Forex Currency Trading Online - eToro

An interesting video regarding online currency trading from eToro.

You can invest your money online and even get up to $500 free bonus. Of course, you can always try out a demo forex account before you venture into forex. Unless, you are very well versed in the technicalities as well as fundamental news that move the currency market.

Have fun watching !

PS : Do try out a demo trading account first and not go headlong on into an investment account until you are fully aware of how your online broker functions and how you manage your metatrader platforms. Always remember to try out the expert advisors first before you implement it to a real live account !

How Does Forex Trading Work ?

A video from Youtube giving a brief introduction of forex trading and how it works. And the market value and why it is so popular with so much currency between transacted everyday.

Also, featured is its brief on the use of expert advisors and auto forex trading robot. A simple comparison overview of auto vs manual forex trading. Watch it if you like ! Another video on a forex trading seminar is also embedded in this post :)

A Forex Trading Seminar video

Moving Averages

Types of Moving Averages

One of the most widely used indicators - moving averages, help traders verify existing trends, identify emerging trends, and view overextended trends about to reverse. As the name suggests, these are lines overlaid on a chart that "average out" short-term price fluctuations, so you can see the long-term price trend.

A simple moving average weighs each price point over the specified period equally. The trader defines whether the high, low, or close is used, and these price points are added together and averaged, forming a line.

An exponential moving average weighs more recent price data in a different way. An exponential moving average multiplies a percentage of the most recent price by the previous period's average price.

A weighted moving average gives more emphasis to the latest data. It smoothes out a price curve, while making the average more responsive to recent price changes.

It can take a while to find the best combination of moving average and period length for your currency pair. The right combo will make the trend you're looking for clearly visible, as it develops. Finding that optimal fit is called curve fitting.

Usually traders start by comparing a few time frames for their moving averages over a historical chart. Then you can compare how well and how early each timeframe signaled changes in the price data as they developed, then adjust accordingly.

When you've found a moving average that works well for your currency pair, you can consider this as a line of support for long positions or resistance for short positions. If prices cross this line, that often signals a currency is reversing course.

Here's an example of how it works :

Longer-term moving averages define a trend, but shorter-term MAs may signal its shift faster. That's why many traders watch moving averages with different timeframes at once. If a short-term MA crosses your longer-term MA, it can signal your trend is ending - and time to pare back your position.

I hope this helps ! See below video for more info.

What is Forex Trading

Interesting two part video on Youtube on forex trading for beginners.

I hope you find them useful and informative :)

Part I



Part II

Forex Scalping Overview

A very informative educational video on scalping on a 10 minute chart.

Very useful for forex beginners. Take some time to watch this video if you want to go into scalping strategies.

Just take note that before investing in any forex trading account, practice with a trial/demo account before going live. Again, I wish to remind all readers that forex is a very volatile market that can make you tons of money and at the same time can clean your account out. It is a risky market and so you have to be able to cope with and manage these risks. And for a risk adverse person, personally I feel that the forex market is not for you.

However, it is a good experience for you to try something new. Just start with a small account if you want.