Start Your Forex Trading Education

There is so much to learn for those who wish to trade in the forex market. A good place to start your forex trading education is with the study of support and resistance.

Two of the most widely discussed facets of technical analysis are the concepts of support and resistance. Although this study is very often regarded by beginning traders as complex, our purpose is to simplify the subject by focusing on the very basics of what beginning traders will need to know. A thorough study of support and resistance is not possible here, but there is a mountain of information available on the subject.

When you view a forex trading chart, you’ll see that price doesn’t usually move in a straight line. A price will go up, then down, then up again, giving the appearance of a zigzaged line.

When you draw a line connecting the lowest price points, that is your support line. To draw a resistance line, you would connect the highest price points. This is only a very basic idea to provide a picture; there is more to determining which bottom points and which top points need to be considered.

Since support is shown on a chart as a line connecting specific low points, it is easy to see how it tends to function as a floor and prevents the price from going lower. More often than not, prices will tend to bounce off this level rather than go through it. When the price does break the support level, it generally continues dropping until is reaches another support level.

One can view the resistance level as being the opposite of a support level. At this level, the price tends to find resistance as it climbs higher. And just as with support, price tends to bounce off this level rather than break through it. But once price manages to break through the resistance level, even by the smallest of amounts, it will more than likely continue rising until it finds another resistance level.

If a price breaks past a support level, that support level often becomes a new resistance level. The opposite is true as well, if price breaks thru a resistance level, it will often find support at that level in the future.

Support and resistance levels many times represent the prices that are most influential to a currency pair’s direction, and are therefore used by many technical traders to determine their entry and exit prices.

Posted by : sai

New Improved Forex Autopilot System

A new version of the Expert Advisor, Forex Autopilot System (FAPS) has been released. It appears to work better in any market direction and eliminates some of the weaknesses in the old system.

Below is a list of the lastest changes:

- The times are adjustable now. You can set the exact time you want FAPS to start and end your trading sessions.

- With the global MA indicator trend contol feature, it now works better no matter how volitile the market is

- It eliminates most of the possible drawdowns and increase profits considerably with its new optimized algorithm.

It’s interesting when you backtest the system to compare the results of the old and the latest version. The new version of Forex Autopilot doesn’t seem to have any problems trading the downtrend like the old version.

Forex Autopilot customer service has improved dramatically. They now provide telephone assistance to deal with any set up issues and technical problems.

In my opinion, the system is easy to set up, but for new traders, it might be a problem. After your purchase you will immediately be taken to the membership area. You will be taken step-by-step on how to download the files and set up your MT4 Trading Platform. You should be up and running within the hour.

If you get stuck, there’s also one-on-one training, a great forum to share ideas and live training calls. This membership site will definately help you become a profitable forex trader. It’s the best community online period.

I always suggest trading with a demo account intially so you can test the Forex Robot without having to gamble with real money.

Posted by : Kiran

False Sense Of Security May Cost You

A trader can be in a trade that goes down but is only a little against him. He has his stop on at a comfortable level but he knows the trade is wrong but stays in because the stop has not been hit. Since he has not been stopped out he holds on thinking it is a good trade. Since he has his stop set he thinks he is on the right side of the trade. This can be dangerous thinking.

When you are in a trade and it is not going the way you thought it should and you start to feel uncomfortable about the trade get out of the trade and forget about what you thought was a good trade in the beginning. Just because you have not been stopped out does not mean you are safe. You don’t need to wait to be stopped out take a smaller loss and get on with the next move. If the trade starts to look wrong then get out no matter if you are a little positive or a little negative. This can save you a lot of money in the long run.

If you placed a trade because of a market movement and some good signals but the market fails to follow through and starts to linger exit the trade. There is no need to wait until the market hits your stop level to get out. If it isn’t working as it should, odds are that eventually it will hit your stop so why not take the small loss now and look for another trade.

Exiting trades when the reason your entered the trade has changed is good money management. It is also a sign that you are maturing as a trader. You are in tune with the market and will probably make money on another trade that is just around the corner. If you can cut your losses by 25% you are way ahead when the good moves come along for a pip saved is a pip earned.

Posted by : Sai kiran

How the Forex Market Trades Around the Clock

The forex market is the largest financial market in the world, trading around $1.5 trillion each day. Trading in the forex is not done at one central location but is conducted between participants through electronic communication networks (ECNs) and phone networks in various markets around the world.

The market is open around the clock from 5pm EST on Sunday until 4pm EST Friday. The reason that the markets are open around the clock is that currencies are in high demand. The international scope of currency trading means that there are always traders somewhere who are making and meeting demands for a particular currency.

Currency is also needed around the world for international trade, as well as by central banks and global businesses. Central banks have relied on foreign-exchange markets since 1971 – when fixed-currency markets ceased to exist because the gold standard was dropped. Since that time, most international currencies have been “floated”, rather than pegged to the value of gold.

At each second of every day, countries’ economies are growing and shrinking because of economic and political instability and infinite other perpetual changes. Central banks seek to stabilize their country’s currency by trading it on the open market and keeping a relative value compared to other world currencies. Businesses that operate in many countries seek to mitigate the risks of doing business in foreign markets and hedge currency risk.

To do this, they enter into currency swaps, giving them the right, but not necessarily the obligation to buy a set amount of a foreign currency for a set price in another currency at a date in the future. By doing this, they are limiting their exposure to large fluctuations in currency valuations. Due to the importance of currencies on the international stage there needs to be round-the-clock trading at all times. Domestic stock, bond and commodity exchanges are not as relevant, or in need, on the international stage and are not required to trade beyond the standard business day in the issuer’s home country. Due to the focus on the domestic market, demand for trade in these markets is not high enough to justify opening around the clock, as few shares would be traded at 3am, for example.

The ability of the forex to trade over a 24-hour period is due in part to different time zones and the fact it is comprised of a network of computers, rather than any one physical exchange that closes at a particular time. When you hear that the U.S. dollar closed at a certain rate, it simply means that that was the rate at market close in New York. But it continues to be traded around the world long after New York’s close, unlike securities.

The forex market can be split into three main regions: Australasia, Europe and North America. Within each of these main areas there are several major financial centers. For example, Europe is comprised of major centers like London, Paris, Frankfurt and Zurich. Banks, institutions and dealers all conduct forex trading for themselves and their clients in each of these markets.

Posted by : Sai

Trades May Come And Go But The Indicators Stay And Produce

I was reading an article about a guy who started a computer business when the industry was new and growing. As he grew and was successful he noticed that there were many others doing the same thing. There was no longer anything unique about his company. He decided to take the gamble of focusing on data storage.

He said that even though a company may downsize the data never does. So he felt that there would be a place for his business for a long time to come. Keeping track of data storage

for companies.
I was thinking how this is like the currency market. A currency pair may trend or channel but there are still good trades and an opportunity to make you some pips. News comes and goes the currency pairs go up and down. If you specialize on learning how to use some indicators you can trade any currency pair that is making a move rather than only trading one or two currency pairs.

What we are saying is, specialize on learning how to use a few indicators and not generalize in learning a lot of currency pairs. You might have your favorites but be ready to trade any currency pair that is moving. This way you will be an indicator specialist being able to move between the time frames to find the best entry point.

Be good at the trading platform and the use of a few indicators to enhance your currency-trading career.

Posted by : Sai kiran