Tag Archives: forex 4h trading strategy

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Daily Chart Vs 1 Hour Chart Which One Should You Trade? ForexMentorOnline

High Risk Warning: Forex, Futures, and Options trading has large potential rewards, but also large potential risks. Check out XE Charts Please keep in mind that forex trading involves a high risk of loss, and no guarantee is made that the investment on the charting applications will be recouped. The plan does not have to be complex, and you may find it considerably easier to maintain discipline and execute the trading plan if it has relatively simple rules. Then as part of your daily Forex trading training, refer to it each time you place a trade in your demo account until your understanding of the rules of order entry, bid and ask price, stops and limits, come automatically without thinking. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed in any material on this website. In our Price Action Course , we have actually done quantitative strategies based upon the 4hr time frames for price action patterns which showed some amazing data.

I am in many forex forums and foreigners get surprised when they hear that forex trading is illegal in India. Most forex brokers don’t charge any fees, so that you won’t have any initial expenses, but they make their profit through the market spread. If they are a trading scam , poorly managed or in financial trouble, you could lose all your money, regardless of how well you trade.

For example, if you’ve chosen forex, search the following term What are the best currencies for forex traders to trader?” Continue on with your research and you’ll have a list of great assets to start with. However, regulatory modernization has allowed smaller traders to engage in Forex by allowing high-leverage trading. As a trader, this is bound to overwhelm you, and most new traders will want to hear a few golden rules that they can use to begin trading. The other problem that effects all trading is that of sideways movement – when the price is just drifting up and down within a narrow range (usually well under 100 pips) and so results in a string of buy and sell signals that go nowhere. Considering that Trading is a job and not a game, it is fundamental to approach it in the right way.

Please, remember that the past performance of any trading system or methodology is not necessarily indicative of future results. I have also no record of any sustained profitable trading account based on high leveraged, short-stop trading. Provides trading volume rebates and incentives for most popular foreign exchange brokers. The knowledge you need to increase your trading consistency and chances for success.

OANDA’s Mobile trading app offers more than 40 indicators, overlays, and drawing tools including Moving Averages, Bollinger Bands, Ichimoku, MACD, Fibonacci tools, and trendlines. The trading strategy is also limited to trading the following currency pairs: AUD/JPY, EUR/USD, GBP/USD, EUR/CHF, EUR/JPY, UDF/CHF, AUD/USD, USD/CAD, GBP/JPY and AUD/NZD. Me neither, and the same is about to be true for financial trading without social trading networks. The Top Dog Trading 5-Energy Methodology doesn’t require any special or proprietary indicators.

While these smaller accounts typically offer a lower leverage value than a full account, they allow investors to still reap the profits from a wise trade. The Plus500 non-deposit bonus is ideal for traders who wish to take the Plus500 trading platform for a test run before deciding how much money to deposit in their trading account. It would be wiser to look for a forex broker that offers a variety of lot sizes, including smaller ones which are perfect for traders who are new to forex trading and don’t want to risk large amounts of money. I’m going to give you the unpopular answer: it is not easy to make consistent profits in forex. By relying on my mechanical trading system rather than manual trading, I enjoy several benefits. This is called a swap” or rollover” because in effect you are swapping” or rolling over” a position you held on the first trading day to an identical position on the next trading day.

I would be interested in your views and also would like to know at what point does the pivot points and support and resistance lines reset for the next trading day, when working in a different time zone to the USA. Binary options trading indicators are nothing but mathematical values that are plotted on the chart. The U.S. CFTC (Commodity Futures Trading Commission), which regulates futures and commodities trading, warns new investors to be wary of frauds and scams that promise huge profits from your investments, in and out of the Forex market. So, in most of the cases your will be able to get the best Forex trading bonus from the new coming brokers. Yes Forex is a good way to earn money, however you can win fast and also lose fast.

It remains to be seen if the dynamism of the forex market will displace some of these indicators from the list and bring in others. Part of this is knowing when to accept your losses and move on. Always using a protective stop loss is an effective way to make sure that losses remain reasonable. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this website. To help you spot daily opportunities, DailyFX has created a 4-week no-cost course via their twitter feed, @DailyFXEDU In a few minutes a day you can follow @DailyFXEDU to see daily opportunities that align with the indicators presented today. Trading binary options is not absolutely risk-free but we can help you minimize it.

