by Ntombi Malatsi | Jul 25, 2015 | FOREX FOR BEGINNERS
What is scalping:
The term used by Forex traders for quick opening of positions with the aim of profiting from daily volatility, and the positions usually last for about 5 minutes max, ranging from one minute.
Who is suitable for this type of trading:
Scalping Forex market can be highly profitable if done the right way, but be warned, this style of trading is not suitable for everyone, by the way, nothing is ever suitable for everyone. If you have all the time of the day (it doesn’t really have to be all day) to just sit in front of your computer and watch over those small moves on the market that happen during the day, you might just like Forex scalping. But if anxiety is your weakness, I mean if you are anxious person by nature, this style might not be for you. We all know that trading comes with some emotions that need to be checked always and be kept under control, anxiety is one emotion you don’t need here. Patience should be your middle name and also you should be a disciplined trader.
Downside of Forex scalping:
I am not sure if “downside” is the correct word to use, but this is what usually happen to market scalpers, they make a lot on those small moves for the whole day, they get super excited (take screenshots, post on social media) go back and trade more, get more excited as they make more profits, then they mess it all up by allowing it to get to their head, they increase positions, increase Lot size, trade more and increase volume some more, and BOOM!!! by the end of the day they lose all the profits made during the day on one trade if not the whole account, Yess just one trade , wipes all the profits, talk about the waste of time and effort, the feeling that comes after that, they feel stupid, ashamed, embarrassed and the statement posted earlier remains on social media, and the comments keep on coming, but in reality, all that was made during the day has been “given” back to the markets, I call this a “Yo Yo” trading game, I know it, been there done that, I do not blame this on scalping though, but on my own emotions, i would just get carried away and too much confidence i guess, i know maybe you are reading this and you are still doing the “Yo Yo” game or maybe you can relate to this, it is not worth it, if you have unchecked emotions, deal with those first then reconsider scalping again. But before you even think about it, do consider the following:
- Use the stop-loss and take profits ( it is good practice and it helps with discipline)
- Not all Forex brokers allow scalping on their platform, choose the broker who won’t penalize you for scalping, but usually they do mention if scalping is not allowed.
- Do not get carried away and think that increasing a Lot size is OK, as long as your equity has not increased so should your Lot size, it should remain the same, you cannot afford to increase it.
- Be tuned in on the daily Forex calendar, know exactly what is happening around the currencies that you intend to trade. If you are tuned in daily, you can really profit from the market movers (news events that take place almost on daily basis).
Which currencies respond better when scalping:
Major currencies: currencies from bigger economies e.g GbpUsd, UsdChf and EurUsd, they are broadly known for their liquidity and for being highly responsive to market “shocks”, that would be referring to the economic events that happen on daily basis, so whatever currencies you choose, you better be tuned in to Forex calendar and enjoy the ride, but most of all, keep your profits and take some money home, say no to “Yo Yo”trading please. Thank you for coming here, you are much appreciated, please share the post using share buttons below.
by Ntombi Malatsi | Jul 25, 2015 | ECONOMIC NEWS
Welcome to Forex events Monday 27 – Friday 31 July:
GERMAN IFO BUSINESS CLIMATE:
Date released : 27 July
Time released : 4am NY ( 10am south African time)
Currency affected: EUR
CORE DURABLE GOODS ORDERS:
Date released : 27 July
Time released : 8:30am NY ( 2:30pm south African time)
Currency affected: USD
PRELIM GDP:
Date released : 28 July
Time released : 4:30am NY (10:30am south African time)
Currency affected:GBP
CB CONSUMER CONFIDENCE:
Date released : 28 July
Time released : 10am NY (4pm south African time)
Currency affected: USD
FOMC STATEMENT:
Date released : 29 July
Time released : 2pm NY (8pm south African time)
Currency affected : USD
FEDERAL FUNDS RATE:
Date released : 29 July
Time released : 2pm NY (8pm south African time)
Currency affected: USD
RBA GOV STEVENS SPEAKS:
Date released : 29 July
Time released : 8pm NY (2:30am 30th south African time)
Currency affected :AUD
BUILDING APPROVALS:
Date released : 29 July
Time released : 9:30pm NY ( 3:30am 30th south African time)
Currency affected: AUD
ADVANCE GDP:
Date released : 30 July
Time released : 8:30am NY (2:30pm south African time )
Currency affected : USD
UNEMPLOYMENT CLAIMS:
Date released : 30 July
Time releasee : 8:30am NY (2:30 pm south african time)
Currency affected: USD
ANZ BUSINESS CONFIDENCE:
Date released : 30 July
Time released : 9pm NY (3am 31st south African time)
Currency affected: NZD
PPI:
Date released : 30 July
Time released : 9:30pm NY ( 3:30am 31st south African time)
Currency affected: AUD
GDP:
Date released : 31 July
Time released : 8:30am NY ( 2:30pm south African time)
Currency affected: CAD
Happy trading, keep it low risk always…
by Ntombi Malatsi | Jul 20, 2015 | FOREX FOR BEGINNERS, FOREX TRAINING
Commodity currencies, what are they?
