Tips for Trading the EUR/USD

Some Tips for Trading the EUR/USD currency pair in the forex market

The EUR/USD pair is undoubtedly the most traded and the most important forex currency pair in the world.
Euro and the USD are the official currencies of European Union and the United States – the two largest economies in the world.
Therefore, the importance of this currency pair is paramount. Most forex traders like trading the EUR/USD pair, and earn loads of money or lose a lot.

The most common tips to follow while trading the EUR/USD pair are:

Trade while the U.S and European wession overlap - Forex market never sleeps, and it’s true that you can trade whenever you want to.
However, most of the transactions regarding the EUR/USD pair take place between 8 a.m. to 12 p.m. EST, since both the U.S. and the European markets remain open during this period.
Therefore, prices remain extremely volatile, and that can be utilized to maximize your profits.
The Importance of Asian Session Most forex traders consider the Asian trading hours to be off-hours.
However, recent studies show that a majority of traders, as a result of failing to understand the market sentiment and price action movements, lose money during highly volatile European-American sessions.
Meanwhile, the markets remain relatively calm, and the prices range between the support and resistance levels during the Asian trading sessions.
Therefore, novice traders should utilize this and mitigate their losses.
Use Wider Stops The high volatility of the EUR/USD pair leads to erratic moves in several cases, and trigger the stops placed by you within a short amount of time. However, in most of these cases, the market bounces back, and moves in the opposite direction.
Therefore, you should use wider stops while trading EUR/USD pair only in order to give the trend to play it out. Don’t Be Greedy You should always close the position when the EUR/USD pair reaches a certain price target.
The pair is highly volatile and may turn around, and leave you with a loss, if you don’t close your position at the right time, expecting to win more.
You may close half of your position, and move your stop to breakeven point, so that you’ll profit in any case.
This is called a free trade, and is extremely useful to avoid losses.

Having a Forex trading group

Having a forex trading group is important!
Remember when you were a kid and you wanted to go to the park and play in the sandbox or even as a teenager you wanted to go to the party with your friends?
Well, as humans things don’t really change when we get older and wiser.
If you are planning to start Forex trading in the financial market, it would be wise to be part of a Forex trading group.
There is not one more important thing to have someone by your side to help you with your trading, to guide you and to provide you with some Forex trading usefull tips.
There are several important attributes to belonging to a forex group which includes:

Advice: “Two minds is better than one”; before placing a trade on the forex market, your group will help you understand what they think about your planned trade.
This sort of advice can guide you with your decision making about the trade.
To trade or not to trade.

Learning: eventually your forex group will help you better understand the financial decisions you will have to make as a forex trader which means that in the long run, your forex trading will be clearer and wiser.

Competition: Try to avoid competing with members of your group and instead work together for the benefit of your forex trading community.

Broker: Being part of a forex trading group will help you understand how decision making in this industry is important as previously mentioned, which also includes chosing the forex broker you and your trading group will use as means of placing trades in the market.

If you do not belong to a forex trading group yet, it is time to put your research goggles on and start looking for the community in which to belong to.
There are several secret communities out there which can help you understand the forex trading market to a much higher level.

Trading forex with low leverage

Trading forex with low leverage

The problem of many traders starting to trade in the forex market, is the influences of their forex brokers. One of the first things you will find when you see the standard broker’s website is how incredibly high your leverage is. Do they do it out of the goodness of their hearts or know something that you do not? Think about it.

Although most brokers, through their marketing teams to try and attract traders to trade with as high leverage as possible. Your goal as a trader should be trading with as low leverage as possible. The same way that you do not borrow money from the bank in order to buy a house, unless you really have to.
market volatility
One of the main characteristics of the Forex market is the volatility which increases the risks. The important thing to remember about trading without a high leverage is that the only way you can lose all your money is if the currency pair significantly loses its value. Obviously, the dollar or the euro will always be worth something, so trading in them with low leverage is a pretty safe bet.

