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Showing posts from April, 2015

The 7 Undeniable Rules Of Forex Trading

Before we go into 7 rules of Forex Trading, that have been approved by a number of full time and successful traders, I’d like to narrate this story.
There was a lion, a donkey and a fox all keen to go out rabbit hunting together. After a productive day of hunting, the three of them sit around the pile of rabbits and the lion asks the Donkey, “Mr Donkey, would you please divide the pile into equal shares for the 3 of us?”. The Donkey obliges and counts the rabbits into three equal piles for each of them. The Lion immediately roared and pounced him. He then piled all the rabbits on top of the donkey and asked the Fox “Mr Fox, would you please divide the rabbits up evenly between us?”. The Fox takes out 1 scrawny rabbit from the pile and puts it in a pile for himself then say “There you go, Mr Lion, that’s your pile” pointing to the large pile of rabbits. The lion says “Mr Fox, where did you learn to divide so equally?” and the fox says “The Donkey taught me.”
The moral of the story is to …

Looking To Jump Into Forex Trading

Those looking to invest their money, for a profit, should check the website, www. forexfreeguide. com for lots of information on the easy way to jump right into the forex trading market. Forex refers to ‘foreign exchange’ market; this is the foreign currency market that big banks and investment companies use to exchange trillions of dollars with each other daily. Its possible to make a profit by exchanging your currency on the market for foreign currency and making the trade back when the foreign currency is worth more compared to the foreign currency you traded for.
On forexfreeguide. com you’ll find lots of information about the forex trading market. The site details the basics of getting started in forex trading for as little as $25, and offers an easy way to sign up for the forex trading platform that this site has a link to. It provides articles that are comprehensive and detailed on reasons to trade forex instead of stocks, broker registries, a day in the life of the forex trader…

Forex Currency Pairs

Forex Currency pairs in Forex trading have been standardized by the IMF. The pairs most commonly traded are:
• EUR/USD, the Euro and the U. S. dollar
• USD/CHF, the U. S. dollar and the Swiss franc (sometimes called “the Swissie”)
• GBP/USD, the pound sterling of Great Britain and the U. S. dollar (sometimes called “the cable”)
• USD/JPY, the U. S. dollar and the Japanese yen
• USD/CAD, the U. S. dollar and the Canadian dollar
• AUD/USD, the Australian dollar and the U. S. dollar
These pairs account for 80% of all trades in the Forex market. They all involve the U. S. dollar, because it’s still the biggest economy in the world and one of the most inviting to trade. But this is also a holdover from the Bretton Woods Accord of 1944, which pegged all currencies to the U. S. dollar as a benchmark. Although the Accord was abandoned in the early 1970s, some of its effects are still evident in the market.
The first currency in the pair is known as the base currency, and it’s the important one. Its v…

4. Learn How You Can Make Gains From Using The Forex Trading Grid Technique

The most important part of how to make money using the no stop, hedged, Forex trading strategy will now be covered. In the preceding articles in this series we reviewed trading without stops, not being concerned about which way the price moves and places to cash in on profitable transactions. We are now going to show how you would make money buying and selling simultaneously using the grid strategy.
The no stop, hedged currency trading grid system uses the rule that one should be able to close a transaction at a gain no matter which way the market moves. The only way this is logically possible is that one would have a buy and a sell transaction active simultaneously. Most traders will say that doing this is not recommended but let’s look at this in more detail.
Assuming a grid with grid gaps of 100 pips. We are going to use the simplest formation to show the principles involved. This formation is the 100% retractment formation where the price goes up to a grid level and then returns bac…