Trading Capital Do Forex Trader Need To Start

Chitika   April 01, 2018

Trading Capital Do Forex Trader Need To Start

The Ultimate Guide To How Much Trading Capital Do Forex Trader Need

This Study will perfect your trading capital do forex trader need to start? Getting Your Feet Wet – Begin trade forex. Read this forex blog from forex friend loan about the ultimate guide to how much trading capital do forex trader need. Well, You don't need to have a hefty trust fund or ultradeep pockets like mutual funds and other institutional players to start investing in forex for a beginner.

You don't need to have plenty of disposable income to start investing in forex; those who interested invest in forex little as £10 with the most broker. Ideally and my own experience was invested $2500 in the forex market in 2016.

LEARN TO TRADE BASICS FIRST BEFORE TRADE

Trading is often viewed as a high barrier-to-entry and lifelong career field. Set to high skill, ambition, patience, and willingness to take a risk and do it for a living. If you are anxious to get your trade forex started, you can get started right away without having a lot of forex knowledge about the forex market with forex mentor. Start by being a conservative forex trader like me with a low-risk tolerance. This will give you a way to making your money grow while you learn more about trading forex, meantime keep your part-time work somewhere else.

Why Forex Mentor Help To Gain?

• How to analyze forex market
• Risk management 
• Money management
• How to manage leverage
• How to develop a trading strategy 
• How to become a disciplined trader and 
• Learn about how to build a step by step portfolio management, etc. 

Regardless of how much you may have - those who invest little amounts over the long term on a regular basis, are likely to see their money work much harder for them.

We will ALL make mistakes over the course of our trading journey (I have as well), and it’s better to make the silliest mistakes when you’re starting off managing a ten-thousand-dollar portfolio compared to a six-figure one at the beginning. We’ve all heard of horror stories where some young, impulsive forex traders lost everything investing.

To flip it around, the opposite is true as well. For example, if you can’t successfully grow a ten-thousand-dollar portfolio by 20% over a period of time, what makes you think it’s going to be easier growing a hundred thousand or a million? It’s going to be much harder managing and growing a million dollars. (I can’t even imagine how tough it is for Warren Buffett to grow $280 billion by 20% every year!)

What Is The Minimum Capital To Start Forex Trading?

There are many opportunities in the foreign exchange markets to make money. This is illustrated by the growing popularity of Forex trading in recent years. One of the first questions posed by novice traders is what is the minimum amount to start Forex trading.

Before venturing into the world of trading recommends looking into the level of financial commitment required. Moreover, it is vital to learn about why it’s important to ensure you have sufficient disposable income.

Living we modern time, The internet age has made Forex trading accessible to everyone also learn. Pretty much everyone has an easy access to global brokers trading platforms. Many platforms provide opportunities to earn attractive rewards. It should come as no surprise that the amount of capital you have at your disposal will influence your ability to generate income from trading.

However, it is important to remember that platforms charge various fees - including exit fees in some cases; as well as platform fees and the ongoing fund manager charge.

There are other important factors that also you should look into such as which broker and trading platform to choose. However, but what is the minimum amount to start Forex trading is an important question. This is also one of the key factors in determining your ultimate success.

Before setting out, it is a good idea to consider 2 important issues to decide if you have what it takes.

Check Broker’s Minimum Deposit

The minimum deposit required to open a trading account is not the same as the amount of capital you need to start trading. Minimum deposit amounts depend on the broker. As a search on the internet will reveal, some will request relatively high initial first-time deposits while others require a lower deposit.

Assess Your Finances

As a new trader, you need to establish whether you have sufficient disposable income to invest in Forex trading. Not having enough risk capital may cause financial difficulties and could abruptly end your trading activities. This is something that inexperienced beginners should be aware of.

Even more experienced traders know that having insufficient risk capital and staking money you need on Forex is a recipe for a financial disaster. If your trades are not going in the desired direction, you’re more likely to panic and make the wrong decisions.

Deciding whether you have enough capital to start trading requires an assessment of your expectations from the market. It also requires the evaluation of the level of risk you are prepared to take. If you are looking for quick gains but have a limited amount of capital and are naturally cautious you are less likely to achieve your goals.

With these factors in mind, we can now take a closer look at what is the minimum amount to start Forex trading.

Get Set To Trade

One of the questions asked by most novice traders is whether it makes a difference if you open an account with $100 or $1,000. Indeed, it does. Traders who start with $100 are not likely to have much of an income stream. Additionally, some traders do not have the patience to allow their account to grow. They end up risking too much of their capital on each trade while trying to earn an income. These traders are likely to end up losing everything.

POPULAR TRADING STYLES

Get Yourself A Good Forex Education

First and foremost, you’ll have the chance to earn in the FX market if you get a good education about Forex. There are various trading currency mentor, tutorials, and even e-books, websites, and articles that can provide you with complete currency trading information. Never, ever try trading without even having a clear picture and understanding of the processes, techniques, etc, that are involved in the market. If you plan to become a Forex trader, pertinent education is a must.

How Much To Risk In Forex Trading

Many Forex experts advise never risking more than 1% of your capital on a single trade.

So, if you only have $100 in your account, you should only risk $1 per trade. This equates to taking a one micro lot position. This implies that each pip movement is worth approximately 10 cents. By trading in this way, it is possible to average around $2 profit a day.

While this will build an account slowly, it is preferable to risking $20 per trade or more to turn the initial $100 into thousands as quickly as possible. This may work for a time, but experience shows that this strategy will most likely result in a zero account balance.

Nevertheless, trading Forex with a very small amount of money offers almost no flexibility in the style of trading. If you deposit $100 and follow correct risk management protocols, you can only risk 10 pips if you take a 1 micro lot position. This effectively means you have to be an active day trader.

With a 10 pip stop, there is little chance you can swing trade. It also is less like that you invest as you’ll easily be stopped out should you try to hold out for long-term gains. Hence, it is preferable to invest more money into a Forex account to allow you to trade more productively.

If you are ready to grow your account slowly, you can start with as little as $500. Yet, it is probably worth considering starting with at least a $1,000. In fact, some seasoned traders recommend at least $3,000 for day trading.

With a $3,000 account and risking no more than 1% of your account on each trade i.e. $30, it is possible to make in excess of $70 per day. Where the aim is to capture longer-term moves, you may wish to consider starting out with $5,000. This would make you about $100 to $120 per week, which is more of an income stream.

Final word
Your personal trading style will ultimately determine your income potential. However, in terms of what is the minimum amount to start Forex trading, it is very much a case of what you put in, you get out. Hence, the amount you wish to invest will play a significant part in your ability to achieve your financial goals.

Trading Capital Do Forex Trader Need To Start

Chart Pattern Is Worth A Thousand Numbers

Chitika   Maret 25, 2018

Chart Pattern Is Worth A Thousand Numbers

Finding Chart Pattern That Can Lead To Big Profits

Top forex traders may argue that your ability to find chart patterns is worth a thousand numbers and a direct correlation to your ability to generate profits. Read this forex blog from forex friend loan describes finding chart pattern that can lead to big profits is in technical analysis to predict possible forex trend direction. Understanding basic chart patterns is integral to preserving your capital which you must do before you even generate profits.

Perfect your chart reading skills because a chart is the trader’s guide to ultimate profitability. For each trading style, from scalping and day trading to swing trading and long-term investing, a chart is worth a thousand number. Professional traders rely on their charts for consistent profits and for guidance on what to do next.

A chart is the trader’s guide to ultimate profitability. For each trading style, from scalping and day trading to swing trading and long-term investing, a chart is worth a thousand numbers. Professional traders rely on their charts for consistent profits and for guidance on how to act next. Charts and trading plans coexisting many ways, a chart is as much of a trading plan as anything else.

It maps out the history of the price in many different scenarios. The chart is just as much a historical reference as anything else, allowing the trader to see how the price has changed over time and proving that results are obtainable with a good trading system. Just take a look at the ups and downs of a forex pair and you’ll see many moves that happen just over a few months that could have made you a big profit.

The professional traders make their living deciphering the code of the ever-changing chart. By studying the ups and downs and everything in between, traders look for returns based on what history has shown them – and what is lined up for the future. When you are in the market, it is important to remember that charts are like a condensed version of history; they repeat themselves over and over and over. Knowing this, professional traders must take a step back and look at all of the information shown in a chart to capitalize on future movements in price.

