Candlestick Charting For Forex Traders

We’ve written before about the different types of forex accounts, and to be sure each one illustrates a different way to approach this unique market. But no matter how you design your forex account, you’ll need to learn to read the fluctuations in currency pairs similarly. In that regard, you can never be too prepared. As with any sort of trading or investing, it’s handy to learn to recognize as many different charts and trends as possible, so as to gain a broader and more thorough understanding of the markets.

With this in mind, one very helpful style of price charting for a forex trader to become familiar with is the candlestick (or “Japanese Candlestick”) design. Famously dating back to an 18th century Japanese trader who invented the method as a way of determining real fluctuations and trends in rice prices, candlestick charting is now so widely used in investment circles that some take advantage of it almost unconsciously.


If you’re not familiar with candlestick charting, the basic idea is to map out four different points of a stock (or in this case currency pairing) value throughout a day: the open, the high, the low, and the close. These points are essentially recorded vertically so that one is stacked above the other, and so on, with the ultimate purpose being to determine the so-called “real body” of the resource or pairing you’re measuring. The open and close form is what’s known as the real body, meaning the area only between the open and close points with no regard to the high or low. This “body” is typically identified as a vertical bar drawn between the open and close, left white if the close is higher than the open (indicating demand) and black if the close is lower than the open. The high and low points then stick up and down from the real body bar to show the full range of fluctuation that occurred.

The point of this method of denoting price movement is to show the relevant volatility that occurred in a given day (or, through the same design, week, month, year, etc.). The highs and lows are interesting, and can certainly be incorporated into an investing strategy, but the real body is thought to show the most vital range to be considered in determining a resource or currency pairing’s true value.

But the thing about the Japanese Candlestick method that’s particularly relevant to forex traders is that it’s specifically designed to be about raw data, rather than external influencers and speculation. Forex pairings operate with regard to national and international trends rather than the goings on of a single company or industry, and as such there are a lot of major factors that influence the market. And by paying attention to the full rise and fall of a pairing over a set period of time, you can find yourself attempting to explain a larger range than necessary by attempting to decipher all of those influential factors. Your analysis can become focused on trying to figure out how and why a price might hit its highs and lows. By paying attention to candlestick charting, however, you can narrow your focus to the most relevant range a pairing is trading in—the “real body”—and make
decisions based on existing data rather than perceived influences.

If this isn’t something you’re already doing, you’ll likely be surprised by how quickly and easily candlestick charting can be picked up. And at the very least, it’s worth learning as a way to gain a new point of view on the forex pairings you track.

Identifying Binary Options Signals

Trying to figure out all of the new forex lingo as it comes out can be a challenge, but don’t get discouraged — there is always time to learn something new! You just need to tune into guides like this. The only thing that you need to know here is that when it comes to forex options, you need to keep your eyes open. Charting still applies, and understanding the underlying markets that you’re trading are going to matter as well. You will need to understand that binary options simply mean that you are working with forex options contracts that must be executed once set. You are only limited to two different choices there.

What about the alerts that drive the binary options contracts? Ah, that brings us to binary options signals. They are derived only after analysis of the underlying asset to be traded has been completed.

Binary options signals are a new phenomenon in the forex world, so there’s always new information coming out. What you will want to do here is make sure that you’re working with a good binary options signals company that can give you the freshest information on your own terms. Every trader knows that time is something that’s incredibly liquid in the forex world. You have to know when to seize it and when to move on to other opportunities.
Looking up reviews is going to help you really figure out what to use and what to avoid. Just like you need to do your homework before you look up a broker, you need to do the same amount of homework before you pick binary options signals. Even though other people would disagree, they are really not created equal.

Nobody can really hold your hand in the world of forex — this is an investing world like none other, so you have to make sure that you do the legwork for yourself. Even if you are looking at reviews, you still need to process things in the back of your head. Is everything working towards your goals? If so, proceed. But if something doesn’t match up with what you need, it shouldn’t be anywhere near your portfolio period.

The bottom line is that it’s your money to invest as you please, but you always have to think about risk no matter what investment comes into play. This is even more the case when it comes to forex — good luck!

Three Types of Forex Accounts

The goals that an investor has when they decide to trade in foreign currency will determine the type of forex account that they open. Most investors choose between three different accounts; a forex mini account, a managed forex account or a full forex account.

Forex mini account

A forex mini account is one which is typically opened by investors who want to participate in the foreign exchange market more actively but do not yet have the knowledge, experience or the money to do so. Mini accounts are generally opened for a fraction of the standard price, making them more affordable for someone who might be leery of investing so much money in a full account, especially when their lack of currency investment experience could set them up for losses early on. Trading can be conducted on a much smaller scale with a mini account, enabling the new forex investor to take smaller positions on currencies. They can also be used to experiment with different trading strategies until the investor finds one that suits them. Additionally, forex mini accounts give investors the same access to various forex tools, including trading platforms, charts, and more.

