Pengenalan Forex

Disini, admin akan berikan penerangan ringkas tentang Forex agar anda semua lebih memahaminya tetapi jikalau anda inginkan kefahaman secara lebih mendalam, sila rujuk "Sejarah Forex Trading" dan "Ringkasan Pengenalan Forex" (dengan klik tajuk tersebut) yang telah disediakan oleh admin.

Ringkasan tentang FOREX boleh diterangkan seperti berikut:

• FOREX – FOREIGN EXCHANGE.
• FOREX wujud sejak tahun 70-an.
• Lebih 4,500 BANK dari SELURUH DUNIA turut BERDAGANG dalam FOREX.
• Pasaran FOREX dibuka 24 JAM sehari, 5 HARI SEMINGGU.
• Pasaran DUA HALA – Boleh menjana keuntungan ketika pasaran NAIK (BUY) atau TURUN (SELL).
• Pasaran tidak dikawal oleh mana-mana INDIVIDU, ORGANISASI, SYARIKAT atau NEGARA.
• FOREX adalah PERDAGANGAN TERBESAR DUNIA dengan jumlah dagangan harian melebihi 5 TRILLION SEHARI (tahun 2014).

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Six Steps Creating A Trading Plan

The main focus of this article is to guide you through the process of developing your system. While it doesn't take long to come up with a system, it does take some time to extensively test it. So be patient; in the long run, a good system can potentially make you a lot of money.

Step 1: Time Frame

The first thing you need to decide when creating your system is what kind of trader you are.

Are you a day trader or a swing trader? Do you like looking at charts every day, every week, every month, or even every year? How long do you want to hold on to your positions?

This will help determine which time frame you will use to trade. Even though you will still look at multiple time frames, this will be the main time frame you will use when looking for a trade signal.

Step 2: Find indicators that help identify a new trend.

Since one of our goals is to identify trends as early as possible, we should use indicators that can accomplish this. Moving averages are one of the most popular indicators that traders use to help them identify a trend.

Specifically, they will use two moving averages (one slow and one fast) and wait until the fast one crosses over or under the slow one. This is the basis for what's known as a "moving average crossover" system.

In its simplest form, moving average crossovers are the fastest ways to identify new trends. It is also the easiest way to spot a new trend.

Of course there are many other ways traders' spot trends, but moving averages are one of the easiest to use.

Step 3: Find indicators that help CONFIRM the trend.

Our second goal for our system is to have the ability to avoid whipsaws, meaning that we don't want to be caught in a "false" trend. The way we do this is by making sure that when we see a signal for a new trend, we can confirm it by using other indicators.

There are many good indicators for confirming trends, but Pipsurfer really likes MACD, Stochastic, and RSI. As you become more familiar with various indicators, you will find ones that you prefer over others, and can incorporate those into your system.

Step 4: Define Your Risk

When developing your system, it is very important that you define how much you are willing to lose on each trade. Not many people like to talk about losing, but in actuality, a good trader thinks about what he or she could potentially lose BEFORE thinking about how much he or she can win.

The amount you are willing to lose will be different than everyone else. You have to decide how much room is enough to give your trade some breathing space, but at the same time, not risk too much on one trade. You'll learn more about money management in a later lesson. Money management plays a big role in how much you should risk in a single trade.

Step 5: Define Entries & Exits

Once you define how much you are willing to lose on a trade, your next step is to find out where you will enter and exit a trade in order to get the most profit.

Some people like to enter as soon as all of their indicators match up and give a good signal, even if the candle hasn't closed. Others like to wait until the close of the candle.

One of the bloggers here in BabyPips.com, Pip Surfer, believes that it is best to wait until a candle closes before entering. He has been in many situations where he will be in the middle of a candle and all of the indicators match up, only to find that by the close of the candle, the trade has totally reversed on him!

It's all really just a matter of trading style. Some people are more aggressive than others and you will eventually find out what kind of trader you are.

For exits, you have a few different options. One way is to trail your stop, meaning that if the price moves in your favor by 'X' amount, you move your stop by 'X' amount.

Another way to exit is to have a set target, and exit when the price hits that target. How you calculate your target is up to you. Some people choose support and resistance levels as their targets.

Others just choose to go for the same amount of pips on every trade. However you decide to calculate your target, just make sure you stick with it. Never exit early no matter what happens. Stick to your system! After all, YOU developed it!

