By john R Harker
It was not long ago that the only way to make money in the Forex market was through a lot of hard work. Firstly was the education required to understand the ins and outs of the trading the world most liquid market. This would include getting to know the glossary of Forex terms and acronyms such as lots, pips, spreads and leverage. Then you would need to learn technical analysis i.e. the various tools, charts, patterns and indicators which help determine the likely movements of a currency pair. It would also require gaining a good grasp of risk and money management in order to protect your trading capital. You them of course would need to learn how to place trade and place stop losses and set profit limits. It is not surprising that the only people who made money were the professional Forex traders with years of trading experience.
Nowadays life is getting a lot easier for aspiring Forex traders as a result of the growth of automatic Forex trading software. A good Forex robot should be capable of making steady profits by emulating the trading strategy of top Forex traders. The early Forex trading robots left much to be desired. Most of these Forex robots built for the retail Forex market were a boon to Forex brokers as they were almost guaranteed to lose money. They were generally built on the assumption that the market traded in only one way. A robot built for a trending market would do well when the market was in the midst of s big price move. When the market moved into a steadier ranging pattern, such robots would be useless, if not dangerous.
The new adaptive Forex robots coming on to the market are showing encouraging performance. They are trading more like professional trader who know when it is safe to trade and when it is unsafe. They are able to adjust their trading strategies to exploit a particular market pattern. If these robots prove themselves, the education and trading required to become a good trader may no longer be as necessary as in the past. This is not to suggest that getting a good Forex education would not be beneficial, but for someone with limited time it may not be feasible.
There are now a large number of Forex robots to choose from and making the right selection can be difficult. Most Forex robots review sites are simply trying to sell a range of robots and few offer any form of independent analysis. Most simply copy the information off the Forex robots sales page. Likewise it is important not to be taken in by the back tested results shown of these site. Backtesting is a nutritiously unreliable at best and at worst is subject to manipulation to show falsely positive results.
It is recommended that any robot be full tested on a demo account for some time before committing real money to a trading account. You can also look for an independent testing site which test robots in real time.
If you are new to Forex Trading you should think about using a Forex Robot to help ease you into the market to help with your early trades. It will get you some profits while you learn about Forex. See the top selling robots on test at http://www.forexrobotstest.com
Article Source: http://EzineArticles.com/?expert=John_R_Harker http://EzineArticles.com/?Forex-Trading-Is-Becoming-Easier-With-Robots&id=2377670
Saturday, July 11, 2009
Forex Trading - What Are The Best Technical Indicators To Use?
by James Woolley
Most people who trade the forex markets use technical analysis to help them decide when to enter and exit positions. Indeed without this facility, many traders would be completely clueless. So which indicators are most effective, and which ones do the professional traders use?
Well the short answer is that there is no combination of technical indicators that is better than all the others. The fact is that the holy grail of trading simply does not exist. No system will generate profits all of the time, whichever technical indicators it uses.
The key to successful trading is to devise a system that is able to generate trading positions that place the odds significantly in your favour so that in the long run you make more money than you lose. Technical indicators are just a tool to help you achieve this objective.
Now you may think that the more technical indicators you use, the greater your chances of success, but this is definitely not the case. You will often find that the more indicators you use, the more confused you will get because there will always be some indicators that give conflicting signals.
I used to load my charts with indicators when I first started out, but found that ultimately it just confused matters and often led to me not taking any positions at all. Also several of these indicators will just tell you the same thing anyway, so you're better off just sticking to a couple of indicators at most.
Indeed many professional forex traders either just trade price action alone or they use basic tools such as support and resistance lines and fibonacci analysis. They leave all the common technical indicators such as RSI, MACD and Stochastics to the amateur traders.
I myself used to use lots of technical indicators but now I simply identify the trend on the daily chart and then use exponential moving averages to enter positions on the 4 hour charts. I've tried adding other indicators but I always found that they weren't needed because most of the time they would put me off a perfectly good trade, rather than back it up.
So my own advice would be to minimise the number of technical indicators you have on your charts because they simply aren't needed. The most profitable systems are often the most basic ones, and providing you apply sound money management rules (cutting your losses early and letting your winners run), then even the most basic of systems can be made profitable.
Click here to read a review of Forex Megadroid and to read a full Collective2 review.
Article Source: http://www.articledashboard.com/Article/Forex-Trading---What-Are-The-Best-Technical-Indicators-To-Use?/847002
Most people who trade the forex markets use technical analysis to help them decide when to enter and exit positions. Indeed without this facility, many traders would be completely clueless. So which indicators are most effective, and which ones do the professional traders use?
Well the short answer is that there is no combination of technical indicators that is better than all the others. The fact is that the holy grail of trading simply does not exist. No system will generate profits all of the time, whichever technical indicators it uses.
The key to successful trading is to devise a system that is able to generate trading positions that place the odds significantly in your favour so that in the long run you make more money than you lose. Technical indicators are just a tool to help you achieve this objective.
Now you may think that the more technical indicators you use, the greater your chances of success, but this is definitely not the case. You will often find that the more indicators you use, the more confused you will get because there will always be some indicators that give conflicting signals.
I used to load my charts with indicators when I first started out, but found that ultimately it just confused matters and often led to me not taking any positions at all. Also several of these indicators will just tell you the same thing anyway, so you're better off just sticking to a couple of indicators at most.
Indeed many professional forex traders either just trade price action alone or they use basic tools such as support and resistance lines and fibonacci analysis. They leave all the common technical indicators such as RSI, MACD and Stochastics to the amateur traders.
I myself used to use lots of technical indicators but now I simply identify the trend on the daily chart and then use exponential moving averages to enter positions on the 4 hour charts. I've tried adding other indicators but I always found that they weren't needed because most of the time they would put me off a perfectly good trade, rather than back it up.
So my own advice would be to minimise the number of technical indicators you have on your charts because they simply aren't needed. The most profitable systems are often the most basic ones, and providing you apply sound money management rules (cutting your losses early and letting your winners run), then even the most basic of systems can be made profitable.
Click here to read a review of Forex Megadroid and to read a full Collective2 review.
Article Source: http://www.articledashboard.com/Article/Forex-Trading---What-Are-The-Best-Technical-Indicators-To-Use?/847002
Let Me Show You How You Can Automate Your Forex Income
by Nick Hall
Want to earn more from currency trading? Fed up of complex forex trend following and analyzing algorithmic graphs and charts?
Do not lose your heart. Feel happy that you are reading the right article that is going to change your future in the forex market. This article will brief you about how can you automate your forex income with the help of forex robots. You will also understand the benefits of these robots and after reading through this content it is sure that you shall be one among the profitable traders in currency trading.
One of the ways to avoid losing your hard spent money in the forex market is to go for automated forex trading systems. These systems make use of the complex neural network and prediction algorithms and take the responsibility of trading on your behalf.
Also known as expert advisors, they ensure you profit from the trade. The software needs to be installed in your Meta trader platform and from then on, it takes control and makes highly efficient decisions on your behalf. You can configure the system with the capital amount you ought to invest in the trade. You can also select the type of trade you wish to carry on from the list of choices in the automated system.
These systems are non-human systems that are resistant to simple errors and emotions. They can work all through the day and can produce accurate results and surveys state that automated forex systems result in almost 80% successful trade.
A forex course that literally changed my life is called Triad Trading Formula. You can read more about Triad Trading Formula here.
I suggest you check out Triad Trading Formula site. Learn more about forex by clicking here Triad Trading Formula
Article Source: http://www.articlesnatch.com
Want to earn more from currency trading? Fed up of complex forex trend following and analyzing algorithmic graphs and charts?
Do not lose your heart. Feel happy that you are reading the right article that is going to change your future in the forex market. This article will brief you about how can you automate your forex income with the help of forex robots. You will also understand the benefits of these robots and after reading through this content it is sure that you shall be one among the profitable traders in currency trading.
One of the ways to avoid losing your hard spent money in the forex market is to go for automated forex trading systems. These systems make use of the complex neural network and prediction algorithms and take the responsibility of trading on your behalf.
Also known as expert advisors, they ensure you profit from the trade. The software needs to be installed in your Meta trader platform and from then on, it takes control and makes highly efficient decisions on your behalf. You can configure the system with the capital amount you ought to invest in the trade. You can also select the type of trade you wish to carry on from the list of choices in the automated system.
These systems are non-human systems that are resistant to simple errors and emotions. They can work all through the day and can produce accurate results and surveys state that automated forex systems result in almost 80% successful trade.
A forex course that literally changed my life is called Triad Trading Formula. You can read more about Triad Trading Formula here.
I suggest you check out Triad Trading Formula site. Learn more about forex by clicking here Triad Trading Formula
Article Source: http://www.articlesnatch.com
Professional Forex Trading From Home - A Checklist For Making Huge Gains
Professional Forex Trading From Home - A Checklist For Making Huge Gains
By kelly Price
If you want to become a professional Forex trader from home and make a triple digit income then the good news is you can but you must be aware that 95% of traders fail to make money, not because they don't have the potential to win but because they get the wrong education and have the wrong mindset. Let's look at both in relation to currency trading success...
If you follow the checklist below, you will be on the road to a great second or even life changing income.
1. There are No Short Cuts get Ready to Work
You have seen Forex Expert Advisors promising to make you rich with no effort but use one and you will lose money. There are no short cuts to Forex trading success. You have to accept responsibility for your actions and learn skills and if you do this, your rewards in terms of your effort are enormous.
2. A Simple Logical System
You don't need to complicate your trading method, you only need a simple system.
Your trading system needs to be based on trading the reality of price change and not predicting it! Many traders think prediction is the way to make money but that's just hoping and guessing and wont get you far in Forex trading or life. Trade the reality of price change as you see it on a chart and base your strategy on breakout trading; its simple, effective and very profitable.
Make sure you base your method on swing trading or long term trend following and not scalping or day trading. If you trade within a day, you will make no money as all volatility is random. You see vendors selling systems that say you can win in short time periods but they never have a track record of real gains so avoid them and trade long term and hit the big profitable trends.
3. Money Management and Discipline
The real keys to success but most traders take to much risk and lack discipline.
To win at Forex you must take losses, keep them small and trade with discipline until you hit a home run. Most traders believe that weeks of losses won't happen to them but it happens to the best traders and you need to stay on course in these periods until you hit profits again.
If you want to win at Forex trading long term take your short term losses cheerfully!
If you let your ego get involved or respond to your emotions, you will deviate from your system and if you don't trade your system with discipline you don't have one!
You can Achieve Success
Forex trading success is not about being clever, complicated or working hard, it's about working smart, using a simple system and getting the right mindset to trade with discipline.
Most traders lose due to the wrong mindset, not because they cant learn a method anyone can, so focus on getting the right mindset above all else and you can achieve currency trading success.
NEW! 2 X FREE ESSENTIAL TRADER PDFS
ESSENTIAL FOREX TRADING COURSE
For free 2 x trading Pdf's, with 50 of pages of essential info on Profitable Forex Trading visit our website at: http://www.learncurrencytradingonline.com
Article Source: http://www.free-articles-zone.com
By kelly Price
If you want to become a professional Forex trader from home and make a triple digit income then the good news is you can but you must be aware that 95% of traders fail to make money, not because they don't have the potential to win but because they get the wrong education and have the wrong mindset. Let's look at both in relation to currency trading success...
If you follow the checklist below, you will be on the road to a great second or even life changing income.
1. There are No Short Cuts get Ready to Work
You have seen Forex Expert Advisors promising to make you rich with no effort but use one and you will lose money. There are no short cuts to Forex trading success. You have to accept responsibility for your actions and learn skills and if you do this, your rewards in terms of your effort are enormous.
2. A Simple Logical System
You don't need to complicate your trading method, you only need a simple system.
Your trading system needs to be based on trading the reality of price change and not predicting it! Many traders think prediction is the way to make money but that's just hoping and guessing and wont get you far in Forex trading or life. Trade the reality of price change as you see it on a chart and base your strategy on breakout trading; its simple, effective and very profitable.
Make sure you base your method on swing trading or long term trend following and not scalping or day trading. If you trade within a day, you will make no money as all volatility is random. You see vendors selling systems that say you can win in short time periods but they never have a track record of real gains so avoid them and trade long term and hit the big profitable trends.
3. Money Management and Discipline
The real keys to success but most traders take to much risk and lack discipline.
To win at Forex you must take losses, keep them small and trade with discipline until you hit a home run. Most traders believe that weeks of losses won't happen to them but it happens to the best traders and you need to stay on course in these periods until you hit profits again.
If you want to win at Forex trading long term take your short term losses cheerfully!
If you let your ego get involved or respond to your emotions, you will deviate from your system and if you don't trade your system with discipline you don't have one!
You can Achieve Success
Forex trading success is not about being clever, complicated or working hard, it's about working smart, using a simple system and getting the right mindset to trade with discipline.
Most traders lose due to the wrong mindset, not because they cant learn a method anyone can, so focus on getting the right mindset above all else and you can achieve currency trading success.
NEW! 2 X FREE ESSENTIAL TRADER PDFS
ESSENTIAL FOREX TRADING COURSE
For free 2 x trading Pdf's, with 50 of pages of essential info on Profitable Forex Trading visit our website at: http://www.learncurrencytradingonline.com
Article Source: http://www.free-articles-zone.com
My Expert Advice To Forex Beginners
By: Jason Hamilton
Description : The thousands of individuals who have decided to enter the Forex market should know that they should educate themselves first before they start. It is important to know the basics of Forex trading to get into profit, but this knowledge is no guarantee. You need to know more than the basics to even have a fighting chance of being successful.
There are many methods to learn Forex trading. You can join online services, enroll in a Forex trading school, attend seminars and workshops, purchase an course online, join a trading group, or visit your local book store or library.
From experience it is always best for novice traders to get training from a mentor or join a Forex trading team. You are going to benefit from experienced instructors who are already trading Forex in real time. You can compare notes, trends, charts, buy / sell decisions and more. You can check yourself against other people who have more experience than you. In this way, you are familiarized with real market trading. You are given the chance to see the actual processes and decisions which you can later employ.
In the end you will come up with your own strategy and trading methodology that works for you and is suited for your own risk level, temperament, trading goals and trading experience.
Here are a couple of guidelines that new traders can follow to achieve success in the Forex markets.
You need to know proper charting and mapping. Most Forex brokers will supply you with a charting platform, but you need to know how those charts work and how to interpret them. You will need to be able to read Forex market charts.
Discipline yourself. Traders who are disciplined by strictly following their developed methods even when losing period's strike, have a greater chance of making it in the long run.
Update your knowledge continuously. Successful traders are studying the Forex market night and day and are always looking for new advice and education all the time.
Trade in a team, this helps making decisions easier and could be the #1 reason you find success. If you are trading in a highly specialized team, you can measure yourself and your trading decisions against them and keep each other accountable for your trades.
Focus on what you do and do not jump around. This is probably the single biggest mistake that traders make. They jump from one opportunity and from one trading system to the next. They never stick with a single method and learn to trade that system well.
There are thousands of ways to trade the market with an infinite number of ways to combine signals, charts and trading methodologies. But do not try to trade and test each one of the thousands out there, stick with one that works and work it inside out until you can do it blindfolded. Once you are so familiar with it that you can do it in your sleep, you will start to learn when conditions for your system are right. You should be able to trade your chosen system with confidence and profit.
