The Feng Shui Traders Resource & Trading Guide
The mission of Feng Shui Trading is providing free traders knowledge for trading success starting today about trading the futures markets 24-hrs a day.
Welcome to Feng Shui Trading, featuring Feng Shui Trading for Success, 24-hour daytrading, and 24-hour webtrading covering the U.S. and International Futures markets, forex currencies & other futures markets.
Forex Trading Tips for Scoring Big in the Forex Futures Market
Of course, anytime you are interested in trading you are looking to make a serious profit, in order to really maximize these efforts you need to take some time to really consider all of your options and ensure that you know how to really pull in the money. Not all traders and investors are going to be capable of investing perfectly each time, so knowing what your options are will help you to ensure that you make the correct efforts needed. Following these brief tips will help you to really maximize your profits even after all of the fees have been paid.
Consider Forex to be an investment. This means it is a business. There is no other way to say it, you cannot simply treat the FX forex market like a hobby and expect to make any money at it. Your best option is going to be taking some time to really consider what you are doing, and try to make things fit into your desires. This means if you desire to strike it rich, but can only dedicate an hour a week to the Forex market you need to create a plan that will fit within that time frame. Otherwise, you are merely setting yourself up for failure. There are some other aspects that are very important as well, which will help you even further but this is by far one of the most important.
You need to prepare yourself to take some risks. No, you are not going to find many people telling you that Forex involves much risk but the truth is that it does, and in reality, it is extremely important to realize this so that you can make the correct decision for your needs. Going to the time and effort to create the perfect plan is useless if you do not also take the effort to understand that it is still a risk. This is an area where many people tend to disagree, it is often considered that the Forex market is not risky, but any type of investment that you make, regardless of the variety is going to be a risk and anyone who thinks differently is incorrect.
Are you now trading the markets from your phone or mobile device and want some entertainment too? Then visit our newest site sponsor TVking.com if interested in also watching TV when mobile, both live and free from a mobile device or cell-phone...
Always do your trading when you are relaxed, well-rested and not under stress or tired. These are some factors that can really cripple your ability to clearly think through your forex futures trading decisions. If you do not take the time and effort to think about it clearly then you could quickly find yourself with trade losses and brokerage account drawdown.
As you have probably heard before, Forex can be extremely complicated. Learning all of the ways that you can increase your ability is extremely important. You absolutely have to take the time and effort to learn what you are doing, and this ability will help you to ensure you get where you want to be, with the fewest problems along the way. Never forget what your ultimate goal is and by following these suggestions, you will be on your way towards a successful experience in the Forex market.
Maximizing Your Forex Success
As you know there are plenty of tools and guides that are available on the internet and in bookstores that are aimed at helping you find success in the Forex market and while this is great, most are not written for the average person. Most people have no clue what all of the types of currency are, they think a vehicle is something that you drive, and the market is where you shop. Trying to move past this point into all of the different terms that are used is sometimes very difficult and can be extremely intimidating for a new investor.
In order to get into the FX market easier it is best to consider the Forex market to be nothing more than a giant grocery store.
Instead of selling food, they are selling currency. You are of course going to pay with the money you have and your ultimate goal is to leave with more money than you started with. The best way to think about this is those experiences where you walk into a store with a hand full of coupons and walk out with a lot of items that you get for free due to smart investing and planning.
This success is also available in the Forex market and most anyone can potentially be successful in their forex trading which may be traded 24-hours a day, making it an ideal day-traders and day-trading market for foreign exchange trading using new forex trading apps easily accessed from a mobile device or cell phone.
For those of you who actively trade (or desire to learn how to trade) the financial and futures markets, there are a lot of other things outside the markets you should be following. But, I guess my bigger message is for those of you that aren’t in the futures markets, whether you trade them or not, the futures markets have a significant impact on what happens in the other financial markets, including forex, currencies, options and stocks. That’s why you should soak up every piece of good trading knowledge like a sponge in a quest to clearly see the bigger picture.
