Tuesday, March 29, 2016

Which Time Frame Should You Trade

One of the reasons most novice forex traders fail to achieve success in forex trading is because they’re actually trading in a time frame that doesn’t perfectly match their personality.

One of the most important thing a trader should consider is which time frame are they most comfortable to trade in.

Most of the forex newcomers often carry this “false expectation” that you will instantly earn tons of money once you enter the forex market. Because of that belief, they are tempted to trade on short time frames, such as 1-minute or 5-minute charts.

Unfortunately, this type of time frame does not work quite well with beginner traders, as longer time frames are believed to be a more appropriate option for novice traders.

Truth is, only you can actually determine which time frame are you most comfortable with. Are you the impulsive kind of person who makes quick decisions and looks for results right away? Then short-term time frame such as 15 minutes or 5 minutes (also called Scalping or Day-Trading) might work best for you.

However, if you’re a more cautious type of person, and does not want to feel rushed when making decisions, then long-term approach might be more suitable for you. The most optimal time frame for you might be to trade on daily, weekly or monthly charts.


Novice traders should stick to a long-term approach, and only move to shorter-term time frames as they get more familiar and see success in long-term strategies. In this manner, as the margin of error decreases with shorter term charts, the trader will be able to make adjustments to his risk and trade management.

Learn more about foreign currency exchange trading and further understand what is forex by visiting our educational blogs. Do you want to find out who the best forex brokers are? Then visit Wibestbroker.com to see :)

Monday, March 28, 2016

What is Resistance in Forex Trading?

Just like when you’re learning a new language, being a newbie in forex trading means that you have a lot of forex trading terms you’re unfamiliar with. But that won’t be a problem, because our educational articles will help you to easily understand most of these unfamiliar words.

Resistance is the price level in which the security has refused to increase in price and starts decreasing rather. Think of it like a barrier, the price is trying to get past it, but it still prevents the security’s price from going higher, and therefore pushing it down instead. 

The good thing about resistance level is they are quite easy to be distinguished, and it often does not require high levels of expertise in chart analysis. Therefore, even a beginner trader can easily identify resistance levels. 


Resistance levels can appear at the exact same price numerous times, but keep in mind that it’s not always the case. Oftentimes, the resistance levels occurs at slightly different prices, which creates what traders call as “resistance zone”.

For example, if the price refuses to go beyond $5 and starts pulling back once it reach the price level of between $5 and $5.10 in multiple trades, then the resistance level isn’t just $5, but the area between $5 and $5.10 is the whole resistance area or “zone”.

You should also remember that the barriers caused by resistance levels will not remain permanently, so your most important job would be to determine which levels are more likely to remain and which are about to break resistance. With proper understanding of the market and the help of technical analysis, you will be able to easily distinguish these more accurately. 

Learn more about forex trading and further understand what is forex by reading our educational forex blogs. See who the best forex brokers are, visit Wibestbroker.com to find out :)



Monday, March 14, 2016

Brief Introduction About Moving Average

As the foreign currency exchange market becomes more of a popular investment type for most investors, and with the increase of the people who’s looking to make a substantial amount of income from forex trading, the need for accurate trading systems and techniques has become crucially vital especially for the newbie traders.

One of the most significant concepts a beginner forex trader should understand is what a Moving Average is. In this article we will discuss about the moving average, how it is calculated, and how is it used as a trading indicator.


Moving Average is characterized as a technical indicator that displays the average value of a specific currency pair over a predetermined amount of time. It is determined by averaging a number of historic data points.

This means, for example, that the value of the security is averaged over 30 or 50 days, or 20 and 50 minutes, depending on the time frame you chose to use at the time of your trading activity.

Once the moving average is determined, it is plotted in a chart enable traders to look at smoothed data instead of focusing on the day-to-day price fluctuations that is always present in all financial markets.


This is especially helpful for traders who’s looking to eliminate the “noise” in the price fluctuations and wants to give a more precise emphasis in the trend direction of the currency pair he is currently trading.

