146 Forex guides: the basic ideas, technical analysis, money and risk management, and what someone becoming an IB needs to know.
146 guides
IB commission is the round-turn lots multiplied by the rebate for each product group; a Cent account is counted in pips, so you multiply by the pip value as well. This guide works an example for each group, and covers the 75 USD threshold per payment period, the 25 USD withdrawal fee and how commission is reconciled under CXM Direct's IB agreement.
A Master IB is an IB that runs a network of several other IBs. CXM Direct states there is no limit on IB levels: each level above keeps part of the rebate, and the last level receives the rest. This guide explains how the money flows, works an example of splitting the rebate per lot, and shows that responsibility does not shrink when there are more levels.
A rebate is the share the broker pays an IB based on the volume the client trades. A markup is an amount added to the client's spread that the broker then pays over to the IB. This guide separates the two under CXM Direct's IB agreement: who bears the cost, whether the client gets to know, and what an IB is not allowed to do.
Margin is the money the broker holds so you can open and keep a trade open. This guide explains how to calculate margin, equity, free margin, margin level, margin call and stop out, and why the position size decides how many pips your account can take.
The R:R ratio compares the loss if price hits your stop loss with the gain if price hits your take profit. This guide shows how to calculate R:R, the win rate you need to break even, what trading costs do to it, and how to use R:R together with position size.
The Golden Cross is when the MA50 crosses above the MA200, and the Death Cross is when the MA50 crosses below the MA200. What they mean, their limits, and how to trade the Golden Cross…
Of all the methods of analysis, most swing traders favor the Price Action school of reading price behavior, in which candlestick patterns are…
When you look for trading strategies built on indicators, or on any other tool or method of analysis, most of what you find is…
Identifying the market trend is the first step, and it is there in any trading strategy, in any kind of market, because the trend is…
A roundup of the important bullish and bearish reversal candlestick patterns in forex: Doji, engulfing, Piercing, Harami, Hammer, Morning Star, Evening Star, Shooting Star, with how to confirm them and the rules for trading them…
Volume Spread Analysis (VSA) is a method of analysis many people see as hard to get into. It reads the relationship between volume, the range of the candle and the closing price to judge supply and demand…
The Inside Bar is a candle-inside-a-candle pattern which, together with the Pin Bar and the Fakey, is one of the patterns Price Action traders mention most. What marks it out, its variations and how to trade it…
The wedge is made of two trendlines that both slope up (rising wedge) or both slope down (falling wedge) and gradually converge. A wedge can be a continuation or a reversal pattern. How to spot one and how to trade it…
The Fibonacci sequence and the golden ratio sit behind the Fibonacci tools that are so common in technical analysis. Where the sequence comes from, the ratios that matter and how Fibonacci is used in forex…
The Hammer candlestick pattern is probably one of the candle patterns most traders know, in particular traders who follow the Price Action school, because it is very easy…
The Hanging Man is a bearish reversal candle that appears after a rise in price, with a small body and a long lower wick. What marks it out, the market psychology behind it and how to trade the Hanging Man…
The Pin Bar is one of the important candlestick patterns of the price action school of analysis. What the Pin Bar pattern stands for is the market rejecting a price…
In forex trading, oscillators such as RSI, MACD and Stochastic are indicators every trader has heard of at least once, because they are fairly simple to use…
Just about anyone who trades forex knows the Doji candle, one of the classic candle shapes because it is so easy to spot. But seeing a Doji does not mean you enter a trade straight away…
What to check when you choose a forex broker: the license and the entity that signs your contract, the execution model, spread and commission, deposits and withdrawals, and the signs worth avoiding.
In forex, currencies are always traded in pairs, yet there is one index that does not come in a pair and is still extremely important: a measure of value against 6…
The exchange rate is one of the decisive factors affecting the health of an economy. Alongside factors such as interest rates and inflation, the exchange rate is one of the economic indicators that people watch and analyze.
The term sideways is probably one of the familiar terms you often hear or read when you take part in forex trading. And because it is so familiar…
RSI (Relative Strength Index) is a momentum indicator that moves between 0 and 100, used by many traders to spot overbought and oversold conditions, divergence and Failure Swings. The formula, the setup and how to trade it…
Dollar-cost averaging (DCA) is an investment strategy in which an investor splits a total amount of money across purchases made at regular intervals or according to…
One way of trading that we always want to point you toward, new traders, people who do not yet have much experience in the market, to choose for…
Your trading style comes from your character and the time you have; a trading strategy is the plan that follows from it. This guide separates the two, goes through the 4 common styles, the 5 elements of a strategy, the two schools of analysis, and the signs that a strategy is worth changing.
