Planning trading  to be a successful trader you must have a plan for each trading session that you do and you should be confident and consistent with the plan you created. Trading Plan consists of: - the position of how you will open the Open Position (OP)-why would you go into the OP Market in - how you can bear the loss if the market suddenly reversed course menetang you - how Target Profit (TP) you need to reach each Open Position. Trend is your friend "follow where the market trend moves when the market trend bullish, buying action (Long) On the contrary,. If the market is bearish, do sell (Short) .. Again! Do not fight the market trend! Against the trend is like people who swim against the current will quickly run out of energy .... In FOREX trading, the energy in question is of course ... the fund or your trading capital.

Forex Trading Secrets And Strategies

Forex trading has many advantages over other types of financial instrument trading, it means involve some minimal risks and pitfalls. However, knowing some of the best forex trading secrets can give an investor an edge while planning forex investment strategies. It's also being aware of the forex trading pitfalls and the latest technology, one will be having the actual tools required in the market to get most returns for initial investment that too with least risks. The strategy you must know ;

• The foremost forex trading secret is to know the basics of forex thoroughly, as it will give you a general idea about the trading system.
• Trade in a system, that has consistently proven to be profitable and has an acceptable drawdown. Such a system would have been backtested and also traded in a period of time to testify that it is profitable. Try getting the details of the float, risk management and examples of exact trades with such results.
• While learning the system, be very clear about the system rules and in case of doubts or queries, consult the author of the system or refer the support forum. Once you know the rules, first trade on a demo account to check whether you can follow the system well or not.
• Apply good money management rules to make sure you can survive and thrive well, in case of any drawdowns.
• Select a system that fits best with your daily routine, for instance some forex trade systems take complete 1 hour daily to trade, like 15 minutes four times a day on average. Hence, also check whether the number of times that system trades, is suitable to you or not.
• Trade patiently and properly, don't over trade, as at times there are no trades for a day and one has to wait till the next day. Also, avoid revenge trading by trading larger trade sizes, in case you had losses in your previous trades.
• It's very important to monitor your progress to know how your system is performing over time, both in terms of returns and drawdowns, and errors that you made while trading.
• If you’re deciding to trade with forex signals, automated forex, or managed forex, do your diligence to ensure that the company is authentic and ethical and can provide you samples of their results, having details of the float, risk management and exact trades which achieved those results. The goal of this website is to help anyone to truly become an expert in online forex trading. By offering necessary information, independent reviews, forex lessons, we sincerely hope that we will reach this goal. If you have any comments, ideas and suggestions, feel free to anytime.
  
  Let's find and get unlimited finance with forex trading.

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Personal Data Verification Marketiva
Once you've finished registering in Marketiva, your next step is MANDATORY to verify the data yourself first.

    Do not start trading in advance over your data in the form of ID card / driving license yet diverivikasi. Because your account will didissable by Marketiva. Verification of data in advance and wait there marketiva approval email.
Once you register, you need to upload the data yourself to verify. Although registration is free, you are only allowed to open one account. You can not withdraw funds before the identification, and there is a chance your account is suspended (frozen) if you are using a computer with the same IP address with other traders. To avoid this immediately verify identity.

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Have you ever been lost in Forex? Some of you might be thinking, how do i get lost in forex?? Let me ask another question. Have you ever open a trade in one direction, after some time open a trade in the opposite direction?

Im sure that happens to all of us, myself included :). That is lost in Forex, where we are unsure of direction of trade. Some people even hedge in the situation.

I have a few tips when you are lost in Forex.

1. If you are lost and dont know which direction to trade, the most important thing is to stop trading and do something else. Go plant a tree or play games. Dont even look at the charts anymore to avoid confusion.

2. Is to take a trading system and put it on multiple time frame. I trade using the same system on 3 timeframe. 15m, 1h, daily. When all three is pointing at the same direction then I trade. If 2 timeframe is pointing at the same direction then i scalp.

3. After sometime, your brain will start to imprint patterns of Forex. Forex has the same pattern over and over again. In our mind, that pattern has been imprinted and it influence our decision making subconsciously. Once you reach that state you will rarely get lost in Forex. You will know the exact time to trade or to get lost (do something else).

I will try to update this blog. Been so long and so busy with new place. As for Forex, USD pairs are going nowhere at the moment with a high probability to go down further. Good luck on your hunt for pips

You can actually tell if someone is new in Forex by the way they count their pips or profit. When people starts forex they count pips. They can have hundreds of pips a day and yet their profit is low. This is due to the low risk reward ratio they have taken.

