WHAT YOU NEED TO KNOW ABOUT FOREX BROKERS

Dear Traders,

There are a lot of misconceptions about Forex brokers and the manner in which they work. While some feel that they make their money via commissions, many will argue that their Forex broker does not charge a commission. There are other aspects of a Forex broker that you should be aware of in order to be able to demand which basic services you will be getting from your Forex broker. Here are the few things you need to know.

FOREX BROKER PROFIT 

A Forex brokerage firm is not a charitable organization and therefore they do need to make money. There are no grants paid to them by any global Forex trading industry to help new comers learn the tricks of the trade. They make their profits on the basis of the spread that is offered. The spread is the difference between the selling price and the asking prices of a particular currency. Across various clients, the Forex brokers make their money by ensuring that they sell the currency at a higher price than the price at which they will buy it back from their client. Spreads are measured in the form of pips and a pip is generally calculated to the fourth decimal place. So if the buying and selling rates are 1.9456 and 1.9459, the spread offered is that of 3 pips.

CAPITAL BACKING

Many times you will see Forex brokers claiming that they operate under the aegis of a large financial organization or a bank. This is a positive fact in favor of the Forex broker since a Forex broker needs to have a solid capital base in order to assure clients that it will not become insolvent.

DEMO ACCOUNT 

Since the trader is likely to do everything with regards to trading on the Forex trading platform, the platform that the broker offers is another important thing that you need to know about. Check if the trading platform allows you to trade in stocks and commodities too. You should also be allowed to check out the platform for a period of at least a month before you make your final decision to trade in the Forex markets with that broker. This is the market norm and therefore you should demand it too.

CUSTOMER SERVICE

The Forex markets are open 24/7. And different people trade at different times of the day depending on the specific Forex markets that are open, availability of time and overlaps of Forex trading time zones. A Forex broker should have the customer service available through chat, skype or phone at all times of the day and night from Monday when the markets open to Friday till markets close.

LEVERAGE

Without leverage you will only be able to invest the amount of money that you have in your account. With the facility of leverage you can trade for higher amounts of money. However, a high leverage is not always a great thing and this benefit should be used judiciously by the trader at all times.

This article has been submitted by Daily Forex

5 REASONS TO AVOID HOLIDAY TRADING ON FOREX MARKET

Dear traders,

I’m used to answering almost every single day to my clients why they shouldn’t trade during the holidays like Christmas and New Year, Independence Day and Thanksgiving Day. I can proceed according to the list but basically those are major US, UK, Germany and Australia holidays. Today I’m going to clarify the situation regarding all these holidays and try to answer the question: “Is it worth trading during the currency market holidays?”

Let’s take an example. Do you remember your Christmas holidays last year? I hope you had a great time with your family.

Am I right, if I say that most of us want to relax or recharge ourselves during Christmas holidays? I guess, yes. The same situation is on Forex market. It has to be recharged as well.

I will never advise you to trade on live account from 24th of December till 10th of January or during other holidays. And here are my 5 crucial reasons to stay away from trading during Forex market holidays:

LOW LIQUIDITY

The main reason of low market liquidity is a small interest of “Forex lions” (hedge funds, market leaders, banks) in selling or buying the currencies during the holidays. These “Forex lions” know their business and prefer to lay on the beach with the glass of Martini and cigar rather than staring in their PCs. They give us a hint – do not trade.

LOW VOLATILITY

The evidence of low volatility is a shrinking of currency pairs’ swings during the day. As I mentioned before, top Forex players are out of game. That means no one can produce a sizable interest in some particular currency pair. The result –ranging market. So, there is no possibility to make a decent profit.

BROKER’S TRAP

It is well-known that Forex brokers are used to raising the spread during the bank holidays. It happens due to low liquidity and as a result – small amount of bid and ask propositions.

