BUY FXO Forum Shares
1316
Shares in the BANK:
We BuyWe Sell
$1.8836$1.9419
Page 1 of 2 12 LastLast
Results 1 to 15 of 29

Thread: Hope you profit more with these fx tips

  1. #1
    Bullish
    Join Date
    Nov 2008
    Posts
    93
    FXO Shares
    0
    FXO Bonus
    0.000
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Default Hope you profit more with these fx tips

    Hope these educational tips can go a long way in helping you improve on your trading skills with a corresponding positve effect on your account size.

  2. #2
    Bullish
    Join Date
    Nov 2008
    Posts
    93
    FXO Shares
    0
    FXO Bonus
    0.000
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Default

    APPT is Key to Profitability
    Average profitability per trade basically refers to the average amount you can expect to win or lose per trade. Most people are so focused on either balancing their profit/loss ratios or on the accuracy of their trading approach that they are unaware that a bigger picture exists: Your trading performance depends largely on your APPT.

    This is the formula for average profitability per trade:

    Average Profitability Per Trade = (Probability of Win x Average Win) - (Probability of Loss x Average Loss)

    Let's explore the APPT of the following hypothetical scenarios:

    Scenario A:
    Let's say that out of 10 trades you place, you profit on three of them and you realize a loss on seven. Your probability of a win is thus 30% or 0.3, while your probability of loss is 70% or 0.7. Your average winning trade makes $600 and your average loss is $300.

    In this scenario, the APPT is:
    (0.3 x $600) – (0.7 x $300) = - $30

    As you can see, the APPT is a negative number, meaning that for every trade you place, you are likely to lose $30. That's a losing proposition!

    Even though the profit/loss ratio is 2:1, this trading approach produces winning trades only 30% of the time, which negates the supposed benefit of having a 2:1 profit/loss ratio. (For related reading, see The Importance Of A Profit/Loss Plan.)

    Scenario B:
    Now let's explore the APPT of a trading approach that has a profit/loss ratio of 1:3, but has more winning trades than losing ones. Let's say out of the 10 trades you place, you make profit on eight of them, and you realize a loss on two trades.

    Here is the APPT:
    (0.8 x $100) – (0.2 x $300) = $20


    In this case, even though this trading approach has a profit/loss ratio of 1:3, the APPT is positive, which means you can be profitable over time.

    Many Ways of Becoming Profitable
    When trading the forex market, there is no one-size-fits-all money management or trading approach. Traditional advice, such as making sure your profit is more than your loss per absolute trade, does not have much substantial value in the real trading world unless you have a high probability of realizing a winning trade. What matters is that your APPT comes up positive and that your overall profits are more than your overall losses.

  3. #3
    Bullish
    Join Date
    Nov 2008
    Posts
    93
    FXO Shares
    0
    FXO Bonus
    0.000
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Default

    WHAT IMPACT DOES A HIGHER NON-FARM PAY ROLL HAVE ON THE FOREX MARKET?

    Traders are constantly monitoring various economic indicators to identify trends in economic growth. Some of the most watched economic indicators include the Consumer Price Index, housing starts, gross domestic product and the employment report. Out of these indicators, the employment report contains a variety of data and statistics regarding the employment information of the market.

    The employment report is released on the first Friday of every month by the Bureau of Labor Statistics, providing data covering the previous month. The report contains information on unemployment, job growth and payroll data, among other stats.

    Out of the payroll data that is provided, the most important statistic that is analyzed is the non-farm payroll data, which represents the total number of paid U.S. workers of any business, excluding general government employees, private household employees, employees of nonprofit organizations that provide assistance to individuals, and farm employees. This data is analyzed closely because of its importance in identifying the rate of economic growth and inflation.

    As with other indicators, the difference between the actual non-farm data and expected figures will determine the overall effect of the data on the market. If the non-farm payroll is expanding, this is a good indication that the economy is growing, and vice versa. However, if increases in non-farm payroll occur at a fast rate, this may lead to an increase in inflation. In forex, the level of actual non-farm payroll compared to payroll estimates is taken very seriously. If the actual data comes in lower than economists' estimates, forex traders will usually sell U.S. dollars in anticipation of a weakening currency. The opposite is true when the data is higher than economists' expectations.

  4. #4
    Bullish
    Join Date
    Nov 2008
    Posts
    93
    FXO Shares
    0
    FXO Bonus
    0.000
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Default

    CALCULATING FOREX PIVOT POINT

    Pivot points were originally developed by floor traders in the equity and commodity exchanges. They are calculated based on the high, low and closing prices of previous trading sessions, and are used by traders to predict support and resistance levels in the current or upcoming session. These support and resistance levels can be used by traders to determine entry and exit points - both for stop losses and profit taking.

    Because the forex currency trading market is so large and liquid, pivot points - which thrive in this type of market - are very useful. The large size of the market, especially in liquid currency pairs such as the EUR/USD, helps prevent market manipulation that would keep the market from adhering to technical principles like support and resistance.

