Posts Tagged ‘forex trader’

One Million in Two Weeks with InstaForex!

Tuesday, October 16th, 2012

InstaForex always provides you with the latest updates on international market events as well as company’s news. Today we would like to tell you about an exceptional situation. Despite its originality, it demonstrates the unique opportunities you can get on exchange market. Recently, one of our clients Akhmad Arief made the daydream of millions of traders real. After two weeks of active trading, he managed to increase his start-up capital up to $1,000,000!

This story began when Akhmad opened his $1,000 trading account with InstaForex in the beginning of July. During two weeks he was trading such currency pairs as GBP/USD and EUR/USD. Nobody expected that he could become a millionaire by the middle of the month using risk strategy!

«We have never seen such trading before and will hardly see soon. Even in conversion to the working days the yield was 100% per day during 10 days in a row. The profit volume is astonishing as well as the length of such win-win and risk strategy as the client used all the money on his account for the next deal. But every time lady luck was on his side,”- Aleksey Badjyanov says, representative of the Dealing Department.

Chart

The chart shows the balance of #2065757 live trading account. Within the first two weeks of July, the account holder earned over one million US dollars with the initial deposit slightly more than one thousand US dollars. Eventually, the account balance was running $1162092.42. The second half of July appeared to be far less successful for the customer: he lost all his profit.

Having earned $1,000,000, Akhmad decided not to stop. However, Forex market is known to be very unsteady due to frequent oscillations and change of trend directions. Successful deals were followed by deals opened against the trend direction which led to profit loss.

Of course, foregone million disappointed the trader. However, Akhmad is not in despair and is already planning to win again. For him, as for many other traders, this situation was indicative of endless possibilities on exchange market which proved that one can make up a fortune out of modest capital! Nevertheless, it is important to benefit from the achieved results and also not to be affected by the astounding success.

2065757Interview with Mr. Ahmad Ariff:

IFX: How long have you been working on Forex?
AA: About 5 years, starting from 2007 until now. Before, I used another platform with another trading system (different from MT4) that limited me to less money I could earn. Then my friend recommended me InstaForex that used MT4, so I can trade higher trading volumes.

IFX: It’s a dream of every trader. How did you manage to make fortune from such a small initial deposit?
AA:
Depends on the graf (high-recommended to sell, low-recommended to buy), besides, I used Forex trading signal, RSI, PPO, stochastic, technical analysis, and future fundamental analysis.

IFX: What currency pairs have you traded?
AA: My favorite are EURUSD, GBPUSD and AUDUSD.

IFX: Why have you chosen them in particular?
AA: For me, fundamental points of these currencies are easier to read and forecast..

IFX: What leverage have you chosen for trade?
AA: I start with 1:200. And I will change this parameter if I need in the Client Cabinet. This is a very attractive feature of InstaForex.

IFX: Did you plan to earn such a huge amount when started trading?
AA: Of course, yes.

IFX: You made a dream of a million traders come true, what do you feel after losing it?
AA: Really really frustrated… I was not in front of my PC when it happened. I was engaged in outside work during that time… so I couldn’t close my open position.

IFX: Do you plan to repeat it and get a million back?
AA: Yes!

IFX: If you succeed to make a million again, what will you spend it for?
AA: Clear all my loan, buy a new house, new car, do other investment and some charity’s work.

IFX: What in your opinion helps traders earn on Forex: their skills or good luck?
AA: Skills are very important, as a trader, a lot of new traders, should learn some basics, such as indicators, patterns, technical analysis, and fundamental analysis, but good of luck not all traders get it.

IFX: Do you think your profit was a result of your hard work or just an accident?
AA: I’ve 5 years experience as a trader. It is hard to become rich with small initial deposit, but if you’ve a lot of money, let’s say USD100,000 and more, you can rapidly earn money in short term..believe it!

IFX: What will you advise the beginning traders?
AA: For new trader, please learn some basics, follow your leader, ask them why, why and why and most important is gain experience in trading.

Competent active trading and compliance with you trading strategy make it possible for every InstaForex trader to reach the most cherished objective and add a new name to the list of the most successful traders.

Good luck in trading with InstaForex!

The material is prepared by InstaForex PR Department with the consent of the owner of the trading account № 2065757 Akhmad Arief. In October, in the terms of ShowFx Asia in Singapore there will be a video interview with the trader which will be published on GC InstaForex resources.

