Follow @harunetic

Follow @harunetic
Continue reading here...

Sooner or later all Forex traders begin experimenting with different EMA settings. Quite often very interesting combination can be spotted. Here is one simple Forex system based on 50 EMA indicators. 1. Sooner or later all Forex traders begin experimenting with different EMA settings. Quite often very interesting combination can be spotted. Here is one simple Forex system based on 50 EMA indicators. Any currency pair. Time Frame: 90Minute or 3Hour Chart Indicator: 50 EMA Entry: watch for a candle to pierce 50 EMA and finally close (to enter long) or below (to go short). With the second candle after it makes 5 pips higher than the previous one. Exit: Not set Stop Loss order: 15 pips below 50 EMA (when going long) 2. RELATIVE STRENGTH INDEX (RSI): Although no trading system can solely rely on RSI indicator, using it in combination with other tools and proper technical analysis can bring a new edge to your Forex trading. With 50 EMA will bring a perfect trading profits. Setup: Currency pair: Any. Time frame: Any. Indicator: RSI (14) with levels at 70 and 30. Entry rules: Buy when RSI has crossed below 30, formed a bottom, and then crossed back up through 30. Entry rules: Sell when RSI has crossed above 70, formed a peak, and then crossed back down through 70. Exit rules: not set Tips logon to www.forex-strategies-revealed.com

Sooner or later all Forex traders begin experimenting with different EMA settings. Quite often very interesting combination can be spotted. Here is one simple Forex system based on 50 EMA indicators. 1. Sooner or later all Forex traders begin experimenting with different EMA settings. Quite often very interesting combination can be spotted. Here is one simple Forex system based on 50 EMA indicators. Any currency pair. Time Frame: 90Minute or 3Hour Chart Indicator: 50 EMA Entry: watch for a candle to pierce 50 EMA and finally close (to enter long) or below (to go short). With the second candle after it makes 5 pips higher than the previous one. Exit: Not set Stop Loss order: 15 pips below 50 EMA (when going long) 2. RELATIVE STRENGTH INDEX (RSI): Although no trading system can solely rely on RSI indicator, using it in combination with other tools and proper technical analysis can bring a new edge to your Forex trading. With 50 EMA will bring a perfect trading profits. Setup: Currency pair: Any. Time frame: Any. Indicator: RSI (14) with levels at 70 and 30. Entry rules: Buy when RSI has crossed below 30, formed a bottom, and then crossed back up through 30. Entry rules: Sell when RSI has crossed above 70, formed a peak, and then crossed back down through 70. Exit rules: not set Tips logon to www.forex-strategies-revealed.com
Continue reading here...

STRATEGY #5: Trading Discipline Have you ever exited a trade at a loss, only to find that the trade would have been profitable only a little while later? Have you ever exited a losing trade, opened one in the opposite direction, and then lost twice? Have you ever not stayed in a trade long enough to get the full amount of profit from it? Discipline is the answer. Disciplined traders succeed and undisciplined traders fail. It’s really that easy. Discipline is what separates human accomplishment from human failure. It is what distinguishes bad from good. It is the Grand Canyon separating good from Great. Superior performance from mediocre accomplishment. A+ from C-. 10 pips up from 100 pips down. Discipline breathes life into every aspect of life; the lack of discipline sucks energy from all endeavors, characteristics, qualities, attributes, projects, goals, and people. Life can be led without discipline but it cannot be led well. A trader without discipline is like a without focus. Finally, setting your trading plan is the best option in trading discipline. Wishing you the best in your trades. How to set your Trading Plans next post

STRATEGY #5: Trading Discipline Have you ever exited a trade at a loss, only to find that the trade would have been profitable only a little while later? Have you ever exited a losing trade, opened one in the opposite direction, and then lost twice? Have you ever not stayed in a trade long enough to get the full amount of profit from it? Discipline is the answer. Disciplined traders succeed and undisciplined traders fail. It’s really that easy. Discipline is what separates human accomplishment from human failure. It is what distinguishes bad from good. It is the Grand Canyon separating good from Great. Superior performance from mediocre accomplishment. A+ from C-. 10 pips up from 100 pips down. Discipline breathes life into every aspect of life; the lack of discipline sucks energy from all endeavors, characteristics, qualities, attributes, projects, goals, and people. Life can be led without discipline but it cannot be led well. A trader without discipline is like a without focus. Finally, setting your trading plan is the best option in trading discipline. Wishing you the best in your trades. How to set your Trading Plans next post
Continue reading here...