    Pivot Point Calculator
    Many free pivot point calculators are available online to help traders calculate their pivot points for the current or upcoming trading session. Pivot point calculators are a valuable tool, but also unnecessary, as the formula is actually quite simple. The pivot point for the current trading session is calculated as:


    Pivot Point = (Previous High + Previous Low + Previous Close) / 3


    The pivot point can then be used to determine levels of estimated support and resistance levels for the day:

    Resistance Level 1 = (2 * Pivot Point) - Previous Low

    Support Level 1 = (2 * Pivot Point) - Previous High

    Resistance Level 2 = (Pivot Point - Support Level 1) + Resistance Level 1

    Support Level 2 = Pivot Point - (Resistance Level 1 - Support Level 1)

    Resistance Level 3 = (Pivot Point - Support Level 2) + Resistance Level 2

    Support Level 3 = Pivot Point - (Resistance Level 2 - Support Level 2)


    Forex Day Trading
    Because the forex market is a 24-hour market, there is often confusion about what time of day to use when calculating the closing price of one trading session and the opening of another. The generally accepted times used when calculating pivot points is 23:59 GMT for the close of a trading session, and 00:00 GMT for the opening of the new session.

    The forex day trader can use daily data to calculate pivot points and support and resistance for the upcoming trading day. Weekly, swing forex currency traders can use weekly data to calculate pivot points and support and resistance for the upcoming trading week. Longer term forex currency traders can use monthly, yearly, or even longer time frames when calculating pivot points and support and resistance levels on their charts. Calculations can be done quickly and easily on free forex pivot point calculators across the internet, or by hand using the simple equations noted above.

  5. #5
    Bullish
    Join Date
    Nov 2008
    Posts
    93
    FXO Shares
    0
    FXO Bonus
    0.000
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Default

    MOVEING AVERAGE COMBO

    In theory, trend trading is easy. All you need to do is keep on buying when you see the price rising higher and keep on selling when you see it breaking lower. In practice, however, it is far more difficult to do successfully. The greatest fear for trend traders is getting into a trend too late, that is, at the point of exhaustion. Yet despite these difficulties, trend trading is probably one of the most popular styles of trading because when a trend develops, whether on a short-term or long-term basis, it can last for hours, days and even months.


    Here we'll cover a strategy that will help you get in on a trend at the right time while at the same time giving us clear entry and exit levels. This strategy is called the moving average MACD combo. (For background reading, see A Primer On The MACD.)

    Overview
    The MACD combo strategy involves using two sets of moving averages (MA) for the setup:

    50 simple moving average (SMA) - The signal line that triggers the trades.
    100 SMA - Gives a clear trend signal.
    The actual time period of the SMA depends on the chart that you use. This strategy works best on hourly and daily charts. The main premise of the strategy is to buy or sell only when the price crosses the moving averages in the direction of the trend. (To learn more, read the Moving Averages tutorial.)

    Rules for a Long Trade
    Wait for the currency to trade above both the 50 SMA and 100 SMA.
    Once the price has broken above the closest SMA by 10 pips or more, enter long if MACD has crossed to positive within the last five bars, otherwise wait for the next MACD signal.
    Set the initial stop at a five-bar low from the entry.
    Exit half of the position at two times risk; move the stop to breakeven.
    Exit the second half when the price breaks below the 50 SMA by 10 pips.
    Rules for a Short Trade
    Wait for the currency to trade below both the 50 SMA and 100 SMA.

    Once the price has broken below the closest SMA by 10 pips or more, enter short if MACD has crossed to negative within the last five bars; otherwise, wait for the next MACD signal.
    Set the initial stop at five-bar high from entry.
    Exit half of the position at two times risk; move the stop to breakeven.
    Exit the remaining position when the price breaks back above the 50 SMA by 10 pips. Do not take the trade if the price is simply trading between the 50 SMA and 100 SMA

  6. #6
    Bullish
    Join Date
    Nov 2008
    Posts
    93
    FXO Shares
    0
    FXO Bonus
    0.000
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Default

    RULES FOR PLACING STOP AND LIMIT ORDERS IN FOREX

    The high amounts of leverage commonly found in the forex market can offer investors the potential to make big gains, but also to suffer large losses. For this reason, investors should employ an effective trading strategy that includes both stop and limit orders to manage their positions.

    Stop and limit orders in the forex market are essentially used the same way as investors use them in the stock market. A limit order allows an investor to set the minimum or maximum price at which they would like to buy or sell, while a stop order allows an investor to specify the particular price at which they would like to buy or sell.

    An investor with a long position can set a limit order at a price above the current market price to take profit and a stop order below the current market price to attempt to cap the loss on the position. An investor with a short position will set a limit price below the current price as the initial target and also use a stop order above the current price to manage risk.

    There are no rules that regulate how investors can use stop and limit orders to manage their positions. Deciding where to put these control orders is a personal decision because each investor has a different risk tolerance. Some investors may decide that they are willing to incur a 30- or 40-pip loss on their position, while other, more risk averse investors may limit themselves to only a 10-pip loss.