One more way you can exit is to have a set of criteria that, when met, would signal you to exit. For example, you could make it a rule that if your indicators happen to reverse to a certain level, you would then exit out of the trade.

Step 6: Write down your system rules and FOLLOW IT!

This is the most important step of creating your trading system. You MUST write your trading system rules down and ALWAYS follow it.

Discipline is one of the most important characteristics a trader must have, so you must always remember to stick to your system! No system will ever work for you if you don't stick to the rules, so remember to be disciplined.

Oh yeah, did we mention you should ALWAYS stick to your rules?

Source: Baby Pips

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Forex beginners...

Your success on Forex does not depend but on your experience and emotional stability. However, hopefully this essentials thing shall make your way to it smoother with the help of the following recommendations.

1. Go for the basics

First of all, one should acquire profound knowledge of financial markets and technical analysis, to realize the laws according to which Forex functions and how to make profit on it.

2. Start with a demo account

Starting trading on real accounts straight away does not help to obtain the abovementioned knowledge. While you are busy learning the basics, your capital is literally melting due to your lack of experience. You have a great opportunity to train your strategies on a demo account for a month or more. It is impossible to become a professional trader at once.

3. Get to know trading instruments

Before beginning work on the market, you should thoroughly examine the technical characteristics of the trading platform you chose and make everything clear. It will then help you to save much time and money.

4. Learn your rights and liabilities

Read carefully the documentation, regulating the relations between you and your broker and make sure you have understood everything. You have the right to know all the information concerning your work on the currency market.

5. Begin with small steps

You can employ micro forex accounts to start with. Assess your skills and abilities and develop them further operating with minimum investments.

6. Keep your cool

Do not go beyond your psychological comfort zone: if you feel that you are losing your cool, pass to smaller amounts.

7. Do not play with fire

Do not treat Forex like a money gambling game. As a rule, men of fortune do not manage to stay on this market long. You want forex work to bring you stable income. So, do not ever follow the “sink or swim” principle. Do not put at stake amounts you cannot afford losing.

8. Recognize your defeat

You should keep in mind that losses as such are usual constituents of trading on Forex. Make your conclusions and take a philosophical approach to this fact.

9. Trade within the set limits

Do not strive for opening as many deals as possible: you may fail to control them all. Trade rationally. Trading on several markets simultaneously is rarely successful at first, since they are regulated by different independent factors.

10. Save the money rather than boost

Bring your risks to minimum, even if it results in less profit. Your aim now is to learn how not to waste your capital. At the beginning stage, “saving” is much more important than “boosting”.

11. Consider possible risks

There is always a possibility of unexpected risks. You should have a certain financial reserve so that you could use it in case of a force-majeure situation. Analysts suggest investing not more than 50% of the total capital in trading and not over 10% - in a deal. Ponder over what part of these funds you feel ready to lose in case of bad luck. Set your own level of admissible risk (preferably, not over 5%).

12. Mind Stop Loss

Do not forget to employ Stop Loss. Improper assets management is the major reason for losses. Stop Loss is meant for preventing your losses, so learn to handle it and set it correctly.

13. Keep away from others’ influence

Elaborate your own strategy. Be careful to change it following someone else’s advice. One can carry out one deal only for the whole year and appear to be more successful than many intraday traders. There is no any system suitable for everyone. No one but you bears responsibility for you capital. Once you have shaped your own vision of forex trading and strategy, be critical to what others say to you. Otherwise, you may then regret having followed someone’s recommendation.

14. Control the situation

A profitable deal may in fact turn out to be unprofitable. If the trend seems favourable to you, thoroughly monitor your open positions, shift stop signals to protect your profit.

15. Do not go against the trend

Remember: trend is your friend. Hoping to earn profit, some invest their money when the trend is moving in an adverse direction. Yet, such a strategy is extremely perilous for a beginner!

16. Retreat if not sure

If the situation development falls short of what you have expected, close your positions. You should understand what is going on on the market, as haphazard actions are unreasonable. If you do not feel sure, retreat for a while. Do not waste your time trading unprofitably and do not attempt to have your money back at once. Keep energy to yourself.

17. Make a script of your trading

Fix all you do on the market in writing. It helps to develop analyzing skills. Write down the explanations of this or that decision you made, description of its effects and the conclusions you drew.

Source: Sabah Forex

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What is "Institute For Supply Management - ISM"?

