Converting Profits and Losses in Pips to USD - forex trading apple mac

Converting Profits and Losses in Pips to USD ~ forex trading apple mac

3-Converting Profits and Losses in Pips to USD

To calculate your profits and losses in pips to your native currency, you must convert the pip value to your native currency. The following calculations will be shown using USD as an example.

When you close a trade, the profit or loss is initially expressed in the pip value of the quoted currency. To determine the total profit or loss, you must multiply the pip difference between the open price and closing price by the number of units of currency traded. This yields the total pip difference between the opening and closing transaction.

If the pip value is USD, then the profit or loss is expressed in USD, but if USD is the base currency, then the pip value must be converted to USD, which can be found by dividing the total pip profit or loss by the conversion rate.

Example—Converting Pip Values to USD.

You buy 10,000 Canadian dollars with USD, with conversion rate USD/CAD = 1.100. Subsequently, you sell your Canadian dollars for 1.1200, yielding a profit of 200 pips in Canadian dollars. Because USD is the base currency, you can get the value in USD by dividing the value by the exit price of 1.12.

10,000 CAD x 200 pips = 2,000,000 pips total. Since 2,000,000 = 200 Canadian dollars, your profit in USD is 200/1.12 = 178.57 USD.

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What are you doing with your online forex profits - automated forex news trading

What are you doing with your online forex profits ~ automated forex news trading

Death is inevitable yet it is uncertain when it comes. A lot of Kenyans have invested in the online forex market and a good number of them receive their daily bread from online forex trading. But what really happens to our investment as forex traders when we die? Who takes away the trading capital in our forex accounts when we die? Could it bethe forex broker? Probably, I’m not certain.

The truth of the matter is that when we die, unless we brought somebody to the knowledge of our forex investment and returns therein, there is no way to know who actually takes away our forex trading capital. As Kenyans we work hard in all our endeavors and it is a sad fact that when we die everything we’ve done to make our online forex accounts profitable and the entire forex capital therein remains with some other person. Even if the forex broker provides us with some little assurance that our families may claim on our behalf, there is just no mechanism to make sure that everything in our online forex account reach those that we prefer when we die.

There are a million and one ways through which any Kenyan can meet his or her death. Terrorist attacks are on the rise, road carnage is spiraling up and even stray bullets once a while picks on the innocent. Unless you are diagnosed with a terminal illness like cancer, no Kenyan ever gives much thought to the advantage of writing and leaving back a will. Most Kenyans die intestate hence depriving their dependents the enjoyment of their investment whether it derives from the online forex market or any other source.

Below are some of the things that any Kenyan engaged in online forex trading can do to minimize the dangers of losing everything in their forex accounts when they die.

Withdraw the profits you make in online forex trading

Unless your forex trading account is so small, there is really no need for any Kenyan to put all their money in the online forex trading account. As a successful online forex trader, you will make profits through winner trades and it is important that you withdraw your profits to improve your standard of living. Do not let the money you are not using to trade forex to lie idly with your forex broker in your online forex trading account.

Every Kenyan with a sizable forex account and with a successful forex trading history should therefore withdraw the profits they gain from online forex trading. This withdrawal could happen at the end of every month or as frequently as you may agree with your forex broker. Only your trading capital should be available in your forex trading account.

With an unexpected death, the effect of a sudden death will not deprive entirely your Kenyan family or any other dependents from enjoying your investment in the online forex market. The process of proving death of any Kenyan to an online forex broker based in London or New York can be tedious and a discouragement. There are legal issues involved such as getting probate. The cost of recovering the forex investment could in the end be higher than the amount in the online forex account. You see, online forex brokers don’t provide certificates like share certificates issued by listed companies. With a share certificate it is easier to ascertain the benefit or loss of going after the investment. This form of certainty is not available in an online forex trading setup.

Inform a family member or a close friend of your online forex investment

The dangers of being secretive is that you go into your grave with a lot of information. In a way it affects your legacy negatively because you leave nothing for those that come after you. Your absence is no longer felt and even if others might term your departure as a terrible loss, they really don’t mean it. All Kenyans engaged in online forex trading must inform a close family member or friend of their investment. It becomes easy to know where to start from if some information is left behind. Let a family member know the online forex broker you are using, the amount of forex capital in your forex account and how long you have been trading in the forex market. This is a simple safeguard requiring no legal formality. It simply involves opening up to a trusted family member or Kenyan friend. Open up to avoid the dangers of living your entire forex investment to the moles.

