 by the end of the fourth month and that $800 into $1,600 by the end of the fifth month.

Don’t rush. These five months are going to teach you a lot on how the Forex markets change and how your trading system performs when the market conditions change and you will also know whether your broker is good or not, what leverage to use and how to manage the risk. Now, you got $1,600 in your account, you can switch to your standard account and start making 100% return per month or more. Do the maths, you will be a millionaire within the next 6 months.



Source by Ahmad A Hassam