A non-profit organization that serves professionals, who are employed in the supply management profession. The Institute for Supply Management provides educational resources to its members, as well as creating industry standards. ISM polls its members about factors affecting their business, compiling this information in reports, such as the Purchasing Managers Index (PMI).

BREAKING DOWN 'Institute For Supply Management - ISM'

The organization was initially called the National Association of Purchasing Agents, when it was founded in 1915. The name was changed in 2002. ISM also created the Certified Professional in Supply Management (CPSM) certification.

Source: Institute For Supply Management (ISM) Definition | Investopedia 

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What is "The Manufacturing Purchasing Managers' Index (PMI)"?

The Purchasing Managers' Index (PMI) is an indicator of the economic health of the manufacturing sector. The PMI is based on five major indicators: new orders, inventory levels, production, supplier deliveries and the employment environment. The purpose of the PMI is to provide information about current business conditions to company decision makers, analysts and purchasing managers.

BREAKING DOWN 'Purchasing Managers' Index - PMI'

The information to produce the PMI is gathered using monthly surveys sent to purchasing executives at approximately 300 companies. A PMI of more than 50 represents expansion of the manufacturing sector when compared to the previous month. A PMI reading under 50 represents a contraction, and a reading at 50 indicates no change. The Institute of Supply Management (ISM) generates the PMI each month. Although the ISM publishes several indexes, the PMI is the most widely followed and is sometimes referred to as the ISM index.

How PMI Impacts Management Decisions

PMI is a critical decision-making tool for managers in a variety of roles. An automobile manufacturer, for example, makes production decisions based on the new orders it expects from customers in future months. Those new orders drive management's purchase decisions about dozens of component parts and raw materials, such as steel and plastic. Existing inventory balances also drive the amount of production the manufacturer needs to complete to fill new orders and to keep some inventory on hand at the end of the month.

Suppliers also make decisions based on PMI. A parts supplier for a manufacturer follows PMI to estimate the amount of future demand for its products. The supplier also wants to know how much inventory its customers have on hand, which also impacts the amount of production its clients must generate. PMI information about supply and demand affects the prices that suppliers can charge. If the manufacturer's new orders are growing, for example, it may raise customer prices and accept price increases from its suppliers. On the other hand, when new orders are declining, the manufacturer may have to lower its prices and demand a lower cost for the parts it purchases.

A company uses all of this PMI information to plan its annual budget, staffing levels and to forecast cash flow.

Factoring in Imports and Exports

PMI also provides information on imports and exports, which are important statistics for businesses that operate overseas. Assume, for example, that the automobile manufacturer purchases steel in the United States and from China. If imports are increasing, that trend will have a negative impact on U.S. firms that sell the same product. On the other hand, if exports by parts manufacturers are increasing, a parts supplier may demand higher prices from U.S. companies that need to purchase its products.

Source: Purchasing Managers Index (PMI) Definition | Investopedia

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How Does It Feel to Be a Professional Full Time Forex Trader?

Some people start learning and trading forex while they already have a job and income. They want to generate an extra income to have a better living. Some others have no job and income, and want to make money through forex trading as a full time job.

The first group, will finally become a full time forex trader, if they succeed to make money through forex trading and become a profitable forex trader, because they will see that they can easily make more money through forex trading compared to the job they have. The second group will also become a full time professional forex trader if they finally achieve to become a profitable forex trader.

You have heard that 95% of the traders lose, and many of them finally give up and will never become a profitable forex trader. This is true, but it is not a shocking fact, because it is the same with all the other businesses. 95% of the small businesses are doomed too.

The fact that 95% of the traders lose, is not something that can prevent you from learning forex, because there is always a high probability that you fail and you can not make any money through any other business that you try. This is not a reason for staying away from forex. If you do it, then you have to stay away from any other business too.

Forex trading is a great opportunity for everybody to make money, no matter if you already have an income or not; No matter if you are educated or not; No matter if you are already wealthy or you have no money at all. You can learn to trade forex and make money for free.

Once you can achieve to make money through forex trading, and you feel the joy of sitting at your laptop and making money working few minutes per day, you will come to this conclusion that you have been too lucky that you have chosen to become a forex trader. If you choose the right way and you succeed to become a “consistently profitable” forex trader, you will see that forex trading is the best business one can ever have:

1. There is almost no limit in the amount of the money you can make. You can grow your account and make more money month after month.