STRATEGY #4: Money Management Money management is at the same time the guardian or the thief of your capital. The problem is that it is not always a conscious decision, subliminal impulses fueled by greed and fear makes us decide wrong and whenever we realize it, it’s too late. Several works have demonstrate the futility of taking huge risks, this approach of “getting rich overnight” will results always in big loses. And if once it does result in profit, further greed-fueled risk taking behavior will transform it in a big loss for sure. Let’s see an example of bad money management: You decide to open a forex trade: You have a $5,000 account. Therefore your margin is $5,000. You decide to trade the EUR/USD pair. You are convinced that there is a big LONG trend developing. FIRST ERROR: Never be convinced, at the most, you may think that the odds are with you, always approach this as if you are already losing a predetermined amount of money, for it will happen more than once for sure. Therefore, make sure that you don’t risk a big amount. Now you enter a LONG position (i.e. buy the EUR/USD pair hoping for it to increase). You buy 1 standard Lot of EUR/USD (you are buying a lot of this pair for the equivalent of $50,000). You have probably confidence due to the fact that your leverage is 1:100 so only $500 from this money is really yours. SECOND ERROR: Leverage is very appealing, the possibility of making money with the money of other persons, and multiplying your profit x100, x200, even x400. Remember, also the risk is yours, and it is multiplied by the same factor. You will be accountable for all the loss, not your broker, the house never loses. Your instructions to the broker are to close your long position when there is a loss of 50 pip (stop loss order) or when there is a profit of 100 pip (take profit order). THIS IS THE THIRD ERROR: You have produced a lethal combination of a big betting (1 lot is on the verge of being too large for a $10,000 margin) with a huge greed (100 pip profit is too ambitious when you are already on the limit of trading size. This happens because your large expected profit determines also the relaxed stop loss order: a huge 50 pip, as you will see below. And now it happens that you were wrong and indeed the EUR/USD pair moved against you in a Short trend, you hit the stop loss and you lost 50 pip. This is translated into US$500 loss (50 pips mutiplied by the pip value that for 1 standard lot is $10). This amounts to 5% of your initial capital. Now you margin is $9,500. In order to recover from this loss you need a gain of 5.26%, not of only 5%. And this is only to break even. And again if you have a setback with the same strategy, another 50 pip loss drives you to a $9,000 margin. To recover you will need an 11.11% gain which is a lot more difficult. Your margin is in its way to extinction. A third loss will take you to a new low of $8,500 margin, you need an almost impossible 17.65% gain to recover. MAKE NO MISTAKE ABOUT THIS: Losses-in-row are common, they happen, when they happen they may destroy your margin. You better work in any other activity instead of pressing the gas in when the gear is in neutral. Take a look at the characteristics of good money management: Trade risk spans between 1-1.5% of the margin, not more. This means that a single trade risk may be between 1-1.5%, but if you have simultaneous trades the overall risk should be 1-1.5%. The risk is directly proportional to the number of lots you trade and to the number of pips you risk (stop loss). Since you want to have profit and not only to be in even position after a loss, your take profit order should be 2-2.5 times the stop loss order. In summary: when being hit, minimize injuries, when you hit, HIT HARD.

STRATEGY #4: Money Management Money management is at the same time the guardian or the thief of your capital. The problem is that it is not always a conscious decision, subliminal impulses fueled by greed and fear makes us decide wrong and whenever we realize it, it’s too late. Several works have demonstrate the futility of taking huge risks, this approach of “getting rich overnight” will results always in big loses. And if once it does result in profit, further greed-fueled risk taking behavior will transform it in a big loss for sure. Let’s see an example of bad money management: You decide to open a forex trade: You have a $5,000 account. Therefore your margin is $5,000. You decide to trade the EUR/USD pair. You are convinced that there is a big LONG trend developing. FIRST ERROR: Never be convinced, at the most, you may think that the odds are with you, always approach this as if you are already losing a predetermined amount of money, for it will happen more than once for sure. Therefore, make sure that you don’t risk a big amount. Now you enter a LONG position (i.e. buy the EUR/USD pair hoping for it to increase). You buy 1 standard Lot of EUR/USD (you are buying a lot of this pair for the equivalent of $50,000). You have probably confidence due to the fact that your leverage is 1:100 so only $500 from this money is really yours. SECOND ERROR: Leverage is very appealing, the possibility of making money with the money of other persons, and multiplying your profit x100, x200, even x400. Remember, also the risk is yours, and it is multiplied by the same factor. You will be accountable for all the loss, not your broker, the house never loses. Your instructions to the broker are to close your long position when there is a loss of 50 pip (stop loss order) or when there is a profit of 100 pip (take profit order). THIS IS THE THIRD ERROR: You have produced a lethal combination of a big betting (1 lot is on the verge of being too large for a $10,000 margin) with a huge greed (100 pip profit is too ambitious when you are already on the limit of trading size. This happens because your large expected profit determines also the relaxed stop loss order: a huge 50 pip, as you will see below. And now it happens that you were wrong and indeed the EUR/USD pair moved against you in a Short trend, you hit the stop loss and you lost 50 pip. This is translated into US$500 loss (50 pips mutiplied by the pip