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.
by Ntombi Malatsi | Jul 20, 2015 | FOREX FOR BEGINNERS, FOREX TRAINING
Commodity currencies, what are they?
We all know about the majors and other types of currencies, but there are also those currencies that are referred to as commodity currencies/commodity dollars. Commodity currencies are heavily dependent on the export of certain raw materials. Listed below are the currencies which are raw material dependent.
Canadian Dollar (CAD).
Canadian dollar also nicknamed the loonie is highly dependent on oil since Canada is the second largest exporter of oil, the strength of economy depends on the prices of natural resources. The higher the price of oil the higher the loonie benefits, and the more disadvantaged the Us dollar becomes.
Australian Dollar (AUD).
Australia is one of the biggest producers of Gold, Iron, Aluminium and coal. GDP (Gross domestic products) is accounted for the falling and rising of gold prices. Australian dollar also nicknamed the AUSSIE or OZZIE is also dependent on this commodities, and by the way, trading Audusd is almost the same as trading gold, as the Aud follow the similar pattern to gold.
South African Rand (ZAR).
South Africa is also amongst the producers of Gold, the price of Gold is highly correlated to the price of the country’s currency, so there is a high correlation between Zar and Gold.
New Zealand Dollar (NZD).
New Zealand is not only dependent on one commodity, but a basket of a few. New Zealand is the big exporter of milk, meat and even fruits. New Zealand dollar is also nicknamed Kiwi. Commodity currencies are less liquid as compared to those currencies of the Uk ( GBP) and Japan (Jpy/Yen) or Euro Zone. When the interest rates are higher in Australia or New Zealand than Japan, the investors will then sell the Yen and purchase the Aussie (buy Audjpy) or they will sell the Yen ( Jpy) and purchase Kiwi (Nzd) buy Nzdjpy, they sell the weaker one, anyway this is what we do on the Forex markets, we buy the stronger currencies and we sell the weaker currencies, that is our general rule in Forex markets. here is to knowing a little bit more about the currencies that we trade. Thank you for stopping by, please share the post using share buttons below, more to come on currencies ,stay tuned.
by Ntombi Malatsi | Jun 18, 2015 | FOREX FOR BEGINNERS
What are the top reasons Forex traders fail:
That is a trillion dollar question and yet the answer lies in the simplest changes we can implement as Forex traders. There are so many factors that contribute to the high statistics of failure among Forex traders, just to name the few top reasons Forex traders fail, I have compiled a list below, it is not something new, you have probably read about it a thousand times before you read here,but still you have failed a thousand times, learning never stops, we keep learning every day as long as we are in this Forex market which keeps on changing.
Forex trading is a business just like any other business, it has its highs and lows. Big banks and successful professional traders do not aim for 200% return in a month, but retail traders do and that leads to disaster and failure.
- REFUSING TO ACCEPT LOSSES:
The truth about Forex market is that you will be wrong sometimes and be on the wrong side of things, it happens to all of us, we all have a losing trade sometimes, the problem is when we refuse to accept that. Traders are so patient in keeping the losing trades for longer periods instead of accepting that they were not right this time around, they keep holding on to a losing trade up to the point that it hurts their account, cut the losses and move on, there are plenty opportunities that the market might present later. Always remember that in this market, when one currency pair is in the fall, their other one is on the rise, opportunities are always there, all you need to do when you feel like you encountered losses for the day, walk away and see the next day, call it a day, never ever try to trade out of revenge to get back the loss, the market has a painful way of dealing with traders who are out for revenge.
- TRADING WITHOUT A PROPER PLAN:
By proper plan, I am not referring to your trading strategy, but a trading plan. You need to know exactly what you would do should you have strings of losses in one day, you need to plan ahead and know the currencies that you’ll be trading and which sessions you’ll be trading and so forth, that is the kind of planning I am talking about.I is highly impossible to run a business without proper planning and following up on your plan, failing to plan is planning to fail, if you are just trading without a plan you are selling yourself short and heading for disaster, it is OK if you are not trading everyday, it is not necessary , success is in quality, not quantity.
