Understanding The Forex Market

Let me start by telling you the characteristics of a successful trader.Adequate trading knowledge and understanding.You should seek services of good quality mentors and a trading coach.
Adequate capitalization,don't be fooled that you can earn thousands every week for doing nothing.Set realistic goals,don't expect too much profit each month.If only you have 150-320 pips in my own opinion is very very ok.Have patience,don't trade if you don't have to.You should wait for a set-up according to your trading plan and system.Have discipline to follow your rules.And lastly and most importantly is having a Trading System and a Trading Plan virtually 90% of traders don't have!If you read advices from the world's most successful people or traders today,you will notice that they follow the guidelines i have identified above so let's start step by step.
Adequate Capital:Find an excellent trading platform that has an excellent customer service.You can easily open an account with just $100.
Set Realistic Goals:For a mini account could turn to $400-$600 in the first month.While you expect to double or even triple profits in the second month.For a standard account you can have higher earning potential.$150-$320 pips in a month is a big money,that could be a whooping $3,000 in your first month.You can actually make more than this.But i've taken the risk factor into consideration.Not so many people have a large heart for taking risk.
I don't want you to start with a $10,000 goal in your first month at least.By your second month you can then increase your earning with peace of mind.For more information Click Here!

Trade the Events for a Simulated Forex Trading

This is the little known secret most traders neglect.Why do i choose this option?Three factors led me into this;an average person that works 9am to 3am does not have enough time to trade,even if you have enough time,you are not interested in an epileptic way of earning cash.You win some you lose some,I don't like this method.
Now let's get into real business.Our daily profit aim is 20 to 30 pips daily.We pick only 20 to 30 pips and we leave the market for the large 90% losers.
Long before now,it's really been hard to put this system into a simple and clear terms,hence the reason why most traders tend to ignore this aspect of trading.One basic advantage this trading system gives you is that it does not keep you watching charts,candles you may neverget to understand very well in a short term.Even if you fully understand technical analysis,there is still 99% chance of your making money and you loosing the money too often.Erase all what you've learnt.Try this system on your demo account for 3 days or better still a whole week.You might just be tempted to start out the third day.But i'll still tell you to demo trade for 5 good days to make you perfect.Events rule forex.That's is the simple truth.Ironically,the FX market's greatest profit opportunity is also the most intimidating kind of trading.Forex as it were deals with our day-to-day activities.Every trader must be able to adopt his or her own psychological trading best for him or her.All indicators cannot be the determinant of the price in the market.
Forex deals with history,and history will always repeat itself.I heard one of the Forex gurus saying that if you trade on technical analysis ,i.e. using the indicators and chart,you could get about 60% result in your trading but it is subject to no event no occurence(like war,outbreak of diseases,rumors of war etc.)Don't forget that history repeats itself in forex.If it's true that history repeat itself,that tells me any event that happened in the past and would always have almost the same result if it occurs again.We will be using this website.They provide us with all the major events in the world.Log on to www.fxstreet.com/fundamental/economic-calendar/events/ or www.forexfactory.com there you will see different events as they occur at different times.When you get to this site,set the time frame to your local time.There are three colors,red(A) which means high impact,orange(B),which is medium impact,and yellow(c)which means low impact.These three colors have a lot to do with your trade.You have to know what they stand for and how you can apply them.If you see the color symbol,it means that there will be a rel volatility in the price trend and it is likely that 100 pips is released for that move of the price either going up or down.So what you need to do is to look for the time frame at which it will take place and target about 50 pips out of it,but i'll advice 40 pips.If for instance there is 3 times red colour and 7 orange colours which mean a real volatility will occur.So if you trade those 3 times PLUS 9 times orange occurs,you probably will have 130 pips for the day.This does not appear always.Please note that the orange color will only give you some pips which will not be as much as the red color.At least it will give you 40 pips at a move.So what you need to do is to target about 10 pips at every move per time.But the last color yellow,you should not trade it because it will be moving 5-10 pips.So i won't advice you to trade this time.Let me say this,if you don't know this system you will keep staying behind the computer everyday and still be reaping meager amount.It is always adviceable to click the read text at the end of the events item as to learn more about the events.For more information Click Here!

FX Trading System

After you have known if the trend is either going up or down,what we are going to do now is to trade those events.In Red(A)-HIGH IMPACT and Orange(B)-AVERAGE IMPACT.Here's is how to do it,you will buy and sell at the same time on the 2 colors(i.e.red color and orange color)then set target profit of 30 to 40 pips for trading the red color and 20-25 pips for trading the orange color and set your STOP LOSS(i.e.the amount you are willing to lose in any given trade).Here's a simple example of how to do it.If in EUR/USD,a 3 pip spread is quoted as 1.2500/1.2503.
Trade example:Take profit at 1.2503+25 pips up=1.2528,stop loss at 1.2488.And at the same time move down to step 2.Take profit at 1.500-25 pips down=1.2475,stop loss at 1.2515
It's advantage is that your trade will always close in time and you are capturing your profits.The result is this:40 pips-15 pips=25 pips.This is $250 if you use a whole lot and $500 if you use 2 lots.I personally would use 60% of my account since i am so sure the move will be above my projected 40 pips.If you have a large account say $3000 and use 0.60% of your account with a 25 pips profit that's a(1.8x10x25 pips=$450)in just one trade.Remember you can always do this with other currency pairs(if you have a larger account size)you can easily make up to $3600-$4000 with that one move.
This is my personal trading advice ,if like in the instance i highlighted earlier there is 3 times the red color and 7 orange colors,which mean a real volatility will occur.Red volatility in this case would give 9x10=90 pips,totaling 120 pips a day.Please note that this does not happen everyday.I wish you good luck.Remember you need to be confident and not be greedy.
How to Calculate Profit and Loss
For ease of use most online platforms automatically calculate the P&L of a trader's open positions.However,it is useful to understand how this calculation is derived.Consider the following example;let's assume the bid /ask price for EUR/USD is 1.2320/23,meaning you can buy 1 Euro with 1.2323US Dollars or sell 1 Euro 1.2310 US Dollars.Suppose you decide that the Euro is undervalued against the US Dollar.To execute this strategy,you would buy Euros(simultaneously selling Dollars),and then wait for the exchange rate to rise so you make the trade.To buy 100,000 Euros you pay 123,230 Dollars(100,000x1.2323).Remember,at 1% margin,your initial margin deposit would be$1,232 for this trade.As you expected,Euro strengthens to 1.2395/98.Now to realize your profits you sell 100,000 Euros at the current rate of 1.2395 and receive $123,950.You bought 100,000 Euros at 1.2323,paying $123,230.You sold 100,000 Euros at 1.2395 receiving $123,950.That's a difference of 72 pips,or in Dollar terms($123,950-$123,230=$720).Total profit=$720(TIP:When trading any USD counter currency pair,each pip is worth $10 per 100,000 trades).For more information Click Here!