Mar
18
How to gain from Forex trade news?
Filed Under Forex | 5 Comments
Fundamental analysis, technical analysis and news trading are three pillars of forex trading. While the first uses historical data and market sentiment to predict the future, ands the second uses various technical tools (Fibonacci and trend lines) to find out the reversals, news trading banks on economic releases and major news that can bring about a change in the demand/supply balance of a country.
For instance; inflation reports, credit standings are a couple of factors which might affect a country’s economy. It is very important thus to ascertain in which way are the reports flowing.
To gain from the news, you have got to trade quickly. This is because the economic news or release has a very short shelf life. Often it only sustains the momentum for a few hours. This is why it is important to be tied to a broker who can help you find a quick deal. This is more important as there is a great queue and taking a stand on the currency becomes difficult. Look for brokers who have a one-button buy and sell option.
Feb
27
Difference between forex trading and stock trading
Filed Under Forex, Stocks & Trading | 10 Comments
Stock trading ruled the roost till forex trading arrived. Stock trading is practiced over a centralized exchange. Forex trading is performed over both centralized and decentralized exchanges. Both have high volumes but forex trading has today developed into a 300 trillion dollar daily industry.
Stocks plummet or rise a higher percentage of their holding in comparison to currencies. Currencies rarely pass the 1 percent bar whereas stocks can rise or fall as much as 20 percent even naturally without breaking the individual circuit. This is why forex brokers give large leverage spread of as much as 500:1 whereas stocks have margin money of hardly 15:1. Forex traders rely far more heavily on forex robots than stock traders. These are automated programs that place pips without human interference.
Stock trading can be accomplished for a single stock; for instance, Wal-Mart. Forex trading is done for a currency pair; for instance, EUR/USD, you cannot enter a forex trade without a currency pair.
Oct
21
Develop Your Own Forex Trading System
Filed Under Finance General, Forex | Leave a Comment
The Forex traders are always on the lookout for consistent trading profits. Developing your own Forex Trading System is the best way out.
First of all, develop your own time frame. Depending on your own time frame, you will be required to categorize your hour charts. After settling down with a particular time frame, you will then be required to study the given parameters.
Now once you are done with the task of judging the parameters of buy-sell signal system you will have to back test and forward test your system. The only thing that these tasks require is some experience and with time you are bound to strike big.