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Stop Loss Order As The Most Important Tool For Cutting The Losses.

March 14, 2011 — 8:00 pm

Every Singapore trader wants to diminish his losses, but unfortunately not everyone knows how to do it. Sometimes we wonder how some beginner traders accumulate losses. They wait so long, so we begin to marvel to their patience. Their losses increase so quickly that in most cases they loose the investment very quickly. In simple words, novice traders usually increase their losses rather than profits. Therefore, if you are one of such traders, you need to abandon your current trading method before it is too late. Though it may be very easy to say it is definitely not so simple to do. How can we train ourselves to follow this principle? Actually it is not so hard. If this bad situation of rising losses happens to you frequently, then either you have no skills in Forex trading or you don’t have a necessary knowledge. No other reason exists.

As you probably know, experienced traders advise putting a stop loss order not just for fun, but for a certain reason. When starting a trading position you must be ready for the losses. Everyone has losses when trading Forex in Singapore, even successful traders. The point is that the professional traders know how to decrease the losses and at the same time increase the profits. When you open a trading position you take a risk and therefore, if the risk is justified you get profits, if not, you have losses. As for the stop-losses, so you need to know how to set them. We know why many traders don’t like to limit their losses, because as soon as they set a stop-loss order, it is executed. If it happens with you often, the reason might be in the wrong level that you choose for placing a stop-loss order. Probably you place your stop loss orders too close to the market and for that reason they are executed very frequently during the market’s movements. It is recommended to set a stop-loss order on the basis of support and resistance levels of the market. Then it will be executed only if the situation on the market significantly changes.

Stop-loss order is mandatory for any trader. Quite often, there are strong movements on the Forex market. At this moment, your intention to close a trading position with your Singapore online broker will be done with a delay. And if your trade is at a loss, so before your trade is closes, you will lose even more money. But if you would set a stop-loss order, the position would be closed automatically for the asked price.

If you don’t wish to place a stop loss order, then do the following. Before you make your mind to leave a loosing position, simply calculate the market’s potential. Make an analysis and check the economical news calendar. In simple words, when leaving a loosing position you have to base you decision on something, and not just hope for the best. In the Forex trading, good luck is very changeable.

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Forex
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Hassam
 

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Gold Is The Most Reliable Money In The Economy

February 13, 2011 — 3:30 am

One of the most important ways to save people in extreme situations is a stable economy, which helps to eliminate hunger, protect people and survive with disasters. But money is not very resistant to all kinds of changes. It is related to the market system that lets it to drop or increase in price.

Sometimes we notice that prices for different things rise from time to time. The reason is not because they become more expensive, it is because the money itself worth less. A country where money supply is not secured by gold, has inflation. If the currency of the country is tired to the gold stocks so the crisis is virtually invisible and the national currency is stable to fluctuations.

Watching the prices on gold during the last years you can notice that they are vary all the time. Though it is not the price of gold that is changing, it is the price of money against gold moves up and down. Virtually the gold price remains steady for many centuries though the quantity of money you need to buy gold changes from time to time.

You may have a question why there are so many cases of countries’ bankruptcy, inflation if the quantity of existing money is equal to the gold. The reason is that the world economists desire to raise the value of the money and the methods they used to do so cause all kinds of economical disasters where common people suffer. Instead of curing the economic situation of the country by rising the gold stocks, economists choose the path of inflation releasing more money. As a result all becomes expensive and people don’t have enough funds to buy things. Money depreciates more and more and all this leads to poverty and chaos.

Today there is so much money in the world, that it is impossible to associate it to the rate of gold, because it would rase the price of gold in a million times. For that reason such methods as inflation is necessary to do in order to keep the stability of the world economy.

The appearance of electronic money changed the situation. Banks have a lot of virtual money that are not tired by any gold supply. So we can say that the present price of gold has being deliberately significantly decreased.

Gold is one of the most traded commodities in Singapre Forex market. Silver and Oil are popular too but their volumes are much lower. There are also many other commodities like Platinum, Rice, etc available for trading by many Singapore Forex brokers. Trading commodities is much different than currencies. Commodities market is more volatile and usually has bigger spreads that requires any Singapore trader be more careful in building his trading strategy.

