The answer is yes but if you trade it safely and know what you’re doing and have analysis skill you can gain your success in forex trading. People without skills and experience will think that forex trading is same like gambling but it’s not true because with the right skills and experience you can get lot’s of profits from your forex trading.
It will be a good idea for someone new to start small first.
Unlike stock markets, forex markets are open 24/5 except on the weekends. There is a continuous price action all day in the currency markets. Do you know this fact more than 90% of forex traders are speculators?
Currency markets react violently to the release of economic and socio political news. Currency rates can shoot up or down violently for a few minutes to a few hours before the market absorbs the impact of the news.
Fundamental economic news like NFP figures, the housing sales number, FOMC meeting etc all are released at a known time. Google Fundamental News and you will see lots of sites that provide this information.
You can get the day and time when a major economic announcement is going to be made. Non Form Payroll (NFP) figures have become very significant for USD pairs especially after the start of the recession recently.
Non Farm Payroll (NFP) figures are released regularly at 8:30 AM EST on the first Friday of every month. EUR/USD and other USD pairs become very jittery just before the release of these figures. EUR/USD can sometimes shoot up by 50-150 pips in 5-10 minutes just after the release of these figures.
The markets mostly stabilize within a few hours after the release of an important economic news unless the news is of such a fundamental nature to form a new trend in the market.
News release trading is ideal for those traders who like a lot of action within few minutes. Here is one strategy described below that you can use.
Enter both buy and sell orders on for example EUR/USD at 10 pips above and below the price of EUR/USD just five minutes before the announcement of NFP figures.
Place stop loss of 10 pips for both the orders. Place take profit of 40 pips on both orders. When the NFP figures are announced, EUR/USD will either shoot up or down.
Suppose it goes up by 10 pips, buy order will be triggered. Suppose EUR/USD jumps by 60 pips. Your position will be closed at 50 pips when you have reached take profit of 40 pips. Isnt it nice you made 40 pips in a few minutes?
Suppose EUR/USD shoots down. Your sell order will be triggered and you will still make 40 pips. Sometimes the markets have a tendency to whipsaw so be careful. Practice this strategy on your demo account first ten times before going live.
You’re new to forex, or perhaps you’re not new. You’re just not making any money. I know it’s not comforting, but you’re not alone. As I’m sure you’ve heard, an estimated 90% of traders lose money.
So, what are you to do about it? Hope and pray that you’re trading turns around? Buy any and every new trading product that comes on the market? Just give up? Bury yourself in heavy books about the physiology of trading?
There is a better way. Listed below are the eight steps that will (guaranteed) take you from loser to winner if you just work at following them exactly.
1. Get the idea of trading with real money out of your head. You are not making money, so why would you continue? If a vending machine took your money and didn’t give you any product, would you keep feeding it money?
Obviously not. The same rule applies with trading. Don’t throw good money after bad. Stop trading.
2. Buy a ready-made system that is proven to do well. Beware! I did not say to just go buy any system, or to buy an expensive system. There is a place and a time for expensive (proven) systems. However, you do not need one as you learn to trade profitably.
They are readily available. Don’t let catchy sales copy sway you into buying something worthless.
3. Study everything you can on the internet and in books about money management. You are now in school. Learn the system you purchased. Study everything you can on trade size and risk. Realize that picking winning trades is easy compared to the self-control of proper money management.
4. Demo trade the system applying sound money management. Only now do you begin to trade again and only with pretend money.
5. After six month (longer if you’re not profitable yet), start trading with real money. You want to trade as small of an account as you can.
Do not get impatient! I know six months sounds like forever. I have just one question for you? Do you want to lose money?
6.If you are not trading profitably with real money, then start looking for a proven signal provider.
Evaluate your trading after several months of real money. How are you doing? If you are profitable, skip to step eight. Otherwise, continue.
7. Trade with the signal provider while you continue to turn your trading profitable. Do not rush to pick a signal provider. There are a lot of snakes in the grass. Ask questions in forums. Talk to people. Pick someone with whom you are comfortable and who is proven.
8. Their will come a time when you’re trading will become profitable because you don’t have the burden of having to be profitable (the signal provider is profitable for you). So you will then find your own trading making you money as well.
Investors looking to buy penny stocks might well avail of advice from the established brokers. Further, they can also look into newsletters published by various penny stock brokers. These newsletters carry analysis of the possible market trends in penny stocks along with other details like special focus on select stocks. Buy and sell recommendations supported by hints at possible triggers are also published in such newsletters.
Background information on specific penny stock companies along with a peek into their ongoing business development activities is also provided in these newsletters. Besides, transaction records published by the pink sheets and over the counter bulletin board (OTCBB) on penny stock trading on a daily basis can also come in handy for these investors.
Brokers specializing in penny stock trading also maintain their own databases on historical market trends, especially in those stocks which are actively traded. They also keep a close eye on unveiling of significant market and business investment plans. In addition, they also watch out for any signs of an imminent big move on the part of penny stock companies that would fundamentally alter investor sentiments on their stock when this information becomes public.
In addition, a growing body of information on web-based networks and blogs can also provide useful insights into penny market trends. This source of information can be used by investors to cross check veracity of their information gathered from the other sources. Insights picked up these sources will help you to some extent to avoid any likely financial traps that scammers may have laid for gullible investors of penny stocks. For investors in penny stocks, avoiding such traps should assume a high priority, considering the empirical evidence that fraudsters have been rather conveniently targeting these stocks.
If you’re just looking in to the world of forex trading, the number of available choices can be daunting. The Easy Forex Trading Platform is a good place to start because the volume of free information available there is staggering! What follows is a brief description of some of the features you’ll find.
Home Page
When you get there, click on the About tab, which gives you some background about the company behind the site. The minimum trade amount is $25, which is lower than a lot of other services. Of course, if you’re just starting, executing a trade is the last thing you should do on your first visit. Do your research and gain a basic understanding of all the risks and rewards before you commit any of your money. Easy Forex doesn’t require you to download any software to your computer and makes the set up very easy.
Glossary
If you’re not an expert, spend a little time browsing through the Glossary. You’ll find the Glossary button at the top of the left side menu. Give it a click and read for a while. Do you, for example, know what “GTC” stands for? It’s in the Glossary.
Financial Calendar
Right near the Glossary button there is a financial calendar tool. It lists the upcoming announcements and reports that are issued on a regular basis and that can be used as indicators for the currency exchange market. It’s very important to get familiar with this schedule and have a general idea of what the report contents mean.
Forex Outlook
The Forex Outlook button displays a high-level summary of the current state of the major world currencies and is posted daily. It covers the USD, Yen, Euro, and others.
Guided Tour
Take the tour. It’s an invaluable learning tool. It walks you through a straightforward example of a trade (USD against the Euro) and shows you all the steps involved in placing the deal. This is just an example, but you can learn a lot from just walking through the steps. The second example takes you through a futures deal - a little more complicated but again, a good learning experience. By the way, at the end of each example, there is an analysis of the possible outcomes, explaining how you would have gained or lost, depending on rate fluctuations.
The Info Center
Be sure to browse through the items in the Info Center part of the menu on the left side of the screen. There’s a Market Overview, a Market History section, and a selection that discusses strategies and risks. You can get a mini-course in the Forex markets in that one section alone.
In summary, the Easy Forex site offers a lot - read and learn, and don’t trade until you know what you’re risking.
