Trading the news is becoming a popular technique to trade the forex markets … and why shouldn’t it be? Time and time again you see currency pairs move 50 to 100 pips within minutes or even seconds after a major news release. When you see that, I bet you’re thinking, “50 to 100 pips!? That’s easy money!” Maybe it is, and maybe it isn’t. It all depends on how prepared you are to trade a news release.
The goal of this lesson isn’t to give you a specific “Trading the News” strategy. The goal is to point you in the right direction and show some of the risks involved with trading these events, because here at BabyPips.com, we want to help you help yourself in developing your own methods that fit YOU best.
Wednesday, October 3, 2007
MACD
MACD is an acronym for Moving Average Convergence Divergence. This tool is used to identify moving averages that are indicating a new trend, whether it’s bullish or bearish. After all, our #1 priority in trading is being able to find a trend, because that is where the most money is made.
With an MACD chart, you will usually see three numbers that are used for its settings.
* The first is the number of periods that is used to calculate the faster moving average.
* The second is the number of periods that are used in the slower moving average.
* And the third is the number of bars that is used to calculate the moving average of the difference between the faster and slower moving averages.
you can learn more about MACD on : http://forexgen.com/level-2-forex-basics/macd.html
With an MACD chart, you will usually see three numbers that are used for its settings.
* The first is the number of periods that is used to calculate the faster moving average.
* The second is the number of periods that are used in the slower moving average.
* And the third is the number of bars that is used to calculate the moving average of the difference between the faster and slower moving averages.
you can learn more about MACD on : http://forexgen.com/level-2-forex-basics/macd.html
Stochastics
Stochastics are another indicator that helps us determine where a trend might be ending. By definition, a stochastic is an oscillator that measures overbought and oversold conditions in the market. The 2 lines are similar to the MACD lines in the sense that one line is faster than the other.
you can read more about stochastics on :
http://forexgen.com/level-2-forex-basics/stochastics.html
you can read more about stochastics on :
http://forexgen.com/level-2-forex-basics/stochastics.html
Demo Trading
You can open a demo account for free with ForexGen. This account has the full capabilities of a "real" account. Why is it free? It’s because the broker wants you to learn the ins and outs of their trading platform, and have a good time trading without risk, so you’ll fall in love with them and deposit real money. The demo account allows you to learn about the Forex markets and test your trading skills with ZERO risk.
YOU SHOULD DEMO TRADE FOR AT LEAST 2 MONTHS BEFORE YOU EVEN THINK ABOUT PUTTING REAL MONEY ON THE LINE.
I REPEAT - YOU SHOULD DEMO TRADE FOR AT LEAST 2 MONTHS BEFORE YOU EVEN THINK ABOUT PUTTING REAL MONEY ON THE LINE.
"Don't Lose Your Money" Declaration
Place your hand on your heart and say...
"I will demo trade for at least 2 months before I trade with real money."
Now touch your head with your index finger and say...
"I am a smart and patient Forex trader!"
you can gather more information on : www.forexgen.com
YOU SHOULD DEMO TRADE FOR AT LEAST 2 MONTHS BEFORE YOU EVEN THINK ABOUT PUTTING REAL MONEY ON THE LINE.
I REPEAT - YOU SHOULD DEMO TRADE FOR AT LEAST 2 MONTHS BEFORE YOU EVEN THINK ABOUT PUTTING REAL MONEY ON THE LINE.
"Don't Lose Your Money" Declaration
Place your hand on your heart and say...
"I will demo trade for at least 2 months before I trade with real money."
Now touch your head with your index finger and say...
"I am a smart and patient Forex trader!"
you can gather more information on : www.forexgen.com
How To Earn Money Trading Forex
In the FX market, you buy or sell currencies. Placing a trade in the foreign exchange market is simple: the mechanics of a trade are very similar to those found in other markets (like the stock market), so if you have any experience in trading, you should be able to pick it up pretty quickly.
The object of Forex trading is to exchange one currency for another in the expectation that the price will change, so that the currency you bought will increase in value compared to the one you sold.
Example of making money by buying Euros :
Trader's Action EUR USD
You purchase 10,000 euros at the EUR/USD exchange rate of 1.18 +10,000 -11,800*
Two weeks later, you exchange your 10,000 euros back into -10,000 +12,500*
US dollars at the exchange rate of 1.2500.
You earn a profit of $700. 0 +700
*EUR $10,000 x 1.18 = US $11,800
* EUR $10,000 x 1.25 = US $12,500
An exchange rate is simply the ratio of one currency valued against another currency. For example, the USD/CHF exchange rate indicates how many U.S. dollars can purchase one Swiss franc, or how many Swiss francs you need to buy one U.S. dollar.
The object of Forex trading is to exchange one currency for another in the expectation that the price will change, so that the currency you bought will increase in value compared to the one you sold.