The ATR (Average True Range) is an indicator that measures how much price moves; it does not tell you whether the trend is up or down. The formula, how to set it up in MT4 and how to use the ATR to place a stop loss and a take profit…
Before you put money into any market, the first thing to look at is the state that market is in. This overview of the Forex market in Vietnam covers the legal position, how many traders and brokers there are, which products get traded most, and the IB networks and Forex websites around it.
If you follow technical analysis you already know RSI, the indicator that measures the momentum of price. The Money Flow Index does the same job but adds volume to the calculation…
ADX (the Average Directional Index) is the indicator that measures the strength of a trend, used together with the +DI and -DI lines to work out the direction. How to read ADX, how to set it up on MT4 and how to trade it…
A pullback, put simply, is the stretch where price temporarily moves against the main trend (up or down) that was set before it, to correct the price…
Leverage is a very familiar idea in corporate finance, where it is about using borrowed money in the running of a business to get the most profit out of it. In financial investing leverage matters just as…
In an earlier guide we went through the term pip; this time we carry on with another basic term in Forex that matters just as much, and that is…
Divergence is when price and an oscillator move in opposite directions, a warning that the trend is weakening. The types of regular and hidden divergence, how to use them and what to watch out for…
The CFD is probably the most familiar arrangement to anyone who trades forex, and yet not everyone understands clearly what it is…
The EMA is probably one of the indicators every trader has seen when they trade forex, whether they use it or not. At bottom the EMA is still a barrier, but a barrier…
What trading forex means, how much capital it takes, whether it is legal in Vietnam and how a beginner should start. From the idea itself and how to place an order through to money management and the risks you need to know.
We all know that to take part in the forex market the first thing to do is open a trading account at some forex broker. Few people, though,…
The economic calendar tells you when important economic figures and events are released. How to read the columns on an economic calendar, the releases with the strongest effect, and how to use the calendar to manage risk…
In this article we introduce you to a piece of financial market knowledge that is both familiar and unfamiliar: the bond. Almost everyone has heard of bonds…
Fibonacci is one of the technical analysis tools traders know best in the financial markets in general and in forex in particular, one that any trader…
Why do most individual traders lose money and blow up their accounts? The common causes: unrealistic expectations, no stop loss, stacking up trades, oversized positions, greed, a lack of knowledge…
Many people who take up forex trading think the only way to make money from this market is buying and selling currency pairs. That is not how it is…
Chaikin Money Flow (CMF) is a volume indicator developed by Marc Chaikin that measures buying and selling pressure from price and volume. The formula, how to set it up on MT4 and how to trade with CMF…
A trading journal lets a trader look back at every position, spot the mistakes that keep repeating, and measure how well a method works in numbers. What to record, how to review the journal and the figures worth calculating…
An IB (introducing broker) introduces clients to a broker and is paid commission on the trading volume of those clients. This guide sets out where that commission comes from, how an IB works, what a broker usually provides, and the legal limits, the conflict of interest and the responsibilities that come with the job.
