Forex Strategy

• Forex Scalping - Extensive Guide on How to Scalp Forex

  December 07, 2011 at 10:22 AM • 4 Comments

  Forex scalping is a popular method involving the quick opening and liquidation of positions. The term “quick” is imprecise, but it is generally meant to define a timeframe of about 3-5 minutes at most, while most scalpers will maintain their... Read More

• Forex Broker Lots

  April 04, 2011 at 3:58 PM

  In the forex market, the term "lot" usually refers to the minimum transaction amount for a particular currency pair. Lot sizes will usually be expressed in terms of the base currency for that pair, but might also be denominated in U.S. Read More

• Essential Forex Trading Terminology

  April 04, 2011 at 3:54 PM

  Like many specialized professional fields, the forex market has developed and commonly uses a set of brief terms or phrases that together form the set of forex trading jargon terms. Read More

• Trading Forex with Multiple Time Frames

  April 04, 2011 at 3:53 PM

  Choosing an appropriate time frame is one of the basic decisions for forex. Time frame refers to the width of the window in which you'll trade. Read More

• Spot Market Versus Currency Futures Trading

  April 04, 2011 at 3:49 PM

  Currency futures trade in a completely different manner than the cash foreign exchange market where trading is done primarily in the spot and forward markets over an electronic and telephone network. Read More

• Predicting Market Extremes Using the Put/Call Ratio

  February 22, 2011 at 3:34 PM

  Options have long been popular with forex traders for hedging, for directional bets, maximizing profit or for more complex strategies that are out of the scope of this article, but over the years, the record of options trading for buyers... Read More

• Trend Following - The Most Popular Strategy in all Financial Markets

  February 22, 2011 at 3:34 PM

  Trend following is perhaps the most popular long-term strategy in all financial markets. It is exceedingly effective and profitable when the conditions are favorable, is quite straightforward in its methodology, and there are many individuals, past and present, famous or... Read More

• Trading the News Releases

  February 22, 2011 at 3:34 PM

  News and economic data are the main drivers of market developments, but in a little different way than many traders think. While many novice traders expect important economic events and news releases to be reflected on the price immediately, complain... Read More

• How to Become a Forex Trader - The Simple Three Step Guide

  February 22, 2011 at 3:34 PM

  Forex is one of the most volatile type of investment markets and one of the most exhilarating experiences in the world. Forex, in it's nebulous form, is simply trading currencies-buying and selling, betting for and against the various currencies of nations. Read More

• Forex KISS - How Keeping It Simple Can Improve Your Bottom Line

  February 22, 2011 at 3:34 PM

  It's a phrase everyone knows - Keep It Simple Stupid [or Keep It Short and Simple]. However, forex KISS is better known than practiced. Part of this is because of marketing, as well as that ever-present "keep up with Mr.... Read More

• Technical Strategies Based on Crossovers

  February 22, 2011 at 3:33 PM

  In this article we will study the various kinds of crossovers and how to exploit, interpret and confirm them based on the interaction of indicators with the price and each other. Read More

• Getting Involved in Forex Day Trading

  February 22, 2011 at 3:33 PM

  Day Trading can offer a very exciting and lucrative way of trading the forex market for those who take the time to prepare appropriately for the endeavor. Read More

• What Kind of Stop-Loss Order Should a Trader Use?

  February 22, 2011 at 3:33 PM

  In this article we will discuss the various ways to implement a stop loss order. Every trader who has had dealings in any of the financial markets is familiar with placing and executing a stop loss order, but many are... Read More

• Range Trading the Forex Market

  February 22, 2011 at 3:33 PM

  Range trading in foreign exchange involves the ubiquitous attempt by forex traders to "buy low and sell high." While this may appear very basic at first glance, doing so in practice can prove somewhat elusive. Read More

• Forex Carry Trade Strategies

  February 22, 2011 at 3:33 PM

  In general, the forex trading strategy know as the "Carry Trade" refers to an increasingly widespread forex trading strategy that is usually implemented over longer term time frames and involves taking advantage of the interest rate differential prevailing between two currencies. Read More

