Titan FX – Optimise Forex Trading

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Personal habits can boost the development of your forex trading performance. Whether you are a new or experienced trader, great personal habits encourage continuous growth and success. With the unpredictable nature of trading, effective personal habits can drive profit. In the long run, enhancing your personal habits can lead to better trades and more optimised performance.

Leap Rate has published a post from Titan FX covering many of the aspects of optimising personal forex trading performance. Topics discussed in the post include:

  • collecting all data needed in forex trading.
  • verifying sources of information
  • specific news or information sites
  • apps and podcasts for forex traders
  • filtering data

Recommended in the article is practising forex trading on a demo account before progressing to trading with real funds.

Pips Forex Trade

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Pips Forex Trade

If you have signed up for a Forex course – or are considering signing up for one soon, then the term ‘pips Forex’ is a term you are likely to encounter sooner or later. Don’t be alarmed about it, though, as it is not a hard term to make sense of. In fact, the word pip as used in the Forex trade is not even a new word or a piece of fancy vocabulary – if the study of language has never quite been your thing. As it turns out, the term pips – as used in Forex trade – is an acronym, rather than yet a new vocabulary you have to assimilate.

Pips is plural for pip which is acronym which stands for percentage in point. Now you will need a basic understanding of math (rather than linguistics) to understand the implications of the pip, as we briefly explain it here. Still, if you are more linguistically (rather than numerically) inclined, then the pip can be simply explained to you as the percentage of a percentage point.

This is to say 1 percent of 1 percent makes 1 pip, while 5 percent of one percent makes 5 pips. Similarly, 6 percent of 1 percent makes 6 pips while 9 percent of 1 percent makes 9 pips. Notice that the base for our calculation remains 1 percent because a pip, as introduced is a percentage of a (single) percentage point. Clicking here for get more info…

The use of pips Forex trade is necessitated by the fact that the Forex trade is a low margin trade. As it were, Forex traders seek to benefit from the fluctuations that occur in foreign currency exchange rates which are in turn caused by a complex set of economic, political and social events in the country’s whose currencies are being traded as well as in the country where the Forex trade is being carried out. Sometimes foreign currency exchange rates do change by a whole percentage point or even a number of whole percentage points – but this a very rare occurrence, unless either the country owning the currency in question is experiencing some very radical (political, economic or social) occurrences, causing a huge depreciation (or appreciation, though this would be rather hard) of its currency.

Ordinarily though, the changes in foreign currency prices are subtle – in the range of 0.0001% to 0.0009% and use of the unit of pips – which is the smallest possible price change used in the Forex trade – seeks to give a convenient way of stating this changes. A price change of 0.0001% would be referred to as a price change of 1 pip while a price change of 0.0009% would be referred to as a price change of some 9 pips and the words 1 pip or 9 pips are obviously easier to say and less discouraging to a person, than telling the person 9 (who might be a Forex novice) that the price of the foreign currency units they happen to be holding rose by only 0.0001% and 0.0009% respectively.

By the way, while a rise of 9 pips, 0.0009% would sound discouraging outside the Forex trading circles, the same would be cause for celebration for a trader who happens to be holding many units of a currency which rises by the same 9 Forex pips or 0.0009 percent, as it were.

Making Sense of Forex Trading Pips

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Making Sense of Forex Trading Pips

Many of us have this strange fear of new words. Yet the reality of life is that you will have to encounter some new vocabulary almost everywhere you go. Even if you just change the offices you work in while remaining in the same organization, you will still come to realize that the folks at the new office you have transferred to have their own vocabulary – which could include a different nickname for the boss than the one you used at your old office.

In line with this fear for new words, people who make their first foray into the Forex trade might get alarmed by the existence of a word like ‘Forex trading pips’ a common word used in the Forex trade – and which has absolutely nothing to do with pits as one might be tempted to do in line with free associations.

