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    Cape Town
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    South Africa
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    Colmex Pro
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    Colmex Pro
  1. One common mistake for those who are entering the world of forex is to start trading without a strategy. Because of the attractive features of this market, most new traders are starting too eager to test themselves. This approach is dangerous because they often believe they can operate earning right away, sometimes they also think that they can make a fortune in a short time, but pretty soon they get tired and end up having the wrong approach that leads them to a path of repeated losses. The first step to operate profitably is to create a strategy or trading plan. Creating a trading strategy is of crucial importance and is also quite easy. To proceed with the creation of a strategy, traders should consider the following: Before opening an operation there must be a good reason. Very often traders open operations out of boredom or to feel involved, but with these reasons you go straight to the disaster. The reason to buy or sell a currency pair has to make sense, does not matter if it is based on fundamental analysis or other techniques, the important thing is to have a reason. The choice of the currency pair to trade can seem simple but in reality it is not. Experienced traders always suggest to focus on some of the main cross (EUR / USD, GBP / USD, USD / JPY). Define the timing, especially when placing the operation and how often to perform trading operations. From here you establish if you are day trader, or if you prefer to hold positions for longer periods of time. You must consider whether to open positions before or after important economic news, if during the night, the opening of different markets etc. Define the objectives, the ultimate goal of trading. What are our objectives of take profit and stop loss. It is important to try to place your take profit and stop loss before entering the market, since they can always be changed later if the market changes. Most traders tend to close the transaction quickly, in case of profit, while allowing continued operation in case of loss. Placing a stop loss at the beginning of the operation will be easier to have a reference point, and it will allow to have more discipline. In addition, many beginners tend to have very unrealistic goals. You can have high returns during the first year of investment, but it is not easy to achieve. With these unrealistic expectations, many traders do withdraw, even before they had time to learn the behavior of the market. For the first year, the draw is a good target. In fact, the majority of traders do not get to draw and those who make 20% or 30% on their initial investment can be counted on fingertips. Money management is the main aspect of trading. First you have to accept the fact that no one can have 100% of transactions closed in positive, and that everyone, even the experts can make mistakes. The key point is to accept the fact of being wrong, before the mistakes can affect your money. To do this you must specify the amount to invest, after which what you are willing to risk on each transaction. The more experienced traders risk 1% to 4% of what they have on the trading account. Although to the new traders may seem too low, this will help avoid big losses and create the necessary discipline that, by continuing to operate in the market, will help to enhance the experience. It is very important to have a higher percentage of transaction and a positive average profit higher than average losses. If the average loss is twice the average winnings then the traders would be forced to close 10 transactions in positive, to cover 5 negative.
  2. When you start in the forex trading market, it is important to avoid errors. Usually there are a number of common mistakes that investors make, especially those who are still new. Since forex trading is one of the most unpredictable investments you can make, partly because of market volatility, it can be difficult, if not impossible, to find a strategy that is infallible. What are the best forex trading indicators and how to be successful in this market, even working from home in your spare time? Generally there is no exchange market indicator, best of all, because there isn't always one indicator which function perfectly. It is only by combining the various currency market indicators that you can build a solid trading strategy to be successful. Two of the indicators used by traders at the beginning in the currency market, are the simple moving averages and Bollinger bands. The simple moving average is calculated starting from the average price of a given currency pair for a specified number of periods. You can create moving averages starting with the opening, the maximum, the minimum and the closing values. Bollinger bands give an idea about the instability of the market and help to determine the standard deviation of the market. This gives the trader an indication of the scenarios overbought and oversold, helping to choose its entry points and goals. Two other indicators to consider are the stochastic and the Relative Strength Index. The first is used to find trends in the market, so that you can always know exactly which way to open up their positions. The stochastic is instead considered by many to be the indicator as to the final decision to open a position or not. It is easy to use and very effective. So we have seen that these are the best forex indicators for beginners operating in the forex market. Being able to learn their use really helps the trader. They can in fact be used to make trading in the direction of the trend or even to trade against it.
