Forex Market Information Easily Accessible: There is a lot of information in stocks and also in forex. A trader research more on stock market to find trade opportunities but stock is simple to find trading opportunities. Additionally, the vital information that moves equity markets, such as revenues and profits, is proprietary and private. In contrast, virtually all of the news that bears on the forex market is in publicly disseminated reports from governments or research institutions, and released to everybody at the same time.
We feel that the knowledge you've gained in analyzing stocks can easily be transferred to the forex market. Many of the economic indicators familiar to equity traders, such as payroll data and interest rates, affect the currency markets. And many technical traders have found the forex market to be particularly attractive, since currencies respond well to many of the common technical indicators, such as MACD, RSI, and Candlestick charting.
To learn more about transitioning from trading equity markets to trading in the Forex market, contact the FXCM staff today at 888-503-6739.
Pay No Commissions: In the forex market costs are confined to the bid-ask spread. FXCM charges no commission or additional transaction fees, and its customer's trade on spreads provided to FXCM by some of the world's largest banks via the FX Trading Station. In the stock market, "no-fee" programs are frequently offered only with provisos mandating minimum account balances or minimum trades per month.
No Uptick Rule: Unlike the equity market, there is no restriction on short selling in the forex currency market, no matter which way the market is moving. Since currency trading involves buying one currency and selling another, a trader has the same ability to trade in a rising market as in a falling one.
Trade Around the Clock: The forex market is a near-seamless 24-hour market. Subject to available liquidity, FXCM offers trading from Sunday, starting after 5:15 PM EST, until Friday, 4PM, EST (FXCM Client Service is available 24/7). With the ability to trade around the clock, currency traders have the advantage of customizing their own trading schedule; they can usually get in or out of the market at any time without waiting for an opening bell or encountering a market gap. While trading stocks after usual market hours is possible, very often that possibility is negated by a lack of order flow or a drastic widening of the bid-ask spread.
http://www.forextradinglead.blogspot.com
Tuesday, December 29, 2009
Friday, December 18, 2009
Global Forex Trading:- 3 powerful ways to be the best in forex trading
Someone sometimes ago ask me "Dr Forex" how can I be the best in my trading method. I told him you can be the best in everything you do if you can believe it and know that you are the best. Get these tips and had it to your trading plan.
(1) Your thought is powerful weapon to make cash from global forex trading when you get to the platform. Think, analyze and create before the trade and when you enter into the market apply everything that you have, think about and make sure you are emotionally balanced that means you are not under any pressure, and make sure you have make right decisions. So that you can make the amount you have targeted from the trade is why you planned the trade before hand. In the simple statement follow your thought.
(2) Know where the market is going:- that's know the movement of the price before you enter into any market. Know when to think, trade, and not to trade. Know the entering point and the exit point of the market. As a currency market is going p or down, what you care about is where the price is going to make cash. Many people are having problem in trading today because they can not figure out their right position, they sell when to buy and buy when to sell, that's means you are loosing and the funny think is that people lose without knowing that's why you must know the rule of the forex. You know playing a game without knowing the rule is like loosing without knowing.
(3) Have a trading plan:- that means trade a plan that best suit your treading method. Know the type of traders you are, are you a day trader or swing trader or long time trader. So when you know and plan the type of trader you want to become then work and gather information on it. If you are a day trader I think 20 pips is go for you a day. But be sure to develop yourself to according to the time you at your disposal. That yourself and if you are full time trader, you should know the type of information you must get.
(4) Currency:- every currency have there pairs and "personality" that means volatility, spread, average daily range. So know each pair very well, study them to know their strength and when to trade them. Use trading strategies that go hand in hand with the characteristics of the currency pair. Get more info
http://www.forextradinglead.blogspot.com
(1) Your thought is powerful weapon to make cash from global forex trading when you get to the platform. Think, analyze and create before the trade and when you enter into the market apply everything that you have, think about and make sure you are emotionally balanced that means you are not under any pressure, and make sure you have make right decisions. So that you can make the amount you have targeted from the trade is why you planned the trade before hand. In the simple statement follow your thought.
(2) Know where the market is going:- that's know the movement of the price before you enter into any market. Know when to think, trade, and not to trade. Know the entering point and the exit point of the market. As a currency market is going p or down, what you care about is where the price is going to make cash. Many people are having problem in trading today because they can not figure out their right position, they sell when to buy and buy when to sell, that's means you are loosing and the funny think is that people lose without knowing that's why you must know the rule of the forex. You know playing a game without knowing the rule is like loosing without knowing.
(3) Have a trading plan:- that means trade a plan that best suit your treading method. Know the type of traders you are, are you a day trader or swing trader or long time trader. So when you know and plan the type of trader you want to become then work and gather information on it. If you are a day trader I think 20 pips is go for you a day. But be sure to develop yourself to according to the time you at your disposal. That yourself and if you are full time trader, you should know the type of information you must get.
(4) Currency:- every currency have there pairs and "personality" that means volatility, spread, average daily range. So know each pair very well, study them to know their strength and when to trade them. Use trading strategies that go hand in hand with the characteristics of the currency pair. Get more info
http://www.forextradinglead.blogspot.com
Sunday, December 6, 2009
LEARN FOREX: What is forex trading?
Dear readers, I hope you really gained a lot from my previous writing. In recent times, there has been a misconception about the forex market and that's why I'm here to clear the air.
What is FOREX TRADING? IT is simply trading the major currencies of the world at the foreign exchange market which is open 24hours, 5days a week. What is traded on the forex market? The answer is money; forex trading is where the currency of one nation is traded for that of another.
Therefore, forex trading is always traded in pairs and most commonly traded currency pairs are traded against the U.S dollar (USD). They are called the majors. The major currency pairs are the Euro against the dollar (EUK/USD): the British pound against the dollar (GBP/USD): the dollar against the Japanese Yen (USD/JPY): and the dollar against the Swiss France (USD/CHF). The notable commodity currency pairs traded are the Canadian dollar (USD/CAD) and the Australian dollar (AUD/USD). Because there is no central exchange for the forex market, these pairs and their crosses are traded over the telephone and online through a global network of Banks, Multinational Corporations, Importers and exporters, brokers and currency traders. But if you really want to make it big in the forex market, I will strongly advise that as a "beginner" in the business kindly get acquainted with one or two major currency pairs. Study them very well and make sure you understand their volatility period.
And to further simplify forex trading you could easily limit your trading to the two most liquid and widely traded pairs, the EUR/USD and the GBP/USD. This really starts to reduce demand on your time for trading activities without giving up good profit potential.
Traditionally, currency trading has been a professional's only market, available exclusively to banks and large institutions. However, because of the invention of the new economy, online forex trading firms are now able to offer trading accounts to "retail" traders like you and I. Now almost anyone with a computer and an internet connection can trade currencies just like the world's largest banks do.
Dear readers, I hope you really gained a lot from my previous writing. In recent times, there has been a misconception about the forex market and that's why I'm here to clear the air.
What is FOREX TRADING? IT is simply trading the major currencies of the world at the foreign exchange market which is open 24hours, 5days a week. What is traded on the forex market? The answer is money; forex trading is where the currency of one nation is traded for that of another.
Therefore, forex trading is always traded in pairs and most commonly traded currency pairs are traded against the U.S dollar (USD). They are called the majors. The major currency pairs are the Euro against the dollar (EUK/USD): the British pound against the dollar (GBP/USD): the dollar against the Japanese Yen (USD/JPY): and the dollar against the Swiss France (USD/CHF). The notable commodity currency pairs traded are the Canadian dollar (USD/CAD) and the Australian dollar (AUD/USD). Because there is no central exchange for the forex market, these pairs and their crosses are traded over the telephone and online through a global network of Banks, Multinational Corporations, Importers and exporters, brokers and currency traders. But if you really want to make it big in the forex market, I will strongly advise that as a "beginner" in the business kindly get acquainted with one or two major currency pairs. Study them very well and make sure you understand their volatility period.
