In terms of being the best tactician in short-term forex trading, we recommend momentum trading and for good reasons, too. Its main aim is to achieve the profit target as soon as possible with as little risk possible under the volatile circumstances that surround each forex transaction. Basically, you take advantage of the momentum when it is on your side by entering the forex market either on a long or short basis.

You will require three kinds of moving averages to accomplish your purpose, namely, the moving average convergence divergence (MACD), the 100-day simple moving average (SMA), and the 20-day exponential moving average (EMA). You will see why later.

For the MACD, be sure to use the default setting on the 5-minute chart. Said default setting is: Signal ENA=9, First EMA=12, and Second EMA=26. To start on this short-term forex trading strategy, open the 5-minute chart and look for the right currency pair. This means the pair trading below the SMA and EMA. Take a look at the MACD histogram. You will enter into a long trade when the MACD starts turning positive but stay within 5 candles. Your stop loss margin must be positioned at the candle’s low point, which should be above the EMA and SMA.

You will exit half of your position the moment the trade changes in your favour but be sure that it is still within the amount risked. The other half of your position will follow a trailing stop within a -15 pips on the 20-day EMA. This forex trading tactic should pay off handsomely under the right circumstances.

Now, let’s assume that that your chosen currency pair is trading in the opposite direction – above the EMA and SMA that is. In this case, you must be patient and wait until such time that the currency pair is trading below both the EMA and SMA by 15 pips, minimum.

In reverse of the first situation, you will enter into a short trade with the MACD turning negative within 5 candles. (The first situation was go long on positive turn). Your stop loss is at the high point of the first candle breaking through the EMA and SMA. (In the first, it was at a low point). You will also exit half of your position with the other half set for a trailing stop at +15 pips on the EMA. Again, this forex trading strategy should be in your favour when you can closely monitor the charts.

There are other strategies for short-term forex transactions, of course. Two examples are the use of 2 charts, namely, the hourly and the 10-minute charts as well as the 200-bar MA. You can also explore these options but we recommend trying the momentum trading strategy first.

By: Vincent A Rogers

http://www.gomarketsaus.com/

A great many investors have expanded beyond the realm of traditional investing and moved into the world of day trading. In particular, they are seeking their fortune through trading forex. Considering the significant amount of money many traders have earned on the currency market, it is no surprise trading forex is so popular. Yet this mode of trading can be extremely difficult, which is why one needs to trade in the most educated and effective manner.

This raises the question, how can I become a better forex trader? Contrary to conventional wisdom, there are no magic or secret formulas required for forex success. Instead, there are a few well established methods which can easily enhance the potential profit when trading forex.

First, a serious trader needs to educate himself about the world currency market. They also need to be aware of the conditions which are affecting the various currencies throughout the globe. Far too many traders falter because they make errant guesses based on limited insights into the current market climate. Rather than follow this path, it would be much wiser to become as knowledgeable as possible about the overall market climate.

It is also of critical importance to procure a robot trading platform to execute trades. Such trades can be performed manually or automatically depending upon the preferences of the trader. Once you have a proper trading forex robot platform in your home, you decrease the potential to miss critically profitable trades.

Learning how to read forex charts can definitely improve your potential success when trading. Charts provide you with insights into market movements which allow you to determine trends. Subscribing to a signal service is also advised as you can be made aware of market movements as they occur. This will enhance your ability to enter and exit the market at the right time.

Designing a trading forex plan that works to your own skills and insights could prove to be quite beneficial. Forex trading is anything but random and unfocused, so a targeted and logical plan will have far better results than unstructured trading. Granted, a forex trading plan may take a bit of time to develop. However, the time you spend will be more than worth it when you start to make profitable and successful trades.

Traders certainly do have to manage their money well when entering into the foreign currency market. Creating an annual budget of what dollar amounts you wish to trade through the year would be a helpful means of simplifying the process. Obviously, you can increase or decrease your trading budget based on the outcomes of your trades through the year. The main point here is you do not want to overspend on your trading and you need to keep track of how much money you are putting to risk during trading through the year.

While it is never easy to trade forex, the process can be made a little less difficult as long as you follow a few well established steps for success. Utilizing some of these tips will help your forex ventures greatly.

By: Frank Breinling

http://qajk.com/

The online Forex Market has made many people thousands of dollars, or even millions of dollars, richer. It is becoming increasingly popular with the people who understand it and know how to work the system. People are spending less time doing tedious work and earning more money legitimately with online Forex Trading. This has many people very intrigued, and quite a lot would like to get a slice of the cake.

Forex stands for foreign exchange, so online Currency Trading is just the exchanging of foreign currency. It is based on the principal that, if you send money over to another country in one market condition, and then bring the money back in a different condition, you’ll end up making a profit or a loss. Through this, people trade their money for profit.

It’s really used as a sort of alternative stock market. Instead of trading stocks, you trade foreign money. You buy some foreign currency, then you wait until the value goes up, and then you sell it back. Of course, it’s more complicated than this but that’s the general idea behind it. There is a great value in learning Forex Trading.