value that for 1 standard lot is $10). This amounts to 5% of your initial capital. Now you margin is $9,500. In order to recover from this loss you need a gain of 5.26%, not of only 5%. And this is only to break even. And again if you have a setback with the same strategy, another 50 pip loss drives you to a $9,000 margin. To recover you will need an 11.11% gain which is a lot more difficult. Your margin is in its way to extinction. A third loss will take you to a new low of $8,500 margin, you need an almost impossible 17.65% gain to recover. MAKE NO MISTAKE ABOUT THIS: Losses-in-row are common, they happen, when they happen they may destroy your margin. You better work in any other activity instead of pressing the gas in when the gear is in neutral. Take a look at the characteristics of good money management: Trade risk spans between 1-1.5% of the margin, not more. This means that a single trade risk may be between 1-1.5%, but if you have simultaneous trades the overall risk should be 1-1.5%. The risk is directly proportional to the number of lots you trade and to the number of pips you risk (stop loss). Since you want to have profit and not only to be in even position after a loss, your take profit order should be 2-2.5 times the stop loss order. In summary: when being hit, minimize injuries, when you hit, HIT HARD.
Continue reading here...

STRATEGY #3: Currency Pair If you are new to forex trading you might have heard the term forex pairs or currency pairs. What exactly is the meaning of this forex term? Let’s us learn about forex pairs today. forex pairs. These currency pairs are, • EUR/USD Currency Pair: Euro and US dollar. • USD/JPY Currency Pair: the US dollar and Japanese yen. • GBP/USD Currency Pair: British pound and US dollar, which also got a nickname called Cable since it used to be coordinated on both sides by a cable running under the Atlantic Ocean. • USD/CHF Currency Pair: the US dollar and Swiss franc. • USD/CAD Currency Pair: the US dollar and Canadian dollar. • AUD/USD Currency Pair: the Australian dollar and US dollar. Many traders also do the trading in further combinations of these major forex currencies. They are, • EUR/GBP Currency Pair: The Euro and British Pond • EUR/CHF Currency Pair: Euro and Swiss Franc. • EUR/JPY Currency Pair: Euro and Japanese Yen What Is the Best Forex Pair For a Currency Trading Beginner? The best currency pair for a beginner is EUR/USD pair. Lot of experts agrees on this because of high liquidity outcome in a smaller spread and as a result your costs will be lower. Also it is easy to trade in EUR/USD forex pair since you will always find plenty of information about these forex currencies on internet as well as other resources. On the other hand beginners should try to avoid currency pairs which requires in depth knowledge to make profit from trading. Example, the EUR/JPY forex pair might move upwards very slowly but could go down few pips in a matter of days. Some of the other currencies like Canadian Dollar have specific characteristics. For instance the price of oil has big influence on the rate of CAD or Canadian dollar since Canada is an oil exporter. And you know the recent fluctuations in oil market which can result volatility of CAD. Conversely Japan is one of the biggest consumers of oil and they import large quantity of oil. Naturally when the oil prices changes the Japanese yen can also be affected but in the opposite direction. In summary when you are a beginner it is best to start trading in EUR/USD currency for the initial few months. The next forex pair you should consider is the GBP/USD pair. Do not make the mistake of trying to trade too many currency pairs initially or else you will end up with losses. For info visit: www.thepowhatan.com

STRATEGY #3: Currency Pair If you are new to forex trading you might have heard the term forex pairs or currency pairs. What exactly is the meaning of this forex term? Let’s us learn about forex pairs today. forex pairs. These currency pairs are, • EUR/USD Currency Pair: Euro and US dollar. • USD/JPY Currency Pair: the US dollar and Japanese yen. • GBP/USD Currency Pair: British pound and US dollar, which also got a nickname called Cable since it used to be coordinated on both sides by a cable running under the Atlantic Ocean. • USD/CHF Currency Pair: the US dollar and Swiss franc. • USD/CAD Currency Pair: the US dollar and Canadian dollar. • AUD/USD Currency Pair: the Australian dollar and US dollar. Many traders also do the trading in further combinations of these major forex currencies. They are, • EUR/GBP Currency Pair: The Euro and British Pond • EUR/CHF Currency Pair: Euro and Swiss Franc. • EUR/JPY Currency Pair: Euro and Japanese Yen What Is the Best Forex Pair For a Currency Trading Beginner? The best currency pair for a beginner is EUR/USD pair. Lot of experts agrees on this because of high liquidity outcome in a smaller spread and as a result your costs will be lower. Also it is easy to trade in EUR/USD forex pair since you will always find plenty of information about these forex currencies on internet as well as other resources. On the other hand beginners should try to avoid currency pairs which requires in depth knowledge to make profit from trading. Example, the EUR/JPY forex pair might move upwards very slowly but could go down few pips in a matter of days. Some of the other currencies like Canadian Dollar have specific characteristics. For instance the price of oil has big influence on the rate of CAD or Canadian dollar since Canada is an oil exporter. And you know the recent fluctuations in oil market which can result volatility of CAD. Conversely Japan is one of the biggest consumers of oil and they import large quantity of oil. Naturally when the oil prices changes the Japanese yen can also be affected but in the opposite direction. In summary when you are a beginner it is best to start trading in EUR/USD currency for the initial few months. The next forex pair you should consider is the GBP/USD pair. Do not make the mistake of trying to trade too many currency pairs initially or else you will end up with losses. For info visit: www.thepowhatan.com
Continue reading here...