And to further simplify forex trading you could easily limit your trading to the two most liquid and widely traded pairs, the EUR/USD and the GBP/USD. This really starts to reduce demand on your time for trading activities without giving up good profit potential.
Traditionally, currency trading has been a professional's only market, available exclusively to banks and large institutions. However, because of the invention of the new economy, online forex trading firms are now able to offer trading accounts to "retail" traders like you and I. Now almost anyone with a computer and an internet connection can trade currencies just like the world's largest banks do.
http://www.forextradinglead.blogspot.com
What is FOREX TRADING? IT is simply trading the major currencies of the world at the foreign exchange market which is open 24hours, 5days a week. What is traded on the forex market? The answer is money; forex trading is where the currency of one nation is traded for that of another.
Therefore, forex trading is always traded in pairs and most commonly traded currency pairs are traded against the U.S dollar (USD). They are called the majors. The major currency pairs are the Euro against the dollar (EUK/USD): the British pound against the dollar (GBP/USD): the dollar against the Japanese Yen (USD/JPY): and the dollar against the Swiss France (USD/CHF). The notable commodity currency pairs traded are the Canadian dollar (USD/CAD) and the Australian dollar (AUD/USD). Because there is no central exchange for the forex market, these pairs and their crosses are traded over the telephone and online through a global network of Banks, Multinational Corporations, Importers and exporters, brokers and currency traders. But if you really want to make it big in the forex market, I will strongly advise that as a "beginner" in the business kindly get acquainted with one or two major currency pairs. Study them very well and make sure you understand their volatility period.
And to further simplify forex trading you could easily limit your trading to the two most liquid and widely traded pairs, the EUR/USD and the GBP/USD. This really starts to reduce demand on your time for trading activities without giving up good profit potential.
Traditionally, currency trading has been a professional's only market, available exclusively to banks and large institutions. However, because of the invention of the new economy, online forex trading firms are now able to offer trading accounts to "retail" traders like you and I. Now almost anyone with a computer and an internet connection can trade currencies just like the world's largest banks do.
Dear readers, I hope you really gained a lot from my previous writing. In recent times, there has been a misconception about the forex market and that's why I'm here to clear the air.
What is FOREX TRADING? IT is simply trading the major currencies of the world at the foreign exchange market which is open 24hours, 5days a week. What is traded on the forex market? The answer is money; forex trading is where the currency of one nation is traded for that of another.
Therefore, forex trading is always traded in pairs and most commonly traded currency pairs are traded against the U.S dollar (USD). They are called the majors. The major currency pairs are the Euro against the dollar (EUK/USD): the British pound against the dollar (GBP/USD): the dollar against the Japanese Yen (USD/JPY): and the dollar against the Swiss France (USD/CHF). The notable commodity currency pairs traded are the Canadian dollar (USD/CAD) and the Australian dollar (AUD/USD). Because there is no central exchange for the forex market, these pairs and their crosses are traded over the telephone and online through a global network of Banks, Multinational Corporations, Importers and exporters, brokers and currency traders. But if you really want to make it big in the forex market, I will strongly advise that as a "beginner" in the business kindly get acquainted with one or two major currency pairs. Study them very well and make sure you understand their volatility period.
And to further simplify forex trading you could easily limit your trading to the two most liquid and widely traded pairs, the EUR/USD and the GBP/USD. This really starts to reduce demand on your time for trading activities without giving up good profit potential.
Traditionally, currency trading has been a professional's only market, available exclusively to banks and large institutions. However, because of the invention of the new economy, online forex trading firms are now able to offer trading accounts to "retail" traders like you and I. Now almost anyone with a computer and an internet connection can trade currencies just like the world's largest banks do.
http://www.forextradinglead.blogspot.com
Saturday, November 28, 2009
DAY TRADING: Make $500 daily for 1hour
With your goals for making your millions trading forex in six months set, you need next to have a trading routine to work with. A trading routine is another of the six components of a decent trading plan. There are basically 3 subcomponents of a trading routine: Preparation and thinking time (when you get up each day to prepare for each days' trading activities). Events watching/Trading time (when you would be in the market to watch and probably cash in on the trading opportunities you previewed or analyzed earlier). Evaluation Time (when to sit back and evaluate your trading day and activities: time to correct error and mistakes and pick up new disciplines)
We cover the details right away with a guide on how to trade just for one hour daily. For those who by nature of their job and business do not have the time to sit in front of the computer all day they will gain a lot by following this guide and routine in planning their trading activities without jeopardizing their current business.
At all begins with you sitting down, perhaps with your loved ones and family and deciding what you want to achieve with trading. Once you have determined what it is you want to achieve through trading, come up with a schedule, which, of course, should be drawn with your current job or business schedule in mind. You want to be sure there are no clashes of interest. Nothing can be so detrimental to a business like divided attention or interest.
The preparation stage: what do you do at this time? This has to do with when you have decided that you daily preview the economic calendar for the day or week. There is no hard and fast rule to this since it all depends on your trading psychology and the type of trader you really are; you may be any of intra-day trader, day trader, swing trader or position trader, I will present his guide with a day trader, this is the stage when you have to do a preview of the economic calendar for the day and decide on the event or events you would like to watch and probably trade. Other thing to do during this time include: psyching yourself and preparing your mind for what to except and of course setting up your entry and exit price levels using either pivot points analysis or the Fibonacci retracement and extension.
Idowu Samuel
http://www.forextradinglead.blogspot.com
We cover the details right away with a guide on how to trade just for one hour daily. For those who by nature of their job and business do not have the time to sit in front of the computer all day they will gain a lot by following this guide and routine in planning their trading activities without jeopardizing their current business.
At all begins with you sitting down, perhaps with your loved ones and family and deciding what you want to achieve with trading. Once you have determined what it is you want to achieve through trading, come up with a schedule, which, of course, should be drawn with your current job or business schedule in mind. You want to be sure there are no clashes of interest. Nothing can be so detrimental to a business like divided attention or interest.
The preparation stage: what do you do at this time? This has to do with when you have decided that you daily preview the economic calendar for the day or week. There is no hard and fast rule to this since it all depends on your trading psychology and the type of trader you really are; you may be any of intra-day trader, day trader, swing trader or position trader, I will present his guide with a day trader, this is the stage when you have to do a preview of the economic calendar for the day and decide on the event or events you would like to watch and probably trade. Other thing to do during this time include: psyching yourself and preparing your mind for what to except and of course setting up your entry and exit price levels using either pivot points analysis or the Fibonacci retracement and extension.
Idowu Samuel
http://www.forextradinglead.blogspot.com
Friday, July 24, 2009
MILLENNIUMIT UNVEILS WORLD'S FASTEST TRADING PLATFORM ON INTEL(R) XEON(R) 5500 SERIES PROCESSORS
Millennium Information Technologies (MillenniumIT) unveiled a revolutionary new release of its trading platform this week. It possesses ultra fast order processing capabilities, making it the world's fastest trading platform. During the project, MillenniumIT collaborated with Intel Corporation to achieve a 130 micro second order latency using the Intel(R) Xeon(R) 5500 processors. These tests were conducted at Intel's fasterLAB facility near London UK.
Today, Exchanges must cope with the rapid rise in volumes of high-frequency trading. In the US, trading volumes attributable to high-frequency trading have grown to 73% from 40% a year ago. This means that Exchanges having trading systems with the lowest latency -- the time between when an order is received, processed and an acknowledgement sent -- will retain and grow market share.
Traditional approaches to trading system design cannot deliver the required extreme low latency and high volumes at commercially viable cost points. MillenniumIT's unique rule-based event processing pipeline enabled the system to be deployed and run on inexpensive volume-produced two socket servers, far surpassing the performance of traditional trading systems.
