Forex Tutorial: What is Forex Trading?
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Nice bunch of guys here Physically I'm in Perpignan phonetically per-pin-yon , came to see my home team Catalan Dragon's as it turned out lose I like long weekends here! Here are the open and close times for all 7 trading sessions in your time zone. These times are valid until next March, when the world will begin the Daylight Saving Time craziness all over again.
Note that the "Zurich Session", as I refer to it, is the same session that you refer to as "Frankfurt". This means that the regulator of all financial services that take place in Germany is also in charge for Forex activity. About 4, financial institutions in Germany ranging from banks, financial services institutions and insurance companies, as well as Forex brokers are under the occupation of the mighty, but fair BaFIN.
The unified financial regulation system here works quite well, even though we have become witnesses of really bad practice of this strategy. This means that BaFIN are responsible for the transparency in financial trading, as well as for all the trading accounts traders open, when trading in a German broker. All disputes and legal arguments between traders and brokers or between financial companies only are handled by the agency and up to now it shows fantastic and what is more important really fast results, when a problem or inquiry appears.
Last, but not least BaFIN is always by your side — if you are a trader, including a beginner, and you need some additional information about a certain broker you would like to join. Nearly ten years ago, almost all the Forex operations were made only via a telephone call.
This means that if a trader wants to make a trade, he would have had to make a call and say his order. Once the call is done, the broker proceeded with the operation and the trader had to wait for the results and then, in case of a win, he would have had call back.
But all of these remained in past! Financial trading in Germany today includes operations with hedge funds , commercial companies, authorized banks and investment management companies.
It is also quite possible our entry criteria will not be met and thus we miss out on a large move because the market starts moving in one direction and continues in that direction. For this reason, we will not get trade signals everyday from this strategy. Trades are made after a swing high, then a swing low is made, both 25 to 40 pips from the open, and our trade is entered when a new high is reached or swing low, then high and a break lower. The strategy does have a few downsides, but it can also be profitable, and it controls risk.
The strategy is easy to implement and takes advantage of patterns seen around the open of a market. Trading forex can make for a confusing time organizing your taxes. But there are simple steps to keep everything straight. To learn more, read Forex Taxation Basics. The Forex Market The following day trading strategy takes advantage of price change patterns but couples the pattern with a time frame that makes the pattern more reliable than if traded at a random time.
The strategy is as follows A 25 to pip move or more above or below the opening price at 7am GMT. Then a 25 to pip move or more below or above the opening price. This creates a range of movement on both sides of the opening price. We enter a trade when either the high or low of this range is broken. Ideally, we want to see low, high, low breakout, or high, low, high breakout , although this does not need to be the case. Initial stop is 40 pips. Take profits on half of the position when showing a pip profit.
Trail the rest of the position with a pip trailing stop, or alternatively create a second profit target. This can be done by calculating the difference between the morning high and morning low. Then add that difference to the breakout point, this is the profit target covered in example below.
Avoid patterns where initial moves in each direction are larger than 40 pips. Moves such as this create large opening ranges that are tradable themselves. All times in GMT. Forexyard Figure 2 looks at an alternative setup.