2nd Trading Strategy

Welcome back,

How do we choose a Profitable Strategy?

You can get so many good and profitable trading strategy by surfing the internet, so much so we become confuse which strategy to choose. Everybody claim that theirs’ are the perfect one and are making good profits everyday. They make pips...and bla..bla..bla... I’m not surprise, some traders do believed and even tried it.

I guest you have also tried a lot of them but still kept on searching for the ‘holy grail’. My advice is not over do it!  By the away is there any best strategy in the market? The answer is no! There is no best strategy and not all suit everybody.  One strategy might be working for you but may not work best for me. There is of course a lot of Free Forex Strategy in the market that these are only good if they can fit in your desire.

Keep it simple

A good strategy must not only be simple but could be applied or practiced in a very short time after being installed into a chart. We cannot effort to waste time just to install the strategy every time we start trading. It will distract your mind. As we move further we’ll discover that certain strategy only fits in certain currency pairs.

Today we’re going to discuss one simple strategy but profitable and actually easy to follow. However, I believe this system is not new in the market. The system must have been widely spread over the forums and internet. The most important part is it works to a certain extent. Somehow, traders still go for a complicated one.

How do we go about?

It is imperative that we establish the market trend first. How do we achieve that? Go for the 4-hour chart and the 1-hour chart. Identify the main trend.  If both the 4-hour chart and the 1-hour chart indicate an up-tend, go only for LONG on the 15- minute chart. On the other hand, if the 4-hour chart and the 1-hour chart are trending down, go for SHORT on the 15- minute chart. By looking at the main trend first, we stand a better chance to win a trade by moving along with the current market direction. The main trend is the best friend.

Make the following adjustment to the 4-hour chart to identify the main trend

4-hour Chart Settings:

5 EMA applied to the close
10 EMA applied to the close
Stochastics (10,3,3)
RSI (9)  

Once you've established the trend, go back to the 15 minute chart to make some minor adjustment. The 15- minute chart looks almost similar to the 4-hour chart, except for the fact that it has been added a MACD histogram (12,26,9) as shown below. 

15-Minute Chart Settings:

5 EMA applied to the close
10 EMA applied to the close
RSI (9)
Stochastics (10,3,3)
MACD Histogram (12,26,9) 


ENTRY RULES (15-Minute Chart)

Here are the trade entry rules. Quite simple:

Long (BUY) Signal:

• 5 EMA must cross above the 10 EMA (Indicated on chart by a black candle)
• RSI must be greater than 50
• Stochastics must be headed up and not in overbought territory
• MACD histogram must go from negative to positive OR be negative and start to increase value. (We want to catch trends early so the MACD histogram must be negative) 

Short (SELL) Signal:

• 5 EMA must cross below the 10 EMA (Indicated on chart by a purple candle)
• RSI must be less than 50
• Stochastics must be headed down and not in oversold territory
• MACD histogram must go from positive to negative OR be positive
and start to decrease in value. (We want to catch trends early
so the MACD histogram must be positive) 

STOP LOSS

For Long Trade    - Use the most recent swing low.

For Short Trade   - Use the most recent swing high

N/B:  If the stop is too wide for you to keep within your money management rules, simply stay out of the market! Try not to go more than 30 pips.

There’s a lot of Forex Strategies that you can find, either free or paid ones but sometimes a free one suits us better than the paid one.

One last advice, try as many strategies as possible but they MUST be in demo version until you get the best of the best.

Remember, our goal is to:

1. Enter positions as soon as a particular signal is given.

2. Exit the position as soon as a particular signal is given.

Technical analysis is a skill that improves with experience and study. Always be a student and keep learning.
 
- John Murphy

I guess that is all for now. Till we meet again. Bye

Best Regards

azizexel

http://freeforex-strategy.blogspot.com

First Trading Strategy

Welcome back,

A lot has been said about Forex. Some see Forex as a get rich quick investment. Some say Forex trading is a risky business. It’s true, trading foreign currencies can be very lucrative, but it is also very risky endeavor that leads to heavy financial losses.

