What is Forex? | We have 469 free forex articles/answers for you.
Latest Articles
Forex For Beginners – Making Money From Currency TradingFOREX stands for Foreign Exchange and it stems from the international financial market. That is, the Forex market, the place where currencies of different countries are bought and sold in a similar manner to the buying and selling of share market in...
Forex Market Heats Up For The Individual Trader
There has been a plethora of new financial instruments coming on stream for individuals in recent years. A few provide more leverage than just buying and selling stocks. Among the most rewarding markets opening up to traders is the FOREX (Foreign...
How To Get Started In Forex Trading
You may have been hearing about the foreign exchange market (FOREX) and the investment advantages it offers. You would like to try it out, but don't know where to start. This short guide will give you the basics in FOREX and tell you what you need...
Evaluating the Forex Market
Learning to trade the forex market can be a valuable lifetime financial skill. The road to financial freedom requires a toll be paid in the form of perseverance and dedication. The journey starts with a single step and that step should be in the direction of developing a strong foundation in forex market analysis. In this article we are going to go over some forex market evaluation strategies designed to manage profit and losses in your currency trading account.
For anyone starting out trading the forex market, managing your trading can be a daunting task. Everything else seems to take priority over proven evaluation techniques. Learning the currency pairs and the myriad of technical indicators can at first be all encompassing, but building a solid market evaluation approach will allow you to maintain the big picture necessary for successful forex trading.
It all begins with a trading plan. Your forex trading plan should be your hard and fast guide to trade execution. Your trading plan should reflect your trading philosophy and style. Your plan should also contain key forex market evaluation strategies. Below are some currency market evaluation rules that can be embedded into your forex trading plan.
1. Price Action
In the end it is all about the price. Take a look at the current price behavior. Determine if the market is oversold or overbought. Are there any signals indicating a reversal, continuation or retracement? Where are the areas of support and resistance?
2. Market Condition
Access the overall market conditions. Look at both long and short term views. Access if the market is range bound or trending. Look deep into the market using multiple time frames in your technical analysis to determine if the currency pairs are trending short term in a long term range bound market or vice versa.
Stay current with the news and geo-political events. Technical analysis is the direction and the news can be the catalyst. Get comfortable with the principals of that Italian mathematician named Fibonacci.
3. Price Target
Determine what your price target is for the respective ranges and time frames. Patiently time your trade executions. You will be rewarded. Use your price action evaluation and market conditions to determine your price target.
Ask yourself if it makes
sense and look for reasons NOT to enter a trade. When you cannot find those reasons then it is onto trade execution to determine reward-risk ratios and stop losses!
4. Stop Loss
Determine the criteria for stopping the trade on both profit and loss side. Decide upon both technical and fundamental stops. No one is correct 100% of the time, in fact when we trade leveraged instruments like currencies we can be profitable with less than a 50-50 win-loss ratio when we have excellent money management skills.
If you trade without a stop-loss then your forex experience will be a short-term activity!
Anyone can enter a trade, but it is the truly skilled forex trader that knows when to exit the trade. On the profit side, as well as the loss side!
5. Risk Management
Determine how much capital you are going to risk in a given trade. This is critical. You have performed all your evaluation and your exact risk should be a known quantity.
You should also have a minimum reward to risk ratio established in order to limit your losing trades while giving the best odds for the trade to be profitable. This risk to reward ration should be determined by your trading style and time frames used.
Finally, talk the trade through with your trading group or out loud if you are alone. Trust me; you will not be the first forex trader to talk to yourself. Being able to talk through a trade will reinforced the positive aspects of the trade and confirms that your trade will be executed in accordance with your trading plan.
Then it is time to celebrate, because even if the trade does not go your way you had solid execution. You had a losing trade and not a bad trade. That is the difference between successful and non-successful traders. The law of averages will eventually reward you.
If forex is your path to financial freedom, then it should be your business as well. Developing a solid business (trading) plan and market evaluation approach will be your foundation for success in the forex market.
Todd Judkins is an entrepreneur and forex trader. For more information on forex education visit http://www.fxtradecentral.com. Todd regularly blogs about forex at http://forexjourney.blogspot.com.
