Forex basics

Forex basics are the necessary knowledge and terms, without which you can’t start a trading career. Here you will learn what spread, options, types of accounts, pending orders and scalping strategies are. You’ll find answers to questions about how to choose a broker and trade on news with minimal risk, learn how to choose currency pairs. This section will reveal the secrets of training features and help you understand how to earn on Forex and succeed, while reducing risks and losses.

Thanks to informational technologies classical technical analysis became available to each trader today, actively advertised and develops, but at the same time increasingly works against small player. Why all Forex technical indicators in varying degree lies, whether it is worth using them in the modern market and how to reduce possible losses?

Finally all efforts of a technical analysis come down to estimate direction and trend volume, and therefore any assistant can be helpful in searching of a key point. Forex divergence trade situation are considered to be a strong advance reversal signal, but they are work unstably - their reliability raises reasonable doubts. Let`s try to explore.

Financial market has always been regarded as the one of the most risky fields of activity. Risk diversification as an integral component of any successful business enables to achieve the main goal of any investments which is to increase the probability of profit with minimal losses.

The financial market exists due to the competition between the strong and weak participants. The serious predators («wise money» or smart) take profit by manipulating the money and trade decisions. Nevertheless the large Forex players are not the enemies but rather more experienced partners for the reasonable trader.

Novice traders often hear about increase in volatility after the release of important news, but few people can explain clearly how to use this information in practice, so today let's talk about how to trade on news.

All strategies designed for trading on Forex market are divided into two groups: the first includes algorithms focused on the current market price, while the second group includes methods aimed at finding the best price.

Any trader can use dozens of currency pairs in trading, along with metals, oil, grain and other tools. But not all the pairs can be recommended to use in trading. Beginners should approach the issue of which pairs to trade with particular care.

In general, a trading session refers to the working hours of one or more stock exchanges relating to one region. Originally the term was applied to the stock and commodity markets, but later it was applied to Forex as well.

Gap in Forex trading means "jump" or "break", and this term is successfully caught in the financial markets for the characterization of a significant price break formed at the junction of the daily trading sessions.

When it comes to the fact that you should pay attention before the start of trading on a real account, psychology and self-control are often mentioned. The importance of the choice of the time interval is usually silenced.

Sooner or later, any person interested in currency speculation faces the problem of choosing the appropriate account. This is not an easy task as it might seem at first glance.

Among the various spheres of human activity, the profession of a trader perhaps stands out stronger than the others. The reasons for this attention is not just many – there are a lot of them, ranging from scandals and lawsuits in the largest financial conglomerates to the pursuit of attractive image of a successful and financially independent person. In this publication we’ll take a brief look at who the Forex traders are and what their professional interest is.

First of all, let's start with the destruction of stereotypes that are spread among the population and prevent an objective assessment of a respected profession. The very first of them is the fear of losing everything, being got to trial, and so on. The matter is that in the general case the trader is a specialist who performs operations on purchase and sale of various assets in their own name or under the order of administration of the company in order to derive profits.

The first question anyone who has decided to seriously engage in trading must answer is not even the kind of strategy or a currency pair to choose for trading, but rather how to choose Forex broker to work more comfortably and safely.

Thus, the main stumbling block novice speculators face is choice between dealing center (hereafter DC) or a licensed broker. One would say that there is no difference in this case, but it is not true. Firstly, the contract with the brokerage company has all the signatures, required details, and, as a consequence, legal force. The offers of any DC cannot be regarded as a legitimate document in most trials – in fact, everything will hang by a single thread and reputation of the company.

One can meet a set of rules and attitudes on how to work with Forex on modern information sources of Internet trading possible to meet. Starting from the most difficult concepts and meaning of trading terminology, up to a simple question of the possibility of earnings.

Forex levels are the most basic and fundamental aspect of price movements. Levels come to the fore and become the starting line of price movement and opening of order. And levels become the target of price trend. There are reasons for it. Forex levels appear in the technical analysis as well as the fundamental one, when after certain events, which are to come or already happen, the price is expected movements to move towards certain values.

The graphic shapes identification is one of the common types of technical analysis. It includes the analysis patterns which are shaped as a result of price movements are of geometric nature. Implementation of Internet trading with the aid of graphic shapes has become rather widespread. And the Forex graphic shapes themselves have already become a part of the trading system for many traders.

Many people believe that forex options are easier and less risky instruments for earning money through online trading. However, let's not make premature conclusions, but just look at what Forex options are. Let's first grasp what is an option itself, and how to earn using it in the financial market.

  • Hi!
  • Hi.
  • What do you do?
  • I trade forex.
  • How much you earn?
  • I trade.

Probably the most common and frequent question that can be heard from the beginner or the person concerned - this is how much you earn on forex?

From a theoretical point of view, you can make money on forex is very much in a day can increase the initial capital of a few tens of times per month you can get more than 1000 % profit and more. Advertising on the Internet is just such promises about earnings. Fortunately or unfortunately, blame for the inaccuracy of advertising language is not rotated. Because the potential profit on forex limited only by the number of transactions and the maximum position size. Let us not deceive anyone and admit to each other that in the first place is the prospect of big money and unlimited profit margins attract people to trade in the foreign exchange market - Forex.

Forex seminar – is one of the most comfortable opportunities for beginners and more experienced traders to get answers to their questions from professionals. Such training sessions can become a perfect preparation for basic trader courses and they will improve and widen your knowledge even after finishing them.

Currently there are several main types of such trainings:

  • Free and paid Forex seminars. As a rule the first option supposes learning basic issues that will help the beginner to start working on the market. Paid classes are supposed for experienced players that want to deepen their theoretical knowledge and exchange experience with other successful players, as well as to discuss the most profitable strategies and peculiarities of their usage.
  • Online Forex seminars and fill time classes. The first option allows learning from professionals even to those traders who live far from the capital and do not have direct connection with other players of the market. Such possibility allows them to exchange the experience, determine their trading mistakes and improve their theoretical preparation. The second option is supposed for those who live in the cities where different dealing centers function. As a rule the classes are organized based on them and the most successful players are taking part in the classes, and they can share the secrets of their success.

The rules of trading on Forex market determine the main models of behavior of traders, pointing out the most dangerous moments that should be avoided during their work. This precautions will allow the players not only to save the assets while making the deals on currency market, but to get great profits, that will soon exceed significantly primary costs.

Successful traders and psychologists were capable of working out the most important moments that should be taken into account when starting to work on currency market. The rules of Forex trading do not create strict boundaries for the players, limiting their freedom of the negotiations. They are intended for determining the risks that can lead the trader to downfall and for their removal.

Forex rules determine several main steps of risk management:

  • To consider seriously the risks that you run with certain deals;
  • To lower at most the quantity of risks that the deal can bring;
  • If there is a situation opposite to your interests on the market one should act really quickly in order to lower all possible risks and losses