STRATEGY #2: Leverage “the Killer” Most professional traders and money managers trade one standard lot for every $50,000 in their account. If they traded a mini account, this means they trade one mini lot for every $5,000 in their account. Let that sink into your head for a couple seconds. If pros trade like this, why do less experienced traders think they can succeed by trading 100K standard lots with a $2,000 account or 10K mini lots with $250? No matter what the forex brokers tell you, don’t ever open a “standard account” with just $2,000 or a “mini account” with $250. The number one reason new traders fail is not because they suck, but because they are undercapitalized from the start and don’t understand how leverage really works. Don’t set yourself up to fail. We recommend that you have at least have $100,000 of trading capital before opening a “standard account”, $10,000 for a “mini account”, or $1,000 for a “micro account”. So if you only have $60,000, open a “mini account. If you only have $8,000, open a “micro” account. If you only have $250, open a “demo account” and stick with it until you come up with the additional $750, then open a “micro account”. If you don’t remember anything else in this lesson, I plead that you at least remember what you just read above. Okay, please re-read the previous paragraph and ingrain it in your memory. Just because brokers allow you to open an account with only $250 doesn’t mean you should and I’m going to explain why. I believe most new traders who open a forex trading account with the bare minimum deposit do so because they don’t completely understand what the terms “leverage” and “margin” really are and how it affects their trading. It’s crucial that you’re fully aware and free of ignorance of the significance of trading with leverage. If you don’t have rock solid understanding of leverage and margin, I guarantee that you will blow your trading account. How Leverage Affects Transaction Costs Besides amplifying your losses, leverage also has another way of killing you. It’s a much slower kind of death, though, kind a like being constantly exposed to high levels of radiation. Most traders don’t see it coming and by the time they notice it, they’re dead. This killer I’m talking about is the associated transaction cost of using high leverage. Not only does leverage amplify your losses, it also amplifies your transaction costs as a percentage of your account. Let’s say you open a mini account with $500. You buy five mini $10k lots of GBP/USD which has a 5 pip spread. Your true leverage is 100:1 ($50,000 total mini lots / $500 account). But check this….you paid $25 in transaction costs (($1/pip x 5 pip spread) x 5 lots)). That is 5% of your account! With one trade, and the market not even moving yet, you’re already down 5%! If your trades lose, your account balance shrinks. As your account balance shrinks, your leverage increases. As your leverage increases, the faster your transaction costs eats away at the little money you have left. This is the slow and silent killer I’m talking about. The higher your leverage, the higher your transaction cost as a percentage of your trading capital. If you have a mini account, and open a trade with a 5 pip spread, which equals $5 transaction cost, look at how the relative value of your transaction costs increases with more leverage. Leverage Margin Required (MR) Cost as % MR 200:1 $50 10% 100:1 $100 5% 50:1 $200 2.5% 33:1 $330 1.5% 20:1 $500 1% 10:1 $1,000 .5% 5:1 $2,000 .25% 3:1 $3,300 .10% 1:1 $10,000 .05% Now you’ve learned how leverage can magnify your profits and losses, but also your transaction costs. Here’s a chart of how much your account balance changes if prices moves depending on your leverage. Leverage % Change in Currency % Change in Account 100:1 1% 100% 50:1 1% 50% 33:1 1% 33% 20:1 1% 20% 10:1 1% 10% 5:1 1% 5% 3:1 1% 3% 1:1 1% 1% Let’s say you bought USD/JPY and it goes up by 1% from 120.00 to 121.20. If you trade one standard $100K lot, here is how leverage would affect your return: Leverage Margin Required Return (Gain) 100:1 $1,000 +100% 50:1 $2,000 +50% 33:1 $3,300 +33% 20:1 $5,000 +20% 10:1 $10,000 +10% 5:1 $20,000 +5% 3:1 $33,000 +3% 1:1 $100,000 +1% Let’s say you bought USD/JPY and it goes down by 1% from 120.00 to 118.80. If you trade one standard $100K lot, here is how leverage would affect your return (or loss): Leverage Margin Required Return (Loss) 100:1 $1,000 -100% 50:1 $2,000 -50% 33:1 $3,300 -33% 20:1 $5,000 -20% 10:1 $10,000 -10% 5:1 $20,000 -5% 3:1 $33,000 -3% 1:1 $100,000 -1% The more leverage you use, the less “breathing room” you have for the market to move before a margin call. Leverage does not equal margin. Leverage is how many times you lever your whole account. The maximum amount that you are allowed to lever is dependent on your margin requirement. Visit: www.babypips.com for more info.