Once you are older in Forex, you will see the ratio. No point of taking hundreds of pips when the profit is low. So you start to take high risk high return trade. These trades do not give you high pips but the profit margin is high.

That is how money is to be made in Forex. You actually manage your risk and take profit from it. For today as of now, I already taken 3 trades. 2 profit trades and 1 lost trade. My account grows 37%. Not bad for a slow Monday.

For the answer to Forex, once you know it you will feel helpless. No matter how smart or brilliant you are it counts for absolutely nothing here. I have Banking and IT qualification. Did that help me? 2 different qualification did not help me one bit here. Made me want to cry when I found it out.

Hunt pips but count profit. Good Luck

A mechanic has many tools. Each tools with its own usage and purpose. It is only down to intelligence and creativity that separates a good mechanic and a bad one.

Like a mechanic, a trader has many tools as well. Each indicator is a tool for the trader and a combination set of tools with rules is a trading system. A good trader has not 1 but many system. Each system has different purpose. It is down to knowledge and creativity that separates a good trader and a bad one apart from portfolio.

The best time frame to trade is the lower time frame but due to noise and spikes it is difficult to trade usingmost trades lower timeframe. It is the reason why fail in short time frame.

EurUsd has been ranging for the past few days and due to it, has hit my stop loss twice. Being a trend tradercannot trade myself, I just during these ranging period. So I stopped trading and try to make a new trading system using lower time frame to catch these ranging market.

It seems with a new set of tools (not new actually, had not used them for a while), I have manage to create an almost perfect trading system for all time frame but with the target of 15m chart. The only thing that this new system doesnt show is when not to trade which i made up with a new set of rules.

If any of you would like to try the new trading system please leave your email. I will try to get back to you ASAP.

Year 2010 wasn’t as rich on surprises as 2009 and 2008. That’s probably why my last yearly forecast wasn’t as inaccurate as usually. The major surprises (at least for me) were GBP/USD and gold. The former failed to move significantly up or down, while the gold prices stagnated after conquering the new record highs several times. Interest rate increases also have been delayed by the major central banks despite the fact that the economies grew faster then the World Bank forecasted.

Although I’m not a big fan of the forecasts, especially such that try to look as far as one year ahead, I don’t want to break a tradition and offer my own 2011 forecast for the currencies, interest rates, gold and oil — the most important trading instruments (to me). I don’t want you take this forecast close to heart or base your trades on it — it can be quite dangerous.

EUR/USD — looking at the weekly chart of this currency pair makes me think that we are currently at the beginning of the next bullish wave that will mark the next year. Unless some highly improbable long-term bearish breakout occurs. we’ll see the EUR/USD pair heading to the levels above 1.43.

GBP/USD — although the pound was an outsider among the major currencies in 2010 and despite the high probability for it to continue going down in the first half of 2011, overall, the next year may turn out to be positive for this pair. I see a close of the year 2011 above level 1.66 for GBP/USD.

USD/JPY, like all the yen-based pairs, suffered a deep drawdown this year. 2011 will be either very positive for this currency pair or the Japanese economy will take a lot of damage from such a strong national currency. The Bank of Japan will have to take some measures to weaken the yen and USD/JPY will benefit from it. I expect to see this currency pair between 90 and 95 by the end of 2011.

EUR/JPY will rise in 2011 even faster, as the EUR/USD is going to be up (unless some really bad thing happens to one of the Eurozone countries). A jump back to 128–135 range looks like a probable target for the euro-yen pair.

Oil may experience another bullish bubble growth next year. The dynamics of this commodity during the last weeks of 2010 suggest that scenario. If that happens, oil will probably race to its record high near $140 before falling back to its more natural $60–80 range. If we won’t see a new bubble in crude, then I expect a higher range for 2011 — $80-$110.

Gold has found its natural balance level, in my opinion. It will continue rising in 2011 but the process will be much slower than before. To me, it looks like all the big buyers already hold enough gold.

My forecasts on the interest rates weren’t very successful. Influenced by the lack of changes this year, for the year 2011 I also expect almost no rate hikes from the four most important global central banks. There is a small probability that near the end of the next year, the Federal Reserve will raise the rate slightly. Bank of England can also decide to shift the rates up and even do it earlier than the US regulator. ECB and the Bank of Japan will stay with their current rates next year.

