MetaTrader 4 and MetaTrader 5

Scientific and technological progress is changing all around us and most rapidly developing Internet that already captivated hundreds of millions of people from all over the world. Every visitor to the World Wide Web finds himself something to do, some look latest political news, celebrity gossip others, but many of which Internet draws its enormous financial resources. Today the Internet has turned into trillions of dollars, and the lion’s share of these controls through the Internet trading.

Forex platform MetaTrader 4 and MetaTrader 5 provides the ability to set a variety of analysis tools of Forex market. They have developed a rich set of various indicators for most currency pairs. Quotation charts and indicators updated in real time and have an ample supply of historical data to test different trading systems.

Forex trading platforms have a high degree of data protection, so traders should not worry about the safety of their data. Forex trading platforms are working through the appropriate security protocols and have a backup feature that allows saving the data for any failures.

Best Forex Platform should not spontaneously shut down during trading sessions, which can lead to significant losses. Choosing Dealing center should check the reliability of its trading platform.

For many traders, it is important to trading platform supports the ability to fully automate the trading operations (many DC disable this function, making it impossible to use advisors in real trading operations).

Forex market is an interesting and mysterious financial community, where everything is subordinated to business based on currency trading. Many are just beginning acquaintance with the Forex market it seems complicated and boring, but worth to earn real profits and the person has an irresistible passion and desire to make their lives more stable and secure. For most people, financial well-being associated with heavy physical labor, and by understanding the Forex online, they can radically change their mindsets.

Buy Forex Freely

Of course, no one will be able to immediately start a new business without some preparation. And during the development of the foreign exchange market, some only a few hours acquaintance freely pursue real bargains, others are looking at a very long time, often confused and are not looking for something that is not necessary. Do these people have feelings we first Forex buy, and then to start making money on it.

Experienced trader it seems strange because access to the Forex market is completely free, so the question of where to buy Forex it seems incorrect and even very funny. If we consider the Forex market as a global event in which millions of people are involved, then the system itself can be bought and sold many things, ranging from currency (for which the Forex market and was formed) to the absolutely unnecessary items and programs.

Recent years, in contrast to the old days you can buy everything, and therefore there are so many offers to buy a particular product, but before you make a purchase it is necessary to carefully read the specifications of purchased goods and fully satisfied that it is necessary. You also need to act in the foreign exchange market and the type declaration “I propose to buy a Forex Advisor, guaranteeing 100% monthly income” to be skeptical.

We must understand that the foreign exchange market, the same principles as in other aspects of human relationships. So if you do not get distracted by side issues, and consider the essence of the action in the foreign exchange market, then every one can buy Forex currency (and in any arbitrary number), but then sell it at a profit it is a problem (often insurmountable) for many traders.

Relationships With Family

The novice traders have a lot of trouble, but decided that it would be able to achieve success in Forex trading. Lack of understanding on the part of relatives is one of the major psychological problems for the beginner.

In the process of Forex trading, beginners are faced with a big problem, namely their problems start in relations with relatives. Some do not attach much importance to this item. But in critical situations, bad attitudes mean that the trader ceases to trade and goes into another realm when that was already halfway to success.

Also, tensions reduce the effectiveness of trade, which is especially painful at the very beginning trader, when he was just trying to get positive results. For example, it is accurately predicted that the currency pair GBP / USD will rise by 50 points, but due to the fact that distracted, did not manage to close the deal.

So, the first problem – it’s a negative attitude to Forex among relatives and friends. On the Internet, and not only there, there is a perception that the Forex – a scam. Many people do not believe in its existence, either in its capabilities. Accordingly, such people are mostly to be negative about someone who will try to earn on Forex. If trades are successful, it’s not so bad. But when they go to failure, losing trades on the trader goes to the biggest load.

After prolonged pressure he begins to adjust their results to make more mistakes, negative situation grows and becomes stronger. Finally, drain the deposit, drawdown and withdrawal even with Forex.

Once a trader loses, people usually say: “We have warned.” But if you show a positive result, at best, they will not say anything. And more often than not will still believe in the man and his possibilities. This should be taken into account and build their relationships accordingly.

Trading Recommendations

Many people love the variety of travel, extreme sports, events and all sorts of puzzles. Almost all these areas correspond to the world of Forex currency trading via the Internet. As one trader in currency trading resembles simultaneous game of poker, chess and crossword puzzles. But this is not a complete description.

