Going Back to Chart Patterns

Trying to figure out the world of forex hasn’t gotten less complex, but it has gotten more accessible. You’re better off making sure that you go back to the fundamentals at the start of the year, so you can become an even more effective forex trader.

We wanted to cover chart patterns, because charting is so important. You can’t move far in the world of forex if you don’t understand patterns at all.

You can think of chart patterns like little canaries in the great coal mine of forex. When you look at a chart, you will be able to hear the canaries “chirp”, which is always a good thing.

The goal with chart patterns is that you want to spot big movements before they actually happen. This allows you to make good forex profits, if you do it correctly. Here’s how to connect things together.

The top patterns consist of the double top and double bottom, head and shoulders (and reverse head and shoulders), rising and falling wedges, bullish and bearish rectangles, bearish and bullish pennants, and triangles (symmetrical, ascending, and descending).

The Double Top

This is a reversal pattern that is formed after there is an extended “move up”. You’ll find that the tops are actually peaks that come about when the price hits a level that can’t be broken. After hitting this level, the price will bounce, but it’ll return to that level again — if the price bounces again, then that’s when you have a double top.

So, what about the double bottom?

This is a trend reversal formation, where price has dropped and formed a valley twice over.

Head and Shoulders

Again, this is a pattern that follows a trend reversal formation. The core of this pattern is a peak (shoulder), followed by a higher peak (head), and then another lower peak (shoulder). A “neckline” is drawn by connecting the lowest points of the two troughs. The slope of this line can either be up or down. Typically, when the slope is down, it produces a more reliable signal.

The head and shoulders pattern is pretty easy to spot, once we actually identify it for ourselves. You also have the inverse head and shoulders, where there is a valley (shoulder), then a lower valley (head), then a higher valley (shoulder). These come into play after prolonged downward movements.

If you saw this formation, you’d want to place a long entry order above the neckline.

Wedges

Wedges are a pause in the current trend, and they are very important. A lot of traders ignore wedges to their peril. There are two different types of wedges: rising and falling. The rising wedge is where price consolidates between upward sloping support and resistance lines. You’ll notice that the slope of the support line is generally steeper than that of the resistance. You know that a big splash is coming, so you can see it from the top or the bottom.

Falling wedges can be a reversal or a continuation as well, except that it forms a little differently. It can form at the bottom of a downtrend, or it can form at the beginning of an uptrend. The falling wedge can be a bullish chart pattern in many ways.

A lot of this is based on the sentiments in the market. Paying attention to everything that’s going on is incredibly important. The last thing that you want is to get behind when you could be adding more money to your bottom line with ease! Charting works!

A Well Read Forex Investor Always Wins!

If you’re trying to get into forex, you might have a lot of reasons for that. Maybe you’ve been reading up on all of the benefits of forex investing, such as the ability to trade virtually around the clock if that’s what you wanted to do. After all, forex trades happen 24 hours a day, and are only closed for weekends and select holidays. It’s a world trading platform that affects the global economy as we know it. Foreign currencies are always been traded based on economic stability in countries.

What does this mean for you as an investor? Well, in a nutshell you will definitely want to make sure that you’re looking into anything and everything that’s going to mean that you make the “cut”, as if it were. You want to be able to become a well read investor.

We’re not just talking about looking into forex tips online — but that’s a good start. You want to make sure that you’re looking into the current events in each area of the world. This is what can set the tone for market rates. You don’t want to ignore that when there is so much to be gained from market sentiment. When people are feeling nervous about the market, the rates fluctuate big time. Capturing data, historical and current, is the best way to grow as an investor.

Indeed, this is not a time to express a hatred for data. In forex, the data you receive is everything. You want to always be able to make sure that you can really look into anything and everything that’s really going to help you while you’re on your journey.

If you’re really new and you’re just getting started, it’s never a bad idea to start demo trading a little while, just until you really figure out the market. Even if you go to some of the seasoned traders and ask, they will tell you that they started out papertrading with demo accounts. This doesn’t mean that they are weak traders — but it’s a lot easier to learn market concepts without worrying about losing all of your money.

