FOREX UNIVERSITY

what are candlesticks?

2008-04-28T02:10:00.000-07:00

Back in the day when Godzilla was still a cute little lizard, the Japanese created their own old school version of technical analysis to trade rice. A westerner by the name of Steve Nison “discovered” this secret technique on how to read charts from a fellow Japanese broker and Japanese candlesticks lived happily ever after. Steve researched, studied, lived, breathed, ate candlesticks, began writing about it and slowly grew in popularity in 90s. To make a long story short, without Steve Nison, candle charts might have remained a buried secret. Steve Nison is Mr. Candlestick.Okay so what the heck are candlesticks?The best way to explain is by using a picture:

Candlesticks are formed using the open, high, low and close.
If the close is above the open, then a hollow candlestick (usually displayed as white) is drawn.
If the close is below the open, then a filled candlestick (usually displayed as black) is drawn.
The hollow or filled section of the candlestick is called the “real body” or body.
The thin lines poking above and below the body display the high/low range and are called shadows.

The top of the upper shadow is the “high”.
The bottom of the lower shadow is the “low

Download these ebooks for free

2008-04-09T04:42:00.000-07:00

Forex Books
You can download free Forex e-books from my site. The information in these Forex e-books will help you develop your trading skills, money management abilities and the emotional self-control.
Almost all Forex e-books are in .pdf format. You'll need Adobe Acrobat Reader to open these e-books. Some of the e-books (those that are in parts) are zipped.

Since currently there are more than 80 Forex books in my collection, they are divided into five different section. Each section is dedicated to its own topic and features the download links to e-books as well as the little description of every book.

If you are the copyright owner of any of these e-books and don't want me to share them, please contact me at benadconsults@gmail.com

Forex Books for Beginners
Books about Forex Market in General
Forex Books about Trading Psychology
Money Management Forex Books
Books about Forex Strategy
Books for Advanced Forex Traders

Forex brokers

2008-04-04T03:17:00.000-07:00

brokers are companies online who trade in forex and offer their trading platforms to individual and companies who wish to join the forex market.they teach you forex through their demo account in which they offer you money to trade with and learn the ropes.they also offer books to help a newcomer learn all about forex.they also offer leverages for trading in forex.some recommended forex brokers i know include

http://marketiva.com/

http://fxcm.com/

http://www.northfinance.com/

http://forexclub.com/

http://fxsol.com/http://moneyforex.com/

try these forex brokers out and download their currency trading platforms for free

common mistakes to avoid in forex trading

2008-04-04T03:12:00.000-07:00

Forex trading has become very popular in Nigeria and has come to stay whether some acknowledge it or not.people are turning to it daily because of the immense opportunities that it offers and so many people have successfully become their own boss through forex trading.however,not everyone is succeeding in the market,quite a number of people,especially Nigerians are making loss in the market,thus giving credence to the Pareto's principle which states that 80 percent of people in the world don’t succeed while the remaining 20 percent do.

There are so many reasons why people fail in forex trading,but basically I will focus on the common mistakes people make which is often repeated by many to their own detriment.these are the basic reasons why people lose their money in the forex market

#1. GET RICH QUICK MENTALITY

there are adverts awash the Internet and even here in Nigeria promising people millions in the forex market,they are promised $500-$1000 daily,hence the growing mad rush into the market.it is very easy to trade in forex,but difficult to trade well.opening a forex account with www.maketiva.com can take as little as 24 hours and you can start trading.so many people open a trading account,fund it and start trading without knowing exactly what they are doing.most Nigerians approach the market with a voodoo bank mentality which promises them huge returns.you must develop the right mentality of patience and discipline to succeed in the forex market.

#2. IMPROPER EDUCATION

As I wrote earlier,people open trading accounts without been properly educated and equipped with accurate trading techniques and the intricacies involved in the forex market.a good course of study on the currency pairs and how to use them to your own advantage is a must before you start any live trading.you must be educated on the terminologies and trading patterns and techniques involved for at least six months before you even think of opening a broker account or you are bound to loose a lot of money.