If you want to be successful in forex trading, you must equip yourself with all of the essential knowledge about the forex market. Educate yourself about forex trading and further understand what is forex by reading our educational blogs and articles. See who the best forex brokers are, visit Wibestbroker to find out!

Tuesday, March 8, 2016

What Is A Technical Indicator in Forex

Hello there, fellow forex trader! If you’re reading this article, then you might be quite new in the foreign currency exchange market and there’s a lot of forex trading terms you are unfamiliar with. 

In this article, we will further discuss what are the “technical indicators” in forex.

A technical indicator is any kind of metrics whose value is acquired from generic price activity in a stock or asset.

Technical indicators are used in predicting the future price movement, or simply the general price direction, of an asset by looking at the previous patterns.

Some examples of common technical indicators are Relative Strength Index, Money Flow Index, Stochastics, MACD and Bollinger Bands.

Technical indicators, which are also generally called as “technicals”, are recognized by the fact that they don’t analyze any part of the fundamental business, such as earnings, revenue and profit margins. Technical indicators are largely used by active traders in the market, as they are basically designed to predict short-term movements in the price of the security. 


For a long-term investor, the technical indicators are of a little use for them, as they do not really help in analyzing the underlying business. What a technical indicator can do for a long-term investor is to help identify good entry and exit points for the stock by examining the long-term trend.

Learn more about the stock market and further understand “what is forex” by reading our educational blogs. See who the best forex brokers are, visit Wibestbroker.com to find out!

Wednesday, March 2, 2016

Forex Trading Would Not Make You Rich In An Instant

For those who are not that familiar with the forex trading market, there is often a misconception that by trading in the forex market, you would easily get rich in no time as long as you know all the important rules in trading. However, no matter what others might believe in, there is no shortcut in getting rich, and same goes with forex trading.

Forex trading involves a high level of risk, and no matter how careful or knowledgeable you are in the forex market, there is no 100 percent guarantee that you will always succeed in your trades. There are times that you won’t earn any profit at all and worse, you’ll lose some money along the way.

If you happen to be a perfectionist and cannot accept the fact that you’ll experience losing some money along the way, then forex trading might not be for you. In the end, it’s not about how you will avoid these losing money, but how you will handle these losses, and how will you be able to earn more than what you’re losing.

Also, you need to accept the fact that forex trading might not be for those who are unemployed, or those who are only earning a low amount of income. Forex is very risky, and you should not expect to earn millions of dollars just by investing a few hundred dollars.

The problem with most forex traders is, they often enter the forex market with the misguided hope that they will earn millions of dollars in a short amount of time, but in reality, they really lack the discipline that is necessary to fully understand the art of trading. 


Forex trading, just like sports or any type of career, success doesn’t just come overnight. You need patience, knowledge and lots of hard work in order achieve the success that you truly wanted.

Learn more about the foreign currency exchange market and fully understand what is forex by reading our educational blogs and articles. See who the best forex brokers are, visit Wibestbroker.com to find out!

Tuesday, March 1, 2016

What is PIP in Forex Trading

If you are not that familiar with the foreign currency exchange market, there might be a lot of forex trading terms which are unfamiliar to you. 

In this article, we will discuss the meaning of PIPS in forex trading. 

First of all, what is PIP? PIP, which stands for “Percentage in Point” is the “point” used for calculating the amount of profits and losses. Basically, a PIP or PIPS is 1/10,000 and is usually positioned in the 4th decimal place.

However, there is an exception to this rule. In all currency pairs involving the Japanese Yen, a pip is positioned in the 2nd decimal place, or 1/100.

So, if you want to calculate the value of a pip in a specific lot, you need to multiply it by 0.0001, because a pip is equivalent to 1/1000th of all pairs, except the Japanese Yen. 


So for example, if you are trading 10k lot of CAD/USD, you will need to multiply the 10k to 0.0001 to get the equivalent value of a pip. Doing so would get you a value of 1. That will be valued in the counter currency of the currency pair you are trading. So, that means that 1 pip is worth 1 USD for every 10k lot of CAD/USD.

Learn more about the forex market by reading our forex educational blogs and articles on a daily basis. See who the best forex brokers are, visit Wibestbroker.com to find out!