"We registered a 130 micro second order latency in the first benchmark run, and expect this figure to drop by another 40 micro seconds when the final platform specific tuning is done," said Ajit Samaranayake, Chief Scientist at MillenniumIT. The latency measurements were conducted using a day's orders and trading rules from a tier 1 stock exchange.
Nigel Woodward, Global Director Financial Services at Intel, comments, "Working to optimize latency performance in the venue space is a natural extension of our lab-based work to date around sell-side functions," Woodward said "Our engineers worked closely to ensure that the features of the processor could be utilized by Millennium software . The results coming out of this iterative activity prove the importance of this technical collaboration where we have worked with the highly threaded code across multi-core processors to achieve both latency and throughput. We are excited by the prospect of working with Millennium to take this area of the trade life cycle market to a new point in price performance -- contributing to the paradigm shift in the technology strategies that have been deployed in this area to date."
The ability to process 1 million orders/second using volume produced Intel 2 socket Nehalem servers in a full fault tolerant configuration is now a commercial reality at a very affordable price point.
"Low Latency trading systems with latencies in the microseconds will soon become a commodity," says Tony Weeresinghe the CEO of MillenniumIT. The key to success of exchanges in the future are not only faster trading but also having the flexibility to respond to market demand with new order types and products. This, together with a lower operational cost base will help exchanges to stay ahead of their competition. "This is where MillenniumIT differentiates itself. We achieved this low latency with a software-only solution, without hardware acceleration," says Weeresinghe.
With its patented BID tool which facilitates rapid changes to business rules, exchanges can adapt swiftly to changing market conditions. "The goal is to get the latencies under 100 micro seconds," stated Weeresinghe. He also mentioned that Intel and MillenniumIT will keep this low-latency facility available to any exchange or high frequency trading house to perform their benchmarks.
About MillenniumIT MillenniumIT is a premier technology solutions provider serving the global capital markets industry. The Company's products currently powers exchanges, depositories, brokerages and regulatory bodies in the United States, Europe, Africa and the Asia-Pacific region.
MillenniumIT supplies, implements and supports a suite of capital market products that include trading platforms, Smart Order Routers (SOR), surveillance, clearing and CSD Products. These products cater to trading multiple asset classes including equities, derivatives, debt, commodities, forex, structured products and exchange-traded funds.
Today, Exchanges must cope with the rapid rise in volumes of high-frequency trading. In the US, trading volumes attributable to high-frequency trading have grown to 73% from 40% a year ago. This means that Exchanges having trading systems with the lowest latency -- the time between when an order is received, processed and an acknowledgement sent -- will retain and grow market share.
Traditional approaches to trading system design cannot deliver the required extreme low latency and high volumes at commercially viable cost points. MillenniumIT's unique rule-based event processing pipeline enabled the system to be deployed and run on inexpensive volume-produced two socket servers, far surpassing the performance of traditional trading systems.
"We registered a 130 micro second order latency in the first benchmark run, and expect this figure to drop by another 40 micro seconds when the final platform specific tuning is done," said Ajit Samaranayake, Chief Scientist at MillenniumIT. The latency measurements were conducted using a day's orders and trading rules from a tier 1 stock exchange.
Nigel Woodward, Global Director Financial Services at Intel, comments, "Working to optimize latency performance in the venue space is a natural extension of our lab-based work to date around sell-side functions," Woodward said "Our engineers worked closely to ensure that the features of the processor could be utilized by Millennium software . The results coming out of this iterative activity prove the importance of this technical collaboration where we have worked with the highly threaded code across multi-core processors to achieve both latency and throughput. We are excited by the prospect of working with Millennium to take this area of the trade life cycle market to a new point in price performance -- contributing to the paradigm shift in the technology strategies that have been deployed in this area to date."
The ability to process 1 million orders/second using volume produced Intel 2 socket Nehalem servers in a full fault tolerant configuration is now a commercial reality at a very affordable price point.
"Low Latency trading systems with latencies in the microseconds will soon become a commodity," says Tony Weeresinghe the CEO of MillenniumIT. The key to success of exchanges in the future are not only faster trading but also having the flexibility to respond to market demand with new order types and products. This, together with a lower operational cost base will help exchanges to stay ahead of their competition. "This is where MillenniumIT differentiates itself. We achieved this low latency with a software-only solution, without hardware acceleration," says Weeresinghe.
With its patented BID tool which facilitates rapid changes to business rules, exchanges can adapt swiftly to changing market conditions. "The goal is to get the latencies under 100 micro seconds," stated Weeresinghe. He also mentioned that Intel and MillenniumIT will keep this low-latency facility available to any exchange or high frequency trading house to perform their benchmarks.
About MillenniumIT MillenniumIT is a premier technology solutions provider serving the global capital markets industry. The Company's products currently powers exchanges, depositories, brokerages and regulatory bodies in the United States, Europe, Africa and the Asia-Pacific region.
MillenniumIT supplies, implements and supports a suite of capital market products that include trading platforms, Smart Order Routers (SOR), surveillance, clearing and CSD Products. These products cater to trading multiple asset classes including equities, derivatives, debt, commodities, forex, structured products and exchange-traded funds.
Monday, May 11, 2009
Free Forex Signals - Learn the Secrets to Forex Trading
Forex signals is deemed as one of the most essential factors that are given greater stress and emphasis when you hit the trade market. As a lot of people begin to rely on forex signals to provide them with a clear strategy, so as the search for free forex signals begin. True enough, there are various providers that give free signals however; this is considered short term reliefs since you never know when these free providers are going to pull the plug and the last thing you know everything's over. Therefore, you have to secure a kind of forex signal that will not only allow you to have free access to exchange currency market but also the ways on improving your skills.
Free forex signals served greater purpose of providing traders with the accurate signals that allows them to trail on repeated patterns and through this generate a prediction of how will the currency move. This is of the essence since as you begin to do your trade chances of acquiring a wrong move is inevitable and you will be left with nothing but to go back to square one and try your luck on your next trade. However, with free forex signals, you no longer have to endure anxiousness when trading as accurate signals are transmitted on your database.
Serious forex traders have greatly rely on free forex signals apart from its greater outcome, one of the most gleaned factor is its ability to reward traders with profits that they never imagine they can get. You can also try on investing forex signals and make this your partner for lifetime. As people would prefer to have subscription rather than the free ones it is never difficult to find one for your trade.
Accurate signals have become the indicators of the market's flow and behavior. These signals serve as your eye in the entire course of your foreign exchange dealings. Some of the factors that are provided by the forex signals are forex patterns, currency pairs, breakouts and Fibonacci levels. These are some of the things to look at when you are in a trade. This is precisely the reason why a trader without sufficient knowledge of the market will do no good in his dealings. These signals also provide traders of the idyllic timing when it comes to buying and selling currencies. The forex signal provides you with various information and recommendation if it would be favorable to buy or sell your currency.
This type of recommendation is given by your provider or if you employ a broker then you most likely receive signals through an agent.
Forex signals are generally given on a daily updated basis and all are contingent on factual market analysis and behavioral flow and not on mere hearsays and other speculations.
Looking at the practical side, it would be a best option to go by free forex signals however, if you have the financial means to fund a subscription then you may acquire for one. But regardless of it being free or not, the underlying principle relies on the fact that forex signals are your way towards unleashing the secrets of forex trading.
Reference: John Callingham
Free forex signals served greater purpose of providing traders with the accurate signals that allows them to trail on repeated patterns and through this generate a prediction of how will the currency move. This is of the essence since as you begin to do your trade chances of acquiring a wrong move is inevitable and you will be left with nothing but to go back to square one and try your luck on your next trade. However, with free forex signals, you no longer have to endure anxiousness when trading as accurate signals are transmitted on your database.
