Forex Trading Making Pip By Pip
57 pages
English

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Forex Trading Making Pip By Pip

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57 pages
English

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Description

Expert and amateur investors can both benefit from the Forex trading strategy. Having access to 24 hour information and trading schedules gives investors knowledge and insight to make trades throughout the day. The site offers loads of information and links for further research. Foreign currencies have long been a hot trading platform for serious investors and now their strategies are available to everyone. A free trial account allows traders to experiment while learning new trading techniques without taking any unnecessary risk.

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Publié par
Date de parution 23 juillet 2014
Nombre de lectures 5
EAN13 9781634281706
Langue English
Poids de l'ouvrage 1 Mo

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Table of Contents
Forex Trading
Chapter 1- What Is Forex Trading And How Does Forex Trading Work?
Chapter 2- What Is The Proper Mindset To Have Before You Begin Forex Trading?
Chapter 3- Explain the Day Trading Strategy Known as Trend Following
Chapter 4- Explain the Day Trading Strategy Known as Contrarian Investing
Chapter 5- Explain the Day Trading Strategy Known as Range Trading
Chapter 6- Explain the Day Trading Strategy Known as Scalping
Chapter 7- Explain the Day Trading Strategy Known as Rebate Trading
Chapter 8- Explain the Day Trading Strategy Known as News Playing
Chapter 9- Explain the Day Trading Strategy Known as Price Action
Chapter 10- Explain the Day Trading Strategy Known as Artificial Intelligence
Forex Trading Made Easy For Beginners: Software, Strategies and Signals
Chapter 1- A History of Forex
Chapter 2- Forex Trading Systems
Chapter 3- Forex Trading Platform
Chapter 4- Forex Trading Strategies
Chapter 5- Forex Signals
Chapter 6- What To Trade in Forex
Chapter 7- More about Automated Forex Trading
Pip By Pip: Forex Trading Strategies for the Winning Trader
Chapter 1- Forex Trading- An Introduction
Chapter 2- Forex Robots
Chapter 3- Online Forex Trading Tips
Chapter 4- What are Forex Charts?
Chapter 5- Forex Trading Signals
Chapter 6- Day Trading-Forex
Chapter 7- Why Do Forex Trading at Home
Forex Trading: A Guide To Day Trading Essential Tips
Simple Strategies To Earn Pips Per Day
 
By: David Gray
 
Chapter 1- What Is Forex Trading And How Does Forex Trading Work?

