Review Category : News

No Excuses on the FX Market

Losing Money in FX

This article looks at the FX trading rule of no excuses and what this means for you.

When you trade on the FX market you need to ensure that you do not make excuses for what is happening.  When you make excuses for bad trades or other losses on the market you are not going to be learning from your mistakes.  It is important that you understand how to implement your no excuses rule and what this means for your trading.  You should also consider how you can rationally determine what is your fault on the market and what is not.

Having a No Excuses Rule

When you set up the trading plan that you need you have to consider having a no excuses rule.  This rule will help you learn from any mistakes that you make on the market.  It is important that you have this rule because there are many traders who have lost everything by not accepting that they did something wrong.

The no excuses rule will cover the losses that you make on the market and any diversions that you take from your trading strategy.  When you place the blame for this on the market or the strategy and the tools you are using you will not hold yourself accountable for the mistakes that you are making.  If you do not hold yourself accountable then you are going to repeat the mistakes and never be able to be completely profitable on the market.

Rationally Determining Who is to Blame for FX Losses

In order to correctly implement your no excuses rule you will need to be able to determine who is at fault and why a loss was made.  The first place to look will be the trading journal that you should be keeping.  The trading journal will cover all aspects of your trades from the analysis you complete to the profits or losses that you have made.

You should regularly review the trading that you have done.  The frequency of the review will vary depending on the type of trading that you are doing.  The more short-term the trading the more often you should be reviewing your trading.

When you review your trading you need to look at the losing trades that you have.  You should also look at the trades where you have made a monetary profit, but have not stuck to your trading strategy.  These are the trades where you are most likely to have made a mistake when you trade.  You need to be open to the fact that you could be to blame for your loss.

If you have made a loss through a diversion in your trading strategy you need to consider why you did not stick to the strategy.  If this is something that regularly occurs you need to determine whether or not the strategy you are using is correct for your trading style.

If you have made a loss through a turn in the market you should not assign it to an unexpected loss.  There are many traders who place any loss they make unto the category of unexpected turn in the market.  Before you do this you need to verify that the movement on the market was unexpected.   If it was not then you have to accept that you did something wrong.

 

Self-Education-Fortune


Get a free Forex PDF PLUS:

  • 14 Video Lessons
  • Free One-on-One Training
  • A 5000$ Training Account
  • In-House Daily Analysis
  • Get FULL ACCESS
Become a forex trader!
Read More →

The Use of Scaling in on the Foreign Exchange Sydney

Foreign Exchange Sydney Scaling In

This article looks at the use of scaling in on the foreign exchange Sydney.

A technique that you can use on the foreign exchange Sydney is scaling in.  This is a rather controversial trading technique that most traders’ state does more harm than anything else.  Of course, there are some traders who have made a profit from the use of scaling in.  This is something that can occur if you use the technique correctly on the foreign exchange Sydney.  It is important that you know what this technique is and how you are going to be able to use it.  You should also consider what could go wrong with this trading technique.

What is Scaling in on the Foreign Exchange Sydney

It is possible to use the scaling in technique when you make a profit and a loss on the market.  The ways that this will work varies depending on the type of trade you are scaling in on.  If you scale in with a winning trade then you are going to add to your trade position to make a larger profit.  If you scale in with a losing trade then you are going to add to your position so that you can make your money back when the trend turns.

The Correct Use of the Technique

If you use scaling in correctly you can increase the profits that you make and ensure that you make a profit with a losing trade.  The key is to know when you should actually be using the technique.  There are times when the losing trade that you are looking at should be closed and you should not be using scaling in.  There are other times when it is too risky to add to your winning trade.

The best way to determine whether or not this technique is the right one to use would be to look at the momentum of the trade position.  When there is momentum left with a winning trade you will still be able to make more money.  However, if the winning trade does not have enough momentum then you stand to lose more than you can gain with scaling in.  If you are looking to use scaling in with a losing trade then you have to consider the momentum of the movement in the loss area.  If there is a lot of momentum then scaling in will only add to your losses.

The Best Options to Choose

Many traders feel that the best option would be to not use scaling in.  What you should be doing is setting your entry and exit points then sticking to them.  If you do not stick to these points then you are going to be trading emotionally.  There are many traders who feel that scaling in is a type of emotional trading.

The reason why traders think this is due to the reasoning behind the technique.  When you scale in on a winning trade you want to make more money which is seen as trading greed.  When you use the technique on a losing trade then you are trading with fear because you are not willing to accept your loss.

