Month: November 2018
A common approach to forex trading is to play with small stakes and target large price moves in the region of 50-200 pips. Indeed I trade this way myself using my main 4 hour trading system. However an alternative approach is to increase your stakes and look for much smaller price moves. That way you only need to find one decent trade per day if it generates around 10 pips, for instance.
It’s not that easy to do, but you can achieve this target if you employ a sound trading strategy. The best approach is to concentrate only on the major currency pairs (such as the GBP/USD, EUR/USD, USD/JPY, EUR/GBP and GBP/JPY, etc) and look for pairs that are trending strongly upwards or downwards during a given trading session.
You simply look at say the 1 hour chart of all of the major pairs and see which ones are moving strongly upwards or downwards. Then once you’ve done that you can use the shorter time frames to get a good entry point.
The best strategy is to find out which currency pairs are moving upwards on both the 1 hour and 15 minute charts, and then hone in on the 5 minute chart. You want to wait for the price to start moving sideways or downwards on this shorter time frame before turning upwards again, because this is an excellent sign that the established trend is set to continue, and therefore likely to net you at least 10 points or so if this is your target.
Many intraday traders use this type of strategy and for good reason. If you know there is a strong trend in place, then the short-term chart will present you with some decent trading opportunities, particularly near the beginning of a particular trend.
Therefore it’s fairly easy to generate a safe 10 pips every day, particularly if you use a few technical indicators to help you. For example you could use moving average crossovers, or you could wait for the RSI and/or stochastics to become oversold and then go long if there is a long term upward trend in place.
There are lots of methods you can use but the point is that if you always trade in the direction of the overall trend, then it is fairly easy to generate consistent profits. You should find that you can easily find one outstanding trading opportunity every single day across the various different currency pairs. After all you only need to generate around 10 pips per day to make a decent living from forex trading.
Who knew that a modest illustration of an Italian mathematician from centuries ago would soon become a moving force in the vastest market of modern times? Leonardo Fibonacci, also known as Leonardo Pisano, experienced a stroke of genius as he tried out several number sequences and tried out (or used as examples, to be precise) what are now known as the Fibonacci numbers in Liber Abaci, his groundbreaking book. The book introduced the Arabic numerals and the Fibonacci numbers, long used by Indian mathematicians, to the Western world, earning Fibonacci a place in history. He is presently regarded as arguable the most talented of all the mathematicians from the Dark Ages.
The Fibonacci numbers, which Fibonacci simply introduced through a problem involving rabbits, play an important role in Forex trading, one of the most popular choices in investments these days. According to the system used by the said sequence, each number after the first two numbers it follows is, in fact, the sum of the preceding two numbers. This is why the Fibonacci number sequence begins this way: 1, 1, 2, 3, 5, 8, 13, 21, and so on. But what does this mean, or how does this apply in the Forex market?
It is no hidden secret that the Forex market is always on the move. It goes up and down according to changes in economics. Thus, engaging in Forex trading amounts to hard work as far as maintaining a profitable position is concerned. A Forex trader has to use all his or her faculties to spot alarm signals and make the necessary trend lines to protect his or her investments. The Fibonacci number sequence helps a Forex trader become more attuned to possible abrupt changes by anticipating the results of a particular movement cycle. Through the use and understanding of the Fibonacci numbers, a trader engaged in Forex trading can, at the same time, minimize his or her risks and maximize his or her profit yield.
Timothy Stevens is a Forex Options Trader who owns – He has helped hundreds of people on Trading Forex with Options.
He has recently developed a free e-course showing you a step by step process for starting your Forex Trading easier. To learn how to start Forex Trading with Options without wasting your time and losing more money, visit
Alpari Uk is one of the most established and trustable Forex Brokers on the market. Alpari Uk is regulated under the Financial Services Authority. With Alpari Uk you can trade with the Metatrader 4 trading platform. This trading platform is among the most widely used platforms in forex trading. It has several advantages. For example, by using so called Expert Advisors you can trade forex automatically even when you sleep. Forex Megadroid, FAP Turbo and Forex Shocker is among the most popular Expert Advisors that you can use if use Alpari Uk. Alpari Uk makes money on spreads and commissions. When your turnover is very large, your broker make a lot of money from your trading. Is there a way to get a discount or cashback on all this money your broker is making from your trading?