Sometimes to trade in the Forex trader, one need to solve the most complex intertwining of foreign exchange quotations, take a trip through the world of news of national economies, traders compete in contests and more. But, in addition to the thrill, the currency is also able to generate considerable revenue, which is the main motivation in this contest.

However, to make a profit, a trader needs a lot of skills, knowledge and various tweaks for example, the use of special computer programs. They will be part of the so-called trading system. It is perhaps the most important link in the trade.

Trading system – a set of principles on which is the opening and closing of the transaction. Also, there are elements of the trading system can be automated algorithms built into the software. Today existing Forex trading systems differ depending on a variety of parameters. For example, they can be divided into manual, automatic and mixed (semi-automatic).

Manual are the most common – a set of rules written down in a notebook or in memory of a trader. Manual trading looks like the trader starts trading platform, analyzes pretending options. Sometimes uses the built-in indicators, news and advice of more experienced colleagues. Based on this analysis, it concluded, or to be out of the market, i.e. do nothing, or to open a transaction or prepare for an early opening of the transaction.

Organized Forex Account

Do you have a minimal of $12,000 dollars to use and you would like that money to actually do great for you? All right then, an organized forex account can very successful right up your road. A lot of managed accounts can make profits more than 12% for each month, even with higher fees paid, the compounding impact on profits can twice your money each year.

The major priority for all actual and reliable organizers of forex accounts, is to protect the investment of their investors, hence risk management is vital. Reduction in the quantity is a natural and common part of forex trading and happens frequently. It relies upon the risk portfolio of the trader because to how much of a reduction in the quantity they would like to accept. It’s how these reduction in the quantity is dealt that is significant and a good account organizer will have a line of attack to organize them. A lot of accounts need to maintain a stop loss on particular trades in order that if the trade drops by 2% for instance, the trading will stop out, stopping losses to a lowest level.

Liquidity is a significant element of trading. It is useful if you can bring your hands on your trading whenever you can. With an organized account, you would be capable to withdraw funds just about right away, on condition that they aren’t finished off in an open trade. This will just require two or three days from the time of the taking out money request from your account. There is not any cost for taking out the money.

The trader will have entire control on account at the trading firm as it is made on their name and they can mange their account for example withdrawing or adding funds to their account when ever they want.

Forex Trader: Some Tips

The part-time trading can be a way to supplement personal income. Even if you have a full time job can find time to trade in the forex market successfully. However, you need some tips to help you be a part-time trader, here are mine.

One of the main keys to success in Forex is to specialize in those pairs of currencies that are operable in the time zone in which you do and where you can use a strategy that does not require constant monitoring.

Finding the currency pair to trade

Although forex market is a continuous 24 hours, the volume traded is different throughout the day and is much better when there is more trading volume of transactions as there will be more movements that allow us to capture greater benefits but also we ensure enough liquidity in the market to run our operations.

For beginners in forex, it is recommended to focus on the currency pairs of the dollar against other currencies. In these pairs the higher volume of operation is:

  • EUR / USD
  • GBP / USD
  • USD / CHF
  • USD / JPY
  • USD / CAD
  • AUD / USD

For part-time traders with some experience or time to do more research and analysis also can focus on the following pairs that also offer a good trading volume:

  • EUR / GBP
  • EUR / JPY
  • EUR / CHF

Of these pairs, undoubtedly the EUR / USD will always, from my point of view, the best for the part-time trader due to the limited time they have a part-time trader as the EUR / USD is the most traded market currency. Also, it is the torque that more information can be found on the net easily.

The Forex Market In Range

A range market is one in which the price bounces back and forth between two specific rates which determine the range area. The upper price range is an area of resistance and lower price an area of support, both levels through which the price is not able to pass.

In this context, the movement of the market can be classified as horizontal or lateral, so that the range market also called lateral or lateralized market. The market range is very common in situations of consolidation of the price.

Let’s see how they would behave in a market indicators in rank, as the ADX (Average Directional Index), the Bollinger Bands or stochastic.

The ADX market in a range

The ADX values ​​below 25, indicates that the trend is weak. Therefore, if we see readings ADX below 25, it can determine whether the market is in range.
Bollinger Bands range in a market

Basically, Bollinger Bands contract when there is little volatility in the market and expand when volatility increases. Because of this, the Bollinger Bands are a great tool for strategies breakout.

When the close volatility of bands is low and should therefore be little amplitude in price movement, being indicative of potential market phase range. On the contrary, when the bands begin to separate by increasing the volatility then it can expect more amplitude price movement.
Generally, in a range of market Bollinger bands are rather more proximate and also take an inclination horizontal. The Bollinger bands are fairly close and are almost flat during a period in which the price could be lateralized.

