Friday, February 22, 2013
Finding the Right Forex Trading Style
There are many forex trading strategies and styles available. Finding the right strategy and style that suits your requirements and expectations are very important for trading success. Below are some of the factors you should consider when choosing a trading style.
- Time, Patience and Risk Tolerance: How much time you can invest in trading and how much patient you are two most important factors. Those who have time and patient can be better in trend trading and those who are short can be good in fading and day trading.
- The timeline you are opting: Trend traders typically choose long-term trading frames because trends tend to develop in weeks or months; and faders and day traders typically choose short-term trading frames because they look to profit from market volatility.
- Type of Analysis and indicators you are familiar with: There are two general classifications of analysis tools - fundamental and technical analysis. Although their advantages over the other is always a hot debate, fundamental analysis tools generally help long-term traders and technical analysis tools help short-term traders. Also fundamental tools are better suited for trend trading and technical tools are for day trading and scalping.
- Knowledge of different trading strategies and indicators: Most traders only need a handful of trading strategies and indicators to find good trading opportunities but the knowledge of many different strategies and indicators can help them to profit or limit risk in some specific market conditions.
Labels: currency trading, day trading, fade, fading, forex analysis, forex indicator, forex strategy, forex trading, forex trading strategy, forex trading style, Short Term Trading, trading indicator, trading style
Thursday, February 14, 2013
Online Forex Trading Yemen - The Basics
Knowing the world currency market basics is important for success in online forex trading. Being the leading financial market in the known universe with a daily trading volume exceeding 4 trillion US dollars, the forex market has many things peculiar to other markets.
- The world forex market is open 24 hours a day from Sunday evening to Friday evening. But it operates in three major sessions as Asian, European and American with session overlaps and gaps.
- Currencies of countries from particular region are most traded when the regional session is open. Or every currency pair has high volume peaks and depths with change in trading sessions.
- Currencies are traded in pairs where you buy one currency by selling another. Currencies are priced to the fourth decimal point. One pip in this smallest increment which is typically equals 1/100 of 1% of exchange rate.
- Traders trade currencies in lots. There are three types of lots - micro, mini and standard. In US dollars, a micro lot denotes $1000, a mini lot represents $10000 and a standard lot represents $100000.
- In USD, one pip move results a 10 cent difference in value of a micro lot, a $1 difference in mini lot and a $10 difference in standard lot.
- Although there are many currency pairs available, majority of trades take place in 18 currency pairs of 8 most popular currencies. These include US Dollar (USD), British Pound (GBP), Euro (EUR), Canadian Dollar (CAD), Swiss Franc (CHF), Japanese Yen (JPY), Australian Dollar (AUD) and New Zealand Dollar (NZD).
Labels: Advantages of Forex Trading, currency trading, forex basics, forex broker, forex information, forex trading, forex yemen, FX Trading