You see, one big frustration for forex traders which often times gets them into trouble is the fact that they are underfunded. A rules based trading system means you do not guess or use discretion from trade to trade. Learning to use and implement a basic intra-day trading strategies can cut your losses by 63% immediately and will increase your profitability chances in the long run.

Setting the goal of making $10,000 annual profit with a trading capital of $500 is very enthusiastic, ambitious and optimistic – all very likable qualities – but such mission impossibles are best left to Hollywood. Luca Moschini is the founder of Sharper Trades, an online trading education site offering a comprehensive training program based on candlestick analysis, technical analysis and option strategies. So what we want to do is build in the trading time in a rather limited amount of time each week. Letting profits run can be psychologically difficult , as some profit is always given up at the end of the move. The forex scalper is much less likely to set a distant take profit limit and attempt to trail the stop behind price. All in all, you made 160 pips trading either one mini or standard lot each time.

From our previous article on ‘How Forex Works’ we know 2.0 Lots is 200,000 units of the Base Currency (EUR, in this instance). Any good rules based forex trading system will also have rules for money management. Due to my findings above I am not able to provide a recommendation to the 5 pips a day program. The best trading systems in the world will let you down if you do not apply proper Money Management. So the answer is that it is probably the safest and most effective way to start trading the market. Many experienced traders will say that a trading plan is the key to success and traders must have a very clear vision of what goals they wish to achieve. When it comes to serious trading there is no difference between a live and a demo account, and a small or big live account. For example, the second link in the learn the basics” section of this article is called What Is Forex and How to Make Money with It?”. Ok, i have not told if there are any secret stratigies out here to trade on forex.

All you have to do is bracket the high and low in the first 5 minutes; then use that range plus previous high, low, open, and close to plan trades throughout the day. Risk Warning: Trading Derivatives involves a high level of risk and may not be suitable for everyone. I am glad to hear the move up in time frames has not only improved your trading, but also helped you trade more relaxed and calm which is critical to trading. Fast-moving trading systems need some sort of automation to help manage positions. XM(XeMarkets) is a trading name of Trading Point Holdings Ltd, a financial services provider that offers online trading in the global financial markets. This recommendation is provided to the subscriber of the signal service of Forex.

Like I say, I haven’t done all the reading on Forex I would like, and I won’t make a move until I’m satisfied I know what I’m doing and have studied the hell out of it. I’m like this with everything. And you can learn to turn $10,000 into $130,000 in one year on just 10 pips a day. As counter-intuitive as it may seem, learning to not try as hard was one of the things that completely changed my trading career for the better.

The Essential FOREX Trading Basics By Anthony Grosso

Can Forex Trading Make You Or Break You? By Maria Agha

In order to trade successfully you need to understand what a pip is and how to calculate its value. Trading Forex profitably demands a high level of discipline and a strategy helps you to stay focused and avoid emotional trading which has proven to be the downfall of many traders. A lot of people trade forex from india and i haven’t heard of a single person getting into trouble ! Ladies, gentlemen, monsters, and robots, let’s give it up for NickB, the winner of July’s Best Forex Trading System! Then sit quietly and wait for a pin bar to form at a price point fairly well off of the moving averages (say, about 10 pips or more either above or below the moving averages). Free dollars usage means that they are not allowed to convert the Indian currency to dollars and then use those converted dollars for trading. I highly recommend this quick and well written guide to forex trading or investing in general.

IF you are really interested in starting a forex trading business, then you can totally depend on these info worth thousands of dollars but i will give you free of charge. In my opinion, its important to have professional guidance and disciplined approach while trading IntraDay. Above you see the 4-hour chart of the USD/JPY Forex pair for Mar 29 – Apr 12, 2015. Overall I quite like the ideas you expose here, but I feel the main point which is the expected return computed from the integration of maximal curve is missing, as this is what is verifiable in live trading or backtest. Take your time to find a forex broker that is worthy of your trust, before you ever send them any money. The 4h RSI – Bollinger Bands strategy is a universal strategy that can be applied to any currency pair.

Trading in this manner eliminates many losing trades that are the result of trading emotionally…or without patience. If I set my limit to 1.1535 on that same trade, then later in the day (or the hour), when the currency moves up to 1.1535, the system AUTOMATICALLY exits the trade, and I make money.