By the way, it looks like the majority of the visitors that have participated in our recent poll regarding the EUR/USD year end price have guessed it right. I’m pleased to see such a high level of market perception among my readers :) .

P.S.: No matter how the markets behave next year, I’d like to wish you a lot of success in 2011. Earning profit on Forex is nice but I hope that your personal happiness won’t depend on the moves of some currencies and the decisions of some bureaucrats in the central banks. Happy New Year!

If you have want to comment on this Forex/gold/oil/interest rates forecast for the year 2011, please, feel free to reply using the form below.

Nextpointhost is a hosting company that offers special Forex VPS plans to the traders. They go with both MetaTrader 4 and MetaTrader 5 preinstalled and with more than 100 various free expert advisors (mostly MT4 ones). All VPS hosting plans feature unlimited monthly bandwidth with all the usual advantages (and, unfortunately, disadvantages) of the Windows 2008 server. The price of the cheapest Forex VPS package from them is $25. Other highlights of Nextpointhost include:

* 30 days of money-back guarantee.
* PayPal payments.
* Servers are hosted in Bulgaria.

Doug Schaff developed an interesting cyclical indicator for Forex trading several years ago. In 2008 he’s made it public. He presented a code of the indicator written for TradeStation EasyLanguage. Unfortunately, until now there weren’t any correctly converted versions for MetaTrader. I’ve found several variants of one code, which is neither correct nor full. From today, you can freely download the original Schaff Trend Cycle indicator for MetaTrader from EarnForex.com. The version converted by me has the following features:

* Works properly in MT4 and MT5.
* Calculates the indicator line for all the available bars but doesn’t recalculate old bars each tick.
* Works on any trading instrument and timeframe but is better used with daily charts.
* Doesn’t jump up or down during strong trends; detects the important changes promptly.

You can get the code of the MT5 and MT4 versions or read more info about this complex cyclical oscillator.

If you find any bugs in this MetaTrader indicator or if you want to make a suggestion regarding its functionality, please, use the commentary form below.

Stop-loss is one of the best invention of the financial trading. At the same time it’s also one of the most cursed thing in Forex — how many times was your stop-loss hit just before the trend reversed in the direction of your position? For many traders stop-loss orders are the reason of depression and despair. Unfortunately, not many of them understand that if they didn’t use stop-loss the results would have been even worse.
Recently, I’ve stumbled upon a ”strategy” promoted by some Nigerian trader on one forum. His idea was quite simple — sell USD/JPY on some pivotal levels and don’t set up a stop-loss. His argument — if you have enough margin you can lose only if USD/JPY goes down to 0.00. In his opinion it’s about 8,300 pips now or if you trade 1 mini lot it’s $1/pip, or $8,300 margin required, which is quite normal for a standard Forex account of $10,000. The problem is that for 1 mini lot of USD/JPY 1 pip isn’t equal to $1 — it depends on the current USD/JPY rate. Using the pip value calculator you can easily see how 1 pip value grows as the USD/JPY rate declines; for example, at USD/JPY = 40.00, 1 mini lot pip is $2.50. Of course, such a huge decline on USD/JPY is improbable, but trading without stop-loss you always risk huge to earn small, which eventually eradicates your capital.
So, what’s your experience trading without stop-loss in Forex?

• Yes, it was a nice experience.
• Yes, it was terrible.
• No, it's crazy.
• No, but maybe I'll try.
• What is stop-loss?

EUR/USD rebounded today from an initial decline on speculation that yesterday’s drop was overdone and as demand for a safety waned. Today we had a day rich on a macroeconomic data ahead of holidays. There will be no more economic reports this week. EUR/USD trades now at 1.3375.

Initial jobless claims decreased to 407k last week from the previous week’s revised figure of 441k. The expected value was 434k.

Durable goods orders dropped by 3.3% in the US in October, following an increase by 5.0% a month earlier. The traders expected a growth by 0.2%.

Personal income rose by 0.5% in October from a previous revised value, which was near zero in September, and above forecasts that suggested a rise by 0.4%. Personal spending advanced by 0.4% from a previous reading of 0.3%, while forecasts expected a growth by 0.5%.

University of Michigan sentiment index in its final revision rose to 76.1 in November, while expected value was at 69.5. The indicator was reported at 67.7 in October.

New home sales fell from 308k to 283k in October, while the expected value was at 311k.

