Three Most Popular Chart Patterns in Forex Trading

Posted by Deb | Forex,Guest Post | Monday 26 August 2013 11:31 pm

There are many set-ups you can use when trading currencies. Many of them may appear like it’s sound and can bring you profits but be warned – there are many set-ups that can only result in a loss.

Forex traders can minimize some of the trial and error involved by using the chart patterns that have been proven by other forex traders as effective and have proven to be profitable set-ups.

Channel Pattern

The channel pattern is one of the most recognizable patterns in forex charts because it looks quite distinctive. It is two parallel trend lines that enclose price. These lines essentially govern the trend. Trades are usually entered that follow the trend – in this case, when the price bounces off one of the trend lines. Your profit target is usually within the domain of the opposite trend line. This set-up and strategy is quite profitable and if you have made the correct assumptions, you can ride the trend as it moves within the range and between the two trend lines. Even when the price penetrates the trend lines, there is still the opportunity to earn since the trader can then trade on the breakouts.

Double Top

A double top is another very recognizable set-up. The double top happens when the price of the currency tests the resistance level on two different occasions and is not able to break the resistance. When this happens the price now breaks and assumes a bearish movement. When a trader sees this pattern on his chart he will commence his trade when the price breaks the neckline and then the trend is joined when the price begins the pullback to the broken neckline. You will have a 73 percent chance of a successful trade using this pattern, which is quite high.

Asymmetric Triangle

The asymmetric triangle can be identified by looking the chart and looking for an asymmetric triangle where there is a trend line and one horizontal level that price will usually be able to penetrate. Trading with an asymmetric triangle pattern is similar to how you trade double tops – trade is entered after the currency price pulls back and goes to the broken horizontal level. But this trade is done with a strict stop loss and only of the risk/reward is 1:5:1. The asymmetric triangle has a success rate of 76%, which is very high.

These three patterns are quite effective in providing forex traders with a useful and tested way of plotting out a strategy and giving signals on when to enter into a trade. These three patterns pass the forex traders text of being profitable patterns regardless of the currency pair used.

About The Author

Mario Singh talks more about forex strategies at his website Askmariosingh.com

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SEC and CFTC Binary Options Alert

Posted by Deb | Binary Options,Guest Post | Sunday 21 July 2013 10:46 pm

The fact is simple; trading binary options is profitable and risky. You know your exposure to loss on the on-set of the trade. This has given binary option trading a boost in its popularity. The simplicity of entering binary options trades and making money out of it has provided many people a respite from grueling economic times.

The binary options market has expanded so much in the recent past years. People from an average economy class to big organizations are involved in trading binary options. However, according to a latest SEC and CFTC binary options alert, many innocent investors have become a victim of corrupt business practices. This alert has detailed every possible type of fraud that a newbie investor can become a victim of; such as a platform that is designed, to run against you and providing you wrong signals, refusal or delay in crediting the profits that you make on your trades and sometimes even identity theft.

The binary options alert from SEC and CFTC also highlights certain regulatory requirements that some platforms are failing to comply with. In the alert, SEC states that because of non-compliance with registration requirements such as registering as ‘Futures Commission Merchant’ or ‘Registered Broker-dealers’, entering a trade becomes illegal. This could result in a legal action against your broker, endangering your trades.

The alert also highlights the importance of carefully researching and investigating the platform that you are about to choose. In this alert, investors have been provided with tips on how to ascertain that their chosen platform is clean. First off, you should check if the binary options trading platform has registered with the SEC. Secondly check if the platform has registered itself as an exchange. Thirdly, check if the platform is designated as a contract market. The (SEC and CFTC) alert provides investors with sources from which you can ascertain the required information. The sources are FINRA BrokerCheck, BASIC Search, CFTC website, EDGAR and SEC website.

You should be very careful with whom you place your hard earned money and sensitive information. Nobody wants his credit card information get stolen and maliciously used. With this alert at hand, you now know what exact legal notorieties you should be looking for while investigating a particular options company and its platform. The binary options market is relatively a new phenomenon, and regulators will take time to make trading with them securer. Until that time, you should keep yourself updated with such binary options alerts.

About Author:

Intellitraders.com is a free online trading community to help traders learn and trade binary options with best regulated brokers.

