FOREX TRADING 101 CONTD - forex news trading techniques

FOREX TRADING 101 CONTD ~ forex news trading techniques

in my last posting, I promised to provide answers to some questions. To do this, I will first make an attempt to provide an insight into the reasons why most traders, failed with live accounts. These reasons are: a) Lack of knowledge or understanding of the forex market: Majority of new traders jumped into forex trading without adequate knowledge of how the market works. And it well-known fact that people perish for lack of knowledge. Such traders jumped into forex trading without being equipped with adequate knowledge on how the market works and ended up being swallowed within an instant. If you don’t have enough knowledge on how the market work, never open a live account or only open micro accounts with less that 1o% of the amount you wish to trade with. b) Most new traders think forex market in an avenue to get-rich quickly:Most new traders including this author are attracted to forex because of the misinformation that forex trading is an avenue to make quick money and the ultimate solutions to your financial worries. In fact, I was actually attracted to forex by the information that I can make between 10-30% of my account within 24 hours. How wrong I was! I started trading with the mindset to double my accounts every month. To achieve my target, I overtraded by opening many positions at the same time and whenever the market is in my favour, the reward is usually mind boggling. However, whenever the market turn against me, the consequence are usually disastrous. Most times, after increasing my account by 60% over two weeks or three weeks period, I often ended up blowing such accounts within two to three hours when the tide turned against me. The lesson is you should aim at realistic returns on your investments and increase your returns over time as you acquire knowledge, experience and expertise. c) Under-capitalisation: Most new traders started trader with gross under-capitalisation and ended up being annihilated within seconds. Most people starting with ridiculous low amount of between $100-$500 and expect to turn it into millions within months. How ridiculous! In a market where $1.5 trillion dollars are traded on a daily basis, majority of the traders are small flies capable of being crushed in milliseconds. Forex is business and should be treated as such. My advice is if you don’t have enough capital to start trading, don’t ever dream of opening a live account. The fact that you don’t have capital should not discourage you. For a start you can build your trading capital over time while acquiring skills through demo trading. If you have less than $1,000, don’t ever dream of trading live. d) Lack of trading plan: Most new traders enter trade without adequate trading plan or no plan at all. Such trading is akin to crossing a twenty-lane highway with your eyes close. For such a pedestrian, death is a sure certainty. Plan your trade to the last detail before your entry. Your plan should include, entry point, expected profit and exit point and retreat strategy (stop loss) if things go against you. Stick to this plan because it is your only chance of survival in this high risk endeavour. e) It is not compulsory that you must enter any trade:Most new traders never want to miss any opportunity. No trade opportunity is compulsory as there are many more trade opportunities by the corner. f) Be very sure of the direction of the market before you enter a trade Most inexperienced traders believe that they can predict or anticipate the direction of the market end enter a trade with such erroneous belief. This is usually not the case. Most of them are often fooled by what sideways movements. For moving averages, look for sharp angles and an obvious degree of separation between the two lines to determine upward and downward trend. Once this separation is obvious and a few candles have opened higher than the previous (lower than the previous in the case of a downwards trend) the market has shown its true colors. At this point, you should be looking to pull the trigger. g) Profit should never be your main motive principle Most new and inexperienced traders go into trading thinking that they could begin to make profit instantly. The fact of the matter is that most businesses do not begin to make profit until their fifth anniversary. Furthermore, most financial investments would be rated 1st class if they are able to return between 10-20% annually. In spite of these obvious facts, most traders think they can achieve a return of between 30-100% on a monthly basis. In other to achieve their unrealistic target they gamble away money and ended up being losers. The forex graveyard is full of greedy traders. Please don’t be part of the casuality. Your profit target should be realistic. If you are able to achieve a return of between 2-5% on a monthly basis, you would have outperformed most blue chips investment outfits in the world. As a new trader, fund preservation should be your number first priority and profit distance second. Once you acquire experience, making profit will come naturally. h) Cut your losses and live to fight another day Most new traders hate losing money by closing loosing trades. They often leave such with the expectation that the market will turn around in their favour. The resultant effect is that 40 pips ended ground to 100, 200, 200 and perhaps 1000 pips. The main message is cut your losses and live to fight another day! i) Psychological deficiencies Majority of new traders are psychologically deficient to handle trading live trading. Their trading is guided by inadequate knowledge, greed, desires to get rich quickly amongst others which are perfect recipes for disaster. As a new trader, make your trading as mechanical as possible because you definitely lack the psychological control to handle live trading. Live trading is high pressure game and is not meant for the inexperience and faint-hearted. In my next post I will address how to be a successful trade. Happy reading!