Serious forex traders have greatly rely on free forex signals apart from its greater outcome, one of the most gleaned factor is its ability to reward traders with profits that they never imagine they can get. You can also try on investing forex signals and make this your partner for lifetime. As people would prefer to have subscription rather than the free ones it is never difficult to find one for your trade.
Accurate signals have become the indicators of the market's flow and behavior. These signals serve as your eye in the entire course of your foreign exchange dealings. Some of the factors that are provided by the forex signals are forex patterns, currency pairs, breakouts and Fibonacci levels. These are some of the things to look at when you are in a trade. This is precisely the reason why a trader without sufficient knowledge of the market will do no good in his dealings. These signals also provide traders of the idyllic timing when it comes to buying and selling currencies. The forex signal provides you with various information and recommendation if it would be favorable to buy or sell your currency.
This type of recommendation is given by your provider or if you employ a broker then you most likely receive signals through an agent.
Forex signals are generally given on a daily updated basis and all are contingent on factual market analysis and behavioral flow and not on mere hearsays and other speculations.
Looking at the practical side, it would be a best option to go by free forex signals however, if you have the financial means to fund a subscription then you may acquire for one. But regardless of it being free or not, the underlying principle relies on the fact that forex signals are your way towards unleashing the secrets of forex trading.
Reference: John Callingham
Sunday, May 10, 2009
Forex Exchange-Learn the Inside Secrets to Forex Trading
Any business is a risky business. There is no perfect formula at the start of each financial venture, like forex exchange. But the famous and successful businessmen, investors, and traders, who have been in the business industry for the longest time, have surely found ways to get through the game - always winning.
I have gathered here a winning set of business revelations that can also help gear you up towards the ring of success in forex exchange. Here they are:
* Read and understand the basics of forex by heart.
* Use a trade strategy or system tested over time to be very profitable. These are usually backtested and traded in real time, probing that it has been a truly profitable system or strategy. Try to gather all the details such as how they managed the risk and real samples of exact trades that has real results.
* During the learning process, try trading first on a demo account for a proof that you can truly follow the system already and can identify the rules well. You will also know if the system has been working as expected.
* Always ask questions whenever you do not understand something about the rules of the system. It is always better to ask than to assume. Directly ask the author or through the support forum. Remember, you want to win the game correctly.
* The majority of the systems are mechanical. There is always a need for constant practice on the system.
* Learn how to manage your money properly to assure that you will survive all throughout the trading process.
* Get a system and trading times that will suit your daily routine.
* Do not overtrade! Wait for proper trading times. Appropriate trading must be observed strictly.
* Revenge, in any form, does not get you anywhere; so avoid engaging in what they call as revenge trading that is putting larger size of trades and eventually maximizing your risks; especially if you have already lost in the last trade.
* Always monitor your system's progress to find out if it is working well over time, whether it is in the returns, drawdowns, or in any mistake that you have made during the trade.
* Whether you are trying to trade with managed forex, forex signals, or the automated forex, be diligent enough to ensure that the company is well-balanced, ethical, and can provide a complete results samples for you to review.
* Now, you are well equipped, and so you can start to pick your forex exchange system.Many people who have been both lucky and smart were able to generate a big amount of returns from forex exchange trading. That is why some people believe that this is a great opportunity to experience the same kind of money and luck altogether.
To date, forex exchange has become one of the most enticing and profitable chances to be financially freed from money worries, besides the convenient fact that you can do it anywhere in the world - be it in your office or in the comforts of your own home.
Reference: John Callingham
I have gathered here a winning set of business revelations that can also help gear you up towards the ring of success in forex exchange. Here they are:
* Read and understand the basics of forex by heart.
* Use a trade strategy or system tested over time to be very profitable. These are usually backtested and traded in real time, probing that it has been a truly profitable system or strategy. Try to gather all the details such as how they managed the risk and real samples of exact trades that has real results.
* During the learning process, try trading first on a demo account for a proof that you can truly follow the system already and can identify the rules well. You will also know if the system has been working as expected.
* Always ask questions whenever you do not understand something about the rules of the system. It is always better to ask than to assume. Directly ask the author or through the support forum. Remember, you want to win the game correctly.
* The majority of the systems are mechanical. There is always a need for constant practice on the system.
* Learn how to manage your money properly to assure that you will survive all throughout the trading process.
* Get a system and trading times that will suit your daily routine.
* Do not overtrade! Wait for proper trading times. Appropriate trading must be observed strictly.
* Revenge, in any form, does not get you anywhere; so avoid engaging in what they call as revenge trading that is putting larger size of trades and eventually maximizing your risks; especially if you have already lost in the last trade.
* Always monitor your system's progress to find out if it is working well over time, whether it is in the returns, drawdowns, or in any mistake that you have made during the trade.
* Whether you are trying to trade with managed forex, forex signals, or the automated forex, be diligent enough to ensure that the company is well-balanced, ethical, and can provide a complete results samples for you to review.
* Now, you are well equipped, and so you can start to pick your forex exchange system.Many people who have been both lucky and smart were able to generate a big amount of returns from forex exchange trading. That is why some people believe that this is a great opportunity to experience the same kind of money and luck altogether.
To date, forex exchange has become one of the most enticing and profitable chances to be financially freed from money worries, besides the convenient fact that you can do it anywhere in the world - be it in your office or in the comforts of your own home.
Reference: John Callingham
Saturday, May 9, 2009
Learn Forex - How To Make Money Trading Forex, The Trade Process
On the forex market we are trading currencies, exchanging a currency for another. So we buy a currency hoping its value will increase compared to the value of the one we are selling. Yes, we, at the same time, buying a currency and selling another currency. An example may be a little more understandable.
We have dollars and want to buy euros. The pair traded here is EUR/USD, and the exchange rate is 1.25. You can read it like this : 1 euro equals 1.25 dollar. We hope that the euro value will be higher so that later we will buy more dollar. The exchange rate increase to 1.35, in this case we bought 1 euro using 1.25 dollar, and it now equals to 1.35 dollar. So we exchange our 1 euro back into dollars and now have 1.35.
We bought 1 euro for $1.25 and sell it back for $1.35, we made a 10 cents profit. Of course on the forex market you will not buy only one euro, this will be few hundreds or thousands, depending on your budget and the leverage offered by the broker.
Exchange rates are always moving. When I say that you "hope" the value will increase, many factors can be used to predict the rate, based on technical or fundamental analysis. This is not the topic of this article so let's have another example of a selling trade.
We take the same pair (EUR/USD) as above starting with the same exchange rate (1.25). We want to sell euros so we can buy it later at a lower price. Here we hope, or know that the value of the euro will depreciate. We sell one euro for $1.25. The exchange rate drops to 1.15. That means that now we only need 1.15 to buy our euro back. We exchange our dollars back into euros and again, make a 10 cents profit.
When you buy or sell, you always buy or sell the base currecy. The base currency is the first one in the pair. In the pair EUR/USD, the base currency is the euro and the USD is called the quote currency. When you decide to buy, you buy euro and sell dollars. When you decide to sell, you sell euros and buy dollars.
Think that you always need to exchange something two times. If you buy something and want to make a profit from it, you would prefer to sell it at a higher price. And so, if you are selling something that you will need to buy again, you would prefer to have it at a lower price.
Reference: Tom Leroy
We have dollars and want to buy euros. The pair traded here is EUR/USD, and the exchange rate is 1.25. You can read it like this : 1 euro equals 1.25 dollar. We hope that the euro value will be higher so that later we will buy more dollar. The exchange rate increase to 1.35, in this case we bought 1 euro using 1.25 dollar, and it now equals to 1.35 dollar. So we exchange our 1 euro back into dollars and now have 1.35.
