Forex Terms

At this time I want to tell to you about the terms used in forex trading.

Alligator

is a concept of technical indicators from Bill Williams to determine price trends. Is a combination of three (3) fruit and the Moving Average: 5,8,13. You can use it on the graph M30 (30 minutes) & H1 (1 hour). This indicator can be found on the MetaTrader software.


Technical Analysis

is an analysis in Forex trading to measure price movements over the price graph. The things that should be known from this technical analysis is the trend, saturation, support, ressisten, and Pivot Points.



Fundamental Analysis

is an analysis in Forex trading to predict price movements based on fundamental news. News here in the form Fundamental economic news, affiliated, and security that affect price movement.



Buy

is the position in Forex Trading for the Buy. Condition is if the price was going up significantly then you can open a Buy position.



Fibonacci

is a branch of the particular technical indicators to determine areas of support-ressisten. The most famous and easy to use the Fibonacci Retracement. Other families are Fibonacci Arc, Ekspansion. Fibonacci device you can also find the Metatrader software.



Forex

is an investment that trade one currency with another currency. Is an abbreviation of Foreign Exhange or exchange foreign currency.



Leverage

Is the leverage in Forex trading, where the comparison factor will be multiplied by the contract size.

Example is 1:200 with a mini contract is 10,000 margin account is used (1:200) x 10,000 = 50 units traded currencies.

For example an open position USD / JPY the margin used is $ 50. If trade with the GBP / USD then the margin is used for 50 Pounds Sterling. If converted to dollars is 50 times the rate of GBP / USD. Eg rate GBP / USD is at 1.4000 rate. Then used margin is 50 x 1.4000 = $ 70

For Standard accounts, contracts used by 100,000 Leverage is 1:100. The average opening of accounts per lot is $ 1000.



Margin

is guaranteed in forex trading. This term is associated with leverage. If Leverage 1:100 for mini accounts (10,000 contracts), the margin is used for 100 units of currency. Trading USD / CHF with a margin of $ 100. Trading EUR / USD to 100 euros or $ 130 if the rate of EUR / USD when it is at 1.3000.



Pip

is the value of 1 point rise or drop in price movements. For a mini account, 1 point is worth $ 1, for the standard account is $ 10.



Ressistent

are the points that are above the current price. Point of support can be drawn from the line at Fibonacci Retracement Time Frame H1 & H4.



Support

are the points that are below the current price. Point of support can be drawn from the line at Fibonacci Retracement Time Frame H1 & H4.



Zig Zag

is a technical analysis tool to determine trends and support-ressisten prices. Read More

I Call It! Triangle Double Combo Fibo

Here is one common technique I use to predict a currency movements. I call this technique Triangle Double Combo Fibo. This technique uses a different Fibonacci 2 and using the triangle shape.



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The Secret To Forex Trading Success With Fibonacci Ratios

Leonardo of Pisa, is a mathematician who discovered the series "Fibonacci". Fibonacci appeared at the time he was breeding rabbits and find out how many pairs of rabbits he had at the end of the year based on the breeding behavior of rabbits. This is just nonsense that no approach to the FOREX.

Many people regard as the Fibonacci sequence of mathematical abstraction, but it is rooted in the real world math applications. Fibonacci sequence is useful to make us aware and then describe the hidden patterns of the people around us every day.

Then, how could this be applied to investments? Smart investors can quickly to understand that there are hidden patterns in the stock market based on the mass of investors behavior. "Buy low and sell high" and "The best time to buy is when there is blood in the streets" are but two investment aphorisms not only works, but also from the hidden patterns of understanding of investment markets.

The reason that the pattern of investment market very well, and the hidden is because they are "close", and can not be seen. Day after day, hour to hour fluctuations in investment markets can not be predicted with accuracy. But given the overall trends that lasted for a period of time would be longer.

