Understanding Forex Trading - forex trader youtube

Understanding Forex Trading ~ forex trader youtube

Understanding Forex Trading

Having traded for a month on the forex market, i shall attempt to explain some of the basics in forex trading. Or at least my understanding of the whole forex thing. The following 3 charts
all relate to the same currency pair of USDJPY. They look so very different, dont they?


Time frames
Unlike the stock market which generally starts at 9 am and ends at 5 pm, trading in forex is a 24/7 thing. You can trade at any time of the day or deep in the middle of the night. You can watch the market in various time frames of M1, M5, M15, M30, H1, H4 to MN. It basically means there is a chart which updates by a minute, 15 minutes, hourly and up to monthly. I generally look at H1 (hourly chart), H4 (4 hourly chart) and D1 (daily chart).

Candlestick
I believe the reason why they are called candlesticks is probably due to them resembling candles with a wick at the top and bottom. In the above picture, there are 2 such candles.

Green candle - This indicates that the price is going upwards (bullish) with the bottom green as the opening price and the top green as the closing price.

Red candle - This indicates that the price is going downwards (bearish) with the top red as the opening price and the bottom red as the closing price.

Candle wicks - The thin line that protrude from the green and red candles indicates the highest or lowest price it ever went to during that time frame.

Try and see if you can figure out the trend from the above time frame charts.


Spread
Similar to shares trading where you are required to pay a commission every time you place buy or sell a share, it is the same when you trade in forex. But over here it is called a spread and can range from 3 to 12 depending on which currency pair you are trading. Example in the below picture, the spread for NZDUSD is 3 and NZDCHF is 10, meaning you need to earn more than the spread of 3 or 10 pip before its considered your profit.

PIPS
Forex trades up to 4 decimal points and every increase or decrease of 1 point is equivalent to 1 pip. Using the same picture above for illustration, if i were to buy the currency pair of NZDUSD at 0.6371, hoping that the price will go up, it would have to reach a price of at least 0.6375 which is an increase of 4 pips before its considered a profit 1 pip (0.6375 - 0.6371 = 4 pips increase less spread of 3).

Ok, thats about all for the basics, i will be back with more as i learn more.
I am currently updating my trades here, so check it out!

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Morning Star candlestick pattern - best forex trading times gmt

Morning Star candlestick pattern ~ best forex trading times gmt

Morning Star candlestick pattern there are many variations of the Morning Star pattern.

Criteria

1. Usually consists of three candles at the bottom of a downtrend.

2. First candle is a red candle.

3. Second candle is an indecision candle. There can be 1, 2, 3, or even 4 indecision candles.

4. Third candle is a blue candle and should close at least half way up the first red candle.

5. The longer the red and blue candles the more forceful the reversal.

6. The more indecision of the indecision candle the better probability that a reversal will occur.

7. The further the third blue candle closes into the first red candle the stronger the reversal.

Morning Star candlestick pattern

Here are some variations of the morning star pattern:

Morning Star candlestick pattern

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Monthly Savings Expenses Jan (updated) - forex trading yakuza 4

Monthly Savings Expenses Jan (updated) ~ forex trading yakuza 4

Monthly Expenses Jan 2016

Its the 2nd month of my aggressive savings
grand plan! Lets see how i did for this month.

House - $363.80 (26%)

01/01/2016		House		-200		Bills
01/01/2016		House		-10.9		Shampoo
12/01/2016		House		-20		Daiso
15/01/2016		House		-20.4		Ntuc
22/01/2016		House		-60		Ntuc
24/01/2016		House		-20		Guardian
25/01/2016		House		-18		Ntuc
28/01/2016		House		-14.5		Expensive chips

Pretty much every dollar spent on everything and every trip to the supermarket goes into this account. A funny misunderstanding between me and my wife broke out regarding the expensive bag of chips. After paying for it, i casually asked, "Whats so great about this that it cost so much? Is it really that good for baby?" My wife replied that its not for baby! Its just some chips that she bought for us to try out! What! I was all the while thinking that it was some nutritious stuff for Chloe. Arrghh thats me paying without knowing again.....ok where is the bag of expensive chips now?

Baby - $269.35 (19%)

01/01/2016		Baby		-38.00		Chloe see doctor
01/01/2016		Baby		-8.00		Baby wipes
02/01/2016		Baby		-15.00		Dutch lady milk 110mL x 12 x 4packets
16/01/2016		Baby		-24.00		Breastpads 3x8dollars
16/01/2016		Baby		-21.00		Apple melts 3x7 dollars
18/01/2016		Baby		-100.00		Ingredients for baby porridge
22/01/2016		Baby		-15.00		Dutch lady milk 110mL x 12 x 4packets
24/01/2016		Baby		-9.90		Drynights 34pc pack
24/01/2016		Baby		-2.00		Diaper wetwipes
24/01/2016		Baby		-10.20		Lacteol forte for diarrhoea
25/01/2016		Baby		-26.25		Drynights 34pc pack 3x 8.75

I am trying to work out a better way to update this section as it is increasingly difficult to ascertain what items are directly associated with baby costs as she eats the same stuff as us, uses the same stuffs as us. Its complicated. 

Eating Out - $238.17 (17%), Entertainment - $31 (2%)

The number 1 enemy for savings, i can throw out all my money saving plans if i dont work on reducing this enemy.  

Food - $209.45 (15%)

Its amazing how i spend less on food than other stuffs. Its probably due to the low cost of food at my work place. Interestingly, looking at my eating out costs, it can support me for an entire month if i dont eat out. 

Gifts - $94 (7%)

Presents for Claras 1st birthday and Ah Lans 4th birthday. Had a great time at both celebrations.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Monthly Savings Jan 2016

52 Weeks Increasing Money Challenge

15/01/2016		Savings		$    26.50		52 weeks
22/01/2016		Savings		$    26.50		52 weeks
29/01/2016		Savings		$    26.50		52 weeks
01/01/2016		Savings		$    26.50		52weeks
08/01/2016		Savings		$    26.50		52weeks

Ever since i place this in auto transfer mode, i have no worries about the amount i have to put in as it will always point towards my goal of $1378 at the end of the year. 

Balance Transfer

04/01/2016		Savings		1.54		Balance transfer ocbc
08/01/2016		Savings		0.80		Balance transfer ocbc
18/01/2016		Savings		9.54		Balance transfer ocbc
04/01/2016		Savings		8.40		Balance transfer uob
18/01/2016		Savings		2.02		Balance transfer uob
25/01/2016		Savings		0.50		Bank transfer ocbc
25/01/2016		Savings		5.25		Bank transfer uob
04/01/2016		Savings		0.01		Interest received
31/01/2016		Savings		0.02		Interest received

The power of 1 + 1 really works here! A little here and there adds up to $28.08 saved! 

Bills - Bank charge

31/01/2016

Bills

-2.00

Bank charge

Bank charges of $2 charged for the fall below $500 amount deposited. Feb will surely see my deposit balance soar over $500 so this is definitely the last time i am seeing this. 

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