While you are booming well read, you should make sure that you really can afford currency trading. It’s something that’s getting a lot of attention, but you really need to make sure that you have a good forex account to play with when the time is right. Trying to play forex with $500 in your account isn’t the right move — it’s not the right marketplace for you. It’s better to have at least $10000 or more, translated into the currency of your choice. Continue reading

The Numerous Ways to Trade Forex, Regardless of Current Skill Level

Forex is something that’s open to everyone, even though many investors are afraid of diving in. Forex is one of those things where you are either really doing a good job with it or you’re having problems. If you want to really make sure that everything is going to be fine wit your forex trading career, you need to make sure that you’re getting the right skills now before it’s too late. Just like rushing into any situation causes problems, it’s going to be a very bad thing if you try to rush into the world of forex before you’re really ready to take that leap. That’s not something that you want to really play with, and we don’t blame you fore being a little hesitant.

As a newcomer, you might wonder how you actually can get into forex without losing your shirt immediately. So we figured we would cover the top places to break into forex.

First and foremost, we have the spot market. It means that currencies are going to be traded “on the spot”, using the current market price. It’s simple and to the point, with round the clock operations. You can open a small account with a very small amount of money, and many brokers are going to basically charge you nothing for the charts and research work that you need. Spreads are also good and tight, and we’re okay with this.

Aside from the spot market, you can always trade forex futures. These were created way back in 1972, and they are very standardized. You have price and transaction information readily available, so you will be able to plan accordingly base don your own strategy.

There are also options for forex, which is just an instrument that gives the buyer the right but not the obligation to buy or sell an asset at a specified price on the options expiration date. The forex market for options isn’t very liquid as futures and certainly not as liquid at the spot market. If you really want the most liquidity, sport fore is where you want to be.

Forex ETFs (exchange-traded funds) are the new players in town, but not everyone is on board with it just yet. The upside is that the ETF will contain stocks, so youíre getting a bit more diversified, but the trouble is that the market isn’t open 24 hours a day, so you will have some limitations and possible losses there.

It’s up to you to decide which path you’ll go towards when it comes to trading forex. Are you ready to get started? We suggest going with spot forex until you’ve really mastered the basic forex concepts. When you have, you can then feel free to branch out if you want to.

Pips vs Pipettes – Know the Difference

As a forex trader, you’re going to beg getting pretty intimate with numbers in a big way. You will live numbers, breathe numbers, eat and sleep numbers. But that’s just the way it is. The more data that you have, the better tracking that you can do. You will need to make sure that you understand some key concepts before you plunge in too deeply into forex.

One concept that we wanted to address right now is the difference between pips and pipettes. You’ll see these terms a lot as a new trader, and they’re very, very important.

A pip is a unit of measurement used by traders to show the change in value between your currency pairs. A pipe is the last decimal place of a quotation. Most currencies are expressed in values out to four decimal places — except for the Japanese yen. It’s special in that it only goes out two places.

So let’s say that EUR/USD moved from 1.2250 to 1.2251 — that’s one pip. If it moved from 1.2250 to 1.2259, that would be NINE pips. That’s a pretty good deal!

But what about those pipettes? We’re not trying to bring you back to chemistry class or anything like that. We’re just saying that you might want a little more precision when you’re looking at gains.

You will need to go to the pipette, which are fractional pips. Let’s use the same EUR/USD pair from earlier.

What if your pair went from 1.22503 to 1.22504? That’s one pipette. Notice that we went out to five decimal places. That’s because we are getting the quote for the pipette value. Most of the time you’ll probably want to just deal with pips, but it can be helpful to also know if you’re making any headway in terms of pipettes as well. It can make the difference between staying in a trade and backing out.

Now that you know more about forex, do you think you’re ready to start trading? Hold on there — there’s still a lot more ground to cover. We say this a lot in forex land, but if you really are very new to forex getting a demo account is way smarter than just rushing in. Even if you have previous investing experience, a forex demo account is truly the way to go. It’s not the end of the world if you spend a few months learning your forex platform and your demo account. It’s better to lose your whole demo account and just have to start over than losing real money and having problems getting into the game at a later time.

