Review Category : Trading Tools

Profits with Different Forex Trading Strategies

 Forex Trading Strategies

Profits with Different Forex Trading Strategies

When you trade forex you are doing it to make a profit.  This means that you should know what you can reasonably expect as a profit from each of the trading strategies.  Certain strategies offer larger profits per trade while others offer smaller ones.  You need to understand what you could get and what an unrealistic expectation would be.

The Types of Forex Trading Strategies

There are three general groups for forex trading strategies and they are short, medium and long-term.  Each of these groups will have a number of strategies within them and they all have different profit expectations.  Many traders assume that the long-term strategies offer the greatest profits, but this is not the case.  When looking at the profits you can make you need to think about how much you make per trade and the number of trades you are going to make.

Short-Term Strategy Profits

With short-term strategies you can make a number of different sized profits.  The profits you make relate to the short-term strategy you are going to be using.  One short-term strategy is scalping and this offers very small profits per trade.  However, the fact that scalpers often complete tens to hundreds of trades per day causes the profits to add up.  A scalper can make the same amount in a day as any other type of day traders.

Day trend trading is another strategy that is used as a short-term trading strategy.  While the profits you can make with these trades are larger than the scalper you cannot complete as many of them.  This means that the overall daily profits that trend traders make could be the same as the scalper.

Medium-Term Strategy Profits

The most commonly used medium term strategy is swing trading.  Swing trading often allows the trader to make the same profits as a day trend trader.  However, as you have to hold the trade open for at least one day or more you are not able to open as many.  This means that you could get less profit from this strategy than day trading.  Of course, if your trade does very well then you can make more than a day trader.

Long-Term Strategy Profits

Positions trading is the most common long-term trading strategy.  With this strategy you will open a position and hold it for a prolonged period of time.  The amounts you can make from this can be much higher than shorter termed trades.  Of course, the length of the trade means that you cannot open very many of these trades.  You also need to have more money in your account to trade long-term.

Which Profits You Want

It is very hard to compare the profits you make from one strategy to the profits you make from another.  The main reason behind this is that the strategies have different timeframes and different numbers of trades per day.  If you are a scalper who completes hundreds of trades per day then you could make more than other traders.  However, the stress levels of trading will also be higher and the danger of losing your money is higher.  When you consider the profits you want to make you have to be realistic.  This is why many expert traders state that you should not set monetary goals.

 

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 →

How To Succeed As Day Trader On Foreign Exchange Sydney Market

Day trading on the Foreign Exchange Sydney market allows you to carry out as many trades within a period of one day. Normally the time that elapses between the opening and closing of any trades can be made up of a matter of minutes or several hours.

Anyone who is new to trading on the Foreign Exchange Sydney market will tend to give this form of trading a go. Yes as a novice you are going to hear people tell you it is possible to make money through day trading, along with seeing certain trading experts selling courses. But one thing you should be aware is that there is no real evidence to show that you can make a profit from this form of trading. This is because it doesn’t actually work.

The first thing you need to be aware of why this form of trading on the Forex Sydney market doesn’t work is because it is extremely volatile. As a result of this any support or resistance levels you try including any technical tools don’t have the opportunity to be able to work, so the chances of you seeing a return on your investment is greatly reduced.

Every day millions of traders are attempting to trade trillions of dollars and being able to make money through day trading is simply an illusion.

However it is also important that you don’t follow what some other traders do when involved with the Foreign Exchange Sydney market. These traders actually back test data, but rather than going with what they discover they prefer to bend the system they are using in order that the data they have fits it. The problem with doing this is that when they carry out any trades using such a system the data will never be replicated in the same way it originally was. As a result of this the trader sees them losing more than they earn.

If you want to ensure that you get the right kinds of results when involved with day trading on the Foreign Exchange Sydney market you must make sure that you come up with the correct forecast in relation to the price movement.

Remember there are numerous different external factors that result in this market being so volatile. So to ensure that you get the best results when trading on the Foreign Exchange Sydney market you should be carefully monitoring it. As you monitor the market make sure that you collect as much data as possible in order to be able to come up with what is causing the currencies to behave in the way they are. Furthermore you need to be able to react quickly so that you enter and exit trades at the right time.