Of course, there are plenty of so called market experts who will try to tell you it's real important to be extremely well educated and also spend extensive amounts of time reviewing all of your options. This is typically quite unnecessary; with some effort anyone can learn the important terms and start trading. In fact, most forex traders who are successful trading forex learn the fx market by actually getting started making transactions.
It is extremely important and this cannot be stressed enough -- always take the time to use a paper trading demo account before investing real money. This will allow you to carefully learn what you are doing and also learn from any mistakes that you make before you actually invest any real money. You do not want to find yourself in a position where you lose all of your money in the very first transaction. This is a nightmare and not a successful situation at all. Rather than letting that occur, a demo account can solve your problems.
You should also look for a trading system that you are comfortable with. This is something that your broker can help you with and will allow you to ensure that you are satisfied with the way that transactions are working out. If you happen to find that things are not working well with the system you have chosen, you can always change it. Keeping a system that is not working for you is never advisable and must always be ignored. It is however very important to realize that you really need to ensure you make the right decisions as it relates to your goals.
As you can image, you are not going to make a significant profit with each transaction. A few deals are likely to come along that offer significantly higher profits but the typical rule of thumb is to expect a steady stream of lower profits that build steadily over time. Expecting huge profits in each transactions will leave you upset when you are only making small profits. However taking these small profits as a victory is important since it will allow you to build the skills and confidence that is necessary to earn much more in the future.
A good plan to get started with can allow you to earn far more money than you ever realized. Good efforts in the Forex market can offer fabulous returns but it is very important that you start with the beginning and work on learning as much as possible in order to actually enjoy long-term success. Always looking towards your final and long-term goals will help you to really achieve good profits regardless of your trading expertise or trader level of knowledge about trading the financial markets.
Top Traits of a Successful Forex Trader
Forex trading on the internet is the quickest way to use your investment capital to its maximum. The foreign exchange markets can offer certain advantages to the smaller and larger traders, thus making the foreign exchange currency trading more preferable than other financial markets such as stocks, options and all of the traditional futures markets. Here are some of the top reasons why you will want to use do forex trading on the internet, in order to become a more successful forex market trader.
- Forex is the world's largest market, trading at a volume of two billion or so, giving forex futures traders virtually unlimited flexibility and liquidity. That's over 3-times larger than the equity market and over five times larger than futures.
- Forex trading can fit into anyone's schedule because it is available on the internet 25-hours a day, 7-days a week. There is no waiting for markets to open; they are always open day in and day out. This flexible schedule makes the forex market extremely attractive to those professional and potential traders and investors.
- Forex trading on the internet encompasses buying one currency while simultaneously selling another currency; therefore you have an equal opportunity to make a profit no matter what direction the currencies are heading. Another great advantage to consider is that there are currently only fourteen pairs of currencies to trade. Compare those fourteen currencies to the thousands of stocks, options and futures when you're considering the pros and cons of delving into the trading game.
- Investors and traders are flocking to the forex internet trading as a way to gain a higher leverage to their investments. Some brokers even offer margin ratios of 200/1 in open forex trading accounts. There are also those mini-forex accounts that can be opened for a minimum of $200, offering a margin of 0.5%, where $50 in trading capital will control a ten thousand unit currency position.
FX forex prices can be predicted, thus allowing fx currency prices to create trends ton be followed to allow the technically trained forex trader to able to spot, and even take advantage of, the many trade entry and exit points. One of the best parts about forex trading on the internet is that there is no charges for commissions, any exchange fees or any other hidden fees.
The forex market is a somewhat easy market to train traders about how to trade forex successfully and do forex futures market research since so many traders from various nations of the world actively trade the forex currency markets and other futures markets. The only FX transaction fees come from forex brokers, who only earn a surprisingly small percentage of what the bid/ask price is.
Plus, there is no need to calculate any commodity broker commissions or trade fees when completing a trade and your transactions are made and confirmed electronically in a matter of seconds. Also because this is all done electronically, with no people involved, there is not much to slow your futures trading down.