#3 TRADING FOR THE WRONG REASONS

every business has its gains and risks,yes,there is a high feeling associated with making a huge profit from ones trade.however,forex trading is not a betting or gambling program,you should not trade just for the fun of it,a lot of discipline is involved in waiting for the correct trade to come along.don’t start forex trading because you think you can fold your arms and watch money roll into your account,trading demands discipline,hard work and above all patience.spend time trading with a demo account,it is very important.

#4 NOT USING A STOP LOSS

you must have a clear exit strategy before entering a trade.be a disciplined trader,decide how many pips you are looking for and set your stop loss so that you are automatically triggered out of the trade when that many pips are lost

#5 MISUSE 0F STRATEGY

new traders often make the mistake of jumping from one strategy to another without creating a peculiar and unique trading strategy peculiar to their level of information of forex trading.it helps a lot to develop your own personal trading strategy,it pays a lot to avoid these above mentioned ,it is possible to earn good money from forex trading.for more info visit http://www.forexclub.com/

10 hot tips for forex traders

2008-04-04T03:06:00.000-07:00

Traders have developed lots of rules over the years in an attempt to refine the way they make trading decisions. So it’s not hard to come up with a list of 10 trading rules that can be part of a trading plan. Some are generic and general and not exclusive to any particular trader or trading approach. Others can be very precise as traders tweak rules into their trading system. The rules below have been selected for their broad appeal to many types of traders. They are presented in no particular order of importance.

1. Don’t trade markets about which you know very little.This is not to imply that you have to be a fundamental expert on every market you wish to trade. However, you should know about what fundamentals are impacting, or could impact, a market you are contemplating trading. For example, a person who has only traded grains would not want to jump right into a Treasury Bond futures trade without first doing a bit of homework on how the bond market trades – price increments (dollar amount per tick), trading hours, on what exchange the market trades, etc. A trader could pick up a Wall Street Journal and read the “Credit Markets” section for a week or so to become familiar with fundamental factors that influence the bond market. Also, consider this: Most traders enjoy the process of trading. If they did not, they would likely just hand their money over to a “fund manager” and give the manager discretionary control over their money. Learning and knowing what fundamental factors are impacting or could impact a market that a trader plans to trade is part of the process (enjoyment) of trading.

2. Don’t trade hot “tips.”You may trade for 20 years and never hear a good trading tip. Reason: There aren’t any . . . at least not any that are any good for regular individual traders. Markets are way too big and too tightly regulated to be impacted by any tips or inside information. Any legitimate “early information” has almost certainly already been factored into the market price structure by the time most individual traders could ever benefit from it. Don’t confuse tips with rumors. Markets do move on rumors more than just occasionally. Rumors are a part of trading but still fall into the category of “not much use” to off-floor traders. Besides, many rumors are never confirmed as fact and are often self-serving to those who try to start them.

3. Don’t get too fancy with your market orders.Entering a trade “at the market” with a market order may be the best way to enter a trading position, especially in markets that are liquid (have high open interest). It’s certainly the easiest way to enter. Fiddling around with limit or stop-limit or other multi-step orders to save a tick or two or three can cost a trader a good entry point or even a missed trade altogether. It’s certainly easy to be guilty of this offense because every trader is always trying to get just a little better price. This doesn’t mean that limit or stop-limit or other types of orders are not useful in certain circumstances because they are. However, most trade entries are best made “at the market.” Look at pitchers in major league baseball who “nibble” with their pitches around home plate. Most wind up with a walk instead of an out.

4. Don’t form a new market opinion during trading hours. This rule goes hand in hand with the rule that says you need to stick to your trading plan of action. Day-to-day market “noise,” or the minor up-and-down price fluctuations of a market, can be at least distracting to a trader and at most prompt the trader to make a hasty and poorly founded trading decision.