Forex Accounts

Managed forex account

A managed forex account is one in which the forex trader hires a money manager to oversee their account. They may opt for this type of account because they do not have the time each day to commit to supervising an account that would be trading on such a liquid and fast-paced market as foreign exchange. Investors may also choose a managed account simply because they want their money to be handled by a trained professional with a proven track record of successful currency investments. This does not mean that the investor does not retain control of their account. On the contrary, they will dictate to the money manager the terms by which their investments should be made. The money manager will then make no decision outside of the investor’s guidelines, pursuing the same investments that the investor themselves would make. Many money managers are available for hire who specialise in certain currency investments and strategies, allowing the investor to tailor their managed account even further to their liking.

Full forex account

The full forex account, or standard forex account, is the most basic and common type of forex account that one could have. The investor is in control of their money and each investment is initiated by the investor themselves. They can take advice from various sources when necessary, but unlike a managed forex account, a full account will not be manipulated by anyone but the account holder. Also, a full forex account requires the standard starting investment, which contrasts with a mini account that allows users to start small. A full forex account is what those with a mini account are working up to, and it is the account that most currency investors open when they are transitioning out of a managed account, where they invest part-time and in to full-time forex investing.

Some Stock Market Lessons

Understanding how the stock market works and having a trading strategy is only useful if you stick to it. If you invest in a stock market lesson to learn some good stock market strategies then you need to keep to the plan if you want to succeed. However many stock market investors let their emotions take hold of them and they forget the strategies they learnt from the stock market lessons that they have paid good money for. They become emotionally engrossed in a trade, so they ignore all the rules and warning signs.

Many investors forget their plans and strategies and either simply watch as their portfolio values drop and they will still hold their positions or then in a moment of panic decide to sell at the lowest point in the market realising the largest possible loss. Or they may fear missing out on a big gain, or be so deep in loss that they could not possibly sell at that point. Even if you believe that all positions will recover from their losses, and the truth is that not all of them will, this is a terrible way to trade. It shows a lack of understanding about how the stock market works and it does not matter what stock market lessons you subscribe to. If you do not have the right investing psychology, you are going to continually make donations to the market.

Any stock market lesson should teach you that when you first form your plan for a trade, you should consider what stock price you think it is likely to reach. Often this is called a target price, which often gives the beginner investor the wrong impression. A target price is not necessarily the stock price that has to be reached. Depending on your strategy often a stock price does not have to do anything. If you treat your target price as a goal, it can lead to many problems. Your target price should only be used as a guideline. In a strategy like the share renting strategy it can actually can be advantageous for the stock price not to move much.

Stock Market

The target price helps you figure out your risk to reward ratio, and it gives you an exit signal in your trade. Many advise that setting a 30% profit and 20% loss is the point where a trade should be exited. At the least, it should give you a point where you should reassess the ability of the trade to continue following a particular trend. Remember your trade may never reach your target price. Many factors can interfere with the stock market and a stock price, and you may have set your target higher than you should have.

A good stock market lesson is to understand that there are a number of factors that can influence a stock price and force you to close your position sooner than you may have planned. Your stock market lesson education should cover all of these possibilities, but here are some reasons that should always prompt you to close or reassess a position:

1. The end of a trend. Remember that the trend is your friend and all trends end some time, and you should be prepared for this. Continue reading

Ways in which you can benefit from Forex Trading

Forex trading has become quite common as many people are involved in trading to earn more and more money. There are many benefits forex trading offers to the traders.

A look at forex benefits by new traders

When new traders enter the market, they are not completely aware of the various benefits trading provides them. So, it is important that they come to know of the complete details so that they are not misguided and can take full advantage of the various features and benefits at forex trading.

Exciting benefits currency trade offers

Round the clock trade

The main benefit of trading currency with forex is that it is possible to trade any time of the day or even at night. This is one feature which gives flexibility to people and they are able to trade during late hours as well.

Liquidity & efficiency

Since the trade has infinite sellers and buyers, the traders can even sell when their trade is getting close to the market price that is last. Also it is a known fact that the currency market is referred as the most liquid market among all. The trading volume in a currency market is almost 50 times more than the New York exchange market.

You should also know that there are simply innumerable factors affecting the currency that the probability of anyone or even if we say a group affecting the rate of currency is one in a zillion i.e. close to never.

Transactions at low cost

When making transactions for currency, there is absolutely no commission or any kind of transaction fee that is needed. In case of a forex trade, the only cost a person incurs is with the spread when taking a position.

Another cost in case of forex trade is slippage, this need to be paid when the traders are entering in the market at price lower than they wanted.

