Review Category : Trading Education

Top Benefits of Online Forex Training

Forex training

Forex training is important if you want to succeed as a trader in the largest financial trading market in the world. If you get the right education, you may be able to improve your chances of success in this volatile market. The popularity of the foreign exchange market has ensured that there are hundreds of training courses or programmes available for traders and you need to make the choice as per your specific needs and requirements.

Although there are hundreds of training programmes available, you need to be careful when making the choice. You need to understand that not all courses may be able to provide you with the same level of knowledge and if you make a wrong choice, you may end up wasting your valuable time and money.

Benefits of online forex training

The online forex training programmes are beneficial for new traders as they may be able to learn the basics of this trade easily. Most beginners find the foreign exchange market to be complicated and it takes some time for them to get an understanding of the market. When beginners opt for a good training course they may be able to gain adequate knowledge and this can help them trade confidently.

The online training programmes are convenient and you may be able to complete them as per your individual schedule. Irrespective of where you live in Australia, you may be able to enrol in these courses easily and complete them as per your convenience. You do not have to travel anywhere to enrol in these courses and they can be completed from the comfort of your house.

One of the biggest benefits of opting for an online training course is that you may be able to complete it at your own pace. As there is no deadline or expiry date to meet, you may be able to complete it whenever you want. Some of the reputed websites that offer these courses have a money back guarantee. Therefore, if you are not satisfied with the course you may be able to get your money back.

Curriculum of online forex training programmes

The curriculum of the online forex training programmes may vary depending on whether you opt for a basic or advanced training programme. Most training programmes teach you the fundamentals, concepts and processes of forex trade.

You may be able to learn what forex is and the various aspects of trading you need to be aware of before placing a trade. Apart from this, you may also be able to gain knowledge about technical and fundamental analysis, charts and their interpretation, different pairs of currencies, as well as trading hours of the different exchanges located all over the world.

Apart from this the other things that are included in the curriculum and that can help you make important decisions include order types, leverage, bids, pips, risk management, money management, rollover, stop loss orders, margin, margin call and contract size. When you gain knowledge about all these aspects of forex trade, you may be able to trade in a confident manner and make consistent profits.

 

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Choosing Currency Pairs in Forex Trading

Forex trading

Forex trading has become the most preferred investment option for investors in Australia. Currencies are traded in pairs in this market. Before you start trading it is important that you gain knowledge about them so that you are able to make regular returns on your investments. You need to understand that each pair of currency has its own unique characteristic and your choice of trading strategy should be dependent on it.

The first thing that you need to understand about currency pairs is base currency and quote currency. In a currency pair the first currency is referred as a base currency and the next currency is the quote currency. For example if you are trading AUD/USD then the base currency is AUD and the quote currency is USD.

Irrespective of whether you are a beginner or experienced trader it is best if you gain knowledge about the currency names and nicknames so that you are able to differentiate between them and make an informed choice.

Different currency pairs in forex trading

The major currency pairs that are traded frequently in the foreign exchange market include AUD, USD, CAD, NZD, EUR, GBP, JPY and CHF. Nearly 70% of all trades in this market comprise the major pairs of currencies. You may be able to improve your level of success when you trade in these pairs of currencies. If you are a beginner it is best to concentrate on these major currency pairs as they provide the largest trading opportunities.

The pairing of currencies is important and you need to choose the most suitable pairs for forex trading so that you have a better chance of success in this volatile market. When you choose the most actively traded pairs, you may be able to get lower spreads. This can help maximise your profits.

Not all currency pairs will behave in the same manner. Some tend to be more volatile than other pairs and gaining knowledge about them can help you make the choice in an effective manner. The high volatility currency pairs include AUD/USD, AUD/EUR, EUR/CAD, EUR/JPY, USD/CAD and CAD/JPY. The medium volatility currency pairs are AUD/JPY, USD/CHF, GBP/USD and EUR/USD. The low volatility currency pairs include EUR/CHF and EUR/GBP.

Tips to trade currency pairs in forex trading

When trading different pairs of currencies in the forex market it is best to follow the trend. You should avoid trading against the trend as it can increase the chances of losses. It is best to use a stop loss order for all your trades so that you are able to minimise the risks and maximise the profits.

