Author Archive

Posted on August 19, 2010 - by Chee Wan

Be your own boss

Forex trading involves dealing in international currencies. Here, one can sell currency of one country to buy that of another. The trader deals in Foreign Exchange [Forex] at the most appropriate time to profit from the transaction. Good ability to forecast plays a vital role here. One may wonder how Forex trading can be such a lucrative earning opportunity since fluctuations in exchange is so little.

But remember, when done in big volumes, a minor change can mean a lot. There are many non-monetary advantages to it as well. Anyone who wants to deal in Forex can do so, since only the basic knowledge is required for it.

Forex can help you earn a lot of money. But there are certain conditions to follow before trading in Forex. Firstly, one must have a thorough knowledge about the trends in the stock market, the basics of trading and risk-taking ability. You will get all the help you need for attaining these conditions very easily.

A good reason why Forex trading can be considered is the fact that there are frequent fluctuations in currencies, though in percentage terms it may be small.

You gain if the fluctuation favors you and the reverse holds true as well. No one can accurately predict the trend of the currencies. Liquidity is another reason why Forex trading is so popular. Read more…

Posted on August 16, 2010 - by Chee Wan

329 pips profits was generated for the 1st half Of August 2010

329 pips profit was generated for the 1^ST half of August 2010. 13 trades were executed: 8 trades won and 5 trades lost.

If you are trading 1 full contract (100,000) per trade, your profit for 329 pips will be around US$3290.

Here are the details of my trades:

1. USDCAD: 34 Pips Loss

Not looking good again, cut loss at 1.2010. Loss is 34 pips.

Original trade:

Buy USDCAD at 1.0244
Stop level at 1.0180
Target level at 1.0364 Read more…

Posted on July 21, 2010 - by Chee Wan

Forex Charts: How to make sense out of mountains of data

Every newcomer to the forex arena is confronted by information overload.  Every tutorial councils that to be successful you must have knowledge, experience and a disciplined approach to the market, free from emotional influences, but all of these efforts require an investment of time.  The fact is that forex trading requires specialized training and hours of practice to gain important experience before committing real money to the market.  There are no shortcuts in this business.  Preparation can begin with websites, articles, charts, tutorials, demo accounts, and training classes of all types and sizes.

One of the most important tools for forecasting financial market behavior is technical analysis, which is the chart study of past pricing movements in order to forecast their future direction.  Although the ability to use chart analysis has increased greatly over the past few years, it is anything but new.  Forex charts come in a variety of styles and types, most two-dimensional, some even three.  Let’s keep it simple and use the figure below as our guide, courtesy of one of many free educational papers on the web. Read more…

Posted on June 1, 2010 - by Chee Wan

Opportunity of a lifetime

In forex trading we have to analyse the fundamental and technical of a currency in order to make a trading decision.

Fundamental Analysis

There are 3 fundamental criteria to determine which currency to sell:

a) The currency must have low interest rate. Naturally investors want to invest in currencies for their yield. Hence those currencies that has higher interest rate will be attractive to investors. Those currencies that has low interest rate will be dumped by investors. Euro has interest rate of only 1% so Euro is not attractive to investors.

b) The nation has budget deficit. Budget deficit means that the nation is spending more than it earns. Eurozone is in a huge budget deficit now.

c) GDP growth is negative. Healthy GDP growth increases confidence to investment community and hence higher probability of capital appreciating. Contrary when GDP growth is weak, investors will dump the currency of the nation. Eurozone has a very weak growth growth hence investors will prefer to dump Euro rather than investing in Euro. Read more…

Posted on May 30, 2010 - by Chee Wan

312 pips profit was generated for the month of May 2010

312 pips profit was generated in the month of May 2010. 14 trades were executed: 9 trades won and 5 trades lost.

If you are trading 1 full contract (100,000) per trade, your profit for 312 pips will be around US$3120.

We do not have a single losing month since start of 2010.