Forex and Zodiac

Friday, April 8th, 2011

How do different zodiac signs behave when trading on Forex market? What mistakes are typical for each of them? Which symbols can bring them luck? Which numbers can be their lucky charm? Which currency is the most favourable for each sign?

As any activity, Forex trading requires certain skills and qualities, such as ability to analyze current events and predict their development.

Let us have a look at Forex trading from astrological point of view and find out which numbers and symbols can be fortunate or unfortunate for a trader.

Aries

Ruling planets: Mars

Symbols and charms: horn, red-yellow square, hammer, knife, gold.

Favourable colours: scarlet, orange; unfavourable colours: violet.

Favourable numbers: 9, 11, 4, 7.

Favourable days of week: Tuesday.

Unfavourable days of week: Friday, Saturday.

Currency: US dollar

Aries traders are the driving force of the market. Aries are usually characterized by the burst of emotions. They are inclined to financial ventures, have little patience to keep positions and tend to close deals prematurely. Aries are good at high volatility and get bored during stagnation.

Taurus

Ruling planets: Venus

Symbols and charms: winged bull, eagle-owl, golden calf

Favourable colours: yellow, green, rich orange; unfavourable colours: red.

Favourable numbers: 6, 16, 2, 4.

Favourable days of week: Monday, Friday.

Unfavourable days of week: Tuesday.

Currency: Australian dollar, Swiss franc.

Taurus traders have fascinating persistence; they always stick to the proven trading tactics. However, their stubbornness is not always good for them, sometimes it can lead to considerable losses because of their desire to keep an unprofitable position. As a rule, Taureans never panic.

Gemini

Ruling planets: Mercury

Symbols and charms: mask, hand.

Favourable colours: grey, violet, light yellow; unfavourable colours: green.

Favourable numbers:  18, 15, 12, 3, 5.

Favourable days of week: Wednesday.

Unfavourable days of week: Thursday.

Currency: British pound, Canadian dollar, US dollar.

Geminis are under protection of Mercury. Traders born under this sign are in their element being surrounded by this vast flow of information. Geminis are usually excellent traders and brokers.  Quick reaction and their ability of finding a way out of a complicated situation are the secret of their success on Forex market.

Cancer

Ruling planets: Moon

Symbols and charms: heart, cancer, clover, silver.

Favourable colours: blue, white, light blue, light green, silver.

Favourable numbers: multiple of 2.

Favourable days of week: Monday, Thursday.

Unfavourable days of week: Tuesday, Saturday.

Currency: Australian dollar, New Zealand dollar.

Despite the fact that Cancers are immersed into their feelings, they still can be very successful traders. With each unsuccessful deal they accumulate experience that helps them avoid such mistakes in the future. As a rule, Cancers open accounts in the most reliable and the least risky currencies.

Leo

Ruling planets: Sun

Symbols and charms: eagle, lion, swan, amber, gold.

Favourable colours: gold, purple; unfavourable colours: white.

Favourable numbers: 11, 5, 1, 9.

Favourable days of week: Sunday.

Unfavourable days of week: Saturday.

Currency: Japanese yen, euro, US dollar.

As a rule, Leo always gets the biggest prize, both on the market and in real life.

For Leo Forex trading is kind of a theatre performance where he/she plays the main role. However, their disadvantage is that they cannot stay on top because of their greed and constant doubts. Thus, Leo traders are recommended to consider the opinion of Forex analysts.

Virgo

Ruling planets:  Mercury

Symbols and charms: aster, red poppy, cube.

Favourable colours: light blue, violet, white, green.

Favourable numbers: multiple to 5 and 12

Favourable days of week: Wednesday.

Unfavourable days of week: Thursday, Friday.

Currency: Swiss franc, Japanese yen, US dollar.

Traders born under the sign of Virgo are more successful in their job than any other sign. There are many successful people among Virgos, who earned a fortune with the help of their intellect.

Their mental structure allows them to detect the slightest fluctuations on the market. Besides, Virgo traders are very patient. With the help of technical analysis Virgos make their most grandiose plans come true.

Libra

Ruling planets: Venus.

Symbols and charms: rose, violet.

Favourable colours: dark blue, pastel colours.