Each chart means something to everyone else with a day trading perspective, a large peak might show a top.
However, while keeping a long-term investing perspective, it’s merely a small bump in the bottom of a chart pattern. Keep in mind that what you see will differentiate over different time periods. To a long-term investor, the peak was just a bump in the bottom of a chart, while to a day trader, it was a huge mountain ready to fall. Each trader will ultimately view each chart differently, but can still profit from what they see.

HOW TO SPOT FOREX TREND EASILY

The day trading perspective probably sold short for a modest gain, while the investor held on for the long term and locked inconsistent profits. They saw two different things but were both able to cash in: that’s the beauty of chart reading. Profitable traders find the best chart patterns and profit enormously. Chart patterns are an important part of their tools to make consistent profits along with a complete trading plan. The only secret is that hard work pays off in the end.

Professional traders have their own set of patterns. They use to predict the markets. Profitable traders are aware enough to generate a profit in nearly every market. Sideways trends, uptrends, and even downtrends can all be profitable with the proper tools and investment strategy. Creative techniques will help you preserve trading capital while generating huge profits.

To master trading, you must first understand the basic chart patterns. The Double Top and Bottom. The best and easiest chart pattern to recognize is the double top or double bottom. It is marked by two consecutive peaks or dips in price to about the same level. This chart pattern works because the first movement tests new boundaries, and then investors take profit and push the price down.

Then investors re-enter and push the market again to test its new area, while the market again corrects – although this time, there is usually plenty of buying or selling interest that is removed by the large price movements, and the price either tops or bottoms. When the price moves to a position twice, it encounters plenty of orders that were left at the last peak. On a double top, seller sentiment is extremely high, and investors are looking to short the market hard.

Very rarely do people buy when they see a double top, further compounding the move? Flagging Trendlines, Pennant flags are also a very identifiable charting pattern. A pennant flag is a sideways trend that forms where two trendlines meet. When two trendlines touch, buying and selling pressure battle each other out and usually end in a huge downtrend or uptrend immediately following the breakout.

Professional traders have developed very popular strategies such as “straddling” a position or placing a short order below the pennant and a long order above the pennant. When the breakout does happen, in either direction, a trader will automatically enter a position and profit from the breakout.

Head and Shoulders are important, Head and shoulder patterns are also very popular with professional traders.  Ahead and shoulder formation is created when the market makes a three topped chart, with one high peak in the middle surrounded by two lower peaks on each side. These usually mark a downtrend at the top of a chart and an uptrend when found upside down at the bottom of a chart.

The head and shoulders show large buying strength that eventually tapers off as investors take a profit.Reading charts is important in finding profitable opportunities in the market. Developing your ability to recognize patterns is key to growing a portfolio.

Why Look At Chart Patterns?

Chart patterns are naturally occurring patterns in the market that can indicate a big move either to the upside or the downside. Chart Patterns are a very useful tool in the trading world. They are patterns that can give you precise entry and exit signals, and allow you to catch the biggest moves in the market.

So why are they so important?  Why can they give you a great way to trade the forex market?

1. They offer you a target. Chart patterns normally have a target that you can shoot for. This means that when you enter the trade you know what you are planning to happen.

It can be hard to determine how much profit is enough. Where you are just being greedy, and where you still need to hang onto the trade. Well, chart patterns have targets so you know exactly when to take your profits and when to run.

2. They let you cut your losses. In addition to letting you know exactly where you should be aiming for they also allow you to know when the trade is just not working out and it is better if you just cut your losses short.

If a pattern breaks out but fails to move higher and in fact, the price of the stock goes back into the pattern it broke out of, that is a good sign that the pattern has failed and it is likely to start turning against you. So if it was me I would want to exit for a small loss before it became a big loss.

POPULAR TRADING STYLES

3. Lets you trade all time periods. If you want to be a day trader chart patterns can help you, if you want to hold your market for several days chart patterns can help you, and if you want to hold your market for many months chart patterns can help you.

The same principals apply so you only need to readjust your chart in order for you to trade your desired time frame.

4. They give you a buy signal. With chart patterns, you are no longer guessing when to get into a forex market or when to exit. The patterns have clear bought and sell signals that you can look at.   This lets you develop rules and get in without any emotional factors and eliminating emotions is one of the big keys to being successful in the market.

5. Small losses. You can use chart patterns to help keep your losses small because you know where to exit.  If a market breaks out of a pattern it is a buy signal if it goes back into a pattern, chances are that it will continue to work against you.

6. Manage risk. With chart patterns, you can manage how much you are going to risk on each trade.  When you buy a forex market you always want to have a stop on it just to tell you where you are going to cut your losses at. Well, when you buy a forex market breaking out of a chart pattern you get an idea of where you can place your stop at.

This allows you to be able to see how much you are probably risking on each trade by looking at the difference between the price of the market and support.

If you are just buying strong forex pair in forex market without a game plan to exit the trade you could be really hurting if the market does not go your way. Luckily chart patterns give you a point to cut your losses. If you buy a forex pair in forex market on a chart pattern breakout and it goes back into the pattern that is a sign that the market will probably go down lower and it is time to exit the trade.

Chart Pattern Is Worth A Thousand Numbers

Chart Trend Patterns

Chitika   Maret 18, 2018

Chart Trend Patterns

Chart Patterns? It's Easy If You Do It Smart

Chart Patterns Your Way To Success

The discussion is how to recognize forex chart trend patterns and chart patterns your way to success and trade reversals. In this forex blog from forex friend loan, Chart trend patterns can be very helpful when trading forex trader in the forex market. They can help you get into forex near the bottom or the top.

Chart patterns are one of the most effective trading tools for a forex trader. They are pure price-action and form on the basis of underlying buying and selling pressure. Chart patterns have a proven track-record, and traders use them to identify continuation or reversal signals, to open positions and identify price targets.

Why Forex Chart Patterns?

Chart patterns are naturally occurring patterns in the forex market that can indicate a big move either to the upside or the downside. They can be a good indicator for short-term movements.

So why are they so important? Why can they give you a great way to trade the forex market?

1. They offer you a target

Chart patterns normally have a target that you can shoot for. This means that when you enter the trade you know what you are planning to happen.

It can be hard to determine how much profit is enough. Where you are just being greedy, and where you still need to hang onto the trade.  Well, chart patterns have targets so you know exactly when to take your profits and when to run.

2. They Let You Cut Your Losses

In addition to letting you know exactly where you should be aiming for they also allow you to know when the trade is just not working out and it is better if you just cut your losses short.

If a pattern breaks out but fails to move higher and in fact, the price of the currency pairs goes back into the pattern it broke out of, that is a good sign that the pattern has failed and it is likely to start turning against you. So if it was me I would want to exit for a small loss before it became a big loss.

3. Lets you trade all Time Periods

If you want to be a day trader chart patterns can help you, if you want to hold your forex pairs for several days chart patterns can help and if you want to hold your forex pairs for many months chart patterns can help you.

The same principals apply so you only need to readjust your chart in order for you to trade your desired time frame.

LEARN TO TRADE BASICS FIRST BEFORE TRADE

Chart patterns are specific price formations on a chart that predict future price movements. As the technical analysis is based on the assumption that history repeats itself, popular chart patterns have shown that a specific price movement is following a particular formation of price (chart pattern) with high probability. Therefore, chart patterns are grouped into (1) Continuation Patterns – that signal a continuation of the underlying trend, and (2) Reversal Patterns – that signal reversal of the underlying trend.

So, what is a trend reversal pattern? They are simply patterns that are seen time and time again at the end of a trend. There are a number of different ones, Double Top/Bottom, Head and Shoulders, Rounding Top, Triple Top, Triple Bottom, Rounding Bottom and Cup & Handle, etc. But they tell you the same thing.

Part 1 Reversal Patterns

Double Top and Double Bottom
Double Top and Double Bottom are another reversal pattern, occurring during up- and downtrend, respectively. A double top, as the name suggests, has two swing highs at about the same, or slightly different price. It shows that buyers didn’t manage to push the price higher, and a trend reversal might be ahead. The trigger signal for opening a sell position is the break of the support line, with target price being the distance between the top and the support line of the formation. A double bottom pattern is the opposite, with two swing lows. Sellers didn’t have the power to move the price more downward. The trigger signal is the break of the resistance line, with the target price being the distance between the bottom and the resistance line.

