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    • Month: March 2017

    Forex Trading on iPhone and Android Devices

    Taking the world with you is an understatement when it comes to Forex trading on an iPhone or Android device. These days, mobile trading is becoming so popular, like IMMFX, many brokerage firms are developing their own mobile trading platform, so that you can literally trade from anywhere in the entire world, at any time.

    In this article, we’ll see exactly how far mobile Forex trading has come, and whether or not you can rely on the new technology to place trades and update positions on the go.

    Forex Trading for iPhone

    Ever since Apple released the iPhone back in 2005 / 2006, millions of consumers worldwide have entrusted the device with their sanity. Things which were once only done on a computer have now become portable and completely mobile.

    For example, take a look at the following tasks which can now be done from anywhere:

    • Reading email and composing new messages.
    • Reading Word documents and creating Excel spread sheets.
    • Chatting to friends through messenger programs, in real time.
    • Checking your bank balance and transferring funds between accounts.

    Each of these tasks has been simplified thanks to the “apps” which are now created by third parties, and allowed to be installed on the iPhone.

    Forex trading on the iPhone is no different. Where you might once have had to sit at your computer for hours on end, staring at the screen and reviewing charts; the iPhone is now able to provide you with an alternative tool to trade.

    Specialty Forex platforms allow you to make trades, review positions, and make adjustments all from the comfort of your car, lounge suite, or friend’s house. If you want to get involved in mobile Forex trading, you can easily choose to trade with IMMFX broker since it has a dedicated iPhone trading platform as part of trading platforms.

    Forex Trading on Android Devices

    Much like Forex trading apps for the iPhone, Android has its own range of Forex trading platforms. Android is a development from Google, which was released much later than the iPhone from Apple. Despite this, development of trading programs specifically for Android has not been slow or missing.

    As one of the leading Forex brokers in the industry, IMMFX allows you to download special applications for your Android device, which allows to you trade from absolutely anywhere.

    iPhone trading is almost expected these days; however, Forex trading for Android devices is still a “bonus” in many cases. Learn more about IMMFX Mobile Trading.

    How to Make the Most of Forex Hedge?

    If you are an active trader, then hedging is an important derivative option that can be availed. Hedging gives you an option to control your future by taking an opposite or equal stand in order to book profits or prevent losses that may occur in future. The fundamentals of hedging remain the same, whether you exercise them in forex market or commodity market.

    The only cause for concern in the case of a Forex hedge is that you are dealing with currencies. Currency is undoubtedly one of the most volatile asset class right now. As a forex trader, it is important to ensure that while protecting yourself from the downfall of one currency, you do not end up exposing yourself to the pitfall of another. It is almost like a double-edged sword and hence, steps should be taken with caution.

    Take Steps with Care

    In the case of hedging, one needs to be extra cautious. The fact that you are buying and selling at the same time means that while on one hand, you are ensuring that you do not incur losses, you are also ensuring that if the market rises, you do not earn profit beyond a certain limit. This phenomenon is being caused, as you are setting a ceiling for your investments. So, under no circumstances can you earn more profits than the amount that you have already decided for yourself. Although, it is good in many ways the hitch comes with the fact that you have already curtailed the amount of profit that you can make out of this deal. Deciding the amount and number to buy is called Spread and the amount of profit that you will earn depends on your Spread type.

    In the case of Forex, trading is done in pairs. For example, you buy dollars against Yen and so on. The moment you are not comfortable with the pair you are holding, you can hedge them against another currency that you think is promising, like Euro. Hedging would indeed help you to keep your losses at bay and also give you more confidence to trade frequently and generate profit.

    However, if the above-mentioned steps are not taken properly, then you may end up in trouble. This is because of the simple fact that while curtailing your exposure in Yen market, you have ended up exposing yourself to the Euro market and so on. In short, it is a tricky situation that might go wrong unless you take calculated steps.

    Conclusion

    As a novice, you should try and stay away from the clutches of Forex hedging. As already mentioned, Forex hedging is a calculated move that should only be tried by the experienced and not novices who are trying to understand the market. Always ensure, that you consult your Forex broker before opting for hedging or you can also opt for the more easier options like call and put.

    Trading with Pivot Points in Forex Market

    Traders use pivot points to get in and out of a trade. Each day has an open, close, high and low that is used to create the Standard pivot point. Using this data from the previous day, traders calculate the potential points at which the trade may turn for the current day.

    Standard Pivot Points

    One of the most commonly used pivot points is the Standard Pivot Point. It can be used in a few ways depending upon the trader.

