by Ntombi Malatsi | Aug 11, 2015 | FOREX FOR BEGINNERS
There are so many lies told by Forex traders
After some few years of being in this industry, trading Forex market has been one industry that is mostly bombarded by scammers, I see people being lied to everyday, including my friends and family members, they just won’t listen even when I try to warn them, it seems like everyone who wants to run a pyramid scheme finds it very easy to hide behind the Forex umbrella. Forex trading itself is a legit business opportunity, but the truth is, not everyone can make it and it is definitely not for everyone, mental stability and approach has a lot to do with who will make it and who will not. Forex trading is fairly new in south Africa and unfortunately it seems to be attracting everyone who is looking for a quick buck, and people are becoming easy targets, I can blame that on the social media though and how it is presented to people by those who are doing it, it is exaggerated and glamorized, there is so much hype surrounding it and no one really care to tell it as it is, everyone is just painting a wrong picture, which says ” easy money”, everyone is sharing the end product, not the sweat that goes in before they actually made it and for that reason people who are new to this business are mostly excited about everything and anything, enough about that now, let me not delay any further and just get straight to it, listed below are some of Forex trading lies I used to believe, I am glad I grew up though and I stopped believing in them, I learned the hard way though. Do not believe any of these lies.
1.Forex trading is easy money
Truth: NO, definitely not, as much as there might be some truth in this statement but the reality is, you will have to know how to do it in order to make it, experience makes you even better, and knowing it won’t just happen after attending one seminar or following some forex group or forum, so please do not believe it.
2.To increase your chances of making money, you need to trade a lot everyday and even miss sleep
Truth : NO it is a big lie, you do not need to do that, I have done it, I have seen people doing it, I see people doing it even now, but still don’t make money, I did it also and I always felt the urge to trade, I felt super smart trading everyday until I realised I was being foolish. The thing is, everyone who is new to Forex trading suddenly feel like the whole world need to know that they are now traders and the social media need to be updated about every move they make and in the process they miss what is more important which is the fact that success in this business is not in quantity of trades but quality. And trading like crazy does not really make you more money, by making money I mean taking it out of your trading account and taking it home, that is what I mean.
3.Price movements on currencies are just random
Truth : NO it is a big lie, nothing happens randomly, the thing is, markets seem to respond to economic events that affect specific currencies, so NO it is not random, if we never had economic events there won’t be charts to read in the first place, because charts collects data from the past and report it to us, no economic event, no data and no charts, I have since learned that now, but I believed the lie for such a long time until I realised I don’t really like the surprises that I always got due to the price movements caused by an economic event that I knew nothing about. After all, currencies are prone to the increase of interest rates and all other important data released like GDP and retail sales in their respective countries.
4.Forex is like betting horses
Truth : NO, I might not know how the whole batting horses thing work, but I do know there are no economic events influencing the whole process of which horse wins or lose, I also know that when Yellen or Mario Draghi speaks or when NFP take place, the world of currencies react not horses. There might be some truth in this though especially when people treat Forex trading as some game that is played by people who love computers, I now smile as I write this one.
5.You can turn $200 into a whooping $10 000 in just a week trading Forex
Truth : NO this is the biggest lie, this statement is one of the biggest Forex trading lies, the one that makes people to go crazy out there whenever they see the word “Forex”. It is very possible I agree, but also very deceiving as it is not possible to do so with such small start-up cash, I am glad I stopped believing it. Gambling tendencies begin by believing this lie, being a realist saves me from trouble now, if you want to make $10 000 in a week, yes you can, but your start-up cash has to be higher as well definitely not $200.
6.All it takes to make money is to open a live account with a broker and boom!! start making money right away
Truth : NO, you might not need to have a degree in economics but you sure need some kind of education, and I see some people are so brave to just open a live account while they’ve never even heard the word currency before (guilty as charged, I did it also, I was deceived and lied to), some cannot even use a computer that is how bad the lies are. Do not believe this lie, find a mentor, funding a live account and depending on a broker to call you does not work, if you don’t know what you don’t know it is hard to learn or make sense of anything, that is where I started also, an hour call with a broker never really made me money, it works when you already know how to trade, otherwise you remain confused the whole time on the phone.
7.You can just open live account and buy the signals to succeed:
Truth : this one is not a total lie, but the bad thing about it is when you totally depend on paid signals and yet know nothing about trading, learn to take care of your own money, if you want to invest in Forex, invest in education first before investing money, otherwise you are going to donate it to the markets.