Head and Shoulders
Head and Shoulders is a reversal chart pattern, that indicates the underlying trend is about to change. It consists of three swing highs, with the middle swing high being the highest (red lines on the chart). After the middle swing high, a lower high occurs which signals that buyers didn’t have enough strength to pull the price higher. The pattern looks like a head with a left and right shoulder (the three swing highs), and that’s how it got its name. The neckline is connecting the two shoulders, and a break-out below the neckline is considered a selling signal, with a price target being the distance from the top of the head to the neckline (green arrows). If the Head and Shoulders pattern occurs during a downtrend, the same inverse pattern (with three swing lows) is called an Inverse Head and Shoulders pattern.

Triple Top and Triple Bottom
Triple Top and Tripple Bottom formations are basically the same as Double Top and Double Bottom formations. Both are reversal patterns, with the difference that Triple Tops and Bottoms have three swing highs and swing lows, respectively. Trigger signals are again the break of support and resistance lines, with target prices being the distance between the top and support line (for Triple Tops), and bottom and resistance line (for Triple Bottoms).

Rounding Top
A Rounding Top pattern takes a little longer to form then the other mentioned chart patterns. It shows a gradual change of the sentiment from bullish to bearish. The price forms gradually a „rounded top“, as can be seen on the chart. The trigger for entering a short position is the break of the support line, with the price target equal the distance from the top to the support line.

Rounding Bottom
A Rounding Bottom is a Rounding Top flipped vertically. The price made a gradual change from the previous downtrend, indicated by a „rounded bottom“. The trigger signals are the same as by the Rounding Top, i.e. the break of the resistance line. Price target is the distance between the bottom and the resistance line.

Part 2 Continuation Chart Patterns
In this part, I will reveal the most popular continuation chart patterns. Continuation patterns are as important as reversal patterns. They are more suitable for a different style of trading- trend following. While reversal patterns are good for contrarian traders and swing traders, continuation patterns are considered to be great for finding a good entry point to follow the trend. The next few patterns will reveal a new angle to trading to you. I will start with the first one, which is the rectangle:

Rectangles
A rectangle is a continuation pattern, which means it confirms that the underlying trend should continue. It is divided into bullish and bearish rectangles, depending on the underlying trend. A bullish rectangle appears during an uptrend, when the price enters a congestion phase, during a sideways trading. The price will likely break out in the direction of the preceding trend. The trigger signal is the break of the upper line of the rectangle, with the price target being the height of the rectangle. For the bearish rectangle, the opposite rules apply. It forms during a prevailing downtrend when the price enters a congestion phase and trades sideways. This means the trend will most likely continue downwards, with the break of the lower rectangle line. The price target is again the height of the rectangle.

Wedges
A wedge is another continuation pattern. A bullish wedge forms during an uptrend, as the price trades inside converging trendlines. These converging trendlines imply that sellers are trying to push the price lower, but don’t have enough strength to win against the buyers. Ultimately, the buyers win and the price breaks through the upper trendline, indicating that the uptrend will resume. Target prices are calculated as the maximal height of the wedge, which is then projected to the point of break-out. A bearish wedge is similar to a bullish one, with the difference that it is appearing during downtrends, and the slope of the wedge is up. Converging trendlines are again showing that buyers interrupted the downtrend, trying to push prices higher. A break-out through the lower trendline indicates that sellers won the battle, and the downtrend is resuming. The target price is, like by bullish wedges, the maximal height of the wedge which is then projected to the point of break-out.

Flags
A flag is very similar to a wedge, with the difference that the trendlines which form the flag are parallel, and not converging. A flagpole is also a part of the flag pattern because the target price is measured in a different way than by other chart patterns. Flags can be bullish and bearish, with a bullish flag shown on the chart above. A bullish flag forms during an uptrend, with parallel trendlines above and below the price-action, which form a downslope. A break-out above confirms that the uptrend is resuming. A bearish flag is pretty much the same as a bullish flag, with the difference that it forms during downtrends and has an upslope. The price target is measured as the height of the flagpole (green arrow) to the top of the flag, which is then projected to the lowest point of a bullish flag (or highest point of a bearish flag).

TRADING FOREX WITH CANDLESTICK CHARTS

Triangles
Triangles can be ascending, descending and symmetrical. All three types of triangles look pretty much the same, with the difference that ascending triangles have a flat upper trendline, and descending triangles a flat lower trendline. The asymmetrical trendline is the most common, and forms during both up- and downtrend. It has converging trendlines, just like a wedge pattern, but the slope is neither pointing up or down. The breakout point of the lower trendline during downtrends confirms that the downtrend is resuming, while a breakout of the upper trendline during uptrends confirm the underlying uptrend. The target price is the height of the triangle, projected to the point of the breakout.

Cup and Handle
A Cup and Handle pattern is a Rounding Top pattern with an additional pullback (the handle). It is a continuation pattern which shows that in middle of an uptrend, the sellers tried to push the price lower, but the sentiment is again gradually changing from the sellers to the buyers. Additionally, a pullback occurs as the last attempt of the sellers to dominate. After a break-out of the resistance line (green dotted line), the target price is calculated as the height of the Cup & Handle pattern. An Inverse Cup & Handle pattern appears during downtrends, and the inverse rules of a regular Cup & Handle apply for it.

Every reversal pattern is said to have a target for which to shoot for. Most of these patterns will hit their target, but not all of the time. In fact, there are three different things that can happen when one of these patterns form.

Another thing that can happen is the forex market heads up once it breaks out. Then it goes and hits its target. Once it hits its target however the stock may actually crash. People see the forex as overvalued and a selloff occurs.

The third thing that can happen is the pattern can just fail. The forex doesn’t go up and actually breaks down lower.

All this uncertainty is why trend reversal trades need to cut their losses short and let their winners ride.

Chart patterns your way to success every trader should know.

This chart patterns your way to success might help you determine trend direction, but you should not rely solely on them. I have covered the major 10 chart patterns every trader should know. I believe that these are the most important ones, but if you feel like I have omitted an important one, please share.

Chart Trend Patterns

It's All About Learning How To Stick To One Strategy

Chitika   Desember 12, 2017

It's All About Learning How To Stick To One Strategy

Having A Trading Plan Before Trade Forex

My goal with this forex blog, It's all about learning how to stick to one forex trading strategy to share those keys that will help you stick to one trading strategy. Read this forex blog from forex friend loan, I'd remind you not to take them blindly. They've helped me to develop and trading the one trading strategy for close to 2 years now. For sure, I tweaked a few things here and there but not too much, and I don't see why I'd change things.

Are you one of that trader that make plans with every intention of carrying through with them and then at the last minute you are unable to stick to them? This can be very frustrating for you as well as for the traders around you.

If you would like to learn how to stick to your trading strategy and be a more reliable and productive person you can! It's never too late to learn how to follow through and you might find that one of the most helpful tools is the use of goal affirmations.

A trading strategy can make the difference. Just as you wouldn't tempt to travel across the country without some sort of map, Would you? You shouldn't contemplate entering the forex market without a trading strategy.

A well-designed trading strategy provides you with a roadmap to achieve your financial goals as a forex trader. It also enables you to measure your growth as a trader in the long term. The vast majority of novice and intermediate traders and investors will buy and sell without a trading plan.

The lack of a trading plan is one of the biggest differences between a novice, unsuccessful or struggling trader or an investor and the profitable traders and investors who have incredible, consistent success in the forex market.

Creating a trading plan does not have to be a difficult task. Often the simplest trading strategy is the most effective. The simpler your trading strategy the more straightforward your share trading plan will be when you record it on paper.

THE BEST TRADING PRINCIPLES ARE SIMPLE

Most of us either have our own computer or we at least have access to one. So there is no excuse for not being able to record your trading plan on paper. If you are really keen you could even create a trading plan pdf.

So what are some of the main benefits of trading with a trading plan? Well, to start with a trading plan that is designed correctly will be aligned with your trading experience, personality, mindset, risk tolerance, and financial goals.

In addition, a trading plan can give you better control of your trading with decisions based on your trading strategy and not on emotion. Your plan will tell you exactly what, when, and how to execute your trading decisions. It will also tell you when you should stand aside from the market when conditions do not suit your strategic edge.

