Forex also can be call FX or commonly known as Foreign Exchange Market. This is a universal market where trader buy and sell currency on a common platform. Different from stock and shares, the currency are paired up and price accordingly to the market floating value. This means the price will move up or down depending on demand and supply.
Commonly traded pair are US dollar / Japan Yen (USDJPY), Europe Euro / US Dollar (EURUSD), Great Britain Pound / US Dollar (GBPUSD) and Europe Euro / Japan Yen (EURJPY). These are used for import and export, including bank transform rates and commodities. More then 70% of the activities are traded with the 4 major country currency US Dollar, Great Britain Pound, Europe Euro and Japan Yen.
Forex can be traded through managed account, dealing desk brokerage firms and online internet trading. Due to the widespread and popular internet, more and more people are trading Forex themselves rather then thought fund manager. You can sign up for a trading account and start trading Forex after you funded in money.
Trading Forex is similar to stock and shares where you buy low and sell high to earn the profit from the 2 price difference. Buy in Forex, since you are using currency to buy currency, you can actually sell high first then buy low later and earn profit from the 2 price difference. This is what makes Forex a unique trading market.
There are plenty of indicators and charts for you to use to determine the price direction. Technical trader often uses support and resistance to determine the trend. Fundamental trader often uses economic figures and market news to determine breakout and reversal. There are also conventional traders who uses both technical and fundamental to achieve a winning strategy.
A winning Forex strategy will require a set of rules to follow and a money management system to avoid margin call. Following of rules is important so your emotions will not affect your trading. Having a good money management can compound your profits very fast in a very short timeframe. Having a bad money management can cause your trading balance to go very low in a short time.
Expert Advisor (EA) is a programming language from MT4 (Meta Trader 4) that transform your forex winning strategy into a program that can run automatically executing your designated trades depending on your setup rules and strategy. This program enabled you to earn passive income after you activated it on to your trading platform.
Selection of Expert Advisor is very important and many factors are important to get a profitable program. A good Expert Advisor program can be back tested to yield high profit factor, low maximum draw down and high winning rates. Profit factor (PF) is simply divided your winnings over losses. A profit factor of 2 and above is considered a good program. A profit factor of 10 and above is excellent.
Forex Trading Secrets reveals a trading system for the Euro Currency futures and forex markets that trades in the after hours from 5-11 pm CST. Our secrets for using stochastics show how to improve the performance while three new trading systems are developed and fully disclosed. We use the Tradestation platform to develop this strategy and show our approach for researching and developing a trading system. The final strategy is developed throughout the book with an improved average trade profit and equity curve. -Three fully disclosed trading systems -Rule isolation -Time diversity -Stochastic trading secrets -After hours trading from 5-11 pm -and more............ Capstone Trading Systems is owned by David Bean who has been trading the financial markets since 1995. He started with stocks but quickly moved to futures and forex in 1996 and began developing automated trading systems in 1997. More information as well as my Tradestation files for the strategy that can be downloaded are on our website at http://www.capstonetradingsystems.com
Forex Trading Secrets: A Trading System Revealed Click here to see 5 customer reviews and choose from 14 suppliers
Algorithmic trading and Direct Market Access (DMA) are important tools helping both buy and sell-side traders to achieve best execution.
This book starts from the ground up to provide detailed explanations of both these techniques:
- An introduction to the different types of execution is followed by a review of market microstructure theory. Throughout the book examples from empirical studies bridge the gap between the theory and practice of trading.
- Orders are the fundamental building blocks for any strategy. Market, limit, stop, hidden, iceberg, peg, routed and immediate-or-cancel orders are all described with illustrated examples.
- Trading algorithms are explained and compared using charts to show potential trading patterns. TWAP, VWAP, Percent of Volume, Minimal Impact, Implementation Shortfall, Adaptive Shortfall, Market On Close and Pairs trading algorithms are all covered, together with common variations.
- Transaction costs can have a significant effect on investment returns. An in-depth example shows how these may be broken down into constituents such as market impact, timing risk, spread and opportunity cost and other fees.
- Coverage includes all the major asset classes, from equities to fixed income, foreign exchange and derivatives. Detailed overviews for each of the world's major markets are provided in the appendices.
- Order placement and execution tactics are covered in more detail, as well as potential enhancements (such as short-term forecasts), for those interested in the specifics of implementing these strategies.
- Cutting edge applications such as portfolio and multi-asset trading are also considered, as are handling news and data mining/artificial intelligence.
Algorithmic Trading and DMA: An introduction to direct access trading strategies.
Discover a variety of technical and fundamental profit-making strategies for trading the currency market with the Second Edition of Day Trading and Swing Trading the Currency Market. In this book, Kathy Lien–Director of Currency Research for one of the most popular Forex providers in the world–describes everything from time-tested technical and fundamental strategies you can use to compete with bank traders to a host of more fundamentally-oriented strategies involving intermarket relationships, interest rate differentials, option volatility, news events, and central bank intervention.
Day Trading and Swing Trading the Currency Market: Technical and Fundamental Strategies to Profit from Market Moves (Wiley Trading) Click here to see 12 customer reviews and choose from 33 suppliers