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How To Control Your Risks In Binary Options Trading

Posted by Deb | Binary Options,Guest Post | Monday 8 July 2013 8:45 pm

You can get plenty of advice on making investments. But, arguably, the best one has to come from the world’s most successful investor, Warren Buffet: “Rule No. 1: Never lose money. Rule No. 2: Don’t forget rule No. 1.” It is pretty general but it is the kind of statement you want to be reminded of every time you are itching to do a risky trade. When you are venturing into binary options, know that there are risks to be had if you are not well prepared for the market.

 

Growing GraphWhen you are just starting out, it pays to invest first in knowledge before you actually get to jump into trading. Any successful investor knows that you should master the basics. Learn the lingo or relevant terminologies, as in “put” (when you presume the value of an asset will be lower than when it was bought) and “call” (when you presume the value of an asset will be higher than when it was bought). Learn about trading platforms and which ones will be easy to use and come with comprehensive features. Learn about the different trading strategies. Mastering the basics will let you maximize your win rates and minimize your losses.

 

In addition to learning the basics in binary options trading, you should try to practice your newfound knowledge by opening a demo account. Demo accounts are ideal for beginner traders because they can be great training tools. You receive practice funds, which are not real money, and you get to participate in the market, applying the strategies you have learned for a set period. When you open a demo account, make sure that you do not have to pay a deposit, as most brokers will offer them for free. Also, you need to clarify whether the broker you are opening a demo account with will obligate you to sign up for a live account.

 

Trading on MoneyFinally, get trade analysis from reliable and credible sources. Trading analyses can help you place your trades on any asset — from stocks to indices —to favorable outcomes. You will want to go with sources that combine technical with fundamental analysis in order to come up with sound projections on certain assets. You also want to go with sources that rely on actual analysts, as opposed to robots.

 

Any financial investment can be filled with risks. The key is to control those risks so that you do not end up losing money in the process. With binary options, remember to master the basics. Try to get a practice run with a demo account. And obtain simple yet good analysis from good sources.

 

Author Bio

Sarah Miller – a freelance writer and blogger who is currently writing in behalf of http://www.binaryoptionsexperts.com.  She is a business consultant by profession and a content creator, writer and blogger by passion. Having been exposed to the different aspects and faces of businesses, she frequently does research on useful information regarding the different methods and techniques to further improve business marketing, sales, performance and shares her passion of business management through blog/content writing.


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10 Steps To Maximising Online Profits

Posted by Deb | Guest Post | Monday 3 December 2012 5:46 pm

Running an online business has some very important advantages over brick and mortar business: You can easily track and optimise your business and it is more cost effective. Do you own an online business and want to increase your profits and expand your existing business to the next level, but are worried about the appropriate ways and means to find the best strategies to popularise your ecommerce site? Following are some of the best practises for upgrading your website visibility and maximising your profits.10 Steps To Maximising Online Profits

Optimise your site for Search Engines: The main idea behind optimising your site for search engines is making your site appear in the search engine results page when searching with specific keywords. You choose keywords and phrases that relate to your business. There are many companies which specialize in the field of SEO and help you optimise your site for search engines like Google and Bing. You can also try implementing SEO techniques on your own by using internet.

Pay per Click Advertising: Pay per click is usually connected to SEO as a site traffic building tool, but is very different. With the Pay per click you make ads for some of the specific keywords and phrases used are often searched by users and place them on the search engines like Google. If a user clicks on your ads click you have to pay per each click. It is useful mainly for the newly created ecommerce websites but also for many of veteran websites.

Issue a E-Newsletter: This is one of the best ways to bring potential traffic to the website. You can publish a newsletter to inform your customers that you have released a product or service in the market. It enables you to keep your customers updated about your products and directs them to visit your site and in this way increase your sales. Publishing a newsletter is also easy and inexpensive. The important thing here is to have a large and potential database and give value added content.

Write a Blog Post: This is another great way to bring essential traffic to your site, which will also help increasing your page rank on the search engines. Updating and adding content on the blog is rather easy when comparing to adding content to an existing website, while search engines will view both blog and website equally. Research the latest developments in your field and write about it in a way which can help your targeted audience.
Exchange Links and other link building activities: Create inbound and outbound links is most time tested process, though results can only be seen after a long time. Do your link building activities manually, never use automatic tools as this many not give desired results.

Use Social Media: Many social media platforms were initially started for personal use but later on evolved to being used for promoting business services and products. Advertising your business on social media sites may require some strategies. Use Facebook and Twitter pages for your business site which can help increase traffic.
Advertise your site Offline: Promoting your site offline is also very important and is often neglected by business owners. Implementing PPC, SEO, Social media tools to your site can greatly influence your sales but at the same it is also essential to advertise your site offline as your customers are present in the real physical world.

