Forex Trading Articles

Although the field of trading psychology has had many books published, not to mention courses and consultants, I do not believe you have to spend years trying to master it. You can grasp it in a heartbeat. Good trading psychology is simple enough that it falls into the realm of common sense. The psychology of trading revolves around making certain you maintain your discipline. Discipline, as…

why do you need a trading routine? The biggest advantage to having a trading routine is that you have a certain set of rules and standards by which you apply your craft. If you don’t have a defined playbook of the set ups that you are paying attention to, you could find yourself justifying all kinds of trading positions that aren’t necessarily prudent. Having a set Forex trading routine will dict…

Most Forex brokers offer traders the option to trade precious metals in the CFD markets as well, and if you are not taking advantage of this, you are missing out. Precious metals are available as CFDs through Forex brokers, CFD brokers, futures markets, and various options markets. Most people stick to silver and gold, but there are also markets for platinum and palladium globally that can be trad…

Forex trading is a great way to make money, but it is not an easy one.  Profitable trading requires patience, planning and practice.  There are some basic hacks that can help you find your footing in the market a bit more quickly and firmly, and we’ll list them below to help you get started. 1. You must know yourself to know your method. There are so many different ways and methods to trade, y…

With the advent of mobile trading and the increasing popularity of tablets and smartphones, Forex trading has become less rigid and more flexible, at least in the way trades can be implemented.  The advantage of these advances is that traders should no longer miss critical entry or exit triggers simply because they’ve stepped away from their desks.  The disadvantage, however, is that trading from …

If you’ve taken any classes at the FX Academy already, you probably know that most of our strategies are focused around technical charts and hard, historical data.  What you may not have realized is that the reason we focus so much on the technical is that oftentimes trading the news or relying too much on fundamentals can be extremely dangerous for your account. While it seems significantly easi…

There’s no question that the end goal of trading (any type of trading) is to profit as much as possible. But most people don’t really stop to think about how to best reach this goal before jumping in.  They don’t really consider whether currency trading or stock trading will best reach their financial goals.  In fact, most people just randomly choose one of these paths and then get started.  Howev…

Before we can intelligently address the issue of whether or not Forex trading is halal or haram we must preface this article with the following message: Although we have researched the issue of Islamic Forex at length, we do not intend this article to replace the opinion of your local or long-term spiritual leader. If you are interested in doing further research on the issues touched upon within t…

It’s no secret that good habits are important for most aspects of life.  Those with good dental hygiene habits have fewer cavities.  People with steady exercise or healthy food habits tend to suffer from fewer illnesses.  The same is true when it comes to Forex trading: traders with good trading habits will tend to have longer, more profitable trading careers. Good Forex trading habits aren’t sim…

Everyone has favorites in life.  A favorite color, a favorite animal, favorite foods, favorite sports and even favorite athletes.  But when it comes to trading Forex, many traders are hesitant to commit to a favorite currency pair, focusing instead of a few preferred pairs without really taking the plunge or committing themselves to one specific pair.  The psychology behind this fear of commitment…

With approximately $5.3 billion traded daily, the Forex market is one of the most liquid markets in the world. This is great news for anyone interested in profiting from currency fluctuations – but with so many different brokerage options, it’s important to think about your account security before putting your capital at risk. At the time of this writing, there are literally plenty of Forex broke…

1. “I never lose.”  Losses are an unavoidable part of all financial trading, and anyone who says otherwise may be over-exaggerating.  In Forex, a steep, unexpected loss could wipe out your entire account, but what makes someone a successful trader is the ability to win more than you lose.  2 – “Money management is not important.”  When it comes to Forex trading, determining how much to risk is…

Why Enroll in a Trading Academy? Before leaping into the world of Forex trading, it is essential that one learns all the ins and outs of the system. Proper education, learnt through a reputable trading academy, will pave the way for successful trading while allowing traders to have fun in the process. Learning a new way of investing must be done step by step. There are many trading schools throu…

Besides the weather, the one topic everyone talks about these days is the market. How is the market doing today? Is it up or down? Should I buy or sell? Which stock is hot? Which is not? When the New York Stock Exchange (NYSE) had to close its doors for two days in 2012 due to Hurricane Sandy, many people didn’t know what to do with themselves. What did they find to talk about during these 48 hour…

What’s YOUR Trading Strategy? When it comes to making money, every investor has his own unique trading strategy. Or so they say. But when push comes to shove, many investors make decisions partially on research, and partially based on gut feelings. Is this advisable? And better yet, is it avoidable? How to Develop Proper Trading Strategies Trial and error in scientific experiments often leads t…