Article Source : http://www.talkinmince.com/
Author Resource : Jason Hamilton has been successfully trading the Forex market since 2002. He recently reviewed the popular Forex trading robot, which can be read at: Fap Turbo Forex
Description : The thousands of individuals who have decided to enter the Forex market should know that they should educate themselves first before they start. It is important to know the basics of Forex trading to get into profit, but this knowledge is no guarantee. You need to know more than the basics to even have a fighting chance of being successful.
There are many methods to learn Forex trading. You can join online services, enroll in a Forex trading school, attend seminars and workshops, purchase an course online, join a trading group, or visit your local book store or library.
From experience it is always best for novice traders to get training from a mentor or join a Forex trading team. You are going to benefit from experienced instructors who are already trading Forex in real time. You can compare notes, trends, charts, buy / sell decisions and more. You can check yourself against other people who have more experience than you. In this way, you are familiarized with real market trading. You are given the chance to see the actual processes and decisions which you can later employ.
In the end you will come up with your own strategy and trading methodology that works for you and is suited for your own risk level, temperament, trading goals and trading experience.
Here are a couple of guidelines that new traders can follow to achieve success in the Forex markets.
You need to know proper charting and mapping. Most Forex brokers will supply you with a charting platform, but you need to know how those charts work and how to interpret them. You will need to be able to read Forex market charts.
Discipline yourself. Traders who are disciplined by strictly following their developed methods even when losing period's strike, have a greater chance of making it in the long run.
Update your knowledge continuously. Successful traders are studying the Forex market night and day and are always looking for new advice and education all the time.
Trade in a team, this helps making decisions easier and could be the #1 reason you find success. If you are trading in a highly specialized team, you can measure yourself and your trading decisions against them and keep each other accountable for your trades.
Focus on what you do and do not jump around. This is probably the single biggest mistake that traders make. They jump from one opportunity and from one trading system to the next. They never stick with a single method and learn to trade that system well.
There are thousands of ways to trade the market with an infinite number of ways to combine signals, charts and trading methodologies. But do not try to trade and test each one of the thousands out there, stick with one that works and work it inside out until you can do it blindfolded. Once you are so familiar with it that you can do it in your sleep, you will start to learn when conditions for your system are right. You should be able to trade your chosen system with confidence and profit.
Article Source : http://www.talkinmince.com/
Author Resource : Jason Hamilton has been successfully trading the Forex market since 2002. He recently reviewed the popular Forex trading robot, which can be read at: Fap Turbo Forex
How Do I Start Forex Trading- Things to Do When Trading Forex
Author: Tony Smith
Forex trading is a great opportunity to make a lot of money. There are a few things you should do when trading, which is why you're asking yourself "How do I start Forex trading". So, what I'm going to do is share with you some things you should do when trading forex.
That way, you'll be able to make a lot of money in the FX market.
The first thing you should do is familiarize yourself with forex trading lingo and terms. Also, make sure you understand them. This will help you become more successful in the forex market.
The next thing you should do is set up a demo account. With a demo account, you'll be able to practice trading forex. It's a great place for you to start. You won't be risking any of your money. This will allow you to practice until you're comfortable with the forex trading process.
After practicing, you should jump into trading. Set yourself up an account so that you can start forex trading. You should also get yourself a Forex robot. This is something that not a lot of people do who ask themselves, "how do I start Forex trading".
It's mistake that they don't get a robot either. Because the robot will help you find various opportunities that you wouldn't have found on your own. Once you've found the opportunities, you will be able to capitalize on it to make a nice profit.
Now that you know the answer to your question, "how do I start forex trading", go and and get started. Be sure you set up a plan, have a system, and practice. Once you do these things, you'll become a great forex trader and make a lot of money in the market.
Article Source: http://www.articlesbase.com/currency-trading-articles/how-do-i-start-forex-trading-things-to-do-when-trading-forex-763212.html
About the Author:
To see a video on how to make money Forex trading, click on the link below:
Make Money Forex Trading
Forex trading is a great opportunity to make a lot of money. There are a few things you should do when trading, which is why you're asking yourself "How do I start Forex trading". So, what I'm going to do is share with you some things you should do when trading forex.
That way, you'll be able to make a lot of money in the FX market.
The first thing you should do is familiarize yourself with forex trading lingo and terms. Also, make sure you understand them. This will help you become more successful in the forex market.
The next thing you should do is set up a demo account. With a demo account, you'll be able to practice trading forex. It's a great place for you to start. You won't be risking any of your money. This will allow you to practice until you're comfortable with the forex trading process.
After practicing, you should jump into trading. Set yourself up an account so that you can start forex trading. You should also get yourself a Forex robot. This is something that not a lot of people do who ask themselves, "how do I start Forex trading".
It's mistake that they don't get a robot either. Because the robot will help you find various opportunities that you wouldn't have found on your own. Once you've found the opportunities, you will be able to capitalize on it to make a nice profit.
Now that you know the answer to your question, "how do I start forex trading", go and and get started. Be sure you set up a plan, have a system, and practice. Once you do these things, you'll become a great forex trader and make a lot of money in the market.
Article Source: http://www.articlesbase.com/currency-trading-articles/how-do-i-start-forex-trading-things-to-do-when-trading-forex-763212.html
About the Author:
To see a video on how to make money Forex trading, click on the link below:
Make Money Forex Trading
An introduction to Forex Money Management
Forex trading money management is one of the most imperative things you must learn before you really start up with live trades. The Forex money management principles discussed here would further teach you how to keep yourself away from the expensive mistakes many fresh forex traders make, frequently to the degree that they lose their full investment on the first few trades. Psychology is actually the most key factor to money management when it comes to forex trading. You have to be clever to separate yourself from any touching affection you might have got to your money. This is not extremely simple to do, but it works and it could be really done.
First and foremost, you have to mull over leverage and risk. It is sensible that you by no means risk more than two percent of your account stability on any forex trade. However, some go beyond and permit for as much as ten percent, but in no way more than that. This gives you the capability to endure market fluctuations in forex, and if the trade goes poor, you yet have money to try again. You must never function under the hypothesis, which you would profit from each trade. You must as well plan for losses. Therefore, most forex traders would tell you that the most excellent thing to do is to keep your gains big and your losses less. Develop your forex trading strategy around this idea.
Keep a proper track of your gains and losses. Keeping correct and detailed records of your forex account commotion would permit you to see whether or not the forex trading strategy is working, or if it requires being rebuilt. Never go blindly into trading without a means to keep follow of results. You would surely lose all of your money and never know why it happened.
Finally, it is extremely advisable that you first carry out a strategy on a forex demo account. Nearly all forex brokers provide a virtual demo account upon which you make trades in real-time, but with fantasy money, so nothing is risked. This is the most excellent way to test a strategy before you put your real money on the line.
About the Author
Uma is a Copywriter of Forex Currency Trading .
She written many articles in various topics such as forex day trading,forex trading system.
For more information : contact her at 1worldforex1@gmail.com
Article Source:
http://www.articletrader.com/finance/investing/an-introduction-to-forex-money-management.html
First and foremost, you have to mull over leverage and risk. It is sensible that you by no means risk more than two percent of your account stability on any forex trade. However, some go beyond and permit for as much as ten percent, but in no way more than that. This gives you the capability to endure market fluctuations in forex, and if the trade goes poor, you yet have money to try again. You must never function under the hypothesis, which you would profit from each trade. You must as well plan for losses. Therefore, most forex traders would tell you that the most excellent thing to do is to keep your gains big and your losses less. Develop your forex trading strategy around this idea.
Keep a proper track of your gains and losses. Keeping correct and detailed records of your forex account commotion would permit you to see whether or not the forex trading strategy is working, or if it requires being rebuilt. Never go blindly into trading without a means to keep follow of results. You would surely lose all of your money and never know why it happened.
Finally, it is extremely advisable that you first carry out a strategy on a forex demo account. Nearly all forex brokers provide a virtual demo account upon which you make trades in real-time, but with fantasy money, so nothing is risked. This is the most excellent way to test a strategy before you put your real money on the line.
About the Author
Uma is a Copywriter of Forex Currency Trading .
She written many articles in various topics such as forex day trading,forex trading system.
For more information : contact her at 1worldforex1@gmail.com
Article Source:
http://www.articletrader.com/finance/investing/an-introduction-to-forex-money-management.html
Forex Trading System - Let Your Trading System Spell Your Business Success
by Pete Miguel
The field of forex can be real demanding and ultimately competitive, which is why you need to adapt a forex trading system to help you survive in this business. Most people craft their own system while some utilize existing methods and change it according to their own need.
Aside from beating the demands of the business, having a forex trading system also allows you to effectively keep yourself updated with recent changes. It ensures that you stay on top or even ahead of the game. Having a forex trading system also allows you more stability because you can easily manage risks and tap opportunities that you can use to broaden your profits. But before you can achieve a real successful system in the forex world, here are the important factors you need to consider.
1. Current Standing - Your forex trading system should have a healthy balance between risks and guaranteed opportunities. You cannot have too many risks but you are not always going to find guaranteed opportunities, so it's good to have and manage to scout a piece of both. To do this, your forex trading system should mesh well with your current business standing. It should not be too bold for what you are capable of now or too undermining of your actual ability to play in the forex market.
2. Actual Knowledge - The length of your forex trading system's flexibility and genius will depend on how well you actually know your market. The more experienced you are, the more flexible your system will be because you have always known how to adapt amidst changes in the business climate. No matter how great your system is, what would always matter more is how well you can navigate through the market and find a way to make your system work to your advantage.
3. Forex Partners - Through the course of currency trading, you will acquire reliable partners who may even be the ones to initiate a trade if they need one. You should definitely take care of these people and learn to profile them in the process. By profiling, this simply means that you need to familiarize yourself with how they trade their currencies so you can predict how new changes in the market may affect how they interact with you. The expanse of your forex trading system may also depend on how many partners you have. The more you have, the more elaborate your trading system might need to be. Also, you can eventually create an interconnected system which works across your forex partners.
4. Capital Investment - A forex trading system may not simply be a list of methods you can use to guide you throughout the market. At times, it may ask you to get upgraded tools to help you through the forex business. It is good to have a clear grasp of just how much you can allow yourself to shell off to update your forex business so you can lay the grounds for a more efficient forex trading system.
Finally, here's a website to give you an unfair advantage over other traders and always keep you on top of the forex market: Online Forex News Trading.
Also, learn the honest facts and truth about different forex brokers from the best online forex review scam website today.
Article Source: http://www.articlesnatch.com
The field of forex can be real demanding and ultimately competitive, which is why you need to adapt a forex trading system to help you survive in this business. Most people craft their own system while some utilize existing methods and change it according to their own need.
Aside from beating the demands of the business, having a forex trading system also allows you to effectively keep yourself updated with recent changes. It ensures that you stay on top or even ahead of the game. Having a forex trading system also allows you more stability because you can easily manage risks and tap opportunities that you can use to broaden your profits. But before you can achieve a real successful system in the forex world, here are the important factors you need to consider.
1. Current Standing - Your forex trading system should have a healthy balance between risks and guaranteed opportunities. You cannot have too many risks but you are not always going to find guaranteed opportunities, so it's good to have and manage to scout a piece of both. To do this, your forex trading system should mesh well with your current business standing. It should not be too bold for what you are capable of now or too undermining of your actual ability to play in the forex market.
2. Actual Knowledge - The length of your forex trading system's flexibility and genius will depend on how well you actually know your market. The more experienced you are, the more flexible your system will be because you have always known how to adapt amidst changes in the business climate. No matter how great your system is, what would always matter more is how well you can navigate through the market and find a way to make your system work to your advantage.
3. Forex Partners - Through the course of currency trading, you will acquire reliable partners who may even be the ones to initiate a trade if they need one. You should definitely take care of these people and learn to profile them in the process. By profiling, this simply means that you need to familiarize yourself with how they trade their currencies so you can predict how new changes in the market may affect how they interact with you. The expanse of your forex trading system may also depend on how many partners you have. The more you have, the more elaborate your trading system might need to be. Also, you can eventually create an interconnected system which works across your forex partners.
4. Capital Investment - A forex trading system may not simply be a list of methods you can use to guide you throughout the market. At times, it may ask you to get upgraded tools to help you through the forex business. It is good to have a clear grasp of just how much you can allow yourself to shell off to update your forex business so you can lay the grounds for a more efficient forex trading system.
Finally, here's a website to give you an unfair advantage over other traders and always keep you on top of the forex market: Online Forex News Trading.
Also, learn the honest facts and truth about different forex brokers from the best online forex review scam website today.
Article Source: http://www.articlesnatch.com
The key to Wealth Building- Forex Broker by fxreport
When it comes to learning forex trading there are many things that you need to consider first. So before you start trading you should write a list of exactly what you need to learn, such as forex trading terminology, brokers, charting, fundamentals, trading plan, creating rules, money management and mindset.
Today we will look into finding the Best Forex Broker and what steps you need to take to find the best forex broker in the market. So when it comes to researching brokers here is a great guide that you should use. Also the CFD FX REPORT recently reviewed all the brokers using the below strategies to come up with who they believe to be the best forex broker.What are the Spreads:The term spread is used to calculate the pips, is the difference between the price that currency can be bought and the price at which it can be sold at any specific point in time.
Forex brokers don't charge commission they charge a spread so the lower the spread the better. What Tools and Research do they offer?FOREX brokers offer many different trading methods for their clients just like brokers in other markets do. These different trading methods often show real-time charts, technical analysis tools, real-time news and data, and even support for the various trading systems. Basically, you will want to find a broker who will give you everything that you need to succeed. So by using a Forex Broker that offers a great charting package will save you money from going out and purchasing charting packages.
What leverage do they offer?Leverage is a key necessity in FOREX trading because the price deviations are just set at fractions of a cent. Today you are able to get leverage that ranges from 1:50 up to 1:400. So this means every dollar you put in can equal $50 up to $400 of market exposure. If you are new to trading make sure you start out on the lower leverage and slowly increase your way up. Otherwise one bad trade can wipe you out. What Account Types do they Offer:Many CFD FX REPORT today offer two types of accounts, which are known as the mini account and standard account. The minimum with the mini account is normally $200 and the standard account is $1000.
It is highly advisable for new traders to start out with the mini account, to gain knowledge and confidence before moving onto the standard account. Today most brokers also offer demo accounts which is a great way to test out your trading strategies.
The CFD FX REPORT is a real time trading tool that offers clients free trading reports, with trading ideas, stock market and forex market education as well helping them with. Also if you are looking for a Forex Broker, then feel free to visit our broker section as we recently reviewed all the forex brokers and have found the best on the market.
Article Source: http://www.articlesnatch.com
Today we will look into finding the Best Forex Broker and what steps you need to take to find the best forex broker in the market. So when it comes to researching brokers here is a great guide that you should use. Also the CFD FX REPORT recently reviewed all the brokers using the below strategies to come up with who they believe to be the best forex broker.What are the Spreads:The term spread is used to calculate the pips, is the difference between the price that currency can be bought and the price at which it can be sold at any specific point in time.
Forex brokers don't charge commission they charge a spread so the lower the spread the better. What Tools and Research do they offer?FOREX brokers offer many different trading methods for their clients just like brokers in other markets do. These different trading methods often show real-time charts, technical analysis tools, real-time news and data, and even support for the various trading systems. Basically, you will want to find a broker who will give you everything that you need to succeed. So by using a Forex Broker that offers a great charting package will save you money from going out and purchasing charting packages.