Make your website look professional: Make website look professional in looks and site designing style. Don’t let your site look like an amateur work. You have to modify site to look professional, it is worth hiring professional web designers and copy writers.

Make your website load faster: Do not build your site with all flash and animation as it will make the website loading time longer. Most users will stay over for 2 to 4 seconds on website, if it is taking more time to load then you have to find the ways to decrease your website load timing.

Generate positive online reviews: Many online shoppers will rely on reviews so it’s essential for you to generate positive online reviews. If there is any criticism be sure to explain what happened, this helps to maintain a good online reputation.

Author Details:
Hi there, I am Maria from Manchester, a passionate writer and a blogger. I write about everything in general but currently researching on PPI Claims. Follow me @financeport

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Best Ways to Invest in Forex Market with Little Money

Posted by Deb | Forex,Guest Post | Thursday 25 October 2012 2:42 am

In the present day scenario every banker and cooperate agencies provide 24/7 marketing facilities in trading currencies. FOREX market is more flexible with online access but is a risky job, yet many prefer it because investors with very little money can intend to gain larger profits.

• Choose the best way to invest your money: FOREX is a biggest financing market which took over even the US stock market by making a turnover of 4 trillion dollars each day.

• Contact with a reliable broker: As FOREX possesses many terms and conditions, check whether the chosen trader follows the rules and regulations or not. To do so, you can log on any governments sites and enter your broker’s name to get their complete details.

• Software: Install software’s such as Metatrader 4 which provides the complete view of current prices and gives alerts on technical analysis.

• Educational financial institutes: Search for best networking websites to enhance the knowledge on trading market along with basics statistics and free guidelines on traders and trading styles.

Tips while investing in FOREX market:

• If you are new to this create a mini FOREX trading account initially

• Take advice from the traders who are already into this market.

• Track the currency fluctuations in market in areas such as GOLD, OIL and STOCK markets

• Make a point to be stick only one pair of currency whereas most common pairs are listed as USD/JPY and EUR/USD

• Undergo various money management steps to increase profits and reduce bigger losses

• Try to invest only 80% of your money on stocks market. For instant you are holding £1000 and invested in stocks, if there is a sudden fall of price to $0 then the complete amount invested will be lost. So as in FOREX you can lose more than invested, hence make a point to invest only 80% of money

• Make multiple transactions instead of one big transaction

• Look out for the dealers controlled by the law and avoid fraudsters

• In FOREX you have an option to withdraw or cancel your order if you’re unable to manage funds for your chosen pair of currencies.

• Try investing in safer deals and make sure to maintain a track all your expenses while undergoing huge profits or loss. To overcome from such sudden crises you can make use of same day cash loans which can be get approved for any emergency with minimal processing time and higher interest rates. These are short term loans in order to get instant cash which can be repaid by their next pay cheque.

Therefore as mentioned above FOREX is a risky investment market where you can intend to lose your earned cash and fall into financial crises but with proper research and good management you can reap profits. Hence ensure to take safer steps to gain revenues and double your invested money.

About the Author:
The guest post was contributed by Alicia, financial guest blogger from Manchester, UK. Find out more about her finance related blogs @financeport

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Scalping Forex Brokers

Posted by Deb | Forex,Guest Post | Wednesday 17 October 2012 7:04 pm


The term scalping is referred to a trading style which consists of executing many single trades with the sole purpose of making small profits for a short period of time. Usually, forex brokers do not welcome this type of trading because they are not able to hedge this exposure elsewhere. By accepting the risk against scalpers forex brokers simply lose money. However there are a handful of brokers which easily accept this trading style because they have a large pool of orders and can manage the risk properly. These brokers are classified as scalping forex brokers and are highly valued by forex traders.

After you read this article let me know was it interesting for you and how it contributed to your trading knowledge?

What is Scalping?

Many traders, especially beginners rely on this trading style because they see quick and easy profits in it. However, once identified as a scalper you will hardly get a good execution.

The reason is that forex brokers usually don’t welcome scalpers. Although they will accept you as a client, sooner or later you will experience significant difference in the execution. To trade with this method you certainly need an automatic trading robot.

The most well known trading platform in the world offers the opportunity of using such robots, they are called expert advisors. By using such program you eliminate the risk of emotions trading and also human mistake. The robot executes trades regardless of the result. It always follows the rules.