8.Forex trading is for men:
Truth : NO it is a lie, I don’t even need to say much, because I am a woman and I am a Forex trader, market does not care about gender.
That’s all for today, stay alert and stay smart, remember the market doesn’t know you exist, so trying to be clever is just a waste of time and money. Thank you for stopping by, you are loved and appreciated. Let’s blow the whistle by sharing this post using the share buttons below, let us stop the lies and enjoy trading financial markets, if you are currently being lied to, snap out of it and you will enjoy trading forever.
by Ntombi Malatsi | Aug 9, 2015 | ECONOMIC NEWS
Welcome to forex news for this week:
NAB BUSINESS CONFIDENCE:
Date released :10 August
Time released : 9:30pm NY ( 3:30am , 11 August south African time)
Currency affected : AUD
GERMAN ZEW ECONOMIC SENTIMENT:
Date released : 11 August
Time released : 5am NY ( 11am south African time)
Currency affected :EUR
AVERAGE EARNINGS INDEX:
Date released : 12 August
Time released :4:30am NY (10:30am south African time)
Currency affected : GBP
CLAIMANT COUNT CHANGE:
Date released : 12 August
Time released :4:30am NY (10:30am south African time)
Currency affected : GBP
CORE RETAIL SALES:
Date released : 13 August
Time released :8:30am NY (2:30pm south African time)
Currency affected : USD
RETAIL SALES:
Date released : 13 August
Time released :8:30am NY (2:30pm south African time)
Currency affected : USD
UNEMPLOYMENT CLAIMS:
Date released : 13 August
Time released :8:30am NY (2:30pm south African time)
Currency affected : USD
RETAIL SALES:
Date released : 13 August
Time released :6:45pm NY (12:45am, 14 August south African time)
Currency affected : NZD
GERMAN PRELIM:
Date released : 14 August
Time released :2am NY (8am south African time)
Currency affected : EUR
MANUFACTURING SALES:
Date released : 14 August
Time released :8:30am NY (2:30pm south African time)
Currency affected :CAD
PPI:
Date released : 14 August
Time released :8:30am NY (2:30pm south African time)
Currency affected :USD
PRELIM UoM CONSUMER SENTIMENT:
Date released : 14 August
Time released :10am NY ( 4pm south African time)
Currency affected :USD
This week seems quiet, not much is happening as far as the economic events are concerned, happy trading.
by Ntombi Malatsi | Aug 3, 2015 | FOREX FOR BEGINNERS, FOREX TRAINING
The most traded currency pairs in the Fx market:
Forex market is like a huge marketplace where investors buy stronger currencies and sell the weaker currencies. There are different types of currencies, but some currencies are traded more than others on a global scale, there are only a handful of currencies that are actively traded on the Forex market. Let’s have a look at the list of the most traded currency pairs in this market, currencies are traded in pairs hence we call them currency pairs, it is always one currency Vs another.
MAJOR CURRENCIES:
These currencies are paired with the Us Dollar and they are from major economies and they are highly liquid.
- Eur/Usd (Euro vs Us Dollar)
- Usd/Jpy (Us Dollar vs Japanese yen)
- Gbp/usd (Great Britain Pound vs Us Dollar)
- Usd/Chf (Us Dollar vs Swiss Franc)
COMMODITY CURRENCIES:
These currencies are also from major economies but they are called commodity currencies because they are heavily dependent on raw materials.
- Aud/Usd (Australian Dollar vs Us Dollar)
- Usd/Cad (Us Dollar vs Canadian Dollar)
- Nzd/Usd (New Zealand vs Us Dollar)
CROSS CURRENCIES:
These pairs are not paired with the Us Dollar:
- Eur/Jpy (Euro vs Japanese Yen)
- Gbp/Jpy ( Great Britain Pound vs Japanese Yen)
- Eur/Gbp (Euro vs Great Britain Pound)
WHAT ARE THE CONTRIBUTING FACTORS OF CURRENCY’S VALUE AND EXCHANGE RATE:
- Interest rates in the country increase the value of that particular country’s currency. The higher interest rates tend to attract foreign investment and therefore increasing the demand of the home currency’s value.
- Trade balance between imports and exports play a crucial role in the increasing of a currency value and exchange rates.
- Gross Domestic Products (GDP) is a big measure of economic health of a country and actually a gauge to a country’s standard of living, good or favourable numbers also increase the value of the currency.