    1. Daily Pivot Points– This kind of pivot point are useful for a trader when he is swing trading. If his trade is going to be restricted to just a couple of trades per day, this will be useful. The trader can determine his entry and exit point depending upon the high point, low points and closing points on the previous day.
    2. 4-Hour Pivot Points – The 4-hour pivot point is used by intraday traders. They are calculated by using the data available for the previous 4 hours. It is for traders who trade frequently and need the data to know if they have to get out or in during the next four hours. As the pivot points are more, the number of exit and entry points is more too.
    3. Long Term Pivot Points– These pivot points give the trader an idea of where the main support levels and resistance levels must be placed. There are many traders using pivot points and each of them gets the same results. When there are so many traders getting the same support level and resistance level, then the points will hold.

    Other Pivot Points

    Apart from these, there are other technical pivot points such as Fibonacci pivot points, Woodie’s Pivot points, Camarilla Pivot points and DeMark’s Pivot points. The strategy used depends upon the trader and the pivot point with which he is comfortable. They are all at par and can be interchangeably used. Like the Standard pivot points, the factors taken into consideration are the support levels and the resistance levels.

    Many traders believe that the best way to trade is in mid-trend. It is further believed that when there is a pivot point, you must wait for a new trend to start. But Forex trading is all about what works for you and what you are comfortable with. These pivot point in currency trading are just guidelines to help you pick your way through trends.

    Simplifying Forex Trading

    If you allow it, currency trading can be simple. A new trader complicates things more than is essential and in the end, he loses his confidence to trade and makes bad decisions. This leads, and rightly, to the feeling that he does not know anything. As a result, he is on the lookout for tips to trade. Though a beginner will find difficulty in trading, he must realize that the people from whom he is asking for tips learnt through their mistakes and converted their bad decisions to knowledge.

    Technical and Fundamental Analysis

    Learning Technical and fundamental analysis is the first step that you must take to learn currency trading. It is this mathematical prediction that draws the line between forex trading and gambling.

    Technical analysis follows the belief “The trend is your friend”. The followers of this school of thought believe that a trend does not change unless it is given a reason to do so. There has to be a reason like a news announcement or maybe an event that affects the financial world. The trader has to read charts and then determine the direction of the overall trend.

    Fundamental analysis, on the other hand, is based on news and major events. It is believed that no trend lasts forever. It comes to a stop sooner or later.

    To succeed, the Forex trader must keep an eye on the charts as well as the news.

    As a trader, you have to learn both these kinds of analysis if he wants to correctly predict the trend and earn profits. Though charts are an essential part of predicting the trends, you can never predict the overall trend until you read them in combination with fundamental analysis.

    [ Learn: Trading Approach; Fundamental or Technical? ]

    System Hopping

    All good trading decisions are a result of lessons learnt from experience.

    When the trader is not confident about his skills, he begins to switch from one system to another and keeps changing indicators without understanding how either works. All he knows is that he has to buy a currency when it crosses a mark. The calculation involved in this is beyond his comprehension. When he understands this theory, the calculation begins to make sense.

    Another thing that leads to system hopping is the trader’s fear of losing money. All traders are in the market to earn profits. They forget to enjoy the game and are always looking for wins.

    Beginners know that they cannot earn profits and there will be losses too. But though they know this intellectually, they are not equipped to accept it emotionally. As a result, this fear of loss leads to add one indicator after another to their system, so that they are on top of the market. They can now read the indicators and where they are pointing but are unable to see the price trend.

    When you pile indicators, you will be more confused because each indicator is telling you to do something different.

    This is because, while an M.A.C.D indicator may indicate that selling is the right thing to do, other indicators like ADX may indicate that it is a good time to buy. This becomes complicated and you will only become more confused and as a result, make bad decisions.

    [ Learn: Forex indicators – a brief overview ]

    Read the Charts

    This is where Technical Analysis comes in. Follow the charts and with the help of technical and fundamental analysis, see where the overall trend is heading. Is it going up or down? When the trend is moving from the upper hand left corner to the lower right side, then the trend is moving down and vice versa. Figure out the trend and focus on it. That is the only way to avoid a lot of complication and trouble.

    When you learn to read the charts and figure out the direction of prices, you will look back on your trading career one day and wish that you had sold the USD/EUR while you had time.

    Taking a look at the weekly chart will help you determine the direction of the trend.

    Some traders only check the overall trend and refuse to take any risks by going in any other direction. These are the safe players. They need patience but in the end, their patience pays off and by simplifying their trade, they are able to rest easy.