Here are the details of my trades:

1. AUDUSD: 127 Pips Profit

AUDUSD has spiked up very strongly since yesterday. We may see a correction due to profit taking. So we decide to close our AUDUSD trade now at 0.8527, profit is 127 pips Read more…

Posted on May 13, 2010 - by Chee Wan

How do we trade Forex?

Risk comes from not knowing what you are doing.

There are 3 criteria to determine which currencies to buy:
a) The currency must have relatively higher interest rate than other currencies. Naturally investors want to invest in currencies for their yield.
b) The nation must have budget surplus. Budget surplus means that the nation is earning more than it spends.
c) GDP growth must be healthy and positive. Healthy GDP growth increases confidence to investment community and hence higher probability of capital appreciating.

After determine which currency to buy, we will check out the trend of the currency. The saying that “the trend is your friend” is always true. We will use our trend strategy to determine the medium term trend of the currency pair. It is easy to ride with the trend rather than the go against the trend. Move onto next step if trend shows uptrend. Read more…

Posted on May 7, 2010 - by Chee Wan

What is Forex Trading

Forex trading involves dealing in international currencies. Here, one can sell currency of one country to buy that of another. The trader deals in Foreign Exchange [Forex] at the most appropriate time to profit from the transaction. Good ability to forecast plays a vital role here. One may wonder how Forex trading can be such a lucrative earning opportunity since fluctuations in exchange is so little.

But remember, when done in big volumes, a minor change can mean a lot. There are many non-monetary advantages to it as well. Anyone who wants to deal in Forex can do so, since only the basic knowledge is required for it.

Forex can help you earn a lot of money. But there are certain conditions to follow before trading in Forex. Firstly, one must have a thorough knowledge about the trends in the stock market, the basics of trading and risk-taking ability. You will get all the help you need for attaining these conditions very easily. Read more…

Posted on May 4, 2010 - by Chee Wan

Danger about getting emotional about Forex Trades

Getting emotional in the stock market is the worst thing that can happen to investors. The same goes for Forex traders as well. Seeing paper losses in everyday trade is pretty common.

Once to take a decision to buy something and make losses, you still hold on even if situations turn from bad to worse, only because you feel that things might turn back in your favor once again. The main problem here is that, the decision to stick to a losing trade for a long time is an emotional one, since you are in no mood to accept a loss and get out of the trade.

Forex market is largely influenced by the general market and you must always trade on what the indications based on the market are, and not just initiate one since your heart tells you to.

At times, you might be so emotionally attached to a given currency in the Forex market, that most of your exposure to the Forex market would be in that particular currency. Read more…

Posted on May 1, 2010 - by Chee Wan

Learn Forex: How To Succeed In Forex Trading

The combination of a simple robust helping you to understand and trade with discipline is what forex trading is about.

You need to know what you are doing to trade with discipline. This translates into having confidence, which you definitely don’t get from someone telling you what to do. You get confidence by from your own knowledge and learning.

As you have to keep executing trading signals through losing periods, discipline is hard. This has to be continued till you hit a home run, even when the market is fooling you and taking your money.

What separates out your forex trading system from the 95% losers is your trading edge. You can answer what is your trading edge and how will it help you beat the majority. You don’t have one if you don’t know what it is.

Few succeed in the simple looking forex trading. These elements are present in the winners’ forex trading strategy: Read more…

Posted on April 27, 2010 - by Chee Wan

Forex signal provider Vs Forex education provider

Dear friends,

Often we receive email inquiries on our signal provider service. But we are forex educator provider and NOT signal provider. What is the difference?

Signal provider tells you when to buy and when to sell but they do not teach or explain to you why they do that. They do not want you to learn so you will need to rely on them forever.

We as educators provide trade signals, and we teach and explain to you why we had entered and exited those trades. This means that we provide the “fishes” as well as teaching you how to “fish”. We want to train you to become profitable and independent traders. Read more…