For the newbie's in the forex trading game, you will need to know the forex terminology. Here is a list of some basic terms and concepts you will need to know in forex trading:
- Spot Market - The market for buying and selling currencies that are usually for settlement within 2 business days, also known as the value date. For example: USD/CAD = 1 day.
- Exchange Rate - This is when the value of one currency is expressed in the terms of another. For instance, the EUR/USD has an exchange rate of 1.3200, and then 1 Euro is worth 1.3200 USD.
- Currency Pair - All currencies must be sold in pairs. There are two currency's that make up an exchange rate, so when one currency is bought, the other is simultaneously sold and vise versa.
- Base Currency - This is the first currency in a pair.
- Counter Currency - This is the second currency used in a pair. The counter currency can also be known as the "terms" currency.
- Broker - This is a firm that will match a buyer to a seller for a small fee or commission.
- Sell Quote - This quote is normally displayed on the left side and represents the price that you can sell the base currency for. The sell quote is also referred to as the "bid" price. For instance: EUR/USD quotes 1.3200/03, and then you can sell one Euro for 1.3203 USD.
- Buy Quote - This quote is normally displayed on the right side and represents the price that you can buy the base currency for. The buy quote is also referred to as the "ask" or "offer" price. For instance, EUR/USD quotes 1.3200/03, and then you can buy one Euro for 1.3203 USD.
No Nonsense Forex Trading Strategies
When considering forex trading as a profit making venture, it is important to work out winning trade strategies beforehand, if possible. Making trade decisions regarding your forex trading and developing a strategy can be seen as your foundation. With your strategy you will optimize your risk with respect to the expected reward, or put the odds in your favor. Trading strategies should be disciplined and limit risk, while placing you at the most favorable advantage in the market. One strategy is the simple moving away average, which is based on a technical study over twelve periods, with each period fifteen minutes in length. This is a good example of a trading decision that is arrived at through strategy.
A simple algorithm is used in this strategy. When currency price crosses above the twelfth period, simply move away it is a signal to stop and reverse. In this way a long position will be liquidated and a short position will be established, both using market orders. This system will keep trades always in the market, with either a short position or a long position after the first signal.
Another strategy is of support and resistance levels. This is another technical analysis strategy and derives support and resistance.
The idea is the market tends to trade above support levels and trade below resistance levels. If either a support or a resistance level is broken, then the market will follow through is the direction given. These levels can be determined by analysis of the chart and assessment of where the chart has encountered unbroken support or resistance in times past.
The double-bottom pattern is another trading strategy well worth looking at. The double bottom is significant to the short term trader as double bottoms indicate a possible major change in sentiment and trend. The pattern is used on all times frames, and many powerful intra day and long term bull markets are conceived from this setup. Double bottoms reflect strong support levels.
When forex market prices fail to break support in the down trending markets on more than one occasion we see powerful changes of trend. These reversal signals are meaningful. The most common entry point where a trader will open on a double-bottom trade is on a move through the high of the two low-swings. This high will represent secondary resistance, and when penetrated confirms a price reversal. The stops are placed around the lows of he patters because a move below lows negates the pattern premise.
Another good potential strategy is the ichimoku chart. These charts are following indicators, which identify support and resistance levels and create trading signals in a way that is similar to moving averages. A big difference however between the two is that the Ichimoku chart lines shift forward in time, creating wider support and resistance zones and decreasing the risk of trading false breakouts. They are calculated using information about trending characteristics and existence of price directional trends, direction, plus support and resistance levels.
The four main lines are:
- Turning Line = (Highest High + Lowest Low) / 2, for the past nine days
- Standard Line = (Highest High + Lowest Low) / 2, for the past twenty-six days
- Leading Span 1 = (Standard Line + Turning Line) / 2, plotted twenty-six days ahead of today
- Leading Span 2 = (Highest High + Lowest Low) / 2, for the past fifty days, plotted twenty-six days ahead of today's date.
- Whichever strategy you choose to use, devote as much study as possible to increase your chances of gain and profit.
Click-below to search for forex trading knowledge you are looking for and also to get Free forex information!
Recommended Trader Resources
Webtrading®2001 | Privacy-Policy
All Rights Reserved