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Can forex trading be taught - trader forex compte demo

Can forex trading be taught ~ trader forex compte demo

This article will not be received well within some quarters. For every forex beginner that reads this, an online forex tutor loses a market. Of course I don’t expect the article to spark the rise of some kind of white handkerchief movement for the recognition of the efforts of the forex tutors. But I do expect some unpleasant emails. Let me begin by noting that it is
possible to learn without going to school. Ever heard of being home schooled? 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. 
Forex can be taught, but only by a gifted few. So far I know only of four real forex tutors. One is Australian, the other three are American. I speak not as a graduate of any of their schools, but as one who has watched their constant analysis of the markets and seen the results of believing in their brand of the forex gospel. New forex traders fall hook, line and sinker for any individual claiming to be knowledgeable about how the forex market operates. If you are not scammed, you will probably get a raw deal. Just because an individual trades successfully does not translate to him being a great tutor. Take for instance your teachers all through your schooling life. Were you never beholden to their knowledge of the subject they taught or lectured? Yet why did your English teacher never publish a great novel, or why did your science lecturer never enroll into a flying school? Most people that score first class grades are not necessarily great teachers. That is why they end up in professions that do not require imparting back knowledge. The point I am tring to put across is that not all successful forex traders can be good forex tutors.

Forex can be taught, but there is no school of accreditation to ensure that you are under the best tutor. There is no syllabus. Only America has a University offering an undergraduate course in forex trading. There are no weekly assessments or end of course exams to test the student on the knowledge acquired. That means that the trading knowledge you acquire as a forex student depends on the whims of your tutor. He will not teach you everything he knows and you will not be in a position to figure out what he has left out because of the lack of source of reference.

Forex can be taught, but it is much wiser to figure it out on your own. Trust me when I say that it is a lot easier and fun figuring it out on your own. A lot of forex tutors divide their courses into beginning level, middle level and advanced level. Most beginners pay more for the advanced level for the only reason that it sounds a little complicated. A lot of that stuff that your tutor calls advanced is actually freely downloadable from a site he will never let you know but one which is always closer to your search engine results. But what even surprises me is when a forex beginner chooses to pay for the beginner level. Type the phrase ‘forex 101’ to any search engine and in a few minutes you will have dozens of materials that are all you need for the so called beginner level. Just analyze the charts on daily basis and in months you will have developed your trading strategy. That is, something that lets you know why to enter a trade, when to enter a trade and why to exit a trade. Back test the strategy and you will be surprised to discover that on average it works well at 70%. You do not need a percentage greater than that to be a profitable trader.

Forex can be taught, but the discipline of trading can never be taught. The forex tutor will rarely stress on the need to keep your emotions on check or on the dictates of money management. Without those two you are headed for a nasty period as a forex trader. Money management in itself is not what many forex beginners want to learn. Most are interested in knowing what the different candlesticks mean and how to execute a trader on the Meta trader 4. That lack of interest, coupled by the fact that the discipline of trading is not something that can be taught even by the most qualified forex tutor, implies that no forex student ever reincarnates into a good trader soon after taking the course. Only you can learn how to control emotions that come about as a result of live trading because you understand the source of your investment and your risk tolerance level. They will teach you the candlesticks but they will never instill the discipline of trading in you.