  3. Since the stop loss subject is extensive, involving many other topics, I will discuss only the initial stop loss that is necessary to control the losses if the trade will not be successful. Let us now see the four best stop-loss techniques applicable to many different trading systems. Stop based on volatility (Volatility Stop) Imagine a market where the candles have a width of 120 pips. It makes sense to put a stop loss at 5 pips away from your point of entry? Unless your strategy is not a form of super-extreme scalping the answer is No. If you get into a certain direction you have to ask if you're giving the market time to develop in your favor, without which, insignificant fluctuations close down your position prematurely. On the other hand, one stop too distant, will lead to losses that you can hardly recover. Looking at the average volatility you can understand, therefore, where it makes sense to place the stop loss based on the breadth of recent market movements. Thanks to the ATR (Average True Range) indicator you can easily obtain the volatility of the last N bars. The value obtained will be the basis for choosing your stop. Stop based on support and resistance Another powerful way to set the initial stop loss is based on what is the reality of the graph. Markets will offer a wealth of information: the prices are clearly moving in one direction? The prices are moving wildly within a certain range? Through observation you can have a number of ideas to find a price level above which we have little hope that the trade turns in our favor in the short term, or not to proceed further against us by exposing them to excessive drawdown. Stop based on indicators Some traders, lovers of technical analysis, tend to base every aspect of their trading on the results offered by various indicators: list the various methods used would be impossible, so I will limit myself to one example. A fairly common technique is to enter and exit a trade based on the crossing of two moving averages. Stop fixed to N pips The stop loss is set at a certain number of pips from the opening portion of each position. This is an ordinary technique, where the distance is fixed and equal for each trade, such as 20 pips. You should exclude the idea of ??using a stop of this type since there are important gaps. First, it disregards the fact that volatility varies over time and is never fixed. Generally, the shorter the timeframe used, the greater the possibility that the volatility changes. Secondly, it is not connected to the reality of the markets: it does not consider resistance and support or other guidelines which may provide an assessment of the graph. The only people who I think can use a fixed stops are experienced traders who intend to work with a very short term scalping technique, while maintaining a very tight stop loss. Choosing an option or the other, would simplify what cannot be simplified. Every trading system, and each trade is a special case. I have tried to provide meaningful tools to check your initial stop loss: making good use of them can greatly improve your trading.
  4. We know that the Forex market is opened 24 hours on 24, five days a week, or from Sunday evening until Friday evening. The weekend all the exchanges are closed, so even currencies are stationary. The Forex opening on Sunday coincides with the opening of the first exchange of the week in the East. Although it might be possible to do Forex in every moment of the day and in each of the times when the currency market is open, this does not mean that every moment is also good. There are times when it is more suited to trade currencies. To have the greatest chance of success is absolutely indicated to do trading at one of these periods, not outside. The fact remains that even outside the periods of greatest importance is possible to have good results. Surely, you do not make trading Sunday evening, as the majority of exchanges are still closed, especially those of greatest importance, such as the New York Stock Exchange or the London Stock Exchange which is the first in the world for currency traffic. Also Friday and Monday morning are times to be avoided, since it is more difficult to make forecasts, and you risk to lose everything you have done during the week or starting on the wrong foot. Then you should not trade close to, and just after, the release of a very important news. The reason is simple in this case, it would be better to wait for the market reaction to this news and try to ride the wave. Also you should not do Forex during holiday periods, such as at Christmas or at mid-august, since the trades are substantially more thin and it is difficult to make a good prediction. All other times are more or less good. Remember however that also depends on your way to trade.
  5. While doors are closing for many people with regards to employment as a result of financial crisis, you've still got an easy method of making ends meet and creating more income when you participate in seminars. In courses both online and offline, you'll find that there are many different ways for you to make money and there certainly are a handful that allows you to work at home. One of these systems is called day trading and it's when you enter the trading market buying and selling stocks. Whenever you obtain know-how about how it works by means of getting yourself with an education and learning on trading, you'll earn profits from the difference you obtain involving the selling price as well as the buying expense of financial instruments. Following training about how to day trading, you'll learn that the distinct difference from online trading in general is that you trade intraday. With regard to an active day trader, positions close towards the end of the trading session and you're off to fight another day tomorrow. Way back, tools such as direct access and high frequency were purely available to financial companies. Yet these days, you can also access these tools yourself and you are able to come close to obtaining probably the most successful careers in trading. Attending training seminars as well as courses will likely give you additional information regarding the strategies that make trading happen. Making use of your direct access as well as high frequency tools, you'll have the ability to analyze the trends on the market more readily and precisely. These types of tools and education seminars will certainly offer you specific data so you're able to measure holding period on positions in just a few seconds. Yet again, you'll be going after all this trading intraday. Remember that every second is important. You have to be active with your work when you need to succeed in this particular trading. No matter what you understand in classes, you need to make use of it inside the fast-paced realm of online day trading. In case you trade in stocks, you'll be easily left behind and encounter loses if you don't get yourself an education about trading. Therefore if signing up for a formal class is just not a choice for you, it is easy to choose seminars and courses. They won't take most of your time and usually in just couple of days, you'll have the hang of it and off you go towards a brilliant livelihood. There's a whole lot of money you may make with finance institutions such as commodities, options or stocks. Familiarize yourself with buying and selling these in day trading and bring your self a steady flow of cash.
