Review Category : Trading Platforms

Exit Forex Signals For Your Forex Trading

Exit Forex Signals

There are certain points that you have to know about when you trade on the forex market.  Two of the most important points are the entry and exit forex signals you need.  A lot of new traders focus most of their attention on the entry forex signals, but the exit forex signals are just as important.  There is no point in getting onto the market if you are not going to know when you should exit the market.

How to Develop Your Exit Forex Signals

When you develop your trading system you have to consider your exit signals.  This is a very important part of your trading system because without it you could suffer serious losses because your trades will always be open.  You need to ask yourself three things when you are developing your exit strategy.

How Long is Your Trade Going to Last?

The first question that you should be asking is how long you are going to be holding the trade for.  This will relate to the trading strategy you are using and the type of trader you are.  Short-term traders will not hold trades for long, but fundamental and swing traders will hold the position for a while.  If you are a long-term trader you should consider certain points:

  • Allowing for volatility in the range market.  When you trade long term you have to be aware of the fact that your trade could turn against you for a time before the market swings in the right direction.
  • What profit levels are you looking for in the trade.  The exit points should relate to the amount of profit you are going to get.
  • Should you have an exit strategy that is based in fundamentals?  If you are trading fundamentally then you may want to hold a position until the next fundamental release.  Your stop order should reflect this.

Where Have You Set Your Risk Levels?

The second question you should be asking is what your risk levels are.  The amount of risk you are willing to take will determine where you can place your stop orders.  You should never risk more than 2% of your trading account on a single trade.  Of course, you can risk less if you want, but the rewards are thought to be too low with less risk.  You stop loss order should be at a point where you will only lose 2% of your account and no more.

How Much Do You Want to Make?

Exit strategies are not only about exiting the market with a loss.  You should also consider the take profit orders that you are going to place as part of your exit strategy.  To determine these points you need to think about the profit that you want from the trade.  This could be a percentage amount or a set amount of pips.

When you look at take profit amounts you also need to consider when the market will turn.  If you are trend trading you have to ensure that your take profit point is below the turning point of the trend.  This is actually very hard to predict as you have no way of really knowing beforehand what the market will do.

 

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Hungary’s FX Mortgage Plan

fx

There are a few unique FX factors that are creating an impact on the Hungary’s HUF performance. Low headline inflation, weak domestic demand, and the dovish outlook of the new NBH leadership support further cuts. Financial market pressures and currency volatility could at times make it hard for the National Bank of Hungary (NBH) to continue with uninterrupted rate cuts.

The European Union imposed a freeze on a portion of its transfers to Hungary that has lowered inflows. This is leading to a decline in reserves. The government is formulating yet another FX mortgage scheme that will likely further cut into bank profits and lead to FX outflows. The government has indicated that it intends to issue a USD global bond to replenish reserves in advance of the €1B repayment for a global bond that matures in January 2014.

Governor Matolcsy signalled a change in monetary policy after the July rate decision. He stated that the pace of interest rate cuts will slow down to 10 bps per month as the NBH approaches the end point of its cuts, which is estimated at 3.0% to 3.5%. The NBH has slashed its base rate by 25 bps at each of its past 12 monthly meetings, from 7.0% to 4.0%. Underlying inflation is now slightly below the 3% target, and this is in line with inflation expectations of FX analysts consensus estimate.

FX Mortgage Plan

The Hungarian government has announced a new FX mortgage plan to be implemented this year. Differing ideas are being debated on this issue. FX mortgage loans total HUF3.5B or €12B, about 25% below from previous levels due to redemptions under the previous programme. The government is passing legislation that would facilitate personal bankruptcy procedures for nonperforming loans consisting of about HUF650B. This would possibly lead to large write-downs of mortgage debts of these households and permit banks to clean their balance sheets. This will not pull down profits that huge because banks have allocated provisions in previous years against these sour loans.

Performing loans with the amount of HUF2850B are already eligible for the Exchange Rate Barrier programme. About 50% of the loans have opted into this programme that lowers monthly interest and amortisation payments by 25% by using a favourable FX rate. Currently the excess amortisation payments are collected in a special fund that is interest-free. The government and the banks share the costs of this programme.