Because of the low transaction costs in the trade market due to the cheap slippage and volatility, many traders are trading at low cost.

Profiting even when currency goes down

Unlike in the share market, where a share goes down you have to sell it off and have no other option, but in currency trading even when a currency goes down you can trade it and profit when you its price is going down. So, in this case it is not a total loss situation.

The benefit with leverage

Since traders can take leverage in high ratios, this becomes a great feature for new as well as old traders in which people can take leverage up to 50:1. Also this is a great feature as there are not many ways in which one can get funds of this level.
This has made it easy for people who have opened up with small trading account to borrow more money.

Forex trading has become quite common as many people are involved in trading to earn more and more money. There are many benefits forex trading offers to the traders.

Forex Software: How to Buy Forex Software

Forex software is available today for very reasonable prices. However, you should learn how to buy forex software so you still find incredible bargains on quality trading systems.

Some simple buying tips for forex traders include the following:

• Of course, one sign that you are making the right choice on particular software is that it is highly regarded both on the Internet as well as off the Internet. If you choose a quality system to start with you will fare better than if you make a hasty decision otherwise.

• It is highly recommended that you make your selection based on multiple factors. For instance, there is foreign exchange robot software out there that can make your selections automatically. Certain automated tools make trades for you based on many different factors such as target market, household income, economic condition, or Internet proximity.

Forex Software

• Another suggestion is to buy forex software that is user-friendly. One in particular that I had recently learned about is the Ivybots. While it may not work for everyone, I myself am tempted to invest in it.

• Consider the return of investment expected and proven as you make your selection of automated and projection programs designed to help you trade. In the year 2008, the program mentioned above (Ivybot) generated an overall return, so the advertiser says, at least-of about 523%

• Finding a program that is very easy to install also helps tremendously. If you can find one that allows you to download it or plug it in for immediate installation and use that is the easiest. You do not need to be a computer whiz to use certain programs.

• Premium customer service provided by a caring customer service staff is always very helpful. This is often provided with some of today’s most popular and useful day trading software.

• If you are new to the currency exchange world, it may help you to sign up with automated services where you can deposit low sums of money. This will help you get started as you learn how to trade. Even better yet, it helps to find forex software that allows you to “practice” before “going live.”

• As you shop, you should also check with the regulations department close to where you live. This will ensure you trade within guidelines set by your local or national government. This should keep you from making illegal decisions while on the market.

Forex Software Trading Review: Forex News Software

One type of forex software keeps you updated on current trading activity. The function of computer programs such as Forex News Software is similar to the ticker tapes and news reports you see on Television or other video sources.

Forex News Software Components

Squawk box – This is the scrolling headlines similar to what you would see on some Internet video or television source. It is an instant update provided in real time to help you make the wisest trading moves possible. You receive new information up to eight times per hour, at a minimum of five times per hour.

Order board – This includes information based on hearsay pertaining to Fortune 500 companies transactions. It also shows activity based on major hedge funds. This is a great tool for finding out where the stops are on significant and sizeable investments or potential trading moves.

Forex News Software

Daily features – You can go here before making any trade. Reports here give a summary of previous activity. Likewise, they also help you keep on the lookout during current trading sessions. You can learn what is going on in all markets around the world-in North American, European, and Asian markets.

Trading outlook – This portion of Forex News Software helps you keep track of activity on seven major currencies. Therefore, you can keep track of transactions made involving the Yen, Euro, Swiss Franc, and British Pound. You can analyze the movements amongst these to help you make wiser trading choices.

Tech Levels & Analysis – Information you need which helps you more closely analyze 13 different currencies is lined up here. You can study various statistical aspects of trading such as moving averages, fibonachi retracement levels, RSI, and support/resistance.

Options-You can keep up with options quite nicely using this portion of the Forex News Software. Risk reversal pricing, volatility levels, and strategies are analyzed here. There is also a market commentary provided pertaining to trading activity, levels, and interests.

Global calendar and data bank – Quite a bit of information is provided here. You can find data pertaining to interest rates, economic numbers (stats), meeting dates and times, decision makers, and more.

M & A Flows – This section of a very useful computerized system helps you track various global economies. You can find out where in the world the condition of the economy is the best as well as where it is the worst. You can also analyze flows of funds that circulate around the world.

Strategy Reports –These are generated on a daily or weekly basis. In them is provided coverage on numerous strategy variations such as those pertaining to stops and limits. You also can refer to these for information on a variety of other market moves.

Pros and Cons
This is a very detailed service. However, it may be costly for some people. There is a free trial available to those who want to try it out before using it.

Purpose and Benefits of Online Forex Trading Software

Online Forex trading software has been created to make the exchange of foreign currency easier. Oftentimes, users of various online and computer-downloadable tool increase chance of making a profit.