Yes there is! Take a look at the following calculation example:
Assume that you open an account with Alpari Uk, which offers 0.42 pip discount per roundtrip lot traded. One pip equals about $10 on average if you trade EURUSD, EURCHF and EURGBP. Lets say that you deposit $2000 on the account. Our estimate is that you will turn over about 20 Lots per $1000 per month on your account when using FAPTurbo and Megadroid. Assume that your turnover is 100 lots per month on your $5000 account.
Your monthly cash rebate during the first month would then be:
0.42 x 10 x 100 = USD 420
Your annual ROI would then be (420×12/5000) about 100% per year, only from the cash rebates.
This is a very conservative figure since it does not take any compounding at all into regard and assumes zero growth from expert advisors. Assuming a monthly growth rate of 20% you could make $6000 per year from this program only. The good thing with this program is that you make money bas on your volume, not only on your win rate.
It is 100% free to sign up and your spreads or commission remains the same after joining this program so there is really no reason why not to join. It is simply just money waiting to be collected by you!
Alpari Uk is not the only broker that is connected to Cashback Forex. You can also claim a cashback from the following brokers: Alpari UK, Avafx, Dukascopy, Etoro, FXCBS, FXCM, FXDD, Fxopen, Fx Pro, GallantFX, Go Markets, Liteforex, Marketiva, Tadawul FX, X Forex
If you are a forex trader, sign up for this program today and start to take advantage of the cashback system and get some money back from the brokers.
To learn more about this program and to sign up, please go to the link below.
Alpari Uk Cashback Program:
In terms of being the best tactician in short-term forex trading, we recommend momentum trading and for good reasons, too. Its main aim is to achieve the profit target as soon as possible with as little risk possible under the volatile circumstances that surround each forex transaction. Basically, you take advantage of the momentum when it is on your side by entering the forex market either on a long or short basis.
You will require three kinds of moving averages to accomplish your purpose, namely, the moving average convergence divergence (MACD), the 100-day simple moving average (SMA), and the 20-day exponential moving average (EMA). You will see why later.
For the MACD, be sure to use the default setting on the 5-minute chart. Said default setting is: Signal ENA=9, First EMA=12, and Second EMA=26. To start on this short-term forex trading strategy, open the 5-minute chart and look for the right currency pair. This means the pair trading below the SMA and EMA. Take a look at the MACD histogram. You will enter into a long trade when the MACD starts turning positive but stay within 5 candles. Your stop loss margin must be positioned at the candles low point, which should be above the EMA and SMA.
You will exit half of your position the moment the trade changes in your favour but be sure that it is still within the amount risked. The other half of your position will follow a trailing stop within a -15 pips on the 20-day EMA. This forex trading tactic should pay off handsomely under the right circumstances.
Now, lets assume that that your chosen currency pair is trading in the opposite direction above the EMA and SMA that is. In this case, you must be patient and wait until such time that the currency pair is trading below both the EMA and SMA by 15 pips, minimum.
In reverse of the first situation, you will enter into a short trade with the MACD turning negative within 5 candles. (The first situation was go long on positive turn). Your stop loss is at the high point of the first candle breaking through the EMA and SMA. (In the first, it was at a low point). You will also exit half of your position with the other half set for a trailing stop at +15 pips on the EMA. Again, this forex trading strategy should be in your favour when you can closely monitor the charts.
There are other strategies for short-term forex transactions, of course. Two examples are the use of 2 charts, namely, the hourly and the 10-minute charts as well as the 200-bar MA. You can also explore these options but we recommend trying the momentum trading strategy first.
Do not have to think much before you join the forex trading. You have so many reasons to start trading here. This is a business that will bring good profits. It has a very potential to create you a good and regular income. Joining the market is so easy that you do not have to go the market everyday. You can go about your other tasks as you trade online. This is the meeting point for everyone. They do not have to specialize in it yet they learn how to do it and become traders from wherever they are. This is the same case for you. Whether you are a professional or a student, you are going to fit in here well.
You can choose the amount of money to begin with. You do not have to invest more than you can afford to lose. There are some small accounts for starters. You can deposit as little as $50. This gives you a chance to learn the market with placing big risks. Fortunately, there are very many sites from which you can trade from. All you have to do is to make a good search. The internet will provide you with all the answers that you require. The rules on the amount of money that you can invest are very lenient compared to other market. It encourages new players who can easily fit in.
Think about the profits that you will make in the market. This is enough to convince you to trade here and make a regular income.