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
Sunday, December 6, 2009
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
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