We bought 1 euro for $1.25 and sell it back for $1.35, we made a 10 cents profit. Of course on the forex market you will not buy only one euro, this will be few hundreds or thousands, depending on your budget and the leverage offered by the broker.
Exchange rates are always moving. When I say that you "hope" the value will increase, many factors can be used to predict the rate, based on technical or fundamental analysis. This is not the topic of this article so let's have another example of a selling trade.
We take the same pair (EUR/USD) as above starting with the same exchange rate (1.25). We want to sell euros so we can buy it later at a lower price. Here we hope, or know that the value of the euro will depreciate. We sell one euro for $1.25. The exchange rate drops to 1.15. That means that now we only need 1.15 to buy our euro back. We exchange our dollars back into euros and again, make a 10 cents profit.
When you buy or sell, you always buy or sell the base currecy. The base currency is the first one in the pair. In the pair EUR/USD, the base currency is the euro and the USD is called the quote currency. When you decide to buy, you buy euro and sell dollars. When you decide to sell, you sell euros and buy dollars.
Think that you always need to exchange something two times. If you buy something and want to make a profit from it, you would prefer to sell it at a higher price. And so, if you are selling something that you will need to buy again, you would prefer to have it at a lower price.
Reference: Tom Leroy
Friday, May 8, 2009
Learn Forex - Is Forex Trading The Ultimate Home Business Opportunity ?
That's true, you can be a trader at home. Forex, or Foreign Exchange Market is by far the largest financial market in the world. About $2 trillion are traded EVERY DAY. The Forex market is the currency market, where a currency is traded against another. Quick example : you buy a dollar and sell euros. Not that easy to understand. But can we do this from home ? Yes, we can. About ten years ago, you would need millions of dollars to start trading. Now you can start with a few hundreds of dollars.
What you need is your computer and an internet connexion. You can trade from the comfort of your home, without having to deal with any boss or clients. You will only deal with money. Then you can start selling dollars and buying euros and make a profit. You have to find a broker, where you will open an account and funding it. You will also have the possibility to get a demo account and practice, with fake money but in the real time market. I strongly recommend you practice a few months before thinking of "live" trading.
It is not that easy, it is extremely risky if you don't know anything about trading. First rule : don't invest what you can't afford to lose. Forex is not a game, there is a lot of parameters to take in account, and human factor is one of the most important in this business.
You may have already understood it, currencies are traded by pairs. The european Euro versus the US Dollar, The US Dollar versus the Japan Yen, etc. When you buy a currency, you want to sell it later at a higher price. When you sell a currency, you want to buy it later at a lower price. This is how you make profit. Think like you were buying a foreign company share. You always want to buy low, and always want to sell high.
What you are looking to when trading currencies is the exchange rate. This will tell you your next move. Buy or sell. Currencies are part of the economy of each countries. When the value of a currency is increasing, this means the economy is going better as before. The exchange rate can be viewed as the country's economy compared to another economy. This is why economic factors can help you to predict your next move. If you know that a currency will increase, you will buy it and expect to sell it at a higher price, a higher rate.
You can choose the pair you want to trade, but the most people trade the main currencies, Euro, Dollar, British Pound, Japan Yen. And you can only choose to trade one pair only if you want. You are the only person that will make the decision. Hope you are making the good ones, profit can be huge, as well as losses.
Like any business, forex trading has to be taken seriously. Lots of people are trading the forex and some are earning thousands of dollars every day. But it needs a lot of training, education and analysis before reaching such results. It can be the perfect business and actually it is for advanced traders.
Reference: Tom Leroy
What you need is your computer and an internet connexion. You can trade from the comfort of your home, without having to deal with any boss or clients. You will only deal with money. Then you can start selling dollars and buying euros and make a profit. You have to find a broker, where you will open an account and funding it. You will also have the possibility to get a demo account and practice, with fake money but in the real time market. I strongly recommend you practice a few months before thinking of "live" trading.
It is not that easy, it is extremely risky if you don't know anything about trading. First rule : don't invest what you can't afford to lose. Forex is not a game, there is a lot of parameters to take in account, and human factor is one of the most important in this business.
You may have already understood it, currencies are traded by pairs. The european Euro versus the US Dollar, The US Dollar versus the Japan Yen, etc. When you buy a currency, you want to sell it later at a higher price. When you sell a currency, you want to buy it later at a lower price. This is how you make profit. Think like you were buying a foreign company share. You always want to buy low, and always want to sell high.
What you are looking to when trading currencies is the exchange rate. This will tell you your next move. Buy or sell. Currencies are part of the economy of each countries. When the value of a currency is increasing, this means the economy is going better as before. The exchange rate can be viewed as the country's economy compared to another economy. This is why economic factors can help you to predict your next move. If you know that a currency will increase, you will buy it and expect to sell it at a higher price, a higher rate.
You can choose the pair you want to trade, but the most people trade the main currencies, Euro, Dollar, British Pound, Japan Yen. And you can only choose to trade one pair only if you want. You are the only person that will make the decision. Hope you are making the good ones, profit can be huge, as well as losses.
Like any business, forex trading has to be taken seriously. Lots of people are trading the forex and some are earning thousands of dollars every day. But it needs a lot of training, education and analysis before reaching such results. It can be the perfect business and actually it is for advanced traders.
Reference: Tom Leroy
Thursday, May 7, 2009
Learn To Trade The Forex: Forex Online Trading Systems Can Make You Rich
Foreign currency exchange trading (Forex) is creating a lot of buzz in investment circles, because it’s making many people very wealthy. Unlike the New York Stock Exchange, the forex market is open twenty-four hours a day. You can literally trade from sun up to sun down.
This is great news for anyone who has a job and other daily responsibilities. You can trade after work, or early in the morning at the crack of dawn. How often you trade and the time of day you choose is totally up to you.
The reason why so many people want to learn how to trade forex is because they hear stories about average folks, who have become forex traders, putting some money into a few good trades and making themselves a bundle – we’re talking thousands of dollars.
Is this kind of success in currency trading possible for you?
Yes, and no.
Yes, it is absolutely possible for you to learn how to analyze the market and pick winning trades. However, this success will not come overnight and will not come without some study and practice on your part.
Was that a buzz kill?
I hope not. It’s just a little cold water being splashed in your face. Look, online forex trading can be a little like gambling in Vegas. You’ve got your cash on hand, you’re sitting there at your computer looking at all the charts and currencies: dollar, yen, euro, etc.
You’re just itching to make some trades and even though you’re still green under the gills, you’re ready to jump in on that hot tip you got from your fellow trading buddy. The rent money’s due and you’ve got bills to pay, but you just know that if you make this one trade - you’ll make big bank!
Okay, this is where the excited new traders get happy, go all in and then .. . lose lots of money they can’t afford.
That’s right. While experienced traders are making nice profits on that hot tip, the newbies are getting wiped out clean, because they really don’t know what they’re doing and are betting their hard earned cash based on pure emotions. The first thing you need to learn about trading currencies is that you should NEVER make a trade like a gambler sitting at a roulette table letting it all ride on red.
The best traders are the ones that know how to keep their cool.
The best traders also learn how to read the forex news and analyze what trades they think are best given certain market conditions. Another golden tip is that you should never invest money that you need to keep a roof over your head, food in the fridge and the lights on at home. People who do this are gamblers and we already know that gamblers lose most of the time.
Successful traders have learned to risk no more than 2-3% of their total trading account. So, while they may make thousands, these investors have learned how to build on their success. When you have a winning trade, you take that money and invest it again and again.
To be safe, while you are learning how to trade in the forex market, you shouldn’t use real money period. You can open a demo trading account and make your trades without risking a cent. This way, when you lose, you can study that mistake and try to correct it. While all investors, even successful ones, lose money, you’ll be learning how to minimize your losses and increase your winning trades.
A good online forex trading system will show you the ropes and teach you how to look at trends and study market movement. You’ll also learn how to put in a strategic stop loss to keep you from losing too much money when the market goes against you.
