Posted: Mon Apr 21, 2008 1:50 pm Post subject: Forex Trading - How and What Should I do/learn before start
Hi,
Forex trading is attractive to many new investors because it offers unparalleled freedoms. A forex trader can live and trade anywhere because the market has no physical location and no central exchange. The Market is open 24-hours-a-day, 5.5 days-a-week via a network of banks and corporations. The major market makers, or dealers, are commercial and investment banks and registered futures commission merchants such as IBFX.
The foreign exchange market is unique because of :-
• Its trading volume
• The extreme liquidity of the market
• The large number and variety of traders in the market
• Its geographical dispersion
• Its long trading hours – 24-hours-a-day (except on weekends)
• The variety of factors that affect exchangerates
Prior to 1999, U.S. citizens were not permitted to trade foreign currencies at an individual (retail) level. Only banks could do so. Currency trading by individuals in the United States is growing very rapidly, at a rate of more than 50 percent annually. Currencies are traded in pairs. The most commonly traded currencies are called “majors” – The Euro/U.S. Dollar, U.S. Dollar/Japanese Yen, Euro/British Pound and the U.S. Dollar/Swiss Franc.
Foreign exchange prices or quotes include a “bid” and an “ask”, much like other financial products. The difference between the bid and the ask is called the “spread,” which is the trader’s cost of the transaction. Currency is generally traded in lots. A standard lot is the equivalent of $100,000 of the base currency. For this reason, currency trading is generally done on leverage. Leverage is the ability to control a large dollar amount of a commodity with a relatively small amount of capital. It is also a tool by which traders can determine the level of risk – and the potential reward – they assume in the market. The basic rule of thumb is, the greater the leverage, the higher potential for loss.
The Forex market can be the perfect market for technical analysis because of the sustained price trends that can be seen over time. Technical analysis examines past price and volume data to forecast future price movements. This type of analysis focuses on charts and indicators to capture major and minor trends and identify buying and selling opportunities. The use of technical analysis does not guarantee the traders success or profitability, of course.
However, trading in the off exchange retail foreign currency market (FOREX) is one of the riskiest forms of investment available in the financial markets and suitable for sophisticated individuals and institutions. The possibility exists that you could sustain a substantial loss of funds and therefore you should not invest money that you cannot afford to lose.
Therefore, to start a forex trading, you must have a knowledge 1st about the following aspects :-
1) Forex Market
2) Technical Analysis
3) Fundamental Analysis
4) Trading Strategies
5) How to trade using MT4 Platform
Hereby, few links you can go to start your forex introduction lesson :-
Therefore, I would like to invite to everybody that are interested in Forex Trading to have a visit to my website (Malaysia Forex Training Centre) to learn in how I do an Intraday Technical Analysis for specially cross pair Gbp vs Jpy and also you can download a free demo account and start practice the techniques and concepts you've been learning. Advisable for you to gain enough experience using the demo account before you can start trading with live account trading.
Today Fundamental Event Calendar (Fundamental Analysis)
Today my Gbp/Jpy (Technical Analysis)
At this moment, price moving inside my teal triangle and I’m waiting to see any breakout to determine which count is more preferable. I believed most probably wave 4 is a truncated wave and this could apply same to wave 5 later. Please do an analysis to BSTS 2 - Daily to assist you in having a bigger pictures what is the next major trend would be. Please wait for a good signal from BSTS before making any entry. Good luck.
This Week Fundamental Event Calendar (Fundamental Analysis)
This week my Gbp/Jpy (Technical Analysis)
[COLOR="YellowGreen"]Gbp vs Jpy 1H, 4H & Daily Pre Market Overview[/COLOR]
Chart 1H - Please study all the 3 possibility wave counts (yellow, white & magenta) and try to analyze which one is more preferable. If there is a bullish continuation, then we shall see either wave 5 is truncated (yellow) or an impulsive (white). Unless price break the retracement critical line which is favourable to magenta count, the bullish continuation scenario would still be valid.
Chart 4H - Unless there is a true breakout to the bullish continuation critical line 2, I believed most probably wave 5 will be a truncated wave scenario. Therefore please looking for a bearish reversal signal from BSTS later.
Chart Daily - Unless we see a true breakout to the upper lime trendline and later to the bullsih continuation critical line 2, I believed market preferably in magenta a b c counts to complete major wave b (yellow). Overall, last week daily pre market oveview chart forecast are still valid until this moment. Otherwise we may see a bullish continuation to complete wave c (white) and 4 (cyan) later.
Summary :-
Preferable, market in bullish continuation phase to complete wave 5 which is favourably a truncated wave..
Please looks for a bearish reversal signal from BSTS later once wave 5 is completed. Adviseable to wait for a complete triggered BSTS signal before making any entry. Good luck.
I have attended a course in KL, very useful. If interested, PM/email me, I can share my experience with you. You can start a demo account and try Forex trading at Interbank FX Website.
