Price Movement

Things that will immediately grasp is that the nature of the movement of exchange rates gradually and are not constant.

This applies to the movement of exchange rates as it applies to the movement of the stock and commodity prices and everything is traded in the financial markets.

What do you mean by that?

It means that even if a currency will rise 100 points in 5 hours, for example, the price of it will not rise beyond the hour and minute hour and a minute behind, but the rally will bring together a lot of dips .. !!

But wholesale rises.

If we assume that the price of the euro now EUR / USD = .9800 and was expected to rise 100 points which will become the euro EUR / USD = 0.9900 price in 5 hours.

Even if ratified, the expected price movement may be as follows:

Price now .9800 EUR / USD =

Then the price will be reduced for ten minutes until it reaches EUR / USD = .9780 any dropped 20 points from the first floating price shall be your loss = $ 200 if you bought 1 lot on the price first.

And then rise for half an hour to the price up to EUR / USD = .9845 ie it rose 45 points from the first price and becomes a floating profit = $ 450.

Then drop a half-hour to the price up to EUR / USD = .9790. Ie, 10 points down from the first price consists of floating bris now = $ 100.

And then rise for an hour until it reaches the EUR / USD = .9860 which rose 60 points from the first price and a floating profit = $ 600.

Then falls for a quarter of an hour to be up to EUR / USD = .9815 becomes floating profit = $ 150 after it was $ 600.

Then you may come back to rise strongly to be up to the price of EUR / USD = .9900 after five hours as we expected.

Thus, the price will continue to drop and rise an hour and an hour behind but wholesale rises to be up to what we expected was far beyond our expectations.

As you can see it is like to climb the AC .. !!

That is the reason for the headache .. !!

When you open a deal often find yourself a loser and then become a winner and a loser back then suddenly turns into a big winner .. !!!

Therefore Many beginners feel dismayed when the price starts to decline Fajova that the price will continue to decline may decide to sell at a loss and closing the deal so quickly for their losses. Thus Atzdad turn a loss into a real loss because they have completed the deal and closed it.

But the price has come back after that to rise and become winners after they were losers.

But too late, they have closed the deal at a loss if they are patient turned slightly to the floating loss of profit and then were able to close the deal winners rather than losers Aglqoha .. !!

It's all based on your confidence in the prospect you are confident of the safety of your expectations will not be afraid to nothing if the price dropped a little bit, because you are confident that he will return to rise shortly after.

The prospect of this will be based on the price movement analysis using technical analysis and news technologies, which we will talk about later.

It is like a game of biting fingers .. !!

Would win from able to develop its capabilities and the introduction of the reasons for analysis and risk management techniques ..

And it would win from the force of the nerves and calm the psychological and self-confidence ...

This requires long experience and practice and see .. It is worth the effort it ..

Millions in front of you and all you need is to learn how to reap the greatest possible ones .. !!

Corrective Movement Retracement or Correction

When you proceed to the movement of exchange rates often you will hear about that, "Doe currency moves corrective movement."

This is the nature of the natures of the price movement. What is meant corrective movement?

Is the same as the gradual nature of the movement of the currency that we talked about, but often within a wider time frame.

For example: if it was destined for the euro to rise during the seven-day 820-point rise, for example, it has the following form:

On the first day 180 points.

In the second on 150 points.

In the third on 240 points.

In a fourth day price drop 120 points.

In the fifth day price drop of 50 points.

In the sixth day the price rises 200 points.

In the seventh day rise 220 points.

As you can see, the total Artfh the euro from the first day to the seventh day. It is equivalent to 820 points, it was on the rise daily with the exception of the fourth day and the fifth day where the price dropped two somewhat by the rise to come back later.

The price movement is called in the fourth and fifth days, correcting price Retracement.

It is a movement to reverse the general trend of price movement.

You can be perceived as if the market takes a break with his breath after he has moved strongly in one direction for a period of time to be completed after the price to walk towards him again.