The Purpose

Traditionally the practice of making Forex trades at times required use of very technical mathematical equations. This often placed limits on the type of people who could profit. However, this has changed especially since the use of the Internet.

Nowadays, many aspects of foreign currency statistics and calculations are automated. Since most of the complex figures are automatically generated, more people can participate in this financial market more readily.

Online Forex Trading Software


The benefits of online and computer-based Forex trading software are many. Just take a look at the most important ones:

  • You can more quickly identify times in which you should make a move that could lead to a greater profit. You can also become more confident in making the right trades.
  • Various automated tools help you make more accurate calculations. This helps you plan your next move while you more accurately manage risk.
  • Sometimes you are even able to trade while you are away from your computer. A specific type of software called a “robot” or “bot” for short is what executes automated trades for you.
  • You are able to concentrate on more than one currency pair. While doing so, you can make predictions on trades based on varying conditions.
  • If you are just getting started with exchanging foreign currency, you have the option to practice. This is a function provided by some of the most reputable Forex online trading software developers and distributors.
  • You become accustomed to analyzing trades that will result in higher profit at minimal risk. This is all accomplished by way of proper support.
  • Certain tools help you keep updated by the minute (or even second). This is accomplished as you install functions on a browser as a toolbar or perhaps you download software that connects to the Internet and tracks current market prices and trends.


Some of the most helpful online Forex trading software and tools include risk and profit calculators, prediction statistics, and practice market tools. Research these to help you maximize your profits, and get your hands on every foreign exchange tutorial you can find. Of course, you are advised along the way to take certain precautions. One of these is to make sure you deal with brokers you trust.

How Does Forex Day Trading Work?

Forex day trading is one of the most promising opportunities for earning income in the Forex market today. Day trading systems focus primarily on what is happening in the market today not in days, weeks or even months to come.

The Forex market is the largest and most available financial market worldwide. Day trading systems lets a trader chose the best time to trade in the market. It also requires less money to be used to start out with. Many brokers allow accounts to be opened with $250 or less making it easier to be used by more people.

The primary function of day traders is to obtain the price swing. Each trading day in the Forex day system, the volume is determined by the different times when the separate markets are open and coincide with each other.

Forex Day Trading

The Forex currency trading amount stays at a high level but it generally peaks or reaches its highest point when European and American markets open simultaneously. This usually occurs between one and four pm mountain time.

Day trading happens when a trader busy a large amount of a foreign currency at a time and sells it as soon as the price rises for that day.

Because this type of transaction involves a large amount of risk it is not for everyone. For instance, if you cannot afford to lose the money you should not risk it as it is often likely that your losses could be great. Day trading is often more beneficial to those who aren’t totally dependent on the amount of money they are risking making it less of a risk overall. Even with this knowledge day trading systems can be quite promising and a large percentage of Forex trades are made in the form of day trades.

Before you move into the world of Forex day trading it is important that you understand the system as well as the basic fundamentals of the Forex techniques that are utilized.

Once you have learned these things you can then learn how to make trades on your own and not be dependent on anyone else. By doing this it will give you a greater sense of accomplishment because you will have the knowledge that whatever profits you turned you did so on your own by making your own decisions and taking your own risks. It is important to remember that day trading when done right can be quite profitable.

How To Choose the Right Forex Trading Software

Forex trading software is becoming more popular among traders as time goes by. One reason for this is the software’s ability to continue working even if you are not. There are several forex software programs available but it is important to choose the one that is right for you.

There are three important things to remember when choosing the right forex software for your trading needs. These three things include:

  • Good Security Measures
  • Proper Customer Support
  • Easy to Understand and Operate

These are the three most important things to remember when trying to determine which forex software you want to use.


When choosing forex trading software it is important to pick one that uses good safety measures. This should be one of the first things you consider when making the decision of which one to use.


Customer Support

This is also a very important aspect of a good forex trading software program. This is especially important for beginners as you are most likely going to have lots of questions until you learn your way around the market and gain a little experience. For this reason it is important to choose software that has unlimited and constant customer support to answer those questions.

Easy to Understand

It is equally important to use software that is easy to understand and operate. Because most people are just learning this market it is going to be pointless to spend money on a good forex trading software program if it is too complicated for you to use and understand. If you don’t understand what is going on you will lose money quickly and in large amounts.

Although there are many forex software programs available it is important to know which ones are the most effective as well as the easiest to understand and operate. One such software program is Forex Tracer.

Forex Tracer has the ability to continue trading by automation making it effective even when you can’t be right there to monitor ever move that is made. This makes it easy to continually earn money and further increase your profits over manual trading alone.

It is recommended that you use the program on a trial basis for a few days before making a purchase to ensure that you understand how it works and that it is the right program for your trading needs. This goes a long way in determining your success rate.