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Making money in the forex market is not an easy task by any means. However, given a bit of education and knowledge of the market, it can become quite easy to profit in the forex market. Most traders end up learning that it’s the simply systems that create the wealth. Over analyzing and over thinking can sometimes affect your trading methods and strategy.

The trading method I am going to explain here is probably going to upset you a little and will most likely go against everything you have ever been taught about forex. However, you have to remember that this is my personal strategy and it's how I make money. It may not work for the next person, but it has shown me a way to make a substantial amount of money in the forex market.

Through your forex training you might have heard traders tell you to always trade with a stop-loss. If you don’t know what a stop-loss is, it’s simply an order telling the broker when you would like to cut your losses. I don’t trade with a stop-loss period. How is this so? How can I make money without using a stop-loss? I tend to believe that the big players in the forex market like to drive this market in certain directions to take out other traders stop-loss positions. In order for the banks to make money, they have to take other traders monies, therefore taking out stop-loss orders in the market. I don’t allow the banks to do this to me personally.

Secondly, on each trade look to make only a few pips. In some cases this is known as scalping the market. On each trade I am only looking to get 3 to maybe 6 pips or as I like to say, get in and get out.

Your next question might be, “how do I know when to enter and exit the market?” I use a set of indicators combine with a detailed analysis of trend lines and channels. The indicators tell me when to get in and get out and the trend lines give me the overall direction of the market for the next month to few years. Having a good idea of where the market is heading over the course of a few years gives me a good idea whether I am in buy mode or sell mode on a daily basis.

How is it possible to survive without using a stop-loss? Very simply put, do not risk large amounts on each trade. I only risk one tenth of my account balance per trade. For example, I only trade $1 lots on a $10,000 account. What this enables me to do is use no stop-loss. If the market moves 200 points no problem. By the time the market moves 200 points, I’ve already made 100 other trades in profit all for 3 to 6 pips each. If the market continues to get away from me, I continue trading each day gaining which eventually compensates for the few losers and eventually overrides them. When the market comes back in my favor, those losing trades are making profit every step of the way.

SigmaForex Practice Competition
Sigma Forex Ultimate Forex Monthly Champion

Interested clients who wish to take part in this competition shall send a request via email atSigma devotes serious effort to serve the emerging retail segment of the Forex community. Its commitment to providing an excellent customer service, innovative currency trading technology, and dealing practices, establishes Sigma as a notable force that traders look forward to for an advanced Forex charting, Forex news, and fund safety.

Customers funds deposited with Sigma, are held and maintained separately in separated trading accounts at our partner banks. Sigma also provides its customers a variety of account plans, and services to choose from when creating or adjusting a profile.

The professionals at Sigma are dedicated to providing the guidance you need to accomplish your investment objectives.

This e-mail address is being protected from spam bots, you need JavaScript enabled to view it Attached with the following information:

    * Full name
    * Phone number
    * Current valid passport or government issued photo ID

It begins at the beginning of each month.

After recieving your request we will provide you with further details and with your Practice account login information which will be used in the trading contest.

Also you have to download Sigma Forex Platform to login with the account number and password after receiving them.

 

 

The Profit Calculations, on the Short-sell trade scenario below, may seem somewhat complicated if you've never been in the FOREX market before, but this process is continually calculated through your broker trade station (software). I show you this process below so you can SEE how a PROFIT might occur.

The current bid/ask price for USD/JPY is 107.50/107.54, meaning you can buy $1 US for 107.54 YEN, or sell $1 US for 107.50 YEN.

Suppose you think that the US Dollar (USD) is overvalued against the YEN (JPY). To execute this strategy, you would sell Dollars (simultaneously buying YEN), and then wait for the exchange rate to rise.

Your trade would be the following: you sell 1 lot USD (US $100,000) and you buy 1 lot JPY (10,754.000 YEN). (Remember, at 0.25 % margin, your initial margin deposit for this trade would be $ 250.)

As you expected, USD/JPY falls to 106.50/106.54, meaning you can now buy $1 US for $106.54 Japanese YEN or sell $1 US for 106.50.

Since you're short dollars (and are long YEN), you must now buy dollars and sell back the YEN to realize any profit.

You buy US $100,000 at the current USD/JPY rate of 106.54, and receive 10,654,000 YEN. Since you originally bought (paid for) 10,754,000 YEN, your profit is 100,000 YEN.

