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What is Forex

Forex – Does it sound familiar? 

Traveling to other countries is fun. You get to visit several spots and other beautiful places. However, traveling needs money to pay your tickets, foods, and hotels. Right? In order for you to pay those bills including taxes, you need to have the currency of the country where you in. Therefore, you need to find a money exhange booth or counter to make your money (dollars) be converted into local currency.

Forex booths can be found in every country, (or you can also do it before leaving your own country). These counters have several exchange rates for different currencies. Dollars usually have bigger exchange rates when used in other countries, like the Philippines. For every $1, you get around 40-45 pesos. That’s a lot, isn’t it? Therefore, if you have $10, then you’ll get around 400 – 500 pesos in exhange. With that amount, you can already buy 10 cans of soda. How do you feel about that?

That action is a simple participation in forex market and exchange. It’s like buying something from a seller. In this case, it’s a money. You exhange your $ to a Peso. It’s like selling your dollar and buying a Peso. That’s just simple. 

Now, what will happen if you have some more Pesos left in your pocket or wallet, and you are now heading back to your country? I’m sure you can never use that Peso in your country. The best thing to do is to exchange that remaining Pesos to US dollars, right? However, don’t get surprised if you see that the exchange rates are now different than what you had previously. You may get a lower amount or a higher one. Again, this fluctuation in exchange rates allow you to make even more money. This is also the reason why many people participate in the forex market.  When participating to Forex Market, you need to have a clearer understanding about the basics. This will be your key to success. 

Now, what is FOREX?

FOREX or foreign exchange market is considered to be the largest financial market in the world. If you are going to take a look at the New York Stock Exchange, you’ll be amazed of the $74 billion a day trade volume. Now, what’s that compared to the $4 Trillion a trade volume in the foreign exchange market? It’s too small, right? 

To make this a little clearer, let’s use some logic & representation.

Let’s say, the New York Stock Exchange trades a daily volume of $74 billion. That would look like this:

New York Stock Exchange $74 Billion

If you are a person who always keeps on watching News and Current Affairs, like CNN or Bloomberg, you’d probably here about weather, sports or market. It usually discusses several stock markets from different cities or even countries. You might have heard of NYSE, which means New York Stock Market. Again, NYSE trades $74 billion daily volume. Does it sound big? 

If NYSE is big, what more if it’s Forex Market? Look what happens below:

Forex Market

See? It only means that Forex Market is far much bigger compared to a local stock exchange.

Let’s take a look at the average daily trading volume for the (New York Stock Exchange) NYSE, Tokyo Stock Exchange (TSE), and London Stock Exchange (LSE):

Forex

Notice the difference of the numbers? Forex Market is definitely huge and bigger that any other stock exchanges.

However, you need to remember that this $4 Trillion number covers the entire global forex market. This only proves that forex market is indeed big!

So, what do you think about Forex Market? 

Anyway, that’s just one of the basic things about Forex. Now, what exactly do you trade in the forex market? We’ll find out in the next discussion.

For more details about Forex and Forex Signal, please check out our videos here.

Next Lesson: Why Trade ForexAdvantage of Forex

Keep Your Day Job with Set it and Forget it Forex Trading – Forex Wwing Trading Strategies

The Mother of Forex Trading Strategies – Trade from the Daily Charts

Forex-trading-strategies-gbpjpy-daily-chart

Forex trading Strategies: Sometimes choosing the right Forex trading strategies in your Forex trading can be very overwhelming. There seems to be 1,000,001 traders out there telling you that they have the best Forex trading strategies for beginners and pros alike. So the question is this…”Josh, if I want to improve my Forex trading today, what are the best Forex trading strategies that I can implement..TODAY! I am going to show you one of the best Forex day trading strategies you can use.

Most Forex traders change Forex trading strategies like they change their underwear. They always seem to be search for the “holy grail” of Forex trading strategies. And of course I personally believe that the “holy grail” of Forex trading strategies is developing a proper money management plan. But once a trader has their equity management plan and they learn how to trade simple support and resistance from key levels, most of the problems that I see with traders who are struggling with their Forex trading come down to the chart time frame they are trading.

For some reason I see newbie traders trying to trade from the 5 minute charts, trying to scalp the market, and are getting slaughtered. Though trading from the 5 minute charts works well if you are scalping the market, the lower time frame charts can also cause a lot of stress because of the quick movements it can make. So whether you are a complete Forex beginner or you are a seasoned trader who may be struggling with your Forex strategies. I am going to give you my Forex strategy secrets. I am going to suggest that you scrap the lower time frame charts and adopt one of the best Forex trading strategies…start trading from the daily charts.

The reality is the lower the time frame of your chart the more “noise” you are going to see. Let’s take a look at a 5 minute chart on the GBP/JPY. If you look at the chart below, though it is not impossible to trade most of the potential trade opportunities are going to be quick, aggressive, and will offer a unfavorable risk/reward. And unless you are a very skill as a Forex scalper, trading from the 5 minute charts is NOT one of the greatest Forex trading strategies you can implement. Price action can be very bouncy on these lower time frame charts. You can see that price is jumping around without much of a definitive direction.

forex trading stragies - 5 Minute chart

Forex Trading Strategies : The Daily Chart

Now let’s take a look at the same currency pair on a daily chart. Each one of these candles represents an entire day. Now, if you are trading from the 5 minute charts you need to be in front of our charts constantly in order to find a solid trade. But when you trade from the daily charts you can plan way in advance what your trade will be because you are going to be taking your trades from key levels. Trading from the daily charts allows you to clearly see when you would find potential trade setups and plan your trades accordingly. We will get more detailed on other Forex trading strategies such as trading from key support and resistance levels and price action on how and where to enter these trades from the daily charts. But for now, I just want to drill into your head to start trading from the daily charts.

Forex-trading-strategies-gbpjpy-daily-chart

 

Forex Trading Strategies: Using Heiken Ashi Candlesticks

Now, I am not going to get too detailed on one of my favorite Forex trading strategies when trading from the daily charts. And that is the use of Heiken Ashi Candlesticks. In a nutshell, Heiken Ashi candlesticks help to clear out some of the “noise” from the charts. If you look at the chart above you will see standard Japanese candlesticks. Red candles mean price went down for the day and green means price went up for the day. You can see that the color of the candlesticks can sometimes change from day to day. Now look at the chart below. This is the exact same chart as the chart above but I changed the candlesticks to Heiken Ashi. Do you see how much smoother the chart looks? I will be writing another article on using Heiken Ashi candlesticks shortly.

Forex trading strategies gbpjpy daily heiken ashi andlesticks

So in a nutshell folks, if you are struggling with your Forex trading, trying utilizing one of the simplest of Forex trading strategies..start trading from the daily charts. For more Forex trading strategies visit our YouTube Channel. You can also register for free to receive Free Forex training., Forex trading strategies and Free Forex Entry Strategies here.