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A Look at Forex Market Makers
The investor in the currency market takes for granted that a pair of currencies can be bought or sold at a moment’s notice. Once an order is placed with a broker, the trade is executed within seconds. It is, of course, not as easy as that. Whenever...

FOREX Real-Time Data Providers: Learn What Is Best For You
Many articles have been written on the subject of FOREX trading. The vast majority of them have detailed analysis advice as well as investing tips. What just few of them found interesting enough is the subject of selecting the right real-time data...

How Bollinger Bands Can Tell You What The FOREX Market Will Do Next.
In Forex trading as in all other speculative activities in the capital markets there is a major problem that all, new and experienced traders, will face every time they open their forex trading stations. This is, how to predict the behavior of...

Forex Trading Tips - Part 3

Welcome to part 3. If you have bothered to keep reading until now, you must be enjoying my articles, right? We continue on, our journey, exploring some new forex trading tips to help you either get started or improve your trading skills. Make sure you have read part two before you keep reading. I hope you are taking notes about these secrets to trading the forex markets successfully.

In the last article (part two) of forex trading tips, we went through the concepts of keeping your greed in check with respect to the amount of leverage you take with your trades. Also, I recommended you go out and sort yourself out with a trading strategy. You must be independent when you trade as well as confident in your trading. We also discussed you, "the trader" are a LOSER.

Trade with the volume. Don’t trade in the off-peak hours. (unless you are really confident) The reason is that there is no volume, and the larger institutional traders may be using this time to hedge their positions. So as you watch the markets when you first start off, notice when your currency pais are especially active. Note when the markets for the countries whose currency pairs you are trading open and close. Knowing this information is vital, as sometimes these are the times when forex prices gap by large amounts.

Follow the white rabbit. Or rather, the black rabbit. What I mean is, follow that black line on your screen. Yes, that line. What line? I’m talking about the trendline that you arbitrarily drew on your trading screen. It depends on your system what time scale you are looking at with your trendline, but always remember to trade with the trend. If the market is going up, it’s going up. If it is going down, it’s going down. Simple. Bullish markets. Bearish markets. You can’t predict the future from past trends but acknowledge that sometimes there is a pattern – the trend that the market usually

follows for a certain amount of time. Trade with the crowd – not against it. Think about what happens to you if you try to walk against a herd of people exiting a football stadium? You would find you would probably make no progress.

Trade forex on news and data releases. Almost all foreign exchange currency movements occur when news or some critical data is released. As a retail trader, you have to be careful. Sometimes, there may be some delay between the release of the news and when it reaches us. Assume that the banks know everything far in advance of us, the retail traders. Because it is true. They are in the industry, word spreads fast in industry as some of you can attest in your own professions. So give in to the fact that sometimes, or almost all the time, you as a trader would not be fully disclosed to everything the big institutional traders know. Just follow their tails. Follow the white rabbit.

So, we’ve covered three more things: trade with the volume, trade with the trend and be wary about news releases as those are the times that the forex markets are especially active. Come back for more in part 4.

George Polizogopoulos is a staff writer for ForexTradingHQ.com, the information hub for forex (foreign exchange) traders. More information about learning forex is available on our forex trading website.

This article "Forex Trading Tips - Part 3" can be found in our Foreign Exchange (FX) Markets category.

You may republish this article on the condition that it is not edited and all html links to our website is kept intact. Please don’t steal! ForexTradingHQ.com © 2006 All Rights Reserved.


Written By: George Polizogopoulos




Globe and Mail


FOREX-Dollar rebounds broadly; AUD and CAD off highs
Reuters
... dollar yet after getting done with major central bank events this week," said Hiroshi Maeba, executive director of forex trading at Nomura Securities. ...

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istockAnalyst.com (press release)

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Forex Pros
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WORLD FOREX: Euro Falls After Greece Says May Seek IMF Help
MarketWatch
TOKYO (MarketWatch) -- The euro fell against the dollar and yen in Asia Thursday as news that Greece may seek help from the International ...

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WORLD FOREX: Dollar Dips On Profit-Taking After BOJ Easing
MarketWatch
TOKYO (MarketWatch) -- The dollar fell against the yen in Asia Wednesday as as a widely expected decision by the Bank of Japan to further ...

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France24

FOREX: Dollar slides vs Majors. Fed holds interest rate, housing data declines
CountingPips
AUD/USD Chart – The Australian dollar today surging higher versus the US dollar in forex trading. The AUD/USD rose to its highest level since January 19th ...
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US DOLLAR: NOTHING WRONG WITH BEING PREDICTABLENASDAQ
USD May Fall Further Following Bernanke TestimonyForexyard (blog)
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Forex trends: dollar gains ground touching 2-day high vs euro
Ecommerce Journal
The dollar that closed Wednesday's New York trading at 1.0543 against the franc and 1.5327 against the pound is presently quoted at 1.0555 and 1.5312, ...
Forex: EUR/CHF breaks below 1.4500 to fresh 17 months lowNASDAQ
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France24

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-Dollar falls vs yen and euro after trade dataReuters
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The Hindu

FOREX-Yen slips after its post-BOJ surge fails at Y90
Reuters
But strong dollar bids near 90.00 yen JPY= saw yen buyers quickly sell it back, while traders reported dollar buying interest near the day's lows from ...
Dollar eases in Asia after Japan, US rate decisionsInquirer.net
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Bank of Japan Minimal Policy Change Fails to Support YenDailyForex
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Business Standard

Rupee falls by 9 paise against USD in early trade
Times of India
MUMBAI: The Indian rupee depreciated by 9 paise at 45.43 in early trade today as dollar gained overseas. At the Interbank Foreign Exchange (Forex) market, ...
Rupee appreciates 24 paise against US dollarNDTV.com
Rupee falls by 9 paise/$ in early tradeBusiness Standard
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