The first aspect that you must know is that a perfect system to earn in the difficult FOREX MARKET does not exist, the one that says that LIES.

The best we can do is to create our own system, using different tools such us psychology, money management rules and indicators.

PSYCHOLOGY:

There are different types of traders according to their personality, their risk desire, their management power, their resistance to painful situations, etc.
Some traders may have a lot of charasteristics in common, however most of them are different.
The most important aspect of this topic is that you must figure out what type of personality you have, to determine what style and methodology of work are compatible with you. You must be disciplined, spontaneous and patient.
An excellent idea may be to keep a daily work record. This may help you analyze and identify your successes and mistakes from the past, for a better performance in the future.

MONEY MANAGEMENT RULES:

This is one of the most important aspects you must learn to perfectly manage you account ( nobody will do that for you ), create rules and NEVER break them.
Many traders are anxious to enter the market and forget how much Money they have in their accounts, risking, in various occasions a high percentage of their capital, these people are simple called GAMBLERS.
The idea is to create a plan to control our possible losts, so when it is time to earn, our capital will be substantially increased.
A good formula is to risk no more than 2% of your capital in every open position and that the earning - lost relation should be 3 to 1.

INDICATORS:

BOLLINGER BANDS: this indicador is used to measure market volatility. Basically, they tell us when the market is weak ( the bands contract ) or strong ( the bands expand ).
They consist of three bands, where the middle one is an average of the side bands.

STOCHASTICS: this indicador is an oscillator that measures the oversold or overbought conditions in the market. It possesses a scale of 0 to 100. When the stochastics lines are above 80 there is an overbought condition, if the lines are below the 20 line there is an oversold condition.

MOVING AVERAGE: is an indicador that shows the average value of an instrument during a period of time. The most popular use of this indicador is to compare the relation among different averages.
Example: we can use a MA of 50 and a MA of 14 ( this one will be the the fastest ). When the MA 14 crosses upwards the MA 50, it will generate a buy signal, when it crosses downwards, it will generate a sell signal.

RELATIVE STRENGTH INDEX ( RSI ): this indicador identifies the overbought and oversold condition in the market, similar to the stochastics indicador. It possesses a 0 to 100 scale, when it is below 20, it indicates an oversold condition, and over 80 it indicates an overbought condition. It also has a middle ( 50 ) that is used to confirm the direction of a trend.

PARABOLIC SAR ( stop and reversal ): this indicador helps us determine when a trend is coming to an end. It shows us different points on a graph that indicate a potential change of direction of a trend.

Every person who decides to enter the exciting world of FOREX MARKET must first learn and practice by opening a virtual or demo account for at least 1 year, and then enter 3 competitions at a minimum before investing their money.

95% of the people who trade without previous training lost the total amount of their investment. NEVER FORGET THAT.Meanwhile, it is advisable that you are guided by professional traders.
E-mail us toregarding any doubts you may have.We offer you help on indicators and trading systems.