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FOMO is Fear of Missing Out type of traders, which influences our daily trading habits and decision making capability in Forex Trading. There are following causes which leads FOMO Traders: High Expectations FOMO Traders thanks that one needs to double the account by next month and you are missing out if you do not make a lot of money as soon as possible. This leads to higher risk and large position sizes. One wrong trade and you will regret of choosing wrong position sizing and trade. Over Confidence When you come from a winning streak and feel invincible and then take random trades or too large positions because you think we can “feel” what the market is going to do. Lack of Confidence After a few losing trades, many traders will try to play catch up and then enter random trades just to get into the market and hopefully somehow generate a profit. No Rules When you do not have a system or rules, to begin with, then FOMO is your default mode, always jumping in a...

Traders can get conflicting views of a currency pair by examining different  time frames . While the daily might be showing an up-trend, the hourly can be showing a down-trend. It can be really confusing for beginning traders, which time frame to build strategy on? Perhaps the best way to explain this variation is that the time periods these commonly used terms refer to tend to depend on the usual time a position is held given the type of trading strategy that a trader employs. Some of the most common incremental time frames used by technical analysts when reviewing exchange rate movements for Forex currency pairs include the following: The one minute time frame The five minute time frame The fifteen minute time frame The thirty minute The one hour time frame The four hour or 240 minute timeframe: The one day or daily time frame The one week time frame The one month time frame The one year time frame Forex Time Frames by Trading Strategy Although trading time fr...

BASIC CURRENCY AND QUOTE CURRENCY A currency pair is the quotation of two different currencies, with the value of one currency being quoted against the other. The first listed currency of a currency pair is called the base currency, and the second currency is called the quote currency. Currency pairs compare the value of one currency to another — the base currency (or the first one) versus the second, or the quote currency. It indicates how much of the quote currency is needed to purchase one unit of the base currency. EXCHANGE RATE An exchange rate is the price of a nation’s currency in terms of another currency. Thus, an exchange rate has two components, the domestic currency and a foreign currency, and can be quoted either directly or indirectly. In a direct quotation , the price of a unit of foreign currency is expressed in terms of the domestic currency. In an indirect quotation , the price of a unit of domestic currency is express...

You may have noticed that the value of  currencies  goes up and down every day. What most people don't realize is that there is a  foreign exchange market  - or 'Forex' for short - where you can potentially profit from the movement of these currencies. As technologies have improved,  the forex market  has become more accessible resulting in an unprecedented growth in  online trading . One of the great things about  trading currencies  now is that you no longer have to be a big money manager to trade this market; traders and investors like you can trade this market. Advantages of Trading Forex 24 Hours Trading The single biggest advantage the forex market has over other markets is its 24-hour nature. A  trader  can put on or take off positions literally any time of day or night, regardless of their base of operations. Consider, for example, the working person with a 9 to 5 type of job. Most folks like that cannot be expecte...

What is Swing Trading? Swing trading are short term strategies to take advantage of price swings, either reversing back to the median or fading a rally. Swing trading attempts to capture gains in a stock (or any financial instrument) within an overnight hold to several weeks. Why Swing Trade? Swing trading involves holding a position either long or short at least overnight and or up to several weeks. The goal is to capture a larger price move than is possible on an intra-day basis. Swing trading assumes a larger price range and price move and therefore requires careful position sizing to minimize downside risk. Swing Trading is a strategy that focuses on taking smaller gains in short term trends and cutting losses quicker. The gains might be smaller, but done consistently over time they can compound into excellent annual returns. Swing Trading positions are usually held a few days to a couple of weeks, but can be held longer. Swing Trading Strat...

The Forex Insight for 24th May for major currency pairs are as follows: EUR/USD The EUR/USD pair held on to its modest recovery gains above the 1.1700 handle. The ongoing US Dollar profit-taking slide, triggered by a dovish assessment of Wednesday's FOMC meeting minutes. USD showed little signs of easing amid a sharp retracement in the US Treasury bond yields and following an unexpected rise in the US initial weekly jobless claims. The pair would need to advance beyond 1.1790 to gain some further upward traction and retest the weekly high at 1.1829. GBP/USD GBP/USD: bulls capped by the 100-hr SMA, but if that were to give, opens risk towards key 1.3450 (50-W SMA). GBP/USD is trading at 1.3387, with a high of 1.3422 and a low of 13349. The technical readings lean bearish and are stacked up against the bulls. However, 1.3301 comes as the Dec 14 low and a potentially strong level of support. 1.3040 is a key downside t...

Different market entry and exit orders are being required for different trading scenarios and Forex Trading. The following are some basic types of Forex Orders: Market Order   This is the simplest way to enter the market, whether you are going long or shorting. By taking a market order, a trader enters the market at the best possible price at that given time. The order is filled straight away. Buy Limit   This order anticipates a bounce in an upward direction from the current down-trend. Therefore, an entry point is created below the current market price. Once the entry price is reached the order is triggered to go long. The stop loss is below and the profit target is above the entry level. Sell Limit Opposite to the Buy Limit, this order type anticipates the market to bounce downwards from the current up-trend. An entry point is created above the current market price. Once that price level is reached, the order is triggered to go short. The stop loss is above ...