The word pip, as used in the phrase Forex trading pips is actually an acronym, the fact that it is usually not written in capitals notwithstanding. A pip in this context stands for a percentage in point, and it refers to the smallest price change in a currency. Now to catch up with where all this is coming from, we need to understand that the Forex trade is a business which depends on movements (or rather fluctuations) in Forex prices – the idea being to purchase so many units of a given currency when they were going for a given price, hold them for a while – anything from a few minutes to a number of years – and then sell them again when they happen to be trading at a higher price, and keep the difference between what you bought the units of foreign currency for and what you sell them for as your profit. Look at more: https://en.wikipedia.org/wiki/Percentage_in_point

The reality of the Forex trade is such that barring the occurrence of the huge (and rare) events which have huge ramifications of foreign currency rates, the fluctuations in the currencies are normally very small, normally in the range of 0.0001 to 0.0009 percent on any day. And it is these smaller fluctuations that Forex traders seek to cash in on. But since the fluctuations are so small, it became necessary to come up with a unit through which it would be convenient for the traders to communicate – because saying that a given currency rose by 0.00015 percent does get stuck in the mouth. The solution identified was the unit called the pip or percentage in point as introduced.

Forex trading pips therefore simply refer to fluctuations in Forex prices in terms of percentages of (a single) percentage point. If you bought a unit of a foreign currency at 1.2125 dollars, and then sold it at 1.2126 dollars then your profit would be termed as 0.0001 dollar, and since a dollar is made of 100 cents, the profit would also be 0.0001 percent dollar – which sounds too cumbersome to tell anyone. Now since a Forex trading pip is a percentage of a (single) percentage point, we seek to find out what percentage of 1% 0.0001 percent of the whole is, which effective removes the first two zeros off 0.0001, and working out to find what percentage of 0.01 percent 0.0001 makes gives 1, meaning your profit in this case can be state as 1 pip, rather than 0.0001 percent, which sounds clumsy and discouraging. Therefore if your profit had been 0.0005 dollars, it would now be stated as 5 pips, while if it was 0.0009 dollars it would be stated as 9 pips and so on and so forth. Resourceful site for more tips and ideas: Browse more

Introduction to Forex Pip

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Introduction to Forex Pip

It has been said that the Forex trade is a business where you can only win with volumes as the margins are very small. Many of us without a business or finance background don’t get the real meaning of this statement when we first get introduced to the fore trade, until the concept of the Forex pip is explained to us – the concept of the Forex pip being a concept through which we can get to know just how small the margins in the Forex trade can be. But even before we go deeper to understand the exact workings of the Forex pip, we need to first have an overview of the fundamental idea in the Forex trade.

The fundamental concept of Forex trade is very simple. The idea is to buy Forex currencies when the currencies are trading for lower amounts, hold the foreign currencies for some time – which could be anything from a few minutes to many years – and then sell them when they are being traded at higher amounts, and keep the difference between what you bought the currencies for and what you sell them for as your profit. Now if you are to keep your trade moving, you need to sell off the currencies you happen to be holding as soon as there is a reasonable difference between what you bought them for and what they would be going for, so that you can purchase another stock of currencies (as it were) and later sell it for a profit. Indeed, there are traders who have a system where they ensure that they sell all the Forex they buy in a day within the same day – however small the margin they make in profit, so that they can keep their trades moving. Learn more about Forex Pip and trade..

The reality of Forex fluctuations, however, is such that the change in Forex rates that is likely to be observed in the short term is likely to be very small. It is not unheard of, for instance, for the exchange rate to rise by only 0.0001 percent in day. And small though this might seem, it gives room for a very reasonable profit, because a trader who bought 100,000 units of the pound for instance, with each going at 1.2122 dollars would be sure to make more than 100 dollars in profit if the currency rose by only 0.001 percent during the day and assuming he manages to hold this level of trade for a month, the trader would be making 3000 dollars a month – and 36,000 dollar per year from a capital of 100,000 dollars, translating to a legitimate (36%) return on investment nobody could offer them elsewhere.

Seeing that we are talking of 0.001 percentage points, gives us an inkling of what the Forex pip is. Forex pip, as it turns out, stands for Forex percentage in point – that is the percentage of a single percentage point (1%) that a currency changes with within a day. The use of the Forex pip is necessitated by the fact Forex traders quote their price increments in percentages of the (single) percentage point – due to the small nature of margins in the trade.

The Forex pip, then, which means Forex Percentage in Point (PIP) fluctuations in price is the smallest change in price of a currency used in the Forex market. Get more post: http://aspenforex.com

Quality Forex Training Program

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Quality Forex Training Program

As more and more people decide to try their hand in the increasingly popular Forex trade, the need for training in this area is getting clearly manifest as people seeking to get an understanding of both the fundamentals and the more technical aspects of Forex trading before making their forays into the trade. In response to this need for education, numerous Forex training programs have been developed, to an extent that anyone looking for Forex training today would be sure to be spoilt for choice.

