Commission Free Trading We are able to provide this level of service to our clients because Realtime Forex SA is a market maker, not a broker. There are, therefore, no mark ups, commissions or charges to pay. Our profitability, as our clients', depends solely on our trading ability 20 : 1 Leverage (or even greater) Realtime Forex SA allows greater leverage than the equities, futures or options market. Traders can utilize 20:1 leverage (or even greater) without risking a margin call situation. Leverage is a double-edged sword. Without proper risk management this high degree of leverage can lead to large losses as well as gains.
Wednesday, October 5, 2011
Online Tutorial
Technical and Fundamental Analysis There are two basic approaches to analyzing the currency market, fundamental analysis and technical analysis. The fundamental analyst concentrates on the underlying causes of price movements, while the technical analyst studies the price movements themselves. a. Technical analysis A Technical Analysis is what one uses to attempt to predict future price movements, based on past time framed analysis and the reading / understanding of graphics. Although within a Technical Analysis various thought patterns exist, generally all are based on historical graphics of a currency. As long as one realizes the various differences of Fundamental and Technical Analysis, both can be used to parallel one another, even though both may present different conclusions.
Trading Expectation
Psychology of Trading Expectation and Sentiment Fundamental and technical factors are undeniably essential in determining foreign exchange dynamics. There are, however, two additional factors that are paramount to understanding short-term movements in the market. These are expectations and sentiment. They may sound similar, but remain distinct. Expectations are formed ahead of the release of economic statistics and financial data. Solely paying attention to the figures released does not suffice in grasping the future course of a currency. If, for example, US GDP came out at 7.0% from 5% in the previous quarter, then the dollar may not necessarily move as you would expect it to. If market forecasts had expected an 8% growth, then the 7.0% reading might come as a disappointment, thus causing a very different market reaction from the one you were expecting had you not been aware of the forecast.
Online Tutorials recommendations
The 8 most important trading recommendations
1. The Trend is your friend
2. In up-trends, buy the dips; in downtrends, sell bounces
3. Let profits run, cut losses short. Always use protective stops to limit losses and move them only to reduce potential losses or protect newly achieved profits
4. Set up your plan before entering the market; don't trade impulsively
5. Employ at least a 3 to 1 reward-to-risk ratio
6. When pyramiding, follow these guidelines: a) Each successive layer should be smaller than the preceding one b) Add only to winning positions c) Never add to a losing position d) Adjust protective stops to the break-even point (or better)
1. The Trend is your friend
2. In up-trends, buy the dips; in downtrends, sell bounces
3. Let profits run, cut losses short. Always use protective stops to limit losses and move them only to reduce potential losses or protect newly achieved profits
4. Set up your plan before entering the market; don't trade impulsively
5. Employ at least a 3 to 1 reward-to-risk ratio
6. When pyramiding, follow these guidelines: a) Each successive layer should be smaller than the preceding one b) Add only to winning positions c) Never add to a losing position d) Adjust protective stops to the break-even point (or better)
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