FOREX MARKET

FOREX FACTS IN INDIAN CONTEXT

• FOREX market is 24 hour market and is open from Monday to Friday.
• There are many currency pairs traded in the market.
• Depending on the sessions on, respected currency pair is traded at high volumes.
• Forex trading in pairs like EURO/USD, USD/JPY and other pairs traded on MT4 platforms are not yet officialy allowed in india.
• Being a 24 Hour market, one has to first decide if they can dedicate 10 to 12 hours daily for it. 
• Opportunities are many, but it requires consistent observation.
• CAUTION: Trading in forex without knowledge of technical analysis will lead to poorhouse. 
• You will end up wiping your dollar account clean if you try to trade in forex without knowledge of technical analysis.
• You will end up wiping your dollar account clean if you do not know when the important news break, the importance of it, and the effect it can have on respective currencies.
• Strict discipline is required to succeed in forex market. If you lack that control, do not ever try to trade in forex.
• Selecting appropriate lot size is must. For example if you have an account with fund less than 500 dollars, then you cannot select a lot size of 1 multiple. One bad decision will be enough to wipe your account clean. Start will small lot sizes and then depending on your account size select lot sizes accordingly. For example if you have account size of 500 dollars then try 0.20 lot size or less, but not more. If you have account size of 1000 dollars, then try account size of 0.50 or less but not more. 
• This strategy will ensure that even if you make a mistake, your loss will not be big enough to wipe your account clean. You will have enough fund in your account to recover the loss previously made. 

Answers to the most basic questions novice traders ask......

Question: IF EURO\USD is rising, which currency is getting stronger?

Answer: EURO

Question: If there is positive news in USD, which currency pair I must buy?

Answer: USD\JPY

Question: If there is negative news on EURO, which currency pair I must sell?

Answer: EURO\USD

SESSIONS INFORMATION: AS PER (IST) TIME

Vital Facts:

•  If EURO/USD is rising, it means EURO is getting stronger, and if it is declining, USD is getting stronger. 
• Currency cross pairs are pairs that does not involve USD. For example, GBP/JPY, EUR/JPY.
• The pair that will be affected most directly by US news is USD/JPY. 
• If the news is better than expectations, it will go up. If worse, it will go down.

DAILY ACTIONS TO TAKE

• Set high Impact alerts on google calendar and reminder on computer.
• Keep vigilant watch on forex factory & Bloomberg.
• Make advance trades in direction of established trend, before actual news get released
• Read info that can help to stay longer into a position.

Remember: Trailing stops in MT4 works only if the terminal

is on. If you put trailing stop in terminal and close the

terminal, it will automatically get removed. It works at client

level, not server level like Take profit & stop loss limits. 

Key Pointers to remember:

KEY TRADING POINTS TO REMEMBER

Never trade against the trend.

Never buy prematurely thinking support will be taken, and

never sell prematurely thinking that resistance will be met.

Stay away from averaging

Trade only after confirmation received

Do not sell just because RSI became overbought, or is

overbought.

Do not buy just because RSI became oversold, or is oversold

already.

Respect the Hammers

Monitor news based movements, but if trend is not already

established that avoid news based trades: As those are

"Chance trades", not confirm trades.