Short Term and Long term strategy

Forex trading can be done for long term and short term. I have told you about the shortest term, that is scalping, but there are a lot of people think that short term is actually scalping, but it is wrong, it is different from short term. Short term do not have any time limit, while scalping has time limit, traders close the trades when it is in small profits or in small loss, this is because they need to chase the lots trading target given by the brokers, this thing happen when they have some kind of deposit bonus or no

deposit bonus and the condition that most of the brokers set for withdrawal of bonus will be trading standard lots, so that's why people do scalping.

Most of the brokers do not allow scalping, because they ask traders to keep their trades open for at least 10 minutes then it will be a valid trade, if a trader do not abide this rule, then his trade will not be counted as valid trade, though that trade will be done, but the condition will not meet. Now, the question is what is standard lot? this is a question that most of the traders do not know. Even they are good traders, so I am telling you here that if you open 1$ trade, then it will be your 1 standard lot. If you are opening $0.1 mini lot, then a sum of 100 mini lots will give you one standard lot trading volume. If you are opening trade of $0.10 then ten lots will make you 1 standard lot.

You need a lot of money to invest if you want to trade one standard lot, it is not easy to trade with that much size of lot. Because as I told you earlier in my other posts that you will have to invest a big amount of money to trade with $1 lot, this is because when you buy $1 lot, then it will be 100,000 units to buy in forex market. Now, in this condition, you need a big leverage, and its up to your broker that how much leverage he gives you. What is leverage? read from here.

Charts in forex trading

Candlesticks

How many types of charts available in forex meta trader? in simple words, there are three charts patterns available in your meta trader, candle stick chart, line chart and bar chart, the most famous is candle stick chart, though people use bar charts to analyze the market too, but the most famous is candlestick chart. Almost 90% of traders use candle stick chart to analyze the market.

There are several ways to analyze the market through candle stick chart, some analyze from the previous day candle stick, some see in weekly and some see in monthly chart to analyze the market. I personally prefer to see daily and weekly chart to understand the market trend.

bars

We can customize the color of candle stick chart, we can change the color of the candles to any of our choice, for example, if we see the buying candle then it will be green by default and if selling then it will be black by default, if we want to change the color of candles according to our need then the option is available in meta trader, so that we would be able to see the candle with the color of our

choice, it will also help us to understand the trend of market.

Time frame

The chart has different time duration to see the candles, that is from 1 minute to monthly basis. You can change the chart duration from 1M to M1, these charts are used for the analysis of market, mostly day traders use these charts to analyze the market.

Scalpers mostly

line chart

use M15 to M30 chart to analyze the market and find the opportunity of trading in meantime, if they see that market is in normal mode then they will m

ake their strategy according to that mode, they will also keep this thing in their mind that what are the up coming big news that may fluctuate the market and what are the circumstances where they can play with their pips.

Can I make millions of dollars from this market?

Hello guys, most of the new traders always think about this thing that they will be able to make millions of dollars overnight and their life and lifestyle will be changed soon. The will live luxurious life with the help of forex trading, and they take it easy that everything is possible with only 1$ investment, but it is absolutely wrong.

There are hundred of thousand people on internet giving good thoughts about forex market and the lucrative advertisements and showing people with luxurious car, luxurious life and they are forex trader??? No, not all the forex traders making that much money, this market also have so much influence of market makers. It is a hidden truth that some brokers and big financial institutions vibrate the market and in result of that fluctuation, so many traders fall, just like fruits from trees.

Forex 52 weeks plan

Its seems to be very much good that traders are earning good money and they are running their houses on the basis of forex trading, but the fact is that, it will need a lot of time to do analysis of market. After proper analysis of market and understanding the chart patterns, the trader will be able to make some bucks from market, but it is another truth that when a trader is a newbie and he is trading in market with little information, then by luck, he makes good amount of money, I personally have seen so many people including myself, I also made a handsome amount of money from forex market when I was newbie and didn't even know about orders executions. (It is not an invitation to enter in market without experience).

Internet is full with this kind of plans and charts that a trader can earn millions of dollar with the help of only one dollar investment, but it is not true, almost all the brokers do not allow you to get profits more than your investment. Only a few brokers will give you that advantage, but the amount will be limited in that case. This is only a dream and nothing.

What is meta trader? How to use it?

What is meta trader? this is an electronic platform that is used to execute your orders in online market, this is a software that directly connected with your broker and then you insert your order and it place in market on behalf of you. 

There are several software in market that brokers are giving free of cost. I am talking about international brokers, not local brokers, because some local brokers in your country may charge you some amount of money for the meta trader they have, some brokers are still offering the old version of meta traders.

Meta trader 4

What I know about meta traders, I have found that meta trader 4 is the best. Although meta trader 5 is available in market and with some brokers, but mostly traders prefer meta trader 4, what is the difference? there are only a few differences between these two meta traders. Most of the differences related to order execution. 

You will see some difference in meta trader 5, that the tabs which you can see below the meta trader will be a bit different from meta trader 4, the order execution will also be different, but one main thing that you can not do in meta trader 5 is, Hedge, this is a thing that you can do in metatrader 4, but not in metatrader 5. This is one kind of trading technique, that will be used in your trading session, when your account is in critical condition. But if you are using metatrader 5, then I am sorry to say, that you will need to replenish the account with big amount to secure the remaining amount, otherwise you will lose your whole account. Below is a picture of metatrader 5.

Meta Trader 5

What is Spread in forex market?

This is a question that most of the beginners ask, the answer is here. Spread is actually a difference between the buying and selling price. When you are going to buy the Eur/Usd currency pair, then the buy price will be different from selling price, that difference is actually spread. 

Some brokers offer fixed spread and most of the brokers offer floating spreads. If the spread is fixed then it is good, because it will not change while market fluctuates, but if the spread is floating then it will be very much difficult for some kind of traders who think that they will earn with small accounts, their accounts may wipe out. 

Spread between buying and selling price is 0.9 pips

Floating spread starts from 0 pips, but sometimes it widen up to 70 pips, that is enough to wipe out a small account, if there is a trade opened in an account and market fluctuate or any kind of rumor hover in market. Just like some times ago, it happened with Usd/Chf pair, at that time market fall terribly bad and it caused bankruptcy for so many institutions. So, if institutions may bankrupt then small traders will not sustain in market. You are thinking that if the market fall, then what is the matter of spread in this? Ok, let me explain you. When the rumor hover about swiss franc at that time, then suddenly the traders saw wide spread in their meta trader, and most of the brokers stopped trading in this pair, this is practice of market that when they see that there might be a sudden fluctuation in market, then they stop trading that currency pair, as I saw this thing in Russian Ruble, Swiss Franc and Britain Pound cases.

So, whenever you choose the forex broker, then you need to see that what kind of spread they are offering, what is spread, if fixed or floating? What meta trader they are using? I hope you will understand these terms when you get familiar with market.

What is pip? What is its use in forex market?

Pips stands for "Point in Percentage". The point that indicate that you are in profits or you are in loss. These are points between buying and selling prices, usually we see that there is three points difference between buying and selling price. Even if you are changing your currency from any local exchanger then you will see that he will deduct the difference of conversion, that difference in points are called "PIPS".

When you are opening a mini lot, that is $0.01 lot, it is (10k units of currency) you are going to buy, against counter currency. Now, when the market goes in your favor, it will move into points, then you will earn or lose money, depends upon the market movement, but it doesn't means that market will continuously move against your trade, it may return back after a few minutes, few hours or after whole day.