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7 Forex Trading Tips and Tricks

forex trading

These are the 7 best trading tips that will improve your trading results.

1. Enter your trades near market structure

This is how not to do it. Look at the first picture, and let’s say, for example, the red one here is your stop loss, the green one is your entry point, and the blue one is your, so-called take profit level.

Stop loss, entry point and profit level

Traders will see this chart and say that the price is coming down, lower and lower. Let me, hop on board and before you know, I miss the move. So they go long in the green area, half their stop-loss at the red level, which is a distance away from the highs and then they target at the nearest swing low. That is a very common thing that you know traders would do.

But when you look at the second picture from a risk to reward perspective, you can see there you’re in fact risking up a dollar to make like 40 cents.

risk to reward perspective

If you want to improve your risk to reward, you will need to trade near the market, you can see that in the third picture.

new enter

The only difference is now you’re entering at the much favorable trade location, a market structure in this case near resistance. You won’t necessarily go short, because you might want to wait for a reversal candlestick pattern like a shooting star a bearish engulfing pattern before you kosher. So perhaps the price may come up higher and then get smacked down lower and close lower.

Now look at the fourth picture and here you can see that from a risk to reward standpoint, let’s say you know it closes lower, your stop-loss is still at this level. What happens now is that you’re not going to use a sell limit order. You are letting the price go up and then come down and close lower somewhere here.

New risk to reward

You can see where is your new entry, where is your stop-loss, your risk and your reward is now from your entry point to your target profit. Now you are risking a dollar to make a dollar fifty or even two dollars. Your risk to reward has been improved just because you are trading near market structures.

 

2. Breakouts with buildup

The second tip is that you want to trade breakouts with buildup. So what is buildup? The buildup is a tight consolidation where the range of the candles gets smaller and smaller. So you can see that on the first picture blue box, and that is what we call a buildup.

breakouts with buildup

Price and resistance it usually would have selling pressure. Traders might want to consider shorting a resistance in your market structure. Now, what happens is that after 10 or 15 candles, the price is still hovering at resistance. And that is telling you that the selling pressure it’s unable to push price lower. All of that is happening because there are traders that are willing to buy these higher prices. And that is why the price can’t go down, so this is a sign of strength.

Because you know the price is still hovering a resistance, buyers are willing to buy these higher prices and willing to buy in front of resistance because they have the expectation that the price will break out. Whenever you see the price forming a build-up like on the third picture, that is a (see on the picture)that is also a sign of strength at the market is likely to break up higher.

3. Higher lows = sign of strength

This is a sign of strength that a market is likely to breakout higher. Another variation of this is what we call higher lows into resistance.
This is a sign of strength, as well. On the first picture, you can see the higher lows into resistance.

Sign of strengthThe concept is somewhat similar to the buildup, but this time ’round, it’s telling you that buyers are willing to buy at this higher price instead. It’s why you see higher lows into resistance.

4. The first pullback

Often, the price can break out and if it breaks out you might have missed the move. if you didn’t catch the breakout, don’t worry, because the price will give you a chance to re-enter, to catch the trend. In this case, you can use the first pullback technique that I am about to share with you. On the first picture you can see that the price break out, so those of you who missed the move, the market offered you an opportunity to get long by forming a bull flat pattern so what it can do is to treat the first pullback.

Breakout with pullback

 

The price does break above the swing high and you can get you low and possibly have your stop-loss just a distance away from low. Maybe right above, away from swing low. There is always an opportunity.

5. Set your stop loss away from the market structure

For example, the market is in a range like you can see on the first picture and traders go low and price hits up higher.

loss away from market structure You can see that their stop-loss is below the level of support. And what happens? Well, the market could just as well come down lower, trigger their stop loss, and then continue higher. So this is why you don’t want to put your stop-loss just below support or just above resistance. What you need to do is to set your stop-loss a distance away from the market structure.

How do you do that? It’s very simple, On the second picture the market is somewhere in a range, traders can see that it is an area of support price tested four times.

loss away from market structure

There is a candle that has pretty much taken out some of the lows. This one candle has pretty much wiped up all the stop-loss. This is why you want to set your stop-loss a distance away from the market structure. How do you do this?

It is very simple, firstly you can try to see with your eyes. By doing this, you would set your stop-loss, like on the third picture.loss away from market structure

Alternatively, you can use an indicator like the average true range that measures the volatility of the market pull out this indicator and it will give you a value called X, then you will need to subtract that value from the value of the low. If the value is the market price level and support is a hundred dollars and let’s say X is ten dollars, you put your support at ninety bucks. Pretty simple, and that is how you protect yourself from getting stopped hunted.