The huge number of Forex training opportunities available today is in huge contrast to the situation a few years back, when a person looking for Forex training would have been in for a really hard time as there were very few such opportunities then. Indeed, there was a time when short of taking a correspondence course in Forex trading or buying some book on the same, there was very little then that someone could do to acquire knowledge in the workings of the trade. Faced with such a predicament, many people opted to trade using their common sense; often to their detriment as by so doing they were opening themselves to the often harsh lessons of a teacher called experience. Thankfully, a person looking for Forex training today doesn’t have to go through the same.

What many are coming to realize, however, is that each of the Forex training programs available is unique (there is no standardized curriculum on this yet) and that some of the available Forex training programs fail to touch on some important aspects of the trade, leaving the traders who get into the Forex trade armed with information obtained through them open to some potentially dangerous mistakes. Many people are increasingly looking for information on what makes a good Forex training program.  Find here: http://www.smbtraining.com/overview/trading-education

Without giving a blanket endorsement or condemnation to any particular Forex training program, we can mention a number of features that a good Forex training program should have.

Firstly, and needless to say, a good Forex training program should be comprehensive in its coverage. It should give the people who take it information on not only the basic workings of the Forex trade, but also on the other economic, political and social factors that influence the trade and how exactly such factors influence the trade. The idea is to give the novice Forex trader who takes the program enough information for them to make reasonably good predictions on Forex holdings – seeing that the Forex trade is a highly speculative one and the ability to make good predictions comes in handy.

Secondly, a good Forex training program should have some case studies of Forex traders who have been successful in the trade and the strategies they used to achieve their success – which might serve as the templates from the novices taking the program can develop their own trading strategies.

Ideally, a good Forex training program should also have a module where the novices taking it get to engage in mock trading and thereby get a feel of the market before they make their first (real) foray there.

Training of Forex Concepts

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Training of Forex Concepts

Forex is one of the most feasible and effective ways to make easy dough. But as with all other mortal activities you need to know what exactly you are doing in the market. This will help you in manipulating the existing knowledge and making it more sharp and tactical. This will finally result in an increase in the profit margins. The experience with Forex markets keep on varying, someone might make millions of dollars within months, but will loose all of it in another day due to some minor carelessness. Mistakes are not affordable in this field. Yes you are free to make mistakes in the beginning, while you are just learning to walk. But mistakes while you have started running are something which cannot be thought about. The moral of the story is that you must possess the necessary expertise to slay any form of difficulties which are being faced by the trader. Training can be imparted with the help of a wide variety of resources thanks to the advent of the technological world. Thousands of e-books and other forms of publications are available online which might help you in steering your way clear in the Forex market. Find the latest info: https://pepperstone.com

There are two fool proof methods which can be utilized for learning the intricate concepts of Forex trading. One is learning by yourself and the other is learning with the help of a professional who is an expert in this field for many years. Many resort to learning the basics by themselves and moving into the market with a small amount of money. Like mentioned earlier, learning by oneself can be accomplished easily with the help of internet. But one of the major gripes which has been associated with such form of learning is that the knowledge gained is only limited. Anyone can write a book on the subject and post it on the internet. But you should be reading he books written by experts. There are various forums which deal with these matters and you can ask your queries freely in there. A little knowledge is a dangerous thing. So it is better to master the concepts and move on. The second method which I had quoted earlier, learning from a professional can be opted for if you can afford the high fees being charged by these consultants. But the money being spent is feasible because of the larger returns.

In order to do Forex trading an account should be created in a respectable brokerage firm. They will provide the necessary instructions which are always to be kept on the minds of the potential traders. Some of the firms go an extra mile and even create dummy accounts with the help of which the potential trader can experiment his trading skills with the help of mock currencies. Real time market situations are being simulated in such accounts, so the trader gets an exposure of what to expect in the Forex market. The learning curve associated with Forex is quite high and takes time.

Gain Experience for Forex Trading?

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Experience for Forex Trading

It is a well known fact that enough training must be provided to a trader before letting him out into the open Forex market. Else there is a good chance of him winding up in this profession within a week. Looking around the internet you might find several courses which all claim to do the same – teach you the basis of Forex trading and help you to be the next millionaire. How to find the best of the courses amongst these? Which course might really help you out, and be easy on the pockets as well?

