Learn Forex Trading

The forex market is a continually flowing river of financial opportunities. Each week the market presents opportunities for savvy trader to take advantage of in combination with using leverage to multiply their money. However, it is no easy to ask to trade the forex market with consistent success, this is reflected by the fact that the majority of traders give up, usually out of frustration from losing so much money.

So, as you learn forex trading, you must understand some basic truths that many novice traders either are unaware of or that they simply ignore. Some of the truths you must learn are; over-trading and over-leveraging are the two quickest ways to lose all your money, simple forex trading strategies are the best, elimination of emotional trading is necessary to succeed in forex, and learning from a professional trader and mentor is the ideal forex education scenario.

• Learn Forex Trading Without Committing These Two Errors:

Over-trading and over-leveraging one’s trading account are probably the two biggest and most committed trading mistakes. They are also the reasons why most traders end up blowing out their accounts and quitting all together. As you learn forex trading, you have to be very conscious and cautious of these two trading errors, they often sneak up on you without you really being aware you are making them. The most vulnerable time for traders to commit one or both of these mistakes is right after a trade closes out, whether it’s a winner or a loser.

As you learn forex trading, you must realize that each entry into the market is unique, and it cannot be influenced at all by your previous trade. It is often hard to tell if you are letting your previous trade(s) influence your current one, so the best remedy is to simply walk away from your trading station as soon as a trade closes out, walk away for at least 24 hours. Many amateur traders will jump right back in the market as soon as a trade closes out, either to try and “make back” money they just lost, or because they are on a euphoric high from hitting a winner or a series of winners. You should never force a trade where there isn’t one; you cannot control the market, but the market CAN control you if you let it, all you can do is control yourself.

• Learn to Be Emotion-free as You Learn Forex Trading

As you learn to trade forex it is very important to understand the impact of your own thoughts and emotions on your trading account. The more you treat the forex market like a casino; becoming addicted to being in a trade and getting a “high” from the feeling of greed and hope, the more money you will lose. This seems like pretty obvious common-sense advice, yet most traders end up trading emotionally, whether they realize it or not.

The best way to learn forex trading without becoming emotional is to become calm and calculating in every interaction you have with the market. If you pre-plan for all scenarios you might experience while trading the market, there will be no surprises, if there are no surprises then you will have nothing to become emotional about. Most traders simply do not have a trading plan and they don’t have trading journal, they trade in a very haphazard and unorganized way, thus opening their minds up to become emotional. As you learn forex trading, it is imperative that you understand the importance of creating a forex trading plan and a forex trading journal, keep both of these and you will be far ahead of the majority of other traders.

• Learn Forex Trading from a Professional

Many aspiring traders want to become professionals and learn forex trading good enough to make a full-time living at it. The problem these aspiring forex traders face is that they often do not learn forex trading from a trusted and experienced source. This source should be someone who is already a full-time professional trader, instead of someone who is simply out to sell you their forex trading “robot” or mechanical trading system.

The importance of learning to trade from someone who is actually already successful at trading cannot be over-emphasized. Just like you need to learn from a mentor or a professional in any other field when acquiring a new skill, you need to learn from a mentor and professional trader when you learn forex trading. Many beginning traders think they can teach themselves to trade successfully, while it is true that with enough time and effort you can teach yourself to trade, it is much cheaper, quicker and more effective to learn from a trusted professional trader.

• Learn Simple Forex Trading Strategies

When trading the forex market it is important that you do not over-complicate your trading strategy. As you learn forex trading, you need to make sure that you don’t fall prey to one of the many internet scammers out there who are trying to sell some trading software system or lagging indicator system. These trading strategies do nothing but over-complicate your charts and your mind to the point where you become confused and frustrated and start second-guessing yourself.

When you learn simple forex trading strategies you can see the market more clearly, and you can read the price movement easier and more effectively. It is very ironic that so many traders decide to over-lay indicators all over their charts, all this does is cover up the raw price action of the chart, and it is this price action that you are trying to interpret. It is analogous to trying to read a book with glasses on that are the wrong prescription and make everything all blurry. Yet, floods of newbie forex traders try to interpret numerous lagging indicators and trading robot signals, when they could just simply learn to analyze the price action setups that occur on a plain vanilla price chart.

So, as you learn forex trading, the best way to learn is from an experienced professional trader who trades using nothing more than price action analysis. By learning the method of price action trading from a trusted professional, you will obtain a perspective on how markets move and how they work that you did not possess before. This perspective is born from understanding how price action is somewhat like the “language” of the markets, once you learn to “speak” this language it will be like a whole world opening up before you that you did not previously know about. Check out this forex trading course to learn more about price action trading.

Forex Strategies

Selection strategies in Forex Trading is very important, because our strategy is determining decide our fate in the future. In the world of forex trading there are many types of commonly used strategies for trading, including hedging strategies, strategy intraday, swing trading strategy, scalping strategies, news trading strategies, etc.