Compare this to the other businesses. You can run a restaurant and make a lot of money, but the amount of the money you make through a restaurant or businesses like it, cannot go beyond a special limit. A restaurant with 12 tables can not make money more than a special limit even if it becomes a too busy restaurant. If you want to double your income, you have to double your restaurant size, which is not cheap and easy to do.

What about forex? You can open a small account, grow it steadily and patiently, and increase your income every month. I am not saying there is no limit in forex trading at all. There is a limit here too, but this limit will not be reached so easily.

2. You don’t have to have a lot of money to start a forex trading business. Once you get ready to start live trading, you can open an account as small as $1-2000 and grow it, until it turns into a reasonable account balance. Some people think that in order to trade forex professionally, they have to have a $500,000 account at least.

This is not true at all. Read this: A Great Money Management Strategy We Have Been Following For Years

Compare this to the other businesses. To run a small business, you have to buy or rent a place. It needs a lot of money. To rent a place, usually you have to sign a 5 years contract. No matter if you make profit or not, you have to pay the rent. If you want to shut down the business, still you have to pay the rent, unless you find another tenant. You can not dissolve the rent contract otherwise. You have to spend a lot of money on the other things. You have to pay for utilities, services, transport, cleaning, insurance, furniture, decoration, marketing, advertising, gas (you have to drive to work every day), and… .

Depend on your business size, you will have to hire employees. You have to deal with the customers and clients. You have to spend several days, weeks, or even months to launch, and then at least 8 hours per day to maintain the business. You have to do all of these while still you don’t know whether you will make any profit or not.

What if the business you are spending too much time and money to run, doesn’t work and make any profit? You will have to shut it down, and so, most of the time and money you have spent on it will go down the drain. As I said, 95% of the small businesses fail. Refer to a local mall and talk to the businesses there and see how many of them are making money. Many of them struggle, lose a lot of money, and file bankruptcy finally.

You can start your forex trading business with a $1-2000 account and make a lot of money after a while (of course if you follow the right way, which is a “must” in running any business. Read this carefully.) This is impossible to achieve with any other businesses as far as I know.

3. You don’t have to work too much as a full time forex traders. At least, my friends and me are like that. We spend only few minutes on trading every day. I don’t care that day traders spend several hours at the computer every day. They are wrong. Maybe some people like to suffer. But in order to make a reasonable amount of money through trading, you don’t have to spend several hours at the computer every day. In fact, I have never seen a forex day trader who makes money consistently:

Why Do I Love the Daily Chart?

I Trade the Daily Chart, But I Am a Day Trader

Let’s Learn from the Others’ Mistakes

I have so many forex, stock, options and future trading friends. All of them spend few minutes per day checking the charts. Therefore, forex trading is a “few minutes per day” business. Of course you will have to spend more time on it while you are learning it. For example, at the beginning you can spend several hours per day to read and learn. But once you reach to the live trading level and you become a professional full time forex trader, you will have to spend few minutes only. This is what we do.

What Does It Take to Become a Professional Full Time Trader?

You just need to read and learn. Do you think it is too hard to do that? You are wrong if you think so. It doesn’t take more than a couple of weeks, or a month, or a few months maximum (depend on the time you spend on learning). I see that some people spend several years on learning and practising, but they don’t make any money yet. They are not on the right track definitely.

No matter if today is the first day you have heard about forex, or you have been working on it for several years and you have had no success yet. Just follow this article and learn anything you need to know to make money through forex trading for free: Are You Still Looking for the Forex Holy Grail?

Once you reach the live trading level the way it is explained in the above article (and the articles listed in it), you can open a small live account, grow it slowly and patiently and turn it into a big trading capital.

Let me teach you another thing that takes your forex trading risk to ZERO:

When you are ready to open your live account, just open a small $1-2000 account, work on it and double it. Then withdraw half of it and keep on trading with the other half. Doing so, you will trade with your profit, and so you are not risking your hard earned money anymore.

So your forex trading business will be started for free and with a zero risk.

Now it is time to answer the question that How Does It Feel to Be a Professional Full Time Forex Trader?

You choose to become a forex trader. You learn, practice and you finally become a professional and full time forex trader the way I explained above. Maybe there are some other ways too, but I think my way is the best and easiest way, because it is free, it is too easy, it takes the less possible time, and it is risk free. So you follow my way and you become a professional and full time forex trader finally. How does it feel?

It feels great because…

You have launched a great business with an unlimited income, for free. You have only spent some time to learn and launch the business.