Forex can be taught, but it instills a sense of false self confidence. Completing a forex course does not mean you will make money on your first trade. Yet is it not true that most forex beginners expect just that? The forex tutorials only serve to nurture false hope and magnify expectations into the realm of the impossible. You paid for a 500 dollar course but you are yet to make even 10 dollars on a single trade? I am not surprised. And you have probably lost more capital because the course you took encouraged you to put more money into your trading account certain that you would double it in a week. Now you must learn that the course you took was only preparatory to the real world of live trading.

Dear aspiring traders, no one has your interest at heart. Your forex tutor is just another businessman. If you are lucky you will pick a thing or two from his tutorials. But you could have gained much more had you chattered the path that most successful forex traders have taken for decades- self tutorials. Ignorance is defeated only through knowledge. The internet age has ensured that no matter where we are, we can always challenge and improve ourselves with the freely available material on the thousands of sites.

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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A Word to the Facebook Junky that Ignores Online Forex Trading ~ forex news trader expert advisor

Let’s face it. We all love tweeting and facebooking. Whether in offices or lecture rooms, we update our facebook status more often than we do our personal diaries. We tell the world of opportunities coming our way even before ascertaining them and the rosy side of our love life. The sad fact is that the world does not care an inch about all that stuff that we keep putting online at the interval of every hour.

But how much do you use when you are logged into that facebook account or tweeting? Statistic has shown that last year alone the East African youths spent a whooping Kshs. 20 billion on facebook and tweeter. You wonder why telecom companies are swiftly upgrading their internet services. They’ve come to the realization that the East African Youths, particularly Kenyans, are facebook junkies.

It is said that better to be a facebook junky than a drug junky. I believe that both forms of addiction are negative and unnecessary. They are a waste of resources and valuable time. The average youth is concerned more about his online image than the actual image of his real life. Where are you headed with that virtual world? Ask yourself, how much of the 20 billion shillings did you contribute and what benefit did you derive from it. With a little stock taking you’ll discover that at the end of every month you are just as wasteful as a drug junky.

I am not decampaigning any social site; my agitation is aimed at showing you a holistic treatment to your online presence that could contribute positively to your livelihood. A lot of youths are busy pouring venom on their own governments for failure to end youth unemployment through facebook posts. Some are busy seeking for nothing but sympathy by telling the world of how they’ve done their best to  graduate from colleges and schools only to add up to the growing statistic of the unemployed. Well, we said earlier that no body cares about that stuff and at the end of the day you are just on your own.

My agony with these youths that complain about unemployment is that they have not realized just how much they could cash in on the many opportunities that come along with their presence online. Most of these youths have even got laptops which makes it all the more easier for them to make money online.

Next time before you update a facebook status complaining about unemployment, ask yourself whether you’ve tried enough in your quest for self sustenance. Government will not call you for a job. It doesn’t even call PHD holders and you wont be an exception. Log out of that facebook page and seek for one of the innumerable opportunities waiting for you online. After that you can only complain about double taxation when money begins flowing your way. Then, we will empathize with you for your hard earned sweat that government still subjects to double taxation regime.

Below is a small piece about online forex trading, one of the avenues through which you could make money online.

Online forex trading is the best place for Kenyans and other East African youths seeking to make money online. The better part of online forex trading is that you are accountable to no one. If you’ve had a long held dream of being self employed then online forex trading is the best deal for you and every other Kenyan youth. The working schedule for the online forex trader is not fixed and that implies that any Kenyan can use his spare time to make money in the online forex market.

 No qualification is required for any Kenyan who wishes to make money trading forex online. Unlike other opportunities that require a certain level of education, online forex trading can be done by any Kenyan with basic education and the ability to read and write. Making money by trading forex online is a technique that can be understood by any body that reads the materials all over the internet in relation to online forex trading.

Kenyans wishing to make money in the online forex market can begin trading as soon as they have mastered a particular trading strategy and have understood the best currency pairs to trade and the best times to trade. In addition to this, for any Kenyan to make money trading forex online, they must understand what leverageis, the advantages of using limit orderssuch as stop loss orders and take profit orders, and the attributes of a good forex broker.