I am using sniper for forex and looking a good one like it for eminis and commodities. We left our son – by then a spirited 2-year old – with my parents and went on a 10-day Caribbean cruise, all paid for through Forex profits. An excellent set of trading features are also offered by the best Forex brokers in the industry. Now, when you have a smaller list of available brokers you should start looking at the instruments for your trading and their pricing amongst the brokers. It is always highly recommend to select a properly regulated Forex Broker in order to benefit from the important protections mentioned above. It is the lack of this information that leads most traders to use the wrong set of indicators when it comes to trading. You can hold FOREX trades for an extended period of time if you’re properly capitalized, which means leverage should be less than 30:1.

Since markets are often trendless or trading sideways for long periods of time, I have plenty of trading opportunities. If you just started out as a Forex trader, you have funded your account and all ready to start trading. It still gives him enough time (but not too much) to make decisions based on his trading plan. The Only Proven Ebook to take you through all the steps to make your first profitable forex trade. PPI technology intelligently routes currency trading orders to detect liquidity hot-spots to ensure optimal pricing for Australian traders. If you bought the GBP/USD at 1.55508 and sold it at 1.56791, you would have made 128.30 pips (1.56791-1.55508=128.30).

The best way would be to trade a demo account with an amount of money you plan to open a real live forex trading account with. His forex profit accelerator course has been designed specifically for beginners. Simply put, your trading plan is your Bible, the rule book governing your trading decisions. When you make a forex trade, you are buying and selling currency and, in essence, betting on the fluctuations in their exchange rates. Forex trading raises the stakes further by letting you trade with borrowed money (leverage), but you’ll be responsible for all losses, which may exceed your initial investment.

This is why many traders decide to employ gearing, also known as financial leverage, in their trading – so the size of the trading position and profits could be higher. As a result time-based charts (e.g. 5 minute charts) will be correct, however, a tick chart will not. The majority of people will tell you something like ; there is no arbitrary strategy in trading. Because of the massive strengthening of the JPY, the pip value of the USDJPY changed, and moves became more valuable per pip in USD because the JPY had risen so aggressively against the USD.

The CFTC has issued several Consumer Fraud Alerts in connection with foreign currency trading. We understand how important it is for you to have a trustworthy Forex trading broker and we know that you would not want random people to tell you where to trade and which sites to register with. Below we have outlined the various indicators and the logic behind them and then we will give you some tips on combining them into a simple strategy. However, the factor that should ultimately drive your chose of trade is your personal trading goals You should first determine your specific goals and then devise a plan to these goals. Now compute your long-term capital gain or loss by multiplying the total on line 7 by 40 percent.

I concur that Forex market is highly flexible but it is also more risky than the binary market. The Forex Orders Types page provides more detail on stop losses and other orders. To solve this problem, you need to find out how many US dollars it takes to buy 4,550 Canadian dollars. If you simply aim for 400 pips per month, for example, who knows how much each pip is worth. Other things to watch out for with forex trading robots is that their vendors often provide profitability numbers based on back-tested trading results over periods for which the robots are optimized to perform well. Maybe you’ve already tried your hand at forex trading – and weren’t pleased with the results.

In case the forex limit exceeds USD 2,50,000 or it’s equivalent for purposes of Emigration, Education and Medical treatment, additional supporting document is required. This is the #1 reason why traders fail It is human nature to want to vary or break rules and it takes discipline to continue to act in accordance with the established rules.

A trading plan will help you contain emotions and follow rule based steps governed by rationale. I use a +30% bonus on every deposit, very comfortable, it helps to get additional funds for trading. Example 2: if the EUR/USD pair increases by 10 pips (10×$10) from 1.5000 to 1.5010 with standard lots, then this is a $100 increase. If this is you, and you’re reading everything you can get your hands on to develop your own style, stick with the 4HR & Daily charts. They work almost perfectly during times of volatility but are still effective in less volatile times, if used in combination with one or more other indicators. As most of you know I am a self-taught trader I did not learn Forex from a book.

For heavens sake, dont lose your hard earned money to shady forex brokers operating in India from Russia or East Europe. The one special thing about this Forex automatic trading system is that it will help you make profitable trades with as little as $250 or even less. Hi. If you are starting with say, only $50 then this is realistically too little to invest in stocks and shares. Knowing how to calculate profit and loss while trading helps you clearly understand your success or failure rate as it directly affects the margin balance of your trading account. If a forex trader has 6 months to one year of trading experience and is consistently making positive pips, it is possible to loosen” some of the forex trading rules and look for more trading opportunities. There are many online brokers who misguide retail investors claiming forex (spot) trading can be performed legally via them, however it is not true.