Carrying on our series of articles about Fibonacci, in this article we want to introduce you to a form of Fibonacci that a great many traders are fond of: the Fibonacci…
The Fed is probably the most powerful financial institution in the world. It is the body that issues the US dollar, and the monetary policy it sets affects not only the United States…
Forex brokers usually have several types of account: demo, Cent, Standard, ECN/Raw, Pro. What differs is the unit the money is counted in, the cost of the spread, the commission, and the route a new trader should take when choosing an account…
In forex trading, being at home with every order type matters, and it is basic knowledge you ought to have. Besides the two very common order types that…
The pivot point is a familiar tool for many traders. How to trade the price zones of the pivot point: reading the session bias, and entering around R1 and S1…
Should you invest in forex or in stocks? A comparison of the two markets on the nature of the product, the legal position in Vietnam, liquidity, costs, the information to follow, trading hours, leverage and risk…
The forex market runs around the clock, but it is not always a good moment to enter a trade. A professional trader, instead of trading all day, picks only…
The triple top and the triple bottom are reversal price patterns, variants of the double top and double bottom. How to spot a textbook pattern, how to enter, where to put the stop loss…
In forex trading, alongside analysis skills, money management is a skill no trader can do without. Good money management skills will…
A lot is the unit that measures position size in forex trading. In everyday life we have units such as the meter, the kilogram and the liter; each kind of product has a unit of its own…
The gold price is driven by a great many forces: crises, inflation, the USD, interest rates, central bank policy, jewelry demand, supply and the money flowing through gold ETFs…
Scalping is a trading method a great many traders like, especially the ones who prefer a “strike fast, finish clean” style; the time from…
A Buy Limit is a pending order to buy at a price below the current one, usually used to buy at a support area in an uptrend. How to place a Buy Limit in MT4, with an example and the risks…
The oil price feeds into inflation, into economic growth and into a number of currencies. The main factors that move the world oil price: supply and demand, OPEC+, inventories, geopolitics, natural disasters, the USD…
How much is 1 lot worth in USD? How to convert the value of 1 lot into USD, the margin you need at each leverage, how to work out pip value for every type of currency pair, and an example of choosing a position size for a 500 USD account…
A Buy Stop is a pending order to buy at a price above the current one, a Sell Stop a pending order to sell at a price below the current one, and both are usually used for breakout trading. How to place them, with examples…
The common money management mistakes that leave traders heavily down: using too much leverage, risking too much on each trade, setting no stop loss, trading too much, putting all your capital into one trade…
Most of us met 2 ways of analyzing the market when we started trading forex: fundamental analysis and technical analysis. Each of them comes with a great many tools…
To carry on the series of articles about indicators, this time the article introduces one of the indicators that belong to the group used to identify the trend…
Volume (trading volume) helps a trader judge how busy the market is and how strong a price move is. How volume in forex differs from volume in stocks, what tick volume is, and how to use volume to confirm a trend or a breakout…
If you set out to find the origin of technical analysis in forex trading, the answer you end up with is Dow theory. More than 100 years old, it is no accident…
The Kijun-sen (the Kijun Line, the base line) is an important part of the Ichimoku indicator, and it shows the balance point of price over 26 sessions. The formula and how to use the Kijun-sen…
Risk management helps you cap your losses and last in the market over the long run. The rules that matter: always set a stop loss, work out position size from 1-2% risk, watch correlation, cap your losses for the day…
Fundamental analysis is one of the 2 major schools of analysis in investing and financial trading. Next to technical analysis it is the less popular of the two…
The Chikou Span (the lagging span) is a part of the Ichimoku indicator, made by shifting the closing price 26 sessions back, and it is mostly used to confirm the trend. How to read it and how to trade it…
Psychology is one of the things that decide your trading results. The emotions and biases you meet most often - fear, greed, the urge to win it back - and concrete ways to keep your psychology under control while trading…
Every financial market has an instrument of its own. Mention the stock market, for instance, and shares come to mind straight away; mention the foreign exchange market and…
The Tenkan-sen (the conversion line) is one of the 5 parts of the Ichimoku indicator, and it shows the short-term balance point of price over 9 sessions. The formula, the setup and how to use it…
Multiple timeframe analysis helps you see the big picture before you look for an entry point. How to pick your set of three timeframes, Alexander Elder's triple screen system, and what to watch out for when you apply it…
A bull market and a bear market are two concepts every investor and trader on the financial markets knows well, and both name a kind of market trend…
Working out support and resistance levels matters a great deal to a trader, but it is not easy, and no level lasts forever. Why support and resistance break, and how to spot it…
The weekly, monthly and yearly open prices are reference levels that a good many traders watch. What those open prices mean, how to draw them, how to combine them with support and resistance, and the limits you need to know…
Bullish Harami is one of the common bullish reversal patterns in financial markets such as stocks, foreign exchange and cryptocurrency; whatever the market, as long as it is driven by…
Fibonacci is a classic tool in technical analysis, used by traders at every level to find potential support and resistance zones, entry points and take profit targets…
Gold moves violently and is driven by many forces: the USD, interest rates, geopolitics, central bank demand. The important points to consider before you trade gold…
When hedging comes up in forex trading, many people think straight away of opening a position in the opposite direction to the one they already hold on…
If you are a devotee of Bollinger Bands, this article will help you put the ways of using this indicator in order. This article will help you…
To get good at technical analysis you need a firm grip on the foundations: the market trend, support and resistance, chart patterns and technical indicators, and then disciplined practice…
A timeframe is the time span of each candle on the chart. This article explains the timeframes from M1 to MN, how to choose one to suit your trading style, and how to read several timeframes together.