Designed right your plan will give you the confidence to stick with your plan even during the lean times, particularly when you strike a series of losing trades.

Another important feature of your trading plan will be your ability to plot your development as a trader or investor. Properly thought out, your plan should give you a suitable benchmark against which you can track and measure your progress, both from a financial and personal growth perspective.

Remember, if you want to serious about your trading, you need to be able to compete with the market professionals. If you think you can get away with competing in the financial markets without a robust trading plan - your fooling yourself

If you are not too sure where to start or think that it all sounds too difficult, do not despair. The best way to construct your complete trading plan is to start with a trading plan template. That way you are assured of covering all the critical elements of a robust trading plan.

You can find them in many trading books. Forex trading plan templates are also available on many websites. But be warned. As with many things in life, "you get what you paid for". For that reason be wary of cheap or free trading plan templates. They are more often than not incomplete, flawed or part of some trading company's strategy to get you onto their mailing lists.

Spending a few dollars to purchase a trading plan template or handbook is more than likely going to be money well spent. A decision that will repay itself many times over.

Having a trading Plan Before Trading forex

It is very important to have a trading plan before trading. This way you know what to do in different circumstances. You should not be left trying to guess what you want to do with your trading positions but you should have a defined plan and stick with it.

Your trading plan should be determined before you enter a forex trade. It is easier to make rational decisions before you enter a trade than after you enter it. So, what should you include in your forex trading strategy?

HAVING TROUBLES FOLLOWING THE SAME TRADING STRATEGY?  

5 Essential Tips On How To Stick To One Forex Trading strategy

1. When are you going to enter the trade? You need to decide whether you going to enter based off of some technical indicator like a breakout or a bounce off of support? Do you look at any fundamentals? Deciding when to enter is a very important piece of the puzzle. You should have some consistency with this. Developing an entry that is consistent can help you in the long run.

2. How are you going to manage the position once you are in it? This is just as important as knowing when you are going to enter a position. You might decide you want to follow the position up with stops. If so how tight are you going to keep the stops? Do you manually adjust it or do you set a trailing stop? 

Maybe you don’t want to follow the trade up with a stop But however, your strategy for managing it is important to figure that out beforehand.

3. How do you plan on exiting the trade? This is probably the most important part of your trading strategy. You can do everything else right but if you mess this up it will not matter. Deciding whether to use a target or some other approach is very important.

4. Ignore the unnecessary info. I believe that you need to limit the information that enters your mind. This implies that you don’t need to try and be best at everything – choose something that interests you. However, I am not calling for you to close yourself from the information completely. It is very important to choose 3 – 4 topics that you like and become great at them.

One more point here: usually, newcomers in Forex try and read about everything at once, while searching for something like “how to trade Forex successfully”. I believe that the key here is to be more specific, as it will bring you real results.

Furthermore, you will need to really be patient and spend a lot of time mastering your trading execution. I recommend making it a habit to learn something new every day about the topic you are trying to master.

5. Understand how your Forex trading strategy works. Very often, we tend to switch to a new strategy when things are not really going as we planned it. We notice that our trading strategy is not really bringing the results we were expecting. However, is it really things going bad or is this a usual drawdown for our strategy?

Most of the time, it is the second option. I suggest testing the current strategy at a different point in time. It might show you the very similar drawdown. Do you think you are able to stick to one Forex trading strategy? 

Having a trading strategy is the first step for successful trading. It will not guarantee a profit but it is a good way to start.

It's All About Learning How To Stick To One Strategy

Having Trouble Build A Winning Trading Strategy

Having Trouble Build A Winning Trading Strategy

Chitika   Desember 05, 2017

How To Build A Winning Trading Strategy

Having Trouble Build A Winning Trading Strategy

This forex blog from forex friend loan will walk you through about how to build a winning trading strategy that the key components and benefits of a forex particular trading strategy.

When starting to trade Forex, the trader must build first his own forex trading strategy. This is important especially for beginner traders. The forex trading strategy is considered like a plan that identifies how the trading will go. This includes identifying the analytical ways the trader will use to know the currency pair trend. It also identifies how the money in the trading account will be managed. Here are considered general steps to build your forex trading strategy.

HAVING TROUBLE BUILD A WINNING TRADING STRATEGY

A Forex Trading strategy, if properly developed and followed will allow you to survive and make progress in the forex market. Without a strategy, you will be at the mercy of the next exciting story or be chasing a breakout (which can turn out to be a trap.)

One of the best analogies I heard to trading was to imagine yourself as a hunter who lived in a secluded cabin in the woods.

The hunter knew they would only be able to eat what they killed and that many of the animals were dangerous, so they needed to plan their attack with precision. The precise plan involved them only exiting their cabin when they a wounded animal passed nearby so they could leave the cabin, kill their prey, and take it back for food without too much risk on their part.

The connection of the hunter in the woods to trading is necessary. You should always be looking for the best set-ups, which are never guaranteed to produce a profit but are opportunities with controlled risk. Continuing with the analogy, a trader without a trading strategy is like a hunter without a cabin, always exposed to attack and likely trying to hunt animals that outmatch him and thereby present a negatively skewed risk.

Having trouble build a winning trading strategy? So how do you build a winning trading strategy that keeps your risk minimal while allowing you to trade the forex market?

You need to identify a handful of key trading aspects that suit your skill-set best. Let us see first what makes the forex trading system a successful one. It must have three main features:

1. It must be simple: when building the forex trading strategy, be sure to make it simple. A complicated analysis will confuse you and lead you to fail. The number of technical tools you use to identify the trend must be two or three at most.

2. It must go up the profits and cut the losses: when you see a trend and use the forex trading system you built, it must continue opening the deal if the profits going high and close the deal if the losses going on.

3. It can follow long-term trends: long-term trends earn more money to make the forex trading system follow long-term trends.

My 5 Steps To Build A Forex Trading Strategy

1. Your Method
This means the rules you use to identify the trend and the how the money is managed in the forex account. As stated above, it must be simple to ease the usage of it.

Identify your analytical techniques: in forex trading, currency pair trend prediction is the key to be successful in forex. If you are well able to predict where the currency pair will go in the future, you will be able to earn money.

There are two basic ways to use: fundamental analysis and technical analysis. Fundamental analysis means to track economic news of the countries that own the currency you are trading and use the news you are reading or hearing to measure the economy of that country. This way is suited for long-term trades or trades that use large time intervals such as weeks or months.

On the other hand, technical analysis uses the charts directly to predict the trend of the currency pair you are trading. Every forex trading chart supplies you with huge tools that allow you to read the chart more intelligently. These tools can be studied in any forex contexts but the most common are the moving averages, the pivot point analysis, the MACD, the stochastic indicator, and the RSI indicator.

In an analytical analysis, you just identify two or three tools from the tools mentioned above and add them to the chart. This will allow you to study the chart and know the currency pair trend. When choosing the analytical tools, you must not use too many tools because this will make the analysis complicated. Only two or three tools are sufficient.

Second, the analytical methods which will be used during forex trading must be planned carefully. This step is considered the most important one in the forex trading strategy.  It can be fundamental or technical schemes. The technical analysis depends on analyzing the curve of the currency pair price which will be traded. It uses technical schemes in order to predict the price movement in the future based on the history of the price. The most popular schemes are simple moving average, exponential moving average, stochastic, Relative Strength Index, MACD, and pivot point trading. The fundamental analysis depends on economic news analysis

DOUBLE YOUR PROFIT WITH MACD

2. Use Breakout In Your Strategy
The term breakout is used to mean that the price is reached a level that the price can go beyond it for a long time. If breakout occurred, then there is a long probability that it will continue largely in that direction. The forex trading system that you build using that fact can do well.

3. Identify The Time Entry
an entry point is a price you enter a deal at it or the price at which you buy or sell. When building a forex trading system, one of the basic factors to consider is when to enter a trade and when to exit a trade. If we use the breakout condition in our system, we can identify the entry point as the breakout point. To confirm, we can wait until the high stochastic crosses the low stochastic.

4. Identify When To Exit
You must also define the exit point in your forex trading system. If you use breakout on your system and entered a trade, you can monitor if the price goes above the breakout point. If it does it will turn into profits. If it goes below don’t exist below the breakout level at the same time. You can wait for one day and exit if it reaches after one day assuming you are working with the weekly chart.

