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.

Who are Forex Brokers

This is a question that most of the new comer in forex market ask, there are so many common questions like, who are forex brokers? how can we trade in forex market? what is the purpose of forex broker, if we are doing direct deal etc. So, let me tell you something about forex brokers. Who are they are why they are necessary for retail traders?

Well, if you have decided to enter in this lucrative market and want to make some bucks with this market that may be an extra income that you may earn in your spare time, but that is far now, this is beginner guide. What forex broker are? Actually forex brokers are those companies and institutions that are active in market and those who have a lot of money to invest in market. The trading in market is not easy, if you are not trading with broker. Because you invest only a few bucks but the broker invest the rest of money in the market on your behalf, that is called leverage, he gives you leverage and you then trade in market to earn money.

Types of forex brokers

Without broker if you are going to trade then you will have to invest at least one hundred thousand dollars for the sake of 1$ lot trading, because market runs with lots, and if you buy 1$ then it means that you are buying one hundred thousand dollars. The broker invest his own money and this is the rule of market. In return what he gets from you? He earns through delay, swaps, spreads and account maintenance etc.

There are two type of forex brokers I know in forex market, one is direct dealing desk broker and other is non dealing desk brokers. The difference between in these two brokers, if I tell you in simple words, then one give lives market rates each second and other gives market rates that may differ from original market rates.

As you can see in this picture, that No dealing desk has STP and ECN Plus STP, and Dealing desk are market makers. 

Type of Currency Pairs in international forex market

In this post, I will tell you that what is currency pair and what we call the currencies in pair. There are two kind of currencies that traders trade in market, one is base currency and other is counter currency, for example, if you are buying any currency like Euro, then in forex market, the Euro will be base currency and the Dollar will be counter currency. That pair is also written as Eur/Usd. In forex market, the most famous base currencies are Euro and USD, most of the traders prefer USD as base currency. 

There are some pairs that are called major pair, some are minor pair, some are commodity pairs, some are crosses that include USD crosses, Jpy crosses, European Crosses, you can see the picture below to know about the currency pairs. 

Actually it is a dealing of financial institutions, and a trader is only a retailer that is end consumer. Hundred of currencies are available in market to buy and sell, but it will be dependent upon trading volume, if the trading volume is high, then it will come on top, if there are only a few traders trading the currency then the currency pair will be listed in the bottom of the list and some times it vanish from the list. For example, if we see USD/CHF, then it is the most traded currency pair, that's why it is in the first five pairs, but if we see USD/CZK, then it is not as much traded pair, that's why it is in the last of the list of forex market.

Actually whatever currency you are buying is trading of currency, that is called forex. Let suppose, if you are living in united states and heading to Canada for vacation then the currency of Canada is different from United States. So, you need to change your USD to CAD, you will see a local exchanger to change your united states dollar into canadian dollar, you can see the exchange rate on internet, that will also be available in forex market live chart. The same thing you do in forex market in online trading.

The above chart itself telling the figures and major currency pairs in market. The major currency pairs are most traded pairs and they have good chances to give you a good earning on daily basis.

What a trader do in forex market?

For some beginners in forex market, this is the big question that what a trader do in forex market, if you are heading to join forex market and start your career as forex trader then it is the most basic thing that you need to understand what a forex trader do in forex market. But if you are familiar with stock market then you will be familiar with forex market too. But if you are not familiar with stock market then you need to understand what's inside forex market.

Forex Market Chart

Actually, in forex market, a trader do three things that are most common. One thing is buying, second thing is selling and third thing is exchange of currencies at current or determined market rates. The big market traders or you can say "the market runner" are the world's largest banks. Central bank of country do not intervene into this market, this market is controlled by large international banks, they buy in huge volume and then we see market collapse and when they buy in same volume then we see market hike. 

What a trader do in forex market. A sensible and sharp trader always watch the market and its logarithm, He / She see market charts, the history of market, the expected movement of market so that he put an order whether buy or sell, and when market goes in favor of the trader then the trader earn money, the profit depends upon the volume of trade the trader opens. If you want to be a forex trader then you will have to see several aspects and a lot of work. 

What is Forex?

Well, there are hundred of thousand websites related to forex trading and forex information, this one is also for forex trading and its material, so what is new in this blog? why you shall keep reading and subscribe this blog? 

The answer is, I am a very old forex trader and I know so many things and some secrets of forex trading, that's why I think that I can give you some good information related to forex trading and forex market. In this post, I am going to tell you about the initial information about forex trading.

Basically, the word forex stands for "Foreign Exchange", but we know it as forex, so that's why it has become popular on internet. In ancient time, this business was done by manual dealing, in which some people come USA and they used their own currency, (it is a story that I heard somewhere).

Forex trading rules

They did not have american dollar and they were european, so they need to spend their vacations in america, that's why they decided to change the money to other currency and that was the beginning of this lucrative business. After all that dealing, the people involved in this business set the price with dollar against the counter currency, and then this business started between some businessman, and after the revolution of technology and access to internet, this limited business rose up and now it is more than three trillion US Dollars a day business in the world, if we call it the world's biggest business market, then it will be true.

This is just a basic information that I knew about forex. Nowadays a lot of people working and trading in forex market day and night. There are some sessions that make this business very much lucrative and attractive and that's why the traders in this market are rising day by day.

I hope you will like this post, I will wait for your comment, please comment below, if it helps you.