Short Term and Long term strategy

Forex trading can be done for long term and short term. I have told you about the shortest term, that is scalping, but there are a lot of people think that short term is actually scalping, but it is wrong, it is different from short term. Short term do not have any time limit, while scalping has time limit, traders close the trades when it is in small profits or in small loss, this is because they need to chase the lots trading target given by the brokers, this thing happen when they have some kind of deposit bonus or no

deposit bonus and the condition that most of the brokers set for withdrawal of bonus will be trading standard lots, so that's why people do scalping.

Most of the brokers do not allow scalping, because they ask traders to keep their trades open for at least 10 minutes then it will be a valid trade, if a trader do not abide this rule, then his trade will not be counted as valid trade, though that trade will be done, but the condition will not meet. Now, the question is what is standard lot? this is a question that most of the traders do not know. Even they are good traders, so I am telling you here that if you open 1$ trade, then it will be your 1 standard lot. If you are opening $0.1 mini lot, then a sum of 100 mini lots will give you one standard lot trading volume. If you are opening trade of $0.10 then ten lots will make you 1 standard lot.

You need a lot of money to invest if you want to trade one standard lot, it is not easy to trade with that much size of lot. Because as I told you earlier in my other posts that you will have to invest a big amount of money to trade with $1 lot, this is because when you buy $1 lot, then it will be 100,000 units to buy in forex market. Now, in this condition, you need a big leverage, and its up to your broker that how much leverage he gives you. What is leverage? read from here.

Charts in forex trading

Candlesticks

How many types of charts available in forex meta trader? in simple words, there are three charts patterns available in your meta trader, candle stick chart, line chart and bar chart, the most famous is candle stick chart, though people use bar charts to analyze the market too, but the most famous is candlestick chart. Almost 90% of traders use candle stick chart to analyze the market.

There are several ways to analyze the market through candle stick chart, some analyze from the previous day candle stick, some see in weekly and some see in monthly chart to analyze the market. I personally prefer to see daily and weekly chart to understand the market trend.

bars

We can customize the color of candle stick chart, we can change the color of the candles to any of our choice, for example, if we see the buying candle then it will be green by default and if selling then it will be black by default, if we want to change the color of candles according to our need then the option is available in meta trader, so that we would be able to see the candle with the color of our

choice, it will also help us to understand the trend of market.

Time frame

The chart has different time duration to see the candles, that is from 1 minute to monthly basis. You can change the chart duration from 1M to M1, these charts are used for the analysis of market, mostly day traders use these charts to analyze the market.

Scalpers mostly

line chart

use M15 to M30 chart to analyze the market and find the opportunity of trading in meantime, if they see that market is in normal mode then they will m

ake their strategy according to that mode, they will also keep this thing in their mind that what are the up coming big news that may fluctuate the market and what are the circumstances where they can play with their pips.

What is scalping and how to do that?

Most of the new traders ask this question that what is scalping and how to do that? actually in my view, it is a way to make money as much quick as possible. In simple words, you trade according to flow of the market and execute the trades frequently, you open trades and close trades within shortest possible time, where the trade is in  profits. 

The scalping can range between 10 pips to 15 pips, some traders do this with only 3 to 4 pips, if it is fixed spread, and if it is not fixed spread, then most of the traders close their trades with only 1 to 2 pips profit. This is the shortest way to make money with the help of scalping. 

SCALPING STRATEGY

In this trading method, what traders do? and what are the circumstances that are good for scalping? Whether it is session changing time or market relaxation time, if the market is fluctuating approx 10 pips then traders may play their game in market easily, only, if they are scalper. The traders who do scalping are normally called as scalper in forex market. 

This is a trading strategy, that most of the new traders do, because they are eager to earn money and they don't know that this is not suitable for those who do not know about market movement and expected movement, and if they do it blindly then it may wash the account within five minutes, it happens with almost 80% of new traders, because they do not know about hedge strategy and that's why they lose their whole amount, some traders earn a handsome amount, while they don't even know about trades execution, that is purely based upon luck, and then trader think that he is king of market and start following this strategy again, but in second time he lose. So, it is my suggestion, whatever you do in forex market, please do some analysis first and then start trading.

Only a few forex brokers allow scalping method in trading, while so many brokers do not accept this kind of trading, because it hurts their interest. But some brokers allow scalping, so whenever you are going to signup for a forex broker, then you shall know whether he allows scalping or not. If not, then search a good forex broker to allow you this trading strategy.

Expert advisor in forex trading | Auto Trading

Expert advisors are the things that make the forex trading easy, they automatically open and close the trades on your behalf, they see the market and then execute the trades on the basis of market condition. These are actually bots or you can say script, that follow some guide lines, some traders call it auto trading. 