First things first, you have to set your priorities right. Come to a decision and stick with it. Will you be indulging in Forex trading day in and day out? Or are you looking forward to make some quick money and leave the scene within a couple of months. Depending upon on decision, the amount of cash which must be invested in the Forex training program and the Forex market keeps on varying. Do some research of your own and find the ultimate solution for yourself. You can also seek the help of professionals in choosing the appropriate course ware. Find more: https://www.ddmarkets.com/what-experienced-forex-traders-still-get-wrong/

One of the gravest mistakes which are being committed by most of the traders is that gain a small level of knowledge, but think that they can play in the field with the bigger boys. You need to have ample experience and such experiences can only be gained by trading with paper. You need to note down the strategies which will be adopted by yourself while in the trade market and the resulting consequences can also be noted down suitable. Such bits of analysis information will always help you in the long run, when you come across the same situation at a later date.

Ample planning is required from the part of a trader. He has to devise his own methods and strategies. If he is incompetent of doing so, he can always stick with the strategies which have been developed by people who were in the field long before him. Minor alterations of those strategies are always welcomed. There is no place for guesswork and prediction in Forex market. You need to know how to analyze the market situation and armed with the knowledge gained you can always manipulate the conditions to act on your favor and pour you with high margins.

All the important decisions are to be taken very carefully, if you are new to the field. This includes even the amount which you are planning to invest of the course and the Forex market. Almost all of the courses come with some form of fine print, make sure you go through them. Some of the course ware comes with attached strings in the form of paid subscriptions and such procedures should be strictly avoided. You can always gain extra knowledge with the countless number of e-books which are available of the market. Lastly do not rush the whole procedure. Ample time must be taken to study the concepts.

Why Use Technical Analysis in Forex Trading?

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Technical Analysis in Forex Trading

There are many different ways to tackle the Forex market. Although many people out on the outside looking in would like to say the market is very polarized, the truth is that it is not so ‘black and white’.  This polarization stems from the fact that there are two entirely different ways to go about analyzing a Forex market.  There is the more traditional method of fundamental analysis – one that suggests that the currency market is most concretely dependent on qualitative statistics such as labor wages, and political rhetoric -, while the opposite end of the spectrum of technical analysis deals with more objective attributes.   For the intents of purposes of showing one side of the argument, in order to portray the other more effectively, we will take a closer look at technical analysis.

Why Technical Analysis?

Despite its faults, technical analysis has attracted more traders than fundamental analysis.   Why is this so?  Consider a few of the following reasons:

  • The input for technical analysis is very objective.   It is transparent and very easy to understand.
  • Technical analysis has infinite arrangements.  To put it another way, you can use this type of analysis in nearly any kind of situation.  It is easy to manipulate and easy to use in any given trading situation.
  • Technical analysis allows traders to see markets at many different price levels – of their choosing – at the same time.
  • Technical analysis lets traders easily time their entries and exits as well as monitor their trades while they are open and active.

Perhaps the best way to understanding the two methods is this:  if you are right with your technical analysis you will make money; however, if you are right with your fundamental analysis you may make money.   Forex trading is a game of risks – just like any market is.  Pundits will point out that fundamental analysis gives trader a much greater potential to make money and, they will point out, due to the volatile nature of the market, gives traders more lee-way if they are wrong.  On the other hand, if you are wrong with your technical analysis, you won’t make money.  What it comes down to is how much you are willing to gamble, as well as how confident you are in your ability to analyze. Get more: http://www.fxkeys.com/how-to-use-technical-analysis-in-forex-and-stock-trading/

  • The Forex trading blog shows that Forex has become the world’s largest trading center due the following reasons:
    • The Forex market leads to extreme liquidity that gives a result of easy entrance and depart in the trading system
    • It is geographically disperse and spread worldwide giving high profit and benefits to customer.
    • It is available for the highest time i.e. 24 hours a day except that in the weekends. Thus trading continues from 20:15 GMT on Sunday till 22:00 GMT Friday.
    • Exchange rate differs in a variable proportion that affects the marketing factors.

Forex compared to other fixed income trading keeps marginal profit that does not give trouble to the customers.