You can make use of technical analysis to determine the support and resistance levels. This can help you ascertain the best entry and exit points and help you trade successfully in the currency pairs of your choice. Although you may be able to place a trade all through the day in any of the exchanges it is best to trade when the forex trading sessions overlap as they provide maximum trading opportunities.

 

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Forex Trading Strategies: The Money Lesson

Forex Trading Strategies

The best forex trading strategies only work when you have the proper foundation to trade foreign exchange rates with. The mechanics of the trade might be new if you have never traded in the stock market before. For those who have traded in the stock market then you will pick up the following lesson with ease. Hopefully if you are reading this lesson you already understand the goal in forex trading is to trade one currency for another, in expectation that prices change in value in which the one you bought currency increases and the one you sold decreases. It needs to be said that two currencies can increase in value at the same time, but often at a different pace. This can matter in the currency pairs you trade since the goal is to make the most profit in the pair you can based on the increase in value.

Forex Trading Strategies Examine an Example

Using 10,000 Euros for the EUR/USD pair we will say the rate is 1.1000. You buy 10,000 Euros, but you sell 11,000 USD to make it happen. You come back the next day and the rate is at 1.2000, so you sell 10,000 Euros and you buy 12,000 USD. You made 1,000 on the deal. Your forex trading strategies worked by putting your faith in buying the euro in this example and then selling it back for USD after a profit change occurred. The calculation to remember is always the lot size or in this case 10,000 multiplied by the current foreign exchange rate tells you the amount you are selling or buying in the quote currency. You always want to use the current quote rate and then use the current quote rate at the time you close the position to determine the profit or loss.

Forex trading strategies like those you will eventually learn will teach you how to minimise your losses and prepare for a decent profit or return on your investment. It is not about getting the very last pip of profit from the exchange, but getting a decent profit to make the exchange worthwhile.

Forex Trading Strategies on Reading Quotes

Being able to read the quote system is important. Currencies are always going to be quoted in pairs with the base currency first and the quoted or cross currency second. What would be the base and quote for GBP/USD? If you answered the base is GBP and the quote is USD you are correct. If you see USD/JPY then the USD is the base with the JPY as the quote.

The exchange rate is going to tell you the units you pay using the quote currency to buy the base currency. If the rate is 1.100 like the above example then you pay 1.1000 USD for 1 EUR. When you sell the rate will say how many units of the cross currency you get for selling 1 base currency. In other words, if you see 1.200 then you get 1.200 USD for every 1 EUR you sell. You can base many forex trading strategies off this knowledge.

 

 

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Trading With Smaller Time Frame Forex Charts

forex charts

There is a lot of debate in the forex market on the efficiency of technical analysis. The reason why there is no accord between traders on which technical strategies are the best is that there is no clear answer.

All types of strategies and forex charts have the potential to make a lot of money for the traders. Therefore, the choice that the trader makes and how profitable it will be for him depends entirely on his own unique assessment.

Most traders tend to vacillate between smaller time frame forex charts and larger timer frame charts. This is one of the most crucial decisions that you will have to make in your bid to make money from the market. Here is an analysis on the use of smaller time frames vs. bigger time frames.

Definitions

You need to first understand what small time frames and big time frames mean for your forex charts. If your charts are based on time frames above daily then this would mean that you are using larger time frames, but if you use time frames below daily then you are using smaller time frames.

On the basis of this definition, smaller time frames include four hours, one hour, five minutes, and one minute. The larger time frames include daily, weekly, and monthly.

Costs

Another thing you need to realise is that using forex charts based on smaller time frames would mean that you are incurring more costs towards commissions and spread fees. The reason for this is simple.

When you use smaller time frames, you get more opportunities of a smaller size which means that you trade more. This means that there is not only a risk of overtrading but also that you will have to incorporate the cost of making those trades into your profits and losses.

Logistics

In addition to this, trading with forex charts based on smaller time frames would mean that you would have to spend more time in front of your computer because this kind of analysis needs to quite detailed.

This is why smaller time frames are only recommended for those traders who can devote more time to forex trading and do not have other major commitments in their lives such as a day job.

Emotions

Trading with forex charts based on smaller time frames also means that you would be more invested in the market. This high level of investment results in the trader being more emotional about how his trades fare out in the market.

For instance, because of this level of investment, you will be unable to shrug off the disappointment of losses or the euphoria of successes. Moreover, the pressure of being so active in the market should also not be ignored.

