Stock Trading Index or so-called Index trading course, known to have high levels of volatility, even higher than Forex trading. Unlike many forex traders that we have encountered in Indonesia, the number of Index Traders still relatively small. With high levels of volatility, not all traders are able to become a Trader Index.

Trading Index is better suited for high-risk large traders who dare to risk is high. But with enough knowledge, any trader could have to feel the Index Trading profit from this. For that I'll review a few tips that might be useful for you as an initial step to study the Trading Index.

Index Trader Indonesia
Based Blogwalking I have done, the Index Traders in Indonesia like the majority of trading on Hangseng Index and the KOSPI. The rest they choose to trade in the NIKKEI Index and Dow Jones.

Why are they so interested in Hangseng Index? On average their answers together, Hangseng Index has a high volatility among all other products Index trading or forex trading, so that very large profits on offer in the category of day-trading.

The small number of index traders in Indonesia is probably caused by a lack of brokers who offer products Index funds are affordable. Index for trading products through local brokers require a minimum of 50 fund up to 100 million dollars. Usually the index traders outsmart the search for foreign brokers that provide the initial deposit, as well as an Introducing Broker to use intermediaries.

Basic Index Trading Tips
For those of you who have been accustomed to trading in forex and stocks, I am sure you will feel the difference is striking when you try to jump into the index trading. With high levels of volatility, then the adrenaline will be encouraged to follow our "wildness" Index chart movement. It is very important for you to always remember the following:

• Think and act quickly.
• Have sufficient capital margins to always survive.
• Has the entry point and exit points before doing the open position.
• Having a trading plan is tight and very, very disciplined.
• Keep your emotions, so do not be too greedy.

Index market often move with the trends that tend to be short. I think the type of swing tradinglah the most efficient market for trading in the Index. Swing trading is not trying to predict the length of the trend going, but has a goal to maximize profits at the time of the trend and retracement. In order to run a successful swing trading, then we should be able to determine the reference entry points and exit points quickly.

Problems that often happens is that many traders do not have enough capital to withstand margin should be profitable position.
Let's look at the following example:


A trader must bear floating loss of 37 ticks or the equivalent of $ 1,850 on regular account according to the analysis before moving trend that we plan and become profitable. Many traders are not able to hold the floating loss of that size, although they believe that the position taken will be profitable. To that end, the choice of a mini account is probably more suitable for those who do not have the capital or large margins that the new traders start trading Index.

Moving average crossover (the intersection of the moving average indicator), often used to determine entry points and exit points. Since the intersection of MA can be used as a sign of starting / end of a trend. But if we just rely on the intersection of MA lines only, then we will find the false signals. It needs to be added to other indicators such as Stochastic and MACD to further ensure the trend going. Do not forget to always use stop-losses which the previous day's High and Low can be used as a reference.

Commodity price developments and the index is currently providing a significant impact on several developments in trading Forex currency. Only a few commodities such as crude oil, gold, natural gas that is able to make a strong influence on the rise and fall of the USD and other currencies. Likewise with pegaruh stock movement in America is merged with the Dow Jones Index. If the movement of stocks in a country generally has decreased the value of the currency country will also be corrected down.

Crude oil
Crude oil, or better known as Crude Oil is a commodity and the world needs at this time. Even Indonesia is also experiencing the oil crisis at the moment.

Crude Oil Composition:
Carbon dioxide (CO2): 83-87%
Hydrogen (H2): 10-14%
Nitrogen (N2): 0.1-2%
Oxygen (O2): 0.1-1.5%
Sulfur (Sf): 0.5-6%
Other metals: <1000 ppm

The output of crude oil that is used day-to-day is diesel, gasoline, pertamax, etc.. 84% of crude oil will be processed into vehicle fuels such as gasoline, fuel diesel and jet aircraft, earth heating heating materials, other fuels, liquefied petroleum gas and liquefied gas.

Barrel is a unit of crude oil into a medium of exchange dollar exchange rate. Selection of the dollar as a medium of exchange of oil and gold because the USD is known almost all over the world. Especially for oil, America is the world's highest oil consumption exceeds China. Barrels are also recognized and used as a tool unit of crude oil because it has been authorized to use the ISO 9001:2000 standard.

