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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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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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Hassam

Why Forex Trading Is Not As Simple As It Seems

August 14, 2010 — 8:51 am

Today online trading in Singapore is a quiet business, as you can stay at home and handle your trading account with a click of a mouse as long as you have a computer and internet connection. Even if you trade Forex alone at home, you actually work with the millions of other investors from all the corners of the world who desire to get to your pocket and get more money than you have. Once you have invested to the pool of the global currency market, your fund immediately becomes a target of millions of hungry for Forex profits sharks. Currency Trading is a tough work and according to the law of nature – the strongest survive. If you are tolerant and experienced enough to wait and catch a strong trend it might be possible for you to get a part of profits, otherwise losses are inevitable because financial market is full of hunters for your money.

If you are interested in online trading and desire to succeed in trading, drive away the idea of easy money. A successful and profitable trading needs big experience and professional skills. A trader must develop a character of a hunter: wait as long as it takes for a best moment of a profitable situation, then make a correct action and take your prey. Your knowledge and understanding of the market – these are your teeth that you will use to tear a piece of profit out of a huge carcass of the currency market. Singapore FX trading is a tough work where there is no place for feelings and unnecessary emotions.

There is a good method that traders may use in order to decrease their risks in online market. The psychological pressure of the market sometimes does not allow making correct decisions. That’s why using an automated system will help any Singapore trader to get rid of emotions in trading. Emotions are the main enemy of your trading. Sometimes they do not allow picking up the right time to close or open a trading position and as a result traders have addition losses. If you let emotions control you, it will be impossible to trade Forex successfully. The best solution is to teach yourself leave your emotions aside while trading Forex, but if you cannot succeed to do it yet, use an automated trading system until you learn to control your feeling.

Automated system helps the traders make decisions only according to a trading plan, embodied in its parameters, where there is no place to emotions and doubts. Automated trading system saves a trader from many problems, but not from work. In order to be sure that your automated system works and generates profit, you will have to work a lot to test and improve it all the time.

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Forex
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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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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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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.

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