• Top 10 Forex Exit Signals - Part 2

  February 22, 2011 at 3:33 PM

  In the previous article, we pointed out that one might regard forex as being somewhat simple: you just need to know which pair to trade, when to get in, and when to get out. Read More

• Assessing the Risk-Reward Ratio When Trading Forex

  February 22, 2011 at 3:33 PM

  Many forex traders routinely assess the risk-reward ratio on individual trades they contemplate taking and some even incorporate criteria based on this measure in their trade plans. Read More

• Forex Trading For Success

  February 22, 2011 at 3:33 PM

  When it comes to what successful forex traders have most in common, it has very little to do with their actual trading methodology or informational focus. Read More

• Forex Rollover Considerations

  February 22, 2011 at 3:32 PM

  The interest rate differential between a pair of currencies can either be your best friend or your worse enemy when trading forex since it affects forex rollover rates. Read More

• Useful Forex Trading Maxims on Trading Strategy

  February 22, 2011 at 3:32 PM

  Over the years, many forex traders have found themselves in trading situations which have a tendency to repeat over time. A number of these situations have had the honor of meriting a trading maxim or adage from which a novice... Read More

• Trend Reversals in the Currency Market: How to Time them?

  February 22, 2011 at 3:32 PM

  As traders, we are continuously told by veterans not to try to time markets due to the great risks involved. It is a fact that if you make a sizable commitment in either direction and the market fails to act... Read More

• Assessing Forex Trading Risk With Volatility

  February 22, 2011 at 3:32 PM

  Many forex traders adjust their position size depending upon the risk that they perceive exists in trading a particular currency pair or time frame. Read More

• Cross Rate Trading Strategies

  February 22, 2011 at 3:32 PM

  Trading in cross currency pairs offers significant opportunities to the forex trader. Read More

• Computing Swap Points

  February 22, 2011 at 3:32 PM

  The difference between the forward rate and the spot rate for a particular currency pair when expressed in pips is typically known as the swap points. Read More

• Forex Compound Interest Effects

  February 22, 2011 at 3:32 PM

  Compound interest can really work for you when trading forex and can help you turn a decent trade into a great trade if it can be held over time. Read More

• Cut Your Losses Short But Let Your Profits Run

  February 22, 2011 at 3:31 PM

  One of the most commonly quoted trading maxims is some variation on the phrase: "cut your losses short but let your profits run." The wisdom of this saying has been impressed on novice traders by those more experienced for more... Read More

• Forex Market Information Access

  February 22, 2011 at 3:31 PM

  The unregulated and global nature of the forex market tends to make trading on insider information very unlikely compared to how trading is conducted in the stock markets. Read More

• Less Can be More When Trading Forex

  February 22, 2011 at 3:31 PM

  A good reason to consider trading forex involves the relatively low learning curve involved in trading the various currency pairs. Read More

• Market Cycles and Currency Trading

  February 22, 2011 at 3:31 PM

  In this article we will discuss the relationship between market cycles and forex through a dialogue between a beginner and a successful trader. The successful trader is ST, while the beginner is B: Read More

• The Best and the Worst Times to Trade Forex

  February 22, 2011 at 3:31 PM

  One of the biggest plusses that the foreign exchange market offers traders consists of the fact that currencies trade twenty four hours a day, five days a week. Read More

• Trading Pegged Currencies Low Risk Fixed Currency Trades

  February 22, 2011 at 3:31 PM

  A fixed or pegged currency is one where the currency’s value is matched to that of another asset. The asset may be a single currency, or it may be a basket. Read More

• The Basics of Forex Swaps

  February 22, 2011 at 3:27 PM

  In the forex market, a foreign exchange swap is a two-part or "two-legged" currency transaction used to shift or "swap" the value date for a foreign exchange position to another date, often further out in the future. Read More

