Posts Tagged ‘how to trade on forex’

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3 reasons why people loose money on Forex

May 13, 2012

1. Low start up capital + high leverage

Most forex traders think that Forex is an easy way to make fast money by using very small starting amount. Unfortunately most of the Forex brokers encourage their new traders to trade on high leverage which means on high risk. But guess what –   you must have some money to make some money. If you think that starting with 50$ you will make thousands you are totally WRONG! We advice you to calculate your interest(the expected profit) by percentage – not in dollars. So if your initial deposit is 50$ don’t expect to make 1000$ in 1-2 months. It is better to trade on low leverage(risk) and to put yourself a goal 100% profit in the next 6-12 months . However most of the traders who start with this kind of capital don’t appreciate when they make profits of 0.1-0.5$ with one position(based on their leverage) their goal is not to be on profit after 6 months, they want to make 1000$ in 1 month. That is why they start trading on high risk and most of them end up loosing their capital and  thinking that Forex is a scam. Forex is not a scam! But it is neither a casino! So it f you want to make 1000$ our advice for you is to start with 1000$ or more.

Advice: Do not use high leverage! Especially if you are a new trader your leverage shouldn’t be over 5! Calculate your interest by percentage, not by currencies!

2. Greed

Some traders are trying to take every last pip out of a move. And most of the time the market goes against them before they get their last pip. This can make you loose the good profit you already have.

Advice: When the market goes in your direction and you make 30-50 pips profit, but you don’t feel that it is enough just close part of the position and move your stop loss 30 pips behind. This way you will try to make bigger profits however if the market goes against your prediction you will insure the profit you have.

3. Indecisive Trading

People often suffer from trader’s remorse. This happens when you open a position and the price does not immediately go in your direction. Then you start thinking you have made the wrong choice, you reverse the position and… it again the market goes against you and you loose more money. If you regret your decision the best thing you can do is to shut the computer down and to go outside!

Advise: When you make a decision stick to it! Always put your stop loss and take profit levels and don’t jump around with every pip!

If you have questions feel free to ask in the comments below!

If you think that what is written here is correct feel free to share it with your friends on Facebook! It might be useful for them!

And of course if you are new on Forex we always recommend you to visit our website for more information and tips  – http://newonforex.com/

Good luck!

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Economic Calendar

May 10, 2012

http://newonforex.com/

Today you can see very important events on the Economic Calendar. Here you can see some of them:

Trade Balance – Canada 13:30 GMT – A higher than expected reading should be taken as positive/bullish for the CAD, while a lower than expected reading should be taken as negative/bearish for the CAD.

Trade Balance – USA 13:30 GMT – A higher than expected reading should be taken as positive/bullish for the USD, while a lower than expected reading should be taken as negative/bearish for the USD.

Initial Jobless Claims – USA 13:30 GMT – A higher than expected reading should be taken as negative/bearish for the USD, while a lower than expected reading should be taken as positive/bullish for the USD.

Fed Chairman Bernanke Speaks – USA 14:30 GMT – His comments may determine a short-term positive or negative trend for the USD.

If you don’t understand anything or you just have a question just write a comment and we will answer you as soon as possible!

If you want you can follow this blog via email to see our opinions and analysis right after they are published!

Good luck !

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GBP/USD more likely will continue in downtrend

May 5, 2012

http://newonforex.com/

After last week Cable made a test on the resistance level on 1.6300 it started going down. It went through the support on 1.6250 which became very strong resistance level – tested several times. For a few days traders were keeping it between 1.6250-16170 when finally on Friday it went down. Now it more likely will continue the downtrend it started to the next support on 1.6060 and if it goes through will reach 1.5990.

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Welcome

March 25, 2012

Welcome to NewOnForex.com.

Some of us know, some of us have just heard of a place online where people are making money.Making money just by trading with curencies, few hours a week in a comfortable time.

Here we’ll try to explain more is it possible and how it is done.

Here are some advantages of the FOREX Market:

  1. You don’t necessarly need to be all the time infront of your computer in order to make profit.
  2. You can make money from home.
  3. You get knoledge about the financial markets.
  4. You can use up to 400 times more money then you have deposited (but you can Never loose more than you have deposited:)
  5. You control the situation (it is ynot like giving your money to a broker and trusting someone else’s decisions)
  6. You have your money available all the time.
  7. You’ll work with prestegious financial institutions.
  8. You”ll pay extremley commissions up to 0,03% of what you trade with (for the majir currensies)
  9. You have Transparency – everything is visable for you 24/7  (market movement, major news, your money etc.)
  10. You’ll be able to predict the market movements (most of the companies are offering free education and tools for that)

These are only few reasons why the Forex Market is so attractive for all of us no matter of our position in the sociaty – student or retired, unemployed or businessowner, woman or a men… After all we are willing to make money in order to support our life and our families.

FOREX is giving us this opportunity!