It is not possible to indicate the exact date when the broker is going to raise the spread. So, do not forget to check the spread before entering the trade, if you don’t want to pay extra commission to your broker. Furthermore, read the article on how to choose the right Forex broker.

Spread decreasing to ordinary market indexes can be counted as the ending sign of the holiday trading period.

UNPREDICTABLE MARKET CONDITIONS

Due to low market liquidity and volatility, the price can move unpredictably. It may swing in 15 pips range the whole day or rise dramatically in a minute. There will be no chance for you as an ordinary trader to react to those market movements. By the way, do not use your trading strategies or automated expert advisors too.

As a Forex software developer, I can say that most of the Forex systems are programmed to follow strict rules based on technical indicators or what so ever. During holidays, market can mislead the sophisticated algorithm of your top reliable Forex expert advisor that may cause huge losses for you.

RECHARGE YOURSELF

Have you ever heard that overtime work and emotional burden can harm your health? So, holidays are the great chance for you to relax or take a deep breath of fresh air before continuing your long run.

Holiday Forex trading is not the best activity for such days. Better to play with your children in the garden or visit mother-in-law than trying to follow EUR/USD trend at 21:00h on December, 25th.

P.S.: Have you ever tried to trade during the holidays? How profitable was your trading?

Source: pipburner.com

Very simple trading method

Hi Fellow traders, as promised, let me share a method of day trading that I use.

It is not my method, it was taught to me, and now I will teach it to you. Its a very simple method and does not require any analysis of the market, although it is helpful to see the previous days candle close for general trade direction. It is also helpful to mark off your closest daily levels of support and resistances with horizontal lines on your chart.

So, we need to place two moving averages on our charts – please colour them differently.

Settings: Simple moving average applied to “typical price” period 6, shift 0

Second one is period 6, shift 1

These two averages combined is what price “rides” upon. Henceforth, I will call these two averages “the ribbon.”

Basically we are looking for price to break the ribbon, and have our two moving averages cross each other. Then we look to see if there is separation of the two averages – If so we initiate our buy/sell.

Use any time frame you like. I prefer 15min as I can get 1-2 trades per session on a particular pair. The higher time frames will give you more reliable signals and of course bigger profit targets.

I do 1:1, or 1:2 trades. Lower time frames its better to take 1:1 unless you have reason to believe that you are about to ride a big move.

Do not trade a big candle that breaks the ribbon.

It may seem too simplistic – and it is, but this will put many many pips into your pockets.

Only use this method from London open to NYT close. You can trade in the Asian session, but sometimes its more exciting to watch paint dry on a wall 

Please refer to the chart examples for how this method works, and please let me know if you have questions.

Cheers.

Peluang trading (Trade setup) 16 ~ 20 Nov 2015

1.   AUDCAD

Harga  tertahan MA200, jka tidak tertembus kemungkinan harga akan turun dengan target 0.94000. SELL limit di 0.95400 SL di 0.9590. 

2.  AUDNZD

     Harga bertahan diatas MA50 dan MA200, BUY 1.08620 SL di 1.08300

3.    AUDUSD

Haga  membentuk doji dan tertahan di MA20, SELL SL di 0.71700

   4.   GBPCAD

BUY hanya jika breakout Resistant

5.   GBPCHF

BUY hanya jika breakout resistan

6.     GBPUSD

Candle terakhir membentuk Pin Bar, so wait n see di candle berikutnya untuk konfirmasi.

7.     USDCAD

BUY hanya jika Breakout Resistan.

8.     AUDCHF

BUY di 0.71628 SL di 0.71000

Demikian peluang trading untuk minggu ini, kita lihat hasilnya seperti apa dan akan selalu saya update kedepannya.

Ada yang terlewat ?.....iya...GOLD, GOLD menurut saya sedang masa indecision, ngeri untuk ambil posisi.

Disclaimer : ON

Happy trading my friend

The DIVINE Law

    The universe will conspire with you if you channel your resource to helping her maintain her balance. This is Divine Law.

