If you’re new to the trading game, and you’re not a Ph.D. in Economics, then charts are the way to go. The most basic charts are bar and line charts. In fact, even if you’re an experienced trader, bar and line charts probably still have a special place in your daily trading life. These charts are simply indispensable.
“A picture... Read more
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The word “forex” comes from Foreign Exchange, and is often ab¬breviated to FX. Trading the forex market involves the buying and selling of currencies. In simpler terms, it’s the exchange of one currency for another at an agreed upon rate.
All the currency of the world is involved in the forex market. It may be confusing to choose which one to trade, but all you really need to know are the major currencies, which are the most frequently traded. It’s also important to know that forex is traded in currency pairs. Trading currency pairs means you’re buying one currency while simulta¬neously selling another currency. The most heavily traded products in the forex market are typically: • EUR/USD • USD/JPY • GBP/USD The forex market is one of the most liquid markets available to trade. It also has decent volatility, and you really don’t need that much money to get involved in forex trading, thanks to the high leverage. Many forex brokers will let you get started with as little as $1,000 in your trading account. However, one thing that every trader considering the forex market should know is that it’s extremely volatile. You can easily make (or lose) thousands of dollars in a single day. It’s also an unregulated market. Many forex brokers offer “free quotes and charts” and “no commissions,” but keep in mind that nothing is for free. It's like at the exchange booths when you’re on vacation: you might ex¬change $100 into 80 Euro, but when you change the 80 Euro back into dollars, you only receive $96. The same concept applies when trading forex: you’re paying at least 2 “pips.” This amounts to approximately $20, depending on the currency pair you're trading. Another disadvantage of forex trading is that you’re NOT trading at an exchange: there is no "Foreign Exchange." You’re trading against your broker: if you’re selling, then your broker is buying from you, and vice versa. And that's why your broker is giving you the quotes for free: he can basically give you ANY quote he chooses, since, as stated before, there are no market regulations. There are definitely positives and negatives when it comes to trading forex, but regardless of what you decide, keep in mind that the forex markets can be tricky – they shouldn’t be traded lightly.
As a trader, you understand that a good trading strategy is one of the single most important factors when it comes to your trading.
With a proven, reliable strategy, you'll have a map for your trading future and a guideline f... Day trading can be simple, but don’t make the mistake of think¬ing that it’s easy.
There are many websites and late-night infomercials that try to tell you differently. They make you think that you just have to read a few pag... Day trading can be risky, but, with the right education and approach to the markets, it can also be your ticket to true wealth. And when I say wealth, I am not just talking about having a lot of money. “Wealth” to me means havin... Let’s keep it simple: money is made if you buy when the market is going up and sell when the market is going down. That’s why technical ana¬lysts hold to the motto "The trend is your friend.”
Support and resistance levels are... Let’s keep it simple: money is made if you buy when the market is going up and sell when the market is going down. That’s why technical ana¬lysts hold to the motto "The trend is your friend.”
The price chart of a security may... Having a trading plan is like having a solid blueprint to build your home, or having a map when traveling to a new location. Even a professional trader won’t survive in the markets without a good trading plan.
And once you’ve...
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