I love this one because so many times I tried to be clever, it all led to disaster. No one can corner the market. Without a doubt, the most expensive way to learn Forex trading is from your own experience and mistakes, but it really doesn’t have to be like that, if you are fortunate enough to have a Forex mentor who is not only teaching you but also sharing with you all the mistakes they went through, you should take advantage of that by making sure you do not repeat the mistakes they made, because believe me, the mistakes can be costly. No matter what everyone else does or say Forex trading is not a get rich quick scheme, it is definitely not for lazy minded, there is no need to use high speed, it kills.
- UNDERCAPITALIZED ACCOUNT:
I know this might sound contradictory, I believe success is not found in huge start up capital, if you can handle a $1 account you can do the same with $10 000 account, but the problem is when traders insist on trading large volumes with the account that cannot afford to, when traders refuse point blank to trade 0.01 but insists on trading 0.50 on a very small equity, that is where the undercapitalized thing come from, I think if you can’t handle the small lot size, please do add funds to your trading account so that you can afford to trade any lot size, after all, you are in business, if you feel like it is too small for you, do what you need to do, add more funds then trade your desired lot size.
Using stop losses play a big part in money management, I cannot say this enough, know the costs, know if you can afford to open more positions, do not risk too much, calculate your risk. I have gone through everything mentioned above. Thank you for stopping by and reading my post, if you find it helpful please kindly share using the share buttons below.
by Ntombi Malatsi | Jun 16, 2015 | FOREX FOR BEGINNERS, FOREX TRAINING
When Is The Best Time To Trade Forex?
Have you ever asked yourself why is it that sometimes the Forex market seems “sleepy” whatever you try to do seems like you are just wasting your time and efforts? now is the time to find out why. I have people asking me sometimes how do I cope with training others, running this blog and at the same time manage to trade my own account, it is simply because I do not just trade at random times, I choose my markets wisely, there are times that I do not trade.
It has been said that the Forex market is open 24 hours, 5 and half days a week, but still there are times when you just have to stay away from the Forex markets. It might seem like it is not important to know the best time to trade Forex, but it is.
=====>Trade with regulated brokers here.
When Should You Trade Forex And Why?
The best time to trade Forex is when the market is active which then means more volumes of trades are being made on the market. Actively traded markets create more opportunities to trade and make profits while calm and slow markets will actually waste time and efforts, they are kind of”sleepy”.
Many traders are not really taking this into consideration, they just trade at any time because of the fact that the Forex market is open 24 hours a day, but the truth is there are good and the not so good times to trade, some traders know this but they choose to ignore it anyway. Before we can talk about the best time to trade Forex, there are 3 things that I think every Forex trader should adopt:
- Make profits
- Keep profits
- Repeat
Forex Market Hours
The Forex market has no physical location where all the buying and selling take place, therefore it allows anyone from any part of the world to participate, when one market closes another market opens giving everyone across the globe an opportunity to get their share of this trillion-dollar pie, but you have to know the best time to trade Forex.
The Forex market consists of four sessions, they open and close at different times, see table below.
Now that you know the opening and closing times for each Forex market, you can make informed decisions on when will be the best time to trade Forex for you.
If you need to open a live account, for the safety of your funds, do it with a regulated broker HERE. For further assistance in terms of selecting the best broker for your personal needs, you can WhatsApp me on +27 78 144 6851
For more information on my private mentorship, see this post HERE.
It is also reported by many traders that EUR pairs and GBP pairs are mostly traded during the London session, till we meet again , thank you for stopping by and reading my post.
I hope you find this helpful, if you do please feel free to share it using the share buttons below.
by Ntombi Malatsi | Mar 26, 2015 | FOREX FOR BEGINNERS
Step By Step On How To Start Forex Trading
After so many articles posted on this blog, I figured that a lot of people are still clueless on how to go about starting Forex Trading. We talk about demo account and how good it is for practice etc, but still, many people do not have any idea of how to go about getting it. In this post I will keep it very brief and hopefully I’ll manage to keep it as simple and easy to understand as possible. Let me take you step by step on how to start Forex trading.