More options are under discussion and it is unclear what will be done at this point. The costs are likely to be shared between the government, the banks, and the NBH. This will likely lead to additional bank losses. Banking system losses were HUF160bn in 2012, of which 90% were provisions. Some individual banks were profitable notwithstanding the overall system losses, . The new FX programme will also likely lead to outflows from Hungary as the FX loans are converted into HUF. The NBH will probably provide FX from its reserves. the NBH sold €2.5B to banks to repay FX debts for the previous FX mortgage buyout programme.

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Forex Trading GBP Government Interference

Forex Trading

Great Britain like other countries needs to be evaluated on what it has to offer. Traits of economic powers are necessary to learn if you want to succeed in forex trading. The following is a tutorial on the debt market, equities market, central bank, and government intervention. The information should help you determine how the GBP might react given certain economic reports, events, and the trade balance shifts it can undergo.

Forex Trading for GBP Debt and Equities Traits

The United Kingdom has the same debt market ranking as the USA at Aaa. It has held this rating for 30 years and it is the only country that has been able to hold it continuously for that length of time. It has and will continue to be a positive sign for the GBP.

Like its debt market, the equities market is also very attractive. It is considered the 5th largest with a value of $2.8 trillion. In terms of economic traits these are both very good things for forex trading. It lends to the stability of the economy. Even in times of economic hardship there is an assumption the United Kingdom will pull through with some damage, but not as devastating as other countries.

The U.K. also continues to maintain its independence from the Eurozone, keeping its separate currency without issue. It is a part of the European Union though, which can determine some of the market reactions you see. These little details will matter when you start forex trading for profit.

Forex Trading GBP Central Bank Interference

The Bank of England is the central bank in charge of the GBP or sterling. There are two purposes the bank has: financial and monetary stability. For monetary stability the country looks to keep inflation fairly low to ensure confidence in the sterling price. Stable prices are also kept for the exports in order to ensure inflation targets are kept and that exports continue to be in demand. If the inflation is not at a good target, the bank can seek to make change as long as the Monetary Policy Committee agrees.

Financial stability is always a key factor to the health of an economy. The United Kingdom believes wholeheartedly in confidence for the system in which they work to keep it stable and safe. The bank works to ensure critical services are offered to the wider economy when necessary. For forex trading this outlook is very good as is the currency reserves and gold deposits that total more than $54,100 million.

The central bank is able to take care of most of the financial and monetary policies. There have only been a few very rare cases in which the actual government has had to step in and manipulate the market. There is nothing in recent history that has required the British government to get into forex trading for the purpose of manipulating the market. Much of the recession tactics were based solely on the Bank of England’s decisions to lower interest rates. The bank has been known to be a lender of last resort, which stops the government from needing to intervene.

 

 

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Forex Trading Programme Essentials

Forex Trading

Forex trading programmes are not created equal. Brokers determine the types of programmes they will offer to Australian traders. You may find certain “essentials” are not enough for your trading experience. If you have the capital or desire you can increase the amount of tools in your programme by choosing a different broker including a full service dealer. The following is an overview of programme essentials and add-ons you might want.

Forex Trading Essentials

Trading involves certain essentials that you can either access through a broker or any online website. These essentials are charts and news. You can find them with Google, Yahoo, MSN’s Bing, and various other websites for free. Typically a broker is there to help you place the trade. It is the only reason to truly need them once you have the right forex trading education.

If the broker offers you the charts and news then it is helpful, but not a necessity. You have other ways to get the information. When you assess what a broker can offer you often times you want to consider their regulations, reputation, and the currency pairs they offer. In fact currency pairs offered is a definite essential to check. Is the broker going to offer you the currency pairs you want to trade? Will they offer more than enough pairs to consider trading? You want at least 30 pairs to assess from any broker given the G7 pairings you can make.

Forex Trading Additions to the Programme

Forex trading with more than the standard programme is imperative to some individuals. Perhaps you have the basics, but you want more from your account. For example, you might decide to get into futures or ETFs. The dealer would have to offer these account types if you intend on trading them. It would not do to switch brokers in the middle, especially if you know you will want to trade more complicated processes in forex.

Educational training can also increase in steps. An essential programme might offer you some articles on basic forex concepts, but a dealer with a full service programme would have seminars, videos, and additional educational lessons. It would be easier to learn forex trading in detail from a full service broker willing to offer you a great deal of information.

Some full service packages actually include videos, seminars, demo accounts, and individual account managers to help you learn the complicated market. These would all be the add-ons you could take advantage of.