Favourable numbers: 7, 15, 8, 9.

Favourable days of week: Friday, Saturday.

Unfavourable days of week: Tuesday.

Currency: British pound, Chinese yuan.

Weak psychic setup and special character of Librans is quite incompatible with trading. However, if they decide to get a trading account, this is a big step. Since Forex trading requires quick decisions, Librans might stumble and hesitate to make choice. In order to become a successful trader Librans should overcome their lack of self-confidence and work out their own strategy.

Scorpio

Ruling planets: Mars, Pluto.

Symbols and charms: pyramid, pink, peony, Ophiucus.

Favourable colours: dark red, raspberry pink, yellow.

Favourable numbers: 4, 8, 10, 11, 100, 666.

Favourable days of week: Tuesday.

Unfavourable days of week: Monday, Friday.

Currency: euro, US dollar.

On the market Scorpios are inclined to be suspicious and explosive. Scorpios are really attracting money. There are many rich people among Scorpios. No matter the situation, Scorpios always look calm and confident, though they might be burning inside.

Even when everything is lost, Scorpio can quickly restore his/her funds. After years of trading Scorpio becomes a typical trading tycoon capable of conquering the market.

Sagittarius

Ruling planets: Jupiter

Symbols and charms: centaur, horseshoe, narcissus.

Favourable numbers: 4

Favourable days of week: Thursday.

Unfavourable days of week: Wednesday.

Currency: Canadian dollar, US dollar

Optimism, inclination for risk and excitement, the ability to invest properly are invariable qualities of Sagittarius. However, traders of this sign are not that good at analysis and forecasting. In order to avoid skipping relevant information Sagittarius should pay attention to the opinion of Forex analysts.

Capricorn

Ruling planets: Saturn.

Symbols and charms: clock, stairs, zigzag.

Favourable colours: black, ashy-grey, blue, brown.

Favourable days of week: Tuesday, Saturday.

Unfavourable days of week: Monday.

Numbers: 7, 8, 3, 5, 14.

Currency: Swiss franc, British pound.

Thanks to the inherent sense of proportion, obstinacy and insistence, Capricorns have all chances for success on Forex. In order to make impressive accomplishments on Forex, Capricorns should dedicate much time to gaining practical experience through attending seminars and master classes, and also reading specialized literature.

Pisces

Ruling planets: Neptune.

Symbols and charms: pearl, fish, wave.

Favourable colours: violet, steel-blue, sea-green.

Favourable numbers: 6, 7, multiple to 7.

Favourable days of week: Monday, Thursday.

Unfavourable days of week: Wednesday.

Currency: Australian dollar, New Zealand dollar, currencies of Eastern countries.

Innate intuition of Pisceans ensures their success on Forex. They hardly would examine charts, news and indices; they are more likely to estimate trading forecasts, appraise opinions of other market participants to make their conclusions. Pisceans have a great potential to become high-class analysts.

Aquarius

Ruling planets: Uranus

Symbols and charms: key, wings, hand.

Favourable colours: lilac, emerald-green, violet; unfavourable colours: black.

Favourable numbers: 9, 13, 2, 4, multiple to 4.

Favourable days of week: Wednesday, Saturday.

Currency: euro, Japanese yen.

Constant changes of market indicators, continuous information flow and market dynamics totally fit the temperament of Aquarius. They are good at dealing with information; however, their disadvantage is being careless, inconsistent and short-sighted. Collaboration of Aquarius and Virgo or Capricorn might bring remarkable results on Forex.

