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.

Every investment mistakes are because of basic misunderstanding of stock market and by untrue performance expectations. The market moves is totally unpredictable.

OANDA had no problems at all. Trades are always quick to fill, never gotten a requote, and there are no problems withdrawing funds. No slippage, excellent customer service, Good spread, good lot size etc are impressive.

Forex trading styles are base on two main fields of studies: technical analysis and fundamental analysis. For better understanding, you must be well aware of both style feature and characteristics. Forex trading style must be base on the Candlesticks, you must look out for a hammer, doji, head and shoulders pattern, 1-2-3 formation, double top or bottom etc.

first tell me what was your way of getting the information is it through net or you have read some forex related books. If you have collected information through books than it is all right but if have taken the information through net than to got you read some books in forex. Read........Robert Dorfman's Hedge Fund Trading Secrets Revealed, which was fantastic,..I learned so much…. Jim Cramers's Confessions of a Street Addict(written before he got super famous) and Richard Arms’ Stop and Make Money: How To Profit in the Stock Market Using Volume and Stop Orders. All 3 are fascinating and very informative and gave me info on how all this stuff works…

with hundred brains you will have hundred suggestions. All stock charts or indicator providers are there to stay long so they won't provide you the delayed charts and indicators as they won't like to drop a client. every business works for the betterment of customers as customers are the core base of ant\y business. so the bottom line which i would like to mention is charts and indicators are only tools which predicts the market movement but there is every possibility that they can move against the prediction so for that reason you must be too smart to handle such situation....

This uptrend support line extends from the second test of the 87.00 double-bottom, which occurred in January, and essentially defines the uptrend that has been in place since price surpassed the double-bottom peak around 94.60.

many times i have realized traders are unable to discriminate between which brokers type would be great for them. ECN or market markers. Pros of market makers I Generally have free charting software and news feed. II. Prices can be "smoother" and less volatile than ECN prices. III. Have a user-friendly trading and analysis interface. Pros of ECNs I. Generally better bid/ask prices since they come from several sources. II. Variable spreads between bid and ask or might give no spread or tiny spreads at times. III. ECN, not be trading against you but will pass orders to a bank or another customer on the other end of the transaction.

Well there is no specific definition about capital requires to start forex trading. it differs from person to person and most importantly it depends mostly on the amount of preparation they have. if a person is having suitable amount of preparation can start with decent amount but this case can't be applicable to those traders who have just started knowing what is forex is all about.