The Evening Star is a pattern of three candles that signals a possible downward reversal after an uptrend. What marks it out, how to enter, where to put the stop loss, and what to keep in mind when you trade it…
Technical analysis and fundamental analysis are the two most common schools. Each method has strengths and weaknesses of its own; understanding them clearly lets you combine the two for clearer context and a clearer entry point…
TradingView is a charting platform and a social network for traders. This article walks you through the account plans, the interface, the drawing tools, the indicators, price alerts, Paper Trading and a handful of tips for using TradingView.
The Bullish Engulfing pattern and the Bearish Engulfing pattern are two patterns that a great many traders know, because this pattern can…
Blowing up an account haunts a great many traders. What blowing up an account means, how it differs from a margin call and a stop out, the common causes, and how to limit your losses when you trade forex…
Once you are a trader the list of things you fear is probably a long one, and slippage is on it. Slippage, being filled at a different price than you asked for, is a nagging problem…
The bearish engulfing pattern, or Bearish Engulfing, together with the bullish engulfing pattern, Bullish Engulfing, makes a pair that traders are very fond of when…
Trading the news is attractive because the price can run several tens of pips in a few minutes, but it comes with a wider spread, slippage and requotes. The risks of trading the news and how to limit them…
A stop loss, like spread, pip, lot or commission, is one of those basic but very important terms in forex trading. A stop loss is treated as one of the risk management tools you cannot do without, and yet…
If you are a trader, you need to be able to identify the trend to some degree, because of how much it matters. As a trend trader, the main idea behind the strategy…
To become a successful forex trader, besides finding a good entry you also need to know when to cut a loss and when to take profit, which is how you hold on to…
Bullish and bearish are two very basic but very important concepts on financial markets such as stocks, foreign exchange and cryptocurrencies. Both…
Trading gold has never been an easy subject, because this metal does not move the way the other commodities or the other currency pairs on the market do…
A pip is short for percentage in point, the unit that measures the price movement of a financial instrument such as a currency pair, a metal, an index or a share…
Among the chart types, the candlestick chart is the one traders pick most often for technical analysis today. Compared with the bar chart, the candlestick chart…
Where should someone new to the foreign exchange market look for forex news? Financial news sites, the official sources of the central banks, television channels, the economic calendar and the important releases to follow…
Trading cost is one of the things a trader has to weigh carefully when choosing a broker and a trading account. On every trade that is opened and closed…
The double top and the double bottom are basic price patterns that turn up on the chart very often, but not every one of them is worth trading. What they are made of, how they are confirmed and how to enter…
There are a great many risks in the foreign exchange market, in forex investing. Put simply, if there were not, everybody would already be a billionaire, so read carefully…
Elliott wave theory grew out of the view that “the way crowd psychology moves is what forms the patterns and the trends of prices in the market”…
Next to reading market psychology through candlestick patterns, getting to the bottom of what a technical indicator is and how it works looks a great deal harder…
Do not believe the advertisements offering a steady 20–30% a month. Practical lessons for people new to investing in forex: choosing a broker, building a trading system, learning from the right person, keeping a journal and being patient…
A stop loss and a take profit are 2 basic ideas that every trader who trades forex has to know. They are the 2 order types used to fix the profit or the loss of a…
Whichever system you use, be it Price Action, Ichimoku or a few indicators put together into a trading system of your own, one of the key problems is…
In the forex market, traders often work under a lot of pressure and have to face a lot of difficulties on their own. That is why forex forums came about, as a place to…
A position, and Long and Short, are basic terms an investor or a trader needs a firm grip on when taking part in any financial market. Although…
There are a great many books out there for sharpening your trading skills, from chart patterns and crowd psychology through to building a trading system…
When we trade, a market that has a trend can let us make more profit, but the market does not always have a trend to…
In financial trading in general, and in forex trading in particular, marking out the potential high and low areas so that you can plan a trade is an important…
Thick advertising that treats Forex trading as a money-printing machine, or as making money with a single click of the mouse, has drawn a great many people to forex and left it badly misunderstood…
In trading, if you do not have a grip on the market trend, the chance of losing money is a great deal higher. Understanding it and applying it, though, is…
Support and resistance is probably one of the most basic pieces of knowledge any trader needs when they start trading forex. The thing worth saying is that most…
Binary options (BO) are advertised as simple, with a result in 30 seconds. This article explains how binary options work, why the people who trade them tend to lose over the long run, and why several countries have banned the sale of binary options to retail investors.
