Forex Tips for Begginers

Trading currency is not for the faint at heart.  It requires a good mental attitude to be able to succeed.  It is often said that the most successful traders are those that have the most patience and discipine.  When you first start trading forex currencies, you will be intimidated and tempted to quit early on. Knoweldge is your key to success!  Learn how Forex trading works and become familiar with the various tools that are availabe to assist you.  In this article, we will explore some basic questions that you may have as a begginer.

What are some good points to consider as a beginner?

1. It's not necessary to have millions or even thousands of dollars in your investment account.

2. You should start out by practicing with a demo account.  Almost all of the online brokerage services offer online demo accounts.

3. Be patient and practice, practice, practice!

4. Learn to read candlestick charts.

5. Develop a trading style that fits your goals.

6. Consider trading software only after you have developed your own trading style.  This is important so the software will match you particular trading goals.

7.  If you plan to use Forex Spread Betting, be sure that it is legal in your country.

8.  Learn when to pull out of a trade.

How strong is the Forex market?

The forex market, represents an international network of currency exchanges in various nations around the world. The currency exchange market literally handles trillions of selling and buying transactions of major currency pairs.  These pairs include but are not limited to:  Euro, Yen, Canadian Dollars, Pounds and Australian Dollars. 

Forex Market Hours - When is the market open and what are good times to trade?

The Forex Market is open 24 hours a day from 5pm EST on Sunday until 4pm EST Friday.   However, the time range between 8:00 am and 12:00 pm EST. are considered the "Power Hours" for trading.  These are the most heavily traded hours each day.  This is mainly because of the overlap between the closing and opening of the European/US markets.  This overlap occurs when the US and European trading centers cross.  So in a nutshell, when the US session is opening, the European session is closing.  This is a very active, but small window known as the "Hot Zone."

So what are the best currencies to trade during this Hot Zone?

Generally, the following currencies make the largest movement in pips during this time:

•EUR/USD

•GBP/JPY

•USD/CHF

•GBP/CHF

•USD/CAD

Hopefully this information will answer some of your questions and get you heading in the right direction. In my next series of posts, we will discuss trading strategies, trading software, charts, indicators and Forex spread betting.

Developing a good Forex Spread Betting Strategy

A lot of people tend to be confused regarding the difference between a Forex spread betting strategy and a general trading strategy. While there is an abundance of information and facts available online about Currency trading strategies, they often overlook the importance of manipulating your own Forex spread betting technique to increase profit but still at the same time limit your losses. Let's see if we can steer you in the right direction to help you develop a good Forex spread betting approach.

It makes perfect sense to have a target profit as well as an appropriate stop loss set at the level you are willing to take a loss, however, you need to consider what should happen when your trade does not quite reach your profit target? You basically have one of the two following options:

1. Let the trade reverse and possibly hit your stop loss.
2. Change to a Forex spread betting approach to achieve a profitable trade.

Many have employed a quick profit Forex strategy that targets a smaller pip profit of around 10 pips. Using this approach a trade is entered with the goal of achieving a 10 pip profit. While this doesn't sound like a huge amount, let me explain why this can work in your favor. If you are trading new highs and lows, you can quickly reach your 10 pip target. So imagine if you take your profit at 80%, you will still make a nice profit.

You should also consider adjusting your stop loss to whichever one of the following levels looks safest:

1. The level of your trade entry point
2. The last support or resistance level

Now consider how this Forex spread betting strategy all ties together; If your stop loss is set to your trade entry level you will have virtually no risk of losing because if the trade direction reverses you still will have made your original profit. On the other hand, if the trade continues in a positive direction, you could easily make your way to 100 pips or more. Remember to keep adjusting your stop loss level, as this will secure your profits while leaving plenty of wiggle room for your trade to achieve your goals.

You now have a risk free Forex spread betting strategy that you can simply repeat at every opportunity.  Remember, implementing a good Forex spread betting strategy is an important part of your overall trading system.