Best Forex Plan Ebook

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Best Forex Plan

Right now there is not another financial market in the world more mo re ac acti tive ve than than Fore Forex. x. On aver averag age e it trade trades s mo more re than than $1.5 $1.5 tril trilli lion on US doll dollar ars s per per day. day. Trad Trader ers s on the the Fore Forex x market are afforded the opportunity to trade on a market that’s open 24 hours a day and to leverage up to 200 times your money. Each day, inexperienced and veteran stock traders come to the Forex market to capitalize on its many opportunities. In Best Forex Plan you’ll discover how you can trade Forex to supp supple leme ment nt your your inco income me or to turn turn it into into full full-t -tim ime e career. The The trad tradin ing g stra strate tegi gies es in this this ma manu nual al will will teac teach h how how to create your own trading strategy and begin using Forex to your benefit. Enjoy the journey.















Best Forex Plan

i.Welcome

2

ii.Table Of Contents

3

I. A Little About The Forex Market

4

II. How To Trade Forex Successfully

6

II.1 – Day Trading Vs Swing Trading

7

II.2 – Choose Your Time Zone

8

II.3 – Choosing Your Currency Pair

9

III. Types Of Orders

10

IV. Indicators You Need To Use

12

IV.1 – MACD

12

IV.2 – Moving Average

19

V. Day Trading System

22

V.1 – Trading Examples

24

VI. Swing Trading System

30

VI.1 – Trading Examples

31

VII. VII. How How To Avoi Avoid d Exce Excess ssiv ive e Risk Risks s And And To Prot Protec ectt 34 Yourself VII.1 – Money Management

34

VII.2 – Brokers

35

VII.3 – Having A Trading Diary

36

VII.4 – Have A Solid System

39

VIII. Economic Indicators

41















Best Forex Plan

VII. Disclaimer

47

VIII. Copyrights

48

A Little About The Forex Market

No ot other her trad tradin ing g ma mark rket et affo affords rds you you the oppo opport rtuni unity ty to make money like the Forex market. There are several feature of Forex that make it superior to other markets, such as:

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Leverage – There are great leverage possibilities with Forex as you can trade up to 200 times the available funds in your account. 24 hours market – From Monday through Friday the Forex Forex market market is open open all all day day every every to give give you you the the opportunity to make trades. Worldwide Worldwide market – Forex allows you to trade from any place in the world. All you need is an Internet connection.















Best Forex Plan

cases, it’s available free of charge. Professional trading plat platfo form rms s and and demo demo ac acco coun unts ts are are of offe fere red d free free by many brokers. Demo accounts are especially helpful because they allow you to learn about what it’s like to trade on Forex without risking any of your money. •

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can n ma mak ke Profit in Bull and Bear Markets – You ca money whether the market is trending up or down. Cost – There are no commission charges from brokers on the the Fore Forex x ma marke rket. t. Your Your broke brokerr only only charg charges es you you the spread, which is the difference between the bid and the ask.

Many Many newc newco ome mers rs to Forex orex find find all these hese thin thing gs to be adva advant ntag ageo eous us as they they get get star starte ted d as a trad trader er.. Many Many of them have found success trading in their free time or as a new career.















Best Forex Plan

How To Trade Forex Successfully

In order to trade Forex successfully, you need to:

1.

Decide whether you’ll be a day trader or swing trader.

2. Decide which which time zone zone you need to to trade in. 3.

Decide which currency pairs you’ll trade.

















Best Forex Plan

1.

Day Trading Vs. Swing Trading

The difference between day trading and swing trading is pretty simple. A day trader is a trader who trades throughout the day, while a swing trader is a trader who only commits a short period of time per day to trading on Forex. As you mi migh ghtt expe expect ct,, day trad tradin ing g requ requir ires es mo more re of a commitment than swing trading. Day traders need to be at their computers for three to four hours a day so they can seize on opportunities to make money. On the other hand swing traders prefer to use charts charts which they check on once per day and make their trading decisions based off of that. Good swing traders can earn a decent income.

















Best Forex Plan

http://www.timezoneconverter.com/cgi-bin/tzc.tzc and just convert to the time zone you’re in. If you’re interested in swing trading, you might want to try the 4 hours hours chart chart or the daily daily chart. With those charts, charts, all you have to do is review your charts to determine if there any possibilities for you to make trades.

2. Decide which which time zone you you need to trade in in After you’ve determined whether you’ll be a trader or a swing trader the next thing you need to do is to determine the time zone you want to trade in.

The best times to trade Forex are:

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8 GMT – 11:30 GMT

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13 GMT – 17 GMT

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1 GMT – 6 GMT (For Japanese Yen pairs)

















Best Forex Plan

1.

Decide which currency pairs you’ll trade

Every currency pair has strengths and weaknesses. Some traders prefer the euro (EUR) and the US dollar (USD) pair. Others like the British pound (GBP) and the USD pair. Still others choose the USD and the Japanese Yen (JPY) pair. There are many pairs available so you will have to decide on which pairs you will do most of your business. It’s important to remember that each currency has its own characterist characteristics ics and when it’s paired with another another currency thei theirr rela relati tion onsh ship ip ca can n seem seem unpr unpred edic icta tabl ble. e. You’ You’ll ll lear learn n qui quickl ckly that that syst system ems s you you dev develop elop fo forr one pair pair won’ won’tt necessarily work for another pair.

