5. Money Management
This topic is one of the most important things to consider when building the forex trading system. What is meant by money management is to know the percentage of your money to enter a trade with, the percentage of risk and the number of profits to take. This can differ according to the account size.

The following weeks will break each of these strategy components down so you will know how to develop a style custom suited to you. Just like a set of golf clubs that aren't fit your body-style can wreak havoc on your golf game, trying to fit someone else's plan that has shown success because it was suitable to their skill-set could produce horrible results for you.  If you're brand new to trading and currently are working on a demo account, this will still be a great benefit to your trading.

Know that you know the components of a trading plan that are needed; here is a breakdown of the benefits. First, with a well-thought-out trading plan, you will be able to monitor your open trades with ease according to your trading plan. Secondly, a trading plan can introduce consistency that can help you turn your trading into a business. Lastly, a trading plan will help you qualify current market opportunities as well as knowing which opportunities are NOT worth trading.

I'd like to leave you with a quote from one of the best books on trading psychology in the market, Trading In The Zone, by Market Douglas.

"If there is such a thing as a secret to the nature of trading, this is it: At the very core of one’s ability
1) to trade without fear or overconfidence,
2) perceive what the market is offering from its perspective,
3) stay completely focused on the “now moment opportunity flow,” and
4) spontaneously enter the “zone,” it is a strong virtually unshakeable belief in an uncertain outcome with an edge in your favor.

The best traders have evolved to the point where they believe, without a shred of doubt or internal conflict that "anything can happen."

How To Build A Winning Trading Strategy

How To Catch Trend For Big Gains

Chitika   November 27, 2017

How To Catch Trend For Big Gains

How To Catch Trend For Big Gains In Forex

This forex blog from forex friend loan will look at the most important key to success in the forex market about how to catch trend for big gains in forex.

Recognizing positive trends is difficult in the forex market, getting in or out too late could mean your entire bankroll. You do not have to be the best of the best in order to make a profit, but you do need to get in at a low enough point and get out at a high enough point to make a profit. If you do not recognize the right forex trading strategy, you will wind up getting buried and be out of the game before you ever even got your feet wet.

If you take the proper precautions before trading you can help yourself a great deal. I personally know a number of traders who have been interested in getting into the forex market but don't want to stake the risk associated with it. I've been a regular forex trader for a few years and stand by my claims that there's only as much risk as you leave room for. If you take the proper precautions before trading you can help yourself a great deal.

A trend indicator is an important tool which I use daily in each of my forex campaigns. For those who are unaware, this is a program which you use in conjunction with your campaign and it essentially predicts where the market will go before it happens. If you read and use this information to its full potential, you can dominate sects of the market.

CATCHING BIG TREND CAN BE EASY WITH THE RIGHT FOREX INDICATOR

We shall look at how to trade the trend in forex.

It has happened to us all before. We open the charts to see what the market holds in store for the day, and all that beams back to us is a confusing maze of candlesticks with no apparent pattern. When confronted with such a chart, the dilemma for the trader is whether to go long, go short or stay out of the market altogether.

Now to the untrained eye, it may all look pretty confusing, but it actually is not. Opportunities can be found in the midst of strong trends by following the steps set out below.

The first step is usually to establish that the asset has some form of a defined trend. This can be detected on a long-term chart if we see the candlesticks that depict price movement making higher highs and higher lows (uptrend) or making lower highs and lower lows (downtrend).

There are basically two things that can happen when an asset is a trend:

a) It will keep on trending strongly and only allow the trader to buy on dips and to sell any rallies.
b) The trend may dissolve into a period of consolidation, after which it either continues in the pre-existing trend or experiences a reversal.

How To Trade A Strong Trend In Forex Market

A strong trend usually occurs when there is a very strong fundamental force driving the currency pair which lingers in the market for a long time. When there is a strong trend in the asset, the best bet for a trader who wants to capitalize on what is going on is to buy whenever there is a dip in the price of the currency pair, or sell whenever there is a brief rally. What does it mean to sell a rally and buy a dip?

1. Buying The Dips, Selling The Rallies
Buying a dip and selling a rally is simply a popular market lingo which means to buy low and sell high. The buying at lows is done in a currency pair that is in a strong uptrend while selling at highs is done when the asset is in a downtrend. The driving force behind buying dips and selling rallies is that the price of an asset never moves in a straight line, but sometimes huffs and puffs along the way as it marches to its new levels. Such “huffs and puffs” as we call it are simply periods of profit-taking when traders who got into trades following the trend at an early stage have made some money and want to cash out some or all of it. At other times, some market events may make a good proportion of traders to have a rethink, or to re-evaluate positions before continuing to hold on to them. Sometimes there is a little of trade exiting and the entrance of new traders or addition to existing positions by those who still believe there is more money to be made on the trend. All these accounts for the brief periods when there are pullbacks that present the opportunity to either buy on dips or sell on rallies.

Now is it wise to simply buy on dips and sell on rallies? No. The dips must be buyable and the rallies must be sellable, otherwise what the trader may think was a dip to be bought or a rally to be sold may turn into full-fledged trend reversals which will cause the trades to end on the losing side. It is, therefore, good practice to use confirmatory filters for such trades. One way I do this is to look for the following:

a) Where such a retracement dip or retracement rally exists. For this, I use the Fibonacci retracement tool. I also consult lower time frame charts to confirm that there is indeed a retracement going on. If you use the daily chart for this, there may be some confusion as candles may be too close together to allow for visualization of clear retracements. Sometimes, only a single candle will show this retracement action, but if the lower time frame chart is used, what may look like a small single candle movement may well be a 300 pip retracement! Do not forget that in a daily chart, one candle represents the price activity for a whole trading day.

b) If the time is right to buy a dip or sell a rally. This is best deciphered by using oscillators that show where the asset is oversold or overbought. My favorite here is the Stochastics oscillator set to 10,3,3 which shows oversold status at 25 or below, and overbought status at 75 and above.

It is quite easy. Apply the Fibo retracement tool from swing high to low (downtrend) or from the swing low to high (uptrend). Then apply the Stochs oscillator, and look for where the price hits a retracement level when the asset is oversold to buy the dip, or when the asset is overbought to sell the rally.

Buy the dip…
Apply the Stochs oscillator, and look for where the price hits a retracement level

Sell the rally…
Sell the rally

Remember to always buy the dip in an uptrend, and sell the rally in a downtrend. Do not get these mixed up.

2. Trading The Breakouts
As identified earlier, there will be periods when the asset goes into consolidation as if unsure of what to do next. It may stay in consolidation for some time, presenting yet more opportunities to either buy low or sell high. Once the currency pair has made up its mind to keep moving like a traveler who just completed a stopover en route to the final destination, it takes off once more in the direction of the initial trend. This is a breakout and is yet another way to trade a strong trend.

We can see the initial trend, followed by a consolidation period and then a breakout. Within the area of consolidation, we can see the areas where the trader can buy on dips and sell on rallies. It is not hard to see why this is the case: there are a well-defined support and resistance, something which is not obvious if you are trading an active trend where the dip buying and really selling points must be deciphered as described above. Furthermore, there are other chart patterns which are classical continuation patterns where the price consolidates within their boundaries and eventually breaks out. Such continuation patterns are the ascending/descending triangles, flags and pennants.

Here, we are more concerned with the breakout. In a breakout, the trader is actually buying into highs and selling into lows, a direct opposite of the dip and really trade described above. You could call it selling the dips and buying the rallies. But why would this be another trading strategy for trading the trend?

Breakouts are usually the result of market fundamentals driving the asset in the direction of the initial trend. It could be due to a high-impact news release which drives traders into mass buying or selling following a period of waiting (the consolidation). It could also be due to technical plays where more players in the market assume a buying posture than a selling one (ascending triangle, bullish flag, bullish pennant) or assume a selling posture than a buying one (descending triangle, bearish flag, bearish pennant).

Whatever the case, a breakout presents fantastic trade opportunities. We have written about this in some of our earlier posts. It is easy to confirm if an asset has truly broken out or merely performed a fakeout move. Refer to our article on breakout trading to refresh your memory about how to identify a true breakout (which is tradable) and a fakeout (which is a trap).

We can clearly see the breakout bullish candle which produced the key to trade entry.

