Need a Solid Online Forex Trading Strategy | SigmaForex

You need to develop an online forex trading strategy and run with it. As you know, in Forex, you are not buying the corporeal currency; you are laying money on the movement of this currency. If the value of the currency rises or falls you will either make or lose money. In the world of Forex, this is known as spread trading, meaning you are placing a bet that a certain currency price will move in the way you want it to move in.

Every day new traders enter the market and every day traders fail to make money. There are three main reasons why people fail to make money in trading the Forex. First, they don't set a budget for each trade and end up losing way more than they can pay for to lose. Second, they don't have a solid Forex trading strategy. Third, they lack the discipline it takes to be a trader. Most people fail in all three of these areas, but even failing in one area can destroy a trader.

Before you begin trading, you need to sit down and figure out what you can spend on each trade you make. You need to know exactly how much money you can afford to lose and how much you wish to gain on each trade. If by some chance a trade happens to go against you and you start losing money, you shouldn't close out of a trade until you reach your losing marker. When a trader enters the market, they enter with high expectations and don't expect to lose money. When they start to trade and something goes wrong, they panic and bail out. In turn, they miss out on the chance that their odds will turn and they might make some money on that trade. This is why it is so important to have a game plan before trading.

Sigma devotes serious effort to serve the emerging retail segment of the Forex community. Its commitment to providing an excellent customer service, innovative currency trading technology, and dealing practices, establishes Sigma as a notable force that traders look forward to for an advanced Forex charting, Forex news, and fund safety.

Customers funds deposited with Sigma, are held and maintained separately in separated trading accounts at our partner banks. Sigma also provides its customers a variety of account plans, and services to choose from when creating or adjusting a profile.

Money Flow Index (MFI)

The Money Flow Index measures the amount of money flowing in and out of a security.It’s a good measure of the strength of money flowing in and out of a security.It compares “positive money flow” to “negative money flow” to create an indicator that can be compared to price in order to identify the strength or weakness of a trend.- A divergence between price and MFI often signals an imminent reversal of the trend.- Readings below 20 on the scale are considered oversold (bullish).- Readings above 80 on the scale are considered overbought (bearish).When analyzing the MFI the following should be taken into account: divergences between indicator and price movement. If prices increase and MFI falls (or vice versa), the probability of price turning is very high. MFI values higher than 80 and lower than 20 signalizes respectively about potential peak or foundation of the market.

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Accumulation/Distribution (AD)

Accumulation Distribution is a price and volume indicator.- When the Accumulation/Distribution moves up, it shows that the security is being accumulated (Buying), as most of the volume is associated with upward price movement.- When the indicator moves down, it shows that the security is being distributed (Selling), as most of the volume is associated with downward price movement.- Divergences between the Accumulation/Distribution indicator and the price of the security indicate the upcoming change of prices.

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William�s Percent Range

It was developed by Larry Williams. This system attempts to measure overbought and oversold market conditions.The %R always falls between a value of 100 and 0. There are two horizontal lines in the study which represent the 20% and 80% overbought and oversold levels.Indicator values ranging between 80 and 100% indicate that the market is oversold.Indicator values ranging between 0 and 20% indicate that the market is overbought.But we have to take in consideration that overbought does not necessarily imply time to sell and oversold does not necessarily imply time to buy so, it's very important that if an overbought/oversold indicator, such as Stochastic or Williams %R, shows an overbought level, the best action is to wait for the futures contract’s price to turn down before selling.So, you sell when %R reaches 20% or lower (the market is overbought) and buy when it reaches 80% or higher (the market is oversold). However, as with all overbought/oversold indicators, it is wise to wait for the indicator price to change direction before initiating any trade.

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Stochastic Oscillator

George C. Lane developed the Stochastic Oscillator in the late 1950s.It’s a technical indicator which compares a stock's closing price to its price range over a given period of time. The belief is that in rising market stocks will close near their highs, while in a falling market they will close near their lows.The Stochastic Oscillator contains four variables:1) %K Periods: This is the number of time periods used in the stochastic calculation.2) %K Slowing Periods: This value controls the internal smoothing of %K. A value of 1 is considered a fast stochastic while a value of 3 is considered a slow stochastic.3) %D Periods: This is the number of time periods used when calculating the moving average of %K.4) %D Method: The method (Exponential, Simple, Time Series, Triangular, Variable, or Weighted) used to calculate %DSignals for buying & selling:- The signals of buying given when oscillator (either %K or %D) falls below the line, and then again crosses the bottom level upwards or when the curve %K crosses the curve %D from below upward.- The signals of selling when oscillator grows above the line, and then crosses the top level downwards or when the curve %K crosses a curve %D from top to downward.

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