If you want to see yourself earning a good amount of money when investing in the Foreign Exchange Sydney market whilst keeping risk relatively low then you need to have a great deal of patience. Plus you need to have a good deal of knowledge about how to use technical analysis.

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 →

Tools Needed to Trade Forex News

Tools Needed to Trade Forex News

Trading forex based on forex news is what all fundamental traders do and there are a number of technical traders who also use forex news when trading.  It is important that you find out what tools you need to trade fundamentally.  You should also consider the news items that you have to look at when you are trading fundamentally.

Economic and Political Forex News

Many new traders believe that economic news is the only forex news that they have to look at.  This is not actually true because political news and news relating to commodities are also very important.  The level of impact that the news has will depend on the currency you are looking at and the importance of the news.

Each day there are hundreds of news releases and a fair number of them should be ignored.  There are monthly and quarterly economic reports that you need to take note of because they have a large impact on the market.  The political news you need to look at is the elections and any policies coming into place that could affect the stability of the country.

A Forex Calendar

When you are looking at news you should know about the tools you need.  One of the best tools you can use is a forex calendar.  These calendars will list the releases which are coming up and what level of impact they will have on the market.  Most calendars will classify the news as high, medium or low impact.  Most traders concentrate on the high impact news and certain medium impact releases.  The low impact releases are generally ignored because it is felt that the impact will be mitigated by other forex factors.

The calendar can also be filtered to show the news releases of a single currency only.  It is important that you look at the news releases of both currencies in your currency pair.  A lot of new traders make the mistake of only looking at one currency.

A News Feed

While having an idea of when news is going to be released you should also be aware of any breaking news.  Breaking news can have a serious effect on the forex market if it is related to how stable the country seems.  A lot of integrated trading platforms will have a news feed.  However, most platforms do not have a good news feed and you will have to look elsewhere.

Many of the major news agencies will have a news feed that traders can use.  Of course, you need to verify that the feed is geared toward forex traders and not stock traders.  The news that a stock trader will use is different to the forex trader as it relates more to what is happening to companies.

Some news feeds are free to get while others require a payment.  Most of the paid services have a monthly subscription fee which you can pay through a number of methods.  You should check to see if the service you are going to get is worth the price you are paying.  The best way to do this is to look at what other traders have to say about the service.

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 →

Finding FX Rates for Day Trading

Finding FX Rates for Day Trading

A lot of traders look at day trading as their means of using the forex market.  However, many of these traders do not know how to find the best FX rates for day trading.  There are certain rules that you should follow regarding the identification of the best rates for day trading.  When you follow these rules you have a better chance of opening a profitable trade.

FX Rates Intra-Day Trends

When you are looking at the FX rates that you should be trading, you need to look at the intra-day charts.  As day trading does not allow you to hold a position overnight there is no reason to spend time analysing longer trends. The intra-day trends you look for may be part of a longer trend and it is important that you make the most of them.  The trends will be both upward and downward, but it is important that you know when to lose your position.

The most successful day traders will use only strong trends to trade on because they can get the most profit from these trends.  When you look at the charts you should be able to see a distinct directional movement in the price.  If you do not then the currency pair may be ranging and you should not trade.  Day traders rarely make a profit off range trades because these are better suited to long-term strategies.

Be Patient with Your Trade

A lot of new day traders become flustered and impatient when they trade.  This often leads to the opening of positions in market conditions that are not ideal.  You have to wait for the correct market conditions for your trades.  It is possible to employ a range of different short-term strategies as part of your day trading.  When you do this you are able to take advantage of range and trend market conditions.

When the market is ranging you should look at very short-term trading strategies like scalping.  These strategies require very small movements in order to make a profit.  It is possible to find these movements in the range market.  When there is a strong trend you need to look at a trend trading strategy instead.

Always Take Your Profits

When you day trade it is very important that you take the profits you make.  Holding onto a trade can cause losses because of the natures of day trading.  The intra-day charts will move in waves and you need to ride these waves correctly.  When there is a turn you should close your position and look at opening a new one.  This way you could be profiting from two intra-day trends instead of trying to profit from one longer trend.

Know When the FX Rates Should be Traded

There are certain times in the day when you should not be trading certain FX rates.  These times generally correspond with the market sessions which are open.  You need to know when you should be trading certain FX rates and when you should not trade these rates.  When you know this you can pinpoint which currency pairs are best for you day trading based in your trading schedule.

 

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