Of course, this rest period is not a requirement to be in the fourth or fifth day you may be at any time, and no one knows exactly when it can occur, but when the price moves in one direction for a period of time and strongly it is expected a correction in price and the lower price continued to walk in his direction without stopping the more likely near the corrective movement occurs.

Why is it important to know the truth about this price action?

When you know the truth and see that the currency rate continues to rise for several days has been considering the purchase of this coin, but when you see that this rise was strong and fast and sustained it is better to wait a bit before buying because it expects a correction in the price of the currency movement to go back and go down a little bit before they resume rise, it would be smart to buy the currency at that moment because you will buy more at a low price.

And vice versa in the currency, which decreases rapidly and continuously and continuously where correction Correction currency is going to be a little bit higher to continue to fall again later.

At the present stage it does not have to worry too much if you do not understand the policies included in this page once you start practice, you will understand all this very clearly and you'll see for yourself how moving exchange rates and have stated the nature of price movement here to let you know it is no more the Mnfem does this mean you can not Flabos now you will understand everything a little practice!

Major Currencies

Van As you know, each country its own currency in the international market are given a special code for each currency Symbol know him to facilitate the interaction between traffickers without errors occur for example, may resemble several countries in the currency with which the name. The dollar is the currency of the United States of America name and currency and coin Australia, Canada and many other countries, even to talk to errors when buying and selling has been internationally agreed that the currency of each country is given its own symbol known in various parts of the world icon.

For example, the US dollar is the symbol USD Acronym U.S dollar

And the symbol of the Canadian dollar CAD is short for Canadian dollar

And the symbol of the Australian dollar is AUD short for Australian dollar

Thus, for each trace any country has its own code symbol know its currency.

And you, in principle, you can buy and sell currency of any country in the world. But trading the currency market is concentrated mainly to the sale and purchase of four currencies, namely:

Euro: a single European currency symbol EUR.

Japanese Yen: Japan's currency, a symbol JPY Acronym for Japanese yen.

Pound: Britain, a currency symbol GBP short for Great Britain pound.

Swiss franc: Switzerland, which is the currency symbol CHF short for Confidralic Helevitica Franc.

In the currency market are 80% of the trading in the sale and purchase of the previous four currencies. But compared to what?

That is, when you want to buy the euro, what will pay interview? When you want to sell the euro so what you'll get?

When you want to buy the yen will pay what interview? When you want to sell the yen so what you'll get? On the US dollar.

Dealing buying and selling of currencies former is all against the US dollar.

Remember we said that currency trading pairs are in the form of pairs When you buy a currency that it must sell - pay - against which other currency, and vice versa. The currency that you get is the currency you are buying and the currency that is driven by the currency in which it sells.

In the currency market when you buy a euro sell the US dollar interview, and when you sell the euro will buy the US dollar interview. When you buy and sell the yen the dollar interview, when the yen selling will buy the dollar interview. Thus, the pound and the Swiss franc.

You may wonder:

Why are most of the transactions in these currencies in particular?

Can not buying and selling other currencies?

Answer: Did you ever think that you go to the cashier and ask to buy Thai Baht? !! If you try to find it difficult to find the ATM sell you Thai Baht.

Why ? Because few people are can use the Thai currency in your country.

But if I went to the cashier to buy or sell the US dollar or pound sterling example Vstgdama with ease because there are a lot of people they are dealing understanding of these two currencies are acceptable not only in the United States and Britain, but also from around the world that any demand on them is high.

Because the euro and the yen and the pound sterling and the US dollar are the currencies with the largest economy in the world countries, and because most of the dealings between nations and individuals are in one of these currencies is therefore 80% of the trading in these currencies.

The Swiss Franc doubtless that the Swiss economy on the strength of the economy, outweighing the previous four countries, however, the global custom-make of the economy and its currency the Swiss franc is a safe haven when the major international calamities, and no doubt you know that most of the world's rich keep their money in Swiss banks .. !! Because the US dollar is the most important of these currencies at all. It is the main currency for every previous four currencies.