What leverage do they offer?Leverage is a key necessity in FOREX trading because the price deviations are just set at fractions of a cent. Today you are able to get leverage that ranges from 1:50 up to 1:400. So this means every dollar you put in can equal $50 up to $400 of market exposure. If you are new to trading make sure you start out on the lower leverage and slowly increase your way up. Otherwise one bad trade can wipe you out. What Account Types do they Offer:Many CFD FX REPORT today offer two types of accounts, which are known as the mini account and standard account. The minimum with the mini account is normally $200 and the standard account is $1000.
It is highly advisable for new traders to start out with the mini account, to gain knowledge and confidence before moving onto the standard account. Today most brokers also offer demo accounts which is a great way to test out your trading strategies.
The CFD FX REPORT is a real time trading tool that offers clients free trading reports, with trading ideas, stock market and forex market education as well helping them with. Also if you are looking for a Forex Broker, then feel free to visit our broker section as we recently reviewed all the forex brokers and have found the best on the market.
Article Source: http://www.articlesnatch.com
Genuine online trading FOREX
You can get tons of online trading FOREX on the Internet but which one is the really genuine online trading FOREX? Investing your money on the wrong online trading FOREX and your hard earned money will be gone. They are a lot of frauds on internet these days and we must be extra careful when selecting an online trading FOREX.
Once you’re sure that it is a genuine online trading FOREX, you must evaluate how good are their offer. Do they have hidden costs? Do they provide technical support? Are they teaching you the techniques and strategies of trading FOREX online for free? These are all the important questions you need to ask yourself before selecting a great and genuine online trading FOREX. If possible, find a genuine online trading platform that you can immediately register, deposit the margins of the deal and start running.
If possible, find an online FOREX trading where you do not need to download any soft wares. This type of soft wares will take you time to download and you need to spend more time learning its functions and features. Find an online FOREX which will provide you with sufficient tools once you’re registered. You also need to check for any hidden costs. Look whether there is any commission charged on trading and on your profit withdrawals. Find a FOREX trading platform which has a competitive spreads. The spread can go as low as 3 pips.
Choose your FOREX platform wisely or you’ll lose your money and time. Some online trading FOREX have hidden costs that are quite costly if you’re not careful. Worst, you’ll take days or even weeks to learn about their soft wares and features if you choose the wrong online trading FOREX. You need to determine what features and functions genuine online trading FOREX offer before putting your money inside.
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Easy forex is an online trading platform gives lots of free valuable tools. You can start trading instantly at a very low cost. However trading forex involves risks, easy forex will not be responsible for the losses incurred by forex traders.
Visit online forex trading or go to http://genuineforextrading.com for more information
Source: http://www.articletrader.com
Once you’re sure that it is a genuine online trading FOREX, you must evaluate how good are their offer. Do they have hidden costs? Do they provide technical support? Are they teaching you the techniques and strategies of trading FOREX online for free? These are all the important questions you need to ask yourself before selecting a great and genuine online trading FOREX. If possible, find a genuine online trading platform that you can immediately register, deposit the margins of the deal and start running.
If possible, find an online FOREX trading where you do not need to download any soft wares. This type of soft wares will take you time to download and you need to spend more time learning its functions and features. Find an online FOREX which will provide you with sufficient tools once you’re registered. You also need to check for any hidden costs. Look whether there is any commission charged on trading and on your profit withdrawals. Find a FOREX trading platform which has a competitive spreads. The spread can go as low as 3 pips.
Choose your FOREX platform wisely or you’ll lose your money and time. Some online trading FOREX have hidden costs that are quite costly if you’re not careful. Worst, you’ll take days or even weeks to learn about their soft wares and features if you choose the wrong online trading FOREX. You need to determine what features and functions genuine online trading FOREX offer before putting your money inside.
--
Easy forex is an online trading platform gives lots of free valuable tools. You can start trading instantly at a very low cost. However trading forex involves risks, easy forex will not be responsible for the losses incurred by forex traders.
Visit online forex trading or go to http://genuineforextrading.com for more information
Source: http://www.articletrader.com
Forex forum and forex chat sites: the place to go for all your forex information needs
by Alice Campbell
Since the proliferation of the Internet, online forums and chat sites which specialize in different topics have been the first stop for those who are looking for specific answers to their questions. For example, if you are new to the foreign exchange or forex industry, the best place to ask your market-related questions as a novice are forex forums and forex chat sites. The good thing about these types of websites is that you can get a direct answer to your question from other participants in the forums or chat sites. So what is it about the foreign exchange market which attracts a lot of investors, no matter what the economic climate is? What are the benefits of getting involved in the foreign exchange market? Read on to find out.
The basic definition of foreign exchange or forex is simultaneously purchasing one currency and selling another. One example is when you buy the European currency or Euro while at the same time selling the US dollar. So what type of information can you get from forex forums? For example, when you visit a forex chat site, you will learn that the most traded currencies include the US dollar, Euro, Japanese yen, Pound sterling, the Swiss franc, the Australian, Canadian, Hong Kong and New Zealand dollar, as well as the Mexican peso and the Norwegain krone.
The other information that you can learn from forex forums, for example, include posts about forex signal services. Post about some of the recommended forex software, forex brokers, as well as forex products and services can also be obtained from these sites. How about information on forex for beginners? Those who are just starting out in the market can learn about the basics of trading. As a beginner, you can also get advice about the common newbie mistakes that you should avoid. Next, for forex chat services, the main advantage is that you can get instant replies from other participants about the forex-related inquiries that you have.
Now that you have a basic idea about the information that you can get from forex forum and forex chat sites, here is a quick list of the advantages when trading in the foreign exchange market. First, it is a highly liquid, multi-trillion dollar market. Second, the forex market gives a trader or investor good leverage, which simply means that you can make a significant amount of profit while at the same time minimizing the risks on your investment. More importantly, the rising or falling of the foreign exchange market will not greatly affect your trading investment. In other words, whether a pair of currency is on an upward or downward trend, there is still a chance to generate profit for your investment. All in all, forex forums and forex chat rooms are a great site to visit so that you can get direct answers to any inquiries that you may have about the foreign exchange market.
Are you looking for the ultimate forex broker guide forex forum? Check out our site to get a hold of the best forex forum and live chat room forex chat for all your forex information needs!
Article Source: http://www.articlesnatch.com
Since the proliferation of the Internet, online forums and chat sites which specialize in different topics have been the first stop for those who are looking for specific answers to their questions. For example, if you are new to the foreign exchange or forex industry, the best place to ask your market-related questions as a novice are forex forums and forex chat sites. The good thing about these types of websites is that you can get a direct answer to your question from other participants in the forums or chat sites. So what is it about the foreign exchange market which attracts a lot of investors, no matter what the economic climate is? What are the benefits of getting involved in the foreign exchange market? Read on to find out.
The basic definition of foreign exchange or forex is simultaneously purchasing one currency and selling another. One example is when you buy the European currency or Euro while at the same time selling the US dollar. So what type of information can you get from forex forums? For example, when you visit a forex chat site, you will learn that the most traded currencies include the US dollar, Euro, Japanese yen, Pound sterling, the Swiss franc, the Australian, Canadian, Hong Kong and New Zealand dollar, as well as the Mexican peso and the Norwegain krone.
The other information that you can learn from forex forums, for example, include posts about forex signal services. Post about some of the recommended forex software, forex brokers, as well as forex products and services can also be obtained from these sites. How about information on forex for beginners? Those who are just starting out in the market can learn about the basics of trading. As a beginner, you can also get advice about the common newbie mistakes that you should avoid. Next, for forex chat services, the main advantage is that you can get instant replies from other participants about the forex-related inquiries that you have.
Now that you have a basic idea about the information that you can get from forex forum and forex chat sites, here is a quick list of the advantages when trading in the foreign exchange market. First, it is a highly liquid, multi-trillion dollar market. Second, the forex market gives a trader or investor good leverage, which simply means that you can make a significant amount of profit while at the same time minimizing the risks on your investment. More importantly, the rising or falling of the foreign exchange market will not greatly affect your trading investment. In other words, whether a pair of currency is on an upward or downward trend, there is still a chance to generate profit for your investment. All in all, forex forums and forex chat rooms are a great site to visit so that you can get direct answers to any inquiries that you may have about the foreign exchange market.
Are you looking for the ultimate forex broker guide forex forum? Check out our site to get a hold of the best forex forum and live chat room forex chat for all your forex information needs!
Article Source: http://www.articlesnatch.com
Understanding Forex Statistics
Author: Forex Training
Once you become somewhat familiar with how the forex market works, and you understand to a point what is involved in trading on the Foreign Exchange Market, you would want to start to gauge market trends in order to profit from your business ventures on the open market.
The name of the game is statistics, and the first rule is that you must be aware there is no such thing as a sure thing on the forex market. While you can never be 100% sure at any given time of the next move that will be made on the market as a whole, being able to read statistics and interpret them will place you ahead of the pack in regards to "guessing" what will happen next.
Forex trading is a lot like gambling. If you can keep track of the cards that have already been played, you are more informed, statistically, regarding what is likely to be dealt next, meaning you can place a bet with greater insight than someone who has no clue what has already been played. With the forex market, if you have information as to what has already occurred over the past few days, months, or even years, you are again placed in a better position to more logically conclude what will happen next. You simply learn the pattern and follow it to the end, reaping the financial rewards.
Charts And Chartists
Wait, did you think you were going to have to research and map out the market's past all by yourself? Of course not! There are people who get paid to do that sort of work. They monitor the market hourly, daily, weekly, monthly, and yearly so that they can provide big-time traders with the same knowledge mentioned before. The more a trading company knows about the market, the more money they can make.
The best part of this is that you have access to the same information as these VIP clients. Chartists, who are essentially market analysts that publish their findings in easy to read charts, produce what is referred to as a candlestick charts. These charts are basically a combination of a line graph and a bar graph that show the trend of various stocks, indexes, or other interests over a specified period of time. Therefore, you can easily determine if the currency is on an uptrend or if it is taking a downturn, when the last major change occurred, and how long it is predicted that the currency pair will continue on the current path.
If your broker does not supply you with these charts, then you should easily be able to draw them yourself with the modern day charting software or trading platform that you get from your broker. These software platforms can draw most charts for you by entering a couple of parameters and viewing the result.
It is recommended however that you learn at least the basics of charting and statistics before you start trading live.
Article Source: http://www.articlesbase.com/finance-articles/understanding-forex-statistics-406154.html
About the Author:
It is crucial that you get a forex training course before you start risking your money on the forex market.
Once you become somewhat familiar with how the forex market works, and you understand to a point what is involved in trading on the Foreign Exchange Market, you would want to start to gauge market trends in order to profit from your business ventures on the open market.
The name of the game is statistics, and the first rule is that you must be aware there is no such thing as a sure thing on the forex market. While you can never be 100% sure at any given time of the next move that will be made on the market as a whole, being able to read statistics and interpret them will place you ahead of the pack in regards to "guessing" what will happen next.
Forex trading is a lot like gambling. If you can keep track of the cards that have already been played, you are more informed, statistically, regarding what is likely to be dealt next, meaning you can place a bet with greater insight than someone who has no clue what has already been played. With the forex market, if you have information as to what has already occurred over the past few days, months, or even years, you are again placed in a better position to more logically conclude what will happen next. You simply learn the pattern and follow it to the end, reaping the financial rewards.
Charts And Chartists
Wait, did you think you were going to have to research and map out the market's past all by yourself? Of course not! There are people who get paid to do that sort of work. They monitor the market hourly, daily, weekly, monthly, and yearly so that they can provide big-time traders with the same knowledge mentioned before. The more a trading company knows about the market, the more money they can make.
The best part of this is that you have access to the same information as these VIP clients. Chartists, who are essentially market analysts that publish their findings in easy to read charts, produce what is referred to as a candlestick charts. These charts are basically a combination of a line graph and a bar graph that show the trend of various stocks, indexes, or other interests over a specified period of time. Therefore, you can easily determine if the currency is on an uptrend or if it is taking a downturn, when the last major change occurred, and how long it is predicted that the currency pair will continue on the current path.
If your broker does not supply you with these charts, then you should easily be able to draw them yourself with the modern day charting software or trading platform that you get from your broker. These software platforms can draw most charts for you by entering a couple of parameters and viewing the result.
It is recommended however that you learn at least the basics of charting and statistics before you start trading live.
Article Source: http://www.articlesbase.com/finance-articles/understanding-forex-statistics-406154.html
About the Author:
It is crucial that you get a forex training course before you start risking your money on the forex market.
Course on Forex Trading
Author: Forex Training School
Course on Forex Trading
The term used to describe the trading of the currencies of the various countries of the world is called foreign exchange, forex or just FX. More than 1.5 trillion USD worth trade activities are conducted in the worlds largest forex market. The forex trade is not conducted by a central exchange unlike stock trading. Telephone or electronic networks are used to connect the two counterparts all over the world to make a trade. Moreover the forex market offers several advantages over equities trading.
Moneymaking or wealth creation is the main goal behind any trade. The opportunities in FX are boundless and it far exceeds the slim margins and picks of other markets like equity or share trading. Moreover the risk involved is also much less and to top it all forex trading can be conducted 24 hours a day. There are always buyers and sellers available, who make this trade more liquid and stable among all others. The banks too provide liquidity to investors, companies and institutions.
Just like any other financial instrument forex trading also involves a deep analysis about the fundamental and technical truths associated with the trade. Keeping in mind the general interest of traders looking forward to invest in forex, many forex trading courses are available. The main aim of this Forex Trading Course is to impart the necessary knowledge about the fundamental procedures and tips on better and professional trading policies.
Forex trading courses offer valuable information related to the impacts on global currencies, market risks, market trends etc. it not only benefits the new trader who wants to set foot on alien grounds, but also the existing investors who wish to brush up their tricks of the trade. All the aspects of the forex trading, using the latest software’s and tools are what the Forex Trading course material is comprised of. Step by step guidance on trade environments, technical analysis, risk management, trading rules, global markets, economic and market indication etc are provided along with the hands on practical guidance from the experienced tutors from all around the globe.
Many factors are to be considered before you make a decision to do Forex trading course . ‘Knowledge is power’ for all our daily diplomatic living. Knowledge on what we do and how we do, especially trading will not only enhance our business dealings but will also allow us to differentiate and track down market conditions. Managing our finance wisely will save us the fear and anxiety about our unpredictable and meek future. Forex trading courses often outline these basic business strategies in their course material.
Forex trading courses are available as online courses and also through printed books. Free tutorials and financial guidance is also provided by many web sites. Choosing a professional Forex Trading Course will provide you with details on
• The best time to trade specific currencies like Euro
• How to anticipate movements and trends in the global market
• Which pairs of currency to trade
• Best time to enter the forex market
• Market conditions and tips about efficient trading from experts
• Technical indicators
Overall a forex trading course should be a complete currency trading solution for all the queries regarding forex and its effective trading options.
Article Source: http://www.articlesbase.com/finance-articles/course-on-forex-trading-126662.html
About the Author:
The article is Written By Forex Training School which is specialized in offering Forex Training Course .
Course on Forex Trading
The term used to describe the trading of the currencies of the various countries of the world is called foreign exchange, forex or just FX. More than 1.5 trillion USD worth trade activities are conducted in the worlds largest forex market. The forex trade is not conducted by a central exchange unlike stock trading. Telephone or electronic networks are used to connect the two counterparts all over the world to make a trade. Moreover the forex market offers several advantages over equities trading.