Using the Fibonacci sequence involves a series of numbers. Each of the following phone number is the sum of the two previous numbers. This progress like this 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, and becomes infinite. There is a number in that number. For example, take a number; is approximately 1.618 times the previous number. Ancient Greeks found reprehensive amount of 1.618 golden ratio which is the highest essence of balance. This balance is the fundamental strategy of profitable investment
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Make Big Profit

If you want to get big profits in forex trading, what you need to do is you have to take a high enough risk that you need to buy a valuable currency expensive. So in essence I would like to invite you to get rid of the mindset "cheaper is better".

When I first started forex trading system, I start with how complex and complicated to get a big profit.
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Forex Fundamental Analysis

One strategy used by traders to make trading activities is to conduct a fundamental analysis. Fundamental analysis is an analysis that uses a current events, political and financial policy trends, and the overall economic movement. A trader usually use this technique when the trader wants to make a long-term trade. You should know the fundamental analysis there are two factors that can affect the movement or the underlying trend, these factors are economic factors and environmental conditions. In fundamental analysis, there are two subcategories, namely capital flows, and trade flows.

Tracking Balance of Payments
In this case we learn about the demand for currency during a certain period, usually known as the balance of payments. Net capital flows is the amount of currency bought or sold through investment, which can include a variety of investment whatsoever.
Trade Flows
The second step we need to do to do a fundamental analysis is to measure the flow of trade, imports and exports which occurred in a country and its impact on the value of its currency. In this case international trade has a major role in the forex market, since importers must sell the currency to buy foreign goods or services. This is one of the ways used to understand the changes in exchange rates, and to predict the condition of the currency.

Monitoring Global Events
As I tell before, that fundamental analysis is always affected by global events, and has a very significant impact on international investment. This can create a situation of political economy has become something very important in doing forex trading activities. Any change in the relationship between the governments of other countries may affect the price of any currency pair in the forex market. So, to make a profit in accordance with our desires, we must always follow the news that is happening at the moment.
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Forex Strategies

Selection strategies in Forex Trading is very important, because our strategy is determining decide our fate in the future. In the world of forex trading there are many types of commonly used strategies for trading, including hedging strategies, strategy intraday, swing trading strategy, scalping strategies, news trading strategies, etc.

At this time I wanted to share some of the right strategy to get good results. However, at the time of trade, there is the possibility that any system will succeed in the long run if not used in connection with a solid money management either.

Full hedge Carry trade
This strategy involves opening a trade with a positive carry and hedging it with a broker that does not charge the carry.

Risk free arbitrage with spread betting?
I found there is a risk free arbitrage between spread betting in British pounds and hedging the same position with a standard forex broker.

5 / 8 Cross over strategy
This is a very simple strategy that involves buying and selling currency pairs when the 5 exponential moving average crossed the 8 EMA.

Simple Trendline Strategy
This trading strategy involves using Trendlines as buy and sell signals.

This information can I give to you, hopefully this information useful.
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Points to Learned About Online Forex Trading

If you are a beginner in the world of Forex Trading there is nothing wrong you have read the article in front of you. Basically, the factors that affect the forex trading is the macro economy. Therefore, macroeconomic volatility can affect price and supply and demand that triggered the currency short-term fluctuations is an opportunity to make the most important trading and was at that point of entry and exit form the basis of your learning.

The curriculum is available in Online Forex Trading Tutorial, generally using the same curriculum that is, learning about how to read speculation made through a number of charts and indicators.
Chart Type:
1. Line chart
2. Bar chart
3. Candlestick chart

Some of the most important indicators to be followed in order to assist you in making decisions:
1. The average true range (ATR)
2. Bollinger bands
3. Commodity Channel Index
4. Linear Regression
5. MACD
6. Momentum
7. Moving average
8. Parabolic time price
9. (ROC) Rate of Change
10. Relative Strength Index
11. Slow Stochastic
12. Standard Deviation
13. Stochastic

This information can I give to you, hopefully these tips useful.
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The Basic Rules of Forex Trading.

All things of life would be an option to be taken, such as right or wrong, men or women. For those of us who are experimenting and are already adept in the financial markets, we are always faced by the two different choices, or the opposite. The option is to sell or buy.