 

Self-Education-Fortune


Get a free Forex PDF PLUS:

  • 14 Video Lessons
  • Free One-on-One Training
  • A 5000$ Training Account
  • In-House Daily Analysis
  • Get FULL ACCESS
Become a forex trader!
Read More →

Forex Australia Trading Plan Development Entry And Exit Rules

This article looks the entry and exit rules in your forex Australia trading plan.

Forex Australia Entry and Exit Rules

When you make the decision to enter the forex Australia trading market, you have to develop not only a business plan, but also a trading plan.  This should include details on the currencies you intend trading, the charts you are going to make use, the indicators you will be using and the lot sizes you intend trading and for how long.  You also need to add the rules that will apply to your entry and exit points.

Entry Rules

Depending on your personality type, you may be an aggressive or a conservative trader.  This personality trait is often a factor in the rules you determine for your entry into the market.  Conservative traders often spend too much time confirming all the factors before they enter a trade.  This often makes them miss out on good trading opportunities.  On the other hand, an aggressive trader is often in a hurry to enter the market.  They do not wait for much confirmation to enter.  By determining suitable trade entry rules, you will provide a decisive and consistent manner of entering the market.

Triggers and trade filters go hand in hand when you create entry rules.  The filters identify the conditions that have to be met for an entry point to occur.  A trigger is the point that defines when you can enter a trade.  This may be based on a range of conditions, from particular values to exceeding a price value.  An example of a trade filter is that you set the price level that has been reached or passed and the chart levels that should be present.   Once the conditions have been met, you can start looking for the trigger.  For example, you could set a trigger that a long position should be entered with a stop limit order at a specific price level.

The trigger should specify the order type you will used to enter the trade.  To ensure that you make use of the most appropriate order type, you should be aware of the different types of orders available to you.

Forex Australia Exit Rules

Many people believe that the price you enter a trade at is irrelevant as you can turn it into a profitable by exiting that trade at the right time.  This may seem a bit too simple, but it can work.  The success of your trades is very dependent on the exit points you use.  This means that the trading rules for your exit points are as important as those for your entry points.

You need to define several outcomes and these could include:

  • Your profit target
  • The stop loss levels
  • The trailing stop levels
  • The duration for your order type

You should state the types of exit orders clearly in your trading plan.  For example, you should state your profit target and your stop loss point.  You should take care to cancel remaining orders as you do not want to be caught with an open order a month down the line and it is showing massive losses.

Your trading plan is your guide to success.  It is vital that you implement it accurately and with discipline.

 

Self-Education-Fortune


Get a free Forex PDF PLUS:

  • 14 Video Lessons
  • Free One-on-One Training
  • A 5000$ Training Account
  • In-House Daily Analysis
  • Get FULL ACCESS
Become a forex trader!
Read More →

Using the Forex Brokers Demo Account Correctly

This article looks at the demo accounts that forex brokers offer and how to use it correctly.

Forex Brokers Demo Accounts

Before you trade on the live market you need to use a demo account.  The demo account is a simulation of the market that all forex brokers will offer you.  You should be able to open a demo account without having to commit to anything with the broker.  When you use the demo account you need to ensure that you are using it correctly.  If you do not use the demo account correctly then you are not going to get the full benefit of the experience.

The Use of the Trading Platform

When you first start using the demo account you should get used to the trading platform.  The trading platform that you get with the demo account will be the same as the trading platform that you get with the live account.  Of course, there are some forex brokers that put less effort into the platform that you get with the demo account.  You should consider this when you trade because it could affect the experience that you have with the demo account.

When you get used to the trading platform that comes with the demo account you need to consider how you access the different areas.  It is important that you first consider all the aspects of the trading platform before you start using the demo account.  You should look at how you access the charts and where the different orders can be found.

The Currency Pairs the Forex Brokers Have

When you use your demo account you should only trade with the currency pairs that you will use on the live market.  This means that you should not use any of the other currency pairs that you have access to.  When you use other currency pairs you could be starting a bad habit.  This bad habit will be using the incorrect currency pairs to trade with.

The only time that you should use different currency pairs is when you test which pairs will be ideal for your trading.  There are many trading strategies that of not tell you about the currency pairs that you should be using.  This means that you will have to determine which currency pairs you have to use. This is the only time that you should use more than one currency pair on the demo account.

Sticking to Your Strategy

The demo account not only allows you to test your trading and practice what you need to do.  It will also help you create good trading habits.  One of the good trading habits that you should have is to stick to your trading plan.  When you stick to your trading plan on the demo account you are more likely to stick to your trading plan when you trade live.

