General Questions

Question: When does the forex market open?

Answer: The forex market is open almost all of the time! It opens on Sunday night around 21:00 GMT and closes on Friday afternoon around 21:00 GMT. Forex traders can initiate trades at any time between Sunday and Friday.

Question: What is a Pip?

Answer: PIP stands for Percentage In Point. It is equal to 1/100 of 1 percent, or .0001.
In forex, currency prices are typically quoted to the fourth decimal. For example, if the EUR/USD pair moves from 1.3410 to 1.3420 it has moved by 10 pips. If the EUR/USD increases by 1 full cent in value (from 1.3410 to 1.3510), it has increased by 100 pips.

Question: What is a ‘spread’?

Answer: The spread is the difference between the bid and the ask price. The bid price is the rate at which you can sell a currency pair, and the ask price the rate at which you can buy a currency pair. With us, you can trade a large range of instruments with flexible spreads. That gives you a greater degree of price transparency on your trades.

Question: What are the most commonly traded currencies in the FX markets?

Answer: The most often traded or ‘liquid’ currencies are those of countries with stable governments, respected central banks, and low inflation. Today, over 85% of all daily transactions involve trading of the major currencies, which include the US Dollar (USD), Japanese Yen (JPY), Euro (EUR), British Pound (GBP), Swiss Franc (CHF), Canadian Dollar (CAD), and the Australian Dollar (AUD).

Question: What determines the price of a currency?

Answer: A number of political and economic factors, mainly inflation, interest rates, and political stability affect currencies. Sometimes government themselves enter the forex market to modify the value of their currencies.

 
To do this, they either flood the market with the currency in order to try and lower price, or they buy as much currency as possible hoping to raise the price. They usually implement such policies through central banks. Although these factors, along with large market orders may cause volatility in currency prices, the size of the market makes it impossible for anyone to corner it.

 

Question: How is currency traded?

Answer: All currency trading is traded in amounts called LOTS. Each lot has a different amount of currency. For example; a Swiss Franc lot has 125,000 Swiss Francs in it. A trader does not buy lots in order to buy and sell it or trade it. A trader opens a margin account, enabling him the right to trade it.

Question: Am I buying actual currencies when I trade?

Answer: No. With your margin account, you are buying the right to trade one “lot” of a currency. Each lot equals a different amount of currency, depending on the currency being traded verses the US dollar.

Question: How Much do Currency Traders Make?

Answer: Currency traders are a bit of a rare breed. What they make can vary widely depending on what type of trader they are and how much experience they have. In general, how much money you make depends on what currencies you trade, what leverage you use, and how much capital you have.

Question: How often should I trade?

Answer: The truth is you can trade as often as you like as long as your funds allow you to. Realistically though, you should only trade when the markets allow you to. Only when the market looks right and adheres to the rules of your system should you enter. This may mean you enter the market 10 times in a day or not at all for a number of days. Remember, trading more often does not mean more money, it is more likely to mean the exact opposite.

Question: How long should I hold my positions for?

Answer: You should hold your positions until your profit target has been reached or your stop loss hit. You may exit a position because you need to free up funds to enter a new position of greater potential than the one you’re already in. Every trade you enter should have a strict plan and you should only exit when your plan has been achieved.

Question: How do I know how much to put on each trade?

Answer: This is one of the most important elements of trading. As a general rule you should never risk more than 5% of your capital on any one trade, we suggest you only risk 1%-2%. To work out how much to risk you should do this simple calculation before entering:

Let’s say you have a £5000 account and are willing to risk 5%…
5% of £5000 = £250
You’re about to enter a trade with a 20 pip stop loss
£250 divided by 20 = £12.50 
so, you would be trading at £12.50 a pip
In lot sizes, this would be just over 1 standard lot – with 1 lot equating to around £10 per point.

Question: What makes DGFX so different?

Answer: Compared to standard candlestick or bar charts with DGFX you get EVERYTHING in ONE GRID.

You get ALL four (and if you need) FIVE time frames in one chart.
 
You do not have to be clicking on the tabs to bring up the separate time frames for your chart. No more switching from 1 minute to 5 minute, to 1 hour and then back to 1 minute.
 