1. You have no loan, rent, expenses…
2. You don’t have to do advertising and marketing.
3. You don’t have to deal with the employees, customers and clients.
4. You don’t have to spend time and money going to work and coming back every day.
5. You don’t have to spend several hours per day working and maintaining the business.
6. Your business is in your laptop that you can take wherever you go.
7. You spend only few minutes per day checking some price charts and taking some positions (if there is any trade setup).
8. You are free during the weekends.
9. You make a lot of money.
10. Your monthly income can increase month after month if grow your account and you don’t withdraw all your profit. Click Here to learn more.

How does it feel to have such a business?

It feels great. It is everybody’s dream to have such a business. You are at least one step ahead of those who also dream to have such a business and be financially free, but have not taken any step toward it yet. Keep on working. You are almost there 

Source: Luckscout

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Economic Calendar

Economic calendar release schedule of numerous economic indicators and get ready for significant market movements. Economic indicators help you consider trades in the context of economic events and understand price actions during these events. By following indicators for GDP, for instance, or inflation and employment strength, you can anticipate market volatility and gain potential trading opportunities in good time.

Below you can see the most important economic indicators at a glance.

Consumer Confidence Index (CCI): A monthly release formed from the survey results of over 5,000 households. It measures average consumer confidence and spending power (for instance, a drastic decrease in consumer confidence can indicate a weakening economy).

Consumer Price Index (CPI): A statistical estimate that measures changes in the price of services and consumer goods. CPI is used as a measure of inflation, as it reports price changes in over 200 categories.

Durable Goods Orders: A monthly released key indicator of future manufacturing activity with indications to new orders placed with domestic manufacturers for the upcoming delivery of durable goods.

Employment Cost Index (ECI): A quarterly economic series that indicates the rising and falling tendencies in employment costs. It measures inflation in salaries, wages and employer-paid benefits in the US.

Gross Domestic Product (GDP): It indicates the economic growth of a country, and it is determined by product output, income and expenditure. GDB is often correlated with the living standard. It is the market value of all services and goods produced in a country during a certain time period.

Gross Domestic Product Deflator: A measure of price levels for all goods and services in an economy. The use of the deflator helps you calculate the difference between nominal and real GDP.

Industrial Production (IP): An indicator for the changes in output in the industrial sector (e.g. manufacturing, mining). It indicates the industrial capacity of a country.

Industrial Production and Capacity Utilization (IPCU): It is released by the US Federal Reserve every month and it measures economic activity, showing data for the previous month about the total amount of US industrial production. The IPCU encourages buying or selling in certain industries.

International Trade (trade balance): It measures the difference imports vs exports of all goods and services. Changes in imports and exports, together with the level of the international trade balance, indicate market trends.

Institute of Economic Research (IFO): A business survey based on the latest economic data of over 7,000 German business leaders. It provides assessment of the current and upcoming economic climate in Germany and Europe.

National Association of Purchasing Manager Index (NAPM): It measures economy in general, and the manufacturing sector in particular. It sums up the survey of over 250 companies in all US states, and it calculates data of production, new orders, and employment.

Non-farm Payroll Employment (NFP): A monthly report released by the US Department of Labor that provides statistical data about the current state of the US labor market. It is also used to forecast future levels of economic activity.

Producer Price Index (PPI): A frequently used economic indicator that measures the average changes in selling prices received by domestic producers in manufacturing, mining, electric utility, and agriculture.

Purchasing Managers Index (PMI): It indicates economic activity and shows the percentage of company/business employees in charge of goods and service acquisition (i.e. purchasing managers) in a particular economic sector. PMI over 50 usually indicates an expanding economy, while anything below 50 indicates economic contraction.

Retail Sales: A monthly report that measures consumer expenditure (an essential indicator of GDP in the US). As a timely indicator of broad consumer spending patterns, it can be used to assess the immediate direction of an economy.

Tankan (Short-period Economy Observation): A quarterly business poll issued by the Bank of Japan on the status of Japanese economy. It considerably affects currency rates and stocks, and as such, it is considered a major financial indicator in Japan.

Unemployment Rate: The percentage of unemployed people, measured by the ratio of individuals who are out of work and who are willing and able to work as opposed to the total number of individuals in the work force. It is lagging indicator as it changes along with economy, and it shows future interest rates and monetary policies.

Source: XM Calendar

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