When you buy a euro, you pay the dollar and sell them when you get a dollar. When you buy the Swiss franc, you pay the dollar and sell them when you get a dollar. As well as for the yen and the pound sterling.

The dollar is the common currency against all currencies where every other currency dealing separately against the dollar:

The euro against the dollar EUR / USD

The pound sterling against the dollar GBP / USD

The dollar against the Japanese Yen USD / JPY

USDCHF USD / CHF

These four currencies are called when they are bought and sold against the dollar major currencies Major Currencies in short Majors.

Other currencies

In addition to dealing previous four currencies against the dollar, you can also buy and sell currencies of other countries in the currency market is also against the dollar, such as:

- The US dollar against the Canadian dollar USD / CAD.

- The Australian dollar against the US dollar AUD / USD.

No you when you buy the Canadian dollar would sell - pay - the US dollar, and when you sell the Canadian dollar would buy the US dollar. The same thing applies to the Australian dollar.

Of course you can buy any currency against the dollar, for example, you can buy the Saudi riyal and dollar selling as you do when you go to a money exchanger.

But in the international currency market, the majority of speculators do not exceed the currencies in which we have mentioned is concentrated 80% of the deal on the four major currencies against the dollar.

This gives the advantage of focusing the shops currency market from other traders to other markets.

High multiplier

As I learned, there are many types of goods it can be traded equities, commodities, bonds and many more, and each type of private goods bourse where one chooses one or some of these types of trading him.

There are plenty of reasons why it is trading in the currency market is better than other types of trading markets and the most important of these reasons:

Work throughout the day

In direct exchange bourses exchange is to work for a limited period each day where the stock market opens in the morning and closed its doors in the evening.

For example: if you want to trade shares of American companies, you can not buy and sell only when you open the doors Naiuyork Stock Exchange in the range of 9:00 pm (EST EST) to 4 pm in the same time. This means you are limited this time to monitor the market, which requires a full-time, and this applies to all other exchanges, each according to the timing of its state.

If you work in an Arab country and want to trade shares on the NYSE, you are restricted to work between the hours of 4 pm to 11 pm which corresponds to the timing of the opening of the New York Stock Exchange for most Arab countries. Such a difference in working hours caused a lot of problems and difficulties in the long run.

In the stock exchange and because it does not have a central place specified, and because the process is done by the computer networks of the Stock Exchange Currency work does not stop 24-hour ..soy in the last two days a week (Saturday and Sunday) .. !! Banks and financial institutions in Japan are open 12 am GMT (8:00 pm Japan time) begins the buying and selling is not close Japan's institutions, but at 9 am GMT (5 pm Japan time) ...

But the work will not stop because it is to close the Japanese and Asian institutions, the most important in Tokyo and Hong Kong and Singapore so that the European institutions, notably in London, Frankfurt and Paris have opened their doors, and the convergence of the European institutions to close in order to be American institutions have begun to work, most notably in New York and Chicago , and to close its doors until American institutions institutions begin in Australia and new Zealand in circulation, and the last before closing its doors are Japanese enterprises have started a new day at work .. !!

Thus Depending on the timing of each country would be for you to deal continuously for 24 hours. With the exception of Saturday and Sunday ..lonhma holiday in all states.

When shut down American institutions its doors on Friday at 10 pm almost GMT, it will be a Saturday morning in Australia and New Zealand, a day off, as you know, so stop work into the evening on Sunday at 10 pm GMT, where on Monday morning in Australia and New Zealand to return the ball for the week, which followed days behind the day. In each country and by the timing of the end of the following week .. and so on. Of course you will not deal with all these institutions in each of these countries individually, but will deal with the brokerage firm, which in turn Stervtk with all other institutions across the world.

What concerns us here is that he learned, is that the action in the currency market will continue 24 hours a day throughout the week, and this gives you the opportunity to choose a time that suits you operate it without fear "that comes late," In the currency market can not come too late, because the work is continuing throughout the day because many opportunities and the clock.

High liquidity High liquidity

When you want to sell shares that they must find a buyer, and when you want to sell a commodity then there should be a person who wishes to purchase from you.

