Advanced Forex Trading Guide and Forex Brokers Reviews

forex brokers reviews provides an ultimate resource where users can receive information and tips related to the foreign exchange market. There is a wealth of information available about the latest industry developments as well as Forex broker reviews. From trading features and trading competitions to online tutorials, you will have everything you need to learn Forex trading online or to hire capable brokers.

How to choose a reliable broker?

When making your selection of the best Forex trading brokers, it helps to have as much information as possible. Each Forex broker review we offer has detailed reports to help you make the best choice. You can simply and easily compare Forex brokers while learning about the top 10 Forex brokers we recommend. An online Forex brokers review can give you the insider information you need to make the right selection. Our Forex brokers review site is specifically engineered to be simple to use and easy to navigate. You can find the best Forex brokers online who are a match to your trading style and goals.

Learn forex trading

Prior galloping into the vast and exciting world of forex trading, beginners should take some time to learn couple of important things to spare yourself from unnecessary, regretful situations, which may occur before you even start trading.

Internet is filled with quick and easy ways to make money, and forex trading considered as one by many. It has incredible potential to make profits from the comfort of your home and these days doesn’t require thousands of dollars to hit it off.

That is all true, and in fact, with the right knowledge and plenty of practice, you can indeed turn forex trading into your full-time career, not getting out of your pajamas, if you so wish.

However, bear in mind, that online trading is not as easy as it may seem and to become a true master, you should invest your time to get experience and education to make the right decisions and analyze the market moves.

Get your basics straight

Online trading is not what you see in moving, portraying traditional stock exchange. You do, however, deal with so called Contact for Difference agreement, or in other words CFD, where you bit on stock movement without purchasing it.

With that in mind, the two necessary orders that you should be familiar with are Stop Loss and Take Profit.

Stop Loss is set to the amount you are comfortable risking on a specific contract. If and when you lose that amount, your trade automatically ceases.

Take Profit brings you the same idea, but applies to a specific profit made. Two positions are available at your disposal for each contract – a long position where you bet on asset to go up in value and a short position where you bet on asset to go down in value.

Education is the key

If you want to make money, you must make correct decisions. This is only possible if you know the art of analyzing the market movement.  In order to do so you have to stay up to date with financial news, asset prices, important economical announcements which influence the fluctuation of stocks and currencies and political situation of the countries with the currencies involved.

Don’t put all eggs in one basket

This smart tip is not only valuable in the grocery store but in investing as well. While there is long-term trading with low risk and low profits, most traders prefer trading in short leaps. There are traders who open and close a trade within minutes, earning minor amounts from each transaction, but at the end of the day gain considerable amounts. Day traders run their business for entire day, fully alert to any new development with their favorite assets in hopes to catch the right wave of profit.

Don’t forget that economic news may not only effect the currency directly involved, but also influence other assets on the side. Diversity (or in other words hedging) can truly safe a lot of headache and losses along the day.

Demo account

All forex brokers have free demo account to practice with virtual money. If your broker doesn’t have one – ditch the broker! Beginners must start with practice account and get the idea behind trading, play around with platform functions, check out the different settings of the charting tools and determine the strategy and style you want to trade with.

Temptation is high and we all want to make some real money, but do release yourself from the chains of gambling before you even consider online trading. Neither luck nor poker face will do the trick with trading. You must get your game straight with practice, education and experience.

Most Popular Questions

  • Choosing the Right Forex Broker +

    Forex brokers are the necessary link to forex market, so once you decide to become a trader, you are doomed to long process of selecting the broker that not only suits you best, but doesn’t scam its’ traders. Almost every day, a new forex broker is being born online. With the abundant variety of features and services promised, the trick is to find a broker that you can actually trust.  All of them claim to be the best, and making the right decision is not an easy task. When choosing a broker, which characteristics you should look for and compare? Read More
  • Tips on How To Avoid Scam In Forex Trading +

    Forex Trading is open for everyone with a will and power. Your next door neighbor might be making some cash on the side trading online, your university professor could be using his mathematical strategies to profit, even your mother can enter forex trading world and succeed tremendously. Along with “good guys” come the scammers – the cyber criminals. The question is how to avoid scam in forex business? Read More
  • Forex Micro Accounts – Solution for Beginners +

