forex2tradeindia

1. Vol.5 What is FOREX How to TRADE What is Risk How can OVERCOME More Profits in < PATTERNS > PATTERNS venKEY praWIN SUREsh TECHNICAL Analysis www.forex2tradeindia.weebly.com TradingFriends Trend Advisors Dynamic Subject LogicalThinkingtowards Price Action forex2tradeindia Your Success Story Begins from HERE http://forex2tradeindia.weebly.com/ Email : - forex2tradeindia@yahoo.com venKEY

2. Strategies • http://www.forex-tribe.com/Learn-About-Forex.php • http://www.earnforex.com/forex-tools • http://www.forexsignal30.com/member/bnsplus.php • http://www.forexsignal30.com/member/tutorial.php • http://www.4shared.com/dir/6953520/b66ace86/Internet_Marketing.html CLASSICAL CHART PATTERNS PATTERNS www.forex2tradeindia.weebly.com venKEY

3. Forex - Disclaimer Risk Warning Before deciding to participate in the Forex market, you should carefully consider your investment objectives, level of experience and risk appetite. Most importantly, do not invest money you cannot afford to lose. There is considerable exposure to risk in any off-exchange foreign exchange transaction, including, but not limited to, leverage, creditworthiness, limited regulatory protection and market volatility that may substantially affect the price, or liquidity of a currency or currency pair FOREX www.forex2tradeindia.weebly.com venKEY www.forex2tradeindia.weebly.com venKEY

4. Forex - Importance currency pair FOREX www.forex2tradeindia.weebly.com venKEY www.forex2tradeindia.weebly.com venKEY

5. Forex - Pairs Major Pairs Commodity Pairs Seasonal Pairs LOT sizes FOREX www.forex2tradeindia.weebly.com Standar LOT MINI lot Micro Lot venKEY www.forex2tradeindia.weebly.com venKEY

6. Forex – Trading Time US European Japan FOREX www.forex2tradeindia.weebly.com venKEY www.forex2tradeindia.weebly.com venKEY

7. PIP Spread FOREX Swap Brokerage www.forex2tradeindia.weebly.com venKEY www.forex2tradeindia.weebly.com venKEY

8. Type of Brokers ECN STP Market Makers Market Participants FOREX www.forex2tradeindia.weebly.com Market Validity ECN STP Market Makers venKEY www.forex2tradeindia.weebly.com venKEY

9. MQL - Programmes Expert Advisors Expert Advisors are the most interesting MQL scripts. They provide ability to find best market entry points (of course thanks to pre – programmed logic). The Expert Advisors can place the order on behalf of investor, show or send proper information, or do both. It depends on what the investor really needs. The MQL Expert Advisors bases mostly on technical analysis indicators, but there is a variety of strategies which can be implemented as Advisor and have nothing in common with classical technical analysis. For example Expert Advisor can calculate correlation between two instruments, and open trades accordingly to changes of correlation in time. MQL gives ability to write Expert Advisor that finds patterns between many instruments. It’s even possible to use neural networks and other sophisticated methods of data analysis. Indicators Technical Analysis Indicators are special scripts which draws the indicator objects (lines, dots, marks, etc.) directly on chart. Of course there is calculation algorithm beneath. The algorithm is responsible for values of indicator in each step of time. For example Moving Average algorithm takes prices for given time period, sum the prices, and then divides by number of periods. For next period the algorithm will do the same, but the data which will be taken for calculations will be moved by one period. The result is continuous line which represents values of moving average during the time period covered by chart. Scripts Scripts are the programs which allow to do simple, repetitive operations automatically. Normally, when user run the script, the script will do their work, and then it will turn off. For example, the scripts can be used for: Closing all (pending) positions Calculate data (minimal amount of money needed to open position, etc.)v Write data on chart Check connection, trading availability, etc. Converting and saving data from charts Scripts are especially good for maintenance operations which done manually will take time. FOREX www.forex2tradeindia.weebly.com venKEY www.forex2tradeindia.weebly.com venKEY

10. Trading Strategies Indicator-based Price Action Fundamental News Moving Averages Parabolic SAR Stochastics MACd crossover Divergence Combination s Patterns Carry Stratey SIP GAP Inventory Buy>/Sell< Simple Price Based Martinagle Scalping/Jobbing Support & Res. Pin-bar/Grid FOREX www.forex2tradeindia.weebly.com Risk : Rewards Fundamental-Long terms ECN STP Market Makers venKEY www.forex2tradeindia.weebly.com venKEY