To be success in Forex will not solely depend on your good method and strategy but discipline to execute it.  It is a norm that we bound to have losses as well as gains as we go along but the main objective is to gain more than you lose, over time.

Forex can be a difficult market to make money but with the right attitude and strategy you can. A good strategy means knowing how to identify a currency that is ready to go up in value, how long to hold on, and when to sell it. You can develop your own strategy by trial and error but why choose to do this when you can use someone else's that has already proven itself.

For new comers in Forex, do not attempt to experiment your self-developed trading strategy too soon as you might drain out your money in no time. It would be ideal to seek professional advice of some trading experts. Many trading agencies offer online services in this regards. You may consider buying outside program or get books that will help to strategize your trading need. There are a lot of useful books out there that will help familiarize you with the market and teach you how to become successful.

The above are mere suggestions that I feel necessary to get started, with a view to minimize the risk as much as possible, and to maximize the profits margins.

In this article I’m going to share with you one trading strategy amongst my favorites collections but has already proven in the market. The name of this program is KuasaForex Strategy. Feel free to download it. The program is absolutely free. I last bought it for $79, but believe me it’s worth an effort.

The most important part in any foreign exchange trading is the entry point. Good entry point leads you to profit, but on the other hand bad entry point makes you a looser. Follow these simple rules of thumb, never trade against the trend. Be observant and know where to enter and when to enter a trade.  The software will advise you where to place the Stop Loss, what currency to buy and when to trade and it is usually very accurate. I would say KuasaForex Strategy as one of the most reliable forex collection that I ever had.

My last advice is stick to a low margin. Brokers allow leverage, so if you have leverage of say, 100:1 this means if you deposit $1000 you can trade up to $100.000. Leverage is good when you're winning but bad when you're losing, so use it cautiously.

Get your FREE KuasaForex Strategy here, trust me you won’t be disappointed.

Click to download

Hopefully you have found some useful information in this article.

In my next topic we will discuss and give you some tips that will help you to develop a good trading plan.

Regard

azizexel                                                                                                   http://freeforex-strategy.blogspot.com

Trading Forex For Newbies

Hi,
Welcome back to freeforex strategy

In the previous article, we’ve somehow learn how to set-up a forex trading accounts. It’s a very simple step-by-step process but getting started is much more easier. First of all you have to choose a forex broker to open a trading account. Herewith I’ve listed a few brokerage company for you to try. Of course there are thousands and thousands of forex brokers around. But how do we go for the best forex broker? What are the criteria that we look into when we search for the best forex broker? Let's take a look at some of the brokerage company below

• Forex Capital Trading (ForexCT)

• eToro

• DeltaStock

• FXCM
  

How do we decide which forex broker to choose? I’ve listed here some common criteria when selecting a good forex broker as guidelines.

• Make sure the broker you choose offers a mini account. This is the best option for the newbie traders especially who doesn't have much to invest. Some brokers even offer a mini account that grant you trading with a minimal amount as low as $50 and sometimes even lower than that.

• A good FOREX broker should have good 24x7 online support assistance. In the event that your internet line is cut-off, you could at least contact them for assistant via phone. The user friendly broker must be able to provide an online chat facilities and they must have easy access.

• The simplest way to get hold of a credible forex broker is to ask for recommendations. You can consult your friends, check with your colleagues or relatives and ask them which forex broker they using and how they rate them.

• At the same time you need to find out whether they’re efficient as claimed or otherwise. A good broker must be efficient enough to execute your trades at the proper time without a single delay. You can always sign up for a demo account at the broker site, to test on their system’s efficiency.

What's next?

After completing all the formalities, it is time to decide on the currency to play. You will need to know about the currency being traded in the Forex Market. Then decide which currencies you wish to trade or buy/sell. Remember, no matter what currency you trade with, each must be in a pair such as USDCHF, which reads US Dollar/Swiss Franc.

Btw, do you know that there are at least 12 different currencies that are being traded at any one particular time. Out of these only 8 popular currencies are commonly traded. The most popular ones are the currency of New Zealand, Switzerland, Europe, Great Britain, Japan, Canada, Australia and the United States. Each one of these is identified by a three digit identification. You’ll come across this a lot in your trading platform, as shown here.