STRATEGY #2: Leverage “the Killer” Most professional traders and money managers trade one standard lot for every $50,000 in their account. If they traded a mini account, this means they trade one mini lot for every $5,000 in their account. Let that sink into your head for a couple seconds. If pros trade like this, why do less experienced traders think they can succeed by trading 100K standard lots with a $2,000 account or 10K mini lots with $250? No matter what the forex brokers tell you, don’t ever open a “standard account” with just $2,000 or a “mini account” with $250. The number one reason new traders fail is not because they suck, but because they are undercapitalized from the start and don’t understand how leverage really works. Don’t set yourself up to fail. We recommend that you have at least have $100,000 of trading capital before opening a “standard account”, $10,000 for a “mini account”, or $1,000 for a “micro account”. So if you only have $60,000, open a “mini account. If you only have $8,000, open a “micro” account. If you only have $250, open a “demo account” and stick with it until you come up with the additional $750, then open a “micro account”. If you don’t remember anything else in this lesson, I plead that you at least remember what you just read above. Okay, please re-read the previous paragraph and ingrain it in your memory. Just because brokers allow you to open an account with only $250 doesn’t mean you should and I’m going to explain why. I believe most new traders who open a forex trading account with the bare minimum deposit do so because they don’t completely understand what the terms “leverage” and “margin” really are and how it affects their trading. It’s crucial that you’re fully aware and free of ignorance of the significance of trading with leverage. If you don’t have rock solid understanding of leverage and margin, I guarantee that you will blow your trading account. How Leverage Affects Transaction Costs Besides amplifying your losses, leverage also has another way of killing you. It’s a much slower kind of death, though, kind a like being constantly exposed to high levels of radiation. Most traders don’t see it coming and by the time they notice it, they’re dead. This killer I’m talking about is the associated transaction cost of using high leverage. Not only does leverage amplify your losses, it also amplifies your transaction costs as a percentage of your account. Let’s say you open a mini account with $500. You buy five mini $10k lots of GBP/USD which has a 5 pip spread. Your true leverage is 100:1 ($50,000 total mini lots / $500 account). But check this….you paid $25 in transaction costs (($1/pip x 5 pip spread) x 5 lots)). That is 5% of your account! With one trade, and the market not even moving yet, you’re already down 5%! If your trades lose, your account balance shrinks. As your account balance shrinks, your leverage increases. As your leverage increases, the faster your transaction costs eats away at the little money you have left. This is the slow and silent killer I’m talking about. The higher your leverage, the higher your transaction cost as a percentage of your trading capital. If you have a mini account, and open a trade with a 5 pip spread, which equals $5 transaction cost, look at how the relative value of your transaction costs increases with more leverage. Leverage Margin Required (MR) Cost as % MR 200:1 $50 10% 100:1 $100 5% 50:1 $200 2.5% 33:1 $330 1.5% 20:1 $500 1% 10:1 $1,000 .5% 5:1 $2,000 .25% 3:1 $3,300 .10% 1:1 $10,000 .05% Now you’ve learned how leverage can magnify your profits and losses, but also your transaction costs. Here’s a chart of how much your account balance changes if prices moves depending on your leverage. Leverage % Change in Currency % Change in Account 100:1 1% 100% 50:1 1% 50% 33:1 1% 33% 20:1 1% 20% 10:1 1% 10% 5:1 1% 5% 3:1 1% 3% 1:1 1% 1% Let’s say you bought USD/JPY and it goes up by 1% from 120.00 to 121.20. If you trade one standard $100K lot, here is how leverage would affect your return: Leverage Margin Required Return (Gain) 100:1 $1,000 +100% 50:1 $2,000 +50% 33:1 $3,300 +33% 20:1 $5,000 +20% 10:1 $10,000 +10% 5:1 $20,000 +5% 3:1 $33,000 +3% 1:1 $100,000 +1% Let’s say you bought USD/JPY and it goes down by 1% from 120.00 to 118.80. If you trade one standard $100K lot, here is how leverage would affect your return (or loss): Leverage Margin Required Return (Loss) 100:1 $1,000 -100% 50:1 $2,000 -50% 33:1 $3,300 -33% 20:1 $5,000 -20% 10:1 $10,000 -10% 5:1 $20,000 -5% 3:1 $33,000 -3% 1:1 $100,000 -1% The more leverage you use, the less “breathing room” you have for the market to move before a margin call. Leverage does not equal margin. Leverage is how many times you lever your whole account. The maximum amount that you are allowed to lever is dependent on your margin requirement. Visit: www.babypips.com for more info.