Conclusion
In summary, You can get in a profitable trade at the ground floor, then get out right as it peaks before it comes back down. This is the secret to success and owning this market, it's been the same for years ever since people began trading, but now thanks to trend indicators it's a great deal more reliable to trade this way, in getting back to reducing the risk factor.

When you open your charts for the day, first determine what the trend for the asset is. Then assess its suitability for a breakout trade or for a buy on dip/sell on rally strategy. With a little practice on a demo, the charts will not faze you anymore and you can then use the knowledge to make profits for yourself and transfer knowledge to others for a fee if you like.

How To Catch Trend For Big Gains

Working Smarter To Boost Blog Traffic

Chitika   November 22, 2017

Working Smarter To Boost Blog Traffic

How To Boost Blog Traffic

Let's review this blog from forex friend loan about working smarter to boost blog traffic. A home business blog is a great vehicle for becoming successful when marketing on the internet. One of the biggest challenges, however, is maintaining a constant flow of blog traffic to grow both your subscribers and sales.

Operating a home business blog involves effectively completing numerous tasks if you have intentions of successfully marketing on the internet. The root of your success will be in the amount of blog traffic you can attract. Immediately behind this will be the amount of loyalty you can generate with the blog reader to continue to return to your site.

A steady and returning flow of blog traffic is what is needed to firmly establish the site. There are many 'strategy' available in which you can generate traffic to your site, some are effective while others take more time than they are worth. One thing that goes without question, however, is that the foundation of the blog building process is built upon posting good quality information. Attracting visitors is one thing but giving them a reason to return is the role that the quality of your blog posting needs to fill. Since maintaining a blogging platform at the least takes a good amount of time, it is important to learn to work as efficiently as possible!

SHE SOLD 122 SUBSCRIPTIONS FOR $47 EACH 

If your blog posting habits consist of frequent and quality updates than you are halfway home to increase your flow of traffic.

Some of the most effective ways to increase blog traffic are actually quite simple and strategic in nature. In fact, some of these techniques should already be part of your blogging routine. Let's review 18 straightforward and uncomplicated blogging tips you start using today to increase your traffic and keep your readers returning and also building your list of subscribers.

18 Powerful Ways To Boost Blog Traffic

1. Use Keywords To Increase Blog Traffic
First, you want to use keywords throughout your blog. Doing so will not only draw readers to your blog but it will bring in individuals who are interested in the topic areas which your blog covers.

2. Give Your Readers A Reason To Visit Your Blog
In addition to offering free e-books via your blog, you want to find other ways to get readers to visit your blog. Try offering contests and valuable information which visitors will want to take advantage of. If they find that your blog is helpful they will keep reading it and tell their friends about it also which will increase blog traffic to your site.

3. Post Content Worth Viewing
As was mentioned above, at the core of the blog building process is quality information. Oh sure you can post just about any low-grade content you want, but when people come to view it, they will likely not return! First and foremost make sure your site is worth the visit!

4. Bookmark Your Best Posts
Creating good content for your blog posting needs will be time-consuming therefore you want to manage your time wisely. No matter how great the information you post may be, it will do you or anybody else little good if nobody knows it exists! You need to generate traffic and this task can also be time to consume, so here is where you learn to work smarter. Post your updates to social bookmarking sites and let the site members help you circulate it online. Of course, you only want to post quality information, but that should not be a problem since all your content will be of a high grade, right?

5. A Tweet Is Sweet
Little time or effort is needed to notify your followers on Twitter of your latest blog entry. If your post is intriguing enough they will share it with their followers as well! You do not necessarily need to have a large following for this to be effective, as long as others share your content. Just be sure what you post is worth sharing and you are good to go! There is something to be said about the amazing viral powers this particular social network site has!

6. Post 'Pillar' Articles
Upon the launch of your site, it is often suggested to compose a series of article-length posts to establish some immediate quality content to your site. These 'pillar' articles target teaching the reader something while helping to help the author develop some credibility.

Consider making it a 'periodic' habit of incorporating these types of entries into your blog posting routine. An occasional 'infusion' of such quality content will add to the satisfaction of the readers and increases your blog traffic.

7. Leave Comments On Other Blogs
You should already be visiting other blogs in your niche to get new ideas on topics and layout designs so become involved in their discussions. When appropriate leave comments that are useful and/or insightful for the other readers. In doing so leave a signature card that reflects a link back to your site. Over time if your comments are good enough people will visit your link to find out more about you and what you do.

8. Encourage Comments
Always allow comments on your site and encourage people to leave them. By letting the blog reader know you want to hear from them you are promoting more interaction on your site. Upon seeing signs of such interactions many visitors 'passing by' are then tempted to stick around and participate.

Remember blogs are first and foremost sites where visitors like to congregate and interact so ALWAYS promote that atmosphere!

9. Post Regularly
Post to your site on a regular basis so your readers will know what to expect from you. The fresher the content you have on your blog the more often not only will readers visit but also search engines. You now are developing a stronger loyalty to the reader while also increasing your search engine ranking. All this will ultimately add up to more readers which add up to more income if that is of any interest to you!

10. Elicit Comments
When blog posting does not be afraid to rattle cages or ruffle feathers with your readers. You want to 'stimulate' your readers with entries that get them thinking which will compel them to comment. The more they comment the more involved in your blog posting they will become therefore the more likely they will continue to return.

11. Respond to Comments
Do not leave your readers 'hanging' if they comment on something and you do not respond. This is not to say you need to respond to every comment but on only those that warrant a reply. The interactivity of a blog is what makes them so popular so do not kill this spirit by neglecting to reply when appropriate.

12. Invite Guest Bloggers
Be open to inviting an occasional guest blogger to leave a post on your site. This will help to 'spice' things up on your blog by injecting new 'blood' or perspective into it and will serve to increase the interest levels of your readers. It will also give you a new source of content and probably a much-needed break from your blogging duties.

13. Optimize Your Content
By selecting those keywords and phrases that are most relevant to your content you have a great start at optimizing it with these keywords. By taking your selected keywords you want to 'strategically' place them throughout the body of your post where the words fit in the best. Do not attempt to just stuff them into your content without careful consideration of where they are being placed. Your post will not make sense from a grammatical standpoint which will reflect upon you as a writer.

You do want to choose a primary keyword and place it in the title of your post.

By correctly choosing and placing your keywords you will be making your site more search engine friendly thereby making it easier for your content to be found and ranked. This, in turn, will result in higher rankings for you translating into more search engine traffic.

14. Page Linking
Your site will have multiple pages and it is best to make the effort to link these pages when you can. Page linking results when you place a link from one page on your site to another page that has similar or relevant content on it. What this does is it makes it easier for site visitors to find information on your site.

When you place internal links in this manner it also makes it easier for search engines to find all the relevant content your site offers. The net result here is that once again your ranking increases attracting more search engine traffic.

15. Offer Free E-books
A good way to get individuals hooked on your blog is to offer them something for free such as free e-books. E-books are multiple page writings which offer information and solutions on a variety of topics. Try to write an e-book or hire someone to do so and then post it on your blog. Advertise the free e-book over the Internet and by doing so you will ultimately increase the amount of traffic to your blog, please the readers and get them to come back for more.

16. Focus On One Specific Topic
You have to remember not to spread yourself too thin when writing a blog. You want the blog to focus on one specific area which will draw individuals to it by way of backlinks and search engines. By focusing on one area you will find that your blog traffic increases more than if you were to talk about various things on a random basis.

17. Sell Things Via Your Blog
Although some blog readers are just there to read the words and that's all, many others are interested in making purchases along the way. With that said, you want to provide them with the opportunity to buy something while reading your blog, whether it be your own items or ones provided by outside companies through affiliate programs and pay per click programs.

18. Have The Main Point Of Your Blog
Most blog surfers do not want to read a blog which is circuitous in nature. They want to read a blog which has true depth and the main point of it. Therefore, make sure that your blog has a main point within it and gets to that point in each and every blog posting. This too will increase blog traffic for you.

A home business blog is a great platform for marketing on the internet provided certain tasks are routinely completed. The continual need to generate blog traffic is fundamental to your success as is nurturing the loyalty of the blog reader once they arrive. By implementing the 18 simple blogging tips we discussed above you should have no problem attracting and retaining all the traffic you will need to be successful online.