CopyFX : This is the social copy trading service of RoboFOREX, an international broker established in 2009 with a focus on providing tools for expert auto robot traders. MT4 is one of the world’s most popular FX trading platforms, City Index MT4 also offers some of the industry’s lowest spreads on FX pairs and is fully compatible with expert advisors. High frequency trading:5 Pips A Day Forex Robot will work hard to build a trader’s account position. That said I won’t discourage anyone in love with day trading to go ahead and apply it on lower time frames. Scottrade has the foundation in place to rise above the other top online stock brokers, but they fall short when it comes to innovation. The window shows the current level of volatility in the market as well as the volume traded that day.

He should enroll in a reputable course in Forex online and familiarize himself with the currency market by setting up a demo account on one of the many online sites. This day trading strategy generates a BUY signal when the fast moving average ( or MA) crosses up over the slower moving average.

We have learned the hard way, through trial and error, and we have come up with some of the best forex trading software and systems available in the world today. For two years in a row my trading robot doubled my account, but this year, 2014, it is not doing well.

Advantages Of Automated Algorithmic Trading By TonySchwartz

Foreign Currency Trading For Making Money The Smart Way By Myles Agnew

The simplest way to put it is this: one pip is one unit of the smallest measured decimal place. Soon you will find that other novice traders are following you and your Forex recommendations as their thinking process somewhat fits that of yours. As our trading product is digital it is available for instant download immediately once payment has been made.

I will explain the top 5 RSI trading strategies that we hear so much about, what they mean and how to trade using them. Options home trading course platforms: Tradi; forex economic calendar strategy spend your spare time doing offers area. Remember – a stop loss is always at the second nearest SAR dot on the 5 min chart.

The Indian financial market including the trading in the financial instruments is regulated and governed by the Securities and Exchange Board of India (SEBI). Risk Warning: Trading Forex and commodities is potentially high risk and may not be suitable for all investors. We list the world’s top regulated and authorised brokers suitable for a global audience. It turns around 9 trillion USD daily and it works 24 hours a day, 5 days a week. I am a self trader actively trading the six USD pairs and EJ during the London and New York sessions on the one hour charts. Every successful Forex trader I’ve ever met uses price action in some way, shape or form.

Changes in value are measured at this decimal level and represent the smallest possible increment in movement. The most important tip I can give anyone, whether they are starting out or have been trading for a long period of time, is to build patience. You can reach as low as 0.2 pips, which gives you a real advantage in Forex trading. The choices of trading accounts in IQ Option are somehow limited because, as it currently stands, you have two types of trading accounts at your disposal, namely, Normal Account and VIP Account. Other better-ranked brokers such as Pepperstone and ThinkForex provide 500:1 leverage options. If I achieve my goal for two consecutive months, I plan to reward myself by taking a holiday with my family.

After the win you’re feeling excited and proud of yourself, and you have every right to be. But pride and excitement have no place in the Forex market. Lastly, the 13-pt rating list completely rules out intra-day trading A trading plan should be flexible enough to incorporate both. From my point of view this trading system looks pretty straight forward, but the messy part comes with the actual trade execution as there are multiple variables and constraints to consider. HotForex offers its clients an unparalleled trading experience with excellent multilingual support in an effort to provide its clients with every advantage possible in order to facilitate their trading activities. Environment with no dealing desk intervention will allow Forex traders to realise profits no matter how big they are.

To learn more forex tips and get trading signals, click here to download my FREE 56-page ebook Forex Trading To Riches. These rankings rate traders based their trading performance over a given time period, according to the parameter of your choice. Once you have a strategy that you are comfortable with then the work load can get lighter. It, is a proven system that relies on the basics of forex analysis to create a predictable and actionable trading situation, day in and day out. I’m not starving or anything, but I like the idea of trading for an hour or two with small pips for additional income I will further invest. The reason price action works, or any style of trading that’s technical in nature, is because enough traders see the same thing at the same time, that’s it! Use overlays and technical indicators for enhanced technical analysis capabilities.