There are many ways in which Currency Trading can change your life, but the major one is simply that you can really hit the jackpot and make a lot of money with it. When you are just learning Forex Trading, this isn’t likely to be the case, but as you start to work the system and figure out when to buy and when to sell, you can make huge amounts of money. There have been many success stories involving people, with very little money to start off with, working and trading their way up to the big cash. This in itself is a big enough appeal to draw interest to Forex trading.

But then, there is the change in lifestyle that online Currency Trading can bring. With the ability to choose your own working hours, as well as working from home, comes an opportunity for a totally different life. You can work when you want, from wherever you want, for as long as you want, and this is a very desirable situation to be in. This sort of freedom is only improved by the fact that making money with Currency Trading can earn you the money you need to support this lifestyle.

On the other hand, Currency Trading is not for everyone. To really get the benefits Forex Trading has to offer, you have to spend the time learning Forex Trading. You need to be willing to make some mistakes, lose some money, but then work towards getting it back. If you are not willing to do this, Forex Trading isn’t for you.

But overall, the opportunities are immense. The money you can make, the lifestyle you can have, it all adds up. Forex Trading, when time is taken to learn the ways of the market, can really and truly change your life.

By: Frank Breinling

http://qajk.com/

To be successful in currency trading, an investor needs to have a proper Forex trading strategy. Trading in currencies is a game where there are lots of investors and if an individual wants to edge out the competition, he must possess a sound strategy which is backed by market knowledge and skills. Trading in foreign currency is like entering a battlefield, where an intelligent strategy can help an investor win the money war.

Forex trading is not simple and it is very difficult to perfect or be a master at. There are no guaranteed methods of succeeding at trading Forex but if the investor has certain strategies in place, then the investor gives himself a very good chance of being successful at this unpredictable and highly volatile currency game. An investor equipped with a sound strategy can hit the nail on the head in foreign currency trading easily and start seeing profits quicker than others.

To come up with a sound strategy, the investor needs to know the basics about currency trading and the exchange market where the trading usually takes place. The strategy built upon this knowledge is something that an investor should be able to profit from if implemented in the right manner.

The investor must make sure that the strategies that he comes up with are not complicated in nature and difficult to execute. The strategy should be versatile in nature and could be implemented in any given industry scenario. Through such a versatile strategy, it is very likely that the investor would be able to benefit from it, irrespective of the volatility and the consistent fluctuations in the currency market and the currency values.

When an investor goes through the basics of currency trading before formulating a strategy, the investor must learn the background of the foreign exchange market and how it has changed and evolved over the years. The factors and scenarios that caused the change should also be deeply delved into. After understanding the history of the Forex market, the investor must learn about risk management and also the hazards that are related to trading in it. The investor must learn when to invest in the market and also in what proportion. It does not matter how much profits an investor sees or the amount of losses he incurs; the investor must know when to stop trading and call it off for the day.

When the investor learns all these tricks, he is not only able to move around the market with ease but is also able to tackle any shortcomings or problems in the market without panicking about the situation.

By: Jeremy C. Winters

http://www.poundstoeuros.co.uk/

For you to succeed as a Forex trader, you must use a Forex strategy that you are comfortable with. More so, it needs to be consistent, which means its effectiveness must be proven. Fundamentally, there is no need to try to reinvent the wheel because there are many technical analysis techniques that have been in use for decades and they still work well today. They include price chart analysis, trading breakouts, price action, trend analysis, and 50% retracements, among others.

When looking for an effective Forex strategy, try not to be swayed by all the upmarket graphics that many Forex sites use. Most of these sites are just trying to market something that may not even work for you. Although reading a price chart is something that almost anyone can do, knowing when to trade is something totally different. In fact, this is what separates winners from losers. Therefore, what you need is a strategy that allows you to use your own discretion in choosing when to trade and which trades to take.

A good number of Forex traders believe that automating the entire trading system eliminates the mistakes that come with emotions. The main problem with a mechanized system is that it may not be able to survive all market situations because the trader can always override the system when he or she feels like it. This means that the perceived benefit of eliminating emotions is nonexistent.

Before you employ any Forex strategy, the most important issue you may want to think about is its record. Fundamentally, you want a strategy that has a record of profitability and consistency. Therefore, you should only stick to Forex strategies from successful and experienced Forex traders, especially when you are just starting out. Having a mentor is probably the fastest and the easiest way to make money in the currency exchange market.

A good Forex mentor will teach you how to use effective and profitable Forex strategies that they have and are still using; otherwise it is just a scam. It may be difficult to tell whether the strategies that your mentor is teaching you are the same ones they are currently using; however, if they respond to your queries with precision and offer reliable and useful information, you can assume they are legitimate.

Finally, it is important to remember that being a profitable trader depends largely on how you deal with your emotions. If you have not mastered how to control them, you need to start learning. There are great books and other resources out there that can help you. However, a good Forex strategy can generally only be picked up from a successful Forex mentor.