So on our path to success we must take cognisance to this rule.

If tithing rule is not played out right there will be leakages and vents to unhealthy expenditure.

We are encouraged to give what we receive.

The dream Life can only come true when we understand this concept.

You are all welcome to encourage each other and suggestions on this called duties.
The Orphanages, the Man in the street, the widowed woman, the destitute, the war zones, the young kid in your street who needs a mentor,
We can channel our energy into others and by Divine Law what we give to others we give to ourselves.

You are all warmly welcomed

Peluang trading (Trade setup) 9 ~ 13 Nov 2015

     Hasil NFP jumat malam (6 nov) cukup solid dimana Data ketenagakerjaan AS menambahkan 271ribu pekerjaan baru. Hasil ini tentu saja menguatkan spekulasi kenaikan suku bunga AS di bulan Desember 2015, dan ini adalah kenaikan pertama kalinya setelah satu dekade.

Efeknya ? Tentu saja mata uang yg bersebrangan dengan Dollar anjlok dalam, Kalo dilihat dalam chart semua membuka peluang SELL untuk penurunan lebih lanjut.

DXY melonjak stelah NFP release

1. AUDUSD

   AUDUSD membuka peluang SELL dengan penurunan lebih lanjut ke 0.69, waspadai harga retrace terlebih dahulu sebelum melanjutkan penurunannya.

2. GBPUSD

Sama seperti AUDUSD, GBPUSD juga membuka peluang SELL dengan penurunan lebih lanjut ke 1.49 dan 1.47. Waspadai retrace di level2 fibo sebelum melanjutkan penurunan.

3. EURUSD

Sama juga dengan pair EURUSD, efek NFP smlm memang dahsyat, Dollar menjadi raja dari sekeranjang mata uang lainnya. EUIR berpotensi melanjutkan penurunan ke 1.05, waspadai retrace pada level2 fibo sebelum melanjutkan penurunan.

4. GOLD

     Ga afdol rasanya kalo ga menyertakan GOLD, pair yg banyak memberi saya profit, support selanjutnya di 1078, waspadai retrace atau profit taking sebelum gold melanjutkan penurunan.

     Sebenarnya banyak pair2 yang membuka peluang SELL, namun saya jabarkan hanya 3 diatas yang sering di-trade-kan.

So, happy trading, kita lihat minggu ini berakhir seperti apa, semoga profit dan keberuntungan uintuk kita semua.

Peluang Trading (Trade setup) 2 ~ 6 Nov 2015

Dear Friends,

     Sesuai trading system yang saya anut, nampaknya pasar masih konsolidasi, ataupun kalo masih trending mereka tidak memberikan ruang saya untuk masuk.
Jadi yaah untuk minggu depan saya masih tidak menemukan setup yang kuat untuk saya masuk pasar, nampaknya masih harus menunggu penutupan candle di hari senin atau selasa.

      US Dollar Indeks yang mengukur kekuatan mata uang dollar terhadap mata uang lainnya terlihat overbought dan mencoba retrace untuk mencari pijakan baru untuk melesat keatas menyusul bias hawkisk dari the Fed.

Update 06nov : Dalam trading system yg saya jalani, dimana hanya peluang trading (trade setup) yang benar2 mempunyai probabilitas mendapatkan profit yang tinggi saja yang saya ambil, nah minggu ini pasar benar2 tidak membolehkan saya untuk masuk, untungnya jumat malam ada release NFP, dan disitu saya coba pakai strategi jebakan atas dan bawah untuk GOLD (buy limit dan sell limit bersamaan) dan alhamdulillah profit, lumayan aja nambah modal trading.

Dan berikut US Dollar index setelah hasil release NFP yang solid dimana peluang the FED untuk menaikkan suku bunga di bulan December cukup besar.

Bias Bullish dan Resistant selanjutnya di 99.5 dan 100.2

Happy trading my friends.