In some circumstances, when the news of what caused a sharp drop of the shares owned happens, all holders of shares that have like her want to also sell them, becomes a supply of stock a lot more than the demand for them and this causes a drop massive share price and quickly superhero So in some circumstances you may find it very difficult to sell your stocks at a reasonable price, but you may have to sell your stocks a great loss when Atjd there are those who wish to purchase. This is called the liquidity liquidity the ability to convert holdings of securities into cash and this also applies to the commodity commodities in the circumstances of the important economic and political changes.

In the currency market, Vldkhamh this market which, as we mentioned largest market in the world, you are always able to sell ownership of currencies in its own time and you'll always buy from you before it is too late and this feature reduces the risk that you may encounter in other financial markets.

Market fairness and transparency Fair and Transparency

Is the currency market is the fairest market in the world .. !! Why ?

Because it is a very huge market, it can not be limited to a category or point of what affect it easily.

For example, if you compare it to the stock market, if you own shares in a company once a simple statement of one of these officials, the company is liable to affect the stock, which is owned by down or up the price.

In the currency market and because it is a huge huge market can not be for an individual or entity that affect it, nor exchange rates affected only economic moves huge, estimated at billions of dollars, and are not affected, but official government data is not of any state but of economically larger countries such as the United States or Japan or the European Union. Or statements of finance ministers and central banks of these countries.

This avoids "movements" manipulation that often suffered by owners of young stock and carried out by business executives and top shareholders, which may - say may - they may have a personal interest in raising or lowering stock prices, there has been a lot of these stories even in the shares of international companies despite the stresses of procedures and controls.

The magnitude of the currency market and they are not affected, but the official statements of the largest countries in the world economically and with officials of these countries official makes the most transparent currency market, no secrets there is not manipulation. This avoids the shops currency market a lot of bumps "hidden" that traders may face in other markets. Take advantage of the bullish market and bearish market

As mentioned trading and get a profit in the commodity can initially be it bullish or bearish market.

In spite of this, most dealers do not stock markets, for example, traded only in the rising market.

What does that mean ?

Meaning that the majority of stock market traders are looking for stocks that they expect that prices go up in the near future to be buying these shares in the hope of selling them at a higher price, but when they know that the shares of a company will fall not they take advantage of it do not they sell the stock to re-buy them back at a lower price of the sale price and keep ahead of the two rates as profit. Why ?

Because trading in bear market equities is characterized by complex and frequently restrictions, making it the area dangerous, because the states and Exchange Commission imposed a private trading market bearish in the stock systems for fear of being deliberately company officials or those with an interest cut stock prices for their own benefit, so there are a lot of restrictions that make from trading stocks in bear market is a complex issue that does not deal only with professionals and owners of extensive know-how.

As well as in commodity markets Despite that you can trade and get a profit when you expect that the price of a commodity will decline but in practice the majority of dealers in commodity markets also tend to work in the market bullish, or are just looking for the goods that they believe that prices will rise, while in the markets bearish for commodities Few are dealing with.

This is because commodities mostly traded in a special way called derivatives derivatives as mentioned a method is difficult to explain here make trading market bearish characterized by high gravity therefore does not deal only by experienced and potential high and know-how, while the vast majority of traders from ordinary people, they and the principle of safety We deal only in the rising market.

As he told her the various currencies as the market bullish and bearish market faithful Sian .. !! And everyone can be traded in the currency, whether the expectation that its price will rise or fall without the risk or increase revenue but less same is true in both cases.

Why ?

If you want to interpretation it is because the currencies are bought and sold in pairs pairs rather than individually. When you push a dollar and the Japanese yen, it means you sell the dollar and buy the yen, when the yen push the dollar buys you practically have to sell yen and buy dollars and buy.

What is important to understand now that in the currency market and unlike other markets it can be traded in the market bearish market Kalmtajerh quite bullish, which gives high flexibility and much greater opportunities for trading and get profits.

It is another advantage of the currency market to the rest of the other markets.