At this time I wanted to share some of the right strategy to get good results. However, at the time of trade, there is the possibility that any system will succeed in the long run if not used in connection with a solid money management either.


Full hedge Carry trade
This strategy involves opening a trade with a positive carry and hedging it with a broker that does not charge the carry.

Risk free arbitrage with spread betting?
I found there is a risk free arbitrage between spread betting in British pounds and hedging the same position with a standard forex broker.

5 / 8 Cross over strategy
This is a very simple strategy that involves buying and selling currency pairs when the 5 exponential moving average crossed the 8 EMA.

Simple Trendline Strategy
This trading strategy involves using Trendlines as buy and sell signals.

This information can I give to you, hopefully this information useful.

Wolfgang Flottl and Helmut Elsner, the financial scandals at the Bank für Arbeit und Wirtschaft AG (BAWAG)

In forex trading we would never make a mistake and cause small and large losses in Demo or Real account. We introduce to you about two people who cause harm to a large bank in Austria that is the Bank für Arbeit und Wirtschaft AG (BAWAG). Losses due to foreign exchange transactions. Both men are Flöttl Wolfgang and Helmut Elsner. The total losses caused by them are for 1.4 billion euros (equivalent to $ 1.97 billion today - 2008). Event is known as the Refco scandal.



BAWAG Profile
Bank für Arbeit und Wirtschaft is a bank in Vienna, Austria with its mission as serving the Commercial banks banking, Investment banking, Private banking and asset protection clients. Established in 1922 and on October 1, 2005, the bank's merger with investment institutions Österreichische Postsparkasse (PSK) and the name was changed to "Bank für Arbeit und Wirtschaft und Österreichische Postsparkasse AG", abbreviated as BAWAG PSK Actually the majority of shares Österreichische Postsparkasse (PSK) has been dominated by BAWAG. But not until the year 2005 the merger occurs.

BAWAG nearly bankrupt Refco scandal in 2005 with the receivables not collectible for 425 million, demand deposits and bonds bilyet In total for a 1.4 billion Euro for Forex transactions. The person is a party related to the internal Flöttl named Wolfgang and Helmut Elsner.

Unable to survive because of the large losses that the U.S. investment firm Cerberus Capital Management bought BAWAG with funds of 3.2 billion pounds.

Refco Profile
Refco is a futures brokerage firm that trades including forex, index and commodity. Founded in 1969 under the name "Ray E. Friedman and Co.." or shortened by Refco. In 2005 the volume of transactions Refco reached $ 4 billion in the year 2005 with the number of customers reached 200 thousand people. Refco also included in the list of brokers on the Chicago Mercantile Exchange

Scandal Wolfgang Flotti & Helmut Elsner

Financial scandals that began on October 10, 2005 where the CEO (Chief Executive Officer) and concurrently the leader of Refco, Phillip R. Bennett hid the $ 430 million without the knowledge of investors and auditors. In April of 2006 files Bennett crimes known customers from Bawag PSK Group (a member of the investment firm / hedge fund Liberty Corner Capital Strategy, which borrow money Refco). Can be concluded Bennett borrow money to BAWAG. Bennett handed the money to the $ 430 million investment company Ross Capital.

Wolfgang Flottl was a trader in the Capital mentradingkan Ross Bennett funds of $ 430 million. Before the public knows who carried out embezzlement Bennett, so Bennett did loan money again for 350 million euros to BAWAG to close the $ 430 million. BAWAG internal parties who approved the loan ceiling is Helmut Elsner Bennett. Problems began when the investment made by Wolfgang losers. This is complicated processes occur. Finally, Central Bank of Austria and the Financial Market Authority bodies know that something is wrong and investigate BAWAG's involvement with Refco.

Bennett finally arrested and ordered to pay all his debts. Overall Bennett, Wolgang, and General Director of BAWAG Helmut Elsner was arrested the authorities.

Because the act of speculation and fraud that hurt the bank BAWAG (largest bank in Austria 4), in the end (derived from AustriaTimes) Helmut Elsner and Wolfgang Flotti each sued for 9.5 years and 2.5 years in prison.

BAWAG bank scandal eventually brought a total of 9 people charged into custody. The huge losses experienced by BAWAG result of this company sold to Cerberus Capital Management LP in 2007.

Here are the mistakes made by Elsner causing heavy jail sentence:
1. Helmut Elsner banks lend funds to the U.S. futures are at Refco Inc. when it was in the bankruptcy.
2. Helmut Elsner was also accused guilty of lending money to Wolfgang Flotti because borrowing is based on risk and without liability. More than that, Elsner did not report the amount of borrowed funds after the funds had been loaned for speculation measures. He is also guilty of having received bonuses and retirement benefits that should not be accepted if from the beginning he had caused considerable losses.

As for Wolfgang Flotti not described in detail the action he did. However, as a hedge fund manager, he was prosecuted for actions that do not use the funds properly, fraud, and fraud in the reporting.