    Conclusion

    Remember that Forex trading is not gambling. Gambling is all about luck, whereas Forex trading is about being able to read charts and predict trends by using logic. Forex experts are rarely wrong when they make predictions. Rather than asking for tips and depending upon the experience of others, it is best to learn how the indicators and system work. Make trading simple by following the trends and move on when you find something that you do not understand.

    Only 5% Of Foreign Exchange Traders Actually Make Money

    For decades, people have known that if they put their money safely into the stock market, they can walk away with a sweet return in about 10 years or so – pretty much guaranteed. The reason that people think this is because it is true. On average, even with stock market crashes and ups and downs in the markets and the economy, stock market investors come out better off if they do diversify their portfolios and invest for the long term.

    The same cannot be said for the foreign-exchange markets. In fact, as you saw from the title of this article, only 5% of foreign-exchange traders actually make money on a regular basis – at levels enabling them to sustain an average lifestyle, without any other sources of income.

    If you’re looking for more statistics, a further 15% of traders end up losing money that they cannot afford to lose and hence are negatively affected at the end of the day because of the movements in foreign exchange.

    There is no getting away from the fact that foreign-exchange investments can be incredibly lucrative if you get it right. Due to the fact that leverage and margin requirements for Forex trading are some of the most lenient that you can find in any market, you are able to turn a very small amount of money into a huge lump-sum, if you choose the right direction.

    Unfortunately, whilst the decision is 50-50, it is often very difficult to get it right and stick with it.

    Early Profits, Late Losses

    One of the biggest mistakes that people make in the foreign-exchange industry is that they take their profits too early, and allow their losses to run for too long.

    Currencies are known to trend wildly for long periods of time. They can trick investors, and are able to easily mislead a novice investor who is waiting for the market to turn. There are some well-documented stories of people who have been severely burnt by trading foreign-exchange markets.

    Conclusion

    If there is one thing that you should take away from this article with you, it is that fear and greed have no place in the foreign-exchange market. Trading needs to be emotionless and based on facts only.

    How to be a successful forex trader

    There are many different markets that can be traded for a profit. The largest of any of them is clearly the foreign exchange, also known as FOREX. This market trades over FIVE billion dollars each day, forex traders can learn to throw a part of it. Trading takes place constantly, except for a few hours on the weekend, when all markets are closed.

    Many people try Forex trading but not everyone becomes a Forex Trading Mogul obtaining massive profits. Some people can not get the information and education they need to succeed or do not receive the right people in place to help them Forex systems.

    These are the things that separate the best forex traders who give at a loss.

    The right attitude

    It takes the long experience to become a Forex trader really outstanding. This is something that can only be achieved if you approach currency with the right attitude from the start. You need to be dedicated. At first, in learning how Forex works and subsequently how you go about doing successful operations. If you want to be able to make more profitable trades will have to be patient and follow a disciplined approach. Too many people make decisions Forex trading rash, especially if they think they are on a roll.

    Make it a habit of studying the financial news so you know what is happening in the currency markets worldwide. Keep informed can give you an advantage, but many beginners neglect this aspect of currency trading.

    The right software

    While there are some Forex robots that are inefficient and do not keep up with the market development, most Forex software work as long as the operator controls software properly, establishing controls to match the market.

    Derived Forex automated Forex trading is so self-adaptive software that uses advanced mathematical algorithms, network protection features profit and money management strategies. It requires constant vigilance and can be used in a demo or live account. It is suitable for both beginners and experienced operators.

    By using the foreign exchange derivative software, you can remove the emotional aspect that often affects business decisions.

    Choosing a Forex Broker legitimate

    One of the most important decisions you will make as a forex trader on choosing your Forex broker. The currency market is a highly volatile market host to many subtle complexities and beginning trader can become so overwhelmed that they neglect to research one of the most important aspects of their trade. With hundreds of forex brokers in existence, it can be difficult to find legitimate Forex broker.

    To begin to compare Forex brokers, knowing how long they have been in business and how you respond to your customer service is. IMMFX, as your reliable trading platform, has been offering its services since 2014 with no complaints and enabling hundreds of traders earning easy profits from the industry.

    Conclusion

    Many of the world’s richest people made their fortunes to accurately predict the movement of the currency markets worldwide. If the stock market is in a bull market cycle or a cycle of falling market, there is always a raging bull market somewhere in the world of Forex trading. Finding these great opportunities is what Forex trading is, and with the right tool that you can add your own fortune of the biggest names in currency trading and prediction.