Crude oil inventories increased by 1.0 million barrels from the previous week. Total motor gasoline inventories increased by 1.9 million barrels last week. Both are above the upper limit of the average range for this
time of year.

EUR/USD trend: sell.
GBP/USD trend: sell.
USD/JPY trend: buy.
EUR/JPY trend: sell.
GBP/JPY trend: sell.

Floor Pivot Points
Pair	3rd Sup	2nd Sup	1st Sup	Pivot	1st Res	2nd Res	3rd Res
EUR/USD	1.2452	1.2826	1.3037	1.3411	1.3622	1.3996	1.4207
GBP/USD	1.4910	1.5243	1.5417	1.5750	1.5924	1.6257	1.6431
USD/JPY	81.79	82.28	83.19	83.68	84.59	85.08	85.99
EUR/JPY	104.87	107.59	109.50	112.22	114.13	116.85	118.76
GBP/JPY	126.54	128.68	129.90	132.04	133.26	135.40	136.62

Woodie’s Pivot Points
Pair	2nd Sup	1st Sup	Pivot	1st Res	2nd Res
EUR/USD	1.2785	1.2956	1.3370	1.3541	1.3955
GBP/USD	1.5203	1.5338	1.5710	1.5845	1.6217
USD/JPY	82.39	83.39	83.79	84.79	85.19
EUR/JPY	107.39	109.10	112.02	113.73	116.65
GBP/JPY	128.45	129.44	131.81	132.80	135.17

Camarilla Pivot Points
Pair	4th Sup	3rd Sup	2nd Sup	1st Sup	1st Res	2nd Res	3rd Res	4th Res
EUR/USD	1.2926	1.3087	1.3141	1.3194	1.3302	1.3355	1.3409	1.3570
GBP/USD	1.5312	1.5452	1.5498	1.5545	1.5637	1.5684	1.5730	1.5870
USD/JPY	83.32	83.71	83.83	83.96	84.22	84.35	84.48	84.86
EUR/JPY	108.86	110.14	110.56	110.99	111.83	112.26	112.68	113.96
GBP/JPY	129.27	130.20	130.50	130.81	131.43	131.74	132.04	132.97

Tom DeMark’s Pivot Points
Pair	EUR/USD	GBP/USD	USD/JPY	EUR/JPY	GBP/JPY
Resistance	1.3517	1.5837	84.84	113.18	134.33
Support	1.2932	1.5330	83.44	108.55	130.97

Fibonacci Retracement Levels
Pairs	EUR/USD	GBP/USD	USD/JPY	EUR/JPY	GBP/JPY
100.0%	1.3785	1.6083	84.18	114.94	134.18
61.8%	1.3562	1.5889	83.65	113.17	132.90
50.0%	1.3493	1.5830	83.48	112.63	132.50
38.2%	1.3423	1.5770	83.31	112.08	132.10
23.6%	1.3338	1.5696	83.11	111.40	131.61
0.0%	1.3200	1.5576	82.78	110.31	130.82

EUR/USD jumped today on hopes that tomorrow’s meeting of the European Central Bank’s Governing Council will help to find solution to European debt crisis. Most analysts, though, aren’t convinced that any significant change of the situation will follow the meeting and think that the rally is short-lived. US economic reports were generally close to forecast values, though employment and construction spending reports showed significantly better figure than was expected. EUR/USD trades currently at 1.3126.

ADP employment rate showed an increase by 93k from October to November, while analysts promised an increase by 70k. From September to October an increase was by 82k, revised from 43k.

US nonfarm productivity increased at a 2.3% annual rate during the third quarter of 2010, revised from a previous reading of 1.9%. Forecasts was near the actual figure, promising a 2.4% growth.

ISM PMI index posted a small drop to 56.6 in November from 56.9 in October. The actual value was near the median forecast of 56.4.

Total construction spending grew by 0.7% in October, the same rate of growth as in September (which was revised from 0.5%). The reading frustrated analysts who expected a decline by 0.3%.

Crude oil inventories increased by 1.1 million barrels and total motor gasoline inventories increased by 0.6 million barrels last week.

EUR/USD rose today, fell after the European Central Bank kept the interest rates unchanged and later advanced again as claims for unemployment benefits in the US unexpectedly increased. EUR/USD currently trades at 1.3181 after it reached the intraday low of 1.3060.

Initial jobless claims in the US increased from 410k to 436k, more than a 425k growth that forecasts have promised.