Beginners

Owing to the nature of trading with forex charts based on smaller time frames, it is not surprising that most beginners are advised against using them. The best way for you to trade in the market would be to use time frames in a balanced manner. This means using daily, four hours, and one hour time frames while devising your charts.

 

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Forex Training Leads to More Funds

Forex Training

Forex training is the best way to understand why today $100 from 10 years ago is worth $200 AUD. The statement seems to make little sense and it is not a real example; however, there is a point. You read things in an article like some celebrity making $1 million AUD 20 years ago would be making $5 million AUD today. It all has to do with how the value of currency has changed. The market moves back and forth in terms of currency value. Sometimes AUD is weaker and the USD gains. At other times the AUD is in the better position. The point is that money while gaining value is always compared to something like how it was a few years ago versus to money value today. Overall the value is up for most currencies. Training on the foreign exchange market is able to teach you how to take advantage of these shifts in value to make your money make more money.

Forex Training Rules to Live By

Before you can begin making money on your money, you first need forex training. This is rule number 1. If you are not committed to gaining a proper education about the foreign exchange market you might as well not start. Most anyone who hops into the market with a few thousand AUD to trade without getting an education loses it all and winds up hating the article that told them to trade. As with anything in this world there is a right and a wrong path to take. The basics of forex teach you how to trade currency pairs including how appreciation and depreciation are reflected in foreign currency rates.

The next rule of forex training is to set goals. Start now, while reading on in this article. Do you want to double your retirement fund? When is your retirement date? How long do you need to double it based on your retirement date? Are you young and wishing to buy your first home? These goals matter because they are going to keep you focused in the market.

The third rule is to ensure you are making the proper moves to gain the goals you are outlining. This means determination is necessary to stick to your training and to stay the course with your goals.

Forex Training: The Golden Mistake

The top mistake that new traders make is your first lesson in forex training. This mistake is to believe there is a 100% win scenario that exists for trading in the market. Do you think experts make a profit every time they trade?

Hopefully you answered no because they do not. They take the fundamental and technical data available to them, make educated reads on how the market will react, and then plot out a position. Their position is plotted to ensure the least amount of loss and appropriate gains. The second lesson of forex training is that greed will get you nowhere unless it is to higher and higher losses. Experts do not plot greed; they plot reasonable profit and minimal losses. At least, the successful experts do this.

 

 

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Factors For Beating Foreign Exchange Rates

Foreign Exchange Rates

The forex market is huge in size, scope, and liquidity. The size of the market means that foreign exchange rates cannot be cornered by any single entity, regardless of whether you consider huge financial corporations or even central banks of various nations.

In order to cope with this vastness, many traders are always on the lookout for new techniques and ideas to improve their trading methods. As the market is full of experts providing such advice, there is no dearth of tips and suggestions that traders can pick up for becoming better at gaining profits from fluctuating forex rates.

However, owing to so many tips and suggestions being available, many traders focus on the more obvious ones and forget about other factors that can be equally useful. Here are some underrated factors which can be crucial in your efforts to make profits from foreign exchange rate fluctuations.

Being Comfortable with Choices & Decisions

Second guessing yourself will not bring you any money in the forex market. In fact, you would often find that your earlier decision would have got you more money than your last decision did. In other words, you will see that second guessing your choices and decisions pertaining to foreign exchange rates would not only reduce your profits but also cause a lot of stress.

Patience in the Market

There is a time for action and a time for patience in the market. If you are focused on action all the time then you would end up opening too many trades at one time or even burning yourself out with nonstop analysis of the market.

You should know which setups you will use to study the movement of foreign exchange rates and what triggers you will trust for placing your orders. Once you have these, you should just sit back and wait for the right setups and signals to show up instead of forcing the issue.

Avoiding Predictions

Nobody has ever been able to predict how the foreign exchange rates will behave and nobody ever will because it is simply impossible. Moreover, if you try to predict forex rates then you would basically set yourself up for a big fall because you would end up putting all your eggs in the same basket.

On the other hand, if you avoid predictions then you would be able to see all the possible moves that forex rates can make and prepare for all of them. Thus, your contingency plans would involve even losing moves and you would be able to protect yourself.

Adapting to Changing Conditions

Foreign exchange rates will always keep traders on their toes. There are so many permutations and combinations that can occur in the forex market that it is impossible for any single strategy to take all of them into account.