    Using Fibonacci Ratios in Forex Trading

    The Fibonacci sequence was first discovered in the 13th century and is found throughout nature.  Under the Fibonacci sequence, the sum of two numbers in a sequence will equal the next number in the sequence.  For example:

    1, 1, 2, 3, 5, 8, 13, 21, etc.

    When it comes to Forex trading, the Fibonacci sequence is not important but rather the ratio between the numbers in the sequence.  The ratios of numbers in the Fibonacci sequence are .236, .5, .382 and .618. Note that, after the first few numbers in the sequence, the ratio is always 0.618 or, inversely 1.618.  This ratio can be found all throughout nature.  For example, the ratio of female bees to male bees in a hive will be 1.618!  You can also find this ratio in your bodily proportions, in sunflowers, and seashells.  Many Forex traders have successfully used Fibonacci ratios for trading.

    These ratios can be used for predicting the amount of time before corrections in the market occur. Buyers can use this information for deciding when to buy and sell during trends.

    In Forex trading, the ratios are expressed as percentages, such as 23.6%.  It is also possible to use multiples of a percentage, such as 236%.  The Fibonacci ratios are useful in calculating retracement in Forex trading.  However, it must be noted that Fibonacci ratios are only really useful when a significant jump in the market has occurred.

    Drawing Fibonacci Levels on a Forex Chart

    When using Fibonacci ratios for calculating retracement in Forex trading, you will need to locate the highs and lows on the chart for a given period of time, such as a downward swing over 4 hours.  Draw a line from the highest point in a swing to the low point in the swing. Note that you can draw the line for one specific swing or for the entire duration of the trend.

    Then, you will mark the highest point as 100%. Then, 4 other points are marked as highs at 61.8%, 50%, 38.2% and 0%.  Most Forex software programs will automatically draw the lines at these percentages. If not, calculate the number of pips between the high and low.  For example, if the pip difference between the high and low is 200, then the 50% line would occur at 100 pips below the starting point.

    Using Fibonacci Ratios to Buy or Sell

    The percentage levels you marked (61.8%, 50%, and 38.2%) can be used to determine when to buy and sell currency pairs on the foreign currency exchange market. When minimizing loss during a downward wave, 50% is usually used as the point where you should sell the currency.  Ideally, you should buy currencies at the lowest level because they will swing upwards and you will profit.  Then, when the price soars, you can sell for a profit.

    Are Managed Forex Accounts worth the Risk?

    Wherever there is money there is someone who is looking to capitalize on the gains to be had from trading that cash. The Forex markets are an obvious choice in this respect. With the FX markets being so easily accessible to retail investors these days, we wanted to find out whether or not those who are looking to make money from making money are actually worth the time and effort.

    We are of course talking about managed Forex accounts. These are accounts which you set up and place your capital in to and then let someone else take over from there.

    A “professional” trader is able to place trades on your behalf through your account, and in doing so take a commission of any profits which might be made in that month. Essentially, they are not using any of their own money to trade, but are instead using your money mixed with their ideas in order to hopefully generate a profit for the two of you.

    The Positives of Managed Forex Accounts

    Obviously, if all goes to plan, having a managed Forex account can be a great thing. The profits can be significant, and the ease of trading can be unsurpassed. Here are some of the positive things which immediately shot to mind when we were thinking about managed Forex Accounts:

    • You don’t need to learn how to trade FX yourself to participate
    • You have full access to deposit and withdraw funds at any time and the account manager has no ability to do this
    • A small performance fee is often affordable (if you choose a managed account with a low percentage commission)
    • Time saving and potentially very profitable in the long run

    Each of these can be huge benefits which might be missing from individual Forex trading that you could be doing yourself.

    However, with all good things come downsides, and before we continue – it would pay to look at these right now.

    Downsides to Managed Forex Accounts

    Unfortunately, if you choose the wrong managed Forex account, there can be a few things which go wrong. Firstly, and possibly the most damaging thing that could happen is that you choose an unreliable managed FX fund.

    If you do this, chances are that the trader has about as much experience in the FX markets as a novice. Hence, when they do eventually execute trades on your account, the likelihood of those trades making losses is high. How can someone expect to be able to trade other people’s money when they are unable to make a profit from trading their own?

    Conclusion

    You need to look in to this very carefully. Obviously, there are a vast number of Forex managed funds out there to choose from. Yes, they are worth the Try while if you have an extra $1000 to $2000 to invest and which you can afford to lose at someone else’s mercy. However, the key is to do your homework and choose the best possible fund at any one time.