Based on your risk parameters, decide which currency pairs are best suited to your trading strategy. Hedging Forex trades is actually quite easy, just open two different accounts…one for longs and one for shorts. Naturally, all brokers claim they offer the best spreads, but simply saying something, does not make it so. It is up to you to do your investigative homework to identify brokers that offer the best value. Margin, or the minimum amount of free equity on your trading account required to open a specific position.

In forex swing trading, my mechanical trading system uses a set of mathematical rules and indicators for buying and selling forex pairs. In a Trading Scenario, several entry points have descendant risk degrees A Trading Price Range can show several entry points favorable for new trades to take.

Therefore one should always try to begin trading with least or no leverage, to remain in the business longer. Losing trader tend to prefer section 988 because there is no capital-loss limitation, which allows for full standard loss treatment against any income. With the variety of assets on offer, you will definitely find those that you are comfortable trading with, in order to ensure consistent winning trades.

Moving averages are undoubtedly among the most popular trading tools and they are great to identify the market direction as well. After years of trading and testing, we must tell you there is no way to filter out all false breakouts. The unfavorable risk to reward ratio brings us to the next reason why the 10 pips a day strategy is dangerous – unrealistic expectations. The Forex market is also widely accessible and plenty of resources are available.

This table will include live performance data for more Forex robots with no limits, while you will have to do your best to pick up the most suitable system for your trading style. I tested out each of the top four brokers (I actually tested several in the top 15) and simulated the trading experience. The Metatrader 4 platform is the most popular trading platform in the world and is found in most countries.

SUPER ONE MIN TRADING SYSTEM, as the name suggest, uses 1 min chart to trade, it gives you tight stop loss with precise entry and exits. This price action Forex trading strategy is very simple and you can master it very fast. By keeping all that in mind, you will manage your risks effectively and increase the profitability of your trading account. Though we avoid trading breakouts, the guppy MMA shows us exactly when this is happening.

Once they learn to do the opposite of what they are currently doing they begin to turn their trading around. To get the long term chart, the intermediate chart would be multiplied by five (or 4, or 6). Therefore, the long term chart might be the daily chart (4H chart x 5 = 20H, 20H is close to Daily chart). I’ve found over the years that many people, including Forex traders lose site of this very simple fact.

Installing 5 pips a day forex robot is as simple as ever, after downloading it, you just need to simply follow the wizard installations which will guide you in the process of installing this robot on the trading platform of your chosen Forex broker. I’m against aiming for any number of pips within any specified period of time – more on this later.

Do It The Right Way

Forex For Profits

I joined their service, and they receive bonus through hotforex and we benefit from trading robot (hedge). If any trades closed overnight, a professional trader will document it in a trading journal, reflecting on profits or losses. Since I trade the 4-hour charts, a 120-period SMA will give me the average price over the last month of trading (4 120 / 24 = 20, and a week of trading is 5 days), which I find to be a good reference point. I would like you all to explore an alternative safe way to earn from forex trading without violating RBI norms.

Many experienced traders have already taken their chance and started benefiting from this fast-growing economy with binary options trading. This is part of the magic” of forex trading, the fact that you can control a large amount of money with just a little bit of money. Alternatively, it may neither reach the stop nor take profit level in which case the trade remains open. Risk Warning: Forward Rate Agreements, Options and CFDs (OTC Trading) are leveraged products that carry a substantial risk of loss up to your invested capital and may not be suitable for everyone. With thinkorswim, you can access global forex charting packages, currency trading maps, global news squawks, and real-time breaking news from CNBC International, all from one integrated platform. Instead, try to remember that Forex success is based on a mixture of preparation and stubbornness.

Here you will find jokes about traders, caricature of Forex brokers and full-rate Forex off top. Forex trading carries a high level of risk and it is possible to lose more than your initial deposit if using leveraged products. In order to comfortably withdraw $5000 per month from forex trading fulltime, I will actually have to make more than just $5000.

If trading software truly works you will be able to get a certified track record from the software provider. The value of a pip depends on the trading volume and is expressed in units of quote currency (the second currency of the pair). To understand leverage properly for trading purposes, let’s use a well-known concept. Hello LuckScout team, thanks a lot for this massive content of relevant information about forex trading. Then, understanding the market direction is easier and profits come more readily.

