Forex trading made simple - how to earn money

Any market is driven by the psychology of the people, by knowing this principle you can forecast large and small shifts in the price action.  In final result it will minimize emotions and your doubtfulness before getting into trade. Furthermore this analysis will maximize your profits and success of prognosis by placing the stop losses/take profits, trade setups the right way. These patterns were noticed by Ralph Nelson Elliot who watched and identified these by watching the market for about 10 years. He called this discovery "the Wave Principle" and these days it belongs to one of the fundamental technical analysis in trading. The book was published in 1978 by Mr. Prechter, who has found the Elliott's work in the New Your Public library and published a book "Elliott wave principle, which has spread like a fire throughout the world. The new focus for Wall Street and investors worldwide was designated. Nowadays tens of thousands of people use Elliott wave princi

There are 2 types of fees, which you can encounter, when you are trading - commissions and swaps. At first I will boil down both of these terms: Swaps Swap is defined as an overnight or rollover interest for holding positions(if you didn't get out of the trade) during night in Forex market. Each of these swaps is measured by points and each currency has its own special swap charge. The particular size of swap charge depends on the size of your position. You could calculate your swap cost for any position using the following formula:  Swap charge = (Volume of the order * Swap rate * Number of days). Let's take an example with 1 standard lot of GBPUSD with a swap rate for a short position of -2.5. Then we calculate the swap charge this way: 1 lot * (-2.5) * 1 day = -2.5 GBP. This will be the amount charged from your account for holding this position over 1 night. but I strongly recommend not doing so, but using this  calculator  instead, for both commissions and s

Candlesticks are the purest known form of price action.  They provide visual picture of what is happening on the market, because they can visually align your thoughts with the market. They also hold more reliability than any other known form of the bar chart. That of course doesn't mean that you should consider the candles as indicators to buy or sell, but they should be used with other strategies which you have developed. Candlestick pattern recognition is an arrangement of price bars which are used to anticipate the next move of the market. These patterns should help you to confirm your expectations and your continuous collective thoughts that determine your future bias of the market. The bars ( also called candles) depict how the buyers/sellers have acted on the market and how strong they have been in comparison with opposite site (buyers or sellers). It is important to note that attempting to define the movements of the market just with candles, not knowing trend, s

 In this profitable market are a lots of scams.  You should be aware of them and recognize them before it's too late. These kind of  firms offer you endless profits, claim to give you FX guidance or sell you signals. If it would be that easy, everyone would be winning like 90 % of trades, wouldn't we? You should be aware of these scams and ignore them every time. Don't fall into the trap! There is a bold line between losing trades and losing money because of some stupid traps, into which you have fallen because you were naive and greedy. Losing trades is a part of reality. Regardless if you are Wall Street trader or a hobby trader, everyone will encounter losses. No one can be 100 % correct in this market. Even a person with 75% success ratio can lose 10 trades in a row. That's the reason why you have to stay grounded, be disciplined and emotionless as much as possible. Losing big money is another story. Some traders lose confidence and doubt themselves from tim

These are in my opinion the most used 50 terms, which should every good trader know: 1. 1. Ask price - is the price where the market will sell a specific currency pair from you  2. Bid price - is the price where the market will buy a specific currency pair from you 3. Spread -  is the difference between ask and bid price, varies from brokers, used for determining commissions. 4. Pip  - is the smallest movement in the market, 1 pip for EUR/USD = 0.0001, for yen pairs it is 0.01 5. Exchange rate  -    the value of one currency expressed in terms of the other. If for example USDJPY is 111. 5, then 1 dollar is worth 111.5 yens. 6. Leverage -   allows you to get to the position greater than your account is.  For instance if trader has 1 dollar and leverage is 200:1, he can leverage his position 200 times - he can trade 200 $ in total. The other 199$ are covered by bank or broker.  7. Margin - is the deposit required to open or maintain a position. 8. Base currency -

Forex Trading - also known as the foreign exchange market (FX) is a "place", where the currencies are exchanged. These currencies are traded, because people need to exchange currencies to conduct foreign trades or business. For example if you are living in the U.S. and you want to buy a chocolate from the Switzerland, you have to buy this product in euros, so it means that exchange from US dollar(USD)  to euros(EUR) is needed. The Forex market is traded between 10pm on Sunday and 10pm on Friday. Within this time frame it's active 24 hours every day, 5 days a week. The necessity or need of people to exchange currencies, because of globalisation and other aspects, is the primary reason, why the Forex market is one of the biggest markets in the world. The BIS(the Bank for International Settlements) concluded, that Forex market has a value of astonishing 4.9 trillion US dollars, so there is huge potential in making money. If you would have compared FX(Forex market)