Sep 26 2010
There is nothing gloomier than to see the novice
Singapore FX traders loose their initial investments in currency trading. In this article we would like to discuss some popular trading mistakes and help the new traders muster the skills of a Forex trader.
The first mistake is an attempt to begin trading Forex from day-trading. That means trading within a day on short-term charts, mistakenly thinking that this way traders can make much more profit. In reality it is certainly a myth. Day trading is recommended to the professional traders only who have many years of experience in Forex trading. The reason is that on day trading a trader must make correct decisions immediately, not basing on the market analysis so much, but rather on the basis of his intuition and big trading experience. If you don’t have much trading experience, it is almost impossible to succeed on day trading. The novice traders are recommended to start their Forex trading career from technical and fundamental analysis on 24 hours time frame charts. Though it takes more time, this trading technique is less risky and will help you obtain a valuable trading experience.
The next and the most common mistake is trading against a trend. Half of the beginner traders on
Forex Singapore market loose their money for this reason. There is a rule on Forex market: trend is your friend. Don’t think that you are cleverer than the others. When there is a trend, you must trade with a crowd in order to make profit.
The third fault is too much trust to various indicators, automatically trading systems, popular analysts and guru of the financial markets. Notice that the decision about trading must be only yours. It is your money that you invest and trade with and if you loose due to the recommendations of a guru, alerts or other assistants mentioned above, none of them will take responsibility for your failor. Also, making the trading decisions based on your own analysis, you are gaining a valuable experience that will be very helpful in the future.
And finally, the fourth mistrake in Forex trading is the lack of an structured trading plan and your own trading strategy. At any time, disregarding of the market’s situation you should know what to do at the moment. In order to make your trading successful and less risky we suggest (especially to the beginners) make a diary where the main steps of your Forex trading are noted.
It is very important when finding the moment of opening a trading position follow the ratio of at least 2:1 of profit to losses. But in general the more positive trades you have, the better. Following all the rules described above will help you earn trading
Forex in Singapore or any other financial market.
Aug 13 2010
When trading in online market it is recommended to decide on a certain time frame of a Forex chart and trade according to it only. Experienced traders use the time frames of 4 hours, 24 hours or 1 week. There are certain benefits and disadvantages of the big time frames. The bigger is your time frame, the more money you have to put to your trading account because each trading position needs higher margin. But at the same time you have the chance to make higher profits. The market’s behavior is more balanced for bigger time frames but it may take you more time to find a good opportunity to open a trading position. In this article we would like to share a method of trading in 4 hours time frame using the candle stick graphs that can be found at all
Singapore brokers
Be prepared that trading with four hours candle stick charts requires much patience and time. It may take you much time to find a good chance to enter the market and also from 12 hours to 5 days to stay in the market. This technique is based on the trends that sometimes happen in the
Singapore Forex market. The goal is to open a trade in the beginning of the trend and close a trade in the end of the trend. Following this strategy a trader must analyze the market and his open trades every 4 hours after the last candle in the 4 hours graph is completed.
While analyzing the market it is recommended to check the prices for the certain currency pairs for 4-5 days back on a 4 hours candle stick chart in order to find out if there were some trends before or there is a situation for a potentially good downward or upward trend coming. The choice of opening or closing a trading position may be taken only every 4 hours when the last candle is completed and a new one has started.
If you see that the last three candles show that the price is going up, this is a good signal to open a buy position. If at least 2 last candles go down, this is a signal for a potential downward trend and you can place a sell position. In order to minimize possible losses you can use such orders as take profit and stop loss. You can place a take profit order after 120 pips in case if the prices between the opening and closing of the market did not go over 80 pips for the last five trading days. If the rates exceeded 80 pips for the last 5 days, you can set up the take profit order on 240 points.
We wish all traders profitable trading and invite them to share their experience of
Forex trading in Singapore.
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