Added by Alexandr Petryanin,
InstaForex Clients’ relationship manager

Trading tactics

Thursday, January 20th, 2011

When analyzing the market a trader should decide whether he wants to trade up or down. Besides, the amount of money invested in the deal should be defined. Finally a trader should choose between buying and selling of a contract.
Importance of determining the precise moment to enter or exit the market makes this part of margin trading the most complicated. The decision on the moment of market entry must be based on the combination of technical factors, money management and order type.
The process of determining the moment for entry or exit is characterized by short term and measured not by weeks and months, but by hours and even minutes. But in all cases the same technical tools are used. Major principles of such analysis are listed below.
1. Tactics based on Price Breaks.
There are three ways of trading with the help of price breaks:
closing the position in advance;
opening a position when the break is in progress;
waiting for a rollback after break.
Each approach has many advantages and disadvantages; therefore sometimes a combined approach is used. When working with several lots, a trader can open one position at each of the three stages. Besides, a trader might open a small position before the estimated break, and then open additional positions at an insignificant price decline during correction that follows the break.
2. Trendline Cross
This signal allows a trader to enter the market or to leave it soon enough, especially when a significant and reliable trendline has been crossed. Of course, other technical factors should be also taken into consideration.
3. Support/Resistance Levels
A break of the support level can be a signal to open a long position. The stop loss signal can be placed below the nearest support level or below the break level directly, which will perform a supporting function in this case.
Price decline to the support level during an uptrend and advance to the resistance level during a downtrend can be used to open new positions and add lots to already opened profitable ones. When setting stop loss signal, it is important to take support/resistance levels into account.
4. Gaps
Price gaps formed on bar charts can also be used to choose the proper moment to open or close positions. The stop loss can be placed below the gap. During downtrend a short position should be opened when prices reach the lower border of the gap. The stop signal must be placed above the gap in this case.

5. Averaging
Averaging is a trading strategy employed when a trader has made a mistake or opened a trade and the price has moved against him/her. In this case a trader performs a new operation of the same type but at a more profitable price. However, averaging has a drawback – no one knows beforehand to what price the market will go against the trader. And the averaging demands to each time invest a double amount of the money invested before.
6. Scalping
Another trading strategy, scalping, is usually employed by trader working with very short terms – one minute or five minutes. If the price goes up the trader buys, in case of the reversal he/she sells. As a rule, the trader performs about 15-20 deals a day.
The drawback of this tactics is that the trader should always watch the market and cannot divert his/her attention from the charts.
We have described the most popular and well-known trading tactics, but the choice is always up to the trader. Maybe you will choose a strategy and switch to a more suitable later on.

Added by Alexandr Petryanin,
InstaForex Clients’ relationship manager

How to develop a trading system

Wednesday, January 5th, 2011

Trading system structure

When developing a trading system a trader should focus on market behavior and market movement in particular. For this purpose we need to understand inner organization and life cycle of trend. Trader’s behavior and, as a result, price movement should be taken into consideration. Based on this, we can make a conclusion that markets consist of three trends. The first trend, the most continuous one, can last for several months and should be used to determine market direction for opening positions. The second trend is correction lasting for several days and determined by more sensitive indicators. The third market movement looks like a sideways trend between correction and main trend extension. This is the shortest trend continuing for one or two days. However, in this case the main trend will not be followed by correction, but by a new opposite trend. When looking for a point of entrance to the market, two or three trend indicators should give a sign to open a position. As to closing the position, an oscillator and a trend indicator should be used.

How to open a position

First, the system uses a less sensitive indicator with larger order to determine the major market direction. After the direction of the market in medium term is defined, the next target is to find a medium-term indicator giving signals within a long-term trend. Such signals usually appear after the correction of the major trend is over. Another series of signals will be required because the first intermediate signal of the medium-term trend will appear before the long-term indicator will allow the system to trade in this direction. In this case a trader should mind strict sequence of signals from indicators of various sensitivity. According to this sequence signals should appear in the following order: short-term, medium-term and long-term. As soon as the trend is defined, first intermediate and short-term signals will have already appeared, and receiving of repeated intermediate and short-term signals for several times within a long-term trend will be prior for the system.

There are lots of intermediate indicators including single and double moving averages, channel breakouts etc. The system usually does not allow for each of them, but rather uses them in the aggregate. As a result, the system is based on a combination of indicators, which can contradict with each other at worst. In such situation a trader should choose an indicator most suitable for him/her.

A position is opened by a market process activation followed by an intermediate signal. There is also certain choice of starting mechanism.

How to close a position

After determining the rules of opening a position it is essential to learn how to close it. However, this is an open question for most traders. The main trader’s target is to clearly define the end of the major trend or the beginning of the correction. Besides, a trader should gain control over him/herself when getting small profit or loss.

It is important to remember positions opened with the help of a signal are not always profitable since trend indicators can be mistaken. For this purpose a trades needs a stop signal that will determine the moment for the system to close a position. Stop signals are used to prevent a trader from money loss. Each experienced trader uses stop signals; those traders disregarding stop loss are condemned to failure, which is only a matter of time.