• Currency Carry Trade - Let the Interest Rates do the Work

  February 22, 2011 at 3:26 PM

  Experience shows that the most important driver of currency trends is the interest rate differential of central banks. Many financial strategies attempt to capitalize on this knowledge, but the most basic and widespread strategy is the carry trade. Read More

• Strategies for Trading Forex on News Releases

  February 22, 2011 at 3:26 PM

  One of the most interesting trading strategies that forex traders commonly employ is trading on economic news releases. Some traders use economic news releases to get in and out of currency positions. Read More

• Trend Trading Time Frames

  February 22, 2011 at 3:26 PM

  Several different possibilities exist for how to trade a freshly identified forex market trend. These strategies can vary significantly depending on the time frame that the directional trending movement in the exchange rate occurs within. Read More

• Short Term Forex Trading Strategies

  February 22, 2011 at 3:26 PM

  Forex trading can encompass a wide range of different trading strategies and techniques. Read More

• Keep Your Focus on Success Not on Trading Perfectly

  February 22, 2011 at 3:26 PM

  Trying to be a perfect trader who makes money on every trade they take and who never makes mistakes will very likely only frustrate and perhaps even limit a trader needlessly. Read More

• Taking Out Stops in the Forex Market

  February 22, 2011 at 3:25 PM

  Many traders new to the forex market tend to think that because the market is so huge - with trillions of dollars traded per day - that it cannot be easily manipulated. Read More

• Overlapping Forex Trading Sessions

  February 22, 2011 at 3:25 PM

  Many active forex traders have noticed that certain times of the day seem to see more price action and trading volume in the forex market. Often, these especially active periods are when the trading sessions of more than one major... Read More

• Trading Trends in Forex

  February 22, 2011 at 3:25 PM

  One of the most popular sayings heard on Wall Street just has to be, "The trend is your friend." Read More

• Trading Forex Versus Stocks

  February 22, 2011 at 3:25 PM

  The foreign exchange market has often been the market of choice for many savvy traders, commonly being preferred over bond, stock and commodity markets for its liquidity and other desirable characteristics. Read More

• Where Forex Trades

  February 22, 2011 at 3:25 PM

  In general, the foreign exchange market has no centralized exchange, although futures on some currency pairs are traded on major exchanges like the Chicago International Monetary Market or IMM in the United States. Read More

• Diversifying Your Portfolio With Foreign Currencies

  February 22, 2011 at 3:25 PM

  Portfolio diversification consists of an investment strategy which basically spreads risk among a number of different types of investments. Read More

• The 24 Hour Forex Market

  February 22, 2011 at 3:25 PM

  One of the main reasons the forex market has become so popular, especially now that retail accounts are available for online trading via forex brokers, is the fact that the market trades continuously 24 hours per day, five days a week. Read More

• Rollover Fees

  February 22, 2011 at 3:24 PM

  When keeping positions overnight while trading forex, you will inevitably come across the fee charged by your broker to perform rollovers. Read More

• Using Risk Reward Ratios When Trading Forex

  February 22, 2011 at 3:24 PM

  When using appropriate trading risk management techniques, an especially useful technique to use to assess the quality of a particular trading opportunity involves calculating the risk to reward ratio of each potential trade. Read More

• Starting Out Trading Forex

  February 22, 2011 at 3:24 PM

  Public interest has steadily grown in the forex market since the relatively recent advent of online forex trading for retail clients. Most online forex brokers offer their proprietary trading software free of charge to their clients, as do some independent... Read More

• Forex Trading Words of Wisdom

  February 22, 2011 at 3:24 PM

  A profitable forex trading system will incorporate many of the trading maxims or words of wisdom that are commonly passed on from seasoned traders to novices. Read More

• Powerful FX Strategy: Range Expansion Reversal Strategy Part 1

  February 22, 2011 at 3:24 PM • 1 Comment

  Have you ever thought about the daily range of a currency pair? If you have been trading for some time, you know that currency pairs tend to reach the extent of their daily range at some point in the New... Read More