Moneymaking or wealth creation is the main goal behind any trade. The opportunities in FX are boundless and it far exceeds the slim margins and picks of other markets like equity or share trading. Moreover the risk involved is also much less and to top it all forex trading can be conducted 24 hours a day. There are always buyers and sellers available, who make this trade more liquid and stable among all others. The banks too provide liquidity to investors, companies and institutions.
Just like any other financial instrument forex trading also involves a deep analysis about the fundamental and technical truths associated with the trade. Keeping in mind the general interest of traders looking forward to invest in forex, many forex trading courses are available. The main aim of this Forex Trading Course is to impart the necessary knowledge about the fundamental procedures and tips on better and professional trading policies.
Forex trading courses offer valuable information related to the impacts on global currencies, market risks, market trends etc. it not only benefits the new trader who wants to set foot on alien grounds, but also the existing investors who wish to brush up their tricks of the trade. All the aspects of the forex trading, using the latest software’s and tools are what the Forex Trading course material is comprised of. Step by step guidance on trade environments, technical analysis, risk management, trading rules, global markets, economic and market indication etc are provided along with the hands on practical guidance from the experienced tutors from all around the globe.
Many factors are to be considered before you make a decision to do Forex trading course . ‘Knowledge is power’ for all our daily diplomatic living. Knowledge on what we do and how we do, especially trading will not only enhance our business dealings but will also allow us to differentiate and track down market conditions. Managing our finance wisely will save us the fear and anxiety about our unpredictable and meek future. Forex trading courses often outline these basic business strategies in their course material.
Forex trading courses are available as online courses and also through printed books. Free tutorials and financial guidance is also provided by many web sites. Choosing a professional Forex Trading Course will provide you with details on
• The best time to trade specific currencies like Euro
• How to anticipate movements and trends in the global market
• Which pairs of currency to trade
• Best time to enter the forex market
• Market conditions and tips about efficient trading from experts
• Technical indicators
Overall a forex trading course should be a complete currency trading solution for all the queries regarding forex and its effective trading options.
Article Source: http://www.articlesbase.com/finance-articles/course-on-forex-trading-126662.html
About the Author:
The article is Written By Forex Training School which is specialized in offering Forex Training Course .
Forex Trading - How Ordinary People Made Fortunes After Just 14 Days Training
By kelly Price
This is a story which inspired me to trade and took place in the late eighties. It involved a group of people who had never traded before, learning trading in 14 days and then going onto make hundreds of millions of dollars. Let's see how they did it...
Trading legend Richard Dennis decided to prove that anyone could learn to trade, with the right education and he gathered a group of people together to prove his point:
They were of both sexes, all ages and of varying levels of educational achievement and the group consisted of - a couple of professional card players, a boy fresh from school, a female auditor and a security guard, to name a few.
Dennis then set about teaching them to trade in just 14 days.
The result has gone down in trading history, as this group nicknamed "the turtles" went on to become trading legends and make hundreds of millions of dollars.
Dennis had proved his point - anyone could learn to trade, given the right education and they had the right mindset.
The system taught was essentially simple (a long term trend following breakout system) and anyone could understand it.
The question you maybe asking yourself now is:
If the system was that simple and anyone can learn to trade why do 95% of traders lose money?
The answer is:
You can learn a trading system - but you need the discipline to apply it.
If you can't apply it with discipline, you have no system. This is where most traders go wrong.
They want an easy way to profits and to follow guru's, mentors and forex robots with simulated track records and lose. Most of the systems sold by experts sell don't work anyway - but you can't just follow someone to success - success comes from within.
You MUST have a through understanding of what you're doing and while someone can teach you a system, you need to have a through understanding of how and why it works, so you have confidence and discipline to apply it.
Dennis knew this and didn't tell them to follow the system blindly, he taught them everything about it and made them understand it and apply it with discipline.
If you think discipline is easy, you haven't traded under pressure - it's hard to take loss after loss, in a drawdown period and stay with your system - but if you do this, you can enjoy trading success.
Forex trading looks easy and it is but most traders simply try and follow others to success and you can't do this. Sure someone can teach you the tools but you have to pick them up and use them.
There is no easy money but forex trading offers you the chance to start with small stakes and get rich and that's worth a bit of effort!
Now I am not saying you are going to become as rich as the above group - life simply isn't like that - but there is a huge difference between something being not possible and achievable.
It is my contention (and experience) that anyone can learn forex trading and find currency trading success.
In just 30 minutes a day, build big long term profits.
All you need to achieve the above is - to have the right mindset, a willingness to apply yourself and you have the chance to make a great income.
Are you up for a challenge and prepared to work hard?
Well there is nothing to stop you enjoying forex trading success.
NEW! 2 X FREE ESSENTIAL TRADER PDFS
ESSENTIAL FOREX TRADING COURSE
For free 2 x trading Pdf's, with 50 of pages of essential info and a course to Learn Currency Trading Online visit our website at: http://www.learncurrencytradingonline.com.
Article Source: http://www.free-articles-zone.com
This is a story which inspired me to trade and took place in the late eighties. It involved a group of people who had never traded before, learning trading in 14 days and then going onto make hundreds of millions of dollars. Let's see how they did it...
Trading legend Richard Dennis decided to prove that anyone could learn to trade, with the right education and he gathered a group of people together to prove his point:
They were of both sexes, all ages and of varying levels of educational achievement and the group consisted of - a couple of professional card players, a boy fresh from school, a female auditor and a security guard, to name a few.
Dennis then set about teaching them to trade in just 14 days.
The result has gone down in trading history, as this group nicknamed "the turtles" went on to become trading legends and make hundreds of millions of dollars.
Dennis had proved his point - anyone could learn to trade, given the right education and they had the right mindset.
The system taught was essentially simple (a long term trend following breakout system) and anyone could understand it.
The question you maybe asking yourself now is:
If the system was that simple and anyone can learn to trade why do 95% of traders lose money?
The answer is:
You can learn a trading system - but you need the discipline to apply it.
If you can't apply it with discipline, you have no system. This is where most traders go wrong.
They want an easy way to profits and to follow guru's, mentors and forex robots with simulated track records and lose. Most of the systems sold by experts sell don't work anyway - but you can't just follow someone to success - success comes from within.
You MUST have a through understanding of what you're doing and while someone can teach you a system, you need to have a through understanding of how and why it works, so you have confidence and discipline to apply it.
Dennis knew this and didn't tell them to follow the system blindly, he taught them everything about it and made them understand it and apply it with discipline.
If you think discipline is easy, you haven't traded under pressure - it's hard to take loss after loss, in a drawdown period and stay with your system - but if you do this, you can enjoy trading success.
Forex trading looks easy and it is but most traders simply try and follow others to success and you can't do this. Sure someone can teach you the tools but you have to pick them up and use them.
There is no easy money but forex trading offers you the chance to start with small stakes and get rich and that's worth a bit of effort!
Now I am not saying you are going to become as rich as the above group - life simply isn't like that - but there is a huge difference between something being not possible and achievable.
It is my contention (and experience) that anyone can learn forex trading and find currency trading success.
In just 30 minutes a day, build big long term profits.
All you need to achieve the above is - to have the right mindset, a willingness to apply yourself and you have the chance to make a great income.
Are you up for a challenge and prepared to work hard?
Well there is nothing to stop you enjoying forex trading success.
NEW! 2 X FREE ESSENTIAL TRADER PDFS
ESSENTIAL FOREX TRADING COURSE
For free 2 x trading Pdf's, with 50 of pages of essential info and a course to Learn Currency Trading Online visit our website at: http://www.learncurrencytradingonline.com.
Article Source: http://www.free-articles-zone.com
Forex Money Management - Simple Tips to Double Or Triple Your Profits!
By kelly Price
Forex money management is simply seen as a way of restricting loses but its lot more than placing a stop, if you follow the tips in this article, you could increase your gains dramatically...
The aim of forex traders is to take risks at the right time and get the odds on their side and then get as much as the trend as they can - sure you knew that already!
However most traders think high odds trades come around all the time - they don't.
The really great trends maybe come around a few times a month no more but how many traders try forex scalping and day trading? Lots. How many lose? All of them.
The first real rule is to get the odds on your side as much as possible and that means
Cutting your trading down - most traders simply trade too much.
Keep in mind though you don't get paid for how often you trade you only get paid for being right with your trading signal and that's it.
Once you cut you're trading down, you can concentrate on hitting the opportunities you are going to trade harder.
A huge mistake is to diversify why?
It simply dilutes gains. Most traders, also have small accounts and if they take the common wisdom of risking 2%, they have to have their stop so close, their guaranteed to get stopped out.
They have a small loss - but on the other hand, they have no chance of winning.
Sure it's the majority view to risk 2% - but the majority doesn't win!
Risk 10 - 20% and you will stay in the trade and get some meaningful profits.
Next the most common error of all of novice forex traders is to trail their stop to close and get bumped out the trade, by normal market volatility.
If you don't know what standard deviation of price is, make it part of your essential forex education!
Knowing how to trail a stop, outside of normal volatility is the key to huge gains.
If you trade don't trail too quickly and if your long term forex trend following, keep your stop well back.
A good way to do this is to use key trend line support, around the 40 day Moving Average.
Sure you give a bit back at the end of the trend but you don't know when the trend was going to end anyway so don't try and predict - you can't
If you look at a forex chart, the big trends last for weeks, months or years and there worth a lot of dollars in the pocket.
If you trade forex you need to take risk pure and simple. You are not trading in a manner but take calculated risks when the odds are on your side.
If you want to make 10 - 20% you can do it with less risk elsewhere.
If you want 50 - 100% you need to take risks, it's as simple as that.
Most traders try to restrict risk so much they create it. Sure they keep their losses small but they have a lot of them and never make any decent gains.
So in forex money management terms, you need to take risks at the right time hit the high odds trades with your forex trading strategy and milk them for all there worth.
FREE FOREX STARTER PACK 5 X PDFS - DAILY RESEARCH AND MUCH MORE!
For free infopack and free research and more get your 5 x FREE Essential Forex PDFS visit our website at: http://www.learncurrencytradingonline.com
Article Source: http://www.free-articles-zone.com
Forex money management is simply seen as a way of restricting loses but its lot more than placing a stop, if you follow the tips in this article, you could increase your gains dramatically...
The aim of forex traders is to take risks at the right time and get the odds on their side and then get as much as the trend as they can - sure you knew that already!
However most traders think high odds trades come around all the time - they don't.
The really great trends maybe come around a few times a month no more but how many traders try forex scalping and day trading? Lots. How many lose? All of them.
The first real rule is to get the odds on your side as much as possible and that means
Cutting your trading down - most traders simply trade too much.
Keep in mind though you don't get paid for how often you trade you only get paid for being right with your trading signal and that's it.
Once you cut you're trading down, you can concentrate on hitting the opportunities you are going to trade harder.
A huge mistake is to diversify why?
It simply dilutes gains. Most traders, also have small accounts and if they take the common wisdom of risking 2%, they have to have their stop so close, their guaranteed to get stopped out.
They have a small loss - but on the other hand, they have no chance of winning.
Sure it's the majority view to risk 2% - but the majority doesn't win!
Risk 10 - 20% and you will stay in the trade and get some meaningful profits.
Next the most common error of all of novice forex traders is to trail their stop to close and get bumped out the trade, by normal market volatility.
If you don't know what standard deviation of price is, make it part of your essential forex education!
Knowing how to trail a stop, outside of normal volatility is the key to huge gains.
If you trade don't trail too quickly and if your long term forex trend following, keep your stop well back.
A good way to do this is to use key trend line support, around the 40 day Moving Average.
Sure you give a bit back at the end of the trend but you don't know when the trend was going to end anyway so don't try and predict - you can't
If you look at a forex chart, the big trends last for weeks, months or years and there worth a lot of dollars in the pocket.
If you trade forex you need to take risk pure and simple. You are not trading in a manner but take calculated risks when the odds are on your side.
If you want to make 10 - 20% you can do it with less risk elsewhere.
If you want 50 - 100% you need to take risks, it's as simple as that.
Most traders try to restrict risk so much they create it. Sure they keep their losses small but they have a lot of them and never make any decent gains.
So in forex money management terms, you need to take risks at the right time hit the high odds trades with your forex trading strategy and milk them for all there worth.
FREE FOREX STARTER PACK 5 X PDFS - DAILY RESEARCH AND MUCH MORE!
For free infopack and free research and more get your 5 x FREE Essential Forex PDFS visit our website at: http://www.learncurrencytradingonline.com
Article Source: http://www.free-articles-zone.com
Forex Brokers- How do I Find The Right One?
Author: Ray Caran
As in any other market there are a multitude of brokers to choose.
Points to evaluate:
Low Spreads - The spread, calculated in "pips", is the difference between the price at which a currency can be purchased and the price at which it can be sold at any given point in time. You should know that Forex brokers don't charge a commission, so this difference is how they make money. In comparing various brokers, you will find that the difference in spreads in Forex is as large a spread as you would find in the stock market.
To keep more of your profits keep the spread lower.
Quality Institution - Forex brokers are usually tied to large banks or lending institutions because of the large amounts of capital required. Forex brokers should be registered with the Futures Commission Merchant (FCM) and regulated by the Commodity Futures Trading Commission (CFTC). You will find this important information on the website of its parent company.
Make sure your broker is backed by a well known and stable institution.
Tools and Research - Forex brokers offer a multitude of trading platforms for their clients. Before committing to your chosen broker, be sure to request free trials to test different trading platforms.
Find a broker who will give you the correct tools you need to succeed!
Questions to ask your prospective broker:
What are the normal spreads?
Are the spreads fixed or do they vary?
Do the spreads differ depending on ticket size?
Do all clients on your platform get the same spreads?
Some types of transactions
Margin Trading
Margin means borrowing money from a broker to buy a stock, or commodity, or currency pair and using the investment as collateral. It is, to all intents and purposes, a performance bond in cash or another means of security deposited by a trader.
Barriers
This is a standard option that automatically cancels out if spot trades through a prearranged knock-out level. This level is set below the initial spot for a call option, and above spot for a put.
Reversals
Reversals are primarily a Floor Trader strategy used to capitalize on minor price discrepancies between calls and puts. As implied by its name, reversals are the exact opposites of conversions.
Types of brokers
Market Operators
This most reliable group includes big commercial banks which are regulated according to bank laws and rules. If you elect to deal with such banks you will need large amounts of money to start. Minimal lot is approximately $1, 000, 000.
Market-makers
Market makers are financial which work with smaller broker companies and offer probable opportunities of Forex trading to individuals whose trading capitals exceed $50,000. They offer lower cost of Forex market trading. The minimal size of the bill is $50,000.
Small brokers
Smaller brokers working with individuals' small capital - which ranges from hundreds up to several thousand dollars. Risks of carrying out of deals begin when these little broker enterprises clear orders of their clients and work with the dealer or a market-maker.
Kitchens
The scheme of "kitchen" works fine if somebody doesn't start to win all the time. Their founders know that many clients just lose their money. And the profit of "kitchen" is these clients' losses. Then "kitchen" is closed with the remnants of clients' money and about two months later appear under other name. The scheme usually works like that. They offer to teach you for free and to learn how to trade in Forex market. Be aware that anytime money is involved, some one will try to help themselves to it.
Hopefully, I have helped to whet your appetite for Forex Trading.
