Useful Daily Forex Articles (Brought to you by HiWayFX)

Free VPS in the World of Forex Trading

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Finding a virtual private server to trade in the Forex market is essential if you want to make quick trades. One of the most important things that you need to know as a Forex trader is that there is a noticeable delay in the time it takes for your trades to go through. Because of the fact that a minor disconnection could lead to a serious issue, many people prefer renting a VPS server in order to trade consistently. The Forex market remains active round the clock, so you need to have a reliable connection in order to trade constantly on the market. Many brokers offer free VPS to their users. Here are a few reasons why you should prefer going for a virtual private server:

Cloud Technology

One of the biggest reasons why you should consider signing up for a VPS platform is that it is based on cloud technology. With the help of cloud technology, you will be able to gain access to the most competitive prices. The turnaround time plays a very important role in determining whether you can get the deals that you want at the most competitive prices or not. When it comes to trading in the forex market, rapid action is essential if you want to succeed. If you are not able to decide quickly, you won’t be able to secure the right trades.

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What Makes a Successful Price Action Trader

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The price action trading strategy has become immensely popular in the past few years, with more and more traders adopting this approach. Success in the world of forex trading is not easy, and certainly not guaranteed. There are people who think that you can throw more money in the market in order to generate more money. It is very easy to fall off the track and end up making some serious emotional mistakes in your trading experience. However, the one thing that will lead to success in the forex trading market is discipline. The price action strategy is solely focused on technical analysis and study of past performance in order to make future calls. If you want to become a successful price action trader, there are a few things that you must do. Here they are:

Limit Screen Time

Many forex traders try to maximize their screen time as much as possible. Forex trading is extremely easy: all you have to do is log on to your brokerage account using your mobile phone or your computer in order to start trading. However, despite the fact that logging on is very easy, you need to minimize your screen time as much as possible. Many people make the foolish mistake of trading anytime during the day.

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Very Low Slippage



Slippage is a term often heard in Forex trading and stock markets. It basically refers to the difference between the expected price of a trade and the actual price that is executed. This slippage usually occurs during times of volatility within markets and during constant fluctuation of stock prices.

Slippage in Forex occurs when there is a limit order or stop loss that presents itself at a rate which is worse than what was set in. For example, a new event or a volatility in the currency markets might make an order at an expected price difficult to be carried out. Hence, the traders will trade at the next best price rather than the expected price of the trade.

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Swing Trading

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Definition:
Swing Trading is a term often employed to refer to a special method of trading in which the aim is to muster gains of a stock within a set time period of one to four days. Traders who employ this method of trading are more interested in the prevailing value patterns and drifts. The main objective is to collect the profits as soon as the market touches a certain high point.

A swing trader needs to be adept at the skill of technical analysis to formulate his strategy within a very short period of time.

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ECN Markets - What Are They?

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The Foreign exchange trading market is one of the biggest trading markets in the world, where currencies are exchanged round the clock from all parts of the world. Most people often trade forex in their spare time in order to make more money. However, there are many different ways of trading in the forex market. If you want to become a profitable trader, the first and most important thing that you need to do is work with a reputable broker. A reliable, established broker will make your life very easy. He will help you get in touch with some of the biggest liquidity providers in order to maximize your trading portfolio as much as possible.

Now, there is a difference between market makers and the ECN markets. In an ECN market, the prices are passed on from numerous market participants, namely banking organizations and other market makers. Other traders connected to ECN also pass their prices through these markets. As a trader, you will be able to see their best bid and ask prices on your trading platform, thus allowing you to decide whether you would like to make the trade or not.

Brokers who work on the ECN markets are often considered to be counterparties to conventional forex transactions.
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Learning Currency Trading – Part 1: EUR/USD

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Introduction:
EUR/USD is frequently used to denote the approximate value of USD that needs to be exchanged in order to obtain a single EUR. In the quotation EUR/USD, the EUR represents the base currency while the USD is taken as the counter currency.
EUR/USD is perhaps the world’s most widely used and oft-traded currency pair. The reason for the popularity and excessive use of the pair lies in the fact that each of the two currencies are representatives of the world’s most powerful economies; namely, Europe and the United States respectively. The wave of changes throughout the world market is almost always attributed to the fluctuations in at least one of the two currencies.

General facts and importance:
The world’s largest and most successful multinational corporations have their headquarters in either Europe or America, and even both. There is little doubt in the fact that despite tremendous growth of businesses and corporations around the world, the European and American blocs

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Learning Currency Trading – Part 2: GBP/USD

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Introduction:

The quotation GBP/USD stands for British Pound/U.S. Dollar and articulates the number of USD required for obtaining one GBP. In the symbol above, the GBP stands for the base currency while the USD is the counter currency.