Continue reading here...

STRATEGY #1: How to Choose Good Broker With so many different choices out there, how does a Forex "newbie" pick a broker? Chances are most new traders have no idea on where to start - and that's okay! We're here to help! We have put together a simple three step process to help you find a broker that YOU think will best suit YOUR needs. You might be thinking now, "Three steps? That's it?" Yesssiirrrr! In the first step, you will go through some of the main questions you need ask yourself when reviewing different brokers. Then you will take a look at different brokers and their available features. We have put together a comparison guide by taking some of the most frequently asked questions across the internet, and surveyed some of the most frequently asked about brokers out there, so that you don't have to. With this guide, you can narrow your choices down and take the final step of talking with different brokers and demo trading on different platforms. Simple, right? Let's begin... Step 1: Do your research Before comparing brokers, do you know what to look for? No? Well, here are a few of the main questions you should ask yourself: 1. Is this broker registered with any regulating authorities? Check to see if your broker of choice is registered with the National Futures Association (NFA) or Commodity Futures Trading Commission (CFTC) if they're based in the US. If the broker is based in the United Kingdom, check with the Financial Service Authority (FSA). If the broker isn't registered with any of these or any other recognized regulating firm, then you may want to think twice before signing up with them. 2. Dealing Desk or Non-Dealing Desk broker? Does the broker offer fixed or non-fixed spreads? How wide are the spreads? These questions are more significant to those traders who like to take quick profits on a few pips. Large and/or variable spreads can cut into the profits of this type of trading strategy. 3. How much or how little leverage will a broker give you? We highly recommend you review "Leverage the Killer" see strategy #2, before deciding on how much leverage would be suitable for your trading style. The phrase, "Less is More," can save every newbie 4. Of course, you’re not going to start trading with real money right away, right? Well, when you do having a winning strategy and you are ready to trade live; knowing how much risk capital you have to start with makes a big difference. If you have $2000 or less to start with then you probably want to start trading "micro" lots. Not every broker has this feature. 5. Does this broker credit or debit daily rollover interest? Some brokers either do both, deduct interest, or neither. This information is important to traders who hold positions overnight. 6. Does this broker over premium services such as charting, news feeds, and market commentary? How important are premium services to my trading? Step 2: Compare brokers Let's not beat around the bush, now let mention this three Brokers but also go out to choose your choice Broker. 1. Fx Open FX Open is one of the largest Forex brokers in the world enjoying unprecedented client base growth due to innovative, unique services, reliable trading conditions and strong customer support principles. FX Open offers different types of accounts for traders with different trading styles, objectives, starting capital, experience and skills. Micro, Standard and Professional Accounts. Their trading styles are: Trading Platform MetaTrader 4 Account currency USD Financial instruments 28 currency pairs, gold, silver. Pricing format 4th decimal pricing (0.1234) Spreads ** Fixed. From 2 to 4 pips on the major currency pairs. Commissions No commissions to open/close a trade. Open positions rollover See their website@ www.fxopen.com Islamic accounts SWAP-free accounts for Muslim traders Minimum deposit USD 1 Maximum balance USD 3,000 Minimum transaction size 0.1 Micro lot (100 units of the base currency) with approx. 1 US Cent per 1 pip. Maximum transaction size 1000 Micro lots Open trades max. Up to 100 trades open at the same time. Leverage From 1:1 to 1:500 for Micro accounts under USD 3,000. When the account reaches a balance of US$3000 or more, the leverage will be reduced 100x (for Margin Call At Margin Level of 20% Stop Out Losing trades are closed automatically at Margin Level = less than 10% Expert Advisors Scalping With limitations. ( 1) Stop Loss, Take Profit and Pending Orders 10 pips or more away from the current price; 2) Most of the trades must be open for more than 1 minute;) Hedging, Phone dealing and Demo accounts Visit: www.fxopeni.com for more info. 2. Alpari Alpari offer four different accounts to suit the specific requirements of different traders. Demo, Micro, Classic and our new institutional-level Pro Account offer complete flexibility to trade at the level you want.Whatever your trading strategy, level of funding or appetite for risk - from micro to unlimited-trade sizes - there is an account to match. With our newly introduced Pro account, advanced traders now have the opportunity to step up to institutional-level trading with all the advantages of MetaTrader 4. Micro Accounts Designed for traders new to the Forex market