Pending Home Sales Index, a forward-looking indicator, gained 10.4% in October. That’s much better than the previous reading of a 1.8% decline and the expected value of a 0.7% drop.

The euro extended its rally against the dollar for a third day as nonfarm payrolls were far lower than expected and unemployment rate unexpectedly increased. Factory orders also were worse than forecast. EUR/USD currency pair currently trades near 1.3342.

Nonfarm payrolls report showed that US employers added 39k jobs in November. The reading was a way lower than 172k in the October and the expected value of 143k. Unemployment rate increased to 9.8%, while it was expected to remain unchanged at 9.6%

ISM services grew to 55.0 in November from 54.3 in October. An expected value was 54.7.

Factory orders dropped 0.9% in October, following an increase by 3.0% in September. Analysts predicted a decrease by 0.7%.

One could call Technical Analysis of the Currency Market by Boris Schlossberg a pure technical analysis book, but it wouldn’t be a completely correct definition. The book also talks about the psychology of trading and risk management; an introduction to the Forex market (FX 101 chapter) is also made for the very new traders. My overall feeling after reading this book is rather mixed — of course, it gives a lot of insights regarding technical analysis and entry/exit strategies that can be used by Forex traders, but it’s also quite biased and suggests very dangerous (in terms of risk/reward) systems.

It’s a medium-length book with a lot of chart examples and some support tables. Although the amount of continuous text may seem overwhelming at times (for a trading book), it’s not that difficult to read. The book states the following theses:

* Forex is an excellent market for a technical trader.
* Despite what it seems, charts aren’t completely random; they are based on human behavior and thus are affected by certain patterns.
* Prices can either range or trend — your trading behavior should depend on what type fits your personality better.
* It’s not a good idea to trade trend-following strategy in ranging markets.
* Candlestick charts offer the most informative representation of the market situation.
* Fibonacci levels aren’t “magic numbers” but can help in trading.
* Bollinger Bands indicator is one of the best for trend trading.
* “Cut your losses short and let your profits run” isn’t for everyone.
* Knowing yourself is very important to determine your risk/reward strategy.

I can’t say that I’ve really enjoyed reading Technical Analysis of the Currency Market. It has a lot of things that I don’t agree with and also lists a lot of data (strategies mostly), which I am not interested in. In spite of these facts, I can assure you that it’s not a bad trading book and had the following advantages:

* Several interesting indicator-based strategies.
* No difficult calculations — the book will be easy to understand even by the newbies.
* Good notion about the different personalities fitting different approaches to the market.
* Promotes organized approach to trading.

Yes, Boris Schlossberg does a great job with this book, but I probably wouldn’t read it again if I was to return back in time. Even without considering the fact that I knew almost 90% of information covered there, it still has some disadvantages:

* Some factual mistakes (margin calculation, status of NZD, etc.)
* Promotion of rather dangerous risk/reward strategies.
* Mixing risk management with position sizing.
* Shown price pattern examples are very far-fetched.
* No good examples of trade positions gone wrong.

To conclude the review I must say that Technical Analysis of the Currency Market is a great introduction to the technical analysis and can be a good book for the Forex trader’s education, but you shouldn’t limit your study to this book — it’s almost useless (and even somewhat dangerous) if being relied upon as the only book. Some other books on trading would be really helpful after or before reading this one.

When trading in the Forex market it’s very important to understand the time zones correctly and to be able to calculate the difference between your time zone and the timezone of your trading server and the timezone of the specific trading session. Some MetaTrader expert advisors (that are created to trade during a certain time or a trading session) require trader to set an input parameter for the time zone difference. Unfortunately, I see that many traders simply don’t understand how time zones work and how to calculate the differences.

First, I recommend reading the Wikipedia article on time zones. Second, when you need to set an input parameter for the time zone difference, you need to know which difference is that — either between server’s time zone and some specific time zone (e.g. GMT or EST) or between server’s time zone and yours. When it’s not stated anywhere, usually, it can be easily understood from the context — the latter (difference between server’s and your time zones) is used quite rarely, only when some data should be aligned with your own local time (for example, when you want the pivot points for your local trading session). The difference between your server’s zone and some specific time zone is a more popular requirement — it’s used in the EAs that were programmed to position trades at some specific time.