GBP/USD currency pair is one of the world’s most heavily traded pairs, which absorbs over 12 per cent of the total market share almost every day. Ranking fourth in the list of the most oft-traded pairs, the GBP/USD is particularly important when trading with Great Britain and other European countries.

Like all other currency pairs, the GBP/USD pair undergoes abrupt and evident changes on a daily basis. However, very similar to the EUR/USD pair, this currency pair is also unpredictable and exhibits extremely high volatility, making it hard for many traders to predict its next trend.

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Learning Currency Trading – Part 3: USD/JPY

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Introduction:

USD/JPY stands for U.S. Dollar/Japanese Yen. The symbol denotes how many Japanese Yen are needed to acquire one US dollar. In the currency pair symbol, the USD is the base currency and the JPY is the counter currency.

This pair is made up of an American and an essential Asian currency. The unique aspect of this particular currency pair is that it offers a wider forex market operation time range owing to the large differences between the time zones of US and Asia. The Japanese Yen is largely traded in the forex market during the Asian working hours in the daytime, hence, giving more time to trade for traders elsewhere in the world.

This pair is favoured not only by the novices in the forex market, but also by the veterans. The reason lies in the value of Yen being a safe resort for traders during times when the volatility in the market is exceptionally low.

General facts and importance:

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News Trading

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One of the most substantial tools in the trading world is news trading, which basically is the technique of trading economic news reports. The news on the economic world helps the traders in many ways as they involve a lot of market updates, mergers, announcements of different financial related events, policy changes etc.

The first vital thing to know is how to use news trading to your advantage. For successful trading in Forex, the trader technically analyses everything about the market and other financial aspects. But the other important thing involves checking the news releases frequently. Most of the traders wait for the visualization of information or financial data releases and then start their trading based on them.

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Learning Currency Trading – Part 4: USD/CHF

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Introduction:

The symbol USD/CHF stands for U.S. dollar and Swiss franc. It tells us about the number of Swiss Franc needed to buy one US dollar.
About the Swiss Franc, traders say that it happens to be their safest resort in the forex market during the times of political unrest and economic instability. It is regarded by both the newcomers and the old-timers of the forex market to be one of the most reliable currency pair when the volatility of the market is at its highest.

General facts and information:

Switzerland is not only one of the safest countries in the world, but is also a wealthy nation with an economy that is completely reliable. The Swiss economy is safer than most other nations because of the relatively more peaceful political environment that presents either very little or no problem at all to the economic standing of the country.

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Learning Currency Trading – Part 5: USD/CAD

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Introduction:

The symbol USD/CAD stands for U.S. Dollar/Canadian Dollar. This short form articulates the number of Canadian Dollars one needs in order to obtain one US Dollar. In the symbol, the US dollar is the base currency while the Canadian Dollar is the counter currency.

This currency pair is referred to as “loonie” by many forex traders and economic experts owing to the introduction of a loon at the rear of the Canadian dollar. Often, the Canadian dollar is regarded as the commodity currency based on the fact that raw materials make up a major portion of the country’s export base.

General facts and information:

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Learning Currency Trading – Part 6: AUD/USD

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Introduction:

The symbol AUD/USD stands for Australian Dollar/United States Dollar. The abbreviation articulates the number of US dollars required to buy one Australian Dollar. In the symbol, the Australian Dollar is the base currency and the US dollar is the counter currency.

The AUD/USD is one of the world’s most oft-traded currency pairs, one of the biggest reasons of which is the importance of Australia and United States in the world trade. Both countries have a continuously expanding and flourishing economy.

General facts and information:

The AUD/USD is nicknamed “Aussie” by many traders in the forex market. In recent years, there has been a tremendous increase in the popularity of AUD in currency trading as its yields continue to hike in the market as compared to other countries.

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What is an ECN Market?




The foreign exchange market is one of the biggest trading markets in the world. It is completely unregulated, so there are different market makers that often have a huge impact on the prices. However, if you are a trader in the forex market, there are many things that you should know about this trading platform. Most people often enter the world of foreign exchange trading in the hope of making better trades and maximizing their profit potential. However, since this is a completely unregulated market, most people often end up incurring huge losses before exiting the market.

Now, if you are a forex trader, there are numerous different things that you need to know. First of all, one of the best ways to trade in the forex market is on an ECN market. ECN stands for the Electronic Communications Network, which is a simple network designed to facilitate trades between low level market participants and large scale, tier 1 liquidity providers. Many analysts in the foreign exchange market have said that the Electronic Communications Network is going to be the way of the future. It is going to revolutionize the way people trade and it will completely alter the role of the brokers in the market.

Here are a few important things you should know about the Electronic Communications Network Market:

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Learning Currency Trading – Part 7: EUR/JPY

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Introduction:

The symbol EUR/JPY stands for Euro/Japanese Yen. It tells the reader about the number of Japanese Yen that is needed to buy one Euro. In the EUR/JPY currency pair, EUR is the base currency while JPY is the counter currency.