How does Forex Stack Up Against Futures

Are you thinking about getting into the wider world of forex, but you’re not sure if you should leave your current trading strategy? You’re actually in very good company. A lot of people are interesting in the world of forex but they have to make sure that you’re really making a good move by switching over. If you have something that already works, we’re definitely not telling you that you should only think about forex and forsake everything else. The nice part of investing is that you really can do just about anything and everything that you want already. If you want to dive into forex, you can definitely do that.

What if you’re already in the futures market? Surprisingly enough, you can stay there. You don’t have to cross futures off your list if you want to go with forex. But there are some advantages to be had when it comes to forex versus the futures market.

The first area would have to be liquidity, first and foremost. Indeed, the forex market is huge. How huge? $4 trillion is traded everyday. It’s the largest and most liquid market in the world. You can pretty much expect a lot of volume. However, you might think that the futures market is pretty massive. This isn’t quite the case — $30 billion is nothing like $4 trillion. That’s why the forex market is really getting a lot more attention than it had in the past. If you really want to make sure that you dive into a market that can really offer you the most volume for value, it would have to be forex, hands down.

Liquidity, if you’re not sure what we’re referring to, is simply the concept of positions being liquidity into cash and stop orders being executed quickly. Unless the market in question is extremely volatile, you can back out of positions quickly.

The futures market isn’t a 24 hour market, but the forex market sure is! You will be able to pretty much trade all day and all night if that’s what you really wanted. This is because the major markets open and close at different times. If you want to trade at a different time, you just switch to another marketplace. Sydney closed? Go to London! London closed? Hit New York! It’s really a 24 hour seamless market.

The difference in commissions is also staggering as well. Futures is an expensive market to trade in because the commissions are so high. It’s the cost of doing business, you say? It doesn’t have to be that way!

In the forex market, the commissions are much smaller, if they’re even charged at all. Yes, brokers are going to make their money in terms of the spread, but that’s with any marketplace. When you really compare futures with the forex market, there are just too many advantages not to really pay attention to them.

What about price certainty? You will virtually always know what the prices are in the forex market, at least when the market is under normal conditions. However, futures and equities don’t work nearly the same way. The price can be incredibly volatile, and the price that you’re quoted is often the last trade, not the price for the contract at fulfillment.

Even though forex can be risky, there are steps that traders can and will take in order to minimize their risk. You can set stop loss points so that you can gracefully back out if a trade goes to a place where you don’t want it to go. During normal market operations, your open positions are going to be closed fast.

Overall, we really can’t speak enough on the many benefits of going towards forex rather than futures. Are we saying that you have to get out of the futures market? Not at all. It’s completely up to you, as always!

College Students and Forex Trading

Can you invest while in school? It’s a question that might sound silly to some, but the truth here is that the world of investing is really open to everyone. You might find yourself wondering if you really can get through so many different components in order to master an investing strategy, but you never know what you can do until you test yourself. It’s just a matter of believing in yourself, and that can make all of the difference. Be sure that you are always thinking about your needs and getting things done — you will not have to worry about much from there if you do!

So let’s talk a little more about college students, and forex trading. We’re going to be honest — forex is something that all people need to be cautious about. It’s tempting to think that you can dive right in and make big money like you hear about in the forums online, but that’s not the case at all. Forex trading is highly sophisticated, and it can take a few months all the way up to a few years to master everything going on. It can be tempting to want to rush and make sure that you get into the action quickly, but that’s really a recipe for disaster. It makes a lot more sense to really be sure that you have everything else taken care of rather than just rushing in.


Knowledge is one of the things that you can use to really make sure that you can make money over the long term. Yes, that’s right — you can’t walk into forex expecting money right away. College students have been traditionally warned away from forex because of the tendency to be impatient. You want money now and you hear story after story of people doing well in the forex market. However, the truth here is that while it’s great to get money fast in forex, it’s horrible to lose money fast in forex.

Take the time to learn about limit orders of all types, leverage, and the different types of analysis. If you aren’t willing to learn more about math, economics, trading, and other investing topics, you probably should stay out of forex.