Sticking to your trading plan also allows you to determine whether or not the strategy will work.  If the strategy does not work on the demo account then there is a high chance that it will not work on the live market.  When this happens you should consider changing something in the strategy so that it will work on the market.

 

 

Self-Education-Fortune


Get a free Forex PDF PLUS:

  • 14 Video Lessons
  • Free One-on-One Training
  • A 5000$ Training Account
  • In-House Daily Analysis
  • Get FULL ACCESS
Become a forex trader!
Read More →

The Stop and If Touched Forex Orders

This article looks at the difference between the stop and if touched orders.

Forex Orders

Foreign exchange trades are comprised of a series of independent orders used in various combinations.  The majority of forex markets will allow traders to choose the appropriate orders and order combinations depending on the trade being executed.  To be a successful trader you must have a working knowledge of the different types of orders and how to place them.

Placing the forex orders

Traders will generally need to place an order in advance as exchanges process positions in the order that they are placed.  Therefore, by placing an order in advance you can be sure to have your trade executed when the market currency pair is at a beneficial rate.

There are various types of orders available that can be used to place a position in advance.  It is important to know which to use as using the wrong order can be detrimental to your trading. The most well known types of orders are the limit orders, the stop market orders/stop orders, and the stop limit orders.  One should also consider the market if touched and the limit if touched orders, as the limits and stops are not always suitable in certain trades.

The stop market and stop limit orders

The stop limit and stop market orders are generally used when a trader wishes to execute a trade at a specific price and the forex market is not currently trading at that price.  For example, the forex market price is 55.05; a trader may place a stop limit order to buy at 56.00.  If the market price trades at or above 56.00, the order will be executed and filled.

These orders are highly recommended when executing breakout trades.  This is where a trader wants their order executed if the market moves past a particular price.

One difficulty associated with the stop market and stop limit orders is that they are only effective when the market price is on the correct side of the order, which is generally below the market price.  If the market is trading above the price then neither the stop market or stop limit will be beneficial.

The market if touched and limit if touched orders

The market if touched and limit if touched orders are similar to the stop market and stop limit orders, however they are used when a market is trading on the opposite of the specified order price.  For example, if the current market price is 63.25, the trader may set a stop limit order at 63.00.  If the market trades at or below the limit order price, the order will be triggered and filled.

The market if touched and limit if touched work in the opposite direction.  For example, if the trade is to be purchased at 75.00 and the market is trading at below this price, then a stop order would be suitable.  However, if the market is trading above the 75.00 price an if touched order would be the best option.

The type of order is best used as a bounce trade.  This means that the trader wants their trade executed, but only if the market trades back to a certain price.

 

Self-Education-Fortune


Get a free Forex PDF PLUS:

  • 14 Video Lessons
  • Free One-on-One Training
  • A 5000$ Training Account
  • In-House Daily Analysis
  • Get FULL ACCESS
Become a forex trader!
Read More →

Future of the Dollar as Reserve Currency in Doubt

currency

The US dollar has long enjoyed its position as the unrivalled world reserve currency in the forex market and such status provides lots of perks for its home nation.

However, although the US dollar is not yet in immediate danger, there is an increasing body of opinion which is suggesting that its future as king of the currency world may be in jeopardy.

A shift on the horizon

At the moment, the US is holding on to its crown as the world’s reserve currency and indeed, 60% of all transactions carried out in the forex market are completed in US dollars. But there is a growing discontent with the status quo and more and more countries as well as international organisations are starting to think it’s time for a change.

Part of the reason is the shift in the global economy. The US is no longer the single superpower that it was in the past. By 2016 China is forecast to equal the US economy and by 2040, one economist has predicted it will grow to three times the size of the US.
Little wonder then that some of the countries who have been the victim of the US dollar are starting to take steps to move away.

Bilateral trade agreements

One of the major ways in which some countries are preparing to decrease their reliance on the US dollar is by setting up bilateral trade agreements with other countries.

For example, China and Russia have set up an agreement which will see all trade carried out with each other conducted in their own currencies rather than the US dollar. China and Japan also are putting together a new bilateral agreement while in Africa, the use of the Chinese renminbi is starting to increase in popularity.
Even international organisations such as the IMF and the United Nations believe that it is now time to create a new world reserve currency and pull away from using the US dollar.

What this could mean

Whilst the situation is still some way off, if the predictions come true and the US dollar is dropped as the world reserve currency, there will be a significant fall out in the US.

Interest rates and inflation will rise, commodities such as petrol will become more expensive and the nation will find it is more costly to service its debts.

No-one is suggesting the US dollar is going to fall overnight, but some experts have pointed to various signs that the tide is turning and that America may not be able to hold on to its comfortable position at the top of the currency pile for too much longer.