Example of making money by buying Euros :
Trader's Action EUR USD
You purchase 10,000 euros at the EUR/USD exchange rate of 1.18 +10,000 -11,800*
Two weeks later, you exchange your 10,000 euros back into -10,000 +12,500*
US dollars at the exchange rate of 1.2500.
You earn a profit of $700. 0 +700
*EUR $10,000 x 1.18 = US $11,800
* EUR $10,000 x 1.25 = US $12,500
An exchange rate is simply the ratio of one currency valued against another currency. For example, the USD/CHF exchange rate indicates how many U.S. dollars can purchase one Swiss franc, or how many Swiss francs you need to buy one U.S. dollar.
New to Forex Markets
Forex is definitely one of the most exciting and profitable markets. If you want to join the elite and start investing you need to follow 5 very simple steps that will eventually lead you to success:
Self Study:
In order to start investing you need to study and observe the Forex market carefully so that you can make the right decisions when the time comes.You can study the fundamental analysis to monitor the political and economic news' effect on FX market. Also the study of technical analysis is useful as it predicts the price movement based on past experience.ForexGen offers a Training section developed specially for new traders. This section mainly contain comprehensive summarized documents teaching you how to deal with the Forex market and what procedures you need to follow in order to minimize the risk.
• Practice:
ForexGen's Demo account gives you the chance to practice your Forex trading skills with absolutely no obligation on your side. You will also be able to learn how to virtually place market orders and stop-loss orders without risking a penny.
• Investment Strategy:
After gaining enough knowledge about the Forex market, you are ready to start putting a strategy for your investment. First thing you should do is make sure not to let your emotions get in the way of your strategy as it’s a common mistake made by new traders.Secondly you need to make some decisions like how much you are willing to risk, if it's worth risking, if the market is suitable for that kind of investment and finally you always have to be aware of the amount of money you are risking and if you have enough funds to maintain your margin.
• Observation:
Once you have started your investment, you are now capable of being automatically connected 24/7 throughout ForexGen's new trailing stop software. Trailing stop allows you to control your balance 24 hours a day.
• Open your live account now:
Knowledge, practice, strategy and tools. You are definitely ready to start your investment by opening your first live account. Not like the demo account, you will now start committing real money. Just remember to stick to your strategy.
Self Study:
In order to start investing you need to study and observe the Forex market carefully so that you can make the right decisions when the time comes.You can study the fundamental analysis to monitor the political and economic news' effect on FX market. Also the study of technical analysis is useful as it predicts the price movement based on past experience.ForexGen offers a Training section developed specially for new traders. This section mainly contain comprehensive summarized documents teaching you how to deal with the Forex market and what procedures you need to follow in order to minimize the risk.
• Practice:
ForexGen's Demo account gives you the chance to practice your Forex trading skills with absolutely no obligation on your side. You will also be able to learn how to virtually place market orders and stop-loss orders without risking a penny.
• Investment Strategy:
After gaining enough knowledge about the Forex market, you are ready to start putting a strategy for your investment. First thing you should do is make sure not to let your emotions get in the way of your strategy as it’s a common mistake made by new traders.Secondly you need to make some decisions like how much you are willing to risk, if it's worth risking, if the market is suitable for that kind of investment and finally you always have to be aware of the amount of money you are risking and if you have enough funds to maintain your margin.
• Observation:
Once you have started your investment, you are now capable of being automatically connected 24/7 throughout ForexGen's new trailing stop software. Trailing stop allows you to control your balance 24 hours a day.
• Open your live account now:
Knowledge, practice, strategy and tools. You are definitely ready to start your investment by opening your first live account. Not like the demo account, you will now start committing real money. Just remember to stick to your strategy.
ForexGen Academy
ForexGen Academy was created to introduce novice or beginner traders to all the essential aspects of foreign exchange, in a fun and easy-to-understand manner.
No hard expressions, no buzz words, and no rocket science language is used throughout
these lessons.
Here is all what is needed to
create the ultimate business:
* Yourself
* Your computer
* Internet connection
That’s it! No employees. No advertising. No cold calling. No inventory.
Imagine a business with just you, your computer, and a high-speed Internet connection?!
That’s all you need trade in the foreign exchange market!!
A properly trained Forex trader can potentially earn BIG PROFITS in every single month,
week, or day!
(Of course a poorly trained Forex trader can suffer BIG LOSSES as well.)
you can learn more on :http://forexgen.com/forexgen-academy-18.html
No hard expressions, no buzz words, and no rocket science language is used throughout
these lessons.
Here is all what is needed to
create the ultimate business:
* Yourself
* Your computer
* Internet connection
That’s it! No employees. No advertising. No cold calling. No inventory.
Imagine a business with just you, your computer, and a high-speed Internet connection?!
That’s all you need trade in the foreign exchange market!!
A properly trained Forex trader can potentially earn BIG PROFITS in every single month,
week, or day!
(Of course a poorly trained Forex trader can suffer BIG LOSSES as well.)
you can learn more on :http://forexgen.com/forexgen-academy-18.html
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