It is important that, whichever broker you choose to open an account with, will have a trading platform that makes you comfortable. With and a demo account for you to practise with, forex will make more sence to you and you can hope for that financial freedom you have always dreamt about. Forex trading is a move advanced type of investing but is one that has the potential to be very rewarding. Trading on the higher time frames means I have to be more patient for a trade setup to develop but that patience helps me focus and my performance. A 7 pip stop is far too tight for my liking due to volatility, so this would have to be increased meaning risk/reward is now less than 1. Before anyone can succeed in trading, he or she must spend time doing homework, as well as ascertain personal strengths and weaknesses, schedule, risk capital and trading experience/ knowledge. Trading foreign exchange on margin carries a HIGH LEVEL OF RISK, and may not be suitable for all investors.

This is the pip difference between the bid price and the ask price done for the currency trading sum. We are now going to create our first note, our trading plan template, but the process is almost identical to creating a notebook. This value varies with the currency pair you are trading as well as the broker you are using to make your trades. If your position’s value has risen above or dropped below your cost basis by the time you close the position, it will generate either a capital gain or capital loss.

Now, even if you missed them, you have another chance to get those same videos to help take your trading to the next level. The MT4 trading platform is a very simple trading platform which has brought financial trading in to peoples home across the world. To calculate your entry point, simply subtract the 40 pips you are willing to risk from your stop point to arrive at 121.59 (121.89 – 40 = 121.59). If you want to succeed at trading forex, you can never lose sight of this reality to trading. These market moving indicators for the USD were selected based on the average number of pips by which selected USD currency pairs move following the release of these reports. When you are monitoring the forex market, if you see a pair that has been moving for several hours, you missed the move. As previously said, trading on the forex is exciting, fun and dynamic, but it’s crucial not to get carried away because of this. The 4 hour is actually the only candle that displays this behaviour across platforms.

If you lose more than what you make in forex you do nt have at least one of the above essentials. This comprehension will help you as we continue our discussion about currency trading. Trading is tough; if it was as easy as reading a book, and there are hundreds of books by great traders, then there would be a lot more successful traders. Super One Minute Forex System is a simple program that has tremendous power – all due to the revolutionary trading process I’ve put together.

She had numerous meetings and often traveled, yet she insisted on day trading stock index futures. On top of that, it’s really up to you do decide what kind of Forex trading system you want to use. Forex trading is done on the margin – this means that the size of your trade can be a lot larger than the size of your deposit.

There are no rules against going short the ES, traders simply sell short the ES contract in hopes of buying it back later at a lower price. Each whim has a chance to work out, and may even work out several times in a row, but luck eventually runs you. A good trading strategy will produce most profits out of the least winning positions. Yet on their counter party side trading is very different, they should try to keep the order book minimal since everything that’s left at the end of the day will be the risk of their company. We do not approach price action in such a mechanical manner making trading decisions based on pure patterns only. I agree with the points on Volume; however, I have never been able to find something in forex to indicate volume that I truly trust. Similarly, if the last break was of a down fractal, then the market direction is down on the 4 hour chart.

Most of the really successful forex traders are patient, modest and open-minded, but have also developed their own advantages after a long time of relying on signals from their Forex experts. After reviewing Forex MegaDroid and Fap Turbo, where they consistently got better than 95-97% accuracy, 100% success is not so far away. It’s important to answer the tough questions first, that is what will separate you from the vast majority of those losing money trading. Forex trading entails significant risks and is not appropriate for all investors. Forex trading only with one time frame is like blind trading, you will not know what is happening in the bigger picture.

Although regular stop loss orders are not guaranteed, and can therefore be exposed to similar slippage in fast-moving markets, it is possible to guarantee stops with many brokers which can defend traders against these moves. This is why 5 Pips A Day Forex Robot’s has an exceptional recovery factor of 40+.

Many individuals who trade from their home or even on a mobile phone make profits by scalping. Vice versa, if you’re trading off of emotions, you’re most likely going to abandon your money management principles. It allows investors to review and copy a variety of other high-quality traders as well as some carefully selected automated trading systems (Algo-Trading). He enjoys sharing the trading wisdom and knowledge he has gained from his own trading experience and from other successful traders. Also, the different in pips between the bid and ask is called the spread (see forex spread ). The spread is basically how your broker makes money since most forex brokers do not collect an official commission. Even a person new to forex trading can see the arrows on the chart and learn to trade this powerful yet simple method. It is the amount of money in your trading account with which you can open new trading positions.