http://www.onestepremoved.com/ Shaun Overton interviews Batur Asmazoglu from Myndos Capital. Batur traded €100 million in forex markets for Deutsche Bank and Credit Suisse and has worked for several other banks and funds for over a decade. The interview covers London trading life, how market makers operate in the forex market, algorithms and quants and trading psychology. http://youtu.be/GyFVOFbhFws
Forex Trading Strategies for Beginners:
DailyFX University: http://www.dailyfx.com/forex-education
Buying and selling world currencies is the largest financial market in the world. Known as the forex market, it sees an average daily turnover of about $4 trillion, as reported by the Bank of International Settlements in April 2010.
This video takes a “forex trading for dummies” approach and outlines basic guidelines for traders. Topics include:
• Identifying trend directions
• Long and short buying opportunities
• Market entry an exit tips
• 3 simple fores trading strategies
The forex market sees more trading volume than the NASDAQ and New York Stock Exchange combined. Trading forex is similar in basic principle to trading other instruments like stocks, options, and futures: buy low and sell high.
Beyond that, trading strategies come into play. The possibilities are endless; here are three simple forex trading strategies for beginners
1. News Fade strategy
Forex market movement can be influenced by the economic releases from many countries; forex trading opportunities are generated from the volatile short-term moves caused by these news events. In volatility generated from news events, a trader is not only trading the historical/expected statistical data, but also dealing the market’s reaction to that number. News events that have market-moving potential are tracked on our calendar: http://www.DailyFX.com/calendar
Events rated “”High”” on our calendar hold greater potential for market volatility, which brings opportunities and risks for traders.
In fading, we wait 15-20 minutes after the news release for a reversal to trade. In the aggressive approach, at the open of the 4th candle, enter and place a stop above the previous high/low, on the premise that the market will revert to previous levels. The conservative approach is to enter a trade in the same direction if/when the market trades through the level at which it was trading before the news release.
The high volatility news event of non farm payroll reports released on the first Friday of every month by the Dept of Labor measures the number of jobs added to the economy during the prior month in all areas except seasonal agriculture jobs. Timing is the critical component of the news fade strategy, key is to wait 15 minutes before entering a trade, this will be at the open of the 4th 5-minute candle after the news release. At the open of the 4th candle, trade in the opposite direction of the most recent price action, based upon the anticipation that price will revert to previous levels before the news release. Set profit target at the levels the pair traded prior to the announcement and/or at 1:2 Risk:Reward ratio, and set a stop just outside of the most recent high/low after the news event.
2. Inside Day Breakout strategy
This second simple forex trading strategy follows the trend where the daily candle stays contained within high/low of the previous day candle. Trader buys 1 pip above/below previous day’s high/low, and the strategy becomes more reliable when multiple candles stay within the high/low of previous day’s candle. Keep in mind that this strategy does not setup all that often. A trader must exercise patience and discipline and allow it to set up properly, the more consecutive candles in the pattern, the more effective it will be.
3. 2-Hour Moving Average Convergence Divergence Crossover strategy
This third simple forex trading strategy says to buy when price action is above the 200 day simple moving average and the MACD line crosses above the signal line, and to sell when price action is below the 200 day simple moving average and the MACD line crosses below the signal line. Position should be closed when the MACD line crosses the signal line in the opposite direction of the entry signal.
Remember no strategy is perfect or will work every time. Test trading strategies in a demo account to be sure you are comfortable with them. Get the feel for forex trading first. Start with small entry trades, and step up position size gradually upon validation of signal and trend.
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