 

 

Self-Education-Fortune


Get a free Forex PDF PLUS:

  • 14 Video Lessons
  • Free One-on-One Training
  • A 5000$ Training Account
  • In-House Daily Analysis
  • Get FULL ACCESS
Become a forex trader!
Read More →

What Are The Most Popular Currencies And Why?

currencies

There’s no doubt that forex is one of the most popular trading markets in the world, with trillions of pounds being traded in a wide variety of currencies every single day. We take a look at what the four most popular currencies are and try to explain what their appeal is.

The US Dollar.

The single most traded currency in the world, the US Dollar (USD) owes much of its popularity to the fact that it is paired with every other major currency, acts as an unofficial reserve currency and is held by almost every investment institution and central bank around the globe. Additionally, because it is so widely accepted, the USD is often used as an official currency in some countries, rather than a local currency. This is a process called dollarization. The dollar is also accepted as an informal currency in some nations who will take payment in dollars while maintaining their local currency. Furthermore, many countries choose to peg or fix their forex rates to the USD in order to achieve stability within their exchange rates ? this is called benchmarking or target rating.

Lastly, the dollar is the main currency for commodities such as oil and gold, which fluctuate in price due to the effect of supply and demand together with the price of the USD. This is further affected by inflation and interest rates.

The Euro.

The Euro (EUR) was first introduced on 1 January 1999 and quickly became the second most popular currency after the USD, making it the second biggest reserve currency in the world. As well as being the official currency of most countries in the Eurozone, many countries in other parts of Europe and Africa fix their currencies to the Euro in order to give stability to their exchange rate. A trusted and popular currency because of the liquidity it adds to pairs, is it also highly politicised, which can lead to large forex volumes being traded at any one time.

The Japanese Yen.

Asia’s most popular currency, the Japanese Yen (JPY) can be said to reflect the economic health of not only Japan, but also South Korea, Thailand and Singapore, amongst others. It is the third most popular forex currency and commonly used as an additional reserve currency. Because of Japan’s record-breaking zero percent interest rate over recent years, fx traders have been able to take advantage of low borrowing rates in order to trade in high-yielding currencies.

The Great British Pound.

The Great British Pound (GBP) is also referred to as Pound Sterling and is the fourth most popular fx currency. Because of its high value relative to other world-wide currencies, it is also regarded as a reserve currency. The GBP’s strength is based on Britain’s economic and political stability and it is a significant currency standard for global fx traders, being seen as an extremely liquid element of the market.

 

 

 

 

Self-Education-Fortune


Get a free Forex PDF PLUS:

  • 14 Video Lessons
  • Free One-on-One Training
  • A 5000$ Training Account
  • In-House Daily Analysis
  • Get FULL ACCESS
Become a forex trader!
Read More →

UK and FX Market

FX

Some would argue that Britain has been holding back for too long when it comes to building bridges with China. However Chancellor, George Osborne, argues that he instead sees London at the forefront of the race to become the worldwide fx hub for the yuan or renminbi (RMB) the Chinese currency – and that it is a key priority for future generations of Britons.
Talking to the BBC, Mr Osborne admitted that the UK had been slow when it comes to dealing with China although the Chancellor was quick to point the blame at the previous government. He believes that little has been done in the past ten to fifteen years and too much reliance has been placed on Europe. However since he has been in post, rebalancing the economy and approaching the Asian giant has become his personal mission.

FX Trade volumes increasing

Although trade between the two countries has increased in the last three years, the UK still sells far less to China than it buys. China is one of the three top contributors to the FX trade deficit in the UK. The Chancellor commented that he believes within his lifetime the Chinese currency will be viewed in the same light as the US dollar. Furthermore he asserts that the move will benefit the whole of the UK – not just the capital, helping to further develop the financial services industry.

This is an interesting twist in the currency markets and definitely a step forward for the normally tightly controlled Chinese currency, which is not traded freely at the moment. Hong Kong is currently the only place outside of China able to do so under a scheme entitled the RMB Qualified Foreign Institutional Investor. If the agreement with the UK went ahead, entry to this scheme would mean that Britain would then be able to invest up to 80 billion directly into China using the RMB currency.

London at the forefront of the financial markets

London’s position as one of the main players in the global fx market makes the importance of attracting the Chinese currency clear. At some point it could then be feasible that the currency of the world’s second largest nation would begin to try to rival the currency of the world’s largest nation.

The question remains however, will the Chinese be willing to let another country become an international centre for its currency when it is also promoting Shanghai as its financial hub? Only time will tell what will happen within the FX market.

