RSS

The Technique Of Scalping In Currencies Trading

February 12, 2011 — 9:30 pm

Currency trading is the action of buy and sale transactions of foreign currencies in the internet. Scalping is a trading technique gives profit from many transactions in online market that sometimes last no more than a few minutes.

Thus, unlike the traders who work with large amounts and ready to open positions for a long time to make profit, scalpers can trade with a small investments and earn large number of small deals. In scalping every position may earn you just few pips. For that reason financial traders must complete as many positions as possible to have a big profit. For a successful scalping, traders must learn to trade with minimal losses. Lets’ discuss some trading methods that make scalping less risky.

There are few types of scalping trading technique: time trading, trading with a trend and trading against a trend. Time trading is a trading technique where a fifteen minute graph is used. The specific feature of this method is that the profit is fixed very quickly, but the deal seldom lasts more than a minute. Searching a moment of the breakdown, a trader enters the market on the level of few pips above the maximum or few pips below the minimum of the price. Once the price reaches your level, you must close it once you have earned 1 pip including spread. Please notice that if the spread of this position is 3 pips so your total gain must be 4 pips in order to be in profit.

The other type of scalping trading technique is called trading against a trend. This currency trading is also called gathering cents where a trader is taking one-two pips of profit in each position. Every trend has the moments of so called correction – a small wave against the trend. Watch the candlestick chart and look for the bullish and bearish candles in the trend. This strategy is recommended to be applied during the first and last hours of trading in a specific zone.

The other most popular type of scalping is trading with a trend. This strategy of scalping is used during the trend’s rolling back. When the trend is going up, you need to buy when it rolls back down, if the price is downward, then you have to sell on a rollback up. It is better to use the 10 minute candlestick chart for this technique and a moving average with a period of 10. You close the position once it reaches 2 pips of profit.

There are many Singapore brokers that allow scalping, though we recommend you to check it with your Forex broker before you start applying scalping. Some Singapore Forex brokers don’t allow scalping and may ask you to close a trading account.

0 response
Forex Strategies
, , , ,
Hassam
 

If you like our blog, click on the "Like" button below. Once you do, you will get FREE Instant Access to the Magic Forex Candlesticks plus the Magic Forex Divergence Trading Guides.

 

Forex Programs And Their Role In Currency Trading

October 15, 2010 — 8:18 pm

For a long time only big investors and banks had an access to the international currency market. With the development of the information technologies everything changed and today a private investor is able to make trades in Forex market in the internet. Forex software is a necessary tool for the analysis of the Forex market rates and the connection between a Singapore investor and the Singapore online brokerage company. Despite of the diversity of programs and software in the Forex market, there is a number of software familiar to almost every currency trader and become an integral part of online Forex Singapore trading. In this article we will show the necessity and functionality of some of the Forex programs.

Forex software can be roughly classified into so-called trading platforms and programs for markets’ analysis. The difference between them is that the trading platform helps the traders make the transactions of buy or sale of a foreign currency from the software’s interface, while programs for markets’ analysis can only analyze data without any possibility of communication with a broker and making transactions.

One of the most important features of Forex applications is that they let you to trade not only with the foreign currencies but also any other traded instruments such as futures, stocks, CFDs, indices and others. The point is that the tools of technical analysis used for Forex may with same effectivity work for other financial markets. More than that many tools we use today were originally created for trading in futures or stocks, and only later were used for Forex.

Every trader must have a trading platform. Weather it is a downloadable or web software you cannot trade without it. There are many different trading platforms that you can find in the internet. All of them allow the traders make the transactions of buy or sell and manage their funds. One of the most popular Forex program today is the trading platform Meta Trader 4 (MT4). Most of the Singapore brokers work with MT4 trading terminal, though you can also find such platforms as ACT, eToro and others available for trading.

Though every broker may apply different trading conditions on his Meta Trader platform, still there are many features that can be found in MT4. This trading platform allows trading with different instruments link Forex, commodities, Futures, Indices, etc. It has a big choice of technical analysis indicators that help a trader in his work. Besides it is possible to install your own program of indicators to the MT4 and automate your trading. MT4 trading software allows you to build an unlimited number of graphics with different time frames, receive financial news from your broker and has an internal e-mail. In addition to the PC version, the MT4 has a software for mobile devices.