When it comes to figuring out how much money you need, you can get by with around $1,000. That’ll give you a mini forex account that you can use to get the feel of things.

Yet before you risk your capital investment, you want to make sure that you are demo-trading. Demo-trading means that you trade in a virtual system at the forex trading house you choose. You aren’t risking any money, but you aren’t making any money either. This will be the part that college students are most tempted to skip over, but we definitely recommend that you just stick it out. The more time and effort that you put into the world of demo-trading, the easier it will be in the long run. Yes, you’re going to want to end up just skipping it, but we definitely don’t recommend that line of thinking either. It’s too easy to end up making choices that you will regret later. You don’t want to get caught in the moment.

College students do have one thing going for them — they’re going to be able to make solid decisions with the help of a company. You might be used to reaching out for assistance, so don’t stop now. Join forex groups, but take them with a grain of salt. Online, everyone wants to be an expert. Take the good parts and leave questionable advice behind.

Now is the best time to really make sure that you have things under control when it comes to entering the world of forex — even as a college student!

Forex Lots and the Traders That Love Them

Transactions. If you really want to make sure that you are grasping the ins and outs of forex trading, you’re going to need to understand transactions a great deal. That’s because everything — and yes, absolutely everything — is going to rely on transactions. If you want to know what type of profits and losses that you’re dealing with, you’re going to need to understand transactions. In the world of forex, lot size relates directly to transactions. There are different sizes because it creates more flexibility in the market. However, this is also what makes forex so volatile. There’s a heavier trading volume that takes place that’s unlike anything else in the world.

The lot size is also the reason why forex is to available to just about everyone. Even though we always recommend starting out with plenty of trading capital, you can use micro-lot sizes to get in as a “baby” investor and then scale up as you get more trading capital. Is this recommend? Not at all. But let’s go over lot size in a little bit more detail.

The standard lot is going to be 100,000 units of the base currency, and there’s going to be a set pip value. In the case of EUR/USD, it’s going to be $10. It’s also referred to as a standard account.

If you can get away with it, you really want to make sure that you can go with getting a standard account.

However, there’s also the mini lot size, which is 10,000 units of the base currency. Using the same currency pair from earlier, this would mean EUR/USD at $1.

What about if you can’t get your hands on a mini account? That’s where that micro account comes in. It’s 1,000 units and the pip value is going to be $0.10.

Which account is right for you? Honestly if you really want to take advantage of leverage, you really need to make sure that you work with a standard account. That’s going to give you the best power when it comes to long term planning. This also assumes that you’ve done some demo trading before you even put money into the account. Again, even if you’re coming into forex from another investing platform there’s nothing that says you will automatically become a rockstar. Forex takes a different set of strategies than anything else, so you will need to make sure that you plan accordingly.

Don’t think that you have to rush, either. Just because you’re not ready for a standard account today doesn’t mean that you’re doomed to fail. There are plenty of forex investors that started out with a micro account and earned their way into a standard account.

Brace yourself, know your limits, demo trade until you’re ready to move up, and take it slow. Even though the newspapers and financial news outlets would like you to believe otherwise, there is always time to make more profits!

Dealing with Anxiety in the World of Forex Trading

Are you worried about the forex markets? Thinking that your portfolio isn’t going to be trading properly? It’s time to relax! That’s right, we said it — it’s time to relax and try not to take life too seriously!

How can we say that? How can we think that forex trading is a game?! We’re not saying any of that. We are saying that trading anxiety in the world of forex is something that you have to correct right away. if you worry too much about the way your trading portfolio is set up, you’ll end up making costly mistakes that will cost you big in the long run. It’s better to step back from time to time and make sure that you have the core concepts taken care of.

You have to forgive yourself for any mistakes you make as a trader. No one, not even the super traders, are going to have perfect days every day. There are times where mistakes are going to cost everyone from one point or another. What makes the difference is how you handle the mistakes. If you give up and don’t try to move on, you lose the ability to really be objective. You lose the ability to be strong in your decisions. You lose the power to truly control your destiny through sharp trading.