There are some amazing Forex Trading Autopilot programs available. Do your research.
Article Source: http://www.articlesbase.com/finance-articles/forex-brokers-how-do-i-find-the-right-one-455290.html
About the Author:
Go here for an amazing Automatic Forex Trading System Forex Profits While You Sleep
As in any other market there are a multitude of brokers to choose.
Points to evaluate:
Low Spreads - The spread, calculated in "pips", is the difference between the price at which a currency can be purchased and the price at which it can be sold at any given point in time. You should know that Forex brokers don't charge a commission, so this difference is how they make money. In comparing various brokers, you will find that the difference in spreads in Forex is as large a spread as you would find in the stock market.
To keep more of your profits keep the spread lower.
Quality Institution - Forex brokers are usually tied to large banks or lending institutions because of the large amounts of capital required. Forex brokers should be registered with the Futures Commission Merchant (FCM) and regulated by the Commodity Futures Trading Commission (CFTC). You will find this important information on the website of its parent company.
Make sure your broker is backed by a well known and stable institution.
Tools and Research - Forex brokers offer a multitude of trading platforms for their clients. Before committing to your chosen broker, be sure to request free trials to test different trading platforms.
Find a broker who will give you the correct tools you need to succeed!
Questions to ask your prospective broker:
What are the normal spreads?
Are the spreads fixed or do they vary?
Do the spreads differ depending on ticket size?
Do all clients on your platform get the same spreads?
Some types of transactions
Margin Trading
Margin means borrowing money from a broker to buy a stock, or commodity, or currency pair and using the investment as collateral. It is, to all intents and purposes, a performance bond in cash or another means of security deposited by a trader.
Barriers
This is a standard option that automatically cancels out if spot trades through a prearranged knock-out level. This level is set below the initial spot for a call option, and above spot for a put.
Reversals
Reversals are primarily a Floor Trader strategy used to capitalize on minor price discrepancies between calls and puts. As implied by its name, reversals are the exact opposites of conversions.
Types of brokers
Market Operators
This most reliable group includes big commercial banks which are regulated according to bank laws and rules. If you elect to deal with such banks you will need large amounts of money to start. Minimal lot is approximately $1, 000, 000.
Market-makers
Market makers are financial which work with smaller broker companies and offer probable opportunities of Forex trading to individuals whose trading capitals exceed $50,000. They offer lower cost of Forex market trading. The minimal size of the bill is $50,000.
Small brokers
Smaller brokers working with individuals' small capital - which ranges from hundreds up to several thousand dollars. Risks of carrying out of deals begin when these little broker enterprises clear orders of their clients and work with the dealer or a market-maker.
Kitchens
The scheme of "kitchen" works fine if somebody doesn't start to win all the time. Their founders know that many clients just lose their money. And the profit of "kitchen" is these clients' losses. Then "kitchen" is closed with the remnants of clients' money and about two months later appear under other name. The scheme usually works like that. They offer to teach you for free and to learn how to trade in Forex market. Be aware that anytime money is involved, some one will try to help themselves to it.
Hopefully, I have helped to whet your appetite for Forex Trading.
There are some amazing Forex Trading Autopilot programs available. Do your research.
Article Source: http://www.articlesbase.com/finance-articles/forex-brokers-how-do-i-find-the-right-one-455290.html
About the Author:
Go here for an amazing Automatic Forex Trading System Forex Profits While You Sleep
Forex Trading Success - Learn These 3 Points and Success Can Be Yours!
by kelly price
If you want to enjoy Forex trading success then you need to pay attention to the 3 points enclosed, each of them is essential to making big profits so lets take a look at them...
The points we are going look at struck me when I was reading about how trading legend Richard Dennis taught a group of people with no trading experience at all, to trade in just 14 days.
They went on after their training, to make hundreds of millions of dollars in their trading careers and many still trade today.
This group learned quickly and while they had a good tutor, the three points that stand out for success from their story are these.
1. Simple Systems Work Best
The system was essentially simple and was a long term, breakout, trend following system. Anyone could learn it and while it was simple that's why it worked.
All the best systems are, as they are more robust than complicated ones, with fewer elements to break, they are also easier to understand and have confidence in.
So keep your trading method simple and robust to win.
2. Money Management
The key to success in Forex and other leveraged markets is to make sure that you defend what you have, any successful Forex trading strategy is based on sound money management.
Dennis applied to the system strict rules that had to be followed in terms of money management. In fact, the system had far more losers than winners but because they were kept small, the gains when they came more than compensated for the losses.
Any trading system will take losses and you need to get used to this and make sure you cut them quickly with objective money management rules. Don't ever believe the myths you see online about losing periods not occurring, even the best systems lose for weeks on end and you have to trade through them which leads to my next point.
3. Confidence and Discipline is the Key
All the traders that Dennis taught found the system easy to learn - but found the hard part applying it with discipline and sticking with it. This is hard for all traders.
We don't like losing, as it hurts our egos and our emotions try and get involved but if you deviate from your system, you don't have one!
You must have the discipline to trade through losing periods, until you hit a home run.
You don't just get discipline - this comes from the right Forex education, self knowledge and confidence in what you are doing.
Get on the Road to Profits!!
You have seen that Forex trading is a learned skill in this article and you can win but you must pay attention to the points we have covered - but if you do Forex trading success can be yours.
NEW! 2 X FREE ESSENTIAL TRADER PDFS ESSENTIAL FOREX TRADING COURSE
For free 2 x trading Pdf's, with 50 of pages of essential info on Successful Forex Trading Strategies visit our website at: http://www.learncurrencytradingonline.com.
Article Source: http://www.articlesnatch.com
If you want to enjoy Forex trading success then you need to pay attention to the 3 points enclosed, each of them is essential to making big profits so lets take a look at them...
The points we are going look at struck me when I was reading about how trading legend Richard Dennis taught a group of people with no trading experience at all, to trade in just 14 days.
They went on after their training, to make hundreds of millions of dollars in their trading careers and many still trade today.
This group learned quickly and while they had a good tutor, the three points that stand out for success from their story are these.
1. Simple Systems Work Best
The system was essentially simple and was a long term, breakout, trend following system. Anyone could learn it and while it was simple that's why it worked.
All the best systems are, as they are more robust than complicated ones, with fewer elements to break, they are also easier to understand and have confidence in.
So keep your trading method simple and robust to win.
2. Money Management
The key to success in Forex and other leveraged markets is to make sure that you defend what you have, any successful Forex trading strategy is based on sound money management.
Dennis applied to the system strict rules that had to be followed in terms of money management. In fact, the system had far more losers than winners but because they were kept small, the gains when they came more than compensated for the losses.
Any trading system will take losses and you need to get used to this and make sure you cut them quickly with objective money management rules. Don't ever believe the myths you see online about losing periods not occurring, even the best systems lose for weeks on end and you have to trade through them which leads to my next point.
3. Confidence and Discipline is the Key
All the traders that Dennis taught found the system easy to learn - but found the hard part applying it with discipline and sticking with it. This is hard for all traders.
We don't like losing, as it hurts our egos and our emotions try and get involved but if you deviate from your system, you don't have one!
You must have the discipline to trade through losing periods, until you hit a home run.
You don't just get discipline - this comes from the right Forex education, self knowledge and confidence in what you are doing.
Get on the Road to Profits!!
You have seen that Forex trading is a learned skill in this article and you can win but you must pay attention to the points we have covered - but if you do Forex trading success can be yours.
NEW! 2 X FREE ESSENTIAL TRADER PDFS ESSENTIAL FOREX TRADING COURSE
For free 2 x trading Pdf's, with 50 of pages of essential info on Successful Forex Trading Strategies visit our website at: http://www.learncurrencytradingonline.com.
Article Source: http://www.articlesnatch.com
Mini FOREX trading
Open an online FOREX trading account first before considering of betting big if you’re a beginner. FOREX trading is risky if you don’t have enough experience. If your intention is to get some experience and not interested in making big investment yet, you can start by investing $50 - $100 first and see how it goes. Starting to trade with such small amounts is the best way to get familiar with FOREX marketplace. It is much better than operating ‘DEMO’ accounts, where you’re not really risking your money and there are no return at all using ‘DEMO’ accounts.
You can start an online FOREX trading account and some website let you start from as little as $50. Do not laugh – mini accounts are a good ways to get your feet wet without taking a bath. Also, mini FOREX trading does not suffer the illiquidity of many futures mini-contracts, as everyone feeds from the same currency “pool”. Not only that, you can start trading in less than 5 minutes. You can immediately register, deposit the margins of the deal and start running.
Mini accounts are a great way to get started and test your basic trading expertise. Trading with small amounts is much more telling than paper trading. Remember to choose a FOREX trading platform with competitive spreads. This way will save your FOREX trading costs. It can be as low as 5 pips, depending on how much money you want to trade.
I would want to give a few tips before you start an online FOREX trading account. By nature everyone is emotionally attached to their money. Since you’re trading with funds, you must cultivate an attitude of emotional detachment from your FOREX trading account. Otherwise, each sour trade will infest you with stress, worry and fear. Just be calm when you trade and you can do much better.
You can start an online FOREX trading account and some website let you start from as little as $50. Do not laugh – mini accounts are a good ways to get your feet wet without taking a bath. Also, mini FOREX trading does not suffer the illiquidity of many futures mini-contracts, as everyone feeds from the same currency “pool”. Not only that, you can start trading in less than 5 minutes. You can immediately register, deposit the margins of the deal and start running.
Mini accounts are a great way to get started and test your basic trading expertise. Trading with small amounts is much more telling than paper trading. Remember to choose a FOREX trading platform with competitive spreads. This way will save your FOREX trading costs. It can be as low as 5 pips, depending on how much money you want to trade.
I would want to give a few tips before you start an online FOREX trading account. By nature everyone is emotionally attached to their money. Since you’re trading with funds, you must cultivate an attitude of emotional detachment from your FOREX trading account. Otherwise, each sour trade will infest you with stress, worry and fear. Just be calm when you trade and you can do much better.
Forex Trading Rules
1. Emotional control is at the heart of good trading.
2. Cut losses with the most strict discipline
3. Make good decisions and winning will take care of itself.
4. When you lose, don't lose the lesson!
5. When in doubt, get out.
6. Keep your risk/reward profile in check.
7. Avoid scheduled news.
8. Consider your account size for appropriate trading.
9. Get a charting program that allows you to build watch lists, sort stocks, and draw trendlines.
10. Scale out of winning positions as they work for you.
11. Don't dig yourself into a hole early in the day or in your career.
12. Trade with a blend of anticipation and confirmation.
13. Evaluate your results at least monthly.
14. Finally (perhaps most important), always be patient.
15. Invest on the side that is winning
16. The objective of what we are after is not to buy low and to sell high, but to buy high and to sell higher, or to sell short low and to buy lower.
17. Capital is in two varieties: Mental and Real, and, of the two, the mental capital is the most important.
18. Markets can remain illogical far longer than you or I can remain solvent.
19. To trade/invest successfully, think like a fundamentalist; trade like a technician.
20. Grow Slowly But Strongly "Pip-Machine"
2. Cut losses with the most strict discipline
3. Make good decisions and winning will take care of itself.
4. When you lose, don't lose the lesson!
5. When in doubt, get out.
6. Keep your risk/reward profile in check.
7. Avoid scheduled news.
8. Consider your account size for appropriate trading.
9. Get a charting program that allows you to build watch lists, sort stocks, and draw trendlines.
10. Scale out of winning positions as they work for you.
11. Don't dig yourself into a hole early in the day or in your career.
12. Trade with a blend of anticipation and confirmation.
13. Evaluate your results at least monthly.
14. Finally (perhaps most important), always be patient.
15. Invest on the side that is winning
16. The objective of what we are after is not to buy low and to sell high, but to buy high and to sell higher, or to sell short low and to buy lower.
17. Capital is in two varieties: Mental and Real, and, of the two, the mental capital is the most important.
18. Markets can remain illogical far longer than you or I can remain solvent.
19. To trade/invest successfully, think like a fundamentalist; trade like a technician.
20. Grow Slowly But Strongly "Pip-Machine"
Wednesday, July 8, 2009
Forex Analysis
Analysis in Forex
There are 2 basic types of analysis you can take when approaching the forex:
1. Fundamental analysis
2. Technical analysis.
There has always been a constant debate as to which analysis is better, but to tell you thetruth, you need to know a little bit of both. So let’s break each one down and then come back and put them together.
Fundamental Analysis
Fundamental analysis is a way of looking at the market through economic, social and political forces that affect supply and demand. In other words, you look at whose economy is doing well, and whose economy sucks. The idea behind this type of analysis is that if a country’s economy is doing well, their currency will also be doing well. This is because the better a country’s economy, the more trust other countries have in that currency. For example, the U.S. dollar has been gaining strength because the U.S. economy is gaining strength. As the economy gets better, interest rates get higher to control inflation and as a result, the value of the dollar continues to increase. In a nutshell, that is basically what fundamental analysis is. Later on in the course you will learn which specific news events drive currency prices the most. For now, just know that the fundamental analysis of the Forex is a way of analyzing a currency through the strength of that country’s economy.
Technical Analysis
The most IMPORTANT thing you will ever learn in technical analysis is the trend! Many, many, many, many, many, many people have a saying that goes, “The trend is your friend”. The reason for this is that you are much more likely to make money when you can find a trend and trade in the same direction. Technical analysis can help you identify
these trends in its earliest stages and therefore provide you with very profitable trading
opportunities. Now I know you’re thinking to yourself, “Geez, these guys are smart. They use crazy words like "technical" and "fundamental" analysis. I can never learn this stuff!” Don't worry yourself too much. After you're done with the School of Pipsology, you too will be just as....uhmmm..."smart?" as us.
So which type of analysis is better?
Ahh, the million dollar question. Throughout your journey as an aspiring Forex trader you will find strong advocates for both fundamental and technical trading. You will have those who argue that it is the fundamentals alone that drive the market and that any patterns found on a chart are simply coincidence. On the other hand, there will be those who argue that it is the technicals that traders pay attention to and because traders pay attention to it, common market patterns can be found to help predict future price movements. Do not be fooled by these one sided extremists! One is not better than the other... Technical analysis is the study of price movement. In one word, technical analysis = charts. The idea is that a person can look at historical price movements, and, based on the price action, can determine at some level where the price will go. By looking at charts, you can identify trends and patterns which can help you find good trading opportunities. In order to become a true Forex master you will need to know how to effectively use both types of analysis. Don't believe me? Let me give you an example of how focusing on only one type of analysis can turn into a disaster.
• Let’s say that you’re looking at your charts and you find a good trading opportunity. You get all excited thinking about the money that’s going to be raining down from the sky. You say to yourself, “Man, I’ve never seen a more perfect trading opportunity. I love my charts.”
There are 2 basic types of analysis you can take when approaching the forex:
1. Fundamental analysis
2. Technical analysis.
There has always been a constant debate as to which analysis is better, but to tell you thetruth, you need to know a little bit of both. So let’s break each one down and then come back and put them together.
Fundamental Analysis
Fundamental analysis is a way of looking at the market through economic, social and political forces that affect supply and demand. In other words, you look at whose economy is doing well, and whose economy sucks. The idea behind this type of analysis is that if a country’s economy is doing well, their currency will also be doing well. This is because the better a country’s economy, the more trust other countries have in that currency. For example, the U.S. dollar has been gaining strength because the U.S. economy is gaining strength. As the economy gets better, interest rates get higher to control inflation and as a result, the value of the dollar continues to increase. In a nutshell, that is basically what fundamental analysis is. Later on in the course you will learn which specific news events drive currency prices the most. For now, just know that the fundamental analysis of the Forex is a way of analyzing a currency through the strength of that country’s economy.