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Commodities
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Hassam

Trading On The News As One Of The Most Popular Trading Approach.

December 27, 2010 — 4:00 pm

Thousands of strategies were built since the time when Forex trading in Singapore was open. And every time their inventors were proud to declare that a true Forex strategy is found. But in the end none of these systems could guarantee a stable income for a Singapore trader. Most of the existing systems either don’t work at all or strop working after a long use. It makes sense as the Singapore Forex market is volatile. Even an effective strategy that brings you profit now will fail tomorrow. It will have to be upgraded according to the market’s changeable conditions. But the situation is not as bad as it seems. Out of thousands of Forex strategies there are ten good ones that won’t die even after tens and hundreds of years.

One of these techniques is the news trading strategy. In this article we will discuss this approach. It is one of the most universal Forex strategy. Its basis is to make transactions during or after the announcement of important economic events. Still the strategy is focused on the strong market trends otherwise it would not make sense. The most powerful news is the majority of financial events in USA. The special attention must be paid to the news on interest rate changes as it usually causes very big rates movements.

In order to succeed trading on the news, we suggest you to follow these main rules:

1.Don’t risk much of your balance. You have to always do a good money management and for news trading it is even more important. If generally you are trading with 1/10 of your funds, so on news trading you should modify it to 1/15 or more.

2.Don’t place a trading position before the news announcement. The early opened position has a big risk for losses. Though you can easily find out the forecast of the news, you cannot know for sure if these anticipations are going to be true. Thus placing a trading position before the news looks more like gambling than trading. So wait till the news will be announced and you will be able to figure out the direction of the market.

3.Open your trades in a right way. You have to be carful when opening a trading position on the events announcement. Follow the following recommendations to avoid the mistakes:

Prepare yourself 15 minutes before the events announcement. Using the current price level make two pending orders: one for buy and one for sale. Thus you will be ready for any movement of the events. It is very important not to place the orders too close to the current rate. Because before the news announcement the rate may jump to different directions. Your orders must be placed in more than 20 pips from the current price. In order to secure your trading, we advise you to put the stop loss orders as well in each direction.

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Forex Trading System
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Hassam

Traders’ Psychology And How To Remain With Profits In Forex Market.

November 10, 2010 — 6:18 pm

In this article we will talk about the psychology of trading in Forex market. Regardless of trading skills all traders must know one of the main principle of successful currency trading: give your trade a chance to bring you profits.

In order to follow this principle, you have to have a lot of patience not to finish a profitable trade too early. And it is very important to know how to control yourself if you want to stay in the market for a long time. If you don’t have patience, you might close a trade too early with a small gain but the other day you may have big losses and it will ruin your little profit.

In order to avoid it, try to apply the rule of money growth. To accustom yourself to this rule, we can advise you to imagine a bad trade in your mind. When you begin to ‘scratch your hands’ and wish to close a trade early, immediately imagine a bad result of this trade. This is an effective method. When a person imagines something bad, he instinctively doesn’t want this to happen. It will help you with your trading, but be careful not to believe in the bad trading scenario that you imagine. Otherwise, each time you imagine something bad, you risk to make it happen. Remain calm, because being nervous leads to the unsuccessful trading.

We would like to share with you our observations of trading Forex in Singapore. They are directly related to psychology, but this time not of the market, but of a trader. Singapore Forex as well as Forex in any other corner of the world is booming and more new traders join this financial market on a daily basis.

If a trader performed a profitable trade or just started trading on that day, he could easily fulfill the rule that we talked about above. However, if a trader gets a loss earlier that day and then starts a next trading position, he is no longer able to follow the trading rules. And it’s all due to human nature. Having a loss, a trader begins to be very cautious. At the slightest suspicion of a rollback, a trader stops his trade in order to cover his losses.

In other words, after some losses in trading a defense mechanism of a trader starts working. And instead of doing correct actions, he is making mistakes. After loosing a trader tries to get the lost back. Although the best approach would be to apply a little more tolerance and close a trade not at the moment of covering the losses, but when the trading position brings profits. Thus you not only recover the losses, but also get a small gain. Once again we are convinced that psychology plays a great role in online trading in Singapore. Its understanding will help you to dramatically improve your trading results.

