Forex Money Management

The main idea of the whole trading process is to survive! Survival is the first task, after which comes making the money.

above sentences are very meaningful. i got it from internet

However,sometimes greed surpasses logical thinking. not many of us can control our greed,including myself. Last time i suffered losses due to greed when using forex transporter

Survive first then only think about

Forex technique - Bollinger Bands

For technical analysis, there are lots of indicators for usage. Among the most common and basics are Moving Average, MACD, etc

I would like to share using Bollinger Bands.




For Bollinger Bands, it consists of three line - upper bound/band, mid bound/band, lower bound/band

The logic behind these 3 lines are - the upper bound indicates overbought state where a correction will be expected and

Forex education : Important Chart Patterns

Other than technical indicator, we shall be able to recognize some important chart patterns to take profitcs.

Below are few of the important chart patterns. Mostly take advantage on the price breakout

•Symmetrical Triangles
(put pending order above and below, once price breakput, cancel the other one)




•Ascending Triangles



•Descending Triangles

•Double Top


•Double Bottom


•Head and

Forex Education : What is Forex Correlation ?

Correlation is the tendency of certain currency pairs to move in tandem with each other. Positive Correlation means that the pairs move in the same direction, Negative Correlation means that they move in opposite directions.

A correlation coefficient of 1.0 means the pairs move exactly in tandem with each other; a correlation of -1.0 means the pairs move in exactly the opposite direction.

Forex Education : Make your buy sell decision based on reviewing 3 different time frame

I read this article before where it emphasizes on trading forex based on reviewing 3 different time frame on same currency pair.

I did read the article but I myself didn't practise it. Maybe this is the reason why I lose in forex trading.

Below is the suggested time frame set
•1 minute, 5 minute, and 30 minute
•5 minute, 30 minute, and 4 hour
•15 minute, 1 hour, and 4 hour
•1 hour, 4 hour,

Forex education : Using Moving Average Indicator

Usually the fundamental is the most powerful, this is how I feel about indicator moving average. It depends on how we use it.



The picture above shows 4 moving average in different colour. Red(20),yellow(50),blue(100) and purple (200).

You can save the indicator setting in template where next time you load the template, it will show the same indicators.

I am not going to explain in details

Forex education : Use support and resistance level

Look at below picture to learn how we use support and resistance level to take profit from forex.

Use a horizontal line to connect past highs/lows,

if the current price is lower than the horizontal line, then that line is resistance level. Put a buy stop above the resistance level to wait for price breaks the resistance level.

if the current price is higher than the horizontal line, then that

Forex education : Trading on news

The more I learn forex, the more I gain. I learned about trading forex based on news this weekends.

Before the news publication we place two orders: one buy stop and one sell stop. It is because usually after a news release eg
    USD Unemployment Rate (APR)
    USD Change in Non-Farm Payrolls (APR)
    EUR German Industrial Production n.s.a. and w.d.a. (YoY) (MAR) 
the price will move deeply

Forex education : Difference of Buy Stop, Buy Limit,Sell Stop and Sell Limit

Buy Stop,Buy Limit,Sell Stop and Sell Limit all are pending orders.

Buy Stop and Sell Stop used in trend while Buy Limit and Sell Limit used in trend reversal.

Definition

Buy Limit - A pending order placed to buy a currency pair if the price falls to a certain level. You hope that if the price goes down to this level, that the price will then reverse and rise.

Sell Limit - A pending order

Forex education : Use support and resistance level

It is a sunny Sunday but I am still sitting in front of the laptop studying forex. I am willing to sacrifice Sunday time go out with friends cause I know the rewards if I master forex.

Today, I tried to look back old data and practice plotting support and resistance on forex chart.

Here is a few I did today.