When trading goes in the estimated direction a trader should choose between getting quick but sure profit and further trading with hopes of larger profit. What should one do in this situation? One option supposes using trailing stop signals, another one suggests taking advantage of oscillators capable of predicting corrections and reversals of the trend.

How to use stop signals.

There are five types of the most popular stop signals:

1. Max stop loss. This signal is executed when the appointed share of initial funds or a fixed amount in an open position is lost.

2.  Trailing stop. When using this signal the position is closed when an appointed amount of current profit is lost; i.e. the stop signal follows the market and when the profit decreases by a certain amount all positions are closed automatically.

3. Profit target stop. This stop signal closes the position if certain predetermined profit is achieved.

4. Breakeven stop. This signal allows a trader to determine current profit level; when the market exceeds this level the price of opening the position appears a stop signal for exit. This is a way of insuring funds.

5. Inactivity stop. This signal is activated when the market cannot provide certain profit for the open position during a predetermined period of time.

In addition to the type of stop signal a trader should choose the size of the signal. Stop signals are divided into two categories: close and distant. Ideally, a stop loss should be located far enough to barely transcend accidental price movements, and close enough for convenient control over trading risks.

Proper use of oscillators and trend indicators

It is well known that trend indicators follow the market tendency. The very organization of indicators implies that they show past price dynamics; they indicate the beginning of a new trend only after it has already appeared, but do not predict it. This means that some time will be lost and the trend might change during this time, which can move the price in the undesirable direction. If a stop loss was not set, a trader would lose a part of profit.

In this case oscillators following a trend can be helpful. Unlike trend indicators, oscillators can be effectively used when there is no major trend and the market dynamics is limited by a quite narrow horizontal price corridor.

However, identification of market corridor limits is not the only function of oscillators. Combined with the analysis of price graphs while prevalence of a certain tendency, oscillators can predict short critical periods in the market activity called overbought or oversold market.

What requirements should be set when developing a trading system?

One of the major factors that should be taken into consideration is investment of psychological and financial resources. First, the ability of a trader to control his/her behavior and emotions has significant influence on the successfulness of trading and frequency of traded deals. A trading system employed by a trader does not become an independent program after a start; its work can be interrupted anytime at the trader’s will. Thus, the trading system must suit the temper of the trader using it.

Added by Anna Shubina ,
InstaForex Clients’ relationship manager

Factors affecting the dollar rate

Thursday, December 16th, 2010

Each Forex trader should track the dynamics of the US dollar rate and estimate its behavior against other currencies. Successful USD trading can be organized by using graphic models, observing fundamental factors and paying attention to the market sentiment.

When trading the dollar it is necessary to mind the current US economy state. It is natural that a stable economy attracts investments, creates the atmosphere of confidence and safety, and ensures capital inflows, which allows compensating the trade deficit.

The US economy is experiencing a trade deficit caused by the import prevailing over the export. However, advancing economic indicators of the country seem quite attractive for foreign investments, which provides a good opportunity to recoup for the trade deficit.

Let us consider the factors affecting the dollar value:

Demand and supply. According to the indicators, import exceeds export; therefore, the demand for the US currency on the international market is not supposed grow day by day. Then the government and major corporations start to issue bonds. They are bought by foreigners, which results in growing demand for the US dollar and the appreciation of its value. Foreign interest in the dollar has been increasing due to the economic growth and improving incomes of the US companies. Market psychology also influences the dollar value. For instance, rising jobless rate and other negative factors tends to provoke bonds and shares selling. This is how money is taken out of the dollar sphere and converted back to foreign currencies, which determines the decrease of the dollar value.

Besides, technical factors should be taken into account. The most essential of them are news and statistical data related to the economies of the countries. They can help determine short-term and even long-term market trends. Sometimes psychological factors and sentiments can dominate over economic indicators. In this case it would be wise to draw analogies to the market behavior under similar circumstances. Please, keep in mind that a certain situation can always reoccur on the market.

Each trader develops a trading strategy in accordance with his/her psychological type. A trader is guided by his/her personal considerations when making a decision to buy or sell the dollar. The best decision will be the one supported by several different factors. Proper allocation of priorities and adequate estimation of market processes will lead you to the successful trading.

Added by Tatyana Makhina,
InstaForex Clients’ relationship manager