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Spreads vary drastically from
broker to broker some can be three times as much
as a competing broker, it is very important that you don’t
loose site of the fact
that the size of the spread makes a huge impact on your
income over a years
worth of trading. I have used many brokers over the years
and I found the
spreads at
www.Interbankfx.com to be very reasonable.
Another important reason why I like Interbankfx.com is
because they allow you
to use micro lots. Micro lots are positions of $1000 each
giving you a profit/loss
of 0.10c per pip and only require you to have $10 in your
account. This will allow
you to calculate and risk an exact 2% of your account no
matter how small your
account is. We will cover this in far more detail in the
money management
section.
Which ever broker you choose to
trade with remember you will always have
trouble if you try to trade around important news events,
that’s just the way it is
and it’s not the brokers fault. You should never have the
need to trade the news
with the systems in this course, the way I teach you to
trade in this course is
very low stress and you have plenty of time to execute your
trades.
In the United States a broker
should be registered as a Futures Commission
Merchant (FCM) with the Commodity Futures Trading Commission
(CFTC) and a
NFA member. The CFTC and NFA were made to protect the public
against fraud,
manipulation, and abusive trade practices. Remember to check
this if you are at
all unsure about a broker you are planning on using.
Charts
All brokers usually supply you with some sort of charting
software and a live data
feed, charts come in three forms. OHLC, Line or Candlestick,
we will be focusing
on OHLC charts in the 10 Minute Forex Wealth Builder
examples because I find it
makes it easier to spot the setup we will be looking for,
but you are welcome to
use candlestick charts if you wish.
The Japanese began using technical analysis to trade rice in
the 17th century.
While this early version of technical analysis was different
from the US version
initiated by Charles Dow around 1900, many of the guiding
principles were very
similar.
OHLC charts are made up of bars very similar to candlesticks,
each bar
represents a time period. For example on a 4 hour chart each
bar represents 4
hours of price action showing the open, high, low and close
of that time period.
Below is a diagram of the make up of a bar from a bar chart.
HIGH
CLOSE
  
OPEN
LOW
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