The Forex trading industry is rapidly gaining headway as many hobbyist investors and professional investors alike are lured in by the breakneck speed and instant results. While the underlying mechanism of Forex trading is somewhat simple, in practice the market is very complex. It is important to understand Forex trading before you get involved, as it is a market that moves quickly. A poor investor can lose everything in a matter of minutes, not days like in the stock market.
To understand Forex trading, consider the fact that you've probably already engaged in a Forex trade on your own without realizing it. Forex stands for "foreign exchange," and it's what occurs any time money in one denomination is traded to another denomination. Let's discuss the most common scenario for a Forex trade. Consider that you're travelling to another country for a vacation, and you find out that currently one US Dollar (USD) is worth two of the Other Country's Dollars (OCD). So you then trade 1,000 USD for 2,000 OCD. You spend two months in the other country and, somehow, you still have 2,000 OCD when you're heading back (maybe you did well in some gambling). At this point, it's very unlikely you'll get 1,000 USD back. That's because currency rates fluctuate constantly. It's possible you'll find out your 2,000 OCD is now worth 1,500 USD, and it's also possible you'll find out your 2,000 OCD is now worth 500 USD. This opportunity for gain and loss is the basis of the Forex market.
Of course, Forex traders don't go to the bank and physically change money; they use brokers that allow them to trade units of money through the internet. These brokers often allow transactions as low as a single unit of currency. Trades occur through these brokers near instantly, and the changes in the market can be continuously tracked and graphed online.
Those that know the stock market may feel that they have an edge in Forex trading, but Forex trading is actually significantly different from traditional stock trading. For one, most Forex trades are short term trades, and long term positions are incredibly rare. The Forex market is also slightly different because there are very few currencies that are actively traded, and most traders focus on a set of two or three specific pairs, such as EUR USD or GBP USD. This is far different from researching and selecting from a high volume of stocks. The Forex market is also a 24 hour market that rarely closes, meaning that trading goes on continuously.
Forex trading can be considered more accessible to the hobbyist investor because the system itself is relatively simple, and because it's easy to start trading Forex with a small initial investment. That doesn't mean that the market strategies are simple, however, just that the actual trading platforms and the philosophy behind the market are easier to understand. As in all high risk investments, more investors will lose money than will gain a profit.
Automated Forex trading is a subcategory of Forex trading that has gained a lot of criticism. With this type of trading, the trader uses a computer program that automatically trades for them. The computer decides when to initiate these trades based on historical data, and some of these programs have shown remarkable results. However, most people will already have realized the big problem: historical data cannot predict future market results. This means that some programs will perform remarkably well for a few months and then suddenly tank.
There are many online Forex trading seminars and tutorials to teach anyone the basics of Forex trading. Research and consistency is critical to succeeding in the Forex industry, so many Forex brokers offer demo accounts where new traders can practice with fake dollars. This can be a great way to practice new strategies and learn about the way the market works. Other Forex experts offer trading signals, which are alerts that tell you what trades to place and when. These signals can be valuable, if you have enough of a foundation of knowledge to understand them.
When considering entering into Forex, you should test many brokers and many Forex trading platforms. It's critical to get a broker that features low spreads, because these spreads can actually make or break trades in many strategies. It's also important to get a broker that offers an intuitive trading platform, because your trading platform will become your most valuable tool and best friend. A clunky or unresponsive trading platform can lead to death, especially for those with strategies that involve very fast trades.
Forex is a unique and fascinating market, but it is not a money making or get rich quick scheme. It is a huge, international market that needs to be respected and understood before it can yield any positive results.
Chapter 2- What Is The Proper Mindset To Have Before You Begin Forex Trading?
Before you begin your journey, it is of utmost importance to do a complete and accurate self-appraisal aimed to provide you, the trader, with a chance to create the proper mindset for long-term success in the Forex market. Doing so provides a strong foundation for future trading success. The proper mindset is often as unique as each individual trader, but don’t worry, you will develop your own mindset, and set of quality traits, as your trading career progresses. But, there are common themes and requirements that each successful trader shares. A desire for knowledge, risk management, patience, and courage are four examples of these themes.
Embrace Knowledge and Learning
Before you begin Forex trading, you must embrace the idea of learning from your mistakes. Every trader makes mistakes and you will, too. One of the differences between successful traders and unsuccessful traders is the ability to learn from their mistakes (and successes!) and to use those lessons in future trades.
Did you take an early exit from your trade when the technicals were clearly telling you to let your profits ride? Did you get greedy and try to take a few extra pips of profit before your exit? Write these situations down. Learn from them. The lessons you teach yourself, especially as you’re just beginning your Forex journey, will last you throughout your career. And don’t just stop with what you teach yourself! Learn from others as well. Read books. Read Forex blogs and follow the markets. Taken together, a strong base of knowledge resources is the key to becoming a knowledgeable, and successful, trader.
Managing Risk
Risk management is priority #1 when it comes to Forex trading. A trader must know what he or she stands to lose on each trade in terms of invested capital per trade and in terms of percentage of total portfolio value at risk. Without a true understanding of how a trade fits into an overall portfolio, the trader is unable to make an informed decision when the time comes to either lock in a gain or to take a loss. An understanding of how a position fits into a particular portfolio is often a key factor in these important decisions.
Asset allocation is essential to successfully managing risk. Oftentimes, as beginners in the Forex market, we are tempted to focus on one or two trades and place a significant portion of our portfolio at risk on each of these trades. At first, you may get lucky and take a few profitable trades using this method. However, over the long-run, there is virtually no chance of sustained success using this strategy. When you hear news coming out of Europe or the United States, instead of asking yourself “How much can I make trading the EUR/USD pair,” ask yourself “How much of my portfolio can I put at risk trading this EUR/USD opportunity?” Forex trading is more than placing buy and sell orders on currency pairs. It is an act of portfolio management. The cash sitting on the sidelines is just as important to your strategy and portfolio as the capital at risk on any given trade.
Patience
As a beginner, it is easy to become overwhelmed by the breadth and depth of the Forex market. Often, we become so overwhelmed with the idea that we must be continually trading if we want to grow our portfolio. However, the opposite is generally true for a majority of successful Forex traders. As a new trader, it is important to learn which trading styles will work for you, and which will not. This takes significant effort, and often, many hours of waiting on the sidelines watching and learning. You must remind yourself to avoid the temptation to trade for the sake of trading and to slowly build your trading skills while discovering the best methods that suit you. Do you follow the charts or the news? Do you trade based on momentum and price action or do you wait for reversals to occur around support/resistance levels? If you are patient, willing to learn, and investing wisely to manage risk on each trade, you will soon find out which system is right for you.
Courage
Courage is the trait that allows each of us to place our trades, knowing that when we do, we are taking an educated risk with an uncertain outcome. It takes courage to follow a determined trading strategy when that strategy hits a bump in the road. And it takes just as much courage to change course when your strategy proves flawed.
As a beginner in the Forex market, you can expect some of your trades to lose money. Every trader has losing trades and these are often factored into an overall portfolio strategy by estimating the percentage of losing trades during a given time period. Have the courage to learn, to manage your risk appropriately, to be patient in the face of uncertainty, and to admit your failures and move quickly.
Chapter 3- Explain the Day Trading Strategy Known as Trend Following
Understanding the Opportunities behind the Day Trading Strategy of Trend Trading
The investment environment offers many opportunities for individuals to take advantage of when it comes to finding financial success through personal investment. While there are many different resources you can turn to in order to accomplish the goal of investment success, it is often advisable to select a strategy that will benefit your personal situation. To help increase an individual’s comprehension of the potential strategies available, the following addresses the various opportunities behind the day trading strategy of trend trading.
Trend Trading Defined
Trend trading has quickly grown to be a significant trading strategy individuals take advantage of to improve financial success. For the day trader, the idea of following trends provides a sense of security, as an individual either utilizes current information that supports a potential trend or follows years of data that has revealed a potential trend.
The trader utilizes this strategy in an attempt to improve their financial standing by analyzing the momentum of different assets, which either a rise or fall. This can prove highly beneficial when a person successfully identifies trends, since they can either follow positive trends and earn money in the market or follow a declining trend while waiting for a turnaround to occur and the best time to invest in a particular stock or commodity.

