Posts Tagged ‘forex training’

The Simple Way to Read Candlestick Charts

Sunday, May 9th, 2010

Post courtesy of Fibonacci Killer

Knowing how to read candlestick charts is essential for both stock trading and foreign FOREX trading. Many traders may be able to develop worthwhile trading systems virtually wholly on the basis of candlestick charts, and many more systems depend on them as a first or first signal. The chart is made from a series of blocks or candles, each one showing the open, close, high and low prices over a period. The open and close prices may be the prices for a day’s trading but in most cases you have command over the period and you can set your chart to show a candle for each hour, for 5 minutes or whatever. If you are coming up with systems around this kind of chart you may possibly need to check your signals over more than one time period before you open a trade. In this case the open price is the base of the candle’s wide block and the close price is the head of the block. If the price dropped in the period, the body of the candle will be shaded, either black or a color. In all cases, the high during the period is the apex of the vertical line or wick stretching upward from the apex of the block. The low during the period is the bottom of the vertical line or wick running down from the bottom of the block.

Some charts these days are shown in 2 colors.

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Why Can’t I Make Cash with Currency Exchange Trading?

Wednesday, April 21st, 2010

First, the average newb is likely to make some mistakes. This can be lethal to a system. So the very first thing to do if you have been trying a system in demo, say, and it’s not working, is to study all the material again and see if there are some things that you have missed. It might be that you misinterpreted something or did not take something into account. Many times this could turn up something that will have an impact on your results. Second, different folk have different trading styles. Allegedly 2 people operating the same system with the same starting investment using the same broker should have the same results, but if you set up 2 traders in this situation they would probably still do things in alternative ways.

Are you acting quick enough when you get a signal, or are you easily distracted so that the price moves before you place your trade? Or is it not your fault? Are you seeing too much slippage? Perhaps you need to consider changing your broker.

And even if you’re employing a robot, you may think that everybody using it’ll have the same result, but that isn’t correct. So do not lose hope. Sure it will probably help if you’re a cool headed sort of person who can handle a specific quantity of stress and maybe even works better under strain. It will also help if you’re not freaked out by the idea of basic math. You most likely are the right kind of person or you would not even have an interest in trying to make money with currency trading.

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Triple Threat FX – Pips Explained

Monday, February 15th, 2010

Here is an unusual program: Triple Threat FX

Some brokers are now starting to quote the other major currencies to 5 decimal places. Logically this should mean that one pip would be 0.00001 currency units, but the potential there for bafflement is massive, if a pip would be worth ten times as much with some brokers than with others. So it seems likely that the pip will stay at 0.0001 units for most currencies.

Most traders record their profit and loss in FOREX trading pips as well as in money. This enables simple comparison of one trade with another so you can evaluate a system. It also means that traders can debate their leads to a forex forum without revealing the size of their account or their profits in bucks and cents.

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