The usual categories of crude oil is traded in the world:

1. West Texas Intermediate (WTI), which is the highest quality, sweet, golden yellow oil produced in Cushing, Oklahoma (United States).
2. Dubai-Oman, is supplied to the Middle East and Asia Pacific.
3. Tapis (manufactured in Malaysia, is supplied to East Asia).
4. Brent Blend, which consists of 15 kinds of the Brent and Ninian systems tested produced waters east Shetland Basin in the North Sea. The production base is in Sullom Voe, Shetland. Countries in Europe, Africa and the Middle East using this oil as a standard means of exchange of commodities.
5. Minas (manufactured in Indonesia, is also supplied to East Asia).
6. OPEC Reference Basket, produced in member countries of OPEC.

Recently the oil back down to the area under $ 120 per barrel. This is because there are storms that disrupt Edward oil & gas pipeline diteluk Mexico so that the oil sold under the normal price (sale) to save the existing inventory of the storm.

As in the previous explanations about the development of the world's oil exporting countries such as Canada's oil sales will decline because of falling world oil prices. Here we show the chart of USD / CAD as oil fell from $ 147.47 (July 15, 2008) to $ 118.38 (August 6, 2008).

With the rise in world crude oil prices then:

1. The USD will weaken. This is because the burden of the country's oil consumption will also increase the U.S. trade balance followed a negativ.
2. Currency value of world oil exporting countries such as routine CAD (Canada), and NOR (Norway), will rise.
3. Value of the currency pair (pair) against the USD the other like AUD / USD, EUR / USD, GBP / USD, and NZD / USD pair is followed by weakening of the USD / CHF, USD / JPY and USD / CAD.

Gold
Who is not familiar with this one commodity, namely gold, where gold is used as a standard unit based on the Bretton Woods system. Gold symbol is XAU based on ISO standards. The size of the purity of gold is known as rust. The most pure is 24 karat. Gold prices are high at the moment because there is very limited. The first time the U.S. government fix the price of gold to $ 20.67 per troy ounce ($ 664.56 / kg), in 1934 rose to $ 35 per troy ounce or Setar to $ 1,125.27 per kg.

In 1961 the United States and Europe make up the market price manipulation in gold prices soar at this time. Current gold price is $ 892.4 per onz. In 2005 the agency the World Gold Council estimates gold supplies in the world today reached 3859 tons. If the reduced demand for gold which totals 3754 tons then there is still residual of about 105 tons.

Gold is the standard value of most currencies like the United States. It can be said gold is a precious commodity second only to oil. Country's most sensitive to fluctuations in gold prices are AUD. Here we show the value of AUD / USD when the price of gold hit $ 957 per ounce (15 July) and the latest data (August 6, 2008) when the price of gold reached $ 891 per ounce.

Dow Jones Index
Dow Jones Index is a main index that includes all services including currency exchange rates and various other investment products. Better known is the Dow Jones Industrial Average or better known as the Dow Jones Index 130 000 kinds of products which include fixed income and alternative investments, including hedge fund investment and commodity markets. DJI is also the owner of the Dow Jones STOXX Index, one of the base index in which there is the European index, the Wilshire Associates (Dow Jones Wilshire Global Index), which consists of data the Dow Jones Wilshire 5000 index in which there are in 60 countries and 12,000 securities firms. Systems contained therein is an integrated and unified system that is integrated with one another.

The point the Dow Jones Index reflects the 95% capitalization U.S. companies, small and medium enterprises outside of the slow movement of its stock.
If the movement is weakened or strengthened the DJI USD currency movements will also be affected. If all stock prices are incorporated in the DJI rose then the USD will also tend to rise, demikikan otherwise.

What is Divergence Trading and What if there is a way of trading with a low risk to sell or buy near the top that are near the bottom of a trend? So what if you are already in a position to buy and you can know the right time to exit the market? What if you believe in the currency pair will continue to fall but would like to open sell with a better price or with entries that are less risky?

Probably a good idea to use a known way with Divergence Trading. Short said the difference can be seen by comparing the actions of a price and movement on the indicator. Do not care about the indicators you are using. Where you can use the RSI, MACD, Stochastic, CCI and others.

In using the Divergence Trading can be very useful in finding a weakening trend or a reversal of momentum. Even sometimes you can use it as a signal for the continuation of a trend. Divergence trading there are two types, namely Regular and Hidden Divergence Divergence in which both of these would I strip for you all below.

1. Regular Divergence
Regular Divergence is used as a sign of the possibility of a reversal of a trend. If the movement was headed for a lower price (lower low / LL), but the oscillator formed a higher low (higher low / HL), is regarded as a Regular Bullish Divergence. This usually happens at the end of a downtrend. If the oscillator fails to make a new lower low, it is likely that prices will rise. Here is a picture which is going on Regular Bullish Divergence.