Emotions should you watch for in yourself while trading: 1. Greed:   Traders are greedy when they don’t take profits because they think a trade is going to go forever in their favor. Another thing that greedy traders do is add to a position simply because the market has moved in their favor, you can add to your trades if you do so for logical price action-based reasons, but doing so only because the market has moved in your favor a little bit, is usually an action born out of greed. Obviously, risking too much on a trade from the very start is a greedy thing to do too. The point here is that you need to be very careful of greed, because it can sneak up on you and quickly destroy your trading account. 2. Fear:  Traders become fearful of entering the market usually when they are new to trading and have not yet mastered an effective trading strategy.Fear can also arise in a trader after they hit a series of losing trades or after suffering a loss larger than what th...

NO TRADING PLANS: A trading plan is a strict set of rules, half of which a trader draws from their trading strategy and the other one from their money management strategy. The plan may be then complemented by as many more points as the trader sees fit. WHAT IS TRADING PLAN: Specific market conditions for entering a trade; The amount of money to risk in a trade; Specific market conditions to get out if you are wrong (stop-loss); Specific market conditions to get out if you are right (take-profit); Approximate time for the market to reach your target; Note down and record everything! Write this list down as postulates and have it front of you before, after, and during your trading. RISKING TOO MUCH ON ONE TRADE: Never take too much risk in one trade. Forex brokers are allowed a lot of freedom in terms of leveraging their trading account, while beginner Traders lag behind in money management discipline. A combination of these two leads to high risk, hazard trading. Always...

#1 ANALYTICAL STAGE Analyse the CHART. Look out the worthwhile OPPORTUNITY to take a trade Identify the LEVEL of entry with a good risk reward ratio #2 TRADING PLAN DEVELOPMENT Create a trading PLAN. A Buy or Sell ORDER will now be executed. Bring the TRADING PLAN into existance. Adhere to your trading principles. #3 TRADE ENTRY EXECUTE the trade. A high probabilty trade entry with the aim of achieving optimal profits with good risk to reward ratio. #4 TRADE MANAGEMENT MONITOR the trade. Absorb all the market information that is being presented in the chart. Minimize the risk and Maximize the profits. #5 EXIT THE TRADE Releasing the Profits and rolling in the pips. Closing the trade. #6 REFLECTIVE PROCESS Reflect the whole process. Reflect it stage by stage for maximum learning experience. Look out for area of improvement. Learn from your trade. Come Out of your losses in Forex Market/Stock Market/Comex ...

Oil prices eased slightly on Tue, 08-052018, a day after hitting 3-1/2 year highs, as investors braced for President Donald Trump’s decision on whether to withdraw the United States from the Iran nuclear deal, a move that could disrupt global oil supply. US Dollar is currency of international trade, so for all practical purpose all buy and sales on international level is defined in terms of USD. Also,  US is the biggest importer of crude  oil. So say when crude price go up, it means US will be shelling out more dollars to buy it, which means more dollars are going out of the country and hence the dollar  will weaken. US is also one of the biggest oil producer – so when oil price will go up, its own oil revenue will also go up – this impact might counter the fall in dollar a little but not significantly because it is a net importer. A hidden string ties together currencies and crude oil, with price actions in one venue forcing a symp...

Forex trading – or foreign exchange trading – is all about buying and selling currencies in pairs. For the buying and selling of currencies, you need to have information about how much the currencies in the pair are worth in terms of the other. This relationship is what defines a  currency pair . A currency pair quotes two currency abbreviations followed by the value of the base currency based on the currency counter. MAJOR BEST CURRENCY PAIR The US dollar is the preferred reference in most currency exchange transactions worldwide. It is the dominant reserve currency of the world. The following are not necessarily the best Forex pairs to trade, as they are the ones that have high liquidity and occupy the most foreign exchange transactions: EUR/USD (Euro – US dollar) USD/JPY (US dollar – Japanese yen) GBP/USD (British pound – US dollar) AUD/USD (Australian dollar – US dollar) USD/CHF (US dollar – Swiss franc) USD/CAD (US dollar – Canadian dollar) The valu...

Non farm payrolls in the US increased by 164 thousand in April of 2018, following an upwardly revised 135 thousand in March and well below market expectations of 192 thousand.  The most important payroll statistic that is analyzed from the report is the  non-farm payroll  data, which represents the total number of paid U.S. workers of any business, excluding general government employees, private  household employees , employees of  nonprofit  organizations that provide assistance to individuals, and farm employees. Non Farm Payrolls Indicator The Non Farm Payrolls indicator measures the net change in the number of people employed within the U.S. economy in jobs other than those which are farming or agriculture related. When the NFP data is rising, it means businesses within the United States are hiring more staff, usually in response to improved economic conditions and increased demand for their products or services either domestically or overseas...

What separates a long-term successful trader/investor from an unsuccessful one?  Here are 5 main differences between Successful and Unsuccessful Traders. Defined Strategies Unsuccessful Trader They have no defined trading strategy. They made a trading decision based on Gut-Feelings. Keep repeating the mistakes due to lack of discipline. Successful Trader They have an trading plan. They have well formulated trading strategy for every market condition. Each time analyse the Signal calls they have implemented. Focusing on the Money Unsuccessful Trader The unsuccessful trader focuses on the money, hoping he will make a certain amount on this or that trade so that he can make X amount of money, or buy his dream car. Successful Trader The successful trader knows that the market couldn’t care less about how much money he needs to make. He knows that focusing on the money may cause him to neglect his entry/exit rules so he focuses on the proce...