Developing and maintaining a steady flow of blog traffic is ultimately what the success of your site will be based upon. Everything starts with taking measures to ensure your blog posting consistently contains quality information that will encourage visitors to return. Creating an online awareness of your updates is equally important, and doing so in an efficient manner will leave you more time to create fresh content. quality information for your readers will help to give your site long-term success.

Working Smarter To Boost Blog Traffic

Trend Trading Strategy

Chitika   November 17, 2017

Trend Trading Strategy

How To Follow Trend Trading Strategy

The aim of this forex blog from forex friend loan is to show a trend trading strategy tips when trading a trend. Though forex markets show a significant level of volatility, currencies also show strong trends. In order to become a successful forex trend trader, you need to identify these trends and learn to follow them.

They say the trend is your friend. Or, ride the trend until its end. But, what should a trend trader do to ride a Forex trend?

Trading is not for everyone. Everyone wants to trade trending markets. The problem is that trends do not form that often. However, there’s a catch!

Even if a currency pair ranges on the bigger time frames, on the lower ones small trends appear. As such, a Forex trend strategy gives results on lower time frames while the market consolidates on the bigger ones.

The biggest enemy of a Forex trend is the trader. Do you know the reason why most traders fail? They can’t handle the market heat. They only looking short term winning. Fear and greed take control of their decisions.

Therefore, instead of letting the profits run, retail traders settle for small wins. However, when it comes to cutting the losses quick, the reaction differs.

As a rule, traders find it extremely difficult to cut losses. But, equally difficult is to let the profits run.

A trend trading strategy must let the profits run. Moreover, Forex trends reversals must be part of such a strategy.

In Forex trading, any strategy without money management rules won’t survive the test of time. If traders start with the intention of buying the absolute low or selling the absolute high, they’ll fail.

Forex trend signals do not differ than reversal signals. From a money management point of view, they’re the same. Furthermore, combining a Forex trend approach with reversal strategies will make the trend trader a complete trader.

USE THIS SIMPLE TREND TRADING STRATEGY FOR BIG PROFITS

Types Of Trends
When the average price of a currency moves to a particular direction repeatedly then that is termed a trend. There are three types of trends found in the forex market: Long term, Medium term, and short term.

The trend that has a duration of greater than 6 weeks is called a long-term trend.
A medium-term trend lasts from 1 to maximum 6 weeks.
Finally, a short-term trend occurs for a very short period of time - from 30 minutes to a week.

Most of the successful traders made their fortune by following either long or medium term trends as they are easy to identify and less risky to trade. In contrast, short-term trends often reverse suddenly, and the increase trading costs of moving in and out of positions mean that short-term trend following is less profitable.

Causes Of Trends
The economic condition of a country plays a significant role in the occurrence of a trend regarding its currency. Good economic conditions appreciate the value of a currency relative to others whilst a negative economic outlook depreciates the currency.  Since the economy of a country changes fairly slowly, the trends can be quite a long term.

The trend of a currency depends on perceptions of traders, based on the known economic information. Traders often come to a consensus, and this opinion tends to result in trends.

Also when a trend is identified, the majority of the traders tend to follow that which reinforces the trend.

Profiting From Trends
Identifying a trend and knowing the entry and exit point of it is the key to your success in forex trading. Every currency has its own trend with unique characteristics. You can identify the trend of a currency by comparing its present price movement with historical data. You need to enter the trend on the basis of its direction. When you see the trend is about to exhaust, close your trades.

For example, if US dollar loses its value against the other major currencies, you can recognize the trend regarding this and can buy EUR/USD pairs. You need to set the stop loss point to a level where the stop will only get activated if the trend changes its direction. You should not over- leverage yourself as you are going for the long-term trend and need to withstand some short-term adverse movements. You can understand the movement by closely observing the price chart.

Trading Tips Every Forex Trend Trader Should Know

What is a trend in forex trading?

When the market, or the price, moves, the market trends. The longer the move takes, the stronger the trend is.

The bigger the time frame is, the stronger the implications for that currency pair and for the entire Forex dashboard. Imagine, for example, the EURUSD drops two thousand pips in a strong trend.

Because this is the most important currency pair, the implications go beyond it. Other U.S. Dollar and Euro pairs will adjust their rates.

Forex trend trading as a strategy considers the way the market moves. A trend trader will look at clues the market makes. These clues help to define the overall Forex trend.

Lower Highs And Higher Lows
The first clue that a market forms a trend comes from a very simple sequence: lower highs or higher lows. Any Forex trend trading strategy should start from this point.

A Forex trend continues with the market moving relentlessly in the same direction. Trends may look aggressive on the hourly chart. But, on the daily, or higher, the market may simply correct.

Traders that have a trend trading system always pay attention to this higher lows/lower highs series. As long as the series holds, the trend goes.

Earlier in the forex blog, I explained why retail traders fail to be trend followers. Many think they ride the trend. But, they’re not!

The problem comes from the time frame. People don’t have patience. Forex traders don’t have patience at all. This is normal because they deal with money.

Whenever money or a possible profit gets involved, things get messy. A trend trader’s first task is to have a different Forex trend approach to different time frames.

To this, I would add that a proper Forex trend analysis involves both patience and discipline. Regardless the time frame. If you consider the time frame (daily!), there’s a scope for tremendous profits. And the pair didn’t disappoint.

Trend Trader - The Two Points Strategy
Any trend trader must follow this rule: A Forex trendline gives the trend. In plain English, the trend line represents the line of the trend. Hence, you mustn’t ignore it.

Moreover, a trend trader knows a trend will, eventually, the end. As such, Trader will look for clues to spot the trend reversal.

The two points strategy consists of…you guessed it, two points! A trend line needs only two points.

The thing to do is to connect the two points (in this case, the two lower highs) and drag the trend line further on the right side of the chart. Trading is easy until a Forex Breakout in the main trend occurs.

Aggressive traders always look to buy the dip or sell the top. But, without a money management system, such an approach will end up failing.

How about that for a trade! Nevertheless, if you’re honest with yourself, as a retail trader, you won’t normally trade like this. Why not? Isn’t this a nice Forex trend system? Of course, it is. But, again, the problem comes from the execution part.

Riding A Forex Trend
One of the biggest problems a trend trader faces is related to timing. When is the best time/place to enter a trade?

The classical Forex trend following strategy says that you should buy the dip in a bullish trend. Or, sell the spike in a bearish one.

This sounds like a cool advice. But, can we have some rules? Can we, as traders, put this in some sort of trading plan? Can we have a clear entry, stop loss and take profit level, while still riding the trend?

The answer is yes. Forex trend trading strategies must follow a money management system. Without it, trading is useless.

Look For A New High/Low 
A trend trader has more patience than the regular retail trader. Scalping is not trader thing. When riding a Forex trend, every step is a planned one. When to buy or sell? A trend trader knows in advance the answer to these questions.

Let’s go back to the two-point strategy mentioned earlier. A Forex trend line strategy starts with these two points.

After drawing a trend line, all eyes should be on the moment the price pierces it. When this happens, traders face two outcomes:
– the trend line’s break could be fake.
– the trend may reverse.

How to distinguish between the two? Moreover, how to make sure the trend still runs?

Simply look for a new high in a bullish trend. Or, a new low in a bearish one. Buying takes place either from lower or higher levels. Never be afraid to buy new highs! Buying a new high means buying strength. Traders go long when new opportunities arise.

In the case above, after the two Forex trendlines show how to do it. Wait for the price to break the first one, then look for a new high.

Buy that high, place a stop loss at the previous swing’s lows and use an appropriate risk-reward ration. However, you want to make sure you stay in the trend. Hence, book half profits at the risk-reward ratio level, and trail the rest. This way, you’ll end up riding the trend until its end.

Where To Add A Position
What is the best place to add to a position?

If the trend is strong enough when to buy/sell without meaningful drawdowns? One Forex trend following strategy helps.

The way to deal with this is to use an oscillator. Any oscillator will do. However, the RSI Technical Indicator works amazing!

To make sure the Forex trend following works, simply use the overbought or oversold levels to add to a position. The Forex trend in the chart below starts with the first two points that give the Forex trendline trading strategy. By connecting the two points, you’ll have the trend line. If you project it forward on the right side of the chart, it gives the overall trend.