Full service packages need to contain value though. It is in your best interest to assess the situation before you buy into a full service package. You do not want to get the wrong one. You would not be very happy spending thousands on a supposedly personalised course to find that the company draws up the same materials and just highlights the “personalised” sections you are interested in.

Whenever you look for essentials and add-ons for forex trading ensure that it is more than worth the price you pay.

 

 

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Forex Trading GBP Economic Announcements

Forex Trading

In the trait category of basic currency details you need to realise a few things about each currency like economic reports, how you can trade it, and its safe haven status. This final instalment on the GBP economic facts looks at forex trading on the details in reports, along with how you can trade it. If you intend on trading the GBP or trying to learn it to see if it is worth trading, read on. The GBP is a major currency; therefore, it deserves at least a look at basic economic fundamentals.

Forex Trading on GBP Economic News

Certain countries have more economic announcements than others in terms of importance. The United Kingdom has more than six reports that you should keep your eye on at any given time. The Bank of England or BOE bank rate statement is an official announcement that will come out when there is talk of interest rate changes. This statement will say if rates will change, when, and to what. The Claimant Count Change is an unemployment report. In forex trading labour data shows if the economy is in recovery, gaining strength, or remaining about the same.

The CPI or consumer price index is another U.K. report that speaks to economic strength since it shows if consumers are willing to spend money. The other reports are producer price index, gross domestic product, retail sales, trade balance, manufacturing purchasing managers index, and Halifax House price index. You may have noticed something if you already know the USA reports- many of the U.K. reports have similar names or at least similar content. Both countries also have about the same amount of economic reports. It is important to forex trading that you keep up to date with these reports including when they are going to come out.

Forex Trading in Broker Platforms for GBP

Understanding forex data from one country is just a small portion of the information you need to be armed with. You trade in pairs which is why you also need to consider the same or similar data from other countries and their currencies. With forex trading you have a variety of data points, as well as a need to trade on that data. The question then becomes how are you going to trade on the data? Now that you understand a currency and its country’s economics how are you going to trade it?

With the sterling you have plenty of choices for trading. In fact the GBP is available in the following options: spot forex, futures, ETFs, ETNs, spot options, and ETF options. For beginners it is usually best to start out in the spot market with a regular transaction. Forex trading in these other choices brings on more complication to an already difficult market to assess. ETFs for example involve more than currency pairs, and commodities are also involved. Once you have the spot transactions down you can start gaining more education towards different trade options. You still need the basic training you learned here, plus a bit more.

 

 

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Forex Trading GBP Economic Announcements

Forex Trading

In the trait category of basic currency details you need to realise a few things about each currency like economic reports, how you can trade it, and its safe haven status. This final instalment on the GBP economic facts looks at forex trading on the details in reports, along with how you can trade it. If you intend on trading the GBP or trying to learn it to see if it is worth trading, read on. The GBP is a major currency; therefore, it deserves at least a look at basic economic fundamentals.

Forex Trading on GBP Economic News

Certain countries have more economic announcements than others in terms of importance. The United Kingdom has more than six reports that you should keep your eye on at any given time. The Bank of England or BOE bank rate statement is an official announcement that will come out when there is talk of interest rate changes. This statement will say if rates will change, when, and to what. The Claimant Count Change is an unemployment report. In forex trading labour data shows if the economy is in recovery, gaining strength, or remaining about the same.

The CPI or consumer price index is another U.K. report that speaks to economic strength since it shows if consumers are willing to spend money. The other reports are producer price index, gross domestic product, retail sales, trade balance, manufacturing purchasing managers index, and Halifax House price index. You may have noticed something if you already know the USA reports- many of the U.K. reports have similar names or at least similar content. Both countries also have about the same amount of economic reports. It is important to forex trading that you keep up to date with these reports including when they are going to come out.

Forex Trading in Broker Platforms for GBP

Understanding forex data from one country is just a small portion of the information you need to be armed with. You trade in pairs which is why you also need to consider the same or similar data from other countries and their currencies. With forex trading you have a variety of data points, as well as a need to trade on that data. The question then becomes how are you going to trade on the data? Now that you understand a currency and its country’s economics how are you going to trade it?