What this means is that the conditions in the forex market are always in a state of flux. If you can ensure that you are keeping up with market changes then you would be able to use fluctuating foreign exchange rates to score consistent profits.

 

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Forex Training Looking at Sentiment

Forex Training

Intense forex training is needed to understand the concept of sentiment analysis. Everyone can have an opinion. Worse yet, the forex market is moving into the social whirl with its own Twitter like feeds. Do you want to know what trader X just did? All you have to do is look it up. You can find just about any person has a posting site they use to talk about the trade they made or will make. There are several reasons for this too. It’s not just about posting what you have done to share with the world like Twitter and Facebook. Actually, it is all about trying to get more traders to follow you in order to gain more profits on the trade you placed. If Trader X can get Y and Z on the same trade then pip change moves up just a little more. If Trader X followed what A through W did then you have even more potential for one trade to go viral and for individuals to make a tidy profit.

Forex Training for Social Media

Not all traders will take up the same position. Some will ignore the social media plug to join in. Others will take on the position. There are still others that will get in on the opposite side in order to make a profit on the downswing that is sure to happen. It is a balance again in which one team can unbalance a trend. The more volume in one trade the more unbalanced things will go. Forex training requires social media explorations because it is a large draw for some. Ignoring the social, which is part of fundamentals, can lead directly into loss.

Luckily for traders undergoing forex training you do not have to worry that all traders will react to the same piece of news in the same way. This is where sentiment analysis comes in. As traders take up a position in the market their sentiment is seen, which can help you determine the way the market is most likely to go for better profit. Most individuals are unable to sway the market in one direction or the other unless they are a billionaire, so this is why you have to watch what others feel.

Forex Training on Feelings

Sentiment indexes exist. There are also ways you can see how the trend is changing as market sentiment changes. The USD/JPY is a good example of this. Recently the Yen was sought by a significant amount of traders. Their forex training said when the market is uncertain or trouble is brewing like that in Syria it is best to run to safe havens. Some traders went to the CHF, others to gold or oil. Still, the market shared for the yen was just as plentiful. All other major currencies did less well during these weeks of Syrian turmoil because investors felt it was wisest to go to the safe havens until a decision on a military strike against Syria was defined. Trust in your forex training and watch out for current news to sway sentiment in a different way.

 

 

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Trading on the Foreign Currency Exchange

 foreign currency exchange

According to many seasoned experts, the odds are firmly stacked against traders with small accounts on the foreign currency exchange. The simple logic behind this assertion is that small accounts are closer to zero and much more susceptible to be blown to bits by the volatility of the market.

At the same time, another reason why traders with small accounts have trouble succeeding on the foreign exchange is that the growth of their accounts is restricted by their limited starting capitals.

However, does this mean that the dream of starting small and making it big in the forex market is unrealistic? It just means that realising such a dream requires some special care. Consider the following.

Look at Percentage for Assessing Growth

If you are starting with a small account on the foreign currency exchange then you may get into the habit of counting pennies. This kind of thinking can give you the wrong mindset. The best thing for you to do is to treat your small account like it is a big one.

This means that while you may adjust your targets and position sizes, you will otherwise use the standard forex trading techniques. This specifically includes viewing your growth in terms of percentage of your starting equity as opposed to individual pennies.

Maintain Discipline & Consistency

You should know that a small account is more at risk on the foreign currency exchange than a larger one simply because the latter can absorb losses while the former cannot.
This is why it is especially important for you to maintain discipline in how you go about your trading business. If you can be disciplined and follow your predetermined strategies carefully then you would make your returns more consistent.

Follow Your Trading Plan

Simply by devising a good forex trading plan and following it to the T, you can protect your small account from many dangers that lurk on the foreign currency exchange. For instance, just by following the plan, you can take away the element of emotions from the entire equation and ensure objectivity.

Practise Proper Risk Management

Small accounts, as mentioned earlier, are extremely susceptible to the vagaries of forex rates. Moreover, fluctuations that experienced traders with larger accounts only consider as minor can be huge for a trader with a small account on the foreign currency exchange. This makes risk management extremely important to you.

Use Percentage Position Sizing Techniques

For small account holders trading on the foreign currency exchange, the best way to decide the size of their positions is to make it a percentage of their total account equity. While this may slow down your account growth, it will also ensure that you never find yourself with a blown account.