0 response
Forex Software
, , , ,
Hassam

How Beginner Traders May Succeed In Currency Trading

September 28, 2010 — 3:06 pm

Online trading has its own rules and if you don’t know them it is senseless to hope for success. Currency trading rules have a specific feature. You don’t have to know them in order to trade currencies, but if you desire to make profit you will have to spend much time to learn them and develop your trading strategy. The rules of currency trading are altering all the time and traders must be aware of it. They must be updated what is going in the economical world, have an access to all kinds of analytical sources, publications, news, etc. Almost every Singapore online brokerage firm provides its traders all necessary information about the market. Without the informational support and awareness of the world economic situation trading currencies will be chaotic and unpredictable.

The main two rules that are the basics of currency trading and have a great impact on the success of your trading are technical and fundamental analysis. Technical analysis includes the study and analysis of the past movements of the price graphs. The main goal is to find the trends and other situation that will help you foresee the future changes in currency pairs’ prices. In other words, due to the technical analysis online of the past and current prices with a certain probability of success by forseeing the direction of the rate of the currency pair in the nearest future.

Fundamental analysis is the analysis of the news and events worldwide. The main rule of the fundamental analysis is to be updated with all the events that influence the currency market. To some extent this assertion can be compared to the theory of chaos saying that a breath of a butterfly on one side of the other end. Under the news that is used for the fundamental analysis we mean natural disasters and the release of the macro economical reports in different countries and more. The novice Forex traders must know that even a samall event can influence the currency price, especially if these rumors are about known politicians and financial analysts.

If it is your first time in online trading, you have to learn before you go for real trading. Most of the Singapore brokers offer a free demo account where every trader may trade with real rates using demo money. This is a good time for developing your skills and building a trading strategy. There are many different trading methods available. So you can use a strategy of someone else or work on your own one. Whatever strategy you use, the goal is that it must bring you income.

The other important rule in Forex Singapore trading is the emotions control. You cannot trade successfully if you let your feelings influence your trading decisions. The fear of loosing your investment is the worst enemy of your trading. It is evident that nobody wants to lose, but any trading strategy has its own principles and you need to follow them disregarding of your fright and other emotions that you may experience during your trading.

0 response
Day Trading
, , , ,
Hassam

Is It Difficult To Invent An Effective Trading System?

September 9, 2010 — 7:19 pm

Every trader’s desire is to build an automatic trading system that would trade by itself and make you money. There are many traders who rush forward buying different automated trading systems dreaming to increase their capital without having any trading experience. Unfortunately not every trading system is good.

It doesn’t matter how many attempts were done to create the effective trading system. For today all the existing trading systems don’t provide constant income. Foreign exchange market Forex is a mixture of a number of financial events, economic situation and the nature of a trader. Theoretically it is impossible to make a single strategy that would consider all these points. Some experts believe that the most effective trading strategy is the one that includes as little aspects as possible, but the tests prove that this approach doesn’t give the desired results too.

Needless to say how much time were spent on creation and testing of an ideal trading system that would guarantee profit on Forex trading. Every day millions of traders, mostly the beginners, loose a lot of money trading with the automated systems. We don’t mean that all automatic systems are bullshit and have no chance to succeed – absolutely not. The thing is that when the trading decision lays on a leaving person, sometimes its results are much better than that of a robot.

As for our researches, the best results show the signals in the swing trading. If you look at the graphs, you will see that the currency price always goes up and down. Good optimization of parameters of the indicator can give accurate signals to buy or sell at the peaks of currency’s progression. Using the small orders of 10-15 pips on the minute chart, may show you a good result in a short period of time. Please notice that this method of trading is called scalping, when you open a lot of short term positions. Not all Singapore brokers allow scalping, so before you apply this technique, be sure that your broker will not ask you to close a trading account.

Dreams associated with a fast enrichment in a short time with little effort excite the minds of many online traders. If you are using a trading system that doesn’t work for you, don’t think that there was a mistake in the code upon its building. Still most experienced programmers are not giving up on finding a ideal trading system that brings a steady profit. Every naïve newbie needs to know and remember that Forex trading in Singapore is a sophisticated thing that is not so easy to automate. The most successful trading system may be reached on emotionless calculations and long experience. Before you try to create a trading system, you need to spend many years on studying the Singapore Forex market and the language of programming.