Write a will

A will should be written by every Kenyan. The agony you cause your family and dependents when you die without leaving a will are far greater than the agony caused by your death. Make a will and let it speak for you after you are gone. The will keeps your authority, it controls the excesses of greed by dishonest family members, keeps the family united and positively impacts on your legacy. Include your online forex trading account in the will. Give the details of your forex broker. You could even provide your forex trading name and account password in the will. Keep the will with a lawyer or someone you trust. It will be a life well lived.

Safety measures are necessary because we are never sure of when we may breathe our last. Every Kenyan with an investment in the online forex market should adopt one of the above safety measures. They are all simple things to do and involve little or no money. The concept of being too secretive is born out of individualism and personal greed. You will not trade forex in your grave.
You do not need huge capital to start trading. Open a trading account with NORDfx and trade both forex and binary options for only 10 dollars. 

Call us today on 0725 050 419 for the best forex trading orientation.

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How to avoid making psychological mistakes while currency trading - trading forex dengan news

How to avoid making psychological mistakes while currency trading ~ trading forex dengan news

Amelie Gam is an Internet writer for Forex Trading Plus. She just wrote an interesting article on psychological aspect of currency trading.

According to Amelie, a trader exposes himself/herself to the higher risk of loss when he or she :

- doesnt control human emotions;

- acts upon fear or hope without basing own feelings on real facts;

- exploits other people’s human emotions (people who are constant in their mistakes can not gain success and earn money);

- is not disciplined, doesnt make plans, doesnt follow strategies, doesnt apply mathematical and money management principles;

- doesnt run only profitable trades and doesnt try to cut losses as fast as possible;

- uses rumors and advice without being certain of their authenticity and quality.

To be successful you have to think independently of the majority and stick out from the crowd. Currency trading is safer than other trading methods, but if you want to have an edge over other competitors than try to be wise and research first, study other people’s behavior and choose from them only the best.

You can read Amelies whole article "To Be or Not to Be a Psychological Currency Trader" at http://ezinearticles.com

Stan
Technorati tags: forex, forex trading, forex system, forex strategy
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Forex Trading Incorporating Price Behavior into a Forex Trading System - forex day trading news

Forex Trading Incorporating Price Behavior into a Forex Trading System ~ forex day trading news

By Raul Lopez

Trading the Forex market has became very popular in the last few years. But how difficult is it to achieve success in the Forex trading arena? Or let me rephrase this question, how many traders achieve consistent profitable results trading the Forex market? Unfortunately very few, only 5% of traders achieve this goal. One of the main reasons of this is because Forex traders focus in the wrong information to make their trading decisions and totally forget about the most important factor: Price behavior.

Most Forex trading systems are made off technical indicators (a moving average (MA) crossover, overbought/oversold conditions in an oscillator, etc.) but what are technical indicators? They are just a series of data points plotted in a chart; these points are derived from a mathematical formula applied to the price of any given currency pair. In other words, it is a chart of price plotted in a different way that helps us see other aspects of price.

There is an important implication on this definition of technical indicators. The fact that the readings obtained from them are based on price action. Take for instance a long MA crossover signal, the price has gone up enough to make the short period MA crossover the long period MA generating a long signal. Most traders see it as “the MA crossover made the price go up,” but it happened the other way around, the MA crossover signal occurred because the price went up. Where I’m trying to get here is that at the end, price behavior dictates how an indicator will act, and this should be taken into consideration on any trading decision made.

Trading decisions based on technical indicators without taking price action into consideration will give us less accurate results. For example, again a long signal generated by a MA crossover as the market approaches an important resistance level. If the price suddenly starts to bounce back off that important level there is no point on taking this signal, price action is telling us the market doesn’t want to go up. Most of the time, under this circumstances, the market will continue to fall down, disregarding the MA crossover.

Don’t get me wrong here, technical indicators are a very important aspect of trading. They help us see certain conditions that are otherwise difficult to see by watching pure price action. But when it comes to pull the trigger, price action incorporation into our Forex trading system will definitely put the odds in our favor, it will generate higher probability trades.

How to create a perfect Forex trading system? First of all, you need to make sure your trading system fits your trading personality; otherwise you will find it hard to follow it. Every trader has different needs and goals, thus there is no system that perfectly fits all traders. You need to make your own research on various trading styles and technical indicators until you find a concept that perfectly works for you. Make sure you know the nature of whatever technical indicator used.

Second, incorporate price action into your system. So you only take long signals if the price behavior tells you the market wants to go up, and short signals if the market gives you indication that it will go down.

Third, and most importantly, you need to have the discipline to follow your Forex trading system rigorously. Try it first on a demo account, then move on to a small account and finally when feeling comfortably and being consistent profitable apply your system in a regular account.