The three digit identifier for each of these countries is as follows:

• Japan - Yen,

• New Zealand - NZD,

• United States - USD,

• Switzerland - CHF,

• Canada - CAD,

• Australia - AUS,

• Great Britain - GBP,

• European Union - EUR.

All these currencies are also known by their nicknames, example of which are:-

• Japan - Yen, New Zealand - Kiwi,

• United States - Buck,

• Switzerland - Swissy,

• Canada - Loonie,
  

• Australia - Aussie,

• Great Britain - Cable and

• European Union - Fiber.

You also need to know the currency name as well. They are as follows:-

• Japan-Yen,

• New Zealand - Dollar,

• United States - Dollar,

• Switzerland - Franc, Canada - Dollar,

• Australia - Dollar,

• Great Britain - pound or pound sterling and

• European Union - Euro.

Before we begin, let’s take a close look how the market works. Currencies are normally expressed as a unit of $1 USD for every second funds quoted in the pair. Example

USD/CHF 1.3000

In plain language, it basically means that for every one U.S. dollar you will get 1.30 Swiss Francs. In other words, you get 1.30 Swiss Franc for every 1 US$.

The above are all the basic things that you need to know before indulging yourself with forex. At least you've a basic idea of the terminologies used, symbols, history of the foreign exchange market and the monetary system around the world. The next thing is to equip yourself with the market activity, market trends, financial instruments, and the psychological factors that affect the market. The ability to understand forex charts and graphs is of utmost important.

You need to familiarize yourself with the trading platform. The trading platform is free to use. It also allows users to practice with the demo account. Forex trading is a skill that needs to be practiced and perfected. The best way to learn forex trading is to practice. Practice makes perfect.

Currency traders use price charts to decide when to go into the market either to make market entries or exit. The decision derives from the market signal obtained from the technical analysis study. The signal will indicate how strong a trend is as well as how long it will last.

In the world of Forex, there are many tools that can help you decide when would be a good time to trade, some of these tools that are worth knowing about are Bollinger Bands, Moving Average (MA), Stochastics and Relative Strength Index (RSI). However, we’ll not be going into these indicators in detail but in general they are:

Moving Average

Moving averages are one of the most popular indicators and they are used to confirm whether a trend exists or not as well as whether a trend is about to come to an end. The types of moving averages are simple, weighted and exponential moving averages.

Stochastics

Stochastics are used to find out how long a trend will last and when it will come to an end and move in the opposite direction. There are two kinds of stochastics i.e. %K and %D, ranging from 0 to 100. %K is the quickest and most influential one while %D is slower and less influential.

Relative Strength Index (RSI)

RSI is used to deduct the pace of an upward or downward movement of price and normally ranges from 0 to 100. Traders normally verify RSI signals with additional indicators.

The secret to learning how to trade forex successfully lies on the strategy applied. Different people have a different set of strategies depending upon their budget, needs, comfort with risk, and ultimate goals. One way to ensure that you have the right trading strategy would be to perform a series of practice trades.

Basically, that means you would simply log trades in your PC without putting any monetary investment into the equation. Go ahead and perform your trades and see if you have the right strategy in place without risking any money losses. This process surely requires a bit of patience but worth trying. At the end of the day, you do not lose a penny even if you lose the game.

In my next article, we will look at one Forex trading strategy which is simple to understand, easy to apply and certainly makes money. I'll show you some of my personal collections that I've been using recently. This strategy so far works fine with me and if you learn it correctly, I trust you too will soon be making profits.

Hope you enjoy the article.

Regards

azizexel

http://freeforex-strategy.blogspot.com

Getting Started With Forex

Welcome back,

Whatever it is, be it the existing users or new users, the trading requires a 'MetaTrader 4' platform However, for this tutorial I'll be using the FXCM Trading Platform as an example.

In order to trade in the financial market, traders need a trading software called a MetaTrader4 platform. This is a free package program and available from a wide selection of Forex brokers. This program is specially designed for online trading in the Forex market.

