Strategies and Techniques

Forex market is the largest and most liquid in the world today. A change daily to three trillion U.S. dollars with owner Forex. This is a huge sum. No stock exchange in all countries are close to them.

This market is huge. It is a sea full of sharks and dangerous waters of money, but it is also the only market where you hypothetically at least $ 1,000,000, within two weeks from only $ 1,000.

I say theoretically, because what often happens is that the blind people their money on Forex without knowing anything about it and they lose their shirts. So I say: Beware! This market is profitable, but you have to learn the basics, you do your homework and demo trade a lot.

Remember that 95% of the money traders, 5% and less than 1% of the profits lost on Forex. The good thing about this market is that you money, without selling any product or service, nothing, or advertising. You just trade money and paid on the basis of your knowledge and experience.

The market, banks, transnational corporations and individual traders exchange one currency for another. I speak of the spot market Forex. You can exchange up to considerable influence 400-1, so that for every dollar you have to trade, you mean 400 trading companies. For example, if you have $ 1,000 in your account, you can trade as much as $ 400,000.

This is dangerous. Most experienced traders will therefore not high on this multiplier effect. In contrast, high leverage can be good when you get to use them in your favor. Anyway, enough of the basics. If you want to know more about this market today, and so his story, then read my other article.

Now we will talk about strategies, and how some Forex traders to make money. Let's start with the fact that the work that works for me may not be necessary for you. Currency trading is risky. It is a fact. But finally I found a few strategies that a novice traders could be winners.

Forex Trading is to think not as easy as most people. Today you can win a lot and tomorrow you will lose 40% of your original capital. Novice traders often make the same mistakes again and again. I will list some of them below.

1st Do not look for a Holy Grail of trading.

This is for people who are afraid of losing or too greedy and want to get rich quick. Although it seems that the Forex market is not the place to get rich quickly. Yes, you can a lot of money over time to make, and you do not even sell to create more, or to advertise products. But you must learn a whole lot of what thrilled that market and what moves the price of currencies on how to manage your money effectively in order not to lose your shirt.

Many newcomers to spend much time in search of a perfect strategy that will enable them to always win-win and lose never will. You want to have guaranteed profits because they can not bear to lose and / or they want to withdraw too much (in millions) as fast as they can and buy a house fast in a beautiful tropical remote island. It does not take place.

Do not waist your time. A trading strategy makes it possible that you are not guaranteed profits available. The trade is very risky. That is why it is so profitable. Remember: "no risk reward, no." So try not to always win on every trade. It is simply not possible. There is no way to get rid of that insecurity. What I mean is that what may be the effectiveness of your trading strategy, sometimes it is not, and you must be willing to be to make this a reality.

By not about finding a perfect strategy you turns quickly to a millionaire is to own a ton of time and effort. It does not exist. If you find it, please do not tell me. First, I do not believe you. Second, I do not need. See below why I say I will not need.

2nd Use the technical analysis and fundamental analysis.

When I started trading I do not think I would know that a strategy which was to manage the money alone to find (which I received yet). This is not good! Money management is important, but you still need the other two. You define ("predict"), where is the market position on the effectiveness of your technical and fundamental strategies.

Mastering technical analysis is the ability to future price movements by analyzing past price data and graphical models predict. You see a diagram of certain currencies. Check the data you observe and based on your knowledge of technical analysis, to predict "with some precision, where the market is in progress.

Many brokers, you can add technical indicators for graphics while you are trading. You can try this on a demo account and see how you are able, the future price movements of currencies that you plan to trade are defined. One such broker is www.oanda.com.

Many technical indicators. I can not say that is more effective for you. Every trader is different. This is something you will discover for themselves. There is no hidden secret or magic formula for Forex trading. This is called doing it every minute when you before the graphic and news monitoring, what really counts.

The secret lies in your general knowledge and your decisions. That comes with experience and practice. When you open an account with one of these online brokers you can trade on paper before you trade real money, so you can learn and practice before risking capital.

Let me tell you about a few technical indicators, you can use. You can use the MACD (Moving Average Convergence Divergence) use, Bollinger Bands, Pivot Points, RSI, Stochastics, Fibonacci, EMA, Elliott Waves and many others. While there are many technical indicators, but these are among the best known and used.

If you lead technical indicators for graphics software to automatically add Broker mathematical calculations to interesting facts and patterns about the graphics that you disclose not simply be seen without these indicators. You can use technical indicators to create their own technical systems.

These systems will never work 100% of the time, but if they work, that, 70% - 80% sufficient, it. Since you can control your risk management techniques with the money, which I describe below.

To increase your chances of winning and reduce your chances of losing on every trade that you use fundamental analysis. I think that most traders choose one or the other, but many traders use both.

Fundamental analysis is to exchange messages. What happens to the economies of the currency you act? What is the index of unemployment? Something is suddenly could have a material impact on the prices of currencies?

Trading the news is another effective way to "predict" where the market is in progress. Many online brokers offer a link to important financial news.

3rd Use strategies for managing money.

You need technical management of the money. It makes you or breaks. Put this way, most traders to invest much of their bargaining power of capital on each trade. It is as follows. . . "Expect to do too much and do little to expect little to do and do a lot."

What does this mean? This means that if you try to make money on each transaction, you lose your shirt. If you plan to do some trades and you have made your profits, you can make lots of money over the long term.

The first rule of money management, says that you do not risk more than 1% of the money you have in your account. You can control this risk with a stop loss and limit orders. When you start trading This may seem small profits especially if you start with a capital bit of business. However, if you made some or all of your winnings, you can update your account over time exponentially.

The magic of compound interest is amazing! This is how most wealth is created in the financial markets, piece by piece. If you play your money you can lose it quickly.

Many traders do exactly the opposite. Just imagine that you open an account with $ 5,000 and a trade for $ 1,000. Suppose the market is against you and you lose $ 1,000. Now you have $ 4,000 in your account. You think the price of money is too small, should recover it. In fact, you are pretty sure it will come.

Then you invest $ 1,500 to recover to the previous loss and a profit of $ 500. The market moves against you again. He continued in the same direction, something you have not planned. What happened? Now you have $ 2,500 in your account. This is 50% of the initial trading capital. It is very difficult for you to recover from this loss.

However, if you risk 1% of your money with each transaction, you have $ 4900 in your account after the first loss. It will recover a lot easier for you to manage these trades.

The second rule of money management is still expected to receive more benefits than the money that you could lose. This can be achieved by the limit and stop orders and trailing stops.

For example, if you plan a win for all trades 25 pips to make, then you put the stop order 15 pips above or below your entry price. A better way to have a ratio higher life expectancy, use trailing stops as I described above. A trailing stop, you can lose the short and let your winners again cut off.