Forex stands for Foreign Exchange Market. This market is the largest and most liquid in the world today. One to three billion U.S. dollars changing hands at Forex every day. That's a lot of money. No stock market of a country approaching it.
This market is huge. Money is a sea full of sharks and dangerous waters, but also the only market in which at least hypothetically can make a million dollars in two weeks by itself? 1000th
I say theoretically, because what often happens is that people blindly put your money on Forex without knowing anything about it, and you lose your shirt. That's why I tell you: be careful! This market is profitable, but you need to learn the basics well, do your homework and very fair.
Remember that 95% of traders lose money, 5% to less than 1% to enrich themselves at the Forex. The good thing about this market is that you can make money without having a product or service, nothing to sell or to advertise. No need to spend a little money and paid according to their knowledge and experience.
This is the market where banks, transnational corporations and individual traders exchange one currency for another. I mean the spot market. It can run on a large influence up to 400 to claim 1, which means that for every dollar exchange you can withdraw 400th For example, if you have $ 1,000 in your account, you can trade up to $ 400,000.
This is dangerous. The experienced traders do not use this high leverage. On the other hand, leverage be good if you use it to their advantage to learn. However, this is sufficient to meet basic needs. To learn more about how this market emerged, its history, and yes, you read my other articles.
Let us now about strategies and how some traders make money in Forex talk. Must work starting with the words, that what works for me, not for you. The foreign exchange market is risky. This is a fact. But in the end I found a few strategies that could give newcomers an advantage over their competitors.
Forex trading is not as easy as you think. Today, you can earn a lot and tomorrow loses 40% of your original capital. Inexperienced traders often make the same mistakes again and again. I'll take some of them.
1 Not search for the Holy Grail of trading.
This is for people to lose the fear or are too greedy and want to get rich quickly. Even if it seems that the Forex market is the place to get rich quick. Yes, you can make over time and yes a lot of money, you do not need to sell anything, nor create or advertise a product. You have a lot to learn about what makes this market tick and what moves currency prices, how to manage your money effectively in order not to lose your shirt.
Many newcomers to spend a lot of time looking for a perfect strategy that will allow them to always win-win and never lose. You want to have guaranteed profits because they can not bear to lose and / or if you want to do too much (millions) quick so they can make a quick retreat and buy a villa in a beautiful tropical island far away. This does not happen.
Do not waste your time. A trading strategy that you have guaranteed profits do not exist. Trading is very risky. That is why it is so profitable is. Remember: "no risk, no reward." Therefore, do not try to win every time with every transaction. It's just not possible. There is no way to get rid of because of the uncertainty. What I mean is that no matter how effective it can be your trading strategy, sometimes not, and must be prepared to deal with.
Do not attempt a perfect strategy to find a millionaire fast corners, you just saved a lot of time and effort. Does not exist. If found, please tell me. First, I do not believe you. Secondly, I do not need. See below, as they say, I will not need it.
Two. Using technical analysis and fundamental analysis.
When I started trading I do not want to believe. I wanted to find a strategy which consisted of money management alone (which I explain below). This is not good! Money management is important, but it is necessary that the two anderen.Sie define ("predict") where the market about the effectiveness of the strategies depend technical sono.Analisi of fundamental and technical mastery is the possibility of future price movements by analyzing of price data in models and graphics to predict precedents.To obtain a plot of some data monnaies.Vérifiez observed and based on knowledge of technical analysis to "predict" with certain degree of accuracy where the market is.
Many brokers you can add technical indicators on the charts, while you work. You can test it on a demo account and see how to define the location, the future price movement of the currency that you want to replace. One of these mediators is www.oanda.com.Hay many technical indicators. I can not say what is most effective for you. Every trader is different. This is something you discover for yourself. There is a hidden or magic formula for forex trading secret. This is what you do every minute deal with graphics and checking the news that really counts.
The secret lies in your knowledge and general decisions. That comes with experience and practice. If you can open an account at one of these online brokers on paper before the trade to trade with real money so that you can learn and practice before risking capital.
Let me tell you about some technical indicators which can be used. You can use the MACD (Moving Average Convergence Divergence) Bollinger Bands, Pivot Points, RSI, Stochastic, Fibonacci, EMA, Elliot Waves and many others. In fact, there are many technical indicators but these are among the best known and used.
When you add technical indicators to the graphic the brokers software will automatically perform mathematical calculations, the interesting facts and chart patterns that can not easily see without these indicators reveal. You can technical indicators to create their own technical systems.
These systems do not work 100% of the time, but if they work 70% - 80% to be sufficient. This is because you described the risks that can control using the techniques of money management, as below.
To further increase the chances of winning and minimize the chances of losing on every trade you can use fundamental analysis. I think most traders choose one or the other, but many traders use both.
Fundamental analysis is to exchange news. What happens to the economies of the currency that you trade? What is the unemployment rate? Is there suddenly something happens that could have a significant impact on the price of the coins?
It adopts the techniques of money management. This is what makes or breaks. Put it this way, most traders too much of your trading capital to invest in each trade. E 'as follows. "Do you expect to do too much and do too little expect to make little and give you a lot."
What does this mean? This means that if you try to make a fortune for each transaction, you will lose your shirt. If you do a little of each trade and plan to connect your profits, you can make a lot of money in the long run.
The first rule of money management says that you should not risk more than 1% of the money that you have in your account. You can use this risk with stop loss and limit orders control. When you start trading, it may seem small profits, especially if you start with very little investment. On the other hand, if you aggravate some or all of the benefits that you want to increase your income exponentially over time.
The magic of compound interest is amazing! This is the way that most of the assets in the financial markets gradually emerge. If you play, you can quickly lose your money.
Many traders do exactly the opposite. Imagine that you open an account with $ 5,000 and give you a deal for $ 1,000. Say that the market moves against you, and you lose $ 1,000. Now you have $ 4,000 in your account. Do you think that the price of the currencies is too low, so it must be restored. In fact, you are sure that you will return.
Then you invest $ 1500 to recover the previous loss has made a profit of more than $ 500th The market goes against you. It is always in the same direction, something unexpected. What's going on? Now you have $ 2,500 in your Konto.Das is 50% of the shares in early trading. It will be very difficult for you to recover from this loss.
On the other hand, if you risk 1% of your money with every transaction you $ 4900 in your account after the first loss. It will be much easier for you to recover those mestieri.La second rule of money management is still waiting for more benefits than the money you can lose is obtained. This can be done by limit and stop orders and stop suiveur.Par example, if you want to make a profit of 25 pips on each trade, then set the stop 15 pips above or below the price of the input. A better way to have a greater hope is to use trailing stop, as I described above. A trailing stop, you can cut your losses short and let your winners.
These are the basic skills that use the dealer should generate consistent profits in the Forex market. This is basic information, but I realize that many people out there do not even know what Forex is, if I do not go here into more complex strategies. You can find more information on strategies for complex and advanced Forex on my website.
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