To calculate your P&L in terms of US dollars, divide 100,000 by the current USD/JPY rate of 106.54

Total profit = US $938.61

Sigma devotes serious effort to serve the emerging retail segment of the Forex community. Its commitment to providing an excellent customer service, innovative currency trading technology, and dealing practices, establishes Sigma as a notable force that traders look forward to for an advanced Forex charting, Forex news, and fund safety.

Customers funds deposited with Sigma, are held and maintained separately in separated trading accounts at our partner banks. Sigma also provides its customers a variety of account plans, and services to choose from when creating or adjusting a profile.

The professionals at Sigma are dedicated to providing the guidance you need to accomplish your investment objectives.

Swing trading is one of the best ways to make money in FX trading, it's also a lot easier psychologically than

trend following. It's therefore a great way to trade for novice traders. Over the last few weeks we have looked at some live examples: Banked 4 profits scratched one trade at break even and have one open. Let's look at it and another potential opportunity. First why is swing trading an easy way to trade? When we say is easy, we mean psychologically. You get in quick with low pre defined risk and you're normally out in 2 - 5 days with a good profit. This is much easier than long term trend following, in that you do not have to wait for months and see dips eat into your open profit. Long term trend following is highly profitable but requires a lot more discipline. We personally mix the two ways of trading to gain some diversification of style and smooth the equity curve.

Swing trading basics. we normally look for important chart support and resistance and trade contrary to it. We wait for prices to test these areas and watch for stochastic momentum to fall against resistance or rise against support. Then we know the level has held and trade off it. We also use RSI and Bollinger bands to define targets and that's it. Nice and simple, but can be very profitable you can read more about this method in our other articles. British Pound We are short at recent nearby highs and would look for a pop to the downside to Fridays low or near the middle of the Bollinger band. Stochastic is weak at present and odds favor a bit more to the downside. With swing trading you don't want to hang around too long, get out on specific target and that's very close now.

Another opportunity Let's look at another potential opportunity that's could be shaping up. The euro is trading near its highs and the spike high on the chart is resistance. Stochastic momentum is waning and a cross with bearish divergence will put the odds in favor of the bears. The important point is to wait for confirmation of the crossover - the target is then Fridays low just above the middle of the center of the Bollinger band. Finally the tools used swing trades are simple and easy to use, but that doesn't mean they can't make profits as we have shown. Importantly, for novice traders the discipline needed to trade this way is a lot easier. If you practice a bit and learn to spot the set ups you will soon be able to spot some great low risk high reward trades.

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Market Order
A market order is an order to buy or sell at the current market price. For example, EUR/USD is currently trading at 1.2045. If you wanted to buy at this exact price, you would click buy and your trading platform would instantly execute a buy order at that exact price.

A limit order is an order placed to buy or sell at a certain price. The order essentially contains two variables, price and duration. For example, EUR/USD is currently trading at 1.2045. You want to go long if the price reaches 1.2065. You can either sit in front of your computer and wait for it to hit 1.2065 (at which point you would click a buy market order), or you can set a buy limit order at 1.2065 (then you can walk away from your computer). If the price goes up to 1.2065, your trading platform will automatically execute a buy order at that exact price.

Stop-Loss Order
A stop-loss order is a limit order linked to an open trade for the purpose of preventing additional losses if the price goes against you. A stop-loss order remains in effect until the position is liquidated or you cancel the stop-loss order. Stop-losses are extremely useful if you don’t want to sit in front of your computer all day worried that you will lose all your money.


Other Order Types
GTC (Good ‘til canceled)
A GTC order remains active in the Forex market until you decide to cancel it. Your broker will not cancel the order at any time. Therefore it is your responsibility to remember that you have the order scheduled.

GFD ( Good for the day)
A GFD order remains active in the Forex market until the end of the trading day. Because the foreign exchange is a 24-hour market, this usually means 5:00 p.m. EST since that is when the U.S. markets close, but you need to double check with your broker to determine the exact time of the end of the trading day.

OCO (Order cancels other)
An OCO order is a mixture of two limit and/or stop-loss orders. Two orders with price and duration variables are place above and below the current price. When one of the orders is executed the other order is canceled.

Example: The price of EUR/USD is 1.2020. You want to either buy at 1.2075 or sell at 1.1965. If the OCO order reaches the 1.2075, you will buy and the 1.1965 sell order will be automatically canceled.

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