How much money you need to trade forex is one of the first questions when you step into a market full of challenges but no less appealing and full of opportunity.…
If you have ever been a trader, the chances are you have blown up an account. There can be many reasons for it, but the main one is usually that you do not know how to manage your money…
When trading forex, traders usually pay attention mostly to the major currency pairs, shares, metals (gold or silver), energy and cryptocurrencies, and take little notice of another product…
Foreign exchange is a familiar enough term for anyone who works in economics or finance, but a new investor can find the idea vague. Here is the most basic picture of it…
Trader is a term for the people who buy and sell on the financial markets and take a profit from those trades. Are you trading on the foreign exchange market? Then…
Bollinger Bands is an indicator made of 3 bands built on a simple moving average and the standard deviation, which shows how much price is moving. This article covers the formula, how to set it up on MT4 and the common ways of trading it.
MACD is a momentum indicator built on two EMA lines. This article explains its parts, the MACD formula, the signal line, the histogram and ways of trading MACD with the trend, divergence and candlestick patterns.
Why do so many traders in the forex market lose as much as they do? Most individual traders end up losing money in the market…
Forex scams will be around for as long as the Forex market is. As the schemes grow more sophisticated, the scammers are always somewhere near you, trying to get the money out of your pocket, and…
Before you study technical analysis in depth, you need to be clear about the difference between technical analysis and fundamental analysis, the 2 basic schools in financial trading…
If you already understand Dow theory, the trendline, support and resistance lines and a few reversal candlestick patterns, this is also the moment when you can take one more step…
A Marubozu is a long-bodied candle with almost no wick, which shows one side in control during the session. This article covers what it looks like, the variants of it and how to trade a Marubozu, with notes on where the stop loss goes.
An introduction to reading Japanese candlesticks and the basic candlestick patterns of price action: Bullish Engulfing, Bearish Engulfing, Hammer, Morning Star, Dark Cloud Cover and Shooting Star, with notes on trading them.
If you have decided, or are still weighing up, becoming a professional forex trader, the first thing you will probably ask yourself is “How much money do I need to…
Is trading Forex through a broker abroad legal in Vietnam? The legal documents involved, the risk of being fined, and why an investor is not protected in a dispute with the broker.
A gap is an empty space in price that shows up on financial charts. If you trade stocks you will see plenty of gaps; in forex this usually happens only when the market opens at the start of the week, or in a few special cases.
When you speak of the great contributions to technical analysis in the forex market in particular, and in financial markets in general, you cannot leave out…
When you trade forex, one of the most important things you have to do is identify the trend. When you get it right, you trade against the trend less often…
Do you want to know the leading forex trading tips? This article gives you 20 forex trading tips that are worth looking at and putting to…
Breakout is a familiar and fairly important idea for traders in financial markets such as stocks, foreign exchange and cryptocurrency. A breakout is…
A guide to reading a Japanese candlestick chart in 3 steps for beginners: read the trend with Dow theory, a trendline, the EMA and a price channel; weigh up how strong the trend is; then find the entry, the stop loss and the take profit…
The fakey is a price action pattern that forms out of a false break from an inside bar. This article explains the structure of the fakey, how to read the bullish and bearish signals, how to enter, where to place the stop loss, and what to watch out for.
A price channel is a basic technical analysis tool widely used in forex, basic but not simple at all. A price channel is…
Trading forex successfully calls for patience, the right way of thinking, quick adaptation to changes in the market and a whole range of other qualities. As in…
ForexFactory is a site every forex trader knows, and it is best known for its economic calendar. This article shows you how to set the time zone, filter for the news that matters, read the Actual, Forecast and Previous figures and use the forum.
A guide to using MT4 on an Android phone and on an iPhone: install the app, log in to the right server, add pairs, read the chart, place an order with a stop loss and a take profit, and close it.
MT4 (MetaTrader 4) is the trading platform most retail forex brokers run. This article explains what MT4 is, how to download it, how to place an order, set a stop loss and a take profit, and the keyboard shortcuts worth knowing.
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