Now, you have to find out the time zone values of the zones involved in your differences. Of course, you’ll need to find your server’s time. In MetaTrader that’s quite easy — just switch to an hourly timeframe and check the time of the last candle and compare it with GMT. For example, if your MetaTrader platform shows that the last H1 candle was formed at 10:xx and GMT is 11:xx then the time zone of your server is GMT-1. Unfortunately, MetaTrader (neither MT4 nor MT5) doesn’t allow retrieving the server’s time zone for the inductors, scripts or EAs automatically.

Your own time zone should be known to you. If you know its name but don’t know how much is it relative to GMT, then just google it or look it up in Wikipedia you’ll see. If you want to know that for some specific time zone (which is different from yours) you can follow the same procedure.

OK, you know all the necessary time zone values, now you have to set up the differences — so, how do you do it? For example, your server’s time zone is GMT-1, your own time zone is PST (Pacific Standard Time, which is GMT-8) and you also want your EA to trade at EST (Eastern Standard Time, which is GMT-5). So, the difference between server’s time and the specific time zone’s time (EST) will be -1 — (-5) = -1 + 5 = 4. The difference between server’s time and yours: -1 — (-8) = -1 + 8 = 7.

No, this post isn’t about profiting from Forex by using the ”hedging” (grid) strategies. Two weeks ago I’ve asked my readers about their thoughts on trading Forex without stop-loss and, while I still believe that it’s generally a very bad idea, there is at least one case when trading without a stop-loss is very important — hedging.

Forex market isn’t only a good place to make money, it’s also a perfect financial instrument to hedge your currency risks. For example, you live in Germany but earn your salary in US dollars. This situation makes your income very vulnerable to EUR/USD fluctuations — a rise from 1.2000 to 1.4000 would mean a drop in the euro-value of your income by 14.3%, while a drop from 1.2000 to 1.1000 would mean a rise by 9.1%. Your dollar savings would also be affected by the change of EUR/USD rate (unless, of course, you aren’t going to spend them in US).

Many foreign contractors, transnational businessmen and outsource workers often get themselves into situations similar to the one above. Some do nothing about that, some try to wait for some “best” rate to exchange their earnings. But there’s a better solution for all those people — Forex hedging. Actually, it’s quite easy to hedge your currency risk with any online retail Forex broker. All you have to do is to open an account, make a deposit and go long on the currency pair X/Y, where X is the currency you spend in (the euro or EUR in the above example) and Y is the currency you earn in (the dollar or USD in the above example) or go short on the currency Y/X.

So, if someone is earning dollars and spending euros, he should be long on EUR/USD. This way, if euro will rise against the greenback, the purchasing power of the usual earnings of the person will still go down, but it will be compensated by the profit from his long EUR/USD position with the Forex broker. In the opposite case, if euro will decline against the USD, the purchasing power of the earnings will rise, but there will be a loss in the Forex trading at the same moment. Of course, one shouldn’t use any stop-loss or take-profit orders in hedging.

Let’s get to a more detailed example with the resident of Japan getting their income in US dollars. Their expected monthly income is $10,000. The current USD/JPY rate is 83.00. That means that their income converted to yen is ¥830,000 at this moment. They don’t want lose if the USD/JPY rate decreases. That’s why they also open a short USD/JPY position with a size of 0.1 standard lot (1 mini-lot). 1 pip of a mini-lot position in USD/JPY is equals ¥100 exactly. So, if by the end of month (when the person receives $10,000 payment) USD/JPY drops to 82.00, they lose nothing because their 100-pip profit (or ¥10,000) fully compensates the drop in the yen-denominated payment from ¥830,000 to ¥820,000. If USD/JPY goes up to 84.00 the gain in purchasing power of $10,000 (from ¥830,000 to ¥840,000) will be zeroed by the Forex loss of 100 pips (the same ¥10,000).

Such position should be closed at the end of month to book the profit/loss and reopened immediately. The person can stop reopening only if they move out of Japan and/or stop receiving dollar payments. If the payment amount changes the position size should be adjusted proportionally.

It’s quite obvious that neither stop-loss, nor take-profit aren’t required in this hedging set-up — the aim here is not to earn money from Forex trading, but to prevent any loss from your income currency depreciation. Of course, one should always remember that this strategy protects from the loss connected with currency exchange rates but also prevents any profits connected with the same reason. This strategy can be carried out with any leverage, but the very low leverage or no leverage at all is recommended because you don’t want to get a margin call on your hedging position. As always, your Forex broker should be reliable and support prompt withdrawals for this strategy to work effectively.