A day on a market trading floor is filled with ups and downs. Seasoned investors mingle among novice traders in a scramble for the most profitable deal. Whether it is stocks, bonds or currencies, everyone wants to get in on the act. But many people take trading much too lightly these days. Trading is not as simple as one thinks and it should be regarded as a serious undertaking. Proper prepara…

The term “price action strategy” is a broad term used to describe trading strategies. You can think of it as a category, just as you would a fundamental trading strategy, an indicator based trading strategy, or even a high-frequency trading strategy. In this case, the trading strategy focus remains on the one driving force of markets: price. By focusing solely on price you can eliminate a lot of …

The Benefits of a Forex Trading Simulator At some point in time, an ordinary person will wake up in the morning and think to themselves, “Hey, my money is sitting in the bank and making nothing. Enough of this. I need some higher returns. It is time to start investing.” Other individuals may be blessed with a monetary inheritance and won’t have a clue how to invest it. Though many people think so…

The recent rapid growth of the Forex market, like anything, has pros and cons. There are more and more resources for Forex learning and trading practice. There are more Forex brokers and services. There are also many professional traders that have developed Forex trading robots (also called auto traders) that can help traders set their trades – and nearly forget them. But Forex auto traders aren’t…

Collecting Historical Data The first step is to make an excel spreadsheet of the most important economic data by collating the relevant data from a recent period. In our example, we are looking at the past six months of data for the four major global currencies. There is one data point for each month. We need to examine and compare both the actual data and the consensus forecast for each dat…

The RSI is a hugely popular indicator and is available on every charting package certainly that I have used. This is where it can be found on MetaTrader 4 (MT4): For this strategy, the indicator settings we are going to use are rather unconventional. If you have used RSI before, you would have often seen a setting of a 14 or 21 period RSI, and the overbought/oversold settings of 70 & 30 res…

You might have heard that a good, profitable, robust trading strategy which has tended to work well with Forex, commodities, and stocks is a volatility breakout trading strategy. But what exactly is this kind of strategy, how does it work, and why is it attractive to traders who want to make money? The Breakout Part Let’s look at the breakout part of the strategy first. Most traders are famili…

Over the years I’ve written hundreds of articles addressing nearly every aspect of trading that I use regularly (and sometimes less regularly).  While much of the feedback has been positive, many readers have commented that my articles are a bit too advanced and that more basic information would make them feel more comfortable to start trading.  Since I value your feedback, I’ve written this artic…

When you open a demo or live account with an online Forex broker, you will need to use a trading platform in order to execute trades with that broker. A trading platform is a piece of software that provides a mechanism for the trade execution and, almost always, includes additional tools to facilitate technical analysis, such as Japanese Candlestick charts with indicators. Many brokers offer a c…

This lesson will go through the major primary functionalities of MT4 and demonstrate them using text and screenshots, providing an MT4 tutorial. Navigation Toolbars Working from the initial screen view that is presented after installation, the toolbars are located at the top of the screen, and are full of icons. Market Watch This window is located at the upper left of the screen. It shows a…

Years ago, everything you needed to know was taught in the classroom, and once you finished your schooling, there was little need for any further education. As the ability to share knowledge has evolved, however, the need to continue for continuing education has increased exponentially. Attending regular seminars is an excellent way to remain in-the-know, especially in the Forex world.   Some of…

What Are You Without an Education? No one wants to be left out of today’s investment markets. Everyone is eager to stretch his dollars beyond the measly interest offered by commercial banking institutions. Why settle for 2% (at best) when it is possible to make 8% or 9% or even more, and do so from the comfort of home? Online trading sounds simple and easy. Marketing gurus worldwide invite thousa…

With all the talk these days about investing, and with everyone eager to ‘beat’ the market, an average trader gets so caught up in the minutia of the process that he gets carried away. This is when mistakes happen- some of them irreversible. By trading blindly, a successful investor can lose his shirt overnight and he won’t know what hit him. People are so involved in making a big hit, they lose s…

At what age should someone be allowed to trade on the financial markets? Legally, a person in the United States has to be over 18 to open an account with a brokerage house. But there are many younger investors who place their trades through their parents’ accounts. In fact, a savvy adolescent may have more aptitude for stock picking than his brother who is 5 years his senior. If you think about it…

Are You a Forex Trading Dummy? Remember years ago when there was a craze where books were popping up for every sort of ‘dummy?’ Windows for dummies, English for dummies, housekeeping for dummies. Once someone was willing to admit he was a ‘dummy’, the world of instructional material was opened wide in front of him. All these ‘how to’ publications made loads of money for their editors but they als…