During periods of market range, it is common to use strategies-rebound range, known as range-bound, which consist of selling near the top of the range area and buy near the minimum, with small stop loss and take profit near the level. It may be useful to use indicators oversold or overbought as the stochastic or RSI so if the stochastic shows overbought and the price is near the top of the range area can sell more chance of success and vice versa.

Indicators Needed In Trading Strategy

As traders, we will spend most of the time looking for the best time to enter the market in a certain direction. In this search we will use some tools such as technical indicators. From my point of view, any trader that their operations based on technical analysis should use at least four types of indicators.

Well, more to use those indicators to meet the basic needs of the trading. There are simple 4 steps: recognize the prevailing trend -> confirm the trend -> find the best entry -> find the best way out.

These needs can be met with one or more information indicators. So, I will classify the indicators into four categories according to the need they will cover, but this classification is only for illustrative purposes.

In our trading strategy we need a tool to tell us what the market trend is. Although it is possible to make money trading countertrend, most find it easier to follow the trend to go against.

A trend indicator will show what is the direction of the main trend of the market so we can try to get the benefit of following direction. From my point of view, a trend indicator or trend-following indicator will help us to know if we should look for buying opportunities or, on the contrary, seek opportunities. It tells us what attitude we take to the market but it will not determine when or how we go out. You can use it to generate input signals but that is up to you, not the main objective of a trend indicator.

For example, the simplest trend indicator is the combination of moving average, a slow (high period) and rapid (low period). When the moving average is on the moving average that indicates slow uptrend dominant and vice versa. The combination of moving averages is the best but discover it on your own  and it is very different from the best combination. The best combination of moving averages is one that best suits the time frame you operate in and your goals and trading style.

Where Do I Put The Stop Loss?

The stop loss is one of the types of orders with which one encounters just start training in trading. We must be clear that it is a stop loss, what it does and how it works. Then you can decide whether to use it or not, there are reviews of all types but I am among those who think that any trading operation should always keep your stop loss order.

But where to put the stop loss? A difficult question to answer. If you put it too close to the entry price leave very little space and it can stay out at the slightest movement of the market without implying that you were wrong in your prediction. And if you put it too far you, it will lose more money if you were wrong in your analysis.

Finding the ideal price for the stop loss will give the best risk: benefit but it is possible only if you followed a workout and have enough experience. Still, it’s quite likely that not always put the stop loss at the best place as this will only be known once the time has passed. But with the practice you will approach quite often. And this is it, that most of the times you do it well, not to guess the future. To begin to train you in placing stop loss optimally have prepared a series of tips that can help a lot in this task.

The theoretical position of the stop loss

If we understand the concept of stop loss, we have understood that serves to get us out of a position when we are wrong in our forecast. Many times you have read it and stop loss l used to cut your losses but I would say something more specific and used to cut losses early.

And to cut losses in time I mean that point in the analysis had you enter the market with a particular prognosis becomes invalid and meaningless. At this point, beyond which it is no longer a reasonable price swing against your analysis, is where to put the stop loss. That is, that price makes the difference between a natural oscillation of the market and a move that puts in serious doubt you had foresight.

How Leverage Works

The leverage works in a way that allow speculators to make large amounts of profit with relatively small movements and to hold slight deposit for huge contracts of commodities.

Leverage is the mechanism that makes commodities very attractive. With a little advance composite trader can indefinitely control a large chunk of money (or other commodities). So you can collect huge profits with minimal movement of the market.

Example – Gold Trading

Gold is traded on commodity exchanges in the contracts of 100 troy ounces (troy ounce represents a piece of pure gold weighing 31.1035 grams). The price of gold remain moving relatively high – on world exchanges with one troy ounce sells for a price around $430. The total value of one contract (100 troy ounces) becomes in the order of $43,000. Deposit (margin) for the purchase of one full contract is only about $ 2000 (advances are constantly changing slightly). Blocking $2000 in your checking account for weeks and months gold contract worth $43000. In other words – a change in the dollar price of gold per troy ounce (which is a very small movement) in the right direction, the investor earns $100.

The chart shows the typical course of each trading day during one single day. With only locked 670 dollars (in the trade, which is opened and closed in one day is often blocked only one third deposit) to earn $1,000 (the price of gold has changed by 4 points) – all within a few hours! In addition, it is not unique in this business. It means, you can make money in commodities whether prices are rising or falling!