BUSINESS STRATEGIES OF FOREX TRADING

By -


-->
Does anyone really know when and how Forex trends determine its direction? My response is "YES". How about you? Even most of Forex experts give analysis of the proposed direction of the market using Mechanical Strategy (TOP FOREX TRADING STRATEGIES).

In the past, lots of strategies has been tested and created in form of Robot (Robot is a programmed software for trading instruments automatically) but later discovered that most of the programmed Robot still need mechanical skill to complete or compliments it efforts. Mechanical, in the sense of having manual intervention in other to perform well.
Easy Money is the attraction that attracts many traders from foreign exchange. FOREX websites offer ‘risk-free’ trading, ‘high performance’, ‘low investment’. These claims have a grain of truth in them, but the reality of FOREX is a bit more complex.
The errors start Trader : There are 2 common mistakes that many beginner traders make: trading without a strategy and letting emotions rule their decisions. After opening a foreign currency account may be tempting to dive right in and start trading. Watching the movements of EUR / USD for example, you may feel you are letting pass an opportunity that if you do not enter the market immediately. Buy and watch the market move against you. You panic and sell, only to see the market recover. This kind of undisciplined approach to currency is guaranteed to lose money. FOREX traders must have a rational trading strategy and no commercial decisions in the heat of the moment.
Movements of the understanding of the market : To make sound decisions on trade, currency trader must be well educated in market movements. To be able to apply technical studies to charts and maps of entry and exit points. ? l should take advantage of the different types of orders to minimize their risk and maximize profits. The first step in becoming a successful FOREX trader is to understand the market and the forces behind him. That foreign exchange trading, and why? This allows you to identify successful trading strategies and use.
Accountability : There are 5 major groups of investors who participate in FOREX governments, banks, companies, investment funds and traders. Each group has its own objectives, but 1 that all groups except traders have in common is external control. Every organization has rules and guidelines for trading currencies and can be responsible for your trading decisions. Individual traders, on the other hand, are accountable only to themselves. Large organizations and educated traders approach the exchange of strategies, and if we hope to succeed as a currency trader must follow suit.
Money Management : Money management is an integral part of any business strategy. Besides knowing which currencies to trade and how to recognize yourself? Input and output signals, the successful trader has to manage their resources and integrate money management into their business plan. There are various strategies for managing money. Many are based on the calculation of core equity - opening balance minus the money used in open positions.
Basic fairness and limited risk : When entering a position try to limit risk to 1% to 3% of each trade. This means that if you are a Forex trading lot for $ 100,000 you should limit your risk to $ 1000 to $ 3000. You can do this with a stop loss order 100 pips (1 pip = $ 10) above or below their entry position. As your core equity rises or falls, adjust the dollar amount of your risk. Starting with a balance of $ 10,000 and 1 open position, your core equity is $ 9000. If you want to add a second open position, the core capital would be reduced to $ 8000 and you should limit your risk to $ 900. The risk in third position should be limited to $ 800.
Higher gain, higher risk : It should also increase your risk level as your core equity rises. After $ 5000 profit, your core equity is $ 15,000. You can increase your risk to $ 1,500 per transaction. Alternatively, you could risk more of the profits from the initial balance. Some traders risk up to 5% against their account of profits ($ 5,000 on a $ 100,000 lot) for greater profit potential. These are the kinds of strategic tactics that allow a beginner to get a foothold in the lucrative trade in foreign currency.
I strongly advise anyone interested in Forex trading should take his/her time in learning the Mechanical Strategy. Mechanical Strategy is all about reading and interpreting candles and lots more.

Popular posts from this blog

Model of Consumer Behavior

By -
Model of Consumer Behavior Consumers make many buying decisions every day. Most large companies research consumer buying decisions in great detail to answer questions about what consumers buy, where the buy, how and how much they buy, when they buy, and why they buy. Marketers can study actual consumer purchases to find out what they buy, where, and how much. But learning about the whys of consumer buying behavior is not so easy- the answers are often locked deep within the consumer’s mind. “For companies with billions of dollars on the line, the buying decision is the most crucial part of their enterprise,” states one consumer behavior analyst. “yet no one really knows how the human brain makes that choice.” Often, consumers themselves don’t know exactly what influences their purchases. “Buying decisions are made at an unconscious level.” Says the analyst, “and … consumers don’t generally give very reliable answers if you simply ask them, ‘Why did you buy this?”
Read more

BUSINESS USE OF THE INTERNET

By -
BUSINESS USE OF THE INTERNET This should give you a good idea of how versatile the internet is as an information technology platform on which to base a variety of business strategies. You could group the ways that companies are using the internet for business into a few major application categories. 1. Interactive marketing Because of the internet, marketing a company and its products and services has become an interactive process. The internet and the web enable companies to create a dialog with customers through online discussion groups, bulletin board, electronic questionnaires, and mailing lists and E-mail exchanges. Thus customers can be interactively involved in the development marketing, sales and support of products and services, along with a company’s market researchers, product designers, marketing and sales staff, and support specialists. 2. E-Commerce The internet, the World Wide Web, and internet-based technologies such
Read more

what is Islamic Tijarah? Its Importance, Appreciation, and Exhortation to business.

By -
Image
Islamic Tijarah “Transaction of goods and services according to the Shariah” A good, successful and flourishing business depends very much on the sincere efforts and persistent hard work of the businessman. Therefore, any discussion of the Quranic attitude to Tijarah (business) ought to be preceded by explication of its attitude to Amal in general. Business is also a necessary and beneficial activity; therefore, its importance in the eyes of the Quran is understandable. Our aim is to explore what the Quran has to say about business activity in particular. Importance of Tijarah The importance of business is evident not only from the express statements but also from the attitude and the special consideration accorded to it by the Quran as we shall see below. 1. Frequent Use of Business Terminology The Quran has made and extensive use of business terminology. Commercial terms, belonging to twenty different stems, occur in the Quran about 370 times. C.C. Torrey
Read more