In the world of currency markets are actually a lot of people do not know what is really a very needed in this market. This happens because most of them are reluctant to learn and practice forex trading, this reluctance comes from fear that is in a person.

On occasion this time I wanted to share some tips with you about the basic rules of forex trading.

1. Crawl
Trade is a powerful tool in achieving a peak of success and success, because with this you can move very quickly. But you should start slowly at first. The main reason why many people who do not succeed in trading is because they jumped the principles underlying the application of trade disciplines. Discipline is meant is the emotion, because by controlling your emotions, you can exercise patience.

2. Practice.
Before you start forex trading. There is nothing wrong with the one you start trading practice, a way to open a demo account somewhere. Practice diligently, until you feel ready to face the real forex trading.

3. The best time to start trading.
Never do trading activities after you face a bad day. Because when that person is dominated by high emotions, making it difficult to control.

A few tips from me, hopefully these tips very useful for you. Read More

Risk Management

Hello friend how are you?? At this time I wanted to share some knowledge to you all. Ehm .. The information will I give to you is about risk management techniques.

The reason I wanted to give this information is to protect you from the dangers of Forex Trading.

Ok .. us to the subject matter.



1. Cut loss

Is an act of closing your position opposite the market price movement. Cut loss function to reduce the losses that we experience that will not cause greater harm.

For example, when we're opening a position on the Open Buy GBPUSD at 1.5000 price, then we certainly are looking forward prices rise above 1.5000, so we make a profit. We hope that the price move keposisi 1.5100 so that we can get 100 points profit. However, prices move opposite to what we expect. Prices moved down from the position of 1.5000 to 1.4980, and still showed a tendency to fall.

At this time we'd better close the position even though we had to lose 20 points (1.5000 to 1.4980 = -20 points). And, action is what is called the cut-loss losers closed position to prevent greater losses.

2. Switching

Is an action that the same can be said to cut losses, will have a different switching with cut loss. The difference is in the closed position when we are losing, we opening new positions in the same direction with the market price movement.

With, for example equal to cut losses earlier, then we remember that we have closed our position at 1.4980 level and then we opened a new position or commonly called by the name of the Open Sell because prices tend to decline. Thus, if prices continue to fall until it reaches 1.4900 so we have a whole 20-point loss but earn a profit of 80 points (1.4980-1.4900 = 80) so that the total profit we still get 60 points.


3. Averaging

The following steps may be badly in need of extra capital to maintain our position has been opened which was moving against the market price. Let's take the example of the Loss Cut above case, if we want to take action averaging then we opened a new position but in this case is not like switching our positions are close losses and then open a new position as opposed to our previous position by reason prices have been move down.

In averaging we are not closing our positions have been opened or commonly known as the Open Buy and even we add many new positions open in the same direction of the Open Buy back!

We do it because the price has decreased so prices will likely rise again. And that's when we do Open Buy a second in the hope the price goes up even beyond the Open Buy our first so we get a double advantage.

Such risk management techniques can I give to you. Hopefully this information is useful for us all.
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Forex Concepts

At this time I wanted to share with you a little knowledge about the basic concepts of forex trading.

Basic things you need to know in online trading are:
1. You should be able to determine the factors that can affect currency movements.
2. You should be able to read and understand the description of a graph.
3. You should be able to know about the trends that are happening in the market.
4. Always be wary of economic events that have a major impact on the global currency.
5. Doing healthy management techniques to achieve maximum benefit.

I think enough information so I can give to you. Hopefully this information useful for you to achieve successful lives. Amen ..
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Look at the Economic Indicators Of a Country

Yes ... I think this is the appropriate title in my articles, because at this time I want to tell you how important an indicator of the state in forex trading.

But first you should know that the indicators that will tell you I was not an absolute thing that can affect a country's economic situation, because there are many factors that can influence it.