Sometimes people find that they really benefit from keeping a trading journal. It sounds silly, but being able to look back at your victories as well as your defeats can help you stay in the game a little longer.

This is a journey, and you have to be committed to going to the very end. Except there’s a secret that you probably have figured out by now — there’s never really going to be an “ending”. There’s always going to be a point where you will need to know more information. You will need more challenges. You will have times where you will succeed and wonder what else there really is. These feelings are all normal. You don’t want to go into the markets when you’re feeling upset. That’s going to cause you try to “win back” money that you lost, and that’s usually going to lead to even more losses.

So now is the time to unplug and assess where you are in the forex game. if you’re a solo trader, you might need to join a forum and bond with other forex players. Even though we think that advice in the forums tends to be a little hit or miss, there’s nothing hit or miss about being able to bond with players that have the same desires that you do.

There are people that will try to use your losses to get you to back out of the market completely. If you know that forex is really part of your overall blueprint, then there’s no reason to skip over it, is there? Not at all!

Hang in there, and don’t give up!

Break Out of the PPI Jail – Find Out More

When you wake up and realize that over the last few years of having your loan that there was something attached to it you were forced to pay for without receiving any benefits, it’s safe to say that you’re going to be very angry. You’re going to be very frustrated. You’re going to want to have this series of charges removed as soon as possible and your premiums returned to you. In other words, it can feel like being in jail.

That jail, so to speak, is called the PPI jail. Thankfully, there is a way to break out of that jail, but you might wonder what the fuss is all about.

Payment protection insurance, or PPI, was implemented as a way to give consumers protection in the event of a life change. We all know life tends to change on us in a matter of hours — if life is even feeling that generous. It can change in an instant, so what you feel about the world around you is very important. You don’t want to just give up before you’ve had a chance to really fight.

Getting a PPI legal team on your side will show the lenders that you mean business. They’re not going to be dealing with someone timidly asking them for the PPI money back without any interest attached to it (your compensation should include the interest as well,  just as if you had a savings account out). Instead, they will be dealing with legal professionals that have already been around the block a few times in the world of PPI. They know all of the questions to ask. In fact, most claim companies can get you multiple PPI claims. This is all done on a no win no fee basis. This means that there’s no upfront payment at all.

You will definitely be better off getting someone on your side. After all, who really wants to feel alone? Who wants to feel like they have no options left but to surrender? Nobody wants to feel that way.

Getting a great legal team on your side is the best way to unlock that money and make it work in your life. It’s better than thinking that it’s impossible to get things done at all, right? Trust in your legal team for the best results — good luck out there!

Choosing the Best Forex trading platform

If you have ever looked in to trading Forex, then you will be aware that there is a selection of fx trading platforms. It can be quite overwhelming and difficult, knowing which of these you should choose, especially if you have not got much experience of Forex.

A good place to start is to ask around friends and family and see if anyone you know has any experience of trading on various Forex platforms. They might be able to tell you about their experiences and this should not only help you understand more about them, but also help you to start deciding which you may like or dislike.

Another way to find out more is to see if you can find any reviews online. These will allow you to find out other people’s opinions on various trading platforms which could help to understand more about what they are like. A lot of negative comments are likely to steer you away from particular ones and lots of positives could lead you towards another. However, remember to understand that everyone has different opinions and so you need to bear in mind that what you might like, could be hated by someone else and so you should do some additional research yourself as well.

Try to come up with a short list of platforms that seem good and they go and look at them yourself. Find out more about them and how they work, look at how easy they are and things like that. This should give you enough information to be able to make up your own mind.

It can be worth trying out several in order to decide which you like the best. Reading reviews and things is one thing, but actually trying something out for yourself is completely different and you will get a much better idea of whether you like using it and whether it works for you.

It may seem rather time consuming to go through this long process but it is worth it. You will not have to wonder whether there are better platforms out there for one thing and you will know that you have chosen the best one for you. You will also find it easy to use and fun because you will have chosen one that is. Therefore spending that time looking will help you to be able to have a better Forex trading experience.