- Country’s level of debt can be managed, but if not managed well it leads to higher inflation rates and that may trigger the official devaluation( deliberate downwards adjustment to the value of the country’s currency) as Forex traders we need to understand the world of currencies that we invest in before we can even think about investing money, education first. Thank you for stopping by, you are much appreciated, please do come around again and kindly share this post using the share buttons below.
by Ntombi Malatsi | Aug 2, 2015 | ECONOMIC NEWS
Welcome to Forex weekly news from Monday 03 to Friday 07 August.
MANUFACTURING PMI:
Date released : 03 August
Time released : 4:30am NY (10:30am south African time)
Expected figure : 51.6
Currency affected : GBP
ISM MANUFACTURING PMI:
Date released : 03 August
Time released : 10am NY (4pm south African time)
Expected figure : 53.6
Currency affected : USD
RETAIL SALES:
Date released : 03 August
Time released : 9:30pm NY (3:30am, 04 August south African time)
Expected figure : 0.5%
Currency affected : AUD
TRADE BALANCE:
Date released : 03 August
Time released : 9:30pm NY (3:30am, 04 August south African time)
Expected figure : -3.06B
Currency affected: AUD
CASH RATE:
Date released : 04 August
Time released : 12:30am NY (6:30am south African time)
Expected figure :2.00%
Currency affected: AUD
RBA RATE STATEMENT:
Date relesed : 04 August
Time released ：12:30am NY (6:30am south Arican time)
Currency affected: AUD
CONSTRUCTION PMI:
Date released : 04 August
Time released : 4:30am NY (10:30am south African time)
Expected figure : 58.6
Currency affected : GBP
GDT PRICE INDEX:
Date released : 04 August
Time released : tantative
Currency affected : NZD
EMPLOYMENT CHANGE:
Date releasee : 04 August
Time releasee : 6:45pm NY (12:45 05 August south African time)
Expected figure :0.5%
Currency affected : NZD
UNEMPLOYMENT RATE:
Date released : 04 August
Time released : 6:45pm NY (12:45, 05 August south African time)
Expected figure : 5.9%
Currency affected : NZD
SERVICES PMI:
Date released : 05 August
Time released : 4:30am NY (10:30am south African time)
Expected figure : 58.1
Currency affected : GBP
ADP NON-FARM EMPLOYMENT CHANGE:
Date released : 05 August
Time released : 8:15am NY ( 2:15pm south African time)
Expected figure : 218k
Currency affected: USD
TRADE BALANCE:
Date released : 05 August
Time released : 8:30am NY (2:30pm south African time)
Expected figure : -2.8B
Currency affected：CAD
TRADE BALANCE:
Date released : 05 August
Time released : 8:30am NY (2:30pm south African time)
Expected figure : -42.6B
Currency affected : USD
ISM NON-MANUFACTURING PMI:
Date released : 05 August
Time released : 10am NY (4pm south African time)
Expected figure : 56.4
Currency affected : USD
EMPLOYMENT CHANGE:
Date released : 05 August
Time released : 9:30pm NY ( 3:30am , 06 August south African time )
Expected figure : 12.5k
Currency affected : AUD
UNEMPLOYMENT RATE:
Date released : 05 August
Time releasee : 9:30pm NY (3:30am,06 August south African time)
Expected figure : 6.1%
Currency affected : AUD
MANUFACTURING PRODUCTION:
Date released : 06 August
Time released : 4:30am NY (10:30am south African time)
Expected figure : 0.2%
Currency affected : GBP
BOE INFLATION REPORT:
Date released : 06 August
Time released : 7am NY (1pm south African time)
Currency affected : GBP
MPC OFFICIAL BANK RATE VOTES:
Date released : 06 August
Time released : 7am NY (1pm south African time)
Currency affected : GBP
OFFICIAL BANK RATE:
Date released : 06 August
Time released : 7am NY (1pm south African time)
Expected figure : 0.50%
Currency affected : GBP
MPC RATE STATEMENT:
Date released : 06 August
Time released :tantative
Currency affected : GBP
GOV CARNEY SPEAKS :
Date released : 06 August
Time released : 7:45am NY (1:45pm south African time)
Currency affected : GBP
UNEMPLOYMENT CLAIMS:
Date released :06 August
Time released : 8:30am NY (2:30pm south African time)
Currency affected : USD
RBA MONETARY POLICY STATEMENT:
Date released : 06 August
Time released : 9:30pm NY (3:30am,07 August south African time)
Currency affected : AUD
MONETARY POLICY STATEMENT:
Date released :06 August
Time released : tantative
Currency affected : JPY
BOJ PRESS CONFERENCE:
Date released : 07 August
Time released : tantative
Currency affected : JPY
BUILDING PERMITS:
Date released : 07 August
Time released : 8:30am NY (2:30pm south African)
Expected figure : 2.6%
Currency affected : CAD
EMPLOYMENT CHANGE:
Date released : 07 August
Time released : 8:30am NY (2:30pm south African time)