There are plenty of forex trading brokers which offer more than one forex trading software to their customers. Some of these trading software can easily be operated online. There are also some software which you have to download on your PC so that you can use them.

For this tutorial, we shall use only MetaTrader 4. The software itself offers so many strong features. The built-in technical indicators enable you to analyze securities' quotes, make trades and develop trading strategy. Please note that the trading platform be it for a live trading or practice account are exactly similar.

New Users

If you do not have MetaTrader 4 installed on your computer then you can download a copy here and requesting a 'practice' account:

Please note that you are free to use any MetaTrader 4 broker you wish. There are plenty of MetaTrader 4 brokers out there but, for this particular tutorial I shall be using FXCM MetaTrader.

What is forex Trading?

In plain language, Forex trading is to buy one currency while simultaneously selling another. In other words you are exchanging the currencies.

Currencies are traded in pairs, example Euro and US dollar as EUR/USD. In this case, you can buy Euro and sell US dollar and similarly, you can sell Euro and buy US dollars.

For new comers, you'll have to live yourself with the jargon and terminologies which a trader must know before start trading.

Some of the common terminologies are:-

• Currency Pair - The two currencies that make up a Foreign Exchange Rate . For Example, EUR/USD or GBP/USD

• Base Currency - The first currency in a Currency Pair. It shows how much the base currency is worth as measured against the second currency.

For example, if the GBP/USD rate equals 1.6215 then one GBP is worth USD 1.6215.

• Bid Price - The bid is the price at which the market is prepared to buy a specific Currency in a Foreign Exchange Contract.

• Ask (Offer) Price - The price at which the market is prepared to sell a specific Currency in a Foreign Exchange Contract.

• Spread - The difference between the bid and offer prices.

• Pips - The smallest unit of price for any foreign currency. Digits added to or subtracted from the fourth decimal place, i.e. 0.0001. Also known as Points.

• Lot – A standard transaction size in forex transaction.

• Leverage - Also called margin. The ratio of the amount used in a transaction to the required security deposit.

• Market Order: An order to buy at the current Ask price.

• Stop Loss Order – is an instruction given to your broker to automatically liquidate your open position for a currency when a specific price or targeted price is reached.

• A trailing stop is a type of stop-loss order attached to a trade that moves as price fluctuates.

CURRENCY CODES

• USD = US Dollar
• EUR = Euro
• JPY = Japanese Yen
• GBP = British Pound
• CHF = Swiss Franc
• CAD = Canadian Dollar
• AUD = Australian Dollar
• NZD = New Zealand Dollar

CURRENCY PAIR TERMINOLOGY

• EUR/USD = "Euro"
• USD/JPY = "Dollar Yen"
• GBP/USD = "Cable" or "Sterling"
• USD/CHF = "Swiss"
• USD/CAD = "Dollar Canada"
• AUD/USD = "Aussie Dollar"
• NZD/USD = "Kiwi"

Downloading “MetaTrader 4” platform

So, let us begin! If you visit the link above then you will be directed to a new screen similar to the one shown below.

Click on Submit button

A new screen will then appear. Click on 'Download MetaTrader4'

The screen below will appear. Click Open
 

Then click Next

Click Next












 
Check the box below (Yes, I agree with all the terms..). Then click Next

Click Next

Click Yes

Click Next

Click Next

Below image will appear on the screen

Check the box. Click Finish

After a few seconds, the screen below will appear

Click on the 'File' main menu. Select 'Open an Account'

This will navigate you to the following screen. Fill-in the blank. Click Next

Below is an example how to fill-in the details. On completion, check the box. Click Next

 Click Next

Click Finish

Your account is now created and ready for trading.

After a while, the below screen will appear. Click Start.

This will navigate you to a new screen

Click Update and Restart

You’re now ready.

Finish...

That's all for today. I'll see you in my next entry. We’ll discuss very briefly on how Technical Indicators work and orientate ourselves with the chart.


Till then, bye

azizexel
http://freeforex-strategy.com