6. The False Break

The sixth tip is entry technique, to profit from traders who low breakout, and then they got trapped. This is what we call the false break set-up.
On the first picture is an area of resistance and market broke out of resistance on this candle.

the false break set-up

The market has not closed yet through the day, the sellers push price lower and finally, it’s closed, like on the third picture. The psychology of the markets is that now breakout traders are trapped. And if you think about this, where did the breakout traders put their stop-loss? Chances are they put stop-loss may be bellow, like on the second picture, or even lower for those of them who are really conservative.

the false break set-up

Now you can expect that If the market continues lower, It’s going to hit this stop others, this sell stop others which is the stop-loss orders of the breakout traders. And it will induce further selling pressure.

So this is why you can expect the market to continue lower. It’s not guaranteed, but it’s a good chance that it will continue lower after this false brick price pattern. We can use this false break as an entry trigger to get on bought trends. And this is a psychology behind the false break setup.

7. Use limit order for better R:R

Look at the first picture, you can see a chart of Euro Yen for our timeframe.

Use limit order

Okay, so, this is a very typical set-up that traders will trade prices at an area of support. And then, this bullish reversal candle is so bullish? You suddenly just hit a massive reversal, and close near this highs over here.

If you follow the techniques that I will share with you, you do want to set your stop-loss just below the level of support. Your Stop-loss is going to be your entry.

 

You can see that your risk on this potential is very large, this is the distance of your stop-loss. If you don’t want to trade it and I can understand, it’s because If you have a larger stop-loss you have to reduce your position size but still have proper risk management. You might not want to take the trade because the stop-loss is very large so what you can do is to use a limit order to have a title stop-loss and in turn, you can increase your position size on this trade.

Let’s say you decide to use a limb in order and you put it say a limit order somewhere you know a Fibonacci level maybe justice from this swing high and you identify the 50% level mark just that is where you will enter the treat your new entry is now over here like on the second picture.

Use limit order

Now you what you will notice that your stop-loss this distance of it has been reduced right now is that is the distance of your stop-loss.

Alright, and from a risk to reward standpoint you have improved on it right instead of you know by near the high it’s what you can do is use a limit order get a better price level thereby you are improving your risk to reward on the tree now the downside.

limit order for risk to reward

In this approach, sometimes the market may not come to the level that you’re looking at, especially if you set it at a very low level there’s a low probability of it actually coming to that level. You may not get filled and you might miss the move so this is kind of like a balance between where you think the market could possibly go to and then having a better risk to reward on the trade.

If you ask me where do you usually set a limit order, a rough guideline is this that you can see in the fifth picture. And If you want to put it near the market structure where the previous market structure is, in this case, you can see on the sixth picture where was the previous market structure.

limit order for risk to reward

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Strategies

FXtok.com Listen to real-time prices

The Trend Will Continue Longer Than You Think

In today’s world, stock market is indeed one of the greatest ways to multiply your  wealth, but it takes commitment, patience, and smart decisions to succeed as a  stocks day trader. So, forex and crypto enthusiasts should look for ways to not  make it any riskier. One such way is to keep trac k of the live exchange rates all  the time to make your investments safer. Well, this is the exact reason why FXtok  was invented in the first place. This app allows you to listen to the most variable  parts of the real-time forex rates and crypto prices anytime, anywhere. 

The forex market is open 24 hours a day, 7 days a week – which naturally means  there will be continuous fluctuations in the market rates. So in order to be a  successful forex trader, it is essential for you to keep yourself updated about the  market, which seems like a difficult job in this busy and constantly changing  world. But, the FXtok app is here to save you the trouble; you don’t need to worry  because all the forex market fluctuations will be easily available to listen via this  app. You won’t need to look up live prices on the internet or Metatrader and to  open charts all day.  

Channels In Forex Trading

The FXtok app is available for both Apple and Android users and lets you track 70  financial instruments (indices, forex, crypto, commodities). It contains all the top  global currencies including, but not limited to: EURUSD, GBPUSD, NZDUSD,  USDJPY, USDCAD, and AUDUSD. Similarly, live cryptocurrency rates allow listening  to live Bitcoin price, Ethereum price, DASH, and many more. In commodities, you  can listen to live Oil rates, as well as Gold and Silver. 

FXtok aims to have a global presence so it is available in multiple languages  namely English, Español, Português, Deutsch, Français, 日本の, 한국의, हिन्दी , 中 國, Pусский, ,العربية and Indonesian. In case you don’t want to listen to the rates,  you can set a specific duration of time to read live exchange rates about any  cryptocurrency or forex.

