Forex Tips

Expert forex trader always use the stop loss
All forex traders or at least most of them, in my opinion, have some minor ego issues. Each trader will enter a trade without blinking twice, but when it comes to determining when he should execute the deal for profit or in purpose to cut loses, they’re having a problem. Every trader should know when to place their “stop loss” without hesitations. There are a few common methods of choosing where to place the stop loss order such as Fibonacci and Support and resistance

If you choose to define your stop loss level by using the support or resistance system, you should first decide to go long or short. If you choose long you should place your stop beneath the closer support point. If you decide to go short you should place you order higher than the closet resistance level.

Forex traders who prefer the Fibonacci system for placing the stop-loss need to initially calculate the move. For example if the EUR/USD moved from 116.84 to 118.51, meaning we have three retracing levels at 117.87 (38.2%), 117.67 (50%) and 117.48 (61.8%). According to this example you have entered the trade at 117.80 and your stop loss should be at 118.45.

There are many more methods that can help you decide where to place your stop-loss, but these are the two of the most common. While trading the forex you can use more than one system for placing the stop-loss order. Only by testing all the different systems in different situations you’ll know which one fits and when. I recommended testing those methods in a demo account first, tolerance is worth money.

Forex tips: smart money management

The foundation stone for success in forex trading is smart money management. Realizing and knowing how to do that is what spread the kids from the big boys. The wise way to make a huge profit is by managing you trades in a way that you’ll invest only around 1-2 percent from your main capital. It will take time but in the end you’ll see that all your small profits sum up to be twice or even three times the size of the amount you started with. Novice traders usually think that the forex

market is a magic-market where you invest a lot of money in one trade and made a fortune in a few days or even hours. Yes, you can do that, and maybe you’ll even profit in the first time, but in less of a week you’ll loss all of your main capital. When dividing your funds into a couple of trades it is very important to use stop-loss and limit-orders to look after and observe your investments.

The forex market is very unstable; he can be very beneficial but without the proper knowledge and approach you will go bankrupt. It is not possible to win each and each trade. The principle is to know how to keep your losses low and your profits high, so in the end your profits will overcome the losses. Don’t take each lose as personal issue, remain with high moral. A true trader doesn’t measured by the amount of losses and wins he had, but the amount of money he got in his hand eventually. Realizing that will help you save a lot of time and effort.

Forex tips: OPEC raises the bar up to $60.47 per Oil barrel

Here are some hot forex tips and recent news: The past week people all over the world were with their hand on the pulse waiting for a formal decision from the Organization of Petroleum Exporting Countries.

While the Oil prices where volatile due to the new OPEC cartel’s output policy,

Contradicting Algerie Presse Service last weekend rumors about OPEC reducing output approximately 4 percent with possibility to rise up to 24 percent decline.

After optimistic quote by Mike Fitzpatrick at Fimat, USA saying "may be enough to discourage aggressive near-term selling”, this November crude delivery stands on $60.47 per barrel in electronic trading on the New York Mercantile Exchange - a 71 cents rise.

However, and here are some important forex tips, for the long-term view, apparently before the end of the year, the OPEC would trim their outputs as global inventories rise and economic growth slows,

Already now majority of OPEC states support a voluntary decline in mid-December at an assembly in the Nigerian capital of Abuja after Nigeria and Venezuela willingly began reducing their oil production by a combined 170,000 barrels per day.

Joseph Capurso, an analyst with Commonwealth Bank of Australia in Sydney said "The market's been toying for a while with whether OPEC will or will not cut production but whether or not it happens, the world economy is strong, so that will put a floor under prices -- there isn't a concern that U.S. oil consumption is going to fall into a hole."

Analysts said that the raise in progress of oil prices is a reflection of a muscular global economy more than decline in supply amid robust demand. Come back soon for more forex tips.

More updates;

Heating oil is up 2.63 cents to $1.7203 a gallon

gasoline prices is up 0.88 cent to $1.5130 a gallon.

Natural gas is up 14 cents to $6.567 per 1,000 cubic feet.