With the sterling you have plenty of choices for trading. In fact the GBP is available in the following options: spot forex, futures, ETFs, ETNs, spot options, and ETF options. For beginners it is usually best to start out in the spot market with a regular transaction. Forex trading in these other choices brings on more complication to an already difficult market to assess. ETFs for example involve more than currency pairs, and commodities are also involved. Once you have the spot transactions down you can start gaining more education towards different trade options. You still need the basic training you learned here, plus a bit more.

 

 

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Forex Trading Strategies on Money Management

Forex Trading Strategies

Money management should be a part of your lifestyle. To be financially successful you need to manage your money well otherwise your debts will increase. Forex trading strategies will examine some money management tips for your Australian forex lifestyle. Some of these tips might seem familiar to you as they tend to be similar to your daily life. Let these same rules apply to your investment proceedings in order to see success.

Forex Trading Strategies: Getting Started with Money Care

Defining your goals, creating plans, and then taking action are three great ways to take charge of your financial life. Depending on what you have already learned about forex, these three concepts are the same. You need to have a goal or goals to trade in the forex market. The goal is up to you, but most consider it as a means of making money. You want to define it a little better such as doubling your current investment portfolio or gaining $1,000 AUD each month to add to your account. Forex trading strategies like clear and well defined goals are important. To meet your goals you do need to create plans. These plans are for each trade.

You should have long term plans to reach your goals and then individual plans for what you can earn on each currency trade you place. Once you have an entry, exit, and risk management strategy you can take action by investing.

There is one caveat to starting the action part of your plan. You need the proper education in order to truly utilise forex trading strategies. Without education on how the market works, what currency pairs are, and how you can trade them you will have trouble investing to reach your goals. Those who often leave their forex investments behind did so after a few tries with real money and little education. They did not practise, read two or three articles, and figured they could make a return from the investment.

Knowing the ground rules for the foreign exchange market is essential if you want to succeed. Instead of creating a filing system for your account paperwork as you would for your expenses and income in regular financial management you have a different filing concept needed.

Forex Trading Strategies: Filing your Journal

There are a couple of ways you can set up your trading system. You can have a journal of transactions. In fact this is highly recommended. You can create it on the computer or use a paper journal. It should be of all demo and real money transactions you have to date. In this way you can look back at the history of your trades and check which forex trading strategies worked.

The next thing is to have a forex filing system with currency details. You should at least have a file for the G7 currencies and their respective country details for economics. It can be used as a quick reference guide. You can also include charts and news that was significant to the currency such as a past event that changed a trend or a report that continually creates the same response. These are your money management techniques.

 

 

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Forex Trading Systems with Profit Calculator

Forex Trading Systems

Forex trading systems offer you a lot of different tools. Depending on the platform you have decided on for your Australian broker consider if it has more than one type of calculator and what these calculators might do. There are at least six calculators available online for free that can help you figure out your positions. You might not need all of these calculators to open a spot transaction position. The following is going to look at the six calculators to let you know what they do. From there you can decide which ones are most important to you.

Forex Trading Systems: Spot Calculators

Spot transactions are usually the easiest for traders to learn. Things like carry trades, ETFs, and ETNs are a bit more difficult. You have a variety of calculators you can use to pick a point of entry for your spot transactions. These are the calculators you will read about in this section of forex trading systems.

The Fibonacci calculator takes the concept of Fibonacci retracements and brings it to your understanding. Instead of guessing about the retracements you are able to use a calculator with values entered to find out if this applies with regards to entering a position. You want to enter with high and low values that are your choice with regard to the profit you desire. You do not have to “predict” like a seer with the calculator, but estimate a better entry position.

The pivot point calculator is another popular tool that looks at the previous day for high, low, and close rates. In this way you can find the support and resistance values, entry and exit points. Calculators are there for forex trading systems to be enhanced. Technical analysis is hard enough without predicting solely by looking at the charts and what formations you think you see. Calculators can reinforce the details.

The pip calculator is yet another tool that allows you to calculate the pip value needed to determine the profit or loss you would make or lose based on currency movements in the market. The USD as the quote currency is the only pip value that will not change per pair.
The profit calculator takes your profit and loss calculations to a new level. You do not need to remember any complicated mathematical formula. Instead, you can just enter the information in the profit calculator to find the answer you seek.