Forex - Foreign eXchange Currency Markets
The Foreign Exchange Market is the generic term for the international institutions that exist to exchange or trade currencies. Foreign exchange is often referred to as "forex" or "FX". The foreign exchange market is an Over The Counter (OTC) market. This means that there is no central exchange and clearing house where orders are matched - everyone is connected together.
This Week Fundamental Event Calendar (Fundamental Analysis)
This week my Gbp/Jpy (Technical Analysis)
[COLOR="YellowGreen"]Gbp vs Jpy 1H, 4H & Daily Pre Market Overview[/COLOR]
Chart 1H - Unless the price make a true breakout to the bullish continuation critical line 2 and the “double top ?” stay valid, I expecting there will be a bearish trend later on next week. Otherwise we may see a bullish trend (white).
Chart 4H - I believed a truncated wave 5 already established and I’m looking forward to see a completion of corrective wave of a, b and c (yellow) later on next week. But please study all the alternate counts and wait for a good signal from BSTS before making any entry.
Chart Daily - I’m looking forward for a completion of subwave a, b and c in cyan unless the price making a strong breakout to the bullish continuation critical line 2.
Summary :
Preferable, market in corrective phase to finish wave c corrective after an impulsive wave 1 2 3 4 & a truncated wave 5 (yellow).
Please looks for a bearish continuation signal from BSTS later for wave c. This scenario only valid as long the bullish critical line 2 and the “double top ?” stay valid. Otherwise we may see a bullish continuation accordingly to alternate wave count in white. Advisable to wait for a complete triggered BSTS signal before making any entry. Good luck.
This Week Fundamental Event Calendar (Fundamental Analysis)
This week my Gbp/Jpy (Technical Analysis)
[COLOR="YellowGreen"]Gbp vs Jpy 1H, 4H & Daily Pre Market Overview [/COLOR]
Chart 1H - At this moment, I believed wave iv already completed and looking forward for a bullish continuation to complete wave v. Please noted that there is 3 possible scenario for wave v later which is either :-
1) Yellow truncated - which ic wave v only perform a double top before another major bearish reversal trend.
2) Magenta truncated - which is wave v will be more shorter before anoher major bearish reversal trend.
3) White impulse - which is wave v will be an impulsive wave with condition there will be a true strong breakout to the bullish continuation critical line 1.
Advisable to look for a good bearish reversal signal later from BSTS.
Chart 4H - Please analyse all the alternate counts and my 3 divided zones which are :-
1) Green Rectangle Zone - bias to a bullish trend which is preferably for alt count in white.
2) Maroon Triangle Zone - bias to a bearish bias trend which is preferably once wave v is completed.
3) Red Rectangle Zone - bias to a strong bearish trend which is preferably market in determination to complete subwave c in aqua and wave B in yellow.
Chart Daily - Please noted that I did some changes for yellow wave count and as long the upper green major trendline stay as a strong resistance, preferably we shall see a major bearish trend later to complete subwave c (cyan) and wave b (yellow) or wave 5 and C in magenta. Otherwise if the trendline is taken and its a true breakout, then perhaps market is favourably to alt count in white. Look carefully for any breakout to my teal triangle zones.
Summary :
1) Looking forward for a bullish continuation trend to complete wave v.
2) Wave v could be a truncated wave (magenta or yellow) or an impulsive wave (white).
3) Please analyse all 3 possible counts and determine which one is more favourable by applying to it with your trading system (BSTS).
4) Advisable to standby for a major bearish reversal trend once wave v is completed.
This Week Fundamental Event Calendar (Fundamental Analysis)
This week my Gbp/Jpy (Technical Analysis)
[COLOR="Olive"]Gbp vs Jpy 1H, 4H & Daily Pre Market Overview[/COLOR]
Chart 1H - More likely a diagonal triangle pattern already established (teal) and if the bullish critical line 1 still intact, I believed we shall see a bearish reversal trend (white) later this week. Otherwise if the price make a true breakout to my bullish continuation line 1, then we may have to consider the alt wave count in yellow. Preferably - bearish reversal trend in white.
Chart 4H - Expecting to see a bearish reversal trend a, b & c in white if the extension wave v is already completed. Otherwise we may see another scenario as shown in alt count in yellow.
Chart Daily - Please noted that all alt counts either in white, yellow and magenta is still valid. At this moment price already reached to the upper green trendline and I'm looking forward for a price rejection either to perform wave iv in white or to complete wave b in yellow or wave 5 in magenta.
Summary :
1) Preferably for a bearish reversal trend to complete corrective wave a, b and c (white) if my bullish continuation line 1 still intact. Otherwise, we may see a breakout for a bullish continuation to complete alt count in yellow (according to 1H/4H charts).
Good luck.
p/s - Please noted that this Friday on 8.30pm got a very important FA event which is the "Nonfarm Employment Change" (NFP) news. This news is scheduled every Friday on the 1st week of every month. So, try to have the experience on how FA event give a big impact in the forex markets.
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