 

Simple math dictates that if you trade 40 positions a month with 1:20 leverage and pip’s spread, we talk about spending $ 4000, even before losing one trade. When you apply that to a trader who loses 35% of his trades, which is a very good track record, he will end up losing 14 % of his account. The reason for this is that while leverage is offering profit’s potential it is also slowly drain your trading account .
Besides playing a negative role when it comes to your capital, leverage also causes you to lose focus and get your eyes on the important market analysis. When trading with low leverage, you can always go back and evaluate your performance, and you can rely on entry and exit point’s strategies. High leverage can also steal your ability to trade sensibly and logically.

 

 

 

Best Forex Money Manager tips

Best Forex Money Manager tips

Are you an experienced trader that is looking to manage some Forex funds of others in order to increase your Forex portfolio? The following information will definitely interest you as to why you will need to reconsider this important decision.

When thinking about all the good stuff it can bring to you, know this; a future money manager needs to think about the negative aspects as well and the consequences.

The first rule is to verify the country you are based a money manager in the Forex market needs to hold some sort of license to trade for others. Money managers, make sure that in the case that you do not have a license to trade for other or some sort of money consultant license, you do not do it, even if you are trading with an offshore unregulated broker. The legal authorities will not like it as well as you’re clients.

After finding out this information, as a money manager, you will need to verify the second most important aspect of your future Forex portfolio which is what method will you use for your Forex trading? Will you trade manually or using an Expert Advisor?

Please note that most Forex clients do not like the idea of having an EA trade for them, unless in certain cases, the money manager will be in front of the trading platform constantly to inspect and asses what that EA is doing. This is also called semi EA or semi automatic EA Forex trading (half human and half EA)

The most attractive trading technique on you’re portfolio is the manual money management trading.

Please also consider extremely low risk trading. If you regularly use a 20-30 leverage which is considered extremely high, try to use a leverage of 5 to 8 times lower on your clients money as a money manager.
You can never know what will go wrong as a Forex funds manager.

The money in the Forex portfolio is as important as you’re private funds, so please consider them as your own. Be a responsible Forex funds manager and you will gain the trust of many of your clients to increase your portfolio.

 

Forex Trading strategies

Forex Trading strategies

Forex is a very popular thing nowadays. You can tell as there are thousands of online brokers providing you with the solution to make money sitting at home. It is yet popular among people but yet few have tried trading this market.

The reason for that is most probably that today with a global population of over 7 billion, the increase of poverty and decrease in food supplies, money is not easily gained and people have to sweat in order to retrieve it.

This is why it is important to realize that if you are trying to make that easy money while trading the forex market, be sure that you have the wrong idea. Below are a few tips that will do the trick in the forex market.

This market is volatile, risky and can lead to an incredible loss of money in extreme fast periods of time. Fortunately, if you still are considering entering this market and making the extra buck on the side; well you are at the right place to read on forex trading tricks.

Here you will find the oldest tricks of the forex trading book. Follow these rules and it will spare you losses or at least help prevent them.

Looking at previous articles, trading is a risky business. You need to have the right psychology for it. The following rules will help you increase your odds in the biggest financial market of the world; the currency market aka the forex trading market.

- trick 1- Inspect the market and make your own decisions. Always listen to your feelings and don’t pay attention to other people’s advice regarding which trade to take. A very important trick in the forex trading market.

-trick 2 – Make a trading plan of what you will do if. This is crucial as a forex trick because at first, a forex trader must learn which currency products suit him or her.

-trick 3 -Do not be fooled by early successful results. Never act like you are God in this market as this is precisely the time you can make a decision that will erase all your hard work that you have achieved. Be confident but not arrogant when trading. This trick will reduce your odds at making bad forex decisions

- trick 4 -Take your time. Many traders do not have patience. It is very important in forex to take your time before making decisions.

Happy traders are ones that can respect those rules.
Are you one of them?