If the movement of a high price is being formed which move higher (higher high / HH), and oscillator forming a lower high (lower high / LH), then the movement is called with Regular Bearish Divergence. Regular bearish divergence occurs when a trend is showing a rising price movement. in the figure below, we will see prices reverse direction after forming the higher high with lower high oscillator form.


As you can see in the picture above, where regular divergence is best used when trying to pick tops and bottom. Where you are looking for an area where prices will stop and so was the opposite.

Now you already know about Regular Divergence, easy and very simple is not on the Regular Divergence.

2. Hidden Divergence
Divergence occurs not only as a potential reversal of a trend, they can also be used as a sign for the continuation of a trend. You need to always remember, the trend is your friend, so whenever you can get a signal that the trend will continue, then it is good for you.

Hidden bullish divergence occurs when price action formed a higher low (Higher Low / HL), but the oscillator to form a lower low (Lower low / LL). It can be seen as a pairs are in a rising trend. After forming a low price that is higher and see the oscillator to form a lower low. Movement can you see in the picture below.


Finally, we have hidden bearish divergence. This happens when the price of forming a lower high (Lower High / LH), but the oscillator formed a higher high (Higher high / HH). this occurs when decline trend.


Hopefully this explanation will help you in understanding Divergence Trading and can apply it at the time of your trading.

In previous articles I have discussed the Regular and Hidden Divergence Trading, so this time I will discuss about Divergence Trading Method in applying it to gain pips.

Here I'll show an example when there is some difference between the price movements and the oscillator. First, let's see regular divergence. Below is a daily chart of USD / CHF.


We can see the trendline that USD / CHF declining trend in the movement. However, there are signs that the downtrend movement coming to an end. Price has formed a lower low, and stochastic (indicators that I use), showed a higher low.

But before you need to consider, it seems there is something fishy here. Is the reversal of the previous price movement will soon occur? And whether it's time to do open positions?


If you answered yes to that last question, then you will generate a lot of pips. Before we proceed, if you see a tweezer bottom formed on the second lower low?

Where This would provide a more confirmation that a trend will end soon, which gives more reason to believe in the divergence. Next, let's look at an example of hidden divergence. Once again, let's look at the daily chart of USD / CHF.


Here we will see that a pair is in a downtrend pregerakan. Notice how prices form a lower high but the stochastic is forming higher high. According to my notes, this is a bearish hidden divergence, what should we do? While time moves back up?

If you are unsure, you can sit back and watch the price movement for a while.


Furthermore, if the trend continues down and getting down, then the price will bounce off the trend line and finally jump up to almost 2000 pips. Rather tempting ....

Hi traders ...

It was already a long time I really do not sempet for just sharing here. Reportedly gimana nih ... Hopefully fellow traders all in good health and profit ...

Ok ... For the topic of discussion this time, I will try to discuss about your capital incestasikan in forex trading and bagamana we should do the management accounts in accordance with the amount of our capital

The amount of capital invested in forex trading is basically very varied from one trader to another trader. There is a trader friend who invested capital below $ 100, or even from no capital but there is also the capital invested over $ 10,000 even well above that figure.

Then, exactly how much is capital that we should engage in forex trading? Well, if the problem still highly dependent nominal amount of ability, willingness and "guts" the trader concerned is just that I always recommend, especially for beginner traders, Invest only "for which you are willing to lose" or at least, invest the money that actually "unemployed". Why? Yeah definitely suapaya-apesnya if you are forced to experience a margin call, your losses are not to interfere with your daily activities ...) Lah, you certainly do not want to stress because of loss or when trading bener MC right? )

Well, now let's take the following simple classification of clay in the amount of trading capital and how we should adjust our trading strategies with the magnitude of these capital

Capital $ 0

Eh? The Capital beneerrr ... zero?
Yups, bener ... Gak be surprised friend ... Many traders who start trading with a capital of $ 0 alias without capital is how come? Yeah could ajah ... Want to know how?
You can take advantage of free capital that may be offered by several brokers. Or ... you can follow the virtual trading contest with prizes of capital / deposits at the broker concerned. If you win the contest and then can develop a trading capital of the gift, why not?

Anyway, for those of you who are still in the learning phase of trading, I strongly recommend to use the first virtual account that is usually provided free of charge by the broker. Well, this also means that you start learning to trade with zero capital is important not to learn trading techniques used, after mayan steady, and then do the deposit.

Capital $ 100 - $ 250

With a capital of $ 100 - $ 250 you can start by using a mini account. Most importantly, adjust your transaction lot. Usually recommended to use about 0.1 lot to keep your margin strength.