0 response
Forex Trading System
, , , ,
Hassam

Scalping As The Effective Currency Trading Strategy

August 28, 2010 — 4:18 pm

A method of scalping is very popular among Forex traders. It is applied by traders who get the profit from the price fluctuations during one day. Usually the time between the position opening and closing is very short and may last only few minutes. Accordingly the profits achieved from these positions are low too, but the total earning achieved by the large number of trades can be high enough. Some traders may make up to 200 positions a day.

Of course not all of these positions are profitable, the target is to reach the profit in total, that is quite possible. While making scalping the stop-loss order is set closer to the price of position opening in order to guarantee the reduction of losses if the market changes its direction.

All Forex traders know about the changability of the currency market. Even the price within one day moves in a certain cycle with its ups and downs. If during one day the average price change is about fifty points, the difference between the minimum and maximum prices will have much greater value. Once you get a small movement, you will have a chance to significantly increase your capital.

Novice traders often get a false impression of the great opportunity to increase their capital as there is an opportunity of reinvestment. Unfortunately this first impression may be wrong as without any experience, this strategy is doomed to failure. First of all you need to know on what level you place the stop-loss orders. Because if you set it up too close to the price of opening, it increases the risk of losses in the market during the volatility even if you can assume the direction of trend correctly. In order to decrease this risk, we recommend you to avoid placing the stop loss if you make scalping. But you must always be in front of the trading platform and watch your trades. In case of a quick movement against you and there is no chance to roll back to initial levels in the next few hours, you must close the trades, otherwise you may lose all. More than that, if you have a big deposit and trade without the stop loss, your total funds may be lost and you will get a margin call.

The other reason of the novices’ failure might be because of the emotional side and the tension that arises when trading with real money. We recommend all newbeis to try scalping trading on a demo account first, since there is virtual money there is no fear of loss.

Every scalping trader must be careful while selecting a Forex broker to trade with. Not all Singapore brokers allow scalping. We recommend you to review the best Singapore Forex brokers list and join the one that meets the needs of your trading method.

0 response
Forex Strategies
, , , ,
Hassam

The Best Online Trading Method.

August 6, 2010 — 8:48 pm

There are plenty of many Forex books online that teach newbies how to trade using the levels of Fibonacci, Elliot Wave, etc. Of course these ebooks are very good for any new Singapore trader, but the problem is that the writers of these books give 100% guarantee that if you do as they say, you will make profit.

Unfortunately the reality is not so easy and to justify himself in the loss, a trader begins recklessly recall all his steps in order to make sure there is a reason of his mistake and loss. Someone may has forgotten to take into account a very important indicator while opening a trading positions, another one has miscalculated the Fibonacci levels – and now such traders are making a sad conclusion: “No, the financial trading is not for me…” And of course everyone who thinks this way is wrong, as Forex in Singapore has many systems and some of them are very easy like trading with reverse orders that can give you more than 500 pips monthly.

The advantage of trading with a reverse orders method is that you have a good chance to catch the market disregarding of its direction. I suggest many of you have faced a problem when you predict the direction of the market and open a trading position. But the market heads against you and your position is closed by stop loss order with a loss. And after that the market changes and goes your direction. How angry we are when it happens.

In order to diminish the chances of losses in such situation a strategy of reverse orders was invented. It is a very simple trading strategy and every newbie trader may apply it. What you need to do is when you open a position on Buy instead of stop-loss level after 25 points you place a position for Sell. The same you do for a position for Sell, you protect it with a position for Buy. The fact is that you don’t use a stop loss and if the trend goes against you, you will still stay in the market.

By using this strategy you have a opportunity to correct your trading position any time despite of the market’s direction. The correction works the following way. If one of the orders got a profit of 10 points you should open another order in this direction. This method will let you to minimize the losses. When you have three positions (two sell and one buy) where in overall you are in profit you can start closing the profitable positions if you see that the market turns and takes another direction. Trading this way allows you place many positions and you can also use high leverage for it. This trading method may be uses on any platform and with all Singapore brokers.