When the time is right, and you are confident you can trade successfully (with a cool head) using real money, then jump in and go for the gusto!
Reference: Star Smith
This is great news for anyone who has a job and other daily responsibilities. You can trade after work, or early in the morning at the crack of dawn. How often you trade and the time of day you choose is totally up to you.
The reason why so many people want to learn how to trade forex is because they hear stories about average folks, who have become forex traders, putting some money into a few good trades and making themselves a bundle – we’re talking thousands of dollars.
Is this kind of success in currency trading possible for you?
Yes, and no.
Yes, it is absolutely possible for you to learn how to analyze the market and pick winning trades. However, this success will not come overnight and will not come without some study and practice on your part.
Was that a buzz kill?
I hope not. It’s just a little cold water being splashed in your face. Look, online forex trading can be a little like gambling in Vegas. You’ve got your cash on hand, you’re sitting there at your computer looking at all the charts and currencies: dollar, yen, euro, etc.
You’re just itching to make some trades and even though you’re still green under the gills, you’re ready to jump in on that hot tip you got from your fellow trading buddy. The rent money’s due and you’ve got bills to pay, but you just know that if you make this one trade - you’ll make big bank!
Okay, this is where the excited new traders get happy, go all in and then .. . lose lots of money they can’t afford.
That’s right. While experienced traders are making nice profits on that hot tip, the newbies are getting wiped out clean, because they really don’t know what they’re doing and are betting their hard earned cash based on pure emotions. The first thing you need to learn about trading currencies is that you should NEVER make a trade like a gambler sitting at a roulette table letting it all ride on red.
The best traders are the ones that know how to keep their cool.
The best traders also learn how to read the forex news and analyze what trades they think are best given certain market conditions. Another golden tip is that you should never invest money that you need to keep a roof over your head, food in the fridge and the lights on at home. People who do this are gamblers and we already know that gamblers lose most of the time.
Successful traders have learned to risk no more than 2-3% of their total trading account. So, while they may make thousands, these investors have learned how to build on their success. When you have a winning trade, you take that money and invest it again and again.
To be safe, while you are learning how to trade in the forex market, you shouldn’t use real money period. You can open a demo trading account and make your trades without risking a cent. This way, when you lose, you can study that mistake and try to correct it. While all investors, even successful ones, lose money, you’ll be learning how to minimize your losses and increase your winning trades.
A good online forex trading system will show you the ropes and teach you how to look at trends and study market movement. You’ll also learn how to put in a strategic stop loss to keep you from losing too much money when the market goes against you.
When the time is right, and you are confident you can trade successfully (with a cool head) using real money, then jump in and go for the gusto!
Reference: Star Smith
Wednesday, May 6, 2009
Global Forex Trading - What is So Appealing About This Forex Opportunity?
Global forex trading is a huge and incredibly liquid market that unveils an opportunity for those individuals who are looking to exchange currencies around the world. There is considerably less heard about the forex market compared to the commodities and stock market. Global forex trading may not be as well known as stock trading in fact it is actually far smaller than the stocks and even the commodities markets. But being that as it may there is more than $2 trillion closer to $3 trillion in currencies being traded every day on the global forex market. The nice thing about it is seeing that the market is global in can be traded pretty much 24/7.
The fact of the matter is that Global Forex Trading can be an easy way for both beginners and professional forex traders to make money online. The most appealing thing about this forex opportunity and trading in the forex market is the leverage. In the forex market one can control 20, 50 or even 100 times more than their initial investment. This can give you the opportunity to make a ton of money from a very small investment. The reason the Global forex market even exists is to promote investment in international commerce.
The trends give the global forex market it's ability to change albeit sometimes erratically. Forex traders or investors use these trend lines in an attempt to judge what direction the currency is moving either up, down or sideways. The forex market like most trading markets is very speculative and one must understand that there are certainly risks involved. That is why it is crucial to know how to trade currencies or at least use one of the proven auto pilot forex trading robots as a tool to assist you. Because there is the possibility of making great sums of money and also the possibility of loosing great sums of money.
Here are some more of the advantages of the forex market. Low startup you can startup with as little as $50. Non stop action the markets trade 24 hours per day Monday through Friday. It's a volatile market which means huge opportunities. Low cost it's not like the stock market where you have to pay the spread plus commissions. In the forex market your only cost for the trade is the spread. There is no cornering because no matter how many people trade or how many autopilot forex robot systems people use, the efficiency and probability of the currencies market will remain intact. There is no size limit you can trade as big or as small as you'd like. This is something that only the forex market allows.
Here's some things to look for when looking for a forex software. Especially if you are looking for a forex robot that works on it's own 24/7. Look for a company that offers traders to run the software on the companies special forex servers. That way you don't have to worry about your home computer going offline when you leave it to go to bed. Look for a software that does real live testing as opposed to back testing only. Look for lots and lots of testimonials. Look for a forex robot that offers the ability to paper trade to test the software for accuracy. Good forex robots will help you to determine the proper forex supply and demand. Also and this is probably the most important thing look for a money back guarantee with a trial period. Look for software that has a lot of positive popularity. If people are going crazy over it in a good way, then it's probably for a good reason. Good luck trading and may you make a ton of money with global forex trading.
Reference:Eddie Torilo
The fact of the matter is that Global Forex Trading can be an easy way for both beginners and professional forex traders to make money online. The most appealing thing about this forex opportunity and trading in the forex market is the leverage. In the forex market one can control 20, 50 or even 100 times more than their initial investment. This can give you the opportunity to make a ton of money from a very small investment. The reason the Global forex market even exists is to promote investment in international commerce.
The trends give the global forex market it's ability to change albeit sometimes erratically. Forex traders or investors use these trend lines in an attempt to judge what direction the currency is moving either up, down or sideways. The forex market like most trading markets is very speculative and one must understand that there are certainly risks involved. That is why it is crucial to know how to trade currencies or at least use one of the proven auto pilot forex trading robots as a tool to assist you. Because there is the possibility of making great sums of money and also the possibility of loosing great sums of money.
Here are some more of the advantages of the forex market. Low startup you can startup with as little as $50. Non stop action the markets trade 24 hours per day Monday through Friday. It's a volatile market which means huge opportunities. Low cost it's not like the stock market where you have to pay the spread plus commissions. In the forex market your only cost for the trade is the spread. There is no cornering because no matter how many people trade or how many autopilot forex robot systems people use, the efficiency and probability of the currencies market will remain intact. There is no size limit you can trade as big or as small as you'd like. This is something that only the forex market allows.
Here's some things to look for when looking for a forex software. Especially if you are looking for a forex robot that works on it's own 24/7. Look for a company that offers traders to run the software on the companies special forex servers. That way you don't have to worry about your home computer going offline when you leave it to go to bed. Look for a software that does real live testing as opposed to back testing only. Look for lots and lots of testimonials. Look for a forex robot that offers the ability to paper trade to test the software for accuracy. Good forex robots will help you to determine the proper forex supply and demand. Also and this is probably the most important thing look for a money back guarantee with a trial period. Look for software that has a lot of positive popularity. If people are going crazy over it in a good way, then it's probably for a good reason. Good luck trading and may you make a ton of money with global forex trading.
Reference:Eddie Torilo
Tuesday, May 5, 2009
Currency Pairs in Global Forex Trading
Generally speaking, any two currency pairs can be traded back and forth. Even if common information is not kept about two specific currency pairs with respect to each other, that currency information can be obtained by comparing both of those currencies to the American dollar. The world economy still largely operates based on the US dollar, and for that reason, you can use that dollar as a middle man to trade any two currencies the world has to offer. That said, however, there are some currency pairs that are more commonly traded than their counterparts and these pairs are the focus of the discussion below.
