Sunday, July 30, 2006
Learn Online Forex Trading - My trade on USD/CHF
Learn online forex trading - My trade on USD/CHF
In my details of my previous message I mentioned about my open online forex trade on USD/CHF.
Till that day I was in a profit of 80PIPS..Pretty handsome.. isn't it?? And the trade was still open. Lets look at the details again -
Trade - Long
Entry - 1.2451
Stop - 1.2405
Limit - 1.2575
Risk/Reward - 1/2.5
Here is what I did when I was in 50 PIPs profit - I moved my stop loss to my entry point. So, when the currency was at 1.2501, I moved the stop from 1.2405 to 1.2451.
Why was this done? This is to secure your forex trade. So, what would happen when the market reverses from this point onwards? It will hit my stop and I'll get out of trade with no profit and loss.
After that point onwards, I started moving my stop after every 25 pips movement, so when the market read 1.2526, I moved my stop to 1.2476. This way I started making profits.
At 1.2547, the market started reversing, so I closed my trade at 1.2495.
This way I made 44 pips on this online forex trading.
The concept of moving stops to secure profit is a concept of money management. Please learn this as part of online forex trading. This will ensure that your trades are ending in atleast some profit.
Oh..By the way, my target was being driven by concept called Double Top. If you look at the hourly USD/CHF online forex trade chart, you'll see that the resistence is at 1.2590. So, to be conservative, I took target as 1.2575.
Thats all in today's message on online forex trading. Please visit again tomorrow where I'll mention details about another online forex trade that I did the next day.
Keep visiting to Learn online forex trading.
In my details of my previous message I mentioned about my open online forex trade on USD/CHF.
Till that day I was in a profit of 80PIPS..Pretty handsome.. isn't it?? And the trade was still open. Lets look at the details again -
Trade - Long
Entry - 1.2451
Stop - 1.2405
Limit - 1.2575
Risk/Reward - 1/2.5
Here is what I did when I was in 50 PIPs profit - I moved my stop loss to my entry point. So, when the currency was at 1.2501, I moved the stop from 1.2405 to 1.2451.
Why was this done? This is to secure your forex trade. So, what would happen when the market reverses from this point onwards? It will hit my stop and I'll get out of trade with no profit and loss.
After that point onwards, I started moving my stop after every 25 pips movement, so when the market read 1.2526, I moved my stop to 1.2476. This way I started making profits.
At 1.2547, the market started reversing, so I closed my trade at 1.2495.
This way I made 44 pips on this online forex trading.
The concept of moving stops to secure profit is a concept of money management. Please learn this as part of online forex trading. This will ensure that your trades are ending in atleast some profit.
Oh..By the way, my target was being driven by concept called Double Top. If you look at the hourly USD/CHF online forex trade chart, you'll see that the resistence is at 1.2590. So, to be conservative, I took target as 1.2575.
Thats all in today's message on online forex trading. Please visit again tomorrow where I'll mention details about another online forex trade that I did the next day.
Keep visiting to Learn online forex trading.
Tuesday, July 25, 2006
Learn Online Forex Trading - Its USD/CHF time
Learn Online Forex Trading - Details on my trade on USD/CHF
USD/CHF is one the very trending currency pair in the world on online forex trading. Thats why its a favourite currency pair of many traders for trading forex. This makes the currency pair even more strong to obey forex trading rules.
Now, the details about the online forex trade that I made on this currency pair -
Last start with the analysis -
1. On the 1 hr chart, the currency pair started an uptrend on 23-Jul-06 from 1.2350
2. The currency pair started momentarily retracement on 24-Jul-06 from 1.2480.
3. For this retracement, the 38.2 Fibonacci level is at 1.2430. Please learn this that Fibonacci levels is a strong indicators in online forex trading.
4. Also the 200 EMA is at 1.2425.
5. So, this appears to be very strong area of support in trading this currency pair. So as soon as I get bullish signals, I should enter long.
6. As analyised, thats what happenned as soon as the currency pair hit the 200 EMA. It started moving up and I went long forex trading this currency pair.