and those trading smaller volumes, Micro accounts allow investors to trade smaller trade sizes and open an account with a lower initial deposit than a Classic account. A Micro account can be used to trade via MetaTrader 4. Micro Account details Platform: MetaTrader 4 Spreads: from 1.6 pips Instruments: 29 currency pairs Fifth decimal: Yes Max leverage: 1:500 Floating leverage: Yes Execution: Instant* Minimum opening deposit: USD200 Minimum trade size: 0.01 lot Trade size increment: 0.01 lot Maximum open position: 2 standard lots* Alpari Research: Yes Alpari Academy: Yes Telephone trading: Yes Account currency: USD, GBP, EUR, JPY, CHF Commission: No Visit: www.alpari.co.uk for more information on the Broker in view. 3. Fx pro Fxpro provides the traders a look across markets to take advantage of the latest economic trends and to continue diversifying their portfolios. The energy, commodities, equity indicies, precious metals, shares and forex markets are always moving and FxPro offers direct and easy access to all of these markets from a single Trading Platform. Fair, transparent, and consistent execution qualities are just a few of the key benefits on offer to you as an FxPro trader. We strive to provide our clients with consistent quality and competitive quoted prices e.g. Competitive Prices, Liquidity, Speed of Execution, Speed of Execution, Dealing Desk, Spreads, News and Analysis, Superior Client Service Focus, Systems Operations Our clients are assured by the highest-quality support we give them through our leading-edge operations and our best-in-class technologies, platforms and accounts. Our Systems Operations team is responsible for all updates and upgrades of the Trading Systems and for informing our clients of any new available versions. For more info. Visit: www.fxpro.com Step 3: Open demo accounts and ask questions. Pick at least two brokers that fits most of your criteria and open up demo accounts. Trade in different market environments. Learn all the different features of each trading platform. If you have questions, don't be afraid to ask. Many brokers have excellent customer service support and would be happy to answer your questions. Most demo trading platforms are very similar to their live counterparts, but not exactly the same. There may be a difference in speed of execution, slippage, and platform reliability (most of the time live accounts are more reliable than demo accounts). When you do have your strategy down and you are ready to move to a live account, start off small, test the waters, and see if this particular broker will suit your trading needs.

STRATEGY #1: How to Choose Good Broker With so many different choices out there, how does a Forex "newbie" pick a broker? Chances are most new traders have no idea on where to start - and that's okay! We're here to help! We have put together a simple three step process to help you find a broker that YOU think will best suit YOUR needs. You might be thinking now, "Three steps? That's it?" Yesssiirrrr! In the first step, you will go through some of the main questions you need ask yourself when reviewing different brokers. Then you will take a look at different brokers and their available features. We have put together a comparison guide by taking some of the most frequently asked questions across the internet, and surveyed some of the most frequently asked about brokers out there, so that you don't have to. With this guide, you can narrow your choices down and take the final step of talking with different brokers and demo trading on different platforms. Simple, right? Let's begin... Step 1: Do your research Before comparing brokers, do you know what to look for? No? Well, here are a few of the main questions you should ask yourself: 1. Is this broker registered with any regulating authorities? Check to see if your broker of choice is registered with the National Futures Association (NFA) or Commodity Futures Trading Commission (CFTC) if they're based in the US. If the broker is based in the United Kingdom, check with the Financial Service Authority (FSA). If the broker isn't registered with any of these or any other recognized regulating firm, then you may want to think twice before signing up with them. 2. Dealing Desk or Non-Dealing Desk broker? Does the broker offer fixed or non-fixed spreads? How wide are the spreads? These questions are more significant to those traders who like to take quick profits on a few pips. Large and/or variable spreads can cut into the profits of this type of trading strategy. 3. How much or how little leverage will a broker give you? We highly recommend you review "Leverage the Killer" see strategy #2, before deciding on how much leverage would be suitable for your trading style. The phrase, "Less is More," can save every newbie 4. Of course, you’re not going to start trading with real money right away, right? Well, when you do having a winning strategy and you are ready to trade live; knowing how much risk capital you have to start with makes a big difference. If you have $2000 or less to start with then you probably want to start trading "micro" lots. Not every broker has this feature. 