American Dollar and European Dollar: This particular currency pair is also known as the EUR/USD or the USD/EUR depending on the particular point of view to trading that you bring to the table. It is also arguably the most traded currency in the world when the major conventional traders are removed from the picture which essentially means that most of the individual traders that enter the Forex market through online channels eventually settle on trading these two currencies back and forth. Over the long run, there has been a steady gain of the EUR on the USD and over the short run there is enough volatility in the market to allow you to make multiple trades on trends a day if that is what you want to do.
American Dollar and British Pound: This particular currency pair is also known as the USD/GBP or the GBP/USD currency pair. This used to be the most common currency pair traded in the world and might still be the most common one traded if you put the conventional large traders back into the picture. There tends to be far less short term volatility in this market which is perhaps why individual traders prefer the EUR/USD to this one.
American Dollar and Canadian Dollar: This one is also known as the USD/CAD or the CAD/USD. While not a particularly common trade made on a worldwide scale you will see this trade quite often in the North American market. Even outside conscious Forex trading there are hundreds of exchanges between these two currencies everyday because of the close relationship the two parent countries have.
European Dollar and British Pound: Also known as the EUR/GBP or GBP/EUR. This is a very popular trade in Europe and particularly in the United Kingdom but on a worldwide basis it is generally a better bet to go with the EUR/USD currency pair because of the greater volatility that market brings to the table.
Chinese Yuan and Japanese Yen: This is the CHY/JPY or the JPY/CHY currency pair. This trade is very popular in Asia and like the CAD/USD trade also occurs quite often outside of conscious currency trading with the number of people that travel back and forth between areas that have these two pairs.
These are by no means the only currency pairs available for you to trade as stipulated in the introduction, but they are definitely some of the more popular ones. Every reputable and decent quality online Forex software will automatically have at least these five currency pairs programmed into them and a good number of the software packages you can find on the internet will have many more as well as custom options that you can use to track your own currency pairs.
Reference: Brent Crouch
American Dollar and European Dollar: This particular currency pair is also known as the EUR/USD or the USD/EUR depending on the particular point of view to trading that you bring to the table. It is also arguably the most traded currency in the world when the major conventional traders are removed from the picture which essentially means that most of the individual traders that enter the Forex market through online channels eventually settle on trading these two currencies back and forth. Over the long run, there has been a steady gain of the EUR on the USD and over the short run there is enough volatility in the market to allow you to make multiple trades on trends a day if that is what you want to do.
American Dollar and British Pound: This particular currency pair is also known as the USD/GBP or the GBP/USD currency pair. This used to be the most common currency pair traded in the world and might still be the most common one traded if you put the conventional large traders back into the picture. There tends to be far less short term volatility in this market which is perhaps why individual traders prefer the EUR/USD to this one.
American Dollar and Canadian Dollar: This one is also known as the USD/CAD or the CAD/USD. While not a particularly common trade made on a worldwide scale you will see this trade quite often in the North American market. Even outside conscious Forex trading there are hundreds of exchanges between these two currencies everyday because of the close relationship the two parent countries have.
European Dollar and British Pound: Also known as the EUR/GBP or GBP/EUR. This is a very popular trade in Europe and particularly in the United Kingdom but on a worldwide basis it is generally a better bet to go with the EUR/USD currency pair because of the greater volatility that market brings to the table.
Chinese Yuan and Japanese Yen: This is the CHY/JPY or the JPY/CHY currency pair. This trade is very popular in Asia and like the CAD/USD trade also occurs quite often outside of conscious currency trading with the number of people that travel back and forth between areas that have these two pairs.
These are by no means the only currency pairs available for you to trade as stipulated in the introduction, but they are definitely some of the more popular ones. Every reputable and decent quality online Forex software will automatically have at least these five currency pairs programmed into them and a good number of the software packages you can find on the internet will have many more as well as custom options that you can use to track your own currency pairs.
Reference: Brent Crouch
Monday, May 4, 2009
Build Your Investing With Global Forex Trading
Global forex trading(forex, of course, meaning the foreign exchange market) has become more and more popular in the last few decades, mostly due to the advent of the global economy. Never before has our economy been so intertwined with every other country's. It's perfectly common now for people to convert large amounts of money into various foreign currencies, then back again. The forex market is the largest market in the world, and includes everything from banks to governments to independent speculators. The daily volume of the global forex trading market exceeded four trillion dollars on average last year, making it a very attractive market to get involved in.
Several things separate global forex trading from other markets. Its trading volumes, the large number and variety of traders, the global dispersion, the variety of factors affecting exchange rates, low profit margins (but profits are often very high because of large volume trading), all contribute to make the global forex trading market the closest thing to the "perfect competition." Foreign exchange has more than doubled since 2001.
Another way that global forex trading is separated from other markets, for example the stock market, is that it is divided into different levels of access. In the stock market, all competitors and investors have access to the same prices. In the global forex market, however, the inter-bank market is at the top. As the access level drops, the spread (that's the difference between the bid and ask price) widens, though it's still possible for a low-access individual to make large amounts of money.
While there isn't a central market for forex traders, there is next to no cross-border regulation. Global forex trading is often referred to as OTC (over-the-counter), which makes for a large number of intertwined marketplaces. Therefore there isn't so much a single exchange as a number of separate rates or prices, depending on which bank is doing the trading, and where it is. Differences in exchange rates are usually caused by changes in GDP (gross domestic product), inflation, interest rates, budget and trade deficits or surpluses, and other large-scale economic transactions and events.
Global forex trading is something not many people consider for investment (who would think that so much money lies in money), but worldwide forex trading continues to flourish for a reason. Individuals all over the globe are investing in the forex market and making thousands of dollars every day.
Reference: Rick Williamson
Several things separate global forex trading from other markets. Its trading volumes, the large number and variety of traders, the global dispersion, the variety of factors affecting exchange rates, low profit margins (but profits are often very high because of large volume trading), all contribute to make the global forex trading market the closest thing to the "perfect competition." Foreign exchange has more than doubled since 2001.
Another way that global forex trading is separated from other markets, for example the stock market, is that it is divided into different levels of access. In the stock market, all competitors and investors have access to the same prices. In the global forex market, however, the inter-bank market is at the top. As the access level drops, the spread (that's the difference between the bid and ask price) widens, though it's still possible for a low-access individual to make large amounts of money.
While there isn't a central market for forex traders, there is next to no cross-border regulation. Global forex trading is often referred to as OTC (over-the-counter), which makes for a large number of intertwined marketplaces. Therefore there isn't so much a single exchange as a number of separate rates or prices, depending on which bank is doing the trading, and where it is. Differences in exchange rates are usually caused by changes in GDP (gross domestic product), inflation, interest rates, budget and trade deficits or surpluses, and other large-scale economic transactions and events.
Global forex trading is something not many people consider for investment (who would think that so much money lies in money), but worldwide forex trading continues to flourish for a reason. Individuals all over the globe are investing in the forex market and making thousands of dollars every day.
Reference: Rick Williamson
Sunday, May 3, 2009
The Importance of a Plan in Global Forex Trading
The internet technology has enabled people to practice global forex trading with no boarder limits. To make it more interesting traders can trade their money round the clock. However this is quite tempting and one may not know when to stop trading.
This is where it becomes very important to have a plan. The moment you do not plan, you are planning; yes you are planning to fall. Forex trading needs discipline and that you know what you want to achieve.
You must plan how much you want to invest and what your objective of getting into the trade is. I guess you are not trading foreign currency because others are doing it-are you? You plan should also guide you on when to enter into the FX market.
It must also hint you things like at what price to leave the market. Set yourself some smart goals and objectives which upon realization you can stop trading. Rethink whether to go for foreign money trading round or not.
If your plan fails in the global forex trading market, do not hang yourself. I should have told you that you can lose in foreign exchange business. Very few people are honest enough to tell you this.