About the author:
Raul Lopez is a full time Forex trader and founder of http://www.straightforex.com/ a Forex training company.

Article Source: http://EzineArticles.com/

Technorati tags: forex, forex trading, forex system, forex strategy
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Why Kenya’s Makmende would be a bad Forex Trader - forex and dailyfx trading news

Why Kenya’s Makmende would be a bad Forex Trader ~ forex and dailyfx trading news

Kenya’s fictional hero, Makmende, can bring a moving train to a stop. Nothing stops him, he stops everything. Makmende is void of hesitation because he does not know fear. He has more lives than a cat. He is full of admirable strength. Makmende is Kenya’s hero in times of adversity. He can find the terrorist bomber and stop a flood.

But can Makmende fare well in the online forex market? His strength and character may tempt us to answer in the affirmative. But with a deeper understanding as to how the online forex market operates, any keen forex trader would answer in the negative. I highly doubt, whether, despite his innumerable strength and courage, Makmende would get a job as a hedge fund manager even if he had the best book qualification.

The online forex market has no regard to the strong or the week. The forex market has no sympathy to the week and it pays no respect to the strong. In the forex market everyone has the potential of being both a victor and a victim. Pro forex traders are not necessarily men and women of giant physique who take no nonsense. Neither is the struggling forex trader an emaciated little being living by the mercy of others.

The reason why Makmende would be a bad online forex trader is less to do with his physique and much to do with his character. Character plays a greater role in determining the level of our success in the online forex market. Character is never taught, it is the result of acquired habit depending on the nature of the environment. Makmende leaves in a Kenyan environment in which you often meet more than your own share of troubles and in which only the strong survive.

Unfortunately, in the online forex market, strength that is devoid of wisdom can destroy a forex trader. You must have the strength to execute a trade knowing at the back of your mind that it may be a loser or winner in the end. But you must also have the ability to choose only the best forex trading set ups. The size of your brain or body will be of no value if you fool yourself into believing that the online forex market will have regard to your physique. Your stop loss will be hit over and over until you get the discipline of successful forex trading.

Below are some reasons as to why Kenya’s Makmende would be a bad online forex trader.

Adrenalin Junky

An adrenalin junky does not know fear. He has little regard to the traps placed before him. Yet the forex market is a constant beehive of traps that stings whoever has no sixth sense or third eye on how to trade the forex market. Your adrenalin will serve you best at the battlefield but there is no need for it in the forex market. You cannot execute trades simply because you feel courageous enough to do so. There must be justifiable and sufficient reasons behind every forex trade you take.

Your adrenalin may drive you into overleveraging, but it cannot prevent you from the reactionary effects of an overleveraged forex trade. The adrenalin may push you into overtrading, but it may not insulate you from the grave dangers of overtrading in the forex market. Preserve your adrenalin for over things like approaching women. Online forex trading requires only pure wisdom behind every trade you execute.

Brains not Brawls

The single most prized possession in online forex trading is your brain. Use your brain to hunt for the good forex trading setups; use your brain to determine the best risk reward and the best leverage. Whoever masters how to use his brain first, has accomplished half of everything that there is to know in the forex market.

The brawls are left for the adrenalin junky like Makmende. Approaching the forex market with your brawls alone is an attempt at bulldozing the forex market which is simply impossible. The online forex market has no feelings- you won’t get a chance of throwing punches at it. Forex trading won’t stop simply because you approached the market with your brawls, leveraged your whole account, and lost all your forex capital in the process. The forex market cares less about how much of life’s adversaries you’ve overcome. It won’t care that your entire life savings is at risk. Use your brain then and avoid an early and sad exit from the forex market.

Sadly enough, for Makmende, he is an adrenalin junky who relies more on his brawls and little on his brains. He lacks the most important prerequisite to successful forex trading. the reason is because adrenalin junks are dispossessed of patience and as a result they mostly trade the lower timeframes in the forex market. They have the brawls to take the trade setups in the lower timeframes that are nothing but a trap from which to come out, they must lose part or all of their forex trading capital.

Are you possessing any of Makmende’s disastrous characters? If your answer is in the affirmative, then avoid the forex market as you would a scourge. Otherwise, you might end up a worse than you were on your first day of trading forex. Losses in the forex market are inevitable. And the market has little regard to your temperament, strength or physique. Whoever thinks that the three aspects are essential is simply deluded and the clock is ticking for the end of his days as a forex trader. Know yourself and trade forex successfully.

You do not need huge capital to start trading. Open a trading account with NORDfx and trade both forex and binary options for only 10 dollars.
Call us today on 0725 050 419 for the best forex trading orientation.

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