EUR/JPY is one of the most heavily traded currency pairs. However, many forex traders find this pair to be highly volatile with a very large loss risk associated with its exchange. Depending on the market conditions, this particular exchange could either help the trader earn big profits overnight or cause him great losses.

General facts and importance:

Japan and the EU are two successful giants in the global market. With Japanese Yen serving as a proxy currency for Asia and EUR being the representative of the entire Euro zone, the significance of the currency pair can hardly be undermined.

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Take your Forex Losses Like a Man



Only a fool would believe that you can enter the competitive Forex arena without taking a few blows. An even bigger fool would also believe that all the blows he or she might endure are shallow. Accepting loss is one of the key elements any trader or investor has to master even before they go ahead with their first trade. It’s an inevitable part of the daily forex circle of life, some will rise and others will fall instantly and it can’t be any simpler than that.

Although you cannot avoid losses altogether there are ways which an aware trader can take advantage of in order to always be the one holding the reins regarding how hard he or she is to fall if they do.

Traders are probably tired of hearing this but actually it’s the most important and basic rule of any venture in the trading world, that is to never stray from your strategy

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The Forex Industry – Uncut Version

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This article might possibly shock you and make you question everything you've ever been told personally by a 'professional' trader, as well as potentially offend many (if not all) of the experienced forex traders. The purpose of this article is to 'expose' everyone in your life who's told you everything against this article.

I'm pretty sure that what initially inspired many people to pursue trading was all the hype that the media created regarding the simplicity and luxury that comes with being in this industry. Traders you personally know might have showed-off their new car or huge house in an attempt to 'encourage' you to begin trading. The truth is that all of that was a lie.

Now don't get me wrong, gradually you can have that new car or extravagant lifestyle but what everyone fails to mention is that it doesn't just present itself to you in a hand basket.

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Live Vs. Demo Trading Accounts



There are numerous forex trading platforms that allow you trading through them and in order to start trading you have to create an account. Now there are different types of accounts that can be categorized as live and demo accounts. Demo accounts are basically for beginners to learn about trading without risking any money.

Now obviously it is good to practice one’s trading strategy with a demo account but the problem is that people stay on their demo accounts too long. A time comes when the trader has mastered the screen time and has all the relevant knowledge but when he/she starts trading with a real account, they start to lose their money.

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Famous Quotes from Professional Traders



Trading is all about possibilities and sometimes you'll win, sometimes you'll lose or sometimes you'll be losing for so long that you get frustrated. People assume that a trader's life is full of pros but ask a real trader and they'll probably laugh at that assessment. In reality, sometimes they just want to quit because of it but rest assured, after this article, quitting will be the last thing on your mind. Take it from the people who've been doing it for years and got big:

1. “In this business if you’re good, you’re right six times out of ten. You’re never going to be right nine times out of ten.” -Peter Lynch

The possibility of a good trade or a bad one can not be forseen and instead of getting emotional about just think of it as part of the game.

2. What seems too high and risky to the majority generally goes higher and what seems low and cheap generally goes lower.” -William O’Neil

The message here is to understand the dynamics. Some of them might seem appealing but are actually not or viceversa.

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Learning Currency Trading – Part 8: EUR/GBP



The symbol EUR/GBP stands for Euro/British Pound. It tells us about the number of British Pounds required to purchase one Euro. In the symbol, EUR is the base currency while the GBP is the counter currency.

General Facts and Importance

Various websites and forex analysts have concluded that the most important and the most voluminous exchange rate in the United Kingdom is the rate of exchange of EUR to GBP. While EUR is the world’s second largest trading currency, GBP happens to be the fourth. The currency pair is of immense importance when the proximity of the location and nature of trade between the UK and the Euro zone is taken into account.

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Hedging in the Forex market

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The liquidity of the forex trading market is increasing day by day which means that much more money and statistics are in play every passing hour. This onset of complexities and the associated risks demand a more defined tactical approach. Those of you who are already familiar with the horse racing term 'hedging' must know that although hedging secures your position in the bet, it still involves a substantial risk factor. But better to stay on the safer side of the track right? So to provide the traders with a similar semi-immunity gear, 'hedging' is also commissioned in trading.

What is hedging?

A 'hedge' is something that everyone from naive traders to the experts should know about. It is a technique that can protect your investments to a suitable extent. Here it should be made clear that getting into a hedge does not mean that when a negative event occurs or the results go down the hill you will come out of it completely ruined. It only means that if you properly hedge yourself, you won't have to undergo a massive financial trauma. It can be taken as auto insurance which is able to compensate some loss after a tragedy but it does not prevent the tragedy from happening. So think of it as a semi-protection shield. Anyone who is involved in trading can and should learn the hugely practiced technique to hedge properly.

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