Forex Trading Systems: Advanced Calculators

Carry trade calculators are for more complicated situations. Carry trades are something you want to study and consider adding to forex trading systems once you have the spot concept down. The carry trade calculator is at least there for when you are ready to calculate interest earned or paid for trades you hold on a longer period of time. Most of the time you do not hold a position beyond a day, but carry trades can be held for several days, weeks, or months earning or losing interest based on the market reactions and your position.

 

 

 

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Learning To Use Automated Forex Trading Systems

forex trading systems

The inherent difficulties of trading on the forex market make it very difficult for new forex traders to make it big in the market. This is probably why around 90 to 95 percent of new forex traders actually fail to sustain their profits in the market. This is also probably why so many new traders look for help from tools and instruments like automated forex trading systems to give them forex signals that they can act upon.

However, despite what marketers tell you, you should know that using automated trading systems sounds a lot easier than it actually is. Like everything worth anything in the world, these systems also require you to learn how to use them properly.

If you are not experienced at using these trading systems, a variety of things could go wrong. Here are some areas that may trouble you while using automated forex trading systems without appropriate knowledge.

The Programming Language

The majority of automated forex trading systems are written in the MQL4 programming language which is connected to the Meta Trader trading platform. However, not a lot of forex traders know much about this language.

The result is that, when it comes to even the smallest of changes, they are unable to implement them in the automated system’s programming. This is particularly true for new forex traders who have only just learned about forex trading and are learning how to apply their knowledge.

Money Management

Automated forex trading systems may or may not include money management principles. The ones without money management principles do not include them because they expect traders to incorporate the same on the basis of their unique preferences, targets, and risk tolerance.

It is also important to note that even if automated trading systems incorporate money management principles, these principles may not gel with the individual traders using them. Therefore, if you are planning to use these systems then you would need to look into the aspect of money management.

Back Testing

There are many different types of automated forex trading systems available on the internet. It is thus crucial for a trader to know how to find one that is most suitable for him. Moreover, the trader also needs to know how to evade scams.

This is best done through back testing the trading systems. Hence, learning how to properly back test these systems is a vital skill for a trader to have.

Actual Implementation

Automated forex trading systems can either work completely independently or give traders forex signals to work with. In either case, the actual implementation of the process inherent in the trading systems can be a cause for concern.

For instance, semi automated trading systems rely on the trader to make the right choice about the forex signals that they are producing. If the trader is unable to use these signals properly, then the success rate of the trading systems would go down as well.

 

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Learn Forex Trading in Simple Steps

Forex Trading

Achieving success in forex trading is not easy and it takes a lot of hard work to survive and succeed in this volatile market. You need to be aware that nearly 95% of traders fail to survive in this market, as they do not acquire the necessary knowledge and experience to trade successfully.

Although there is a lot of information about forex trading that is available nowadays you need to understand that not all of it may be useful. Before you start trading it is important that you learn the fundamental concepts and strategies so that you are able to understand and manage the complexities of this market easily.

If you think that all that you need to achieve success in this market is money and luck then it is best if you avoid trading in this market. You also need to understand that you may not be able to achieve overnight success in this trade and it takes time and effort to do so.

Tips to learn forex trading in simple steps

One of the easiest and most effective ways to learn forex trading is to join a forex training programme provided by reputed websites. You need to be careful when you make your choice of training programmes as there are many fraudulent brokers and companies offering such programmes. It is best to do adequate research about them so that you are able to make an informed choice.

Most reputed forex brokers provide a demo or practise account and you can make use of them to learn and improve your trading skills. The practise account can also be used to test the various strategies you use to trade the different currencies of your choice. You can also test the features of the trading platform that you may be using to place a trade.

Learn to read the forex charts so that you are able to determine the price movements of currencies. You can make use of line charts, bar charts and candlestick charts to analyse the price movement and take important investment decisions. Apart from this you can also gain knowledge about fundamental and technical analysis so that you can analyse the market trends and trade successfully.

Learning money and risk management for forex trading

Traders irrespective of whether they are new or experienced need to learn and use money and risk management skills so that they are able to maximise the profits and minimise the risks of trading. You can make use of tools like stop loss orders to help reduce the risks significantly. This can also help you safeguard your investments in the forex market easily.

Planning is important if you want to succeed in forex trading. If you try trading without a plan you may succumb to emotional and impulsive trading and this can result in big losses. When you have a trading plan for each trade you may be able to manage the inherent risks of this market in an effective manner and make regular returns on your investments.

 

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