Best Forex Plan

Types Of Orders There are several different types of orders to choose from in the Forex Market. You should choose your order type based on your trading habits and the system that you plan on trading in. Here are the four most important types of orders:

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Market Order – Is an order to buy or sell at the current current market market price price. You ca can n perf perfor orm m a ma mark rket et order whether you are buying or selling a currency pair. Market orders should be used with care because in fast-moving markets it’s important to remember that in a fast-paced market it is common for slippage to occu oc curr duri during ng a Slip Slippa page ge is the the am amou ount nt the the ma mark rket et moves from the time an order is made and the actual

















Best Forex Plan

•

•

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Limit Limit Order Order – It’s an order to buy or sell at a certain limit price. Limit orders are preferred when you wish to buy a currency below the market price or sell a currency above the market price. You set the price at which you would like to make the order and it’s executed when the currency hits that price, whether the price is tren rending upward or downward. While there is no slippage with limit orders, there’s also no guarantee that your order will be filled as soon it’s made.

Stop Order – A stop order is an order to buy above the market or to sell below the market. market . It is most frequently used when a trader is trying to limit losses that were unexpected. It is also used when a trader is trying to buy a currency at a price lower than the curr curren entt ma mark rket et pric price. e. A stop stop orde orderr ca can n be used used to either either cut your your losses losses or to increase increase your your gains. gains. It is good type of order to guard against predictability. One Cancels the Other (OCO) – This order is used when you are placing a limit order and a stoploss order at the same time. The One Cancels the Othe Otherr order rder is very very help helpfu full in tim imes es of a vola volati tile le market. It’s fairly simple. When you place one type of order, say, a Stop Order at the same time as sway, a Limi Limitt Orde Order, r, one orde orderr is ca canc ncel elle led d as so soon on as the the other one is executed. This is a good method to help



















Best Forex Plan

Indicators You Need To Use

There are two types of indicators you can use to help your tradin trading, g, MACD MACD and Moving Moving Averag Average. e. First, First, let’s let’s talk talk about about the MACD. MACD:

The MACD can tell you not only what the current trend is but whether or not it is strong.



















Best Forex Plan

•

•

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The area where the chart is above the zero line is when the MACD is trending upwards. When MACD is givi giving ng this this read readin ing g fo forr a curr curren ency cy pair pair it’s it’s a good good indicator of a strong buying period. Conversely, when the chart is below the zero line, as it is in the firs firstt part part of the the grap graph h abo above, ve, this this is an indicator of a strong selling period. The bigger the MACD-Histogram bars, the stronger the trend. When the MACD-Histogram bars are rising, this mean me ans s the the tren trend d is gain gainin ing g stre strengt ngth. h. If the MACD MACD-Histogram bars are decreasing, this means the trend is losing strength.

Let’s look at some examples:



















Best Forex Plan

that means a currency pair is trending downward and is being sold.

Example #2:

The chart above is a good depiction of how to interpret the



















Best Forex Plan

Example number three is an example of how a trend can gain gain and lose momentum momentum above above the zero line. At point point A, the histogram ram bars are getting larger, indi ndicating an uptrend. Once they reach their peak they begin a descent as the histogram histogram bars get smaller, smaller, indicating the uptrend is coming to a close. As you can see, the MACD is very helpful in making tends easy to follow and understand, making them easier for you to make a good decision. And the key to Forex trading is making good decisions.

Another key feature of MACD is its ability to compare the



















Best Forex Plan

The MACD chart shows you that at points A, B and C, the EUR/US EUR/USD D currenc currency y pair pair was hitting hitting new lows, as was the histogram histogram for MACD. MACD. This is a clear indicator indicator that the trend is a strong one and you should react accordingly.





















Best Forex Plan





















Best Forex Plan





















Best Forex Plan

•

Alterna Alternatel tely, y, a Bearish Bearish divergen divergence ce oc occu curs rs when when a currency pair price reaches a new high but the MACD does does not. not. This This is an indi indica cato torr the the upwa upward rd tren trend d is losing strength and there’s a good possibility for it to become a downward trend.

Now let’s talk about the Moving Average indicator.

Moving Average: The The Mo Movi ving ng Aver Averag age e is exac exactl tly y what what it sa says ys it is; is; it’s it’s the the





















Best Forex Plan

The chart above shows when EUE/USD price was having an uptrend, a downtrend and no trend at all. In addition to depicting price trends the Moving Average is also also extr extrem emel ely y im impo port rtan antt to iden identi tify fy what what are are know known n as resistance resistance and support points. The Moving Moving Average can act as a strong strong support support (when (when the price is above above the current current line), or a strong resistance (when the price is below the current line).





















Best Forex Plan

the Moving Moving Average Average is nearly nearly horizonta horizontal, l, that that a sign sign that there is no significant trend at all. •

Spot resistance and support areas - When you’re debating to make a stop loss order it’s a good idea to try to find any resistance or supports areas, regardless of whet whethe herr you’ you’re re in a long long trad trade e or tryi trying ng to sell sell short. Resistance areas can serve as buy points in the case ca se of an uptr uptre end or sel sell poi points nts in the ca case se of a downtrend.

A final reminder. You can use both the MACD and Moving he da de























Best Forex Plan

Day Trading System

Many day traders use five minute MACD charts (like the one below) or a Moving Average 20. Each histogram bar represents a five minute increment. So, in an MACD for an entire day there will be 288 bars or 12 bars for every hour





















Best Forex Plan

Here Here are are so some me rule rules s that that ma many ny day day succ succes essf sful ul trad trader ers s follow:

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When the MACD is rising and above the Moving Average 20 while it is rising, this is a strong indicator





















Best Forex Plan

Trading Examples:

Example #1:





















Best Forex Plan





















Best Forex Plan























Best Forex Plan

Example #2:





















Best Forex Plan





















Best Forex Plan





















Best Forex Plan





















Best Forex Plan





















































































































































































































Best Forex Plan Ebook

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