5. Don’t force trades; if you don’t see a trade, stand aside. Don’t chase a market just to put on a trade. Try to exhibit patience and discipline in trading – easily said but hard to follow. Patience and discipline are not easy virtues for any trader to learn because a typical futures trader has a “Type A” personality with a competitive nature who hates to wait in lines. However, to have even a chance at success in trading, you have to control your impatience.If you happen to miss a trading opportunity because you waited too long, other trading opportunities will come along. A good trade is usually profitable right from the beginning. If the market price moves “your way” in the first couple days after you’ve executed the trade, then odds are significantly higher that your trade will be a winner if you have waited patiently for the right position. This rule reinforces the notion that tight protective stops are an important part of trading success. But there is a time to be impatient: If a straight futures trade is under water after two or three days, more times than not it’s prudent to take a small loss and move on. Do not be patient with losers.

6. Use intermarket analysis to spot trading opportunities.No market trades in isolation but is influenced by what is happening in a number of related markets. Don’t focus on just one market as much of today’s single-market technical analysis does. Instead, take into account developments in other markets that are likely to affect prices in your target market. If you trade stock indexes, you have to be aware of what is taking place in interest rate, currency and commodity markets such as gold. The price of a market you want to trade may be the sum of what is happening in ten or more interrelated markets.

7. Watch open interest statistics, especially in options. When you are contemplating trading any contract, make sure to first check the open interest for that specific contract or strike price. If a futures contract or options strike price has a low open interest total, it is probably best to seek out a more liquid contract. Fills on both entry and exit can be tough and may produce more slippage than is desired. When you get into a position, be sure it is liquid enough so you can get out on favorable terms.

8. Know what you can and cannot control. You can control the market you want to trade. You can control the type of market order you want to give your broker. You can control when you want to enter the market. You can control the amount of contracts you wish to trade. You can control when you want to exit the market. But you can’t control the market, which often has a habit of doing unusual and unexpected things. Knowing and prudently managing the market factors you can control and knowing that you cannot control the market gives you a trading edge.

9. Make the market’s action confirm your opinions. If you have a particular market on your “radar screen” for a trade, don’t just jump in based on a hunch or a “gut feeling” or because you want to get a fill right away. That’s when a market order advised above may not be in your best interest. Make the market first confirm your opinion. Make the market show you some strength if you want to be long, or make it show you some weakness if you want to be short.

10. Do not overtrade. Trying to trade too many markets or too many contracts in one market can create problems for an undercapitalized trader. There is no set rule for how many markets a trader should trade at one time. Some traders can trade many markets at the same time and not have a problem. However, if you are feeling stress about a position you are carrying or can’t keep up with what’s going on in all the markets you are trading, then you are likely over-trading. For those traders who are really not sure how many markets to trade at one time or how many contracts to trade for each position, it’s always better to take a conservative approach. Step in slowly until you become comfortable trading in a larger size or in multiple markets

why trade Forex?

2008-04-04T02:36:00.000-07:00

Although the Forex market is by far the largest and most liquid in the world, day traders have up to now focused on seeking profits in mainly stock and futures markets.

This is mainly due to the restrictive nature of bank-offered Forex trading services.
There are many advantages to trading spot Forex as opposed to trading stocks and futures. In the peoples mind there is this opinion that brokerage firms and analysis’s can change the flow of the currency.

But in reality, FOREX is an independent international foreign exchange market which can be influenced by many factors but NOT by the wants(wills) of traders and brokerage firms.Because of its diversity you are able to trade FOREX 5 days a week, 24 hours a day. US, Europe and Asia the major trading sessions enable you to trade on your own schedule and make a quick respond to breaking news from all continents of the world no matter where you are located.

Complied benefits from both high leverage and potential profits from both rising and falling market, Forex is very interesting for speculators from every point of view. For example, with $10,000 cash in a standard account that allows 1:100 leverage (1%), you can control up to $1,000,000 in notional value. forex NO commissions or fees, simply take all your profits with you. Commission-free trading is one of the most attractive features of forex trading.

The dealing spreads are as low as 2 pips(for EUR/USD). Providing a more comfortable environment when trading. Versatility all around The overall volume of FOREX market is $2 trillion. Almost all the amount of the volume involves trading of the major currency pairs, NorthFinance clients enjoy tight spreads on these pairs.