The RSI, in this case, acts as the best Forex trend indicator. A trend trader first looks at the trend’s direction: bullish or bearish. In this case, a bearish trend. However, the money management strategy will keep things nice and simple.

Different Forex Trend Trading Strategies
The biggest advantage of a trend is that you cannot miss it. That is if you pay attention to details.

As mentioned earlier, look for a series of lower highs in a bearish trend. Or, higher lows in a bullish one.

Then simply draw a trend line connecting the lowest points (in a bullish trend) or the highest ones (in a bearish trend). The resulting line is the best Forex trend line indicator.

Support And Resistance With A Forex Trendline Strategy
Everyone knows about support and resistance. But, few traders know that the most powerful support and resistance levels do not form horizontally.

They’re called dynamic support and resistance levels. When riding a Forex trend, they work like magic.
Riding a Forex trend is one thing. But picking up a top or a bottom after a Forex trend is another!

Yet, this is a risky approach and doesn’t represent a sound Forex trend trading system.

The bearish trend worked for quite some time. After the two points gave the Forex trendline strategy, a trend trader had great opportunities to ride the trend.

However, with a proper strategy, one can pick a top or a bottom. Again, patience is key!

AFTER the price breaks the trend line, a trend trader looks at resistance turning in support. In other words, buying starts.

DOWNLOAD FULL FREE PDF TREND TRADING STRATEGY

Conclusion
There’s no best trend indicator nor a Forex trend detector system that works all the time. Because the Forex market spends most of the time in ranges, a trend trader sees many fake moves.

But discipline overcomes setups. There’s no setup that work’s all the time. However, a Forex trend strategy works all the time.

The important thing is to make sure your account survives the next day. And the next one. And so on.

Retail traders face many headwinds. Trading algorithms (robots) govern the markets today. Yet, profits can be made riding trends.

Because the Forex market ranges most of the times, a trend trader goes on the lower time frames to catch the intraday moves. But this is a risky, as the market will swing from lows/highs simply because the previous lows/highs were broken

To make sure they survive in the long run, Forex trend traders look at the bigger time frames. The bigger picture always tells the truth.

Monthly, weekly and daily charts matter the most. They filter the noise in any given trading day and keep traders on the right side of the market.

All in all, every retail trader wants to ride a trend. Few make it, though. This forex blog explains why they fail and what to do to succeed.

Trend Trading Strategy

How To Choose A Forex Broker

Chitika   November 06, 2017

How To Choose A Forex Broker

What To Look For In A Forex Broker

Read this forex blog from forex friend loan about how to choose a forex broker. The retail forex market is so competitive that just thinking about having to sift through all the available brokers can give you a major headache. The best place to find the top forex brokers is to search the internet. You can find many full-service brokerage firms with forex brokers providing you with reliable trading and advice. Do some research to compare firms and their success rates with other.

The best place to find the top forex brokers is to search the internet. You can find many full-service brokerage firms with forex brokers providing you with reliable trading and advice. Do some research to compare firms and their success rates with other.

Since forex brokers operate differently than other brokers their commissions are paid from the spread the offer you. A spread is measured in pips and is the difference between the values of one bid from another bid. Make sure you understand the terms and conditions around charges and fees you will pay your broker on these trades.

Your broker should give you advice on the best spread for your trade and be readily accessible to you, and have a direct reliable access to the market. They should be accredited so they are familiar with all the terms and rules established by the exchanges you are trading.

When trading forex it is important that your broker is familiar with and offer stop losses. If they do offer this then you need to understand the charges and fees associated with stop losses. Your broker should also provide you information and advice around slippage and how to avoid this in your trading.

If you are experiencing slippage with your trading then you would do well to find a different forex broker. Slippage is the difference in the price you ask for compared to the price you obtain. Your broker should minimize this risk by holding your trading funds in an established credible bank and not in the brokerage holding accounts.

It is best not to use a brokerage firm that holds your funds in their holding account. It is also wise to test your new broker. Start out with small sums of money and determine whether your return is viable before you begin trading larger amounts.

Forex Trader Tips To When Choosing A Forex Broker

Most forex brokers would make use of online tools to facilitate faster transactions among their clients. Top forex brokers are usually formed by a group of individuals who are all in the field of forex brokerage.
Choosing which forex broker to trade with can be a very overwhelming task especially if you don’t know what you should be looking for.

In this section, To help you find the best professionals out there who can help you with the trade, here are some important things you need to consider for when picking a forex broker.

1. Security
The first and foremost characteristic that a good broker must have is a high level of security. After all, you’re not going to hand over thousands of dollars to a person who simply claims he’s legit, right?

Fortunately, checking the credibility of a forex broker isn’t very hard. There are regulatory agencies all over the world that separate the trustworthy from the fraudulent.

Below is a list of countries with their corresponding regulatory bodies:

United States: National Futures Association (NFA) and Commodity Futures Trading Commission (CFTC)
United Kingdom: Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA)
Australia: Australian Securities and Investment Commission (ASIC)
Switzerland: Swiss Federal Banking Commission (SFBC)
Germany: Bundesanstalt für Finanzdienstleistungsaufsicht (BaFIN)
France: Autorité des Marchés Financiers (AMF)
Canada:  Autorité des Marchés Financiers (AMF)

Before even THINKING of putting your money in a broker, make sure that the broker is a member of the regulatory bodies mentioned above.

2. Transaction Costs
No matter what kind of currency trader you are, like it or not, you will always be subject to transaction costs.

Every single time you enter a trade, you will have to pay for either the spread or a commission so it is only natural to look for the most affordable and cheapest rates.
Sometimes you may need to sacrifice low transaction for a more reliable broker.

Make sure you know if you need tight spreads for your type of trading, and then review your available options. It’s all about finding the correct balance between security and low transaction costs.

3. Deposit and Withdrawal
Good FX brokers will allow you to deposit funds and withdraw your earnings hassle-free.

Brokers really have no reason to make it hard for you to withdraw your profits because the only reason they hold your funds is to facilitate trading.

Your broker only holds your money to make trading easier so there is no reason for you to have a hard time getting the profits you have earned. Your broker should make sure that the withdrawal process is speedy and smooth.

4. Trading Platform
In online forex trading, most trading activity happens through the brokers’ trading platform. This means that the trading platform of your broker must be user-friendly and stable.

When looking for a broker, always check what its trading platform has to offer.

Does it offer free news feed? How about easy-to-use technical and charting tools? Does it present you with all the information you will need to trade properly?

5. Execution
It is mandatory that your broker fills you at the best possible price for your orders.

Under normal market conditions (e.g. normal liquidity, no important news releases or surprise events), there really is no reason for your broker to not fill you at, or very close to, the market price you see when you click the “buy” or “sell” button.
For example, assuming you have a stable internet connection, if you click “buy” EUR/USD for 1.3000, you should get filled at that price or within micro-pips of it. The speed at which your orders get filled is very important, especially if you’re a scalper.

A few pips difference in price can make that much harder for you to win that trade.

6. Customer Service
Forex broker customer service isn't perfect, and therefore you must pick a broker that you could easily contact when problems arise.

The competence of brokers when dealing with an account or technical support issues is just as important as their performance on executing trades.

Brokers may be kind and helpful during the account opening process but have terrible “after sales” support.

7. Consultancy Services Offered
Top forex brokers would actually give you their consultancy services for free. This is like their premium offer if you choose to take hold of their services in the forex market. You should also inquire what specific type of consultancy will be given to you and if there are corresponding information collaterals that will be given in the process. After allFree Reprint Articles, it is also your broker's responsibility to update you on current forex market trends.

8. Reasonable Leverage
Leverage, in general, is what gives the Forex market a strong appeal to retail traders. However, the risks of trading with high leverage are just as great as the perks. Most serious brokers offer leverage ratios starting at 100:1 and going all the way up to 400:1. The greater the leverage, the greater the risk for the broker. If a broker offers a leverage that seems too high to you, this might be a good indication of the future of that broker or lack thereof.

-Stop Loss Protection: This is a feature that enables you to ensure that your losses do not exceed a certain amount. Most brokers offer this feature, but it is still important to verify with your broker before signing

To summarize, there are many things one must do before becoming a successful Forex trader, but one of the most important of all, if not the number one most crucial task, is finding a trustworthy professional broker. The above steps will assist you in doing just that.

How To Choose A Forex Broker