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How to trade forex for beginners

This is an article for trading forex for dummies

Once you understand how to open a position we need to move onto one of the most important tool in a traders toolkit called the order.

What is an order?

Its a command to the broker to carry out a currency transaction when the price of a specific currency reaches or falls to a prescribed level.

Say the euro is at 1.24

We predict that if it reaches 1.224 there will be a sharp rise in price and we are ready to buy at this price, so we give the broker an order to buy a certain amount at this price.

The first advantage of such an approach is that we do not have to follow the market and the deal will be made at exactly the specified price.

So using this order feature any emotion such as fear or doubt in your trade is eliminated and you can carry out the trade as normal.

The order will have been placed and will be active unless cancelled.

Closing order:

The stop loss limits the amount of money we can lose on a position, therefore managing risk to close position at a predefined point. The opposite to a stop lose is a take profit order closes position when a certain amount of profit is reached.

Make money trading forex using fibinaci ratios

There are two types of fibinacci trading types

- Retracements show you low risk places to buy

in the direction of the up trend.

- Fibinacci profit targets, where the market will usually move to as the trend continues and then stall or reverse.

So the fibs give you a low risk place to buy in the direction of an up trend using advance mathmaktical formulas.

If you are a counter trend trader, using  fibonacci trading systems can significantly reduce your trading risk.

It lets you get into the trend on a pull back, the market goes up and you exit your longs then you consider going short if you are a counter trend trader.

Here’s the guys from Leverage FX

with a great video on pivot trading with examples from the

EUR AO-FX 15M and others

Make money trading foreign currency using pivot points.

Pivot points are based on the previous days weeks and months high low close

There are low risk areas to get in and out of trades.

The general rule of thumb is when you are above the white line area you will go long and when you are below the white line you want to go short or look for shorts.

If the markets underneath the price of the previous day its likely to go down, If the markets above the average price of the previous day its likely to go up

This is one rule that most pivot traders use.

Because so many traders use the pivots they also make tremendous  support resistance areas.

Another example was where the market was already in a downtrend with sideways consolidation and it finds support at the first

Midpoint, it ten trends downwards and finds support at the next

Midpoint almost to the pip. So if you are looking to find areas to counter trend the pivot areas are wonderful areas to get into relatively low risk trades.

Continues to go down to the next midpoint and consolidates again.

When a market has been in a downtrend for a few days they are likely to make a run up to the previous days average price and when that does not happen it gives you a very big clue that its likely to go down.

So you have multiple resistance levels which the market finds support on which is a pretty safe place to buy,

If you go short in a market and it immediately comes back up the pivot you get out with a short loss which is nice about the pivot trading system.

When your right you make a lot of pips, when you wrong you make a short loss which is about 5 10 pips.

Most traders who use and trade off the pivots look to buy right at the pivot. The pivot is the most powerful of all the levels discussed.

At around about 8:24,

the market pulls and you get in at 1.3155 because the previous day was above the pivot, the trends up and we are buying dips to the pivot in anticipation that the above trend is going to continue and that’s what happened with a 30 pip move upwards

If you want to find out more about how you can get involved with Forex trading with very little risk and huge upside profit possibilities, Click Here for Forex Trading.

Frank Temple writes about financial opportunities for regular people. He is not employed by FAPTurbo or any other investment company or firm.