The clarity of the currency market and the relative simplicity

It is the result of the magnitude of this market, making it not only with data affected the overall economy.

When you are trading shares your task is clear, as we mentioned, a search for the company expects that its stock price will rise in the near future. But the search is not a trivial issue .. !!

There are dozens of companies, but hundreds and thousands of them, and this requires a study of hundreds of companies and performance so you can see which ones will increase the price of its shares, and this requires time and effort enormous, and despite the fact that there are modern ways of scanning and filtering, and there are specialized institutions to provide advice that you need, but that the matter remain tired of the large number of companies.

In the currency markets, and despite the fact that there are tens of currencies that can be traded, but that 80% of the deal the currency market is the only four currencies, the euro and the Japanese yen and the pound sterling and the Swiss franc, all these currencies against the US dollar, and if you want to expand, there are eight currencies only It is of interest to traders, which are limited to 90% of their operations. This means that the options in front of you is limited, which makes the issue easier and more focused, and this undoubtedly helps you to succeed without reducing the revenues compared to equities.

This hand ..

On the other hand, as we have stated talking about the fairness of the market the stock markets are affected tens of factors, some obvious and some hidden. Before you buy a stock company must have studied the performance of this company for a long time earlier and be familiar with the performance of competitors and to know in no state to which they belong this company and its economy in the global economy .. etc .. etc.

Such studies require stores that have the economic and accounting and extensive background to be able to evaluation and judgment properly, although the presence of Homes for expertise and consulting, but that these services are not offer free of charge, but a fee is often high. But if you want to do it on your own, you must prepare yourself to years of research, study and training in order to proper assessment of the performance of companies.

In currencies Vldkhamh this market and because it is not primarily influenced by macroeconomic only with data, the issue is much and what to Aigas easier.

And despite the fact that currency trading also requires a lot of research and practice, but it does not require to have shops that economic and accounting background that you need equity markets to be successful shops. So find a lot of successful traders in the currency market belong to the backgrounds are not necessarily linked to the economic domain, there are traffickers in much the engineers basically, doctors or staff or students.

We do not want to understand that the issue of currency trading is quite easy, of course not .. but we mean that everyone, even they have no significant economic background can practice and experience and see reasonable to be successful traders, unlike other markets.

High multiplier High Leverage

You now know that the multiplier is the ratio of the amount that asks you to push a token for every unit of the commodity to the full value of the item. As you know that the basis for the introduction of margin based on the multiplier that enables you to trade a commodity worth more than what you pay dozens of times while retaining full profit like you actually have the item.

The higher rate was double that gives them a company that was able to deal with the trade of material worth more goods without having to pay a large sum as a deposit refundable, and this gives you access to the profits increase by increasing the percentage multiplier.

For example: When you allow the company to double by 1:10 you will be required to pay $ 1,000 for trading commodity worth $ 10,000. But when the company allows to double by 1:20 you will be required to pay $ 1,000 for trading commodity worth $ 20,000.

As mentioned you can calculate the amount required margin boost user from the following equation:

User margin on each lot = contract / double volume ratio.

As you know, it can be traded on a margin in all financial markets. Whether you choose to trade stocks or commodities or currencies, you will find a lot of brokerage firms which opens you to the field of trading volume exceeds several times your size.

Differ percentage multiplier awarded by the brokerage firms by market type Depending on the company, which will deal with it. Is the currency market is a market in which the largest double the proportion among other markets are available up to 200 times .. !! No return for payment of the amount of $ 1,000 margin the user will be able to buy and sell currencies worth $ 200,000 .. !! It is the prevailing rate in the currency market is a lot larger than the percentage multiplier that can be obtained in other markets.

These previous reasons we believe that the international currency trading market, the marginal system provides the best opportunity and risk at least the normal term for economic specialization and the accounting for the stores, it is the most open to the majority of people field.

So we will allocate the rest of the lessons to learn how to trade and founded the international currency market, which, if granted what you need to practice and informed it would be the quickest way to get material return huge Whether you choose to work part-time or partially.