Making money trading forex online is open to all Kenyans and East Africans who are over 18 years. There is need for the aspiring forex trader to have a bank account through which he or she will transact with the forex broker.

The Kenyan wishing to make money online by trading forex must also have a certain degree of computer literacy. This is because most forex brokers use computer software to support their trading stations. The need for a personal computer is necessary but not essential because online forex trading can be conducted through the cyber cafes. For convenience however, and in order to access the services of brokers that send the forex trading software to your desktop, it is advisable that every  Kenyan who is serious about making money while trading forex online should have a personal computer.

The amount that one begins trading with is not fixed. Some brokers permit opening of a micro account with $ 50 while others require $ 200. Aspiring online forex traders should however try and begin with between Kshs. 10 000 and Kshs. 20 000. This is to make sure that in case of a losing trade, the forex trader has another chance to make money on another day.

Online forex trading is not hard and any Kenyan with a passion to hard work and reading will be good at it in a month- at least as far as knowing how to trade a particular strategy is concerned. Demo trading is part and parcel of learning how to trade in the online forex market. The aspiring Kenyan forex trader can also use the simulators to quickly master their forex trading strategy. The good news is that opening a Demo account or trading using a simulator is absolutely free.

Forex trading is fun and can solely sustain your livelihood if you’ve got the skill and discipline of trading. Skill can be acquired within a month, but discipline is a combination of many factors and is what destroys most of the new traders in the forex market.

Before you begin online forex trading, you should understand the following:

·         Risk Reward Ratio in online forex trading

·         Lot Size and Position Size in online forex trading

·         Margin and Leverage in online forex trading

·         Money Management in online forex trading

·         Limit Orders in online forex trading

·         A forex trading strategy

If you’ve mastered the above aspects of the online forex market, then you are ready to make money as a successful forex trader.
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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A beginners guide on What is forex - forex options trading demo account

A beginners guide on What is forex ~ forex options trading demo account

Forex is the world’s most traded market characterized by high liquidity and the ability to transact on leverage or borrowed money that is used to increase the value of a position which would otherwise be valueless. It is attractive to most players who come in both for short term or long term speculation. The forex turnover is placed at about US$4 trillion per day. That is what makes it so lucrative and a pulling magnet for those desirous of quick returns. There are a lot of things concerning forex that one needs to know, either as a by the way or by having a mastery before starting on the journey of trading on a real money funded account.

The trading hours

The forex market operates 24 hours a day for five days a week. You can open and close a position between Monday and Friday at either profit or loss. Most trading happens between the period when the London Stock Exchange and the New York Stock Exchange are open. The overlap between the New York and London sessions is normally for about 4 hours. This overlap is regarded as the noisy and high volatility session due to the fact that London and New York constitute the largest trading volume. The Asian Session is regarded as the less noisy session as it is characterized by few data coming out. Data refers to the economic news that affects the movement of currency pairs depending on its level of significance. The Asian session overlaps with the London session for about an hour.

The major market players

The major players in the trading of forex are large institutions such as banks and hedge funds. This is the group that determines currency volatility. It explains why during public holidays in major world economies the markets rarely move. Institutional traders account for the biggest buyers and sellers of currencies online and in its ranks includes both long term and short term trading experts. There are also retail traders and that is where most individual traders fall in. Retail traders are short term investors with a small sized portfolio compared to the banks. Most retail traders hold micro accounts, mini accounts or standard accounts. The standard account is the best place to belong if you consider yourself a professional trader within the retail hierarchy. However it is better to practice through a micro or mini account before funding a standardized account. Incubating an account from micro to mini to standard is probably what you should aspire to achieve when you begin live trading.

The chart system

In forex traders mainly look at charts to make their trading decisions on whether to buy, sell or stay out altogether. The forex chart system includes line charts, bar charts or candlestick charts. All these types of charts reveal the market movements but the candlestick chart reveals the most information that enable good decision making when contemplating to either enter or exit a trade.

