Thursday, 12 February 2015

Becoming a FOREX Trader


New Forms of Income Generating Businesses from the Internet: Becoming a FOREX Trader

You may know about the internet being one of the tools used by so many people to make some cash through online businesses. The fact that the internet can deliver cash right at your doorstep if you know how, you will definitely want to try and take a piece of the big pie in the internet. However, what kind of online business can ensure you to earn some cash? Oneway is by becoming a FOREX trader. Although this kind of online business has existed for a few years now, you have to consider that this is one of the new forms of income generating businesses from the internet.

In the past, the FOREX market was closed only to multinational corporations and banks. They are the
only ones allowed to trade in this vast and very liquid market.

In FOREX, currency is traded against one another. In order to become successful in FOREX, one must know when to trade specific kinds of currencies and which currency they should trade it against with.
Becoming a FOREX Trader
Becoming a FOREX Trader
Thanks to the internet, the FOREX market is now open to everyone who has access to the internet. That means that you too can now become a FOREX trader even if you don’t have a million dollars to spare.

In fact, with just a hundred dollars, you can start trading currency in this very large market.

The great thing about the FOREX market is that it's almost always open everyday. This means that you will be able to trade anytime of the day and anytime you want. The trading here is also very large in terms of the amount of money being circulated. In fact, in a single trading day, hundreds of billions of dollars are exchanged.

With this kind of market, you will definitely be able to make some cash and a lot of it if you know how to trade in FOREX. So, just how do you get started trading in the FOREX market assuming that you already know how to trade in it?

Basically, all you need is a computer or a laptop with an active internet connection. Then, you will need to sign up an account with a FOREX broker. Then, you will be provided with FOREX trading software where you will base all your trades from.

The great thing about this is that FOREX brokers will be able to advise you on what trades you should make and when to trade. This is why you have to remember to go with a broker that has a lot of experience in the market. By doing so, you will be able to make sure that you will make some money and minimize the risks of losing money.

These are the things that you have to remember about the FOREX market. Although this is a huge market, in fact the largest, it doesn’t mean that there are risks involved. In fact, there are some people who lost their life savings in this market because of misinformation and inexperience.

So, even though the FOREX market can make you some cash, there are risks that you should always be wary about. Online FOREX trading is one of the new forms of income generating businesses from the internet today. With this kind of online business, you can be sure that you will earn some cash. Just remember that you do need to know the FOREX market first before you start trading. This will minimize risks of losing money and maximizing your chance of profiting.

Tuesday, 3 February 2015

HOW TO READ FOREX PRICE CHARTS?

HOW TO READ FOREX PRICE CHARTS?

Forex Price Charts, what DO they mean and HOW to use them?

Important numerous facts as discipline, trading rules, not being greedy etc., but one of the most important things is:

LEARN to read the charts as Charts represent the lifeblood of the market.

I admit that reading charts, and interpreting patterns, are more an art than a skill. Base and apply your entry and exit decisions on YOUR OWN combined methods of technical and fundamental analysis.

FOREX charts, are easier to interpret and to use. They reflect a slower moving, stable economy of a country, compared to the stock market, with its daily drama of company reports, Wall Street Analysts and shareholder demands.
 FOREX PRICE CHARTS
 FOREX PRICE CHARTS
Unlike stocks, currency charts do not spend much time in trading ranges and have the tendency to develop strong trends. Furthermore, Forex with its 4 Mayor currencies is easier to analyze than tens of thousands of stocks.

(Mayor currencies are: USD/JPY, EUR/USD, GBP/USD and USD/CHF)

The complimentary FREE live charting software, with the ultimate cutting edge technology provided by http://www.fenixcapitalmanagement.com/ , will be absolutely sufficient for you to analyze and watch any one currency pair. Understanding just a few basic points about the technical analysis of currency chart can lead to increased profit potential.

Pricing - Price reflects the perceptions and action taken by the market participants. It is the dealing between buyers and sellers in the Over-The-Counter (OTC) or “interbank” market that creates price movement. Therefore, all fundamental factors are quickly discounted in price. By studying the price charts, you are indirectly seeing the fundamental and market psychology all at once , after all the market is fed by two emotions - Greed and Fear – and once you understand that, then you begin to understand the psychology of the market and how it relates to the chart patterns.

Data Window Chart – FCM and most online charting stations, when you click on a price bar or candlestick, it will display a small box of data usually called a display window which will contain the following items:

H = Highest Price
L = Lowest Price
O = Opening Price
C = Close Price (or Last Price)

The most common types of price bars, used in FOREX trading, are the Bar Chart and the Candlestick chart:

Bars Charts -

Price bars are a linear representation (a line) of a period of time. This enables the viewer to see a graphic representation summarizing the activity of a specific time frame. As an example, I use 10 minutes, 60 minutes and daily time interval for my systems. Each bar has similar characteristics and tells the viewer several important pieces of information.

First, the highest point of the bar represents the highest price that was achieved during that time period. The lowest point of the bar represents the lowest price during the same period. Regular bars display a small dot on the left side of the bar which represents the opening price of the period and the small dot on the right side represents the closing price of the period.

Candlesticks - Japanese Candlesticks, or simply Candlesticks as they are now known, are used to represent the same information as Price bars. The only difference is that the difference between the open and close form the body of a box which is displayed with a color inside. A red color means that the close was lower than the open, and the blue color represents that the close was higher than the open.

If the box has a line going up from the box it represents the high and is called the wick. If the box has a line going down from the box, it represents the low and is called the tail.

Many interpretations can be made from these "candlesticks" and many books have been written on the art of interpreting these bars.

Chart Intervals & Time Frames:

A chart Time Scale & Period, or time frame, basically refers to the duration of time that passes between the OPEN and the CLOSE of a bar or candlestick.

For instance, with your broker software, you will be able to view a currency pair, in a 1-hour time frame over a 2-day period, 5-day period, 10-day period, 20-day period and 30- day period.

Most of the short-term time intervals (5-min and 1-min charts) are used for entry and exit points and the longer- term time intervals (1-hour and daily charts) are used to see where the general trend is.