All they say is marry, marry, marry, and you will be merry, forgetting to tell you that there are challenges and hick ups in marriage. If your forex trading plan fails, review it and come up with a new plan. Maybe you may need to relearn the rules of the match and gain more knowledge.
As long as you do not plan to fail by not planning, it is unlikely that you will go wrong in the trading of foreign currency. It is also a good idea to ask an experienced foreign currency trader to review you plan for you before you execute it. Otherwise happy global forex trading!
Reference: Paul Kramer
This is where it becomes very important to have a plan. The moment you do not plan, you are planning; yes you are planning to fall. Forex trading needs discipline and that you know what you want to achieve.
You must plan how much you want to invest and what your objective of getting into the trade is. I guess you are not trading foreign currency because others are doing it-are you? You plan should also guide you on when to enter into the FX market.
It must also hint you things like at what price to leave the market. Set yourself some smart goals and objectives which upon realization you can stop trading. Rethink whether to go for foreign money trading round or not.
If your plan fails in the global forex trading market, do not hang yourself. I should have told you that you can lose in foreign exchange business. Very few people are honest enough to tell you this.
All they say is marry, marry, marry, and you will be merry, forgetting to tell you that there are challenges and hick ups in marriage. If your forex trading plan fails, review it and come up with a new plan. Maybe you may need to relearn the rules of the match and gain more knowledge.
As long as you do not plan to fail by not planning, it is unlikely that you will go wrong in the trading of foreign currency. It is also a good idea to ask an experienced foreign currency trader to review you plan for you before you execute it. Otherwise happy global forex trading!
Reference: Paul Kramer
Saturday, May 2, 2009
How To Make Over $10,000 from Global Forex Market Part 2
Welcome back to the part 2 of this article before I explain the standard account let me quickly say this.
I used to quickly write in a note book how many pips or dollar I wished to make daily and quickly go on to trade, and discovered I was always missing it all. Instead of making the 50 pips I was always going for per trade and wondering what was wrong with me each time I recorded a loss of over 50 to 300 pips in one day all because I never understood what it meant to have a decent trading plan.
Before you ever drop a dime to trade, please consider answering the following questions: what kind of trader achieves profitability consistently? What skills are required to consistently make say 200 pips monthly? What do I want to achieve in the long run as a trader? What are my current skills level and what new skills level do I hope to attain? How disciplined am I in following whatever plans I develop?. Now let start from where I stop in part 1, I hope you still have part 1 with you.
Trade a standard account now with the same result I gave in part 1, in the 5th month and guess what you would have; 350 by $10 = $3500 + $3785 totaling $7285. in the 6th month, if all things are equal, the same trading with the same lot size will add another $3500 to your account bringing it to a total of $10785.
Discipline yourself enough to stick to this plan in terms of the goals component of your trading plan no matter what happens. Just know when to stop to take a break if the losing streak continues and you cannot help it. Another thing is that you should not let your account continue growing without withdrawing the money. Do not tempt your broker! Always have a plan to maintain a certain amount in your account. Stick to this site and get the best of forex tips.
I used to quickly write in a note book how many pips or dollar I wished to make daily and quickly go on to trade, and discovered I was always missing it all. Instead of making the 50 pips I was always going for per trade and wondering what was wrong with me each time I recorded a loss of over 50 to 300 pips in one day all because I never understood what it meant to have a decent trading plan.
Before you ever drop a dime to trade, please consider answering the following questions: what kind of trader achieves profitability consistently? What skills are required to consistently make say 200 pips monthly? What do I want to achieve in the long run as a trader? What are my current skills level and what new skills level do I hope to attain? How disciplined am I in following whatever plans I develop?. Now let start from where I stop in part 1, I hope you still have part 1 with you.
Trade a standard account now with the same result I gave in part 1, in the 5th month and guess what you would have; 350 by $10 = $3500 + $3785 totaling $7285. in the 6th month, if all things are equal, the same trading with the same lot size will add another $3500 to your account bringing it to a total of $10785.
Discipline yourself enough to stick to this plan in terms of the goals component of your trading plan no matter what happens. Just know when to stop to take a break if the losing streak continues and you cannot help it. Another thing is that you should not let your account continue growing without withdrawing the money. Do not tempt your broker! Always have a plan to maintain a certain amount in your account. Stick to this site and get the best of forex tips.
Friday, May 1, 2009
How to Preserve Your Profit in Global Forex
To preserve your profits in global market you have to learn on how to use stop and trailing stops. Step by step guide on how to use these two methods.
Trailing stops: A trailing stop is one that is adjusted to follow a trade in the direction of a profit, attempting to keep a particular distance without being backed away from holding a profit.
Explanation: If we are long, a trailing stop would follow the price up as the price move up but would not be lowered if the price dropped. In global forex, you need to manually adjust your trailing stop as your price moves in your desired directions.
In each every trade, your first goal is to move your initial stop loss to breakeven. This ensures a risk – free trade. In a slow time fame, I keep my trailing stop quite wide, as I don’t want to be stopped out too soon, in a faster timeframe, I keep my trailing stop tighter. In most cases, I’ll keep adjusting my trailing stop every 15 – 25 pips, as the price moves in my desired directions.
After your breakeven goal is reached, you can then keep adjusting your stop loss every 15 – 25 pips, to lock in more profits, until you either decide to exit the trade with your captures intended profit, or until you get stopped out.
If you are not day trading, which means you are not watching the market very closely, and you are position or swing trading, you need to be willing to bet your trade have more breathing room without the possibility of being stopped out too easily, in this case, an initial stop of up to 40 pips is more realistic. But, according to your margin usage, you need to be willing to take this kind of hit to your account if you get stopped out. If you can’t stomach the loss of 40 pips in a given trade, either decrease your margin usage or tighten your initial stop. It’s always better, in my opinion, to decrease your margin usage.
In a 5 minute time frame, if using the slower moving averages, your stop loss should be about 20 – 30 pips. When using faster moving averages, your stop loss should be tighter, between 20 – 25 pips.
In conclusion never set your initial stop at less than 10 pips and a 10 pips trailing stop is only for use with the faster moving averages that we teach and only when well into profit.
Trailing stops: A trailing stop is one that is adjusted to follow a trade in the direction of a profit, attempting to keep a particular distance without being backed away from holding a profit.
Explanation: If we are long, a trailing stop would follow the price up as the price move up but would not be lowered if the price dropped. In global forex, you need to manually adjust your trailing stop as your price moves in your desired directions.
In each every trade, your first goal is to move your initial stop loss to breakeven. This ensures a risk – free trade. In a slow time fame, I keep my trailing stop quite wide, as I don’t want to be stopped out too soon, in a faster timeframe, I keep my trailing stop tighter. In most cases, I’ll keep adjusting my trailing stop every 15 – 25 pips, as the price moves in my desired directions.
After your breakeven goal is reached, you can then keep adjusting your stop loss every 15 – 25 pips, to lock in more profits, until you either decide to exit the trade with your captures intended profit, or until you get stopped out.
If you are not day trading, which means you are not watching the market very closely, and you are position or swing trading, you need to be willing to bet your trade have more breathing room without the possibility of being stopped out too easily, in this case, an initial stop of up to 40 pips is more realistic. But, according to your margin usage, you need to be willing to take this kind of hit to your account if you get stopped out. If you can’t stomach the loss of 40 pips in a given trade, either decrease your margin usage or tighten your initial stop. It’s always better, in my opinion, to decrease your margin usage.
In a 5 minute time frame, if using the slower moving averages, your stop loss should be about 20 – 30 pips. When using faster moving averages, your stop loss should be tighter, between 20 – 25 pips.
In conclusion never set your initial stop at less than 10 pips and a 10 pips trailing stop is only for use with the faster moving averages that we teach and only when well into profit.
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