Below are the three chart types on the EURUSD weekly timeframe

The line chart

The bar chart

The candlestick chart

Candlesticks are an advanced charting system and every trader must master how to interpret them in order to trade successfully.

The timeframes

Forex can be traded in timeframes as low as the one minute to the monthly timeframe. The timeframe you choose is determined by your style of trading. If you are a scalper, that is a trader who hopes to take very many trades within every few minutes then you will probably prefer the one to fifteen minute chart timeframe as compared to the daily to the monthly chart timeframe. On the other hand, if you seek to hold your trades for longer periods exceeding a few days or weeks then the higher timeframes should be your preserve. Forex beginners tend to blow up their capital trading the lower timeframes with the twisted logic that it is the way to make more money. But the few that gain ground are those that discover very early in the day that one correct trade in the higher timeframes is better than too many trades taken in the lower timeframes. The higher timeframes for those with the mastery is like a diamond mine that never gets depleted.

The  EURUSD one minute timeframe chart

The EURUSD monthly timeframe chart

Note that in above EURUSD charts, the monthly chart has more relevant information for the trader compared to the one minute timeframe chart. Whereas you can not tell where the exact trend for the EURUSD pair is on the one minute chart, it takes less that a second to realize that the trend is down when you look at the monthly chart timeframe.

The trading platform

Forex is traded either on a trade station provided by a forex broker or on a meta trader 4. Trade stations are customized depending on the broker you have opened an account with. The universal trading platform is however the Meta trader 4 that is provided by nearly all forex brokers around the world. The Meta trader 4 has functionalities that enable you to control the risk amount per trade. These include control tabs like the entry and exit button, the trailing stop and the stop loss button and the take profit button. The problem with the trailing stop on the meta trader 4 is that it only trails your profits when you are logged onto the internet. That is one great advantage that the trade stations customized by brokers have over it.

The forex broker

The brokers are mostly market makers. This means that they are always trading against you. They do this because it is the only way that you can get to enter  a trade on time. So that if you buy the EURUSD pair from them, they must respond when you decide to sell. They have liquidity providers which feed them with every move you see on your charts. You’ll notice that if your broker is a bank the execution will be faster than when using the typical market maker. Make sure you use a regulated broker. Avoid brokers that are non regulated and who work under white labels. These are mostly retail brokers who cant pay and wont pay any claim. They are scammers in other words. We have recommended trusted huge and trusted brokers in articles such as why you should be trading with more than oneforex broker.

The costs you pay for entering a trade

Normally you pay your broker something called the spread. It is the amount the broker charges you for entering a trade and it does not matter that the trade closes in profits or loses. The spread is paid immediately you enter a trade. That is why if you take a trade today you will notice that your account will be on the negative until after a few moves. The spread for the major currencies is lower compared to those of the cross currencies. You also pay the broker the roll over fees. This is fees paid if you hold a trade overnight to another trading day. Depending on the currency pair you are trading and whether you have bought or sold, there are occasions when the broker pays you for every trade held overnight.

How much money should you start trading with?

This depends on your level of experience. There is no one size fits all in this regard. It also depends on how risk averse you are. Where are you getting your trading capital and how will your life be if you lose. One thing I can say for certain is that your trading capital cannot be a loan or house rent or your children’s education fund.you can start with US$ 100. That is not bad. Some people start even with US$ 10 and manage to build it up. We have a nice article relating to the amount of money top open a forex account with. It is titled how much money should one start tradingwith? You should read it. We have argued in that article that you don’t have to be rich to trade forex. At the end of the day money management is what counts. Open a trading account with NORDfx and trade both forex and binary options for only 10 dollars. 

How to fund your forex trading account

There are many ways to use while funding your trading account. We have written a lot on this subject on articles such as howto fund your forex account and why you should not fund your trading account byway of a debit card. If you read any of those two articles you will know why we recommend faster ways of funding an account. The wire transfer method is safe, but it is not fast and at times leads to double bank charges. The cost is even high if you hold a trading account that is in denomination that is different to your bank’s currency denomination. If you want to deposit by wire transfer, your forex broker will give you details about the ban account to send the money to. Credit cards and debit cards are faster but when they get lost it can lead to unnecessary headache. If you read those articles you will find out why we approve of Neteller.