We all know about the majors and other types of currencies, but there are also those currencies that are referred to as commodity currencies/commodity dollars. Commodity currencies are heavily dependent on the export of certain raw materials. Listed below are the currencies which are raw material dependent.
Canadian Dollar (CAD).
Canadian dollar also nicknamed the loonie is highly dependent on oil since Canada is the second largest exporter of oil, the strength of economy depends on the prices of natural resources. The higher the price of oil the higher the loonie benefits, and the more disadvantaged the Us dollar becomes.
Australian Dollar (AUD).
Australia is one of the biggest producers of Gold, Iron, Aluminium and coal. GDP (Gross domestic products) is accounted for the falling and rising of gold prices. Australian dollar also nicknamed the AUSSIE or OZZIE is also dependent on this commodities, and by the way, trading Audusd is almost the same as trading gold, as the Aud follow the similar pattern to gold.
South African Rand (ZAR).
South Africa is also amongst the producers of Gold, the price of Gold is highly correlated to the price of the country’s currency, so there is a high correlation between Zar and Gold.
New Zealand Dollar (NZD).
New Zealand is not only dependent on one commodity, but a basket of a few. New Zealand is the big exporter of milk, meat and even fruits. New Zealand dollar is also nicknamed Kiwi. Commodity currencies are less liquid as compared to those currencies of the Uk ( GBP) and Japan (Jpy/Yen) or Euro Zone. When the interest rates are higher in Australia or New Zealand than Japan, the investors will then sell the Yen and purchase the Aussie (buy Audjpy) or they will sell the Yen ( Jpy) and purchase Kiwi (Nzd) buy Nzdjpy, they sell the weaker one, anyway this is what we do on the Forex markets, we buy the stronger currencies and we sell the weaker currencies, that is our general rule in Forex markets. here is to knowing a little bit more about the currencies that we trade. Thank you for stopping by, please share the post using share buttons below, more to come on currencies ,stay tuned.
by Ntombi Malatsi | Jul 19, 2015 | ECONOMIC NEWS
Welcome to Forex weekly news:
CAD WHOLESALE SALES:
Date released : 20 July
Time released : 8:30am NY (2:30pm south African time)
Currency affected :CAD
MONETARY POLICY MEETING MINUTES:
Date released : 20 July
Time released : 9:30pm NY (3:30am next day south African time)
Currency affected :AUD
CPI:
Date released : 21 July
Time released : 9:30pm NY (3:30am next day south African time)
Currency affected :AUD
RBA GOV STEVENS SPEAKS:
Date released : 21 July
Time released : 11:05pm NY (5:05am next day south African time)
Currency affected :AUD
MPC OFFICIAL BANK RATE VOTES:
Date released : 22 July
Time released : 4:30am NY (10:30am south African time)
Currency affected :GBP
OFFICIAL CASH RATE:
Date released : 22 July
Time released :5:00pm NY (11:00pm south African time)
Currency affected :NZD
RBNZ RATE STATEMENT:
Date released : 22 July
Time released :5:00pm NY (11:00pm south African time)
Currency affected :NZD
RETAIL SALES:
Date released : 23 July
Time released :4:30am NY (10:30am south African time)
Currency affected :GBP
CORE RETAIL SALES:
Date released : 23 July
Time released :8:30am NY (2:30pm south African time)
Currency affected :CAD
UNEMPLOYMENT CLAIMS:
Date released : 23 July
Time released :8:30am NY (2:30pm south African time)
Currency affected :USD
TRADE BALANCE:
Date released : 23 July
Time released :6:45pm NY (12:45 am next day south African time)
Currency affected :NZD
FRENCH FLASH MANUFACTURING PMI:
Date released : 24 July
Time released :3:00am NY ( 9:00am south African time)
Currency affected :EUR
GERMAN FLASH MANUFACTURING PMI:
Date released : 24 July
Time released :3:30am NY ( 9:30am south African time)
Currency affected :EUR
The Forex weekly news listed above are only those with high impact, thank you for stopping by, please read and share.