11. TradingStrategies-Martingale http://www.earnforex.com/forex-strategy/martingale-trading-system Martingale trading system — is based on the popular betting (gambling) system of the 18th century France. The main principle of this system is to double the bet each time you lose so that if you win (considering a 100% bet win/loss each time) you recover a previous loss and will also gain the first bet amount. If one had an infinite amount of money, this strategy would be a sure-fire thing as with the infinite amount of bets the necessary result will with probability 1 eventually come. The problem is that no trader possesses an infinite wealth and thus utilizing this strategy eventually leads to a wiped account. Although it's a very popular Forex trading system and is used in many paid Forex expert advisors, I strongly don't recommend trading with it. How to Trade? Any currency pair and timeframe will work. Determine your basic position size. Place an order in a random direction (Buy or Sell) with some fixed stop-loss and the same take-profit. After the SL or TP is triggered you either win or lose. If you win, set the position size to the initial and go the step 3. If you lose, double the position size and go to step 3. If you have infinite trading account balance, eventually you'll win a lot. If your account balance is limited you'll lose it eventually. Example No example chart is present for this trading system as there is nothing important to be shown on the chart. Let's view the following example. You start with $10,000 account and can trade with mini Forex lots (0.1 of the standard lot) and decide to trade on EUR/USD. You define your basic position size as 0.1 lots. You decide to go Long setting stop-loss at 40 pips (or $4). The take-profit is set to the same value. You lose the position. Now your account balance is $9,996. You double your next position size to 0.2 lots, so that using the same stop-loss and take-profit levels you risk $8 and also have a chance to win $8. You decide to change the position's direction and go Short. You win and now you've recovered lost $4 and also won $4. Your account balance is $10,004. You return your position to initial 0.1 lots and start over. With $10,000 account balance and $4 basic risk value you'll have to lose 11 positions in a row to wipe your account. You'll have to win 250 positions to double your balance. Warning! Use this strategy at your own risk. EarnForex.com can't be responsible for any losses associated with using any strategy presented on the site. It's not recommended to use this strategy on the real account without testing it on demo first. FOREX www.forex2tradeindia.weebly.com Features Theoretically bullet-proof system. Practically unsound. Reward/risk ratio can reach extremely low values. venKEY

