Practise Forex Trading Online Using The Quick Fibonacci Method To Rake In Big Profits

By: Peter Lim

There have been so many approaches to trading forex especially in the technical analysis field, that many times the newbie to forex trading will be dumbstruck with the various trading techniques and strategies. From the very simple but effective price trading action method to the sophisticated methods of neural network price projections and the estoric methods of astrology and moon readings, forex traders, whether newbies or veteran traders can choose from a vast arsenal of trading tools to assist them in trading profitably.

The Quick Fibonacci Trading Method

One simple way to trade is to use fibonacci price levels and retracements.

As the price of a trading instrument increases, it will move from a low point A to a high point B, where B forms a temporary top. At point B, prices will then fall off and retrace. Statistics have shown that prices will want to fall off to fibonacci levels of 25%, 38.2%, 50% or 61.8% where it can get support to stage a rebound. The reverse is true when prices fall from a point A to a point B. Simple as it sounds, these observations can be used accurately to trade the forex, and has evolved into what we call fibonacci trading, some calling it "quick fib" trading.

The difference between trading forex and other capital instruments such as futures and commodities and stocks and shares becomes apparent when we use this method of trading. Firstly, when we trade forex, we do not have the opportunity to know the quantum of volume being traded at that instant, and so all we can do in forex analysis is to decipher the price movements. This makes the fibonacci trading method a price action trading method. In contrast, when we trade stocks and shares or commodities, we correlate trading volume to price outbreaks. When we have a price outbreak, and that is accompanied by heavy volume, we attach a higher level of confidence that the outbreak is genuine.

[Read full article]

Forex Market Hours

By: Joel Teo

The Forex trading market is unlike some of the other trading markets. The Forex market stays open and moving twenty four hours a day.This allows the traders to trade at any time, and the long waits until the market opens do not happen in Forex like they do in the stock market. One thing that successful traders will learn, however, is the right, or optimum, time to make the trade. This aspect of the market hours is very crucial to a market trader in terms of success.

The Forex market may stay open twenty four hours a day but it is better to trade when the market is active, as there is more activity and chances to make a profitable trade during the active times of the market. An active market translates into a bigger volume of trades. This means that there are more active currency moves when the market is active, and this will create a better chance of catching a trade that makes a profit. When the market is very calm and slow, most Forex traders consider it a waste of their time to trade.

[Read full article]

Forex Trading 2 Simple Tip To Increase Profits Dramatically

By: Monica Hendrix

Here we are going to give you 2 simple tips that will instantly improve your overall forex trading results.
There simple to learn, easy to apply and could help you achieve big profits consistently of 100% or more annualized.

Consider this point:

Forex trading is all about being right with your forex trading signals and making money You don t get rewarded for the effort you put in to forex trading strategy the only thing that matters is profit.

Here we are going to focus on working smart not hard to make more money from trading.

Before we discuss our forex tips in greater detail, lets look at two key points in regard to currency trading.

1 The Big Trades Only Happen a Few Times a Year

If you look at any currency chart the really big strong trends only occur a few times a year and these are the trends that offer the best risk reward. The rest of the time the markets are either trending sideways with no clear trend, or showing high volatility which is hard to trade.

2. Trading The Odds

If you want to make money you need to trade the odds and get them on your side. The best way of doing this is to focus on set ups that give you a clear trading edge which is easy to see on any forex chart.

You need to look for valid support or resistance which has been tested numerous times over several months you know if these levels are broken the likelihood of a new trend developing are high.

[Read full article]

Why Most Forex Traders Base Their Foreign Currency Trading On Technical Analysis

By: Donald Saunders

Traditionally Forex traders have based their trading decisions on fundamental analysis which looks at both past and present political and economic events to predict future movements in currencies.

Fundamental analysis is not easy and requires the trader to have considerable knowledge of political and economic events and experience in analyzing both. It also requires the trader to work with a hue quantity of data. In addition, there is considerable disagreement amongst traders over just what political and economic data is important when it comes to predicting currency movements and, where agreement does exist, there is still often argument over how much weight each factor in the equation should be given.

Today however traders have the option to abandon fundamental analysis in favor of technical analysis.

Many people believe that technical analysis is nothing more than a modern day extension of fundamental analysis and it is based upon three principles:

First, many things produce movements in currency prices, including political and economic events, but the effect of these forces has already been absorbed into a currency's price at any moment in time. In other words, there is no need to look at the reasons for the movement in a currency price but to simply focus on the price movement itself.

Second, the price of a currency will follow a clearly defined trend which can be seen by examining the patterns which emerge in the market over time.

[Read full article]

Forex Brokers: What You Get For Your Money

By: Wade Robins

The majority of the Forex brokers do not charge commissions. They are remunerated by revenues from their activities as currency dealers, including earnings from buying, selling, interest on deposited funds, converting and holding currencies, and rollover fees.

If you think that, because Forex brokers do not charge commissions, they are working for free, you need to go back to Forex school. Forex brokers make their money from you, by selling you currency at one price and buying it back from you at a lower one. The difference in the prices is known as the "spread" and it can mount in a hurry. How can you determine a "spread?"

Understanding The Spread

You may have thought a "pip" meant is a fruit seed, and you would have been right. But in the 21st century, the "pip" is far more widely known as the smallest monetary increment, usually one one-hundredth of a percent. On the Forex market, currencies are priced to the fourth decimal place, and that fourth decimal pace is the"pip." It's also known as a "basis point."

Forex brokers make their livings in pips. The number of pips they charge per trade is known as their spread. Some Forex brokers charge the same spread no matter what the trade, and other Forex brokers charge a variable spread. While a variable spread can look enticingly small in a slow market, it will not be available when the Forex trading begins to fluctuate, because the Forex broker will raise his spread.

[Read full article]