0 response
Forex Strategies
, , , ,
Hassam

Making Your Own Currency Trading Strategy.

August 1, 2010 — 3:12 am

It is not important with what Singapore brokers or trading terminals you are trading. If you don’t have your own trading technique, it will be very hard for you to make a stable profit on Forex market. Before you start trading with big investments of your own funds, we recommend you to take your time and create your own trading strategy using demo or mini real Forex account. Once you invent a trading strategy and make sure that it works for you and helps you make profit on Forex market, you can go ahead and invest your funds in trading.

Notice that almost every trading technique is based on two main parts, that are central in Forex trading in Singapore: the point of entry the market and exit from the market. In order to assure yourself success in trading currencies online the first thing you need to learn is when it is good to open a trading position and when to close it. This is exactly what you need to aim while making your own trading strategy. The knowledge about the market and the information when it is better to start your trade can be gained with the help of both technical and fundamental analysis and of course practice. In general your trading system must give you signals for certain actions that you have to apply. The purpose of the technique is to help you find the market situation, when starting a trade gives you the biggest potential for income with smallest risks.

When trading on Singapore Forex markets, every person must look for the way to minimize his risks and at the same time make income. The professional traders define the risks by the levels of support or resistance. They usually use the stop-loss and take-profit orders to secure their trades. The stop-loss order must be set on no closer than 20-30 pips from these levels on the condition that you don’t risk more than 5% of the total investment in this position. The take profit order must be set on the next level of support or resistance in the direction of price movement. As the price changes your direction, you move the stop loss further from the losing area to the break-even zone. The most important factor using this system is to find the right entry point.

The target of the exit system is first of all the safety of your main capital and of course generating profits. The successful trading strategy must be targeted for minimizing the risk of losses but not seeking for huge profits. If you learn how to reduce your risks while trading Forex, you will definitely make profits while trading online. Those trading systems that are based on the analysis of Elliott Waves, give an accurate way to find the optimal entry and exit points with the lowest risk or trading losses.

0 response
Forex Trading System
, , , ,
Hassam

Main Tips Of Forex Market Analysis

July 25, 2010 — 6:48 pm

Online trading is a very complicated system and only its good understanding, knowledge and experience can let you trade Forex successfully. The interest in technical analysis is increasing in Singapore Forex and other Asian countries and sometimes it totally replaces the fundamental analysis. But it is apparent that technical analysis is not enough for a good trading in Forex market. The world economy is so dynamic so any events can have a big and sudden influence on the market and cannot be predicted by just looking at the graphs.

Financial calendar is a good tool for the fundamental analysis .You can use it in order to be updated with all financial news and events and be ready to the volatility in the market when something important happens in the world. You can look for a calendar with financial events on many business sites as well as on the sites of all Singapore brokers. The most influencing the market events usually happen in USA (USD) and Euro zone (Euro). That is the reason why 60% of all trading is done on EUR/USD currency pair. This is the most popular currency pair in Forex as Europe and USA have the biggest economical systems that influence all the world economy. Though trading in Singapore is mostly concentrated on such currency pairs as AUD, JPY, SGD and USD, still the currency pair EUR/USD has a big popularity among Asian traders as well.

The Euro zone Governing Council gathers every month, on Thursday of the second week when the Europe interest rate is announced. During this meeting the members give the average review of euro zone financial development prospects and rates of interest that is the most important key to control liquidity.

The similar statement of the interest rates in USA is also important for the fundamental analysis of USD. Interest rate of both USA and Europe is a great indicator for the currency pair EUR/USD. We also suggest to watch the cross-currencies that don’t include USD for a detailed picture of a fundamental analysis. While trading with EUR/USD currency pair there is a good reason to pay attention on the cross-currencies such as EUR/JPY and EUR/CHF. The Swiss (CHF) economy, for example depends on Euro zone economy. That’s why the change of EUR/CHF causes the change in rate of EUR/USD.

There are numbers of traders who concentrate their attention on both technical and fundamental analysis while trading on financial market. Though these analyses are very different by results, they give a broader and detailed picture of the market. It is important to be regularly updated in the world political and business events while trading in Forex market, as any change in one of the country’s economy may result the chain of movements in Forex market charts.