Technical Analysis
The most IMPORTANT thing you will ever learn in technical analysis is the trend! Many, many, many, many, many, many people have a saying that goes, “The trend is your friend”. The reason for this is that you are much more likely to make money when you can find a trend and trade in the same direction. Technical analysis can help you identify
these trends in its earliest stages and therefore provide you with very profitable trading
opportunities. Now I know you’re thinking to yourself, “Geez, these guys are smart. They use crazy words like "technical" and "fundamental" analysis. I can never learn this stuff!” Don't worry yourself too much. After you're done with the School of Pipsology, you too will be just as....uhmmm..."smart?" as us.
So which type of analysis is better?
Ahh, the million dollar question. Throughout your journey as an aspiring Forex trader you will find strong advocates for both fundamental and technical trading. You will have those who argue that it is the fundamentals alone that drive the market and that any patterns found on a chart are simply coincidence. On the other hand, there will be those who argue that it is the technicals that traders pay attention to and because traders pay attention to it, common market patterns can be found to help predict future price movements. Do not be fooled by these one sided extremists! One is not better than the other... Technical analysis is the study of price movement. In one word, technical analysis = charts. The idea is that a person can look at historical price movements, and, based on the price action, can determine at some level where the price will go. By looking at charts, you can identify trends and patterns which can help you find good trading opportunities. In order to become a true Forex master you will need to know how to effectively use both types of analysis. Don't believe me? Let me give you an example of how focusing on only one type of analysis can turn into a disaster.
• Let’s say that you’re looking at your charts and you find a good trading opportunity. You get all excited thinking about the money that’s going to be raining down from the sky. You say to yourself, “Man, I’ve never seen a more perfect trading opportunity. I love my charts.”
How To Make Forex Order
There are some basic order types that all brokers provide and some others that sound
weird. The basic ones are:
• Market order
A market order is an order to buy or sell at the current market price. For example,EUR/USD is currently trading at 1.2140. If you wanted to buy at this exact price, you would click buy and your trading platform would instantly execute a buy order at that exact price. If you ever shop on Amazon.com, it's (kinda) like using their 1-Click ordering. You like thecurrent price, you click once and it's yours! The only difference is you are buying or selling one currency against another currency instead of buying Britney Spears CDs.
• Limit order
A limit order is an order placed to buy or sell at a certain price. The order essentially contains two variables, price and duration. For example, EUR/USD is currently trading at 1.2050. You want to go long if the price reaches 1.2070. You can either sit in front of your monitor and wait for it to hit 1.2070 (at which point you would click a buy market order), or you can set a buy limit order at 1.2070 (then you could walk away from your computer to attend your ballroom dancing class). If the price goes up to 1.2070, your trading platform will automatically execute a buy order at that exact price. You specify the price atwhich you wish to buy/sell a certain currency pair and also specify how long you want the order to remain active (GTC or GFD).
• Stop-loss order
A stop-loss order is a limit order linked to an open trade for the purpose of preventing additional losses if price goes against you. A stop-loss order remains in effect until the position is liquidated or you cancel the stop-loss order. For example, you went long (buy) EUR/USD at 1.2230. To limit your maximum loss, you set a stop-loss order at 1.2200. This means if you were dead wrong and EUR/USD drops to 1.2200 instead of moving up, your trading platform would automatically execute a sell order at 1.2200 and close out your position for a 30 pip loss (eww!). Stop-losses are extremely useful if you don't want to sit in front of your monitor all day worried that you will lose all your money. You can simply set a stop-loss order on any open positions so you won't miss your basket weaving class.
• GTC (Good ‘til canceled)
A GTC order remains active in the market until you decide to cancel it. Your broker will not cancel the order at any time. Therefore it's your responsibility to remember that you have the order scheduled.
• GFD (Good for the day)
A GFD order remains active in the market until the end of the trading day. Because foreign exchange is a 24-hour market, this usually means 5pm EST since that that's U.S. markets close, but I’d recommend you double check with your broker.
• OCO (Order cancels other)
An OCO order is a mixture of two limit and/or stop-loss orders. Two orders with price and duration variables are placed above and below the current price. When one of the orders is executed the other order is canceled. Example: The price of EUR/USD is 1.2040. You want to either buy at 1.2095 over the resistance level in anticipation of a breakout or initiate a selling position if the price falls below 1.1985. The understanding is that if 1.2095 is reached, you will buy order will be triggered and the 1.1985 sell order will be automatically canceled.
weird. The basic ones are:
• Market order
A market order is an order to buy or sell at the current market price. For example,EUR/USD is currently trading at 1.2140. If you wanted to buy at this exact price, you would click buy and your trading platform would instantly execute a buy order at that exact price. If you ever shop on Amazon.com, it's (kinda) like using their 1-Click ordering. You like thecurrent price, you click once and it's yours! The only difference is you are buying or selling one currency against another currency instead of buying Britney Spears CDs.
• Limit order
A limit order is an order placed to buy or sell at a certain price. The order essentially contains two variables, price and duration. For example, EUR/USD is currently trading at 1.2050. You want to go long if the price reaches 1.2070. You can either sit in front of your monitor and wait for it to hit 1.2070 (at which point you would click a buy market order), or you can set a buy limit order at 1.2070 (then you could walk away from your computer to attend your ballroom dancing class). If the price goes up to 1.2070, your trading platform will automatically execute a buy order at that exact price. You specify the price atwhich you wish to buy/sell a certain currency pair and also specify how long you want the order to remain active (GTC or GFD).
• Stop-loss order
A stop-loss order is a limit order linked to an open trade for the purpose of preventing additional losses if price goes against you. A stop-loss order remains in effect until the position is liquidated or you cancel the stop-loss order. For example, you went long (buy) EUR/USD at 1.2230. To limit your maximum loss, you set a stop-loss order at 1.2200. This means if you were dead wrong and EUR/USD drops to 1.2200 instead of moving up, your trading platform would automatically execute a sell order at 1.2200 and close out your position for a 30 pip loss (eww!). Stop-losses are extremely useful if you don't want to sit in front of your monitor all day worried that you will lose all your money. You can simply set a stop-loss order on any open positions so you won't miss your basket weaving class.
• GTC (Good ‘til canceled)
A GTC order remains active in the market until you decide to cancel it. Your broker will not cancel the order at any time. Therefore it's your responsibility to remember that you have the order scheduled.
• GFD (Good for the day)
A GFD order remains active in the market until the end of the trading day. Because foreign exchange is a 24-hour market, this usually means 5pm EST since that that's U.S. markets close, but I’d recommend you double check with your broker.
• OCO (Order cancels other)
An OCO order is a mixture of two limit and/or stop-loss orders. Two orders with price and duration variables are placed above and below the current price. When one of the orders is executed the other order is canceled. Example: The price of EUR/USD is 1.2040. You want to either buy at 1.2095 over the resistance level in anticipation of a breakout or initiate a selling position if the price falls below 1.1985. The understanding is that if 1.2095 is reached, you will buy order will be triggered and the 1.1985 sell order will be automatically canceled.
How To Trade in Forex
The FX market, you buy or sell currencies. Placing a trade in the foreign exchange market is simple: the mechanics of a trade are very similar to those found in other markets (like the stock market), so if you have any experience in trading, you should be able to pick it up pretty quickly.
The object of Forex trading is to exchange one currency for another in the expectation that the price will change, so that the currency you bought will increase in value compared to the one you sold.
Example of making money by buying Euros
Trader's Action EUR USD You purchase 10,000 euros at the EUR/USD exchange rate of 1.18
Two weeks later, you exchange your 10,000 euros back into US dollars at the exchange rate of 1.2500.
you earn a profit of $700. 0 +700
EUR $10,000 x 1.18 = US $11,800
EUR $10,000 x 1.25 = US $12,500
An exchange rate is simply the ratio of one currency valued against another currency. For example, the USD/CHF exchange rate indicates how many U.S. dollars can purchase one Swiss franc, or how many Swiss francs you need to buy one U.S. dollar. How to Read an FX Quote Currencies are always quoted in pairs, such as GBP/USD or USD/JPY. The reason they are quoted in pairs is because in every foreign exchange transaction you are simultaneously buying one currency and selling another. Here is an example of a foreign exchange rate for the British pound versus the U.S. dollar:
GBP/USD = 1.7500
The first listed currency to the left of the slash ("/") is known as the base currency (in this example, the British pound), while the second one on the right is called the counter or quote currency (in this example, the U.S. dollar). When buying, the exchange rate tells you how much you have to pay in units of the quote currency to buy one unit of the base currency. In the example above, you have to pay 1.7500 U.S. dollar to buy 1 British pound. When selling, the exchange rate tells you how many units of the quote currency you get for selling one unit of the base currency. In the example above, you will receive 1.7500 U.S. dollars when you sell 1 British pound. The base currency is the “basis” for the buy or the sell. If you buy EUR/USD this simply
means that you are buying the base currency and simultaneously selling the quote currency.
You would buy the pair if you believe the base currency will appreciate (go up) relative to the quote currency. You would sell the pair if you think the base currency will depreciate (go down) relative to the quote currency.
Long/Short
First, you should determine whether you want to buy or sell. If you want to buy (which actually means buy the base currency and sell the quote currency), you want the base currency to rise in value and then you would sell it back at a higher price. In trader's talk, this is called "going long" or taking a "long position". Just remember: long = buy.
If you want to sell (which actually means sell the base currency and buy the quote currency), you want the base currency to fall in value and then you would buy it back at a lower price. This is called "going short" or taking a "short position". Short = sell. Bid/Ask Spread
All Forex quotes include a two-way price, the bid and ask. The bid is always lower than the ask price. The bid is the price in which the dealer is willing to buy the base currency in exchange for the quote currency. This means the bid is the price at which you (as the trader) will sell. The ask is the price at which the dealer will sell the base currency in exchange for the quote currency. This means the ask is the price at which you will buy. The difference between the bid and the ask price is popularly known as the spread. Let's take a look at an example of a price quote taken from a trading platform:
On this GBP/USD quote, the bid price is 1.7445 and the ask price
is 1.7449. Look at how this broker makes it so easy for you to
trade away your money.
If you want to sell GBP, you click "Sell" and you will sell pounds
at 1.7445. If you want to buy GBP, you click "Buy" and you will
buy pounds at 1.7449.
In the following examples, we're going to use fundamental analysis to help us decide whether to buy or sell a specific currency pair. If you always fell asleep during your economics class or just flat out skipped economics class, don’t worry! We will cover fundamental analysis in a later lesson. For right now, try to pretend you know what’s going on…
EUR/USD
In this example Euro is the base currency and thus the “basis” for the buy/sell. If you believe that the US economy will continue to weaken, which is bad for the US dollar, you would execute a BUY EUR/USD order. By doing so you have bought euros in the expectation that they will rise versus the US dollar. if you believe that the US economy is strong and the euro will weaken against the US dollar you would execute a SELL EUR/USD order. By doing so you have sold Euros in the expectation that they will fall versus the US dollar.
USD/JPY
In this example the US dollar is the base currency and thus the “basis” for the buy/sell. If you think that the Japanese government is going to weaken the Yen in order to help its export industry, you would execute a BUY USD/JPY order. By doing so you have bought U.S dollars in the expectation that they will rise versus the Japanese yen. If you believe that Japanese investors are pulling money out of U.S. financial markets and converting all their U.S. dollars back to Yen, and this will hurt the US dollar, you would execute a SELL USD/JPY order. By doing so you have sold U.S dollars in the expectation that they will depreciate against the Japanese yen.
GBP/USD
In this example the GBP is the base currency and thus the “basis” for the buy/sell. If you think the British economy will continue to do better than the United States in terms of economic growth, you would execute a BUY GBP/USD order. By doing so you have bought pounds in the expectation that they will rise versus the US dollar. If you believe the British's economy is slowing while the United State's economy remains strong like bull, you would execute a SELL GBP/USD order. By doing so you have sold pounds in the expectation that they will depreciate against the US dollar.
USD/CHF
In this example the USD is the base currency and thus the “basis” for the buy/sell. If you think the Swiss franc is overvalued, you would execute a BUY USD/CHF order. By doing so you have bought US dollars in the expectation that they will appreciate versus the Swiss Franc. If you believe that the US housing market bubble burst will hurt future economic growth, which will weaken the dollar, you would execute a SELL USD/CHF order. By doing so you have sold US dollars in the expectation that they will depreciate against the Swiss franc. I don't have enough money to buy $10,000 euros. Can I still trade?
You can with margin trading! Margin trading is simply the term used for trading with borrowed capital. This is how you're able to open $10,000 or $100,000 positions with as little as $50 or $1,000. You can conduct relatively large transactions, very quickly and cheaply, with a small amount of initial capital. Margin trading in the foreign exchange market is quantified in “lots”. For now, just think of the term "lot" as the minimum amount of currency you have to buy. When you go to the grocery store and want to buy an egg, you can't just buy a single egg; they come in dozens or "lots" of 12. In Forex, it would be just as foolish to buy or sell $1 EUR, so they usually come in "lots" of $10,000 or $100,000 depending on the type of account you have.
For Example:
• You believe that signals in the market are indicating that the British Pound will go up
against the US Dollar.
• You open 1 lot ($100,000) for buying the Pound with a 1% margin at the price of
1.5000 and wait for the exchange rate to climb. This means you now control $100,000
worth of British Pound with $1,000. Your predictions come true and you decide to
sell.
• You close the position at 1.5050. You earn 50 pips or about $500. (A pip is the
smallest price movement available in a currency). So for an initial capital investment
of $1,000, you have made 50% return. Return equals your $500 profit divided by your
$1,000 you risked to trade.
Your Actions GBP USD
Your Money
You buy 100,000 pounds at the GBP/USD exchange
rate of 1.5000
+100,000 -150,000 $1,000
You blink for two seconds and the GBP/USD
exchange rate rises to 1.5050 and you sell.
-100,000 +150,500** $1,500
You have earned a profit of $500. 0 +500
When you decide to close a position, the deposit that you originally made is returned to you and a calculation of your profits or losses is done. This profit or loss is then credited to your account.
We will also be discussing margin more in-depth in the next lesson, but hopefully you're
able to get a basic idea of how margin works.
source: School of Pipsology
The object of Forex trading is to exchange one currency for another in the expectation that the price will change, so that the currency you bought will increase in value compared to the one you sold.