By this time you will be thinking that this is the easiest way to keep track of the  lives rates. Well, it gets better! The quick search feature of the forex rates app lets  you quickly find what you want to hear. You can set any particular currency,  commodity, forex, or indices to get updates. This feature helps to sort out and get  details about your desired instrument. 

And the best news yet: FXtok app is available for trial for free. 

For any further information, you can visit: https://fxtok.com/

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Strategies

Automated Trading Software

How to Find a Trading Job

The complexity and amount of data in financial markets means
that we are inevitably turning to computers to do a better job. Automated
trading, isn’t new. It has been around for several decades.
What is new is the rapid evolution of these algorithms as well as their
widespread use. Recent studies estimate that over 80% of all trading in the forex
market is software driven.

What they do

First it helps to understand what automated trading is and
what it isn’t. Many of us already use some form of algorithms in trading. These
are the chart studies otherwise known as indicators that most of us use on
popular platforms like TradingView.

These types of charting tools use software to process
underlying price information, sometimes aggregating it with other data like
volumes, to create a useful signal for the trader. That signal might be an
overbought flag which suggests a selling opportunity or an oversold flag that
could represent a buying opportunity.

Some of the most frequently used chart studies include the
moving average lines, stochastic oscillators, relative strength index (RSI), Fibonacci,
Ichimoku and MACD. There are also many variants of these.

These are the most basic types of trading algorithm. Not
surprisingly, computerized trading gets a lot more advanced than this.

A basic trading robot reads the outputs of indicators and
other data feeds and generates automatic buy or sell orders that are entered
into the market via a connection to the broker. This takes the evolution of the
indicator one step further.

A trading robot does not need a human to operate at all. It
can run as an automaton, just obeying the trading rules it’s programmed with.

More advanced trading bots take this a stage further. These
may use advanced pattern matching techniques and more specific rules that
can adapt better to changing markets. Some even aggregate information from different
sources like news feeds, indicator sets, and from multiple markets to improve
their accuracy.

forex trading software

Advantages and disadvantages of automation

Those who intend to use trading software should consider the
pros and cons of each approach. They also should understand that any kind
of trading involves the risk of financial loss.

Pros

  • Trading software is non-emotional
  • It will obey trading rules and money management accurately
  • It can be backtested on historical price charts
  • It is hands-off just requiring monitoring
  • It won’t get distracted or deviate from the strategy

There are drawbacks to software as well.

Cons

  • Trading software can be expensive to develop and maintain
  • It needs dedicated computer hardware
  • It can be unpredictable
  • The code can contain bugs

Solutions

So what are the solutions if you want to go ahead and use
trading software? There are a number of off-the shelf packages that are advertised
on websites like Metaquotes.

Their marketplace lists hundreds of trading expert advisors
and indicators. These tools can be created by anyone and sold or rented for a certain
fee.

The source code is locked so you will not know how the
system works besides the general description that the seller gives you on their
listing page. Because this is an open
market, with anyone being able to sell, the quality of these systems does vary somewhat.
The better-rated tools can be expensive.

For those who are already skilled in software development,
there is always the possibility to create your own system. Most trading
platforms have their own scripting language that allows you to programmatically
interact with price data and automate account functions like placing orders.

For non-programmers, there are platforms like Tradoso. This platform has a graphical tool
that lets you create an automated strategy, bypassing the coding stage altogether.
You can use indicators as building blocks and pull various inputs and feeds
together. It lets you backtest your system so that it can be refined and
improved upon.

Risks

All trading carries risk. Automated trading is no different. An automated agent is only as good as the rules it’s programmed with. That’s why it is important to know the rules
that your system is following, and the range of possible outcomes.

Trading with a black box piece of software will carry high risk because you can never be certain what rules that system is following. Creating your own system is the only way around this.

In this way, tools like Tradoso and others that automate the whole development process are likely to become more prevalent in the future.

While coding will always be important, the sophistication of algorithms out there makes it increasingly hard for the part-time-coder
to compete on the same level.

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Strategies

Forex Scams – How to Avoid Them

Forex trading

Scammers try to imitate the approach of legitimate investment firms and sales representatives. Thus, the fact that someone can contact you in a specific way – by phone, mail, email or even referral should not in themselves be seen as an indication that the investment is or is not shady. Many reputable companies use exactly the same methods to identify individuals who may be interested in their investment products and services in an effective and economical manner. Keeping in mind that “investigating before you invest” is good advice regardless of how to contact you, Forex Scams are here to help you in this regard… there are many ways that scammers use to scam but we will tell you how they do that, so you can be aware of 

Telephone boiler room telephones remains a favorite way for scammers and their sales squads to quickly communicate with large numbers of potential investors. Even if a scammer has to make 100 or 200 phone calls to find a mooch (one of the terms scammers use for their victims), they believe that the opportunity to save thousands of dollars from someone’s savings is still a good pay for the time and cost involved. 

