Lesson learnt - shifting stop loss

Lesson learnt.

One, never shift stop loss level to my favour till the target 1 level hit.
Shift stop loss level to my favour at the conversion level. Never too near market range trade.

-1.6430 level stop loss 1.6460 level.
Target 1 1.6400
target 2 1.6370
Target 3 1.6340 level also hit.

-1.6430 level stop loss 1.6480 level.
Target1 1.6380 level.
Target 2 1.6330 level hit.

No matter what resistance level you use. It is important to stick to rule.

A well written trading plan to assist you.

Forex Market Comparison

Trade Around the ClockThe forex market is a near-seamless 24-hour market. Subject to available liquidity, FXCM offers trading from Sunday, starting after 5:15 PM EST, until Friday, 4PM, EST (FXCM Client Service is available 24/7). With the ability to trade around the clock, currency traders have the advantage of customizing their own trading schedule; they can usually get in or out of the market at any time without waiting for an opening bell or encountering a market gap. While trading stocks after usual market hours is possible, very often that possibility is negated by a lack of order flow or a drastic widening of the bid-ask spread.

foreign exchange

The Foreign Exchange Desk was established alongside the Money Market desk and is one of the oldest desks in the market catering to the broking needs of the interbank market. We deliver both the global reach and the local knowledge that are keys to the success of our clients in currency markets.Recognized for strategic consultation, excellent execution, superior technology and informative research, clients stay with KASB for invaluable insight in foreign exchange trading. KASB's Foreign Exchange Desk meets client requirements in the spot and forward markets.KASB research publishes fundamental research covering the currency markets in Pakistan which is made available to clients via Bloomberg, Reuters, or the Internet.

-= Nominal and real exchange rates =-

The nominal exchange rate e is the price in foreign currency of one unit of a domestic currency.The RER is only a theoretical ideal. In practice, there are many foreign currencies and price level values to take into consideration. Correspondingly, the model calculations become increasingly more complex. Furthermore, the model is based on purchasing power parity (PPP), which implies a constant RER. The empirical determination of a constant RER value could never be realised, due to limitations on data collection. PPP would imply that the RER is the rate at which an organization can trade goods and services of one economy (e.g. country) for those of another. For example, if the price of a good increases 10% in the UK, and the Japanese currency simultaneously appreciates 10% against the UK currency, then the price of the good remains constant for someone in Japan. The people in the UK, however, would still have to deal with the 10% increase in domestic prices. It is also worth mentioning that government-enacted tariffs can affect the actual rate of exchange, helping to reduce price pressures. PPP appears to hold only in the long term (3–5 years) when prices eventually correct towards parity.More recent approaches in modelling the RER employ a set of macroeconomic variables, such as relative productivity and the real interest rate differential.

Exchange Rates

Rules Of Exchange Rate :-

In finance, the exchange rates (also known as the foreign-exchange rate, forex rate or FX rate) between two currencies specifies how much one currency is worth in terms of the other. It is the value of a foreign nation’s currency in terms of the home nation’s currency.[1] For example an exchange rate of 102 Japanese yen (JPY, ¥) to the United States dollar (USD, $) means that JPY 102 is worth the same as USD 1. The foreign exchange market is one of the largest markets in the world. By some estimates, about 3.2 trillion USD worth of currency changes hands every day.The spot exchange rate refers to the current exchange rate. The forward exchange rate refers to an exchange rate that is quoted and traded today but for delivery and payment on a specific future date.

Bilateral vs. effective exchange rate

Bilateral exchange rate involves a currency pair, while effective exchange rate is weighted average of a basket of foreign currencies, and it can be viewed as an overall measure of the country's external competitiveness. A nominal effective exchange rate (NEER) is weighted with trade weights. a real effective exchange rate (REER) adjust NEER by appropriate foreign price level and deflates by the home country price level. Compared to NEER, a GDP weighted effective exchange rate might be more appropriate considering the global investment phenomenon

Technical analysis in foreign exchange market

Historically, the technical analysis in the open markets used six variables on certain timeframes of exchange rate data: opening price, peak, trough, closing, volume and general interest.Technical analysis consists firstly, in a variety of technical studies that can be interpreted into determining where the market is headed or into forecasting the sell or buy signals. The common element of the technical studies is price/time chart that identifies the trends of currency prices.The difference between technical analysis and fundamental analysis is that technical analysis ignores the fundamental factors and applies only to the action of the price in a market.Technical analysis is based on the evaluation and instinctive feel in predicting the future trends as to inferring the future price changes from those of the recent past. As technical analysts say, these trends repeat themselves regularly and lead to similar behavior. Some of them predict price decline, while other signal it’s time to buy.Some charting methods can predict the size of possible gains or decreases. Unlike the fundamental analysis that evaluates the general market condition, the technical analysis is used to guide trading decisions and to predict the best time to buy, according to X-Trade Brokers Romania.Thus, there are three principles that vector the technical analysis - The market absorbs all factors that influence the prices- Prices depend on trends- history repeats itself: the charts reveals price patterns in the data