Written By: Todd Judkins
 TheBull.com.au | WORLD FOREX: Dollar Gains Ground After Strong US Retail Sales Wall Street Journal "The data was dollar positive," said Jacob Oubina, a currency strategist at Forex.com in Bedminster, NJ "It's going to raise [US's] first quarter GDP up ... Forex: Euro and Pound surge against the Dollar US dollar mildly lower as markets eye retail data Euro Advances on Speculation Greece's Deficit Crisis Contained |
 Reuters | FOREX-Dollar little changed vs majors in volatile trade Reuters ... market analyst at Easy Forex in Chicago. "If anything, traders appear to have a preference to sell the euro on rallies." The dollar JPY= was little ... FOREX-Dollar gains vs yen after US retail sales data FOREX-Dollar falls vs yen and euro after trade data |
 RTE.ie | WORLD FOREX: Yen Down Vs Dollar On Hatoyama Remarks MarketWatch TOKYO (MarketWatch) -- The yen fell against the dollar and euro in Asia Friday as Japanese Prime Minister Yukio Hatoyama's comments ... Daily Forex Overview |
FOREX-Euro steadies vs dollar, yen; SNB awaited Reuters LONDON, March 11 (Reuters) - The euro steadied against the dollar and yen in quiet trade on Thursday, recovering from earlier falls ... WORLD FOREX: Dollar, Euro Gain On Yen; UK Pound Slumps Forex trends: recovering vs dollar and yen, euro drops vs pound WORLD FOREX: Euro,Dlr Down Vs Yen On China Tightening Worries |
 Forex Hound | Forex - Dollar mixed vs. rivals after jobs, trade gap data Forex Pros Forex Pros – The US dollar was mixed against most other major currencies on Thursday, following a disappointing report on initial US jobless claims and ... Daily GVI Forex Forex View Forex: US Dollar mostly lower today as EUR/USD hovers near 1.3600 Daily Forex Outlook - S&P 500 at fresh 15 month Highs |
WORLD FOREX: Dollar Surrenders Some Gains To Euro, UK Pound Wall Street Journal TORONTO (Dow Jones)--The dollar is higher against the euro and the UK pound Tuesday but has ceded some of its gains as ... FOREX-Euro, sterling pressured by fiscal concerns FOREX-Yen firm, euro and pound hurt by fiscal worries Forex: Several Indicators That Will Move Currencies |
 FXstreet.com The Forex Market | Forex: Dollar dips on weaker than expected jobless claims NASDAQ FXstreet.com (Barcelona) - The Dollar has been damaged by a weaker than expected decline on weekly claims, and the Greenback has ticked down against its ... Forex: USD/JPY eases below 91.00 after consumer sentiment data Forex: USD/JPY retreat contained by 90.15 support Forex: USD/JPY soars to 90.95 on strong retail sales |
 Reuters | Gold's cross-currency strength signals its evolution Reuters A Reuters monthly poll of 65 forex strategists showed the Greek debt crisis could force euro volatility against the dollar higher still in March. ... Gold Up, Dollar Down; "Silver Benefits" as Paulson & Soros Further Extend Gold ... |
WORLD FOREX: Dollar At 2-Week High Vs Yen On Asia Stock Rises MarketWatch TOKYO (MarketWatch) -- The dollar rose to a two-week-high against the yen Monday in Asia, as higher regional shares bolstered ... FOREX-Yen down on concern ahead of BOJ, pound slips GBP and JPY Under Selling Pressure FOREX-Euro gives up gains, yen steadies after fall |
 Forex Flash | WORLD FOREX: Dollar Up Vs Yen, Euro Little-Changed Post Jobs Wall Street Journal NEW YORK (Dow Jones)--The dollar rose against the yen, but the euro recovered much of its initial loss against the ... FOREX-Yen dips, dollar supported ahead of payrolls WORLD FOREX:Dollar Hits 2 1/2-Month Low Vs Yen; US Yields Down Forex trends: dollar gains some ground across the board, sliding vs yen |