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Investing
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Hassam

How To Find The Best Trading Signals Provider

October 21, 2010 — 1:16 pm

There are many trading portals about trading in Singapore that offer to subscribe to Forex trading signals. What are these signals and what benefits they give to a trader? Can the usage of these signals be effective and what is the difference between using the trading signals service and the money managed accounts? In this article we will discuss these points and give you all needed information about online trading signals.

First of all you need to find out about the currency pairs that you get signals for. Most of the trading signals are published for the major currency pairs such as EUR/USD, JPY/USD, GBP/USD. If you are looking for the trading signals for cross currency pairs, you will need to spend more time looking for them online. The signal you receive shows you point of opening a trading position for a certain currency pair and its closing with a profit (take profit) and loss (stop loss). Usually, the providers of trading signals advise to use the trailing stop-loss, which changes automatically accordingly to the trend in order to fix the maximum profit. In this case the level of stop loss is moving as long as the price moves your way. Being in the profit area, it guarantees the closing of your trading positing as soon as the market will go against you and reach the stop loss level.

Usually Forex trading signals are sent in a certain time. The most popular trading signals are provided for the daily trading. They can be sent with an interval of several hours. Signals, which are focused on long-term trends in the Forex market may be received few times a week. When buying the online trading signals, you have to be sure that you know whether these signals for short, medium or long term trading.

Before you pay money for the subscription to the currency trading signals, we offer you to contact the signal provider via email or telephone. Make sure that you are dealing with a professional Singapore trader and ask him as many questions as possible. If after you paid for the subscription to the trading signals, you don’t get the support from the service, then you should search for other currency trading signals.

In the conclusion to this post we would like to offer to newbie online traders to thoroughly check the Forex market and its basic principals of trading before you purchase the subscription to the Forex trading signals. Each of you has a great potential to become a professional Singapore Forex trader. But if you don’t learn to make decisions in Forex market you will never develop this potential in yourself. More than that it is much better if you close the trading positions with a profit making your own independent decision according to your own trading strategy.

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Forex Strategies
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Hassam

The Subjective Aspect In Forex Trading

September 15, 2010 — 12:50 am

Personality in Currency trading is one of the most important factors that cannot be ignored. The result of trading depends a lot on it. Though this problem was tried to be solved by different trading systems, still it is up to a trader to decide how to act. In general subjectivity is considered as a negative aspect in Singapore Forex trading as it makes much harm to a trader. The thing is that in most cases a currency trader is under the influence of emotions and may do many mistakes while trading Forex. A real person is an emotional being and cannot perform as a robot, for that reason there are so many different systems created in order to allow a trader keep his trading outside the emotions.

It is a proven fact that when trading with his own money, a trader is more influenced by his emotions than when trading with the funds of someone else. For that reason Forex in Singapore and other Asian countries is full of traders who choose to earn money on managing the trading accounts of the investors.

Psychology of a trader plays a great role in currency market. It is not only the likelihood of a mistake due to the emotional state of a trader, the traders’ psychology is also a part of the prices of the market. Everybody knows that the creation of every tick on the chart has a psychological background of events taking place around the world at the moment. Each online trader in the world is involved in the formation of Forex market, but not everyone considers his own behavior while trading Forex.

Some online traders’ trading technique is based only on their own intuition and in many cases this approach is very successful. Some researches say that human subconscious accumulates all events that have taken place already and the ones that are going to happen. But a trader doesn’t use all the information that his subconscious provides him and thus we loose many useful details that could help us in our lives.

If a trader’s intuition may give good indicator for making a correct trading decision, it would be a perfect idea to study and apply such trading technique. The problem is that it is very subjective and teaching such strategy for a successful trading on Forex market is almost impossible. The way it can be done is practice your trading skills on the demo trading accounts. Thus every trader can check what signal his brain gives him and how to use it on his trading. So instead of watching charts we can pay more attention on our own character. Make subjectivity your best adviser in Forex trading that will support you in making decisions. Give it a chance to help you instead of trying to reduce its role on trading and blaming it of all failures. We wish every Singapore FX trader a good trading. Trade Forex as you want and enjoy it, watching as every tic increases your capital.