• The Forex Carry Trade

  February 22, 2011 at 3:24 PM

  A number of forex traders have heard of the carry trade and how its relative attractiveness can shift sizeable amounts of international investment funds from one currency into another. Read More

• Cross Rates and Cross Currency Pairs

  February 22, 2011 at 3:23 PM

  The forex market's most actively traded currency pairs all include the U.S. Dollar, and those pairs tend to be where the greatest liquidity exists in the forex market. Read More

• Trading Market Classifications

  February 22, 2011 at 3:23 PM

  Trading markets generally tend to fall into one of the two primary categories of trending and non-trending markets. Read More

• Trading Strategy 101 - Cut Losses Short, Let Profits Run On

  February 22, 2011 at 3:23 PM

  Perhaps one of the most time honored and popular sayings among forex traders has a number of variations along the lines of the following words of wisdom: Read More

• How to Trade Forex Using Trends

  February 22, 2011 at 3:23 PM

  Trends simply help us anticipate market activity. This allows us to get into a trade early and ride the upward trend until the peak. It also prevents us from staying in a position too long and end up losing some gains. Read More

• The Carry Trade and Its Risks

  February 22, 2011 at 3:23 PM

  When considering taking on a carry trade position, a forex trader will first want to take into account the interest rate differential and their forecast for the currency pair over the desired time frame for the carry trade. Read More

• How Professional Strategic Forex Traders Operate

  February 22, 2011 at 3:23 PM

  Those who have arrived at the enviable position of being a professional strategic forex trader for a major international bank or hedge fund tend to focus on taking advantage of longer term moves in the forex market. Read More

• Top 10 Forex Entry Signals - Part 1

  February 22, 2011 at 3:23 PM

  With all of the complexity in forex trading, there is a very simple way to describe success. Almost everything boils down to choosing the right currency pair, entering the market at the right time, and knowing when to exit. Read More

• Common Myths About Forex Trading

  February 22, 2011 at 3:22 PM

  The forex trading market makes up the largest global marketplace and trades round the clock from Sunday night to Friday afternoon, trading somewhere on the order of trillions of dollars every day. Read More

• Learning From Other Traders

  February 22, 2011 at 3:22 PM

  It stands to reason that a great deal of useful knowledge about trading forex and other markets can be gleaned from the experience of other traders. Read More

• How to Create a Forex Strategy Based on Technical Analysis

  February 22, 2011 at 3:22 PM

  Technical strategies aim to predict future prices on the basis of past developments. All that the technical analyst is interested in is the price, and news, or data have no bearing on his decisions. Read More

• Key Tips for Forex Trading Success

  February 22, 2011 at 3:22 PM

  Anyone can get lucky trading forex a couple of times, since exchange rates can fluctuate up and down with roughly equal probability. Nevertheless, forex trading needs to be approached in a highly-disciplined manner in order to achieve optimum results over... Read More

• Trade Timing - How to Decide Entry/Exit Points

  February 22, 2011 at 3:22 PM

  If money management is one half-of trading, determination of entry/exit points constitutes the other half. No amount of successful analysis will be useful if we can't determine good trigger points for our trades. Read More

• Using the COT Reports to Predict Forex Price Movements

  February 22, 2011 at 3:22 PM • 2 Comments

  Before examining the COT reports and a few ways of using them, let us note two important details: Read More

• Trading Managed Currencies - Exploiting Central Bank Policies to Make a Profit

  February 22, 2011 at 3:22 PM

  Managed currencies are those such as the Singapore and Hong Kong dollars, the Chinese yuan, the Russian ruble, where the Central bank doesn’t control the day-to-day fluctuations of the currency, but attempts to manage the direction of the trend by... Read More

• Exploiting Currency Options Expiries for Forex Trading

  February 22, 2011 at 3:19 PM

  Options are contracts that give the buyer the right to buy or sell an asset at a pre-specified time and price. In return, the seller receives a fee for writing the contract which is termed a premium. Read More