So, the details of my online forex trading are -
Trade - Long
Entry - 1.2451
Stop - 1.2405
Limit - 1.2575
Risk/Reward - 1/2.5
Currently I am in 80 pips profit and I have moved my stop to entry point. More updates on this trade tomorrow.
Thats all in today's session. Add this site to your RSS list.
Keep visiting to learn more on online forex trading.
USD/CHF is one the very trending currency pair in the world on online forex trading. Thats why its a favourite currency pair of many traders for trading forex. This makes the currency pair even more strong to obey forex trading rules.
Now, the details about the online forex trade that I made on this currency pair -
Last start with the analysis -
1. On the 1 hr chart, the currency pair started an uptrend on 23-Jul-06 from 1.2350
2. The currency pair started momentarily retracement on 24-Jul-06 from 1.2480.
3. For this retracement, the 38.2 Fibonacci level is at 1.2430. Please learn this that Fibonacci levels is a strong indicators in online forex trading.
4. Also the 200 EMA is at 1.2425.
5. So, this appears to be very strong area of support in trading this currency pair. So as soon as I get bullish signals, I should enter long.
6. As analyised, thats what happenned as soon as the currency pair hit the 200 EMA. It started moving up and I went long forex trading this currency pair.
So, the details of my online forex trading are -
Trade - Long
Entry - 1.2451
Stop - 1.2405
Limit - 1.2575
Risk/Reward - 1/2.5
Currently I am in 80 pips profit and I have moved my stop to entry point. More updates on this trade tomorrow.
So, learn to apply discipline and good analysis while doing online forex trading. This will cause more correct trades and less losses.
Thats all in today's session. Add this site to your RSS list.
Keep visiting to learn more on online forex trading.
Tuesday, July 18, 2006
Learn online forex trading - its relative strength index
Learn online forex trading - Importance of relative strength index
1st of all apologies for delay in posting this message as I was busy with some other work for past few days.
This message will be on a very important indicator called -
Relative Strength Index (RSI)
RSI is an oscillator which tells about the current momentum. It compares the recent profits against recent losses to see which direction is the currency pair heading. Like other important oscillators (MACD, Stochastic etc), RSI also tells about the oversold and overbought levels. The value of RSI ranges from 0 to 100. If the value is below 30, it means the currency is oversold in world of online currency trading. However if the value is above 70 it means that the currency is overbought
Please remember to use it in conjuction with other indicators such as moving averages or resistance/support levels.
Also, don't use a lot of oscillators at the same time as sometimes they conflict with each other.
I generally use RSI along with MACD. If RSI is above 50 I generally use it to make long trades (buying the leading currency in the currency pair) and vice versa when RSI is below 50.
Thats all in today's message to learn online currency trading. Keep visiting to learn more.
Sunday, July 09, 2006
Learn online forex trading - Importance of Non-Farm Payrolls (NFP)
Learn Online Forex Trading - The importance of Non-Farm Payrolls (NFP)
What is Non Farm Payrolls -
Non Farm payrolls is a monthly produced report that represents total number of paid employees/workers in USA. However it doesn't factor in government employees, employees of non profit institutes and Farm employees.
Since this report is prepared by US Bureau of labour staistics, its authenticity is very high.
Whats its importance in onlearn Forex trading -
From online forex trading point of view, this report indicates the average earnings per person and hence tells about the current economic conditions in the country. This helps government policy officials to predict future economic situations. Needless to say, if the economic conditions are not strong, new policies will be made to make it better, which directly impacts USD strength.
So, thats the reason that in world of online forex trading the fundamental announcement of Non Farm Payrolls (NFP) is very significant and the market activity comes to standstill 6-8 hrs prior to the NFP announcement.
When is the announcement made -
The announcement is made on 1st Friday of every month
What happens after the announcement -
After the announcement, the market becomes very volatile. In typical 2-3 min, the market moves 100+ pips in all the currency pairs which involve USD.
What does this mean to a Currency Trader -
To us, it is a good time to make a trade and make money..Just flow with the direction of currency movement..HOWEVER, if the trade is incorrect, it can wipe out big portion of your account size. So, never ever ytrade without a stop loss.