Example of making money by buying Euros
Trader's Action EUR USD You purchase 10,000 euros at the EUR/USD exchange rate of 1.18
Two weeks later, you exchange your 10,000 euros back into US dollars at the exchange rate of 1.2500.
you earn a profit of $700. 0 +700
EUR $10,000 x 1.18 = US $11,800
EUR $10,000 x 1.25 = US $12,500
An exchange rate is simply the ratio of one currency valued against another currency. For example, the USD/CHF exchange rate indicates how many U.S. dollars can purchase one Swiss franc, or how many Swiss francs you need to buy one U.S. dollar. How to Read an FX Quote Currencies are always quoted in pairs, such as GBP/USD or USD/JPY. The reason they are quoted in pairs is because in every foreign exchange transaction you are simultaneously buying one currency and selling another. Here is an example of a foreign exchange rate for the British pound versus the U.S. dollar:
GBP/USD = 1.7500
The first listed currency to the left of the slash ("/") is known as the base currency (in this example, the British pound), while the second one on the right is called the counter or quote currency (in this example, the U.S. dollar). When buying, the exchange rate tells you how much you have to pay in units of the quote currency to buy one unit of the base currency. In the example above, you have to pay 1.7500 U.S. dollar to buy 1 British pound. When selling, the exchange rate tells you how many units of the quote currency you get for selling one unit of the base currency. In the example above, you will receive 1.7500 U.S. dollars when you sell 1 British pound. The base currency is the “basis” for the buy or the sell. If you buy EUR/USD this simply
means that you are buying the base currency and simultaneously selling the quote currency.
You would buy the pair if you believe the base currency will appreciate (go up) relative to the quote currency. You would sell the pair if you think the base currency will depreciate (go down) relative to the quote currency.
Long/Short
First, you should determine whether you want to buy or sell. If you want to buy (which actually means buy the base currency and sell the quote currency), you want the base currency to rise in value and then you would sell it back at a higher price. In trader's talk, this is called "going long" or taking a "long position". Just remember: long = buy.
If you want to sell (which actually means sell the base currency and buy the quote currency), you want the base currency to fall in value and then you would buy it back at a lower price. This is called "going short" or taking a "short position". Short = sell. Bid/Ask Spread
All Forex quotes include a two-way price, the bid and ask. The bid is always lower than the ask price. The bid is the price in which the dealer is willing to buy the base currency in exchange for the quote currency. This means the bid is the price at which you (as the trader) will sell. The ask is the price at which the dealer will sell the base currency in exchange for the quote currency. This means the ask is the price at which you will buy. The difference between the bid and the ask price is popularly known as the spread. Let's take a look at an example of a price quote taken from a trading platform:
On this GBP/USD quote, the bid price is 1.7445 and the ask price
is 1.7449. Look at how this broker makes it so easy for you to
trade away your money.
If you want to sell GBP, you click "Sell" and you will sell pounds
at 1.7445. If you want to buy GBP, you click "Buy" and you will
buy pounds at 1.7449.
In the following examples, we're going to use fundamental analysis to help us decide whether to buy or sell a specific currency pair. If you always fell asleep during your economics class or just flat out skipped economics class, don’t worry! We will cover fundamental analysis in a later lesson. For right now, try to pretend you know what’s going on…
EUR/USD
In this example Euro is the base currency and thus the “basis” for the buy/sell. If you believe that the US economy will continue to weaken, which is bad for the US dollar, you would execute a BUY EUR/USD order. By doing so you have bought euros in the expectation that they will rise versus the US dollar. if you believe that the US economy is strong and the euro will weaken against the US dollar you would execute a SELL EUR/USD order. By doing so you have sold Euros in the expectation that they will fall versus the US dollar.
USD/JPY
In this example the US dollar is the base currency and thus the “basis” for the buy/sell. If you think that the Japanese government is going to weaken the Yen in order to help its export industry, you would execute a BUY USD/JPY order. By doing so you have bought U.S dollars in the expectation that they will rise versus the Japanese yen. If you believe that Japanese investors are pulling money out of U.S. financial markets and converting all their U.S. dollars back to Yen, and this will hurt the US dollar, you would execute a SELL USD/JPY order. By doing so you have sold U.S dollars in the expectation that they will depreciate against the Japanese yen.
GBP/USD
In this example the GBP is the base currency and thus the “basis” for the buy/sell. If you think the British economy will continue to do better than the United States in terms of economic growth, you would execute a BUY GBP/USD order. By doing so you have bought pounds in the expectation that they will rise versus the US dollar. If you believe the British's economy is slowing while the United State's economy remains strong like bull, you would execute a SELL GBP/USD order. By doing so you have sold pounds in the expectation that they will depreciate against the US dollar.
USD/CHF
In this example the USD is the base currency and thus the “basis” for the buy/sell. If you think the Swiss franc is overvalued, you would execute a BUY USD/CHF order. By doing so you have bought US dollars in the expectation that they will appreciate versus the Swiss Franc. If you believe that the US housing market bubble burst will hurt future economic growth, which will weaken the dollar, you would execute a SELL USD/CHF order. By doing so you have sold US dollars in the expectation that they will depreciate against the Swiss franc. I don't have enough money to buy $10,000 euros. Can I still trade?
You can with margin trading! Margin trading is simply the term used for trading with borrowed capital. This is how you're able to open $10,000 or $100,000 positions with as little as $50 or $1,000. You can conduct relatively large transactions, very quickly and cheaply, with a small amount of initial capital. Margin trading in the foreign exchange market is quantified in “lots”. For now, just think of the term "lot" as the minimum amount of currency you have to buy. When you go to the grocery store and want to buy an egg, you can't just buy a single egg; they come in dozens or "lots" of 12. In Forex, it would be just as foolish to buy or sell $1 EUR, so they usually come in "lots" of $10,000 or $100,000 depending on the type of account you have.
For Example:
• You believe that signals in the market are indicating that the British Pound will go up
against the US Dollar.
• You open 1 lot ($100,000) for buying the Pound with a 1% margin at the price of
1.5000 and wait for the exchange rate to climb. This means you now control $100,000
worth of British Pound with $1,000. Your predictions come true and you decide to
sell.
• You close the position at 1.5050. You earn 50 pips or about $500. (A pip is the
smallest price movement available in a currency). So for an initial capital investment
of $1,000, you have made 50% return. Return equals your $500 profit divided by your
$1,000 you risked to trade.
Your Actions GBP USD
Your Money
You buy 100,000 pounds at the GBP/USD exchange
rate of 1.5000
+100,000 -150,000 $1,000
You blink for two seconds and the GBP/USD
exchange rate rises to 1.5050 and you sell.
-100,000 +150,500** $1,500
You have earned a profit of $500. 0 +500
When you decide to close a position, the deposit that you originally made is returned to you and a calculation of your profits or losses is done. This profit or loss is then credited to your account.
We will also be discussing margin more in-depth in the next lesson, but hopefully you're
able to get a basic idea of how margin works.
source: School of Pipsology
Tuesday, July 7, 2009
What to look for in an online Forex broker/dealer
What to look for in an online Forex broker/dealer:
1. Low Spreads.
In Forex trading the ‘spread’ is the difference between the buy and sell price of any given currency pair. Lower spreads save you money.
2. Low minimum account openings.
For those that are new to Forex trading and for those that don’t have millions of dollars in risk capital to trade, being able to open a micro trading account with only $250 (we recommend at least $1,000) is a great feature for new traders.
3. Instant automatic execution of your orders.
This is very important when choosing a Forex broker. Don’t settle with a firm that re-quotes you when you click on a price or a firm that allows for price ‘slippage’. This is very important when trading for small profits. You want what we call a WYSIWYG (pronounced wiz-ee-wig) broker! This means you want instant execution of your orders and the price you see and "click" is the price that you should get...WYSIWYG = What You See Is What You Get!
4. Free charting and technical analysis
Choose a broker that gives you access to the best charting and technical analysis available to active traders. Look for a broker that provides free professional charting services and allows traders to trade directly on the charts.
5. LeverageLeverage can either make you super rich or super broke. Most likely, it will be the latter. As an inexperienced trader, you don't want too much leverage. A good rule of thumb is to not use more than 100:1 leverage for Standard (100k) accounts and 200:1 for Mini (10k) accounts.
source: School of Pipsology
1. Low Spreads.
In Forex trading the ‘spread’ is the difference between the buy and sell price of any given currency pair. Lower spreads save you money.
2. Low minimum account openings.
For those that are new to Forex trading and for those that don’t have millions of dollars in risk capital to trade, being able to open a micro trading account with only $250 (we recommend at least $1,000) is a great feature for new traders.
3. Instant automatic execution of your orders.
This is very important when choosing a Forex broker. Don’t settle with a firm that re-quotes you when you click on a price or a firm that allows for price ‘slippage’. This is very important when trading for small profits. You want what we call a WYSIWYG (pronounced wiz-ee-wig) broker! This means you want instant execution of your orders and the price you see and "click" is the price that you should get...WYSIWYG = What You See Is What You Get!
4. Free charting and technical analysis
Choose a broker that gives you access to the best charting and technical analysis available to active traders. Look for a broker that provides free professional charting services and allows traders to trade directly on the charts.
5. LeverageLeverage can either make you super rich or super broke. Most likely, it will be the latter. As an inexperienced trader, you don't want too much leverage. A good rule of thumb is to not use more than 100:1 leverage for Standard (100k) accounts and 200:1 for Mini (10k) accounts.
source: School of Pipsology
The Factor to choose Forex Broker
Before selecting an online Forex broker, you should closely examine their features and
policies. These include:
• Available Currency Pairs
You should confirm that the prospective broker offers, at minimum, the seven major currencies (AUD, CAD, CHF, EUR, GBP, JPY, and USD).
• Transaction Costs
Transaction costs are calculated in pips. The lower the number of pips required per trade by the broker, the greater the profit that the trader makes. Comparing pip spreads of half dozen brokers will reveal different transaction costs. For example, the bid/ask spread for EUR/USD is usually 3 pips, but if you can find 2 pips, that’s even better.
• Margin Requirement
The lower the margin requirement (meaning the higher the leverage), the greater the potential for higher profits and losses. Margin percentages vary from .25% and up. Low margin requirements are great when your trades are good, but not so great when you are wrong. Be realistic about margins and remember that they swing both ways.
• Minimum Trading Size Requirement
The size of one lot may differ from broker to broker, spanning 1,000, 10,000, and 100,000 units. A lot consisting of 100,000 units is called a “standard” lot. A lot consisting of 10,000 units is called a “mini” lot. A lot consisting of 1,000 units is called a “micro” lot. Some brokers even offer fractional unit sizes (called odd lots) which allow you create your own unit size.
• Rollover Charges
Rollover charges are determined by the difference between the interest rate of the country of the base currency and the interest rates of the other country. The greater the interest rate differential between the two currencies in the currency pair, the greater the rollover charge will be. For example, when trading GBP/USD, if the British pound has the greater interest differential with the U.S. dollar, then the rollover charge for holding British pound positions would be the most expensive. On the other hand, if the Swiss Franc were to have the smallest interest differential to the U.S. dollar, then overnight charges for USD/CHF would be the least expensive of the currency pairs.
• Margin Account Interest Rate
Most brokers pay interest on a trader’s margin account. The interest rates normally fluctuate with the prevailing national rates. If you decide to take an extended break from trading, the money in your margin account will be accruing interest. Keep in mind that most brokers DO NOT allow you to accrue interest unless your margin requirement is at least 2% (50:1).
• Trading Hours
Nearly all brokers align their hours of operation to coincide with the hours of operation of the global Forex market: 5:00 pm EST Sunday through 4:00 pm EST Friday.
Other Policies
Be sure to scrutinize a prospective broker’s “fine print” section to be fully aware of all the nuances that a specific broker may impose on a new trader. Finding the right broker is a critical part of the process. It’s not easy and requires some real work on your part. Don’t pick the first one that looks good to you. Keep looking and trying different demo accounts
source: School of Pipsology
policies. These include:
• Available Currency Pairs
You should confirm that the prospective broker offers, at minimum, the seven major currencies (AUD, CAD, CHF, EUR, GBP, JPY, and USD).
• Transaction Costs
Transaction costs are calculated in pips. The lower the number of pips required per trade by the broker, the greater the profit that the trader makes. Comparing pip spreads of half dozen brokers will reveal different transaction costs. For example, the bid/ask spread for EUR/USD is usually 3 pips, but if you can find 2 pips, that’s even better.
• Margin Requirement
The lower the margin requirement (meaning the higher the leverage), the greater the potential for higher profits and losses. Margin percentages vary from .25% and up. Low margin requirements are great when your trades are good, but not so great when you are wrong. Be realistic about margins and remember that they swing both ways.
• Minimum Trading Size Requirement
The size of one lot may differ from broker to broker, spanning 1,000, 10,000, and 100,000 units. A lot consisting of 100,000 units is called a “standard” lot. A lot consisting of 10,000 units is called a “mini” lot. A lot consisting of 1,000 units is called a “micro” lot. Some brokers even offer fractional unit sizes (called odd lots) which allow you create your own unit size.
• Rollover Charges
Rollover charges are determined by the difference between the interest rate of the country of the base currency and the interest rates of the other country. The greater the interest rate differential between the two currencies in the currency pair, the greater the rollover charge will be. For example, when trading GBP/USD, if the British pound has the greater interest differential with the U.S. dollar, then the rollover charge for holding British pound positions would be the most expensive. On the other hand, if the Swiss Franc were to have the smallest interest differential to the U.S. dollar, then overnight charges for USD/CHF would be the least expensive of the currency pairs.
• Margin Account Interest Rate
Most brokers pay interest on a trader’s margin account. The interest rates normally fluctuate with the prevailing national rates. If you decide to take an extended break from trading, the money in your margin account will be accruing interest. Keep in mind that most brokers DO NOT allow you to accrue interest unless your margin requirement is at least 2% (50:1).
• Trading Hours
Nearly all brokers align their hours of operation to coincide with the hours of operation of the global Forex market: 5:00 pm EST Sunday through 4:00 pm EST Friday.
Other Policies
Be sure to scrutinize a prospective broker’s “fine print” section to be fully aware of all the nuances that a specific broker may impose on a new trader. Finding the right broker is a critical part of the process. It’s not easy and requires some real work on your part. Don’t pick the first one that looks good to you. Keep looking and trying different demo accounts
source: School of Pipsology
Online Trading (Trading Currency and Stock Trading)
This blog will give anything information about Forex such forex indikator, forex strategy, forex broker, forex tutorial, ebook forex, and all information about forex. So let's start increase your forex knowledge with this introduction.
What is FOREX? The Foreign Exchange market, also referred to as the "FOREX" or "Forex" or "Retail forex" or “FX” or "Spot FX" or just "Spot" is the largest financial market in the world, with a volume of over $2 trillion a day. If you compare that to the $25 billion a day volume that the New York Stock Exchange trades, you can easily see how enormous the Foreign Exchange really is. It actually eq9 P a g e uates to more than three times the total amount of the stocks and futures markets combined! Forex rocks! What is traded on the Foreign Exchange? The simple answer is money. Forex trading is the simultaneous buying of one currency and the selling of another. Currencies are traded through a broker or dealer, and are traded in pairs; for example the Euro dollar and the US dollar (EUR/USD) or the British pound and the Japanese Yen (GBP/JPY). Because you're not buying anything physical, this kind of trading can be confusing. Think of buying a currency as buying a share in a particular country. When you buy, say, Japanese Yen, you are in effect buying a share in the Japanese economy, as the price of the currency is a direct reflection of what the market thinks about the current and future health of the Japanese economy. In general, the exchange rate of a currency versus other currencies is a reflection of the condition of that country's economy, compared to the other countries' economies. Unlike other financial markets like the New York Stock Exchange, the Forex spot market has neither a physical location nor a central exchange. The Forex market is considered an Over-the-Counter (OTC) or 'Interbank' market, due to the fact that the entire market is run electronically, within a network of banks, continuously over a 24-hour period. Until the late 1990’s, only the “big guys” could play this game. The initial requirement was that you could trade only if you had about ten to fifty million bucks to start with! Forex was originally intended to be used by bankers and large institutions - and not by us “little guys”. However, because of the rise of the Internet, online Forex trading firms are now able to offer trading accounts to 'retail' traders like us. All you need to get started is a computer, a high-speed Internet connection, and the information contained within this site.