Can it be taught?

Forex trading can be taught but only by the experts. We have written on this subject- please read can forex trading be taught? and whyforex in the books is a falacy? These two articles go deeper into what you should look out for when seeking out for a forex tutor. Our take on this issue is that even though forex trading can be taught you are better off mastering it by yourself. You are your best tutor when it comes to learning how to trade forex. Remember that you do not need any academic qualifications to trade the markets. Most of forex is just pure common sense. Read you do not need a universitydegree to trade the forex market.

The advantage

The advantages that come with trading forex are immense. With great experience you can turn it into your sole source of livelihood. People make thousands of dollars per trade per day. It is a kind of work that relieves you from the duty calls associated with the traditional jobs that over time turn you into a whimp of routine.  You are your own employer and you trade when when it suits you. And by the way you don’t have to resign your current job to trade forex. With a nice trading idea all you need is a few minutes every day to check how your open positions are holding. If you choose to open a trading agency then that is a different story. You might need to be present at your station for the better part of the day to serve your clients. If you don’t know the meaning of some of the words that I am using here then you should read forex jagons for the forex beginner.

The disadvantage

The forex market is unforgiving to those who don’t know what they are doing. Don’t come and try guessing with the markets. You can lose your entire investment in minutes if you are not familiar with the correct trading hours and the all important aspect of money management. Another disadvantage with forex is that because of its high profitability, it has attracted very many scammers clothed either as professional traders or forex brokers. To help you be on the look out we wrote six tips on how to avoid a bad forex broker and how forexbrokers are turning the trading of forex into a scam.

Conclusion

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Why has Google Adsense rejected my 27 000 words Blog - forex trading news channel

Why has Google Adsense rejected my 27 000 words Blog ~ forex trading news channel

Someone better take cover. I’m spitting venom today. This article will surely turn me into a deadly snake whose head must be crushed- by Google of course. You the reader, may actually find no reason to harm me- because I’m almost certain that our plight is similar. And in case you do, then you obviously are stuck in a bubble where reality passes you by- holding onto the misconception

that you’ll make money online using blogger.

Maybe I should state from the onset that I’m not in dire need of money as I write this. Nor I’m I in need of any vindication from those in the business of making money online. I was actually idling on the sofa set when I thought of my other now “dormant blog”. Dormant not because I’m yet to start blogging (the blog has 27 articles each containing over 1000 words and records over 100 page views daily) but because Google is just yet to be convinced that my adsense account is ready for activation. And so it seems that I cannot make money online with a 27,000 worded blog.

What does Google really want? Is anyone making money online using blogger? Blogger being a Google brainchild, I would suppose that Google would be at the forefront in offering some form of encouragement to those that actually manage to generate pageviews without a custom domain. I had long thought that making money online was all about pageviews and content. Yet Google seems so much removed from the aspirations of those that use the blogger service and obey its code to the latter. Many sites that provide tips on how to make money online have put a spell upon anybody who blogs using blogger- the common narrative is that there can be no online success in writing for money using blogger unless you go professional by getting a custom domain. Google seems to be covertly sending the same message to anyone attempting to make money online using blogger. The disdain with which Google has treated those trying to make money online using blogger supports this assertion.

When you begin blogging for money, the common mantra is always- content is king. It is a tired phrase repeated by all those sites promoting the idea of how to make money online. So you write in the hope that soon when you’ve gathered enough content you’ll be making money online. You write day and night with all the SEO requirements in mind. You then apply for an adsense account- and that’s the point at which the reality sinks in. you won’t make money online using blogger. Google will never activate your adsense account if you are using blogger no matter the content size on your blog.  Google has turned the rider, ‘get a custom domain to make money online’ into a powerful sad reality; all with its contempt towards those using its service in the honest belief that it’s all they need to make money online.

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