Sunday, April 19, 2009

Best Hours to Trade Forex

Forex Trading

Since the Forex market is open 24 hours a day, a trader can’t track every single movement on the market. It’s crucial for a trader to know when he can expect high volatility, so that he can implement his strategy on the most effective way. If you’re trading using daily charts, the best period to analyze Forex is around 5pm EST because that’s the rollover period.

If you’re trading on shorter time frames, you must know when you can expect more volatility.

The most important Sessions on Forex are:

The Asian Session (7pm – 4am EST) – During this period, you can successfully day trade especially if you trade the yen. USD/JPY is a good choice if you plan to trade on this session. This period is not as volatile as the US session or the European session, but it’s possible to trade it and achieve a good performance;

The European Session (2am – 12pm EST) – This is one of the best periods to trade Forex. Since most of the dealing desks of large banks are located in London, the majority of major Forex transactions are completed during this session. During this period you can implement a successfully strategy on any currency pair.

The U.S. Session (8am – 5pm EST) – This is another great period to implement your forex strategies. Volatility is good, and you can expect good volatility on any currency pair.

The European and U.S sessions are the most important ones on Forex, so you can trade between 2am and 5 pm EST and get good intraday swings almost every single day.

Between 8am and 12pm EST we have the U.S. session and the European session at the same time. This is the best time of the day to trade Forex. Volatility is good in all currency pairs. Some of the most important economic releases appear during this period, and this brings good opportunities for Forex traders almost every single day.

Sunday, April 5, 2009

How Can I Start Making Money on Forex?

Educate Yourself:

If you’re just starting on Forex, you need to read everything you can about it. Start by reading free e-books like this one and check some top Forex courses on the market. Think about your education as an investment on yourself, not as an expense. Some people argue that you can learn everything about Forex for free. Well, it’s possible, but I seriously doubt anyone can become a good trader without investing in his education.

Forex is a business and as a business it needs time and investment on your part.

Some good products that can give you good knowledge on Forex are Super Forex System, Forex Killer, Forex Hidden Systems, Supra Forex and 10 Minute Forex Wealth Builder.

The only good education that comes for free is the experience. This is a value resource and since all Forex brokers offer you a demo account for free, you can gain experience without risking any money.

Plan How You Will Trade:

You need to decide how you would like to trade. Would you like to day trade? Would you like to swing trade? It all depends on your personality and on the time you have to trade. There’s no such thing as the best trading style. If your personality is more suitable for day trading, you probably won’t be a bright swing trader. If you prefer less stress and/or you don’t have the time to stay in front of your screen all day, you will probably be better swing trading.

Develop Your Strategy:

This is the most important step to master the Forex market. You can use your technical analysis skills to define a trading strategy from scratch. Define it and test it deeply before you commit real money to it.

Some good trading courses on the market are Super Forex System, 10 Minute Forex Wealth Builder, and Forex Hidden Systems. If you prefer to get software you can look at Supra Forex, Forex Multiplier, Turbo Forex Trader or Forex Killer.

If you prefer to use an automatic trading system, you can start with Fap Turbo, Forex Autopilot or Forex Auto Run.

These are great products which can help you start trading Forex successfully.

Test Your Skills With Virtual Money:

Before you commit your hard earned money on a strategy or system, you should test it on a demo account. With this test, you will be able to know how good your strategy is and you won’t risk a dime. Visit a Forex broker and open a demo account. It’s 100% free and it will allow you to grow as a trader.

Keep a Trading Diary:

Keeping a detailed trading diary is what makes you grow as a trader. This is what allows you to learn from your experience. Good traders usually have great trading diaries while bad traders simply don’t care about them.

All traders make mistakes. The difference between winners and losers is that winners tend to learn from those mistakes. Losers prefer to forget about them…

If you want to be a winner, you’ll need to build a great trading diary and make it as much detailed as you can. In the future you can read your trading diary and learn about some mistakes that you made. This will allow you to correct these mistakes on your future trades.

Improve Risk Management and Discipline:

Risk Management is extremely important for a trader. If you want to achieve success, you need to adopt a disciplined mind about trading and improve your risk management rules as much as you can. You shouldn’t risk more than 2% of your account on a trade. This way you’ll be more relaxed because you know that if you lose money on a trade that’s not the end of the world.

Be Patient and Realistic:

You need to be patient and have realistic expectations about the Forex market.

The truth is that Forex is a difficult market, and unless you work hard on it, you won’t achieve consistent results. You need to treat Forex trading as a business and you need to be patient. In order to become a professional trader, you’ll need some time.