Just like other robots, what they do? whatever you command them, they will follow it, but it has some problems, because they are designed for some conditions of market, they can not do anything, if the market moves against the script they follow, they do not have their own brain to understand the situation of market, they are best if the market is moving according to script and they will quickly execute the orders and then

FOREX ROBOT

close whether there is only a second difference between order opening and closing, but they will do it rapidly. While when you are doing this thing manually, then you will see a long slippage or error in the high fluctuation.

Some robots follow slow market and some follow fast market, some follow martingale, and some follow scalping, but none of the robot is available in market till today, who can understand the market situation and follow that strategy which gives complete profits without any loss. 

If you are a newbie, then I will recommend you, not to use forex robot, because it will need expert assistance, and if you do not know what to do in certain conditions of market, then you will lose your whole amount of money in forex market and then you will need to invest your own money again, if you want to continue your trade again.

Can I make millions of dollars from this market?

Hello guys, most of the new traders always think about this thing that they will be able to make millions of dollars overnight and their life and lifestyle will be changed soon. The will live luxurious life with the help of forex trading, and they take it easy that everything is possible with only 1$ investment, but it is absolutely wrong.

There are hundred of thousand people on internet giving good thoughts about forex market and the lucrative advertisements and showing people with luxurious car, luxurious life and they are forex trader??? No, not all the forex traders making that much money, this market also have so much influence of market makers. It is a hidden truth that some brokers and big financial institutions vibrate the market and in result of that fluctuation, so many traders fall, just like fruits from trees.

Forex 52 weeks plan

Its seems to be very much good that traders are earning good money and they are running their houses on the basis of forex trading, but the fact is that, it will need a lot of time to do analysis of market. After proper analysis of market and understanding the chart patterns, the trader will be able to make some bucks from market, but it is another truth that when a trader is a newbie and he is trading in market with little information, then by luck, he makes good amount of money, I personally have seen so many people including myself, I also made a handsome amount of money from forex market when I was newbie and didn't even know about orders executions. (It is not an invitation to enter in market without experience).

Internet is full with this kind of plans and charts that a trader can earn millions of dollar with the help of only one dollar investment, but it is not true, almost all the brokers do not allow you to get profits more than your investment. Only a few brokers will give you that advantage, but the amount will be limited in that case. This is only a dream and nothing.

Binary Options Trading

Most of the forex traders are also binary traders, because binary trading is less risky than direct forex trading, that you can say classical forex trading. Binary Options are not directly connected with forex market, but they are indirectly connected with forex market and commodity market. 

Actually you can say that you do the same as you do in your forex trading, but the difference is that, you have limited risk on binary options, but in forex market, you will lose most of your money or may your account come into negative, if market sudden fall or rise against your open trade. So, that's why nowadays, most of the traders migrate themselves to binary options and they are earning good money with binary option, but this is not as much easy as I am telling you. because every broker has its own rules and regulations and a trader must abide the rules before he head to withdraw his money. 

Binary options

It has been seen by the author that several traders face conflict of interest when they request for withdrawal and then they see some conditions and restrictions that restrict them to withdraw whole amount of their deposit or partial withdrawal. So, in this case, I would like to suggest you people, whatever you do in forex market and whatever broker you choose, please read all the terms and conditions first and make a snapshot of the terms and conditions for future reference. Another thing, you need to keep this thing in your mind that most of the brokers write their terms and conditions very clearly and one clause in that term is that " They have rights to change or terminate any scheme or promotion at anytime without any prior notice" This is really a killing clause.

Please note that, visit the Terms and Conditions page often, so that you would be able to understand what to do next and you do not get shocked when you request for withdrawal and then it come into notice that "Sorry, you can't".

What is meta trader? How to use it?

What is meta trader? this is an electronic platform that is used to execute your orders in online market, this is a software that directly connected with your broker and then you insert your order and it place in market on behalf of you. 

There are several software in market that brokers are giving free of cost. I am talking about international brokers, not local brokers, because some local brokers in your country may charge you some amount of money for the meta trader they have, some brokers are still offering the old version of meta traders.

Meta trader 4

What I know about meta traders, I have found that meta trader 4 is the best. Although meta trader 5 is available in market and with some brokers, but mostly traders prefer meta trader 4, what is the difference? there are only a few differences between these two meta traders. Most of the differences related to order execution. 

You will see some difference in meta trader 5, that the tabs which you can see below the meta trader will be a bit different from meta trader 4, the order execution will also be different, but one main thing that you can not do in meta trader 5 is, Hedge, this is a thing that you can do in metatrader 4, but not in metatrader 5. This is one kind of trading technique, that will be used in your trading session, when your account is in critical condition. But if you are using metatrader 5, then I am sorry to say, that you will need to replenish the account with big amount to secure the remaining amount, otherwise you will lose your whole account. Below is a picture of metatrader 5.

Meta Trader 5