However, despite all that, according to AustrianTimes, Flotti Wolfgang Helmut Elsner and still have the right to request review of their case.

Forex Terms

At this time I want to tell to you about the terms used in forex trading.

Alligator

is a concept of technical indicators from Bill Williams to determine price trends. Is a combination of three (3) fruit and the Moving Average: 5,8,13. You can use it on the graph M30 (30 minutes) & H1 (1 hour). This indicator can be found on the MetaTrader software.





Technical Analysis
is an analysis in Forex trading to measure price movements over the price graph. The things that should be known from this technical analysis is the trend, saturation, support, ressisten, and Pivot Points.



Fundamental Analysis

is an analysis in Forex trading to predict price movements based on fundamental news. News here in the form Fundamental economic news, affiliated, and security that affect price movement.



Buy

is the position in Forex Trading for the Buy. Condition is if the price was going up significantly then you can open a Buy position.



Fibonacci

is a branch of the particular technical indicators to determine areas of support-ressisten. The most famous and easy to use the Fibonacci Retracement. Other families are Fibonacci Arc, Ekspansion. Fibonacci device you can also find the Metatrader software.



Forex

is an investment that trade one currency with another currency. Is an abbreviation of Foreign Exhange or exchange foreign currency.



Leverage

Is the leverage in Forex trading, where the comparison factor will be multiplied by the contract size.

Example is 1:200 with a mini contract is 10,000 margin account is used (1:200) x 10,000 = 50 units traded currencies.

For example an open position USD / JPY the margin used is $ 50. If trade with the GBP / USD then the margin is used for 50 Pounds Sterling. If converted to dollars is 50 times the rate of GBP / USD. Eg rate GBP / USD is at 1.4000 rate. Then used margin is 50 x 1.4000 = $ 70

For Standard accounts, contracts used by 100,000 Leverage is 1:100. The average opening of accounts per lot is $ 1000.



Margin

is guaranteed in forex trading. This term is associated with leverage. If Leverage 1:100 for mini accounts (10,000 contracts), the margin is used for 100 units of currency. Trading USD / CHF with a margin of $ 100. Trading EUR / USD to 100 euros or $ 130 if the rate of EUR / USD when it is at 1.3000.



Pip

is the value of 1 point rise or drop in price movements. For a mini account, 1 point is worth $ 1, for the standard account is $ 10.



Ressistent

are the points that are above the current price. Point of support can be drawn from the line at Fibonacci Retracement Time Frame H1 & H4.



Support

are the points that are below the current price. Point of support can be drawn from the line at Fibonacci Retracement Time Frame H1 & H4.



Zig Zag

is a technical analysis tool to determine trends and support-ressisten prices.

Euro Holds Most Of Relief Rally

* US Q4 GDP revised lower to 5.6% from 5.9%
* University of Michigan consumer sentiment steady at 73.6 in March from Feb
* Merkel: Europe isn’t in the position to solve such a problem on its own
* Greek central banker: Will not need to use aid
* ECB’s Bini-Smaghi: EU/IMF plan not ideal solution
* IMF: Always ready to consider members’ requests for aid
* S&P affirms Portugal’s A+ rating
* South Korean Naval ship sinks near border; early reports of N Korean attack downplayed

* IMM specs short a record 75,000 EUR contracts
* US equities close virtually unchanged
* US yields ease slightly; 2-year note 1.06; 10-year note 3.85%
EUR/USD closed at its highs Friday afternoon, around 1.3423, underpinned late in the day by news that speculators are short a record number of EUR contracts on the IMM. Narrower Greek yield spreads over Germ,an bunds helped as well as Trichet muted his earlier criticism of IMF participation in the Greece safety net.
Central bank offers are seen at the 1.3430 area, just below the 1.3435/45 level which defined the base of the range for nearly a month. Large stop-loss buy orders are clustered around the 1.3465 level.

USD/JPY took a breather in US trade, consolidating recent gains after stalling below 93.00. Heavy offers are seen at the 93.00 level and again toward 93.50. US funds remain buyers on dips to the 92.30/40 region.

AUD/USD was pressured by profit-taking today with many macro accounts selling long AUD. covering short EUR positions. AUD/USD fell to 0.9002, holding above the 0.8994 level which is the 38.2% retracement of the 0.8575/0.9250 rally.

Greece Test Market

Expect Greece to issue a quick EUR 5 bln in debt early next week to take advantage of the market calm after the EU/IMF deal, the FT reports.

A successful sale should further calm the markets and could prompt a more serious short-covering rally.

The market held below the first resistance point of any importance at 1.3435/45 on Friday. 1.3530/40 is another significant area. Stop-loss buy orders are perched at 1.3465 in considerable size, traders reported on Friday.

I Call It! Triangle Double Combo Fibo

Here is one common technique I use to predict a currency movements. I call this technique Triangle Double Combo Fibo. This technique uses a different Fibonacci 2 and using the triangle shape.