  6. CFD is a contract that binds the buyer and the seller in order to pay the difference between opening and closing value of the underlying in cash when the contract is ended. When it comes to choosing a CFD broker suitable for your trade, you need to understand that it is not only about reducing CFD trading costs. The broker will allow you to trade the way you want to trade and they even allow you to trade during after market hours. The broker must also be able to trade a sufficient number of CFDs long and short. You also need to consider trades with leverage. The many opportunities to go short are among the attractive advantages of CFD online trade. The best providers can minimize the cost of CFD trading which includes spread widening, commission, interest costs, and slippage. You should note that minimizing the expenses is a sure way to maximize your profits. Many private traders and investors are turning to this option because it is flexible as a trade instrument. This option offers the traders the capability to go long or short, leverage their trades, and even hedge existing positions at a fraction of the cost of conventional share trade. Different from the conventional share trade where you have to pay the full amount of the shares value, CFD trading allows you to make small payments of about 10% of the underlying asset value through your broker to guarantee that you meet the requirements of the contract. This is known as the margin, referred to with the traders, and which you are required to maintain at all times. You should note that if the trade goes wrong, then you will be required to pay more money to restore your margin obligations. The main benefit of CFDs is that they can be sold or bought back at any time with the value set by the stock market. In order to understand the CFD trading, you should look at it as buying shares with a short term loan from your broker. Therefore, you get a loan and pay the interest on the borrowed amount on a daily basis. However, when you terminate the contract you pay off the remaining costs and pocket the profits. With the CFD as a leveraged trading instrument, your profits are magnified and the same applies to your losses as well and you can lose more than your initial margin. CFD is also a platform to easily use with charting package, educational materials, market news and analysis. Some of the providers offer a 6 week starter training package where you get some training modules and start off with an option to trade on lower stakes if you want to. This will give you an opportunity to learn, receive and get used to the trade platform. There are several CFD providers that you can choose from and the best is a reputable broker who will give you the best services and trade platforms. You also need to consider one that constantly upgrades their services and trade platforms in order to offer their clients the best services. The internet is a useful resource that can help you come up with the best provider, and you can review their features, rate and stock CFDS and markets beforehand.
  7. Options trading are one of many methods investors are using to earn money in both forex and stock trading. Binary options trading are also known as digital options trading and give buyers the right to buy underlying assets at a fixed price, also referred to as the strike price. Underlying assets can be in form of products, commodities, stocks, indices like the NASDAQ and currencies. They allows buyers to manage the assets, expiry time, and asset prediction time. The only problem is that no one knows if the price of assets will either be high or low by the end of the expiry time. This simply means anything can happen during trading. Binary options trading need investors to have good judgment and knowledge. A buyer has the availability of digital options to decide whether the asset he or she intends to buy will actually target the strike price at a selected expiry time. This could be the end of the day or week or even at the end of the nearest hour. Assuming a trader wants to invest $200 on a digital option on BP oil, with a 70% return rate and with the expiry time at the end of the day with the rate of oil being 70.8894, the investor will earn $270 if the price of oil closes at 70.8894 or above and will also get a $15 payback if the price of oil is 70.8894 or below. That is one way traders earn from binary options trading in commodities, though most people prefer stocks because there are various stock options to choose from. There are also those people who work in their respective jobs and are not able to keep up with forex and stock. Binary options also requires investors to follow it closely so as to earn profits, and thanks to technology, mobile and online trading makes it easier and flexible for them and may advance even more in futures. The forex is also available to those who own iPhones. For those who may not understand how it work, then there are various business schools or training institutions offering education on that particular method of trading. Binary options are a good way of investing and every individual is encouraged by practitioners in the stock market to take advantage. On the other hand there are people who are cautious with their money and hesitant to invest simply because prices of commodities, stocks and even currencies are unpredictable resulting in losses. Lots of money has been lost but that is normal; you may gain one day, the next you lose. Countries like the U.K, USA, Germany, Italy and most developed countries have investors benefiting from binary options trading as word spreads of its success all over the world.
  8. Hi All, I wanted to share with you an ebook that I found very useful it's called The Market Whisperer, its a good guide to stock trading its worth reading for anyone from beginners to experienced day traders you can find it here http://nopaworld.blogspot.com/p/trading.html Go well!
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