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Forex Trading

Most of the people contacted me through my contact form in www.techblaster.net  and asked me to write some articles on basics of Forex trading. They further mentioned that most free sources gives advanced tips on Forex trading but no one is giving the basics. Since I am a Forex trader for more than 2 years duration, I decided to write some posts about the basics of Forex and how to trade in foreign exchange market through this blog.  The content of this blog is more than enough to be a profitable Forex trader, but not enough to become a best Forex trader. Because no theory can develop the skills of a person. So what you have to do is practice on demo account by using one indicator at a time and find out the best combination that works for you. Because the combinations are differ from one person to another. The most important thing is you should not trade on real money until you are competent enough to make profits. So you can practice on demo accounts until you get 80% of your trade
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Fundamental and technical analysis

Home     Previous lesson     Next lesson Well this is fifth lesson you are going to learn about Forex through my blog. This is one of the most important lessons that you must know in Forex trading. Analysis is the key to success in Forex trading. There are hundreds of robots that analyze the Forex market. But most Forex robots are not working in such a way that we expect. So my personal advice is not to get caught those sucking Forex robot. Be confident enough to make your own analysis by learning Forex. Anyway let’s starts the new lesson now. There are basically two type of analysis. My personal experience is both are equally effective and interrelated.  By name they are, 1.     Technical analysis 2.     Fundamental analysis By reading the following you can get and overall idea on technical and fundamental analysis, but you will learn technical analysis in details in our future lessons. Because your trading is mainly depend on technical analysis rather than fundamental analysis. L
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How to select a Forex broker

Home    Previous lesson    Next lesson Up to now you already completed three lessons.  This is the forth and one of the most important lesson. But it is a small lesson. Let’s see who are the Forex brokers? Forex brokers are kind of facilitators who are providing you the opportunity to access in to Foreign exchange market. For their service they charged a commission which is calculated according to the market spread of a currency pair. Spread means the difference between buying and selling values. You don’t worry to know and calculate those values. Because before you end the trade they will show you the figures. Simply you should memorize if the spread is high you have to pay more at the end of the trade. See the following example EUR/USD     Buying value= 1.2456                    Selling value = 1.2453 So the spread       = 1.2456 – 1.2453                            = 3 pips Now you know the number of pips. So now you can calculate amount of money that represent 3 pips. Then see
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Forex Requirements and Market Hours

                                                                        Home      Previous lesson      Next lesson There are several requirements for Forex trading. You don’t need things that cost you too much. But you should several fundamental requirements. They are; 1.        A computer with high speed internet connection Don’t start with a dial-up internet connections, because you should see the currents rates not the past rates. Your platform should synchronize the data with live market. If you late for few minutes, you may lose everything you have made.  This can happen frequently during busy hours. 2.        A Forex broker The broker provides you the opportunity to access in to the Forex market through their platform. You should download it for free. Then you have to deposit in to your account and then start trading. But be careful to select a Forex broker. Always read their policies carefully. Other thing is first try with demo account, if you feel it is difficult to handle
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Forex Pips and Forex Leverage

Home     Previous lesson   Next lesson    I think you have done with first lesson. If so this is the time to head into the next lesson. I named it as More than introduction, because it is a part of introduction but it is bit advanced than an introduction. Here I am going to discuss about Pips and Leverage. What are PIPS A "pip" is the smallest unit of a any currency pair. Because of this, that is the smallest currency value can be moved up or down in Forex market. Just see an example. Eg: In GBP/USD currency pair, an increment from 1.2675 to 1.2676 is a 1 pip. That mean if the value moves by 0.0001 is known as a movement of one Pip.  But there are exceptions like USD/JPY, changing of it's value is considered only up to second decimal point. So  movement of 0.01 is known as one pip in USD/JPY.  Lets see what is the important of a Pip. The profit is calculated by amount of pips you have earned during a one trade. To calculate these we need to know "Pip Value&quo
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Introduction To Forex Trading

Home   Next lesson Well this is the first lesson you are going to learn. So I think it is important to know the basics of Forex. Let's see what is Forex? Forex or foreign exchange market is the largest financial market in the world which exchanges more than 3 trillion of dollars per day. When comparing with New York stock market Forex is a huge member of financial markets. Let's see what are you going to trade in Forex market? As you know you can buy a house for 1000$ and then you can sell it for 1250$. The profit is 250$. In that business you bought house physically. Same thing is happening in Forex market as well. You will buy a currency (actually currency pair) and you will sell it once the price increased. The exception is in Forex you will not buy any currency pair physically. You only invest and looking for price movements and sell when you got profit.  Well now you will ask why you should learn Forex. Why can't I start it just now? Yes you can start just now. But I
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