What is a Spot Market? A spot market is any market that deals in the current price of a financial instrument. Which Currencies Are Traded? The most popular currencies along with their symbols are shown below: Symbol Country Currency Nickname USD United States Dollar Buck EUR Euro members Euro Fiber JPY Japan Yen Yen GBP Great Britain Pound Cable CHF Switzerland Franc Swissy CAD Canada Dollar Loonie AUD Australia Dollar Aussie NZD New Zealand Dollar Kiwi Forex currency symbols are always three letters, where the first two letters identify the name of the country and the third letter identifies the name of that country’s currency. When Can Currencies Be Traded? The spot FX market is unique within the world markets. It’s like a Super Wal-Mart where the market is open 24-hours a day. At any time, somewhere around the world a financial center is open for business, and banks and other institutions exchange currencies every hour of the day and night with generally only minor gaps on the weekend. The foreign exchange markets follow the sun around the world, so you can trade late at night (if you’re a vampire) or in the morning (if you’re an early bird). Keep in mind though, the early bird doesn’t necessarily get the worm in this market - you might get the worm but a bigger, nastier bird of prey can sneak up and eat you too… Time Zone New York GMT Tokyo Open 7:00 pm 0:00 Tokyo Close 4:00 am 9:00 London Open 3:00 am 8:00 London Close 12:00 pm 17:00 New York Open 8:00 am 13:00 New York Close 5:00 pm 22:00
source: school of pipsology
What is FOREX? The Foreign Exchange market, also referred to as the "FOREX" or "Forex" or "Retail forex" or “FX” or "Spot FX" or just "Spot" is the largest financial market in the world, with a volume of over $2 trillion a day. If you compare that to the $25 billion a day volume that the New York Stock Exchange trades, you can easily see how enormous the Foreign Exchange really is. It actually eq9 P a g e uates to more than three times the total amount of the stocks and futures markets combined! Forex rocks! What is traded on the Foreign Exchange? The simple answer is money. Forex trading is the simultaneous buying of one currency and the selling of another. Currencies are traded through a broker or dealer, and are traded in pairs; for example the Euro dollar and the US dollar (EUR/USD) or the British pound and the Japanese Yen (GBP/JPY). Because you're not buying anything physical, this kind of trading can be confusing. Think of buying a currency as buying a share in a particular country. When you buy, say, Japanese Yen, you are in effect buying a share in the Japanese economy, as the price of the currency is a direct reflection of what the market thinks about the current and future health of the Japanese economy. In general, the exchange rate of a currency versus other currencies is a reflection of the condition of that country's economy, compared to the other countries' economies. Unlike other financial markets like the New York Stock Exchange, the Forex spot market has neither a physical location nor a central exchange. The Forex market is considered an Over-the-Counter (OTC) or 'Interbank' market, due to the fact that the entire market is run electronically, within a network of banks, continuously over a 24-hour period. Until the late 1990’s, only the “big guys” could play this game. The initial requirement was that you could trade only if you had about ten to fifty million bucks to start with! Forex was originally intended to be used by bankers and large institutions - and not by us “little guys”. However, because of the rise of the Internet, online Forex trading firms are now able to offer trading accounts to 'retail' traders like us. All you need to get started is a computer, a high-speed Internet connection, and the information contained within this site.
What is a Spot Market? A spot market is any market that deals in the current price of a financial instrument. Which Currencies Are Traded? The most popular currencies along with their symbols are shown below: Symbol Country Currency Nickname USD United States Dollar Buck EUR Euro members Euro Fiber JPY Japan Yen Yen GBP Great Britain Pound Cable CHF Switzerland Franc Swissy CAD Canada Dollar Loonie AUD Australia Dollar Aussie NZD New Zealand Dollar Kiwi Forex currency symbols are always three letters, where the first two letters identify the name of the country and the third letter identifies the name of that country’s currency. When Can Currencies Be Traded? The spot FX market is unique within the world markets. It’s like a Super Wal-Mart where the market is open 24-hours a day. At any time, somewhere around the world a financial center is open for business, and banks and other institutions exchange currencies every hour of the day and night with generally only minor gaps on the weekend. The foreign exchange markets follow the sun around the world, so you can trade late at night (if you’re a vampire) or in the morning (if you’re an early bird). Keep in mind though, the early bird doesn’t necessarily get the worm in this market - you might get the worm but a bigger, nastier bird of prey can sneak up and eat you too… Time Zone New York GMT Tokyo Open 7:00 pm 0:00 Tokyo Close 4:00 am 9:00 London Open 3:00 am 8:00 London Close 12:00 pm 17:00 New York Open 8:00 am 13:00 New York Close 5:00 pm 22:00
source: school of pipsology
Daily Forex
Written by Ilya Spivak, Currency Analyst
The Reserve Bank of Australia kept interest rates on hold at 3% as expected but said that there is still “scope for further easing of monetary policy” and identified credit conditions and the effects of economic weakness on asset quality as “a challenge”. May’s UK industrial production report headlines the calendar in European hours.
The Reserve Bank of Australia kept interest rates on hold at 3%, as expected. In the statement accompanying the announcement, Governor Glenn Stevens sounded notably more aloof compared to recent months, saying that “credit conditions remain tight and the effects of economic weakness on asset quality present a challenge.” Stevens added that the bank sees “the outlook for inflation allows some scope for further easing of monetary policy, if needed…[and will] monitor how economic and financial conditions unfold and how they impinge on prospects for a sustainable recovery in economic activity.” The RBA chief also noted that firmer growth in China has helped Australia and noted tentative evidence the US is approaching a “turning point”, though Europe is “still weakening”. Stevens concluded that a durable recovery is contingent on “continued progress in restoring balance sheets.”
The Reserve Bank of Australia kept interest rates on hold at 3% as expected but said that there is still “scope for further easing of monetary policy” and identified credit conditions and the effects of economic weakness on asset quality as “a challenge”. May’s UK industrial production report headlines the calendar in European hours.
The Reserve Bank of Australia kept interest rates on hold at 3%, as expected. In the statement accompanying the announcement, Governor Glenn Stevens sounded notably more aloof compared to recent months, saying that “credit conditions remain tight and the effects of economic weakness on asset quality present a challenge.” Stevens added that the bank sees “the outlook for inflation allows some scope for further easing of monetary policy, if needed…[and will] monitor how economic and financial conditions unfold and how they impinge on prospects for a sustainable recovery in economic activity.” The RBA chief also noted that firmer growth in China has helped Australia and noted tentative evidence the US is approaching a “turning point”, though Europe is “still weakening”. Stevens concluded that a durable recovery is contingent on “continued progress in restoring balance sheets.”
Saturday, July 4, 2009
Forex Rates
| ||
Currency | Buying | Selling |
| Australian Dollar | 64.10 | 65.40 |
| Canadian Dollar | 69.40 | 70.60 |
| China Yuan | 11.25 | 12.00 |
| Euro | 113.20 | 115.20 |
| Japanese Yen | 0.8370 | 0.8470 |
| Saudi Riyal | 21.58 | 21.78 |
| U.A.E Dirham | 22.08 | 22.28 |
| UK Pound Sterling | 132.50 | 134.50 |
| US Dollar | 81.45 | 81.75 |
Friday, July 3, 2009
Forex Software Link
you can download the software from
http://www.fxcm.com/forex-software-download.jsp
http://www.fxcm.com/forex-software-download.jsp
Trading Concepts
The first concept presented is trend-following. The basic idea here is that you buy what's clearly going up and sell it when it stops. Similarly, you sell-short what's clearly going down and you buy it back when it stops. And the key to doing so is practicing low-risk ideas and having some method by which you define when to enter and exit according to this concept. (And those ideas are discussed extensively in other chapters of the book).
The next concept is fundamental analysis. The basic idea here is based upon the supply/demand concept in economics. You need to analyze the market for where demand may exist and buy that (ideally, before it occurs). And when you think the price is high enough that demand might drop off, you sell it. Now you could assume that when the supply is low that demand will increase and start the market moving, but that isn't always the case. Let me give you an example in an area that I know well, rare U.S. stamps. There are certain 19th century stamps that were issued in a very limited supply and less than 100 are know to exist. However, there isn't much demand for these stamps, so the prices on these stamps are pretty reasonable. On the other hand, if just 50 collectors were willing to spend $100,000 on very rare U.S. 19th century stamps the prices of these stamps would go up 10 fold or more.
Value trading is the next concept and it basically says that you buy things that are way undervalued, assuming that one day the market will catch up with value. There are probably 1000's of ways to value stocks and some are more useful that others. And if you decide you like value trading, then your job is to find one of the more useful methods, some of which are suggested in the chapter.
Band trading makes the assumption that certain instruments (stocks or commodities or currencies) trade in bands. You buy something when it touches/crosses/gets close to the lower band and sell it when it does the same for the upper band. And it doesn't matter which order you do it in. However, the key to band trading is to understand how to develop useful bands.
The next concept is how to trade seasonal tendencies. Perhaps the real key to understanding seasonal tendencies is that what you find must have a fundamental basis of its existence. You can always use a computer to find meaningless correlations, such as if you'd bought XYZ in the last week in March, it went up for the next three days in 18 of the last 20 years. That could easily be a statistical fluke. What you are looking for is more like, "The stock market tends to go up between November and May because pension money tends to pour into the market during that period."
Spreading really gets into the realm of the professional trader who can create long and short positions with a lot of potential to move but with a much lower risk profile. For example, you can buy a December option and short the March option. You can buy one currency and short another. These are common practices among professionals who can do large trades very cheaply.
Arbitrage is another area that is practiced primarily by professionals. Here you find some loophole in the way things are done that gives you a huge edge. For example, one of my clients discovered (before currency trading was available) that he could buy sugar in London in pounds and in New York in dollars. Thus, he would spread the two markets in order to trade the dollar pound relationship and he was the only one doing it. He said that in those days that he'd have to unload one of his spreads if anyone wanted to trade sugar. Of course, this didn't last too long because people figured out what he was doing. But while it lasted, he said, it was like taking candy from a baby. The secret to arbitrage, of course, is to be able to find the loopholes and to be able to figure out how to capitalize on the loophole.
The next concept is Intermarket Analysis. Here, we make the assumption that the price of one commodity (or product) is a function of what many other commodities are doing at the same time. It's not just a simple relationship between a few things. Thus, gold might be related to the price of oil, silver, the dollar, and a number of other currencies. And these relationships change over time. Thus, the key to trading this concept is being able to simultaneously evaluate a number of different inputs to find the relationships that currently exist. And, of course, this just sets up the relationship that now exists, you then have to practice the key low-risk idea concepts common to all concepts to make money from the relationship.
The last concept presented in chapter 5 is the "there is an order to the universe" concept. Here there are a number of sub-concepts including: 1) waves of human emotion; 2) physical events that might influence human behavior; and 3) a mathematical order to the universe. Any of these concepts can be traded if they fit you and you practice the appropriate low-risk ideas.
One thing I found in common with all of these concepts is that they basically describe the setups that one might have for entry. Setups are such a small part of trading, but because people think that "picking the right investment" is so important, all of these types of concepts were developed. And trading styles are actually named after the setup.
Dr. Van K Tharp
The next concept is fundamental analysis. The basic idea here is based upon the supply/demand concept in economics. You need to analyze the market for where demand may exist and buy that (ideally, before it occurs). And when you think the price is high enough that demand might drop off, you sell it. Now you could assume that when the supply is low that demand will increase and start the market moving, but that isn't always the case. Let me give you an example in an area that I know well, rare U.S. stamps. There are certain 19th century stamps that were issued in a very limited supply and less than 100 are know to exist. However, there isn't much demand for these stamps, so the prices on these stamps are pretty reasonable. On the other hand, if just 50 collectors were willing to spend $100,000 on very rare U.S. 19th century stamps the prices of these stamps would go up 10 fold or more.
Value trading is the next concept and it basically says that you buy things that are way undervalued, assuming that one day the market will catch up with value. There are probably 1000's of ways to value stocks and some are more useful that others. And if you decide you like value trading, then your job is to find one of the more useful methods, some of which are suggested in the chapter.
Band trading makes the assumption that certain instruments (stocks or commodities or currencies) trade in bands. You buy something when it touches/crosses/gets close to the lower band and sell it when it does the same for the upper band. And it doesn't matter which order you do it in. However, the key to band trading is to understand how to develop useful bands.
The next concept is how to trade seasonal tendencies. Perhaps the real key to understanding seasonal tendencies is that what you find must have a fundamental basis of its existence. You can always use a computer to find meaningless correlations, such as if you'd bought XYZ in the last week in March, it went up for the next three days in 18 of the last 20 years. That could easily be a statistical fluke. What you are looking for is more like, "The stock market tends to go up between November and May because pension money tends to pour into the market during that period."
Spreading really gets into the realm of the professional trader who can create long and short positions with a lot of potential to move but with a much lower risk profile. For example, you can buy a December option and short the March option. You can buy one currency and short another. These are common practices among professionals who can do large trades very cheaply.
Arbitrage is another area that is practiced primarily by professionals. Here you find some loophole in the way things are done that gives you a huge edge. For example, one of my clients discovered (before currency trading was available) that he could buy sugar in London in pounds and in New York in dollars. Thus, he would spread the two markets in order to trade the dollar pound relationship and he was the only one doing it. He said that in those days that he'd have to unload one of his spreads if anyone wanted to trade sugar. Of course, this didn't last too long because people figured out what he was doing. But while it lasted, he said, it was like taking candy from a baby. The secret to arbitrage, of course, is to be able to find the loopholes and to be able to figure out how to capitalize on the loophole.
The next concept is Intermarket Analysis. Here, we make the assumption that the price of one commodity (or product) is a function of what many other commodities are doing at the same time. It's not just a simple relationship between a few things. Thus, gold might be related to the price of oil, silver, the dollar, and a number of other currencies. And these relationships change over time. Thus, the key to trading this concept is being able to simultaneously evaluate a number of different inputs to find the relationships that currently exist. And, of course, this just sets up the relationship that now exists, you then have to practice the key low-risk idea concepts common to all concepts to make money from the relationship.
The last concept presented in chapter 5 is the "there is an order to the universe" concept. Here there are a number of sub-concepts including: 1) waves of human emotion; 2) physical events that might influence human behavior; and 3) a mathematical order to the universe. Any of these concepts can be traded if they fit you and you practice the appropriate low-risk ideas.
One thing I found in common with all of these concepts is that they basically describe the setups that one might have for entry. Setups are such a small part of trading, but because people think that "picking the right investment" is so important, all of these types of concepts were developed. And trading styles are actually named after the setup.
Dr. Van K Tharp
Forex Trading
Foreign Exchange
This short introduction explains the basics of trading Forex online, a brief explanation of the markets and the major benefits of trading Forex online. There are also two scenarios describing the implications of trading in a bear as well as a bull market to better acquaint you with some of the risks and opportunities of the largest and most liquid market in the world.
This short introduction explains the basics of trading Forex online, a brief explanation of the markets and the major benefits of trading Forex online. There are also two scenarios describing the implications of trading in a bear as well as a bull market to better acquaint you with some of the risks and opportunities of the largest and most liquid market in the world.
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