Jene

differences between forex and futures trading, futures traders often find it a natural transition into forex trading. Market liquidity, pricing structure, available leverage and open hours are just some of the differences.

leverage can be lethal. When things go wrong, complete wipe outs are the typical results. And note that I am not saying "If things go wrong..." because at some point, they will!

Money management teaches us how to avoid the costly mistakes done by various new traders. Often they lose the entire amount of investment on the first hand of trade. Psychology is the most important factor to money management in forex no emotional attachment with the money how so ever. This is not very easy but it works successfully. Don’t allow yourself to get emotional on trade which can be an obstacle to trade properly.

a good indepth study by the member. its really a great post and lots of things which we can take as lesson and it would be fruitful for all of us if we can remember some points from this detailed explanation.

It is not a wise decision to run behind any automated system as their is none system who can make you millionaire in just a flash. It is always better to learn the hiccups of the market before getting into it. if still you find yourself in a position of dilemma which way to go then it would be better to choose that path which gives you satisfaction.

Forex options give investors another tool which helps to minimize losses and to raise profits, they are extremely popular at periods of economic reporting. But if the currency underrates the loses of a trader they pay the premium for this option.

Bollinger bands are a chart of three curves drawn in relation to currency pair prices. The band situated in the middle is a measure of the intermediate-term trend and is usually a moving average (MA) that serves as the base for the upper and lower bands. Interval between lower, middle, upper bands is determined by the volatility of the market, normally the same data that were used for the MA. The default parameters are 20 periods and two standard deviations above and below the middle band and of course this may be adjusted if needed.

Well most of the traders have fixed percent to cut their loss at 5 %. If they have $10000 in the account, they would probably take a risk of 5% the maximum loss would be $500. If we are trading one standard lot this would approximately 50 pips. You can also use support and resistance to know better where the specific point of profit is and cut losses.

hi there I have seen my broker avafx has been discussed here and so i thought why not share some more facts of him who don't know much about them. Many traders don't find any dissimilarities between them and rest of the brokers. I don't know about other broker except couple of once I tried before I get involve with avafx no one has given me satisfaction as they have given. Though they are not NFA regulated and believe me they are trying hard to get the approval asap, still i tried and got to really a good broker. Many would have read bad reviews about them and I believe no one is perfect. Some or the other day such thing might happen to me as well but till date they are the complete package and brokers should take lesson from them to improve. What else i can say about them you have to try it by own so see what i mean. trust me go ahead you won't regret.

Basically, the "Pivot Point" is a way for traders to identify situations wherein it signals an entry or an exit of a trade. New York open 7:00 A.M to 4:00 P.M Japanese/Australian open 7:00 P.M to 3:00 A.M London open 3:00 A.M to 11:00 A.M The best time to trade is at the beginning 3.5 hours of starting times, because the major currency pairs tend to move the most in a particular direction normally when there are economic news releases

Many errors can occur when you back test your strategy. Postdictive error is one of them. It is vital to make sure that when you backtest a system that only information that is available in the past at that point in time is used in backtesting. With manual backtesting you can accomplish this quite easily, but with automated backtesting the postdictive error can sneak into your trading system. There are more problems which trader can face during backtesting but it is hard for me to describe all of them in just a single post I will do it if needed. No one strategy is best, no one is worst either. Its trader skill and experience, which make the worst into best and the best into worst.

Hedge funds are also taking a longer time to fill. Hedge fund assets may fall an additional $250 billion, or 21 percent, this year. By seeing this type of statement, don’t you think traders would avoid hedging as much as they can?

There are so many strategies in forex that anyone gets confused which to leave and which to apply. As a beginner, simple forex strategy would be appropriate. Simple trading systems are good for beginners, but will not suit traders that are more experienced.

There are many strategy which can be followed by investors Scalping: Scalping is a trading strategy where trader attempt to make small profits with small price fluctuations, the Scalper will place ten to hundreds trades in a single day because they believed that small moves are easier to trace than larger moves. Momentum This strategy usually involves trading on news releases or finding strong trending moves supported by high volume. One type of momentum trader will buy on news releases and ride a trend until it exhibits signs of reversal.

Forex hedging protects your foreign currency assets and liabilities from adverse moves in foreign currency rates. The hedging practices are under examination as currency volatility threatens profitability. However, those that were bullish on the currency's prospects and locked in hedges at higher rates are now struggling. I think people that did 100 percent hedge have to look deeply at their strategy. Not many brokers allow hedging as most brokers don't like investors who hedge.