Loving Forex trading ? 5 tips to know

Loving Forex trading? 5 tips to know.

Forex trading can become an obsession. The love for money can also become dangerous.
If you are a financial movie fan, you must of watched the movie “Wall Street” where Douglas and Sheen take the stage as the mentor and the student.

Forex trading can become obsessive, and here are a few tips on how to avoid making losses on your forex trading.

Tip 1: A Forex trader needs to be patient with his trading. You must have a forex strategy or something that drives you to open that position on the market. The best method is to re-think this position and try to think why you are planing on trading. A wise man once said “money is a B**ch that never sleep” and that man was Douglas. Michael Douglas is in love with money in that movie. One thing besides his character’s arrogance and alter ego was that he was right about that. Money never sleeps. We are all trading forex to make the big bucks and all of us have that dream of turning that 5k to 100k. Be patient, learn from other’s mistakes and you’ll do just fine.

Tip 2: Risk, is a very dangerous thing that needs to be considered when trading. You need to always, in advance, know what risk you are willing to take on that position.

Tip 3: Profits- a trader must never ever change his profit point. I have seen many friends and big traders changing their “take profit” point. It is almost 99% a losing point when they actually sit in a restaurant or in social place, changing the end point for profits. If you actually think about it, when placing a forex trading position, you have a 50/50 percent chance of profiting from it; having said that, now add -50% when you start playing around with your stop loss or take profit points.
It does not help and is really not recomended for forex trading

Forex Trading Tricks – Part 2

Forex Trading Tricks Part 2 

Have you ever found yourself in a situation where you open a position on the market, and that position goes to your advantage but somehow you end up with less money and the end result of that position is a loss?

Here are a few tricks to consider while trading the forex market.

Tip 1: Try to use an order trade. When you configure a certain price, you will have a much better view of what is going on. A very important trading trick and is to decide how much profit you want to make in advance.

Tip 2: One of the most important trading tip in the forex market follows tip number one. When you place that order and your trade starts making profits, set yourself a certain number of pips profited when the forex position is still running. After you have selected the number of pips, change your stop loss to 0, meaning the entry point of your forex position including the spread which will give you a no risk forex trade. In this forex trading tip, if the forex trade will go back to that stop loss, you will lose 0. Some forex traders ever re-position their stop loss to 1-5$ profit depending on the trade size in the forex market.

Tip 3: Be patient. A good forex trading technique is not to sit in front of the screen to look at the forex market, if you are the type who will be forex trading this way or will stay in front of the PC to look and hope, then chances are you are also the type to start making changes to your trading position. This is not considered wise in the book of forex trading tips. Please avoid that.

Tip 4: When trading, do not, absolutely not go in an all in position, i have seen getting hit with losses not because they were wrong on the direction of the market but they have thought that they can easily make that big winning trade and guess what, market retraced, reached their stop out point or even worse margin call or stop out level and after that went towards their previously anticipated direction. Please try not to start a trade by risking your margin level. Start small and give yourself goals of adding some more every few or a bit more pips.

Follow those forex tips and trading will become simpler for you.

 

Forex tricks of the trade

Forex tricks of the trade

Have you been longing for those Forex pips using tricks? There are many ways to profit from forex while trading Forex using those tricks. At the moment there are thousands of brokers, thousands of trading tricks and thousands of traders that are looking for trading tricks.
Here’s a tip:
When looking for a forex trading trick, be creative, and certainly do not base your trading technique on emotions.
Emotions are the number one cause for people investing a lot of money and that go “all in” on that single position. Well that is the wrong approach. The reason for that is that when you trade on emotions you are bound to lose your funds.
Another tip is when you are trading forex; do not invest small amounts because psychologically you will corner yourself into “blowing up” your investment account based on these tricks What the right thing to do is to set yourself up with a maximum risk, a maximum profit. Hence, you have your results prior to beginning on your account.
Did you know that upon taking a trading position, your odds are 50/50? If you didn’t then this must be because most of the time, you are trading that result in a loss. The reason for those losses is either:
1 – You tend to always change the position size of your trade including increasing your trade volume or decreasing your trade volume
2 – You change your maximum profit and maximum loss constantly. That is the wrong thing to do. The trick is to avoid silly mistakes
3. You expect fast money, and unfortunately this market, like all other means of making money doesn’t happen all the time. Patience is the only things that will help you on your trading so if you aren’t a patient person going into forex, do not waste your money, energy and time. Simply avoid this market.