Ok.. we headed directly subject:

1. The Gross Domestic Product (GDP)
GDP is a measure that can indicate the total value of buying and selling goods and services that occurs in a country for one year. A trader usually focused on the two reports published in the months before the final GDP numbers. The report mentioned is a progress report and a preliminary report. GDP growth is always interpreted as the internal economy of a country.

2. Retail Sales Report
This report serves to determine the total receipts from all retail stores in the country. This measurement is derived from a sample of retail stores at any country.

3. Industrial Production Report
This report shows the change in the production of factories, mines and utilities within a nation. A trader using this report to measure the stability of the utility industry.

4. Consumer Price Index (CPI)
Consumer Price Index is a measure of changes in prices of consumer goods occurred in a country.

So the information can I convey to you. And, do not forget to always visit this blog .. OK! hehehehe
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Some of the reasons why many traders are using Technical Analysis

In a decision a trader must be able to learn very well the political situation and economic conditions that occur in a country, whether that happened in the past and is happening at this moment. This, is done to predict the movement of a currency.

However, in doing this is not as easy as reversing the palm of the hand, because to do so very necessary to a knowledge and experience in handling and analyzing of data in large quantities.

Therefore, many a trader who uses Technical Analysis in the conduct trading activities.

In considering technical analysis it is necessary to understand its three underlying principles:

1. Everything that happens in a country will cause a currency movements.

2. Currency prices always follow the trend that occurred in the currency markets. This we can know by looking at patterns that emerged in the market all the time.

3. Currency price not only follows a trend in terms of looking at historical market data, but will continue to follow this trend in the future.

So the information can I give to you, hopefully this information can be useful for you.
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Trading The Same With Golf??

If we look carefully the actual investment by the game of golf has some similarities. Really? If you do not believe it please read the article below.

1. Emotion.
Emotion is something that is inherent of a broker or trader. In trading you should be able to control yourself so that you avoid the danger of loss of profit

2. Learn from the Masters
A beginner golfer can learn from the master golfers like Tiger Woods. This is done to find out how to hold the golf club right. Similarly with beginner investors. But of course you can not learn with a Tiger Woods but you can learn by famous investors like Warren Buffett, Peter Lynch and George Soros.

3. Be Wary of Friendly Advice
Perform an examination of the validity of the claim. This is done to guard against your own friends. Because in this case can become a friend of the opposite.

4. Find a Good Caddy
If the word is often known golf caddy, the people who can serve us. So did the caddy found on trading. But the caddy found on trading it should have extra capacity, ie it must be able to give suggestions that are good for our business continuity

5. Watch for Red Flags
Like golf, the trades are also red flags. However, there is a red flag on the trading is not a sign to show where the holes are, but the red flag that meant in trading is a sign of danger.

6. Play the Percentages
Do trade is always a calculated, so that later on you do not feel some remorse for what you do.

7. There Are No Mulligans
As in the game of golf there are no second chances. Therefore you are required to formulate a good strategy. However, if you do not plan your strategy, a good idea to ask advice from an expert in the field.

8. Always practice
Tiger Woods can become a master golf because he often practiced. Therefore, it is strongly recommended for those traders who are beginners like me to practice more often, in order to become a master trader, or to simply become an expert in this field. hehehehehehe

9. Learn from Experience
Often times we hear that the failure is the best teacher that ever lived. This was also true in the game of golf as well as trading. If we take the point of view in the game of golf, the first improvement we do is how to hold the right stick, but the trading improvements we first do is how do we can formulate an appropriate strategy patterns in situations and conditions that we face .

10. Sophisticated Equipment Can't Guarantee Success
Any sophisticated golf equipment that we have will never guarantee our success in the golf game. Similarly, trading, any sophisticated equipment we use can not guarantee our success. So how can a little so that we guarantee to get a success? Once again I want to say to you to make the best possible strategy, because we'll never know what will happen later. And, this is a function of the strategy we have made earlier, namely to make a buffer to maintain our position.