Suppose you decide that your position size should not be more than 2 percent of your total account equity. In this case, if you lose money, then your position size would also get reduced. Effectively, you would never be in danger of losing everything to the foreign exchange.

 

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Forex Training: Now Taking Orders

Forex Training

Ordering in a restaurant is something you should be familiar with. You decide on something you want to eat and you get it. How you arrived at what you ordered is often based on a couple of things. First, the restaurant you chose was based on affordability and having the food you like. Next, depending on the amount of money you want to spend you decide on what dish to order and if you need to split it with your companion. In forex training FX orders are slightly different. You have decided on a currency pair to trade. The next part is protecting that trade. Like you protect your wallet from overspending when eating out, you need to protect your trade from extreme losses. Brokers decide what types of orders they will provide. There are some typical orders that all brokers tend to offer.

Forex Training on Basic Market Orders

Market orders are what you should consider the base of all other orders and trading positions. A market order will choose the best price available. For example if the AUD/USD is .9300/.9302 and you want to buy AUD, then you can hit execute to buy the order and the price will be chosen based on the current market price. Let’s take a look at this further for forex training. A current price is what the market is currently selling that currency for. It can change within seconds because of buy and sell orders on that pair. You lock in a rate at the current price just as you would buy a CD that is on sale at an online store.

Delving further into forex training you have the limit order up next. A limit order or limit entry order as some call it allows you to choose the price rather than going with best available. Say the price is .9300, but the movement on the currency pair is such that it keeps going up and down. You want to buy in at the lowest possible price, so you decide to put in a limit order at .9290. If the price falls to .9290 your order is executed and you have bought AUD selling USD. The idea is that the price lowers slightly for a better entry, but it will reverse to a profitable turn.

Forex Training for Limit Orders Continued

The idea in forex training is to help you understand the different orders, but you have to be aware they may not always be the best. After all, if the price has reversed and you bought in on the hope the price is going to reverse again towards profit on the base currency you need to be sure of it. What happens when you get into a position because it was supposed to reverse and instead continued? You would lose money. Limit orders are meant to be fairly tight and used when you have strong forex signals indicating the price is just lowered for better entry before it starts increasing for better earnings. If you can remember this forex training you can decide whether you like market or limit orders for your entry.

 

 

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Prospects on the Foreign Exchange Market

foreign exchange market

Most traders come to a point in their trading career where they have lost a major chunk of their account equity and have to find a way to recoup everything that they lost. Typically, most traders reach this point within the first two years of their time on the foreign exchange market.

Whether this point has already come in your life on the foreign exchange or not is not important because you will still need to know how to revive your fortunes at any time in the market.

In other words, it does not matter if you need to revive your account right now or not because you should be prepared for all contingencies in the market. Here is how you should go about doing this.

Take a Break

If your account equity has dwindled to a point where you are questioning your capabilities on the foreign exchange market then the first thing you need to do is walk away from the market. The purpose of this step is to give your disappointments time to subside and to lessen your lack of confidence a little.

Start with Demo Again

When you feel emotionally ready to come back to the forex market then you need to start from the very first again i.e. a demo account. Demo accounts would help you regain all the confidence that you have lost. Regaining this confidence is important because, without it, you cannot hope to recoup everything that you have lost.

De-clutter Your Charts

Next, you should focus on the forex charts that you have been using on the foreign exchange market. Inexperienced traders have a tendency to overcomplicate their charts over time in the hope of getting more certainty from their signals.

Unfortunately, this can end up being the reason for their failure. Therefore, you must reassess your forex charts and de-clutter them. This means removing technical indicators that are superfluous.

Pick a Simple Strategy

After this, you should reconsider the strategy that you will be using on the foreign exchange market. You must make sure that you have a simple but effective strategy to rely upon. In other words, you should steer clear of the more complicated and challenging strategies.

In terms of your primary goal i.e. reviving your account equity, it is recommended that you use price action strategies mainly because they are simple and extremely easy to implement.

Enter Live Trading Gradually

By now, you would be practise trading on the foreign exchange market through a demo account. It is now time for you to start live trading. However, you must make your entry into the live foreign exchange gradually. This means using all the smaller accounts from descending to ascending order of lots until you reach the standard account.

Review Performance Every Month

You cannot be sure of your new methods unless you test them properly. This means reviewing your performance after each month until you are completely sure that you are on the right track in the foreign exchange market.

 

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