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Forex
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Hassam

Best Forex Trading System

August 31, 2010 — 7:23 am

When trading in Forex market it is recommended to decide on a specific time frame of a Forex chart and trade according to it only. Experienced traders use the time frames of 4 hours, 24 hours or 1 week. There are certain benefits and disadvantages for the high time frames. The bigger is your time frame, the more funds you have to put to your trading account because each trading position requires higher margin. But at the same time you have the prospect to make higher profits. The market’s behavior is more predictable for higher time frames but it may take you few days to find a good opportunity to enter the market. In this article we would like to share a strategy of trading in 4 hours time frame using the candle stick charts that can be found at all Singapore brokers

Pay attention that trading with 4 hours candle stick charts requires much patience and time. It may take you much time to find a good chance to enter the market and also from 12 hours to 5 days to keep a trading position. This technique is based on the trends that sometimes happen in the Singapore Forex market. The target is to enter the market in the beginning of the trend and leave it in the end of the trend. According to the strategy a trader must analyze the market and his open positions every 4 hours after the last candle in the 4 hours graph is finished.

Upon analyzing the market it is recommended to check the rates for the specific currency pairs for 4-5 days before on a 4 hours candle stick chart in order to see if there were some trends before or there is an opportunity for a potentially good downward or upward trend coming. The decision of opening or closing a trading order may be done only every 4 hours when the last candle is completed and a new one has begun.

If you notice that the last three candles show that the market is going up, this is a good signal to open a buy position. If at least 2 last candles go down, this is a situation for a potential downward trend and you can place a sell position. In order to reduce possible losses you can use such orders as take profit and stop loss. You can place a take profit order after 120 pips in case if the prices between the opening and closing of the market did not go over 80 pips for the last five trading days. If the prices exceeded 80 pips for the last 5 days, you can place the take profit order on 240 points.

We wish all traders good luck and invite them to share their opinions of Forex trading in Singapore.

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Day Trading
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Hassam

Forex Trading Technique With The Levels Of Support And Resistance

August 19, 2010 — 1:36 am

One of the basics of technical analysis in Singapore Forex trading are the levels of support and resistance. Every time the price breaks a level of support or resistance, it is usually shifting to another state and forms new levels of support or resistance according to its positions. Usually the changes are reversal – the support level becomes resistance and resistance turns to a support level.

The rate of the market depends on the support and resistance levels. When it breaks one of these levels and doesn’t return immediately so it is a good signal for any Singapore FX trader for a potentially profitable trade. Nevertheless, breaking of one of the levels is not enough in order to guarantee you a high chance for a successful trade. It also requires the quality analysis of the breakthrough of the support and/or resistance levels.

Forex market has a spontaneous character and sometimes it is very unpredictable. Its volatility is often called as “market noise” and causes a lot of spontaneous movements. Making some researchers among the technical analysis books we can often find the images of a strong trend taking place after breaking one of the support or resistance levels. Such examples give a false impression to any newbie trader that Forex trading is so simple and making profit trading online is so easy. But in practice currency market is not as easy as it looks on the pictures. In order to see how it works, you can analyze the historical movements of one of the currency pairs in the candlestick chart. There you will find a lot of support and resistance levels in the past periods and will be able to study their breaking and trend appearance. As you will notice, in practice things are much more different and confusing. Here the problem is not only in the market noise mentioned above, it is a complex of different factors that can confuse any Forex trader – market’s random behavior, volatility, traders emotions and many others.

In order to make right trading decisions and guarantee yourself a chance for successful trade, you cannot do without a certain criteria and rules that you will apply to the markets’ analysis before entering the market. These criteria will help you define true and potentially good situations from false and irrelevant ones and improve your chances for success.

Due to to their own knowledge many Singapore Forex traders apply the levels of 3-5% for short-term trends and 10% for long-term trends. Yet, this approach is very simple and doesn’t show the real situation at the moment of the breakthrough price movements. Sometimes it is very hard to determine for what trend these 10% or 5% must be counted.

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Forex Strategies
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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.

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Forex Trading System
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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.

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Forex Trading System
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Hassam
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