 

Self-Education-Fortune


Get a free Forex PDF PLUS:

  • 14 Video Lessons
  • Free One-on-One Training
  • A 5000$ Training Account
  • In-House Daily Analysis
  • Get FULL ACCESS
Become a forex trader!
Read More →

Understanding Your Tools – Forex Charts

Forex charts

One of the most important things a trader can do when they are looking to become more effective and more profitable traders is to understand what the available tools are and how to use them. Forex charts are just one of the many tools that are available to traders. It is one of the best tools for increasing profit and making your entire training strategy more effective.

Forex Charts and Content

Forex charts contain a great deal of information. It is one reason why they are just great tools and are essential to any trader. They can help you become a more successful trader by helping you to become more effective. The more successful transactions you have the greater your chance for profit and that is the entire purpose of making use of this type of data gathering and presentation.

Forex charts contain a great deal of information in a small amount of space. Every single mark on a chart is going to contain multiple pieces of data. The only singularity in a chart is the fact that they are generally limited to a single pairing. This makes it easy for you to separate the data you want from data that is not relevant to what you are doing.

Most Forex charts contain the following information. They will contain information on the direction the market is moving. Is the currency strengthening its position or is it losing value? What does the spread look like? This is just a small amount of the data that can be presented on a chart.

Forex Charts – Using the Data

Knowing what the data is, is only the first step. You also need to understand how to use the data that is being given to you in the various charts. You need to be able to recognise the various methods used to present data and then you need to know what to do with the data in order to be the most effective trader that you can be on the foreign exchange.

The first step to accomplishing this initial goal is to understand the information being presented to you in the chart. You need to understand what a trend is, what devaluation is, and what strengthening is. You also need to understand about terms such as spread, asking and bid price if you are going to make the most of the data being presented.

Forex charts are valuable tools. If you know how to use them correctly they can be invaluable tools. However, they can also be horribly confusing if you do not have a fundamental understanding of what you are looking at when you look at the charts. You also need to understand that this data is only one part of the information you need. You also need to be able to mix this information with other information such as that obtained from fundamental analysis in order to be able to create the perfect combination for strategies. Strategies are what help all Forex traders make use of the accumulated data and formulate methods for increasing profit.

 

Self-Education-Fortune


Get a free Forex PDF PLUS:

  • 14 Video Lessons
  • Free One-on-One Training
  • A 5000$ Training Account
  • In-House Daily Analysis
  • Get FULL ACCESS
Become a forex trader!
Read More →

Forex Training Programmes: Market Research

Forex training

In a world where data is readily available on just about every subject you can think of it is important to make the information you are offering unique. This is what you use to draw in your customers and Forex training programmes are no different from any other course. You need to have something unique and you need to present it in a unique way if you want to draw in prospective traders.

The first step to doing this is research. No one can make a successful product without doing a little research. You want to know the materials you are planning to present in your Forex training programme but you also want to have a feel for the audience you are going to be presenting this material to. You want to know what they are looking for in a training course.

Questions to Ask

The first step is to create a list of questions. What types of things do you need to know? For example, you may want to consider questions that ask about the type of information people are looking for or concerns they might have with the various aspect of Forex trading. There are plenty of questions to ask, and coming up with a survey or a poll and looking at the answers you get can go a long way to making it possible for you to be able to create a Forex training programme that is going to appeal to potential students.

Beginners for example, may want to have a section that deals with terminology and a section that deals with the possible pitfalls. There may be people who want to know about how to avoid failing on the market and tricks to figuring out how the market is going to move. When it comes to Forex training, there are plenty of things to cover. That is why it is important to have a good understanding of what it is the students who are going to be attending your course or purchasing your training programme are going to be interested in.

Setting up the Programme

One of the biggest problems that Forex training programmes can have is the fact that there is a great deal of information available and that the information needs to be presented in such a way that everyone is going to be able to understand it and that it is going to form a linear thought progression.

Each of the aspects of the programme needs to have enough information to get people started and provide everything in a systematic formula that is easy to understand and follow. It can be difficult to create this type of programme, which is why the research is so essential. You need to know what to present and you need to know how to present it. This is how you create a programme that is going to be valuable enough to purchase. People want something that is easy to understand, easy to follow and is going to provide them with the information they need.

 

Self-Education-Fortune


Get a free Forex PDF PLUS:

  • 14 Video Lessons
  • Free One-on-One Training
  • A 5000$ Training Account
  • In-House Daily Analysis
  • Get FULL ACCESS
Become a forex trader!
Read More →
Free PDF and UNLOCK website features