    Most common perception of currency trading - it is only suitable for very rich investors. This is wrong because the beauty of trading today is that all kind of traders can join in. Forex trading doesn’t have to be scary! When you aren’t ready to invest large sums into your trading account, you can take advantage of mini/micro accounts, where you can gain the needed experience in order to move on and trade larger sums of money. Read More
  • Make a Living with Forex Trading +

    All forex traders desire consistent profits, however many fail to accomplish their dreams. Why it is so difficult to become successful in forex trading and what are the ways to make a living trading online? Read More
  • Most Important Forex Trading Tools +

    Forex trading is becoming the top pick among investors online and with increasing demand comes an extensive list of forex brokers with exciting new features and useful trading tools. With overwhelming amount of tools available today, how can you figure out what is essential and what is more of a gadget? Which tools can truly influence your decision and help in analyzing the market conditions? Read More
  • 1

pivot pointsPivot points strategy has been around for a long time and is very important for forex traders. Pivot points show us the levels at which the direction of price movement may change. With couple of simple calculations forex traders are able to have a general idea where the price movement is heading to during the day. 

How to Calculate Pivot Points

Pivot points are calculated using couple of mathematical formulas and data from the previous day or from the last trading session, which includes high, low and close. The sequence of points resulting from the calculations is important support and resistance levels. 

Below is the formula of pivot point calculation:

Pivot point (PvPt) = (High + Low + Close) divided by 3

Once we know the pivot point, it is easy to obtain support and resistance levels by:

First level support and resistance:

First support (Sup1) = (2 multiply by PvPt) – High

First resistance (Res1) = (2 multiply by PvPt) – Low

Second level of support and resistance:

Second support (Sup2) = PvPt – (High – Low)
Second resistance (Res2) = PvPt + (High - Low)

Obviously, your forex broker has thought about the inconvenience of calculating pivot points yourself, and therefore your trading platform performs the calculations automatically and shows it on the chart. All you have to do is to understand the meaning of the pivot points and the use.

How To Use Pivot Points?

First of all, you have to always remember that pivot points are short-term term indicators and therefore are useful only for one day, after which you will have to calculate the whole thing all over again.

Once you have pivot points on your hands, you actually have the primary support/resistance level. Meaning that, a major price change is probably going to take place at this level.

Pivot points can predict two things:

  1. General market trend: in case pivot point price is headed upward, the market is bullish; in case pivot point price is headed downward, the market is bearish.
  2. Enter and exit levels of the market: As a forex trader you might put a limit order whenever the price goes over the resistance level. On the other hand, you can set stop-loss in case the support level is breached. 

Support and resistance levels may be stronger from one another. The strength is calculated by the amount of times the price jumps off the pivot level. The level is considered the strongest whenever the currency pair reaches the pivot level then reverses many times.

What Should You Do?

Whenever the currency pair is reaching up for the top resistance level, you most probably should sell the pair and place a stop right above the resistance level.

Whenever the currency pair is reaching down the lower support lever, you most probably should buy the pair and place a stop right below the support level.

Things To Remember

Below are some trading tips you might want to memorize:

  • When price is at Pivot Point – expect a move back to Resistance Level 1 or Support Level 1.
  • When price is at Resistance Level 1 - expect a move to Resistance Level 2 or back to Pivot Point.
  • When price is at Support Level 1 – expect a move to Support Level 2 or back to Pivot Point.
  • When price is at Resistance Level 2 – expect a move to Resistance Level 3 or back to Resistance Level 1.
  • When price is at Support Level 2 – expect a move to Support Level 3 or back to Support 1.

Disappointment With Pivot Points

Pivot points sound like a perfect indicator to predict market trend without a single mistake and make tones of money! Well, the reality isn’t quite so. We have to disappoint you right here and there – pivot points, like many other things in life, don’t work all the time. Sometimes the price just sort of gets stuck around pivot lines which make it extremely difficult to predict what will be the next price movement. In other case, the price doesn’t even reach the pivot line and reverse. And it is also possible to witness how a pivot line is strong support level and you go long, but then the price decides to fall and you freak out and stop… but then, against all odds, the price reverses back your way. The pivot point trading strategy is up to you and it is your responsibility to follow it.

Add comment

Security code

We have 21 guests and no members online