THE
FUNDAMENTAL
The
foreign exchange market, also referred as “Forex” is the largest financial
market in the world today with a volume of about $4 trillion a day if you
compare that to the $25 billion a day volume that the New York Stock Exchange
trades, you can easily see how enormous the foreign exchange really is.
What
is traded on the foreign exchange? The simple answer is MONEY. Forex trading is
the simultaneous buying of one currency and selling of another. Currency are
traded through a broker or a dealer, and traded in a pairs, for example the
Euro and the US dollar (EUR/USD) or British pounds and the Japanese Yen
(GBP/JPY).
The
forex is considered as Over The Counter (OTC) or Inter Bank Market, the entire
market is run electronically, continuously over 24 hours period 5 days in a
week. It starts from Sunday 10pm through Friday 9pm. The rising of internet in
the late 90’s open this opportunity to retail trade.
Forex
is a very lucrative business yet most people fail in it. Timing is one thing
that would actually determine your success in the Binary/Forex market and that
is why it is important to know the best time to trade the market, the best time
with regards to activity, volume of trade, preferred indicators software, time
frame, trading strategy etc.
THE MAJOR CURRENCY
PAIRS ARE:
EUR/USD
– Euro versus US Dollar ………………………………. 7am – 5pm
GBP
/ USD – British Pound versus US Dollar ………………… 8am – 5pm
USD
/ JPY – US Dollar versus Japan Yen ……………………….. 12pm – 5am
RULES OF FOREX AND
BINARY OPTIONS TRADING.
Get
ready to trade as early as from 6am – 10am Euro Market, 11am – 5pm US Market
& 12am – 4am Asian Market and what you need to do is to find high price
(Trending).
MONEY MANAGEMENT / RISK
CONTROL FOR TRADER.
Unless
a trading system is 100% accurate in all cases, a sound system of risk
management and skill control has to be part of it. If you have poor money
management skill, you could have the best trading system in the world, that is
right 90% of the time, and you can still lose some part of your money.
On
the other hand, with good money management skills, you could have a fairy
inaccurate system and still get respectable returns. Money management is so
important that, studies have shown that up to 90% of the variance in fund
manager performance can be directly attributed to it. For, “in every business,
one must expect failure.” (To serve a great cause, you must first learn how to
control your emotion).
Set
your own profit target, for example on binary account between 10-20% of your
capital and on forex 10pips – 20pips for your daily trading volume and exit all
trades as soon as you reach your profit target- do not place another trade or
wait until the software gives you an opposite signal. This is the safest way to
trading and reduces your risk.
HOW TO USE THE INDICATORS
SOFTWARE.
If
you want the software to be profitable for you- follow all the trading rules.
If you don’t
follow
even one of the rules below- I cannot guarantee you a respectable returns. I
agree and
understand
that it is not easy to be a disciplined trader and always follow the rules- but
we have
to
do it. Otherwise you will not be able to make a consistent profit with any
software or
indicator.
Exit trades when the software issue the opposite trading signal, before the
market
reverses.
RULE
#1
Money Management
What
is Money Management and risk control is the portion of one’s business plan
(Trading System) that tells you how much you can risk on one trade, what amount
of risk you should be willing to take?
A
proper money management component of your business plan not only assures you
longevity simply by not allowing large positions, but also by removing
significant psychological barriers in trading.
RULE
#2
Uses of Indicators
Software
Try
to use the indicators software only during the London, Euro and US or Japan
Sessions (start 1-2 hours before the opening is fine) It is risky to use the
signals (not only this one but all others as well!) on a week/slow market-
outside recommended London, Euro and US or Asians Sessions, Any indicators
software may not work properly in a weak market, this has been proven many
times.
Use
30mins chart for entry and 4hrs chart to confirm the trend of position which
you are planning to trade.
RULE
#3
Trading Account
The
first thing that you have to decide is the size of your trading account. It is
advisable that your trading account must be separate from your investment
account. It should be a small portion perhaps 10% to 20% of your trading
account (capital).This is your high-risk business.
Never
mix your trading account with your investment accounts.
RULE
#4
Trend: A clear strong trend.
-
Identify a current trend. Remember?
(The trend is your friend)
- Ignore all signals against a current
trend!
Example:
Trend
is up – but you get a “sell” signal (ignore it!)
Wait
for a “buy” signal to enter.
Do
not trade on a side (side ways trend)- ignore all signals.
RULE
#5
Currency Pairs:
GBP/JPY,
EUR/USD, GBP/USD, USD/JPY and all other major pairs.
(GBP/JPY-
is great pair to start with)
RULE
#6
Time Frames
1-min, 5-min, 15-min, (risky!)
30-min, 1-hurs, 4-hurs,
1-day
time frames are good.
This rule is extremely
important-
MUST
follow rule. If you don’t follow this rule- you may fail.
SPECIAL TRAINING ON FOREX AND BINARY TRADING SYSTEM.
UWNT TRADING SYSTEM
Contact: Email:
uwntrading@hotmail.com Phone: +2348035492460, 08112467260.
