Your Questions About Forex Trading Hours

Laura asks…

Is it really possible to make money trading on the FOREX market?

It seems too easy. You spend a few hours a week watching trends, buy, sell, and rake in huge money. It seems too good to be true. How many people are actually successful and how much time do they put in doing it?

kenspong answers:

Oh yes, it is of course possible to make nice profits from Forex if you know what you are doing.
$4 trillion a day worth of currency changes hand daily. So, there must be profits in this business.

I don’t think few hours a week is enough. You need to read financial reports and track all the news coming about economy to do the trading.
For example, a couple of months ago, when the EURO was going down, almost every major currency (Except the USD, and the YEN which moves in the Opposite direction) was going down especially the Aussie and GBP.
But these days, this is not happending any more. The Euro is still at 1-year record low, while the Aussie and GBP are getting some push from their local economy.
There are a lot of reports that you need to read.

Better to start with books and follow some currency blogs.
Don’t get cheated by some ADs that claim they can make huge money. If you do that, you will lose all of your money in a blink. Try to find some certified online Forex firms that charge you less money for the trades.

John asks…

Trading Forex with Leverage – questions?

I have a couple curiosity questions that I’d rather not ask a broker (without sounding like an idiot).

When Trading Currency (Forex) with 50:1 leverage:

What is practical for trading timeframes? Seems like trading 1-hour to 1-day bars is the better choice (as opposed to intra-hour), but are there interest costs (on margin) with the broker when holding Currency positions for long periods?… like several days or even months?

Do brokers “cap” the number of Currency lots that can be traded with leverage? I understand, for example… I could trade 100,000 (1 lot) with only $2000; but could I trade something huge like… 10,000,000 with $200,000?

Thx

kenspong answers:

Timeframes dont accually have anything to do with Leverage ratios. Timeframes is part of a trading style. You need to decide what times are best for you. The smaller you go the more intense your trading can be. If your comfortable with 1 hr or 1 day times, then stick to them.

Brokers dont technically cap how many contracts you controls. (unless they say otherwise). But maxing out your margin is dangerous and wreckless.. Ie the example of 10,000,000 of currency. Your lot size is 100 standard lots. For each pip of movement. You risk $1000.00. Now its not hard for (Example) the Eur Usd to move 100+ pips a day, which means that you have just lost 50% nice work for one day, (Not to mention the Margin call you would have well before you reach that point).

Its believed that a person should manage risk, by only placing 2% of their account on the line for any one trade. Also an overall risk is warrented. Often 6-8% (Max 3-4 Trades). In the case of $200k risk per trade would be $4000 dollars, or 400k of currency, and as for max trades, that would be 1.6M at most. (which is about one 10th of max margin).

Steven asks…

Forex trading training ?

Im intrested in Forex, so im tryin to learn about it.

I came across a institute of forex trading, where they are charging 1000/- and the time duration is 2 hour’s.
i don’t know much about forex, so i would like to know if joining this institute is worth or not.

Im from hyd. Please do let me know if there are any institutes .

Thnq

kenspong answers:

Before you start trading forex, I would recommend opening a demo trading account which will already have practice money, in this way you’ll be able to trade forex without using real money. If you make a return using this demo trading account and are comfortable with trading forex, you can open a real trading account and start trading forex using real money. A good site to open a demo account is Easy Forex this site can be found here http://www.easy-forex.com/gtw/164450.aspx Best of luck.

Daniel asks…

Good Forex Trading Chatroom?

Any good free and reliable forex trading chat rooms? Im not looking to pay for any service or take half hour signing up for it.

kenspong answers:

YES! GO HERE

WWW.SCIONFOREX.COM

Thomas asks…

Trading on multiple time lines?

Hi,

I started reading up on drawing triangles on my candles. What I want to know how do I trade a triangle by looking on 3 different charts? They say you must always use multiple times frames. Let’s say I would draw a triangle, on what time if I use 30 min, 1 hour and 4 hours?

I trade forex.
Then what is a better timeframe to trade? Daily, 4 hours and 1 hour?

kenspong answers:

What is meant by trading with multiple
time frames is to be aware of price
behavior in each time frame that may
impact the time frame used to trigger
your decisions.

You may have a triangle pattern that
shows an upside breakout on the 30
min chart, not on the hourly chart, but
the 240 min chart shows resistance
somewhere above your breakout point
on the 30 min chart, limiting what you
think may be upside potential, as a
loose example.

It is best to always know the trend of any
market in which you trade, and your best
trades will come from situations in which
all time frames are in harmony with the
direction of your intended move.

The 240 minute time frame is the most
reliable. The hourly, and for sure the
30 min, have too much “noise.”

Professional forex traders are very much
aware of time frames. Be v careful.

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