    Although where an investor puts stop and limit orders is not regulated, investors should ensure that they are not too strict with their price limitations. If the price of the orders is too tight, they will be constantly filled due to market volatility. Stop orders should be placed at levels that allow for the price to rebound in a profitable direction while still providing protection from excessive loss. Conversely, limit or take-profit orders should not be placed so far from the current trading price that it represents an unrealistic move in the price of the currency pair.

  7. #7
    Piplet
    Join Date
    Dec 2008
    Posts
    18
    FXO Shares
    0
    FXO Bonus
    0.000
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Default

    You can get pivot line indicator for free. Anyway it is good to check your pivot, support & resistance lines using the given formula.

  8. #8
    Market Maker enjoylife's Avatar
    Join Date
    Mar 2012
    Location
    India
    Posts
    3,140
    FXO Shares
    0
    FXO Bonus
    0.550
    Thanks
    133
    Thanked 70 Times in 67 Posts

    Default

    Pivot pint is a good indicator to consider and a trader can perform his trade on the basis of different support and resistance levels that are formed.Also trader should consider other indicators .

  9. #9
    Market Maker enjoylife's Avatar
    Join Date
    Mar 2012
    Location
    India
    Posts
    3,140
    FXO Shares
    0
    FXO Bonus
    0.550
    Thanks
    133
    Thanked 70 Times in 67 Posts

    Default

    Quote Originally Posted by ceestech View Post
    yes i would atleast on thing a sure of if employed is that it would reduce over trading.
    Over trading is certainly not good for any trader and it might lead to more losses for a trader. A trader should control their emotions while trading .

  10. #10
    Market Maker
    Join Date
    Mar 2012
    Location
    pakistan
    Posts
    2,265
    FXO Shares
    0
    FXO Bonus
    0.149
    Thanks
    86
    Thanked 35 Times in 33 Posts

    Default

    Quote Originally Posted by janknoah View Post
    Over trading occurs when a trader goes out of their trading plans. That why they keep trading either for revenge or more profits
    Though he will have a plan but due to greediness, he can not control over trading.

  11. #11
    Market Maker
    Join Date
    Feb 2012
    Location
    Port harcourt, Nigeria
    Posts
    1,046
    FXO Shares
    0
    FXO Bonus
    1.136
    Thanks
    3
    Thanked 31 Times in 31 Posts

    Default

    Also over confidence can also cause it. Especially when are done with your normal routin trading, and it seems you are still seeing more opportunities

  12. #12
    Market Maker
    Join Date
    Feb 2012
    Location
    Port harcourt, Nigeria
    Posts
    1,046
    FXO Shares
    0
    FXO Bonus
    1.136
    Thanks
    3
    Thanked 31 Times in 31 Posts

    Default

    Don't just assume that, because you don't just see the indicators on the chart and suddenly you make a decision. You will still need to analyse them properly

  13. #13
    Market Maker cool user
    Join Date
    Mar 2012
    Posts
    14,111
    FXO Shares
    0
    FXO Bonus
    9.281
    Thanks
    43
    Thanked 63 Times in 63 Posts

    Default

    Quote Originally Posted by janknoah View Post
    Don't just assume that, because you don't just see the indicators on the chart and suddenly you make a decision. You will still need to analyse them properly
    I agree with you that we are never going to get a successful trade without seeing chrat and without doing the analysis in our trade and this will be bad consequences

  14. #14
    cutedani
    Guest

    Default

    really these are amazing tips and it is really helpful for everyone, i will must follow these all tips.

  15. #15
    Market Maker
    Join Date
    Apr 2012
    Posts
    4,088
    FXO Shares
    0
    FXO Bonus
    0.093
    Thanks
    2
    Thanked 27 Times in 27 Posts

    Default

    Yes i agree with you that these are nice and good information and specially about pivot points.thanx

    I will prefer pavit point because throw this you can easy to judge market situation i also believe on this its affective thing.
    Last edited by imbest; 04-12-2012 at 02:34 AM. Reason: back to back posts

Page 1 of 2 12 LastLast

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
Disclaimer
2005-2017 © FXOpen All rights reserved. Various trademarks held by their respective owners.

Risk Warning:: Trading on the Forex market involves substantial risks, including complete possible loss of funds and other losses and is not suitable for all members. Clients should make an independent judgment as to whether trading is appropriate for them in the light of their financial condition, investment experience, risk tolerance and other factors.

FXOpen Markets Limited, a company duly registered in Nevis under the company No. C 42235. FXOpen is a member of The Financial Commission.

FXOpen AU Pty Ltd., a company authorised and regulated by the Australian Securities & Investments Commission (ASIC). AFSL 412871ABN 61 143 678 719.

FXOpen Ltd. a company registered in England and Wales under company number 07273392 and is authorised and regulated by the Financial Conduct Authority (previously, the Financial Services Authority) under FCA firm reference number 579202.

FXOpen does not provide services for United States residents.

Join us