by Ntombi Malatsi | Jul 12, 2015 | ECONOMIC NEWS
Welcome to the economic events for 13-17 July
EURO GROUP MEETINGS:
Date released : 13 July
Time released : all day
Currency affected : EUR
NAB BUSINESS CONFIDENCE:
Date released : 13 July
Time released : 9:30pm NY ( 3:30am next day south African time)
Currency affected : AUD
CPI:
Date released : 14 July
Time released : 4:30am NY (10:30am south African time)
Currency affected : GBP
GERMAN ZEW ECONOMIC SENTIMENT:
Date released : 14 July
Time released : 5:00am NY (11:00am south African time)
Currency affected : EUR
CORE RETAIL SALES:
Date released : 14 July
Time released : 8:30am NY (2:30pm south African time)
Currency affected : USD
RETAIL SALES:
Date released : 14 July
Time released : 8:30am NY (2:30pm south African time)
Currency affected : USD
MONETARY POLICY STATEMENT:
Date released : 14 July
Time released : tentative (no fixed time)
Currency affected : JPY
BANK OF JAPAN(BOJ)PRESS CONFERENCE:
Date released : 15 July
Time released : tentative (no fixed time)
Currency affected : JPY
AVERAGE EARNINGS INDEX:
Date released : 15 July
Time released : 4:30am NY (10:30am south African time)
Currency affected : GBP
CLAIMANT COUNT CHANGE:
Date released : 15 July
Time released : 4:30am NY (10:30am south African time)
Currency affected : GBP
MANUFACTURING SALES:
Date released : 15 July
Time released : 8:30am NY (2:30pm south African time)
Currency affected : CAD
PPI:
Date released : 15 July
Time released : 8:30am NY (2:30pm south African time)
Currency affected : USD
BANK OF CANADA (BOC) MONETARY POLICY REPORT:
Date released : 15 July
Time released : 10:00am NY (4:00pm south African time)
Currency affected : CAD
BOC RATE STATEMENT:
Date released : 15 July
Time released : 10:00am NY (4:00pm south African time)
Currency affected : CAD
OVERNIGHT RATE:
Date released : 15 July
Time released : 10:00am NY (4:00pm south African time)
Currency affected : CAD
FED CHAIR YELLEN TESTIFIES:
Date released : 15 July
Time released : 10:00am NY (4:00pm south African time)
Currency affected : USD
GDT PRICE INDEX:
Date released : 15 July
Time released : tentative
Currency affected : NZD
BOC PRESS CONFERENCE:
Date released : 15 July
Time released : 11:15am NY ( 5:15pm south African time)
Currency affected : CAD
CPI:
Date released : 15 July
Time released : 6:45pm NY ( 12:45am next day south African time)
Currency affected : NZD
MINIMUM BID RATE:
Date released : 16 July
Time released : 7:45am NY ( 1:45pm south African time)
Currency affected : EUR
ECB PRESS CONFERENCE:
Date released : 16 July
Time released : 8:30am NY ( 2:30pm next day south African time)
Currency affected : EUR
UNEMPLOYMENT CLAIMS:
Date released : 16 July
Time released : 8:30am NY ( 2:30pm south African time)
Currency affected : USD
FED CHAIR YELLEN TESTIFIES:
Date released : 16 July
Time released : 10:00am NY ( 4:00pm south African time)
Currency affected : USD
PHILLY FED MANUFACTURING INDEX:
Date released : 16 July
Time released : 10:00am NY ( 4:00pm south African time)
Currency affected : USD
CORE CPI:
Date released : 17 July
Time released : 8:30am NY ( 2:30pm south African time)
Currency affected :CAD
BUILDING PERMITS:
Date released : 17 July
Time released : 8:30am NY ( 2:30pm south African time)
Currency affected :USD
CPI:
Date released : 17 July
Time released : 8:30am NY ( 2:30pm south African time)
Currency affected :USD
CORE CPI:
Date released : 17 July
Time released : 8:30am NY ( 2:30pm south African time)
Currency affected :USD
PRELIM UOM CONSUMER SENTIMENT:
Date released : 17 July
Time released : 10:00am NY ( 4:00pm south African time)
Currency affected :USD
That’s it for this week, only high impact events are listed above, thank you for stopping by ,make more traders aware, kindly share the post using share buttons below.
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