You get to see all of this in a Grid system, with each CHART laid out as a ‘LANE’ in the Grid.
 
Think of New York City.  It’s laid out as a grid, with Avenues and Streets making up the structure.  Think of the DGFX software as one big Manhattan and the Time frames are those avenues running parallel to one another.  
 
You see small highways of information all before your eyes; you do not have to be clicking your mouse pad and flitting from one time period to another.  All the algorithms are set up and pre-programmed into the grid ready for use.

Question: Is this similar to the Money Map Software?

Answer:  DGFX is very similar to Money Maps.  However, it’s a much cleaner and more sophisticated version.

With Money Maps you see many false signals – I should know I traded it for 3 years.

With my DGFX software, when prices change from long bias to short bias or vice versa this has to move through and beyond all prices/market levels – all practical chaos.

To get from one side to another, it has to trudge through all the clutter i.e. prices Moving Averages, colour bands etc. If you’re indicating a direction, you are showing that the averages have reorganised themselves, in order to flourish true directional momentum.

Then price falls through green triangle – Long to Short.  This is NOT a SIGNAL.

Turning from short to long with crossing up through a red triangle doesn’t make it a buy.

The lag is the key, and the price averages of ALL triangles/Fib MA’s must reset/reorganise before it throws out a signal.

With Money Maps, as soon as the price passes up through the red box – it turns green and the same when it falls below the green box, it immediately turns RED.  Are you kidding me?
If the price just falls either side of these red&green boxes it is throwing you different signals as and when the price decides to trade above or below those colour boxes.

It’s too fickle and it is not reliable enough to take on these markets every single day.  With DGFX it’s a simple process and it tells you when momentum is turning on each time frame, by way of the boxes catching FIRE!  That is your signal to get ready and be prepared to trade, because something could be happening very soon on the grid.

The triangles are better than squares, as it’s just a little more prompting in telling your brain what direction you need to be trading.  I have also added on another time frame – ‘4 hour’ lane.

This helps massively with two of our signals, so you will learn as you go through the prices if, oh I should say ‘when’ you decide to purchase the data-feed software.

Question: What can I reasonably expect as an annual or monthly return % wise (difficult to answer I know however an indication would be helpful, I understand all the risk is my own decision)?

Answer:Again VERY difficult to answer.

However, typically we look to trade on AVERAGE once a day.

Sometimes we may trade twice or three times in a day, then other times we may go 2-3 days without a trade at all, which is normal.

On each trade we look to make 8-12 pips with a risk (stop loss) of around the same, so the risk reward is roughly 1:1. This means we risk as much as we look to profit.

On average 7.5 out of out of 10 trades should expire for a profit. This means the success rate would be at 75%.

If you are the kind of person to place £10 per point for each trade and over a month you place 20 trades.

Each winning trade you bank 20 pips and each losing trade you lose the same which is 20 pips.

This means we would lose 5 trades (25% losing) and win 15 trades (75% success rate).
This would be 15 trades x 20 pips = 300 pips.

Then £10 on each trade, so that would be 20 x 300 = £3000 profit!

For the losses this would be 5 trades x 20 pips = 100 pips. Then £10 on each trade, that would be £10 x 100 = £1,000 LOSS

So, overall the NET profit would be £3,000-£1,000 = £2,000!

If you place £10 a point on each trade, on average this is what you would expect to earn.
I must note, this is a ROUGH estimate.

This can vary, because with 100 traders you can get 100 different outcomes.

Some people close trades early…

For several reasons:

They may bank only 15 pips instead of 20 (as they don’t want to let the trade carry on through fear of losing the profit they made so far) and then maybe let a losing trade run and moving stop loss; so instead of losing a maximum of 20 pips on a LOSING trade, they could end up being 30 or even 40 pips.

This is when not following the rules will LOSE you money.

If you stick to a RIGID stop-loss system and have FAITH in the Strike Rate, you should do well.

It is possible to make exceedingly high amounts when you go beyond £10 and up to £20 per point!

As a high-net client, eventually you are looking to rise beyond £20, to possibly £50 and maybe as high as £100 per point.