0 response
Forex Trading System
, , , ,
Hassam

What Can Traders Understand From A Forex Graph?

July 13, 2010 — 9:51 am

If you are a new to Forex trading, you have probably heard about currency graphs. For many traders Forex charts is a way to successful trading. Almost every professional Singapore trader makes his whole Forex trading strategy basing on the information that he receives from the graphs only. You can get a lot of information out of a simple graph for a certain currency pair: historical rates and approximate future direction. But before you start trading according to the charts, you need to practice in order to understand them.

Understanding the charts is called a technical analysis. In general there are two kinds of the analysis: technical and fundamental. While technical is focused on the charts, fundamental is all about the world economical events and financial news. There are traders who trade using only technical or fundamental analysis types, but there also traders who focus their attention on both technical and fundamental analysis in order to have full information about the certain currency pairs that they trade with.

In order to go on you will need a demo trading account. Almost all Singapore brokers have|offer a free demo account where you can practice your trading skills using the real quotes and graphs. When you register for a demo account you can pick up few currency pairs’ charts that you will watch and practice on. We recommend you to pick up the currency pairs that include USD, for example EUR/USD, USD/JPY, USD/SGD, etc. The USD currency pairs are the most active and have lower spreads. Alos it is much better if you trade with only few currency pairs and watch their behaviour. When you know what moves these currencies and how they react on different factors it will be easier for you to realize their directions.

You can set your chart for different time frames according to your trading strategy. The usual time frames that charts offer are from 1 min to a week. Means that each candle stick that you see in the chart is developing during the time frame you set. So if you have an hour of your free time to practice your trading, we advise you to set your graph on a 5 min time frame, so every 5 min when the last candle stick is done you will be able to make a decision regarding your trading. But we suggest using the small time frames like up to 1 hour for practice purpose only. Most of the professional Singapore FX traders use one day time frame or even one week aiming for the long term trading. The long term trading is more accurate and has more chances for making high profits. But on the other point of view the long term and high time frame of your chart demand higher investments and margin.

0 response
Forex
, , , ,
Hassam

Advantages Of Mini Online Trading Accounts

July 5, 2010 — 4:39 am

Today online trading became so popular among traders from Singapore and all the countries, so trading brokers do the most to adjust the currency trading features to different needs of every trader. It makes the traders to adjust the serious financial trading with their own investment and trading ability. Singapore brokers give their traders not only a great variety of trading tools, but also traders can open different types of the trading accounts that let them to trade with different trading volumes.

The standard Forex trading account is known as an account type where one trading lot is 100 000 units. So if you open a trading position with a leverage of 1:100, you will need about $1000 of your own investment in order to open a position for 1 standard lot. So if you trade in the standard account you need to deposit tens thousands of dollars in order to have safe and systematic trading.

As many traders are not ready to make big investments into Forex market, today beside standard account, many brokers offer also a mini Forex and even Mirco Forex accounts. The sufficient difference between these types of the accounts is that they involve less trading volumes and at the same time require less money. For example mini trading account has a minimum of 10 000 units and requires $100 investment for one trading position. At the same time micro trading account has 1000 1 lot units and it is enough to have only $10 in your trading account in order to start the real currency trading.

The development of mini and micro trading accounts is a great help for those people who are new to Forex trading and are not interested to risk huge investments. Though almost every broker provides the customers with a free practice trading account, you cannot compare the demo trading with trading in a real account where your own money are involved. Many people who succeed making profit in demo, fail trading the real money. The thing is that when trading with the real money, the traders become more sensitive and usually make mistakes on their trading decisions. In this case mini and micro Forex accounts are very helpful as they let the traders to enter the complicated Forex world with small amounts of real money in order to feel the real trading and practice to manage with their emotions and don’t let them influence on their trading activity. Trading with small money, traders can practice the real trading as much as they need without a risk to lose a lot of money of their own.

Today each Singapore trader as well as a trader from any other country can start his real trading from as little deposit as he can afford. We will do our best to share more information about trading in Singapore and other countries in the future.

0 response
Forex
, , , ,
Hassam
RSS