Mail Some fraudulent investment deal sellers buy mailing lists in good faith – names and addresses of people who, for example, subscribe to a particular investment-related publication, who have responded to previous direct mail offers or who have other features scammers look for. In the hope of avoiding notification by postal authorities, mail order scammers cannot make a direct or immediate launch for their money. Rather, they often seek to entice you to write or phone for more information. Then comes a call from the seller or the person closing the deal. Some may call even if they did not reply to the email. 

The Rising Popularity of Binary Options in Nigeria

Forex Scams on The Internet 

Internet access has increased dramatically in recent years, and consumers have become more comfortable doing business. (Shopping, banking, or investing) online, but crooks are aware of the potential of cyberspace. The same scams that are conducted by mail or phone can be found on the internet and new technology creates new ways to commit crimes against consumers. 

Advertisement Advertisements in newspapers or magazines may offer profitable opportunities. (Or at least with implications) that are more interesting than general investments Once you have taken the victim, the scammers will try to “hang up”. Although investors know that the regulatory agencies regularly check advertisements in major publications, there are some who use famous publications. Said in the hope that it could be hit and run before the other detectives appeared. Advertisements in the narrowly spreading print media, they think regulators may be less likely to see. 

Referrals 

One of the oldest plans involves paying fast, big profits to initial investors. (Indeed, from their own investments or those of other people) knowing that they tend to recommend investments to their friends and these friends will tell their friends soon. Scammers do not want to find victims. New ones anymore They will meet him. 

The “Reputable” Business 

Some scammers go to the first floor. Take profit from scams. Previously, they rented a luxurious office, hired an interior decorator and professional receptionist, sounding and opening things that were similar. (But not the truth) of a reputable investment company, You may have to call to make an appointment and when you don’t have to wait. (Which is intended to make you more enthusiastic). The success of this type of scam depends on how long he can prevent his victims from knowing that they have been cheated. Investors are confident that their big profits will be reinvested to receive even greater profits. Such swindlers may join local civic groups, participate in charities, and generally play stable citizenship. There are some best forex brokers in the market, which forex scams will let you know about that, stay tuned with us to check it before investing your hard money into them. 

forex quotes

Techniques for Using Forex Trading Scammers 

Their techniques vary according to how they communicate. However, what they have in common is their ability to persuade. The skills that make them successful are the same skills that help salespeople succeed. But con artists have an advantage in their decisions: they don’t have to fulfill their promises. In the absence of this responsibility, they do not hesitate to make any promises that will persuade you to divide your money. Here are some techniques to figure out the forex scam in the market, please see below: 

Expectation of Large Profits 

The money flying through the air, the profits that con artists speak of, are big enough to make you interested and eager to invest. But not too big to make you believe it Or he might mention the profit numbers he thinks you will consider credible, and then in further temptations suggest that the actual profit is even greater. Of course, the latter numbers are something that he hopes you will focus on. In general, if an investment proposal sounds too good to be true, it is possible. 

Low risk Some people are clear that it suggests that there is no risk – investment is a sure-fire source. Clearly, the last thing a scam wants you to think of is the possibility of wasting money. (If you ask how you can be sure that your money is safe, you can trust that the answer is trustworthy. He also believes that you believe what you want to believe) to make him confident. Con artists may admit that there may be a risk – then reassure you that you will definitely get the least profit. Con men may become impatient or aggressive if they have questions about the risk – perhaps suggesting they have. Better things to do waste time with people who lack courage and farsightedness in making money! With this, he hopes that you will not bring this story back. 

Urgency 

There are generally interesting reasons why it’s necessary for you to invest now. It may be because the investment opportunity can be “offered only to a limited number of people” or because the delay in investment can mean missing a big profit (after all, when the information they have told you becomes generally known, the price will Higher, right? Urgent is important for con artists. He wants your money as quickly as possible, with the least effort on his part, and he doesn’t want you to have time to think about it, talk to someone who may suggest you to wonder or check out his or her proposal. With regulatory agencies. In addition, he may not plan to stay in the city for very long. 

Confidence 

The scam is confident in the money you make, so you are confident enough to release your savings. Their message is that they are doing your favorite things by offering investment opportunities. Con artists may intimidate (Happily or something else) to end the conversation by suggesting that if you don’t really care, there are many others that will When you protest that you are interested, he will keep your savings in his pocket. Even if you can’t see a man the way he speaks But most people are determined, clear, and determined people who will control the conversation. The more you talk, the less likely you are to ask questions.

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