For example you can set a fixed + 3pips take profit rule and -1 pips loss. It is clear that one of three trades must be successful in order to don’t lose money (if you trade with the same quantity). You can ask a developer to write this algorithm for you but remember that what I just offered is an example and is not in any way a recommendation of a trading strategy. You should create your own scalping strategy which is based on facts and technical analysis.

Is scalping profitable?

This question is exactly the same as the question: “What is first: the egg or the goose?” Nobody can say 100% if a certain strategy is profitable because of few important factors:

Markets change

The only thing you can sure of is that nothing is sure. While your scalping trading strategy might work today, tomorrow the market will react in a completely different way because of major economic events or clearly because of market sentiment. That is why every strategy, no matter scalping or long term, cannot be relied on for a long time. You have to adjust it all the time when this is needed.

Scalping is stressful

The more trades you make the more is the stress and the frustration of the unprofitable ones. This can create inconsistent stykle of trading and can ruin your trading career. The easiest way to end it up is to wipe out your account in a single trade with not well managed risk. That is why scalping requires high level of discipline and excellent knowledge of the trading platform you are operating with. However, if you manage to trade with a scalping strategy it means that you already mastered the forex trading.

How to find a scalping broker

Brokers do not state they accept or reject scalping. There is no way to see such brokers classified in official reviews site, neither you will receive a “yes” or “no” answer from their customer support. Instead, you should read forum threads and share opinion with people who experienced a real live account execution over the time.

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Currenex Brokers – are they true ECN?

Posted by Deb | Forex,Guest Post | Wednesday 10 October 2012 9:28 pm

The concept of ECN trading has been widely discussed over the last years. There are so many traders who put the conflict of interest question at a discussion that many brokers started to apply the ECN model. But what is the ECN actually? Many traders do not understand this concept and accept all that the brokers tell them. One of the most famous ECN platforms is Currenex and there are a handful of Currenex Forex brokers that might proudly call themselves ECNs.

After you read this article tell me how it contributed to your trading experience. Was it useful for you and will you recommend it to a friend?

Trading on the Forex Market is certainly not an easy task and everyone should carefully understand the models of trading to choose the best for his or her trading style. Let’s see the most widely used trading models.

ECN Forex Trading

ECN stands for electronic communication network and it plays the role of a place where buyers and sellers meet to execute their orders. An ECN comprises of an order book with two opposite sides of the deal – buyer and seller. On each side buyer and sellers place their offerings with quantity and price. It actually looks like an auction but of course everything happens quickly and is managed by automated systems.

The best advantage of this model is the high level of transparency. The Currenex platform, for instance, shows each counterparty name and quantity. Like this you can see with whom you are going to execute the order. The spread is narrowed down to 0.4-0.5 pips depending on the current liquidity – that is to say how many orders are taken in a certain moment.

For example the most traded currency pair EUR/USD can produce a spread on 0.2 pips because there are so many counterparties that currently place an order for EUR/USD. However, the ECN execution is ensured by a provider and it also has to earn some fee for that service. So Currenex brokers usually charge a fixed fee in the form of % of the executed volume. In this case the total spread you might be required to pay will be around 0.6-0.7 pips but it still will save you a lot of costs since the usual target spread of dealing desk brokers is 1.5 pips.

Market Makers

As opposed to ECNs, Market Makers do not offer this level of transparency by simply giving you a quote coming from them. They do not combine many counterparties but narrow down the process to two counterparties – you and the broker. Thus there is a conflict of interest between you and your broker because each losing trade will be a winning one for it and vice versa. However, there is a widely spread misunderstanding that each losing trade of yours ends up in your broker’s pocket. Actually brokers net all clients positions into a single position and then what is left is being hedged fully or partially. In this sense we can conclude that everybody in the market is a market maker even you. If you have a long position on EUR/USD you might hedge it by betting against your friend. The main point is that it is your decision whether to hedge or not.

Which model is the best?

There is no such thing as best trading model. The most important factor is and always be the broker execution no matter if it is a market maker or ECN. Just choose the broker that fits your trading style and that is how you will be successful in the market. Also you should be advised that demo trading is not in any way the same as live. During your journey towards trading perfection you will find out that many obstacles will arise especially during news releases and major economic events. The trading model itself will not help you to be more successful but will help you to understand the mechanism behind trading.


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