First step to start Forex trading is to get some education. Enrol for a short course if you have to. As much as there are thousands of free sites that cater for beginners, the truth is, everything seems so foreign and a bit difficult for a beginner to understand even though it is meant for beginners. Finding someone who will hold your hand is recommended. Your mentor or coach will probably recommend a broker that they are using, if you prefer your own, it is still fine, but when looking for a broker make sure that they are regulated and they are in good standing with the law.
It is also advisable to do some research on them. Google search them, find out what other users are saying about them, if they can be trusted and so forth. It is very important to know who you are dealing with and where your money will go. Remember they will be responsible for your funds and all the monetary transactions and activities that will take place during your Forex trading journey. Once you are satisfied with your findings, you can then open a demo account with them. Mostly they do assist through the process, but I still think it is just for the best to use what your mentor recommends because they have first hand experience with that particular broker.
Back to finding a mentor, I highly recommend this because I know how hard it is to self educate. Learning Forex can be tricky, especially if you are trying to learn everything by yourself. Enrolling for a course will save you money and time as you will only learn what is relevant.
Should you need private lessons, email ntombimalatsi@learnfxtrading.net or WhatsApp me for instant chat (you can use the WhatsApp feature found at the bottom right of this page). You can also check out all recommended brokers HERE. Thank you for stopping by. I hope you found this short post helpful. If you did, please kindly share with more people.
by Ntombi Malatsi | Feb 26, 2015 | FOREX FOR BEGINNERS, FOREX TRAINING
IS THERE ANY DIFFERENCE?
A lot of times I get people asking me what is the difference between Forex and Stock Market, ooh!! well I thought I should just write this very short article explaining the difference, I am mainly in Forex market. This article is not about Forex Vs Stock Market or which one is better than the other, it is just to clarify so that you may know the difference between Forex and Stock market and how they both operate or work.
FOREX MARKET:
- Forex market is NOT based on any business or investing in anyone’s business but currencies of different countries, there is NO physical or centralized location for this type of market, but it is legal and profitable though, online Forex brokers bring the buyers and sellers together and offer the trading platform where the buying and selling takes place.
- What is traded in Forex market can be easily turned back into cash very fast, Forex market is very liquid.
- Any investor from any country using any currency can participate in the Forex market because it is global.
- There is NO recession in Forex market, when one currency is on the fall, the other one is on the rise providing opportunities to BUY and SELL and make money in any market condition.
- There are NO expensive brokerage fees and the start-up cash is affordable and minimal.
- No need to investigate about company history.
- The fact that Forex market is not based on any business also play a big part in it being opened 24 hours 5 days a week giving anyone an opportunity to trade at any time, because when one market closes, another one is opening, market has four trading sessions that open and close at different times, buying and selling is located at different time zones and that is an advantage not to mention the money that can be made in this market (if you know what you are doing).
- Government and Central banks such as European Central bank, Bank of England and Federal reserve are frequently involved in Forex market.
- The amount traded in Forex market is so huge, it is basically in trillions and it is higher than any amount traded in any Stock market of any country, reason being the Forex market is a global market, but no one should just open a trading account without proper Forex training and understanding the global currencies.
STOCK MARKET:
- Stock market is based on businesses, and it can only be done in that particular country using the currency of that country.
- The brokerage fees are higher.
- Its operations follow the business hours, like closed on banking holidays and weekends.
- Stock market has limits on when you can place trades.
- In stock market you buy a share and can sell it if it appreciates in value.
- When trading stocks, you are trading shares of companies and you need to do a lot of research about those companies.
Thank you for stopping by, if you need more detailed information about Forex market, feel free to contact me Admin@learnfxtrading.net. I hope you find this post helpful, if you do , please kindly share it using the share buttons below.
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