5. Does this broker credit or debit daily rollover interest? Some brokers either do both, deduct interest, or neither. This information is important to traders who hold positions overnight. 6. Does this broker over premium services such as charting, news feeds, and market commentary? How important are premium services to my trading? Step 2: Compare brokers Let's not beat around the bush, now let mention this three Brokers but also go out to choose your choice Broker. 1. Fx Open FX Open is one of the largest Forex brokers in the world enjoying unprecedented client base growth due to innovative, unique services, reliable trading conditions and strong customer support principles. FX Open offers different types of accounts for traders with different trading styles, objectives, starting capital, experience and skills. Micro, Standard and Professional Accounts. Their trading styles are: Trading Platform MetaTrader 4 Account currency USD Financial instruments 28 currency pairs, gold, silver. Pricing format 4th decimal pricing (0.1234) Spreads ** Fixed. From 2 to 4 pips on the major currency pairs. Commissions No commissions to open/close a trade. Open positions rollover See their website@ www.fxopen.com Islamic accounts SWAP-free accounts for Muslim traders Minimum deposit USD 1 Maximum balance USD 3,000 Minimum transaction size 0.1 Micro lot (100 units of the base currency) with approx. 1 US Cent per 1 pip. Maximum transaction size 1000 Micro lots Open trades max. Up to 100 trades open at the same time. Leverage From 1:1 to 1:500 for Micro accounts under USD 3,000. When the account reaches a balance of US$3000 or more, the leverage will be reduced 100x (for Margin Call At Margin Level of 20% Stop Out Losing trades are closed automatically at Margin Level = less than 10% Expert Advisors Scalping With limitations. ( 1) Stop Loss, Take Profit and Pending Orders 10 pips or more away from the current price; 2) Most of the trades must be open for more than 1 minute;) Hedging, Phone dealing and Demo accounts Visit: www.fxopeni.com for more info. 2. Alpari Alpari offer four different accounts to suit the specific requirements of different traders. Demo, Micro, Classic and our new institutional-level Pro Account offer complete flexibility to trade at the level you want.Whatever your trading strategy, level of funding or appetite for risk - from micro to unlimited-trade sizes - there is an account to match. With our newly introduced Pro account, advanced traders now have the opportunity to step up to institutional-level trading with all the advantages of MetaTrader 4. Micro Accounts Designed for traders new to the Forex market and those trading smaller volumes, Micro accounts allow investors to trade smaller trade sizes and open an account with a lower initial deposit than a Classic account. A Micro account can be used to trade via MetaTrader 4. Micro Account details Platform: MetaTrader 4 Spreads: from 1.6 pips Instruments: 29 currency pairs Fifth decimal: Yes Max leverage: 1:500 Floating leverage: Yes Execution: Instant* Minimum opening deposit: USD200 Minimum trade size: 0.01 lot Trade size increment: 0.01 lot Maximum open position: 2 standard lots* Alpari Research: Yes Alpari Academy: Yes Telephone trading: Yes Account currency: USD, GBP, EUR, JPY, CHF Commission: No Visit: www.alpari.co.uk for more information on the Broker in view. 3. Fx pro Fxpro provides the traders a look across markets to take advantage of the latest economic trends and to continue diversifying their portfolios. The energy, commodities, equity indicies, precious metals, shares and forex markets are always moving and FxPro offers direct and easy access to all of these markets from a single Trading Platform. Fair, transparent, and consistent execution qualities are just a few of the key benefits on offer to you as an FxPro trader. We strive to provide our clients with consistent quality and competitive quoted prices e.g. Competitive Prices, Liquidity, Speed of Execution, Speed of Execution, Dealing Desk, Spreads, News and Analysis, Superior Client Service Focus, Systems Operations Our clients are assured by the highest-quality support we give them through our leading-edge operations and our best-in-class technologies, platforms and accounts. Our Systems Operations team is responsible for all updates and upgrades of the Trading Systems and for informing our clients of any new available versions. For more info. Visit: www.fxpro.com Step 3: Open demo accounts and ask questions. Pick at least two brokers that fits most of your criteria and open up demo accounts. Trade in different market environments. Learn all the different features of each trading platform. If you have questions, don't be afraid to ask. Many brokers have excellent customer service support and would be happy to answer your questions. Most demo trading platforms are very similar to their live counterparts, but not exactly the same. There may be a difference in speed of execution, slippage, and platform reliability (most of the time live accounts are more reliable than demo accounts). When you do have your strategy down and you are ready to move to a live account, start off small, test the waters, and see if this particular broker will suit your trading needs.
Continue reading here...