Forex Trading Tricks

Forex Trading Tricks at its best

Are you still looking for that strategy that will make you the extra money to buy the extra monthly things that never cease to come your way? Are you an experience trader who’s in a rush? This article is to be considered as your bible if you are that type who came here looking for a fast way to increase his or her revenue.
The answer is that cheats in this market as these don’t exist anymore. When online forex was still in development and with the metatrader still having bugs in relations to broker’s liquidity provider, such methods were possible.
Now that the bugs are fixed and the cheat positions are over. The only tricks recommended are mainly patience and using strategies that will allow you not to take big risks. In a way tricks became strategies of the trade. The following are the reason as to why :
Patience: Although at one point in their investment experience or career traders understand that they cannot engage in a big position that can and most probably will result in the loss of their funds. Having said that, traders will decrease their trading position size and engage in smaller and lower risk positions. That same position will have smaller profits as well as smaller losses. This is a key risk that many fail to comply with fully.
Strategies: There are many strategies online that will provide a trader with the knowledge to trade resulting as some sort of trading method. The average trader will have in an instant, mostly prior, during and after opening a position. As coached to many, when taking a position in the forex market, DO NOT change anything about that position. Keep your stop loss as where it was originally placed, keep the position size unchanged (unless you have made minimum 150 pips profits, which in that case you are allowed to open another position with a max size of 60% of the first position you have opened).
Bear in mind that you need to keep it as simple as possible. This includes not listening to anyone and only to you for a start. When a beginner trader engages in this market, he or she will look everywhere to find best results or best advice, this is wrong! Start by small positions, and after you do engage in those positions, leave your computer.
Hedging positions:
As a beginner, try to avoid hedging, it will complicate your life if you do not have the relevant experience.

click for more Forex Trading Tricks.

 

Trade less- earn more in Forex

Trade less- earn more ! 

This article aims to show you why sometimes to trade less is to earn more in Forex.

Traders in the market, tend to take much risk thinking that the higher amount they would endanger would accordingly increase their earning potential.
However, when looking at a series of trades contrary to a one single trade, you can easily understand that this thought is far from being the true.
Illustrative example: lets sat that the initial amount of your trading account is 10000$ and you lost 20% of your balance – now you are left with 8000$, as 1000*(1-0.2)=8000.
You continued to trade and now earned back 20% of your balance.
In such a case you will stay with only 9600$, as 8000*1.2=9600, less than the amount of your initial deposit, and despite the fact that you earned and lost the same percentage exactlly.
The following example illustrates four different scenarios of 50 transactions, in which the same percentage of wining trades:
Trader1 risked during the 50 transactions 1% of the portfolio. Earned – 10.5%
Trader2- risked 2% of the portfolio. Earned – 8.26%
Trader3- risked 3%. Earned – 6.35%
And Trader4- risked 8% t and earned only 3%.
When examining these results, it can be easily seen that the gain decreases as the risk increases.
This is very common situation among traders, and the reason for that is that every big loss puts the trader in a deeper hole, from which it is more difficult to get out from.
Despite of these examples, it would not be correct to say that in every state you must risk minimum amount in order to maximize profits.
The answer regarding the exact percentage one has to risk is very complex and involves mathematical formulas. However, these examples do teach us that a proportionate and controlled risk is necessary in order to receive satisfactory results.

click for more Forex trade information