Do I trade the NFP announcements -
I generally don't trade the NFPs as because of volatility involved the trading brokers cannot fulfill all the orders which also means that the order can be executed and the currency pair goes against your project direction the stop loss may not be honoured even if it is in place. This is a very scary situation and can put you in big losses.
So, thats all in todays session to learn online forex trading. Apologies for delay in putting new message as this week I was not in city.
Keep visiting this site to learn more about online forex trading.
What is Non Farm Payrolls -
Non Farm payrolls is a monthly produced report that represents total number of paid employees/workers in USA. However it doesn't factor in government employees, employees of non profit institutes and Farm employees.
Since this report is prepared by US Bureau of labour staistics, its authenticity is very high.
Whats its importance in onlearn Forex trading -
From online forex trading point of view, this report indicates the average earnings per person and hence tells about the current economic conditions in the country. This helps government policy officials to predict future economic situations. Needless to say, if the economic conditions are not strong, new policies will be made to make it better, which directly impacts USD strength.
So, thats the reason that in world of online forex trading the fundamental announcement of Non Farm Payrolls (NFP) is very significant and the market activity comes to standstill 6-8 hrs prior to the NFP announcement.
When is the announcement made -
The announcement is made on 1st Friday of every month
What happens after the announcement -
After the announcement, the market becomes very volatile. In typical 2-3 min, the market moves 100+ pips in all the currency pairs which involve USD.
What does this mean to a Currency Trader -
To us, it is a good time to make a trade and make money..Just flow with the direction of currency movement..HOWEVER, if the trade is incorrect, it can wipe out big portion of your account size. So, never ever ytrade without a stop loss.
Do I trade the NFP announcements -
I generally don't trade the NFPs as because of volatility involved the trading brokers cannot fulfill all the orders which also means that the order can be executed and the currency pair goes against your project direction the stop loss may not be honoured even if it is in place. This is a very scary situation and can put you in big losses.
So, thats all in todays session to learn online forex trading. Apologies for delay in putting new message as this week I was not in city.
Keep visiting this site to learn more about online forex trading.
Sunday, July 02, 2006
Learn online forex trade - A great trade by me on USD/CAD..Although...
Learn Online Forex Trading - I placed a great trade on USD/CAD..Although I ...
Like I guessed in the last message, I was expecting the online forex trading market to wake up from the virtual sleep as FOMC rate decision was going to have significant impact on USD direction.
Thats what happenned..The market moved by 100+ pips for each currency pair in which USD is involved. So, I made analysis of USD/CAD as I felt it started trending. So, look at the chart 1 hr chart I have included here. The MACD was showing no deviation, RSIs were looking below 50..So, all indication of bearish trend to continue.
So, here is the online forex trade I placed -
Entry - 1.1083 to sell
Target - 1.1030
Stop - 1.1115
So, the risk to reward was 1:1.7..Look at the red circle on the 1 hr chart to see the entry point
This is what happenned after I placed the trade.
I looked at the 4 hr chart and that took me by surprise....The USD/CAD was at the support trend line..Look at the blue circle on 4 hr. chart..
I immediately realized that it was not an opportune time to do online forex trading.
Already, I was in loss of 15 pips.
So, there were 3 options for me -
1. Either I close the trade with existing loss.
2. Wait to see if the support trend line is broken.
3. Wait for the currency to test the support once again and then close the trade.
So, option 2 was very risky..So, ignored it. Option 3 was very likely as the cuuency genenerally test a support/resistance multiple times.
So, I waited for the currency pair to test the support level of 1.1085 again.
After 30 min., it did the same again..And you are right, I closed the trade at 1.1087.
Although I made 4 pips loss..still I was happy..Why?? Look at the direction the currency pair after that..
So, the idea is to accept the loss..I immediately felt that my trade may not be profitable and accepted the loss and tried to minimize it. It was a very disciplined trade..
So, I had reason to be happy despite of facing 4 pips loss.
This is all in todays session to learn online forex trading..Visit again to learn some more concepts and tips in online forex trading.