Positions Available
For the day trader, it is always important to identify the best strategy to take when identifying the various trends available. One of the best features of following a trend trading strategy is you can either select a short, intermediate, or long term approach towards the different trends possible.
Short
When taking on a short term approach, a day trader is seeking to capture a trend that is occurring as a result of different elements such as new products, a company announcement, or the decline of a competitor. This short increase in value can offer significant return when properly followed and sold prior to any decline that often follows a sharp increase in value.
Intermediate
Intermediate approaches can incorporate different elements such as new products launched, particular seasons, as well as scandals that may reveal a sudden decline within a particular stock. Tracking these trends often means waiting longer then the short term approach but maintaining and eye on the investment before a reversal of value.
Long
The long term approach is a strategy many day traders do not take advantage of, yet it can offer a significant return on investment. When you find a new company or company that has launched a new product it is a good idea to follow a long term approach to get a greater return on investment as the stock continues to climb due to the impact of the product or new company.
Market Applications
When looking at where you can pursue trend trading, the two most common markets are found with stocks and commodities. These markets are familiar to many day traders and offer the best possibilities for identifying a short, intermediate, or long term approach for trends.
Stocks
The stock market is arguably the most popular resource individuals turn to when it comes to discovering trends to access. This market is filled with different industries that are regularly fluctuating and can be impacted by various elements. From new products being developed, to companies collapsing, to mergers succeeding, the stock market offers variety and opportunity for the trend trader.
Some of the most predictable trends available for individuals to take advantage of are found with product releases. For example, Sony found an increase in value when they released the PlayStation III, similar to Microsoft receiving an increase in value when they released the Xbox 360. With the release of such a significant product, a trend can be identified where it would increase stock value over a certain period of time. Once the initial sales and marketing had concluded, a reversal of value was seen, identifying when day traders should have concluded their investments.
Commodities
Another market of opportunity available to individuals when it comes to implementing the strategy of trend trading is with commodities. This marketplace is defined as the foundation of trend trading and the idea of following different patterns within the market. For an individual seeking success in commodities, it is often valuable to accumulate years of information to find specific trends or patterns.
Perishable commodities such as fruits and vegetables are often a strong market for identifying trends as a result of elements such as seasonality. With this strategy you can identify different seasons where products are available and an increase in value can be discovered. Additionally, a decrease in value can also be identified when certain products or unavailable as a result of seasons.
There many diverse strategies a person can take advantage of when it comes to finding success in investing and the strategy of trend trading has proven highly successful for many investors.
Chapter 4- Explain the Day Trading Strategy Known as Contrarian Investing
Day Trading As a Contrarian Investor
Contrarian investors that day trade are primarily looking for inflection points on a given security or investment. These inflection points are points in time in which the market price momentum on a position quickly stops and reverses course. In short, contrarian investors observe the direction the market price is currently heading in and bet against that momentum in order to gain when the market reverses course. The key for contrarian investors is to identify these inflection points in order to maximize short-term profit.
Contrarian investing can be a particularly profitable way of day trading as securities can often be purchased at amounts significantly below what their fair value truly is. This is best detailed in an example. If a stock is currently dropping in value, a contrarian investor would be more likely to bullish on this stock. To maximize their profit, the contrarian investor would attempt to identify the point where the stock is at its lowest. A good way to profit off of this trade would be to buy a call option on this stock that is short-term in nature. By being a contrarian investor, the investor would be purchasing the call option at a price that is significantly below the value that it was earlier in the day or week. As the stock bounced back from its lows, the contrarian day trading investor could possibly realize a significant return from the trade.
Due to the short-term nature of day trading an investor is attempting to identify clues regarding when these inflection points are likely to occur. As it can be difficult to pinpoint the exact moment when these moments occur, day trading in a contrarian manner is wrought with risk. There are certain common strategies and trends that contrarian day trader investors look for when attempting to identify inflection points in stocks. A contrarian day trader often trades more based upon chart analysis rather than company fundamentals, though sometimes both are at play in their analysis.
Having said that, contrarian trading is not as risky as it may seem. This can be shown through an example as well. If a stock has dropped ten percent and you are a contrarian investor, you will bet that it will reverse course and increase. Many investors advise against this and call doing so “catching a falling knife”. While this can be risky, at least in the short-term day trading model, there is a limit to how far a stock can drop.

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