Scalping strategy, although it is more risky but often used by traders with a total investment of this range. Or, for traders who have extra patience, can also use the strategy of swingers trading, provided that notice of the power margin remains relatively limited.

Capital 1,000 - $ 5,000

With a capital of the range of $ 1000 - $ 5000 you can be more free to choose the trading strategy you will use. Generally, a trader with an investment of this magnitude would choose to become day traders or traders swingers. You can also start trading with a standard account.

For those traders who choose the automatic trading, with a range of capital also will be free to use the Expert Advisor.

Capital above $ 50,000

With a capital of this, you will be "spoiled" by the broker. Hehehe ...

Usually does a variety of additional facilities will be provided by the broker for traders who invest over $ 50,000. For example, you can ask for extra control to smooth transaction, or if you are trading through IB, you will get special attention from the IB business so as to deposit or withdrawal, you need not bother, simply call or message ... cool yah? Hehehe ...

Ok ... The amount of capital it would not want to affect the psychology meets these demands in the trade. Iyalah ... if for example we are trading with a free capital, you will tend to think ... "well capital ilang gak papa, anyway dapet free" Surely it would be different it feels if you are trading with a significant amount of capital the amount of ... for example by 10 times your monthly salary) you must Prudent policies will tend to be more careful alias in conducting open position. Iyalah ... love it ... if capital sampe ilang tuh painstakingly nyarinya

Anyway, in my opinion anyway ... regardless of the amount of capital you invest in forex trading, you should still always apply prudent. Do not just hit aja deh ... Remember, the day gini loh ... hard for the money ...) So ... Always trade with rational considerations. Agree?

Can Forex Trading To learn, particularly on technical indicators, we need an indicator, where the function of indicators is to determine a trend in Forex Trading, one of which is Linear Regression can help you in understanding the trend with an image as a curve that follows the development of a price movement. Where the concept is almost the same as when when we use the Moving Average (MA).

Linear Regression is a statistical data that can predict the future prices of past data, typically used where the current price movement is experiencing an increase or decrease very significantly. Linear Regression in the history of mathematics was first developed by Gauss which experts in mathematics in 1809. Then Gilbert Raff use these principles to trading shares for the first time.

The concept used in calculating a movement of an inflation in which prices of basic needs, it can be applied in measuring the price trend based on the graph. Gilbert Raff said that he used the Regression Channel to calculate accurately the price movements of stocks, bonds, mutual funds and commodities.

Where the formula or the formula of Linear Regression is as follows;

x = The current time period / period of time when this
n = The total number of time periods / number of periods of time

In a simple calculation of the Linear Regression, Raff change in the form of relationship with the price that is:

Linear Regression = Smooth Moving Average Price = (PRICE, Z)
Price = Price today
Z = Moving Average period 1

Functions of the Linear Regression
Linear regression is a technical indicator to measure a trend based on statistical methods. The resulting parabolic shape similar to the Moving Average where the methods used are also similar.

Look at the example image above, the chart of AUD / USD 1H time frame. Where was added also an indicator of Linear Regresion. Looks really similar to the MA. We can take a new position when seen through the Linear Regresion prices.

The method used in linear regression is as follows:

The movement of the indicator shows the trend of rising (bullish) or down (bearish).
If the price penetrates it will form a new trend.
If a price trend up or down, the angle of the linear regression will also show an up or down movement of the base. At the time the price has to rise or fall we can expect higher yields more of these indicators. Linear regression is a model of relationship between two variables with linear equations. For example, the equation of weight and height of a man.

Thus the function is similar to the Moving Average, but the calculations by using statistical methods. Any points that described the linear regression indicator will leave a trail which is described as a whole in the form of curves. This indicator is useful for:

Predicting future prices based on current price movements.
Determine price trends. It's easy to apply where the current price of Linear Regression penetrate from below and above there will be a bullish pattern (trend up).
As a determinant Support & Ressistence. The points that I mentioned as a New Trend in the previous chart can be described as the last is Suppot point (lower limit of the price movement) and also Ressisten (upper limit of the price movement). In Forex Trading we can measure the correlation between price (Y) and time (X).
The advantages and disadvantages of these indicators as follows:

Pros:
This indicator is very easy to use in measuring a price trend. With the help of a MA line 1 then we will be able to conclude that if the Linear Regression line through the price it will form a new trend.

Disadvantages:
The nature of this indicator is Lagging or too late: if this indicator is used alone without any help from other indicators, then we do not know when prices will stop rising or fall. We recommend that you add indicators such as RSI or Stochastic oscillator to anticipate this.

Hopefully the above explanation can help you in forex trading. Good luck in reaching Profit.