Expected figure : 5.7k
Currency affected : CAD
UNEMPLOYMENT RATE:
Date released : 07 August
Time releasee : 8:30am NY (2:30pm south African time)
Expected figure : 6.8%
Currency affected : CAD
NON-FARM EMPLOYMENT CHANGE:
Date released : 07 August
Time released : 8:30am NY (2:30pm south African time)
Expected figure : 224k
Currency affected : USD
UNEMPLOYMENT RATE:
Date released : 07 August
Time released : 8:30am NY (2:30pm south African time)
Expected figure : 5.3%
Currency affected : USD
IVEY PMI:
Date released : 07 August
Time released : 10am NY (4pm south African time)
Expected figure : 56.2
Currency affected :CAD
What a busy week, thank you for stopping by, happy trading, keep it low risk always…
by Ntombi Malatsi | Jul 25, 2015 | FOREX FOR BEGINNERS
What is scalping:
The term used by Forex traders for quick opening of positions with the aim of profiting from daily volatility, and the positions usually last for about 5 minutes max, ranging from one minute.
Who is suitable for this type of trading:
Scalping Forex market can be highly profitable if done the right way, but be warned, this style of trading is not suitable for everyone, by the way, nothing is ever suitable for everyone. If you have all the time of the day (it doesn’t really have to be all day) to just sit in front of your computer and watch over those small moves on the market that happen during the day, you might just like Forex scalping. But if anxiety is your weakness, I mean if you are anxious person by nature, this style might not be for you. We all know that trading comes with some emotions that need to be checked always and be kept under control, anxiety is one emotion you don’t need here. Patience should be your middle name and also you should be a disciplined trader.
Downside of Forex scalping:
I am not sure if “downside” is the correct word to use, but this is what usually happen to market scalpers, they make a lot on those small moves for the whole day, they get super excited (take screenshots, post on social media) go back and trade more, get more excited as they make more profits, then they mess it all up by allowing it to get to their head, they increase positions, increase Lot size, trade more and increase volume some more, and BOOM!!! by the end of the day they lose all the profits made during the day on one trade if not the whole account, Yess just one trade , wipes all the profits, talk about the waste of time and effort, the feeling that comes after that, they feel stupid, ashamed, embarrassed and the statement posted earlier remains on social media, and the comments keep on coming, but in reality, all that was made during the day has been “given” back to the markets, I call this a “Yo Yo” trading game, I know it, been there done that, I do not blame this on scalping though, but on my own emotions, i would just get carried away and too much confidence i guess, i know maybe you are reading this and you are still doing the “Yo Yo” game or maybe you can relate to this, it is not worth it, if you have unchecked emotions, deal with those first then reconsider scalping again. But before you even think about it, do consider the following:
- Use the stop-loss and take profits ( it is good practice and it helps with discipline)
- Not all Forex brokers allow scalping on their platform, choose the broker who won’t penalize you for scalping, but usually they do mention if scalping is not allowed.
- Do not get carried away and think that increasing a Lot size is OK, as long as your equity has not increased so should your Lot size, it should remain the same, you cannot afford to increase it.
- Be tuned in on the daily Forex calendar, know exactly what is happening around the currencies that you intend to trade. If you are tuned in daily, you can really profit from the market movers (news events that take place almost on daily basis).
Which currencies respond better when scalping:
Major currencies: currencies from bigger economies e.g GbpUsd, UsdChf and EurUsd, they are broadly known for their liquidity and for being highly responsive to market “shocks”, that would be referring to the economic events that happen on daily basis, so whatever currencies you choose, you better be tuned in to Forex calendar and enjoy the ride, but most of all, keep your profits and take some money home, say no to “Yo Yo”trading please. Thank you for coming here, you are much appreciated, please share the post using share buttons below.
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