What is Forex? | We have 469 free forex articles/answers for you.
Latest Articles
Forex Beginners Guide - Learn How to Trade in Forex Market from the BasicsToday’s Forex trading is well known as a lucrative way to make money online. It became an essential part for investor’s portfolio as you can simply gain thousands in minutes by trading currencies at home. For those who are new to the trade, Forex...
Forex Mini Account - Am I Eligible?
If you were just learning about Forex Markets a good idea for you would be what is called the Forex mini account. The mini account is also great for those who want to start off with a fairly low investment. A mini account can be opened with only...
Forex Signal Trading - What Shoud I Be Looking For?
Forex offers many support services for its traders, including Forex signal trading. Either Forex brokers or independent analysts monitor and analyze the market. Signal trading includes identifying trends. They identify these trends in the Forex...
FOREX Trading - The Secret to Making Profits from the Big Moves
In FOREX trading, it’s a fact that many traders simply can’t let their profits run - they enter trades correctly, but only ever, bank marginal profits.
“Let your profits run” is accepted market wisdom - but how do you do it in practice? How do you maximize your profits?
Many FOREX traders get in on a good opportunity, and take a marginal profit, or are stopped out - they then watch in frustration as the trade piles up $20,000, $50,000, or more - and they’re not in the market! This happens all the time, so lets look at how you can let your FOREX trading profits run.
Statistical Significance
When FOREX Trading, letting your profits run, is the only way you can cover the cost of your losses - and most traders don’t understand its significance.
What constitutes a large winner in FOREX trading? - You need to make ten times or more than your average losing trade. If you lose $500, you need to make $5000 - but how do you do this?
The only way to make money in FOREX trading is by letting your profits run - and this isn’t as easy as it sounds. You need to let your profits run with a NO profit objective. Of course, this is hard to do - and most traders don’t do it (and that’s why they lose).
There are two reasons why traders lose money in the FOREX market – one’s mental, and the other’s physical:
A Mental Dilemma
Why is it so hard to hold on to winning trades?
The emotion of fear comes into play here - the bigger the profit becomes, the more a trader wants to take it - before they lose it.
Watching a trade you are making money in, dip back is hard. Most traders simply say, any profit is better than no profit – so they take a small profit and feel happy. However, the profit isn’t big enough - and their losing trades wipe them out sooner or later.
Traders want to snatch ANY profit - in case it gets away - but this is totally wrong.
Physical Reality
The large trends simply do not come around that often.
By using an open profit objective, and a
lagging exit, most of your FOREX trades will lose you money.
Trying to avoid losses by snatching profits, or running stops to close, will see you lose money in the long run, when you trade the FOREX markets.
The huge trends don’t come that often - so you need to catch them.
If you want to catch the big winners, then you need to see the majority of the trades that you enter, that are in profit, reverse - and stop you out at a loss
Because FOREX Trading offers traders fantastic long-term trends - that go on for months, or years - if you can get in on them, and hold them - you’re all set for huge profits.
Use Lagging Exits
A lagging exit is where you wait for confirmation of a trend change - before banking your profit.
Many traders try to anticipate a trend change - only to take profits early, and miss the major move - don’t fall into this trap!
Here are two exit strategies that will keep you in the trend for as long possible:
1. To exit a trade, use the 40-day moving average. If positioned long in an up trend - wait for a close below this level - and exit the position. In a downtrend, exit a short on a close above this level.
2. If long from a new 20 day high - hold position until prices make a new 10-day price low. If short from a 4 week low - hold short until prices make a new 10-day high.
These two lagging exit strategies will ensure that you are in the big trending moves, for as long as possible. In FOREX Trading, if you want to run the big winners, then you must use a lagging exit. If you do this, then you will stay with the big moves - and pile up huge gains – rather that get stopped out early.
New! A valuable FREE Currency Trader CD containing 9 critical trading reports, tips, strategies and forex trading info. Visit our web site now and grab your CD http://www.tradercurrencies.com.
Written By: Stephen Todd
 RTE.ie | FOREX-Dollar rallies broadly, euro down as inflation weighs Reuters - ... Boris Schlossberg, director of currency research at GFT Forex in New York. "On the other hand, the Obama stimulus package has also helped the dollar. ... Mid−Day Forex Technical Report − Dollar Firm after Mixed Data Dollar soars against euro Dollar rockets higher vs euro, yen on Obama fiscal stimulus plan |
FOREX-Dollar boosted by Obama stimulus, ECB rate cut view Reuters - By Gertrude Chavez-Dreyfuss NEW YORK, Jan 5 (Reuters) - The dollar rose on Monday, boosted by increased expectations of interest rate cuts by major central ... |
Dollar trims gains vs euro, yen after weak US data Reuters - This is just more bad news for what is already expected to be a disastrous Q4 GDP number," said an analyst at Forex.com in Bedminster, New Jersey. ... |
FOREX-Dollar hits 3-week high vs yen as stocks gain Reuters - By Naomi Tajitsu LONDON, Jan 5 (Reuters) - The dollar climbed broadly on Monday, hitting its highest level in three weeks against the yen as rising share ... |
 FXstreet.com The Foreign Exchange Market | Forex Market Update: Dollar Extend Gains Against Euro and Pound Daily FX, NY - Oil prices saw slight profit taking but Nymex crude futures still remained above $48. Gold prices continued to fall due to the weak dollar however, ... Market Overview by Forex Yard TheLFB 2009 Forex Update New Year and New hope in Markets |
Conmed cuts Q4 view on forex changes, sales volume drop Reuters - The company, which also cut its 2009 outlook, said the weakening of the US dollar had a positive effect on its operations in the first three quarters. ... |
 Best Syndication | Forex Trading Signals Well-Positioned for Gains in the New Year Daily FX, NY - ... in US dollar pairs will likely generated further gains in standing Momentum and Breakout trades, and elevated implied volatility levels on forex options ... A Basic Understanding of the Forex Markets Forex – Canadian Dollar Equals US Dollar A Few Things You Need To Know About Forex Trading |
FOREX:Ringgit Ends Easier Against Dollar Bernama, Malaysia - KUALA LUMPUR, Jan 6 -- The ringgit closed easier today against the US dollar as the greenback rallied on positive developments including a stimulus package ... FOREX: Ringgit Opens Lower Against Dollar FOREX: Ringgit Ends Easier Against Dollar |
 Boston Globe | Dollar holds firm near 3-week high vs. yen Reuters - ... chief manager of forex trading at Mitsubishi UFJ Securities. "Market players are still waiting to see if the dollar resumes its slide after the US jobs ... Dollar mixed in Asia Dollar rises against yen in Asia |
 Business Intelligence Middle East (press release) | Gold "Under Pressure" on New Year Re-Weighting, Dollar Strength ... BullionVault (press release), UK - International money market data, released late last night, showed net positioning against the US Dollar rose on the forex market last week, ... Gold Falls Despite US Fed and ECB Vow to Inflate Out of Recession |