By: Jeremy C. Winters

http://www.convertdollarstopounds.org.uk/

Currency conversion means converting one country's currency into the currency of another country. Anyone wanting to buy or sell a product or service in a country has to use the national currency prevalent there. When people travel to another country they have to change their country's currency into the currency in use in the destination country. Conversion of the currency is a complex process and the exchange rate of a currency fluctuates continuously.

There are various economic, political and natural factors that can affect the currency exchange rate. The foreign exchange market is the biggest financial market in the world used by investors, even though it carries the highest risk among all the investment options. Without conversion of the currency it would be impossible for the governments and large corporations to do international trade. Many companies participate in currency speculation. They want to profit from the fluctuating rates of different currencies.

The fixed value of a currency allows everyone to figure out the amount of currency needed to buy a product or service. People can also check a currency's relative value to another currency. To keep the exchange rate of its currency stable, the central bank of a country sometimes intervenes to sell or buy particular foreign currencies available to them. This is possible because in any country, the central bank is the largest holder of foreign currencies.

A country may use fixed exchange rate for its currency because of its economic policies or international agreements. There are other countries that allow their currency to float freely in the exchange market. Tourists wanting to visit another country must know the basics of money conversion. Otherwise they will face problems in buying any product or service. If tourists use their credit cards in another country then their transactions may be subject to fees. Over time all these fees add up. The total amount can be quite substantial.

In some countries it is possible to find merchants who charge credit cards in US dollars. This type of system is referred to as dynamic currency conversion. In this situation, buyers do not make payments in the local currency but in the currency of their country where the card was issued. At the same time, such transactions are subject to conversion fees charged by the merchant. This makes it necessary to check all these details with the card issuer before planning the trip to another country.

Mature and economically stable countries use a floating currency conversion system. It is considered more effective and efficient. In such markets, there is automatic correction of the currency value according to the economic conditions and inflation. However, in such a system the exchange rates may occasionally experience wild swings and cause losses to the investor.

By: Jeremy C. Winters

http://www.poundtodollar.co.uk/

Once you complete your Forex Trading Course it can be quite daunting to be thrown in at the deep end with a high level of expectancy to make profit on the Forex. A common mistake new traders make is to let their emotions take over and fly into the wind which only results in one thing...failure. After being taught how to trade Forex, a great deal of planning needs to be made that will define your approach to trading. Without this, all the notes that you have made in your Forex course simply fly out of the window leaving you helpless knowing that other students are well on their way to making profits.

Do Not make amateur mistakes

At this stage stress will most certainly become an issue. Majority of people that are unlucky enough to suffer from this find themselves looking aimlessly through a huge number of Forex charts trying to find a trade to take. If a suitable trade is not found there is a tendency towards taking a trade that is 'almost suitable'. Despite knowing deep down that the chosen trade does not mirror the entry characteristics they were taught, beginners to Forex trading still execute this due to a belief that you should trade a certain amount of times per day in order to be successful on the Forex. It's not rocket science to know what the outcome of taking such trades will produce...a loss. The trick is to know when not to trade. The worst thing is that now that a new trader is trading with emotion, this process repeats numerous times and investments are doubled in the trades thereafter to recoup the loss. Unless rules taught on the Forex Trading Course are followed, this can become a dangerous cycle to be in.

So, in order to approach your trading future in a calm and appropriate manner there are certain rules to follow:

1) Become a perfectionist – To start with chose two trading strategies to conquer. They may be strategies that you found the easiest to understand when you were learning how to trade the Forex or they may be those that deliver most profit. Whichever they are, once they are picked, a maximum level of commitment towards testing and re-testing should be applied enabling optimum insight into how/why these trading strategies work i.e. what does the market need to do in order for you to trade them. On a general level, beginners to Forex tend to chose simple trading patterns such as a flag or a channel as they are basic patterns most commonly found in trading charts.

2) Confirm your indicators – If chosen trading strategies require the assistance of indicators, a beginner should confirm which apply to their strategy/patterns. There are a huge number of trading indicators available, most common being RSI, Stochastics and volume. Not all of them will apply to every strategy so deciding on a trading approach with indicators is crucial. Once trading indicators are confirmed, planning should simply take over. That is, sticking to the rules that point you towards a trade only if indicators do what you want them to do. For example, highest volume on the confirming trading candle.

3) Acquire good resources – Unless you are a pro Forex trader that requires no advice, being alone can be damaging to your trading career. Whilst there are a number of great books or pieces of literature out there, there is nothing more beneficial than having a mentor or communicating with Forex traders alike. This is a great way to pick up tips, rules and most importantly avoidances. Remember however that other traders can only guide you, it is up to you to devise your own trading style that will take you from a beginner to a professional Forex trader.

As you can see, Forex trading for beginners can be quite difficult and emotional if not approached correctly. Follow the rules taught in your Forex trading course and these situations can be avoided.

By: Dragan Lukic

http://www.forextrainingworldwide.com/