12. Dictionary of derivative market terms American-style option - an option contract that may be exercised at any time before it expires. Arbitrage – a trading strategy based on the purchase of an asset in one market at one price while simultaneously selling it in another market at a more advantageous price, in order to obtain a risk-free profit on the price differential. Ask - the quoted price at which a Client can buy an asset. Also referred to as the ‘offer,’ ‘ask price,’ or ‘ask rate.’ Central Bank – it is the main bank in the country responsible for the monetary policy. Its primary responsibility is to maintain the stability of the national currency and money supply, but more active duties include controlling subsidized loan interest rates, and acting as a "bailout" lender of last resort to the banking sector during times of financialcrisis. Bid - the quoted price at which a Client can sell an asset for. Also known as the ‘bid price’ or ‘bid rate.’ Broker – an individual or firm that acts as an intermediary, putting together buyers and sellers for a fee or commission. A broker has no position in the market. Bull - an investor who thinks market prices will rise and he has a long position in the asset. Cable – trader jargon refers to the Sterling/US Dollar exchange rate. Call - a call option gives the option buyer the right to purchase an asset on a specified date. Strike price - the price at which the buyer of a call option has the right to purchase a specific asset or at which the buyer of a put has the right to sell a specific asset. Also known as the ‘exercise price.’ CFD (Contract For Difference) – financial instrument, with the underlying principle that both parties to the transaction do not have any claims to the underlying asset, basing solely on cash settlement. CFD are always traded on margin; typically the margin is low enough to allow a large exposure with small amounts of deposit. Nowadays, CFD can be based on a wide range of base assets, from shares and commodities to interest rate swaps. As margin requirements tend to be low, gains and losses incurred even by nominally low movements of the price of the underlying asset are magnified.  Day Trading - trading style used by day traders, where all long positions are sold (or short positions are covered) by the end of the trading day. Dealer - person or a firm in the business of acting as a counterpart to foreign currency transactions. Typically, a dealer buys for his or her own account and sells to a customer from the dealer's inventory. European-style option - an option contract that can be exercised only on its expiration date. Expiration date/ maturity date - the last day on which an option may either be exercised or offset. ECU - European Currency Unit. EMS - European Monetary System. Fed Fund Rate - the interest rate for overnight loans at the Federal Reserve. Fed - the central bank of the United States and is the chief mechanism dictating monetary policy. FOMC - a 12-member committee consisting of the seven members of the Federal Reserve Board and five of the 12 Federal Reserve Bank presidents. The committee sets objectives for growth of money and credit that are implemented through purchases and sales of U.S. Government securities in the open market. The FOMC also establishes policy relating to Federal Reserve System operations in the foreign exchange markets. Foreign Exchange Market - the structure of entities trading foreign currencies, thus determining the exchange rates. Forex- a cash market in foreign currencies made by large banks. Short for Foreign Exchange. G7 - a group of seven of the leading industrialized countries which include Japan, Germany, France, United Kingdom, Canada and the U.S. that meet periodically to discuss international economic issues in order to forge international economic cooperation. G10 - G7 plus Belgium, the Netherlands and Sweden. IMF - International Monetary Fund. Initial margin - the amount of money needed to open or maintain a position. Interbank market - a loose network of financial institutions and other large companies trading foreign currencies. Kiwi – slang name for the New Zealand currency. Futures - an agreement to purchase or sell an underlying asset for delivery in the future: at a price that is determined at initiation of the contract; that obligates each party to the contract to fulfil the contract at the specified price; that is used to assume or shift price risk; and that may be satisfied by delivery or offset. Futures contracts are traded on stock exchanges. Forward- a transaction in which a commercial buyer and seller agree upon delivery of a specified quality and quantity of goods at a specified future date. Terms may be more “personalized” than is the case with standardized futures contracts (i.e., delivery time and amount are as determined between seller and customer). A price may be agreed upon in advance, or there may be agreement that the price will be determined at the time of delivery. Forward contracts are traded on the OTC market. Basket- it is an economic term for a group of several currencies created for the purpose of management of the exchange rate of a specific currency. Settlement price - the daily price at which the clearing organization clears all trades and settles all accounts between clearing members in each contract month. Settlement prices are used to determine both margin calls and invoice prices for deliveries. Limit order - an order to buy (or sell) an asset that specifies to pay no more than (or when selling to accept no less than) the specified amount. Long position - a position that appreciates in value if market prices increase. When an asset is bought, the position is said to be long. Lot - this is another name for a contract on the Forex market (usually 50 000 – 100 000 units of base currency). Margin– initial margin. Margin call - a request from a broker or dealer for additional funds or other collateral to guarantee performance on a position that has moved against the trader. Market order - an order to buy or sell a stock or other security at the best available price at the time the order is sent on the market. Bear- a person who believes the prices of stocks or the overall market will decline. Premium- the price that an option buyer pays for the option. Option– a contract which establishes that one party (the holder or buyer) has the right (but not the obligation) to exercise the contract (the option) at a specified future moment or period of time (the exercise date or expiration) and the other party (the writer or seller) has the obligation to honour the terms of the contract. Since the option gives the buyer a right and in the case of the writer - an obligation, the buyer pays the option premium to the writer. The buyer has a 'long' position, and the seller a 'short' position. The value of the contract is determined by an underlying asset, thus the instrument is classified as a derivative. OTC Market (Over the Counter Market) – a market for currencies, commodities, shares, options, or other financial contracts via electronic connections between dealers. The OTC market has no physical locations or address, and differs from organized exchanges which have a physical location where trading takes place. Also referred to as:- Off Exchange. Pip-the smallest unit of price change on the FOREX market. Put- a put option gives the option buyer the right to sell a particular currency pair at a stated exchange rate. Rollover-the process of extending the settlement date of an open position by prolonging to the next settlement date. Bull market - any market in which prices are trending higher. Usually, used in context to describe a steadily rising stock market. Bear market - a market distinguished by declining prices. Short sale – sale of an asset that the trader does not own. Investors who sell short believe the price of the asset will fall. If the price drops, investor can buy the stock at the lower price and make a profit. If the price of the stock rises and investor buy it back later at the higher price, he/she will incur a loss. Short position - an investment position that benefits from a decline in the market price. When the base currency in the pair is sold, the position is said to be short or when an asset is sold. Spot market  - a market of immediate delivery of and payment for the asset. Spot transaction - spot transaction is a transaction requiring prompt delivery of and full payment for the currency or other asset. In the Interbank market, spot transactions are usually settled in two business days. This term may also be used to refer to transactions that the parties expect to offset or roll over within two business days, but these transactions are not true spot transactions and are governed by the federal Commodity Exchange Act. Spread (Bid/Ask Spread) - the difference between the bid and ask (offer) price. Sterling-another term for British currency, the pound. Stop-Loss order - an order placed with a broker to sell an asset when it reaches a certain price in a case of long position. It is designed to limit an investor's loss on an asset position. Swissy – slogan for Swiss Franc. Take Profit - an order used by currency traders specifying the exact rate or number of pips from the current price point where to close out their current position for a profit. Tick - a minimum change price rate. Trailing stop - a stop-loss order set at a certain number of points below the market price - for a long position. The price is adjusted as the price fluctuates. Using a trailing stop allows one to let profits run while cutting losses at the same time. Base Currency - or foreign exchange trafding, currencies are quoted in terms of a currency pair. The first currency in the pair is the base currency. For example, in a USD/JPY currency pair, the US dollar is the base currency. Also may be referred to as the primary currency. Quote currency - the second currency in a currency pair is referred to as the quote currency. For example, in a USD/JPY currency pair, the Japanese yen is the quote currency. Also referred to as the secondary currency or the counter currency. Exotic currency - a currency with little liquidity and limited trading activities. FOREX www.forex2tradeindia.weebly.com venKEY