This information can I give to you, and apologize if any mistakes the word, because I was a newbie

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How To Forex Investing

At this time I want to share information with you about things you should look when you are trade by forex:
1. Baby Pips:
A pip is the smallest unit of price for any foreign currency,

2. Forex Glossary:
There is nothing wrong you must first know and understand the terms commonly used in the forex. This is done so that you are not wrong in interpreting the term in forex trading.

3. Investopedia:
This online financial encyclopedia contains an extensive 10-part article on forex investing. Therefore, you must have enough information from Investopedia.

4. National Futures Association(NFA):
NFA is an organization that manages all markets depends on future cash flow. NFA can assist you in developing an appropriate strategy with you.

5. Commodities Futures Trading Commission(CFTC):
CFTC has similar duties with the SEC (Securities and Exchange Commission). Through the CFTC you can learn quickly what to avoid in your learning curve through a detailed forex advisory that offers information about other resources as well.

6. Martket Traders Insitute (MTI):
Martket Traders Institute (MTI) is a place where you can learn to understand the forex trading for free
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Introduction to Term Trading

This time I want to inform some of the terms commonly used in trading. Hopefully this article can be useful.

1.Foreign exchange rates
The foreign exchange rate is the between two currencies i.e. the amount of one currency needed to sell (or buy) in order to buy (or sell) the unit of the other currency. There are two ways to express such a rate. The most common in international is the amount of any currency that corresponds to one U.S.Dollar. So when we see the USD/DEM at 1.2000 so, the one dollar can be exchanged for 1.2 Dmarks. The American way or American techniques the rates uses the opposite direction, that is it expresses the dollar amount that can be exchanged for one unit of foreign currency. So when we see for example the Dmark at 0.6625 so the one mark can be exchanged for 0.6625 dollars (or the same at 66 1/4 cents). The term "cross rate" is usually used to express the balanced between two nondollar currencies like DEM/SFR.

2. Bid and offer
The exchange rates in the practice are quoted as two-way rates. So dollar/mark quotation will read something like 1.2000/10. The bank or company which quotes this rate will understands that it buys marks (selling dollars) at 1.2010 and sells marks (buying dollars at 1.2000). In other words it buys cheaper. Of course, the opposite is true for the person that asks for a quotation. The difference between the purchase (buyers) and the sale (seller) rates is called "spread".

3. Rate direction and currency direction
One needs to keep very clear in mind the idea of market direction. The First from the other is, in the foreign extern market it is a mistake to say that the market is going up or down. In the stock market one can use this expression as stocks either go up or go down. But, in the FX market a rate as we said defines the parity of two currencies, hence at any time one goes up , so the other will going down. And, the other issue that often confuses people (even traders and bankers) is the difference between a currency moving up and its rate going up. We have to explain this in more detail as any misunderstanding can lead to painful surprises when trading in the real market. For simplicity reasons let us forget for the time being the bid/offer spread. So let us suppose that dollar/mark moves from 1.2000 to 1.2010. In this case the rate goes up whereas the value of the mark goes down (simply because the value of the dollar goes up). In other words one needs more marks at 1.2010 to exchange for one dollar.

4. Basis points or pips
The foreign exchange rate usually consists of an integer in the part and 4 decimal points (or 2 decimal points when expressed per 100 units like e.g. dollar/yen). So, that the decimals are expressed either at 10th thousands or hundreds. For the example 0.0001 or 0.01 is called basis point or pip. E.g. a 50 pips change of 1.5000 is either 1.5050 or 1.4950.

5. Spot and forward rates
Some people this concepts very easy for using and understood as cash rates and futures. As a matter of fact we would not like to use the term "futures" in here, because that will be make confusing with the typical futures contracts. Instead, let us use a more descriptive approach. A spot rate is the exchange rate which is valid for a transaction (example: purchase of currency A and sale of currency B) that must be concluded within the next two working days. Thus the value date (i.e. the day of actual delivery of currencies) of a transaction performed on a Monday is Wednesday. For Thursday it is Monday (weekend days are not counted). Besides that, a forward transaction regards a deal which is concluded today and actual effect will take place on a fixed future date In the next paragraph we describe the relationship between a spot and a forward rate.
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