Forex Enterprise Home Business Package
by James blunt
"Here Is A Way To Make Money That Has Never Yet Failed"
This was the message I got when I arrived at the Forex Enterprise website. A number of friends had told me about Forex Enterprise and spoke very highly of it.
"Who Else Wants To Earn Thousands Of Dollars Per Month With A System That Virtually Runs 100% On Autopilot!?"
This was a very strong statement, but could Nick Marks back this up? There's no doubt that the internet is the best place to make money, but could you make money with this system? or was it just another "get rich quick" scam, that flooded the internet?
After looking into Forex Enterprise, here is what I found out:
Forex Enterprise is not your typical money making scam. The system will not make you a millionaire overnight, however, it provides you with information that lets you dig into making money online. This is a very good starting point for anybody looking to make money online.
It is very easy to assume Forex Enterprise is another scam, as of course, the sales page may seem a little over the top, but this is far from the truth. It is possible to earn thousands of dollars a month with the system, however, this takes a certain amount of work. If you think you can purchase the system and instantly make thousands of dollars, you are wrong, however, it is very possible to use it to generate a lot of money online.
Who Created Forex Enterprise?
This was created by Nick Marks, a multi-millionaire who has made his fortune online. Nick Marks has now put his ideas together and developed a system known as Forex Enterprise that can create multiple streams of income from a variety of sources on the internet. It did surprise me, with the huge amount of testimonials where ordinary people had used Nick Mark's system to generate very high income online, normal people without prior experience to making money on the internet. This is not a get rich quick scheme, it is a system designed to work over long term and create a future for you.
If you are the type of individual who can take information in and learn well from people, this is a great opportunity, however, this is not for you if you think you can be lazy and not put the work in. Making money online does require some effort.
วันพฤหัสบดีที่ 31 มกราคม พ.ศ. 2551
วันพุธที่ 30 มกราคม พ.ศ. 2551
Forex Charts - Avoid This Common Deadly Mistake or Lose
Forex Charts - Avoid This Common Deadly Mistake or Lose
by Monica Hendrix
If there is one basic mistake traders make and continue to make it's the one in this article and if you make it you will simply lose all your money and do it quickly, so here is the forex chart mistake to avoid.
The mistake is the forex prices can be predicted on forex charts.
No they can't...
Of course if you are predicting you are hoping and guessing and that won't get you far in any venture in life, let alone forex trading.
Of course there are many vendors who will tell you prices can be predicted with scientific accuracy and the naïve trader swallows it.
The most popular scientific theories are based around the works of - Gann, Elliot wave and Fibonacci.
These guys never made money with their theories and neither will you - because the fact that markets move at all, proves there is no scientific theory... If there were a scientific theory, we would all know the price in advance and there would be no market - common sense really.
Other forex traders predict but they don't believe in scientific theories - their just trying to buy low and sell high and this doesn't work either.
For example - a trader sees the price dip to just above support, assumes it will hold and executes his trading signal. Of course sometimes it works, most of the time it does not.
Rather than hoping guessing or predicting - you need to get the odds in your favour. Forex trading is a game of odds not certainties but get them on your side and you can make a ton of money.
The Way To Win With Forex Charts
Lets say you see prices dip to support you don't buy you wait for momentum to turn up (you can read about momentum oscillators in our other articles) this gives you advance warning of a shift in price velocity and shows the level is likely to hold.
You can also use momentum to follow a break of support and trading breakouts is very profitable.
It's a fact that most big bullish or bearish moves start from new market lows or new highs and by following the breaks with momentum on your side you can catch the biggest trends.
So remember:
The next time you see someone say they can predict market tops or bottoms with 90% market accuracy - you know their lying and that if you try and predict with your forex charts, you simply lose all your money and do it quickly.
Use your forex charts correctly. Trade the odds, confirm each move with momentum and enjoy long term currency trading success.
by Monica Hendrix
If there is one basic mistake traders make and continue to make it's the one in this article and if you make it you will simply lose all your money and do it quickly, so here is the forex chart mistake to avoid.
The mistake is the forex prices can be predicted on forex charts.
No they can't...
Of course if you are predicting you are hoping and guessing and that won't get you far in any venture in life, let alone forex trading.
Of course there are many vendors who will tell you prices can be predicted with scientific accuracy and the naïve trader swallows it.
The most popular scientific theories are based around the works of - Gann, Elliot wave and Fibonacci.
These guys never made money with their theories and neither will you - because the fact that markets move at all, proves there is no scientific theory... If there were a scientific theory, we would all know the price in advance and there would be no market - common sense really.
Other forex traders predict but they don't believe in scientific theories - their just trying to buy low and sell high and this doesn't work either.
For example - a trader sees the price dip to just above support, assumes it will hold and executes his trading signal. Of course sometimes it works, most of the time it does not.
Rather than hoping guessing or predicting - you need to get the odds in your favour. Forex trading is a game of odds not certainties but get them on your side and you can make a ton of money.
The Way To Win With Forex Charts
Lets say you see prices dip to support you don't buy you wait for momentum to turn up (you can read about momentum oscillators in our other articles) this gives you advance warning of a shift in price velocity and shows the level is likely to hold.
You can also use momentum to follow a break of support and trading breakouts is very profitable.
It's a fact that most big bullish or bearish moves start from new market lows or new highs and by following the breaks with momentum on your side you can catch the biggest trends.
So remember:
The next time you see someone say they can predict market tops or bottoms with 90% market accuracy - you know their lying and that if you try and predict with your forex charts, you simply lose all your money and do it quickly.
Use your forex charts correctly. Trade the odds, confirm each move with momentum and enjoy long term currency trading success.
วันจันทร์ที่ 28 มกราคม พ.ศ. 2551
Forex Trading: How to be Successful
Forex Trading: How to be Successful
by Lene Clark
How to trading in Forex is just not enough to be successful. In the largest and the most liquid financial market in the world, you have to need more than the knowledge and skill to be successful. You need to know about different things involved in Forex to earn lots of money.
It is simply knowing about how to trade in Forex and about the major currencies trading, like the US dollar, the Japanese Yen, and others are just the basics.It is also equally essential to know when to trade and what to trade in forex.For all of these you have to know about trading strategy. and also know about different kind of strategies needed in forex. There are different kind of strategies that can be use in forex market for trading.
After using these strategies correctly. you can earn lots of money in very short time. but you have to know forex trading is very different from stock trading. so that, using strategies are also different.In the first strategy that you can use for earning lots of money in forex market is Leverage Forex Trading strategy. In this strategy you are a investor in the forex market, to borrow money to increase earning potential .by this method you can easily made money to 1:100 ratio. but risk factor is involved here.Most commonly used strategy is leverage forex trading by forex traders.
In second strategy called stop loss order . where forex trader predetermined a point in the trade where trader will not trade. This strategy can be use to minimize risk and loss.also this technique backfire to you. as a forex trader.it is depend to you to decide which technique to use.
Some of the techniques that you can use when trading in the Forex market.
Forex trading is a 24 hour market where trader can trade anytime and anywhere . If trader think that the Forex market conditions are good at a specific time, then he can trade at that specific time. Also, the Forex market is the most liquid market in the world. This means that trader can enter or exit the market anytime . This is to minimize the risk and there is no daily trading limit.
Here are some of the tips that you should remember to earn money in the Forex market :
*The first and the last ticks are the most expensive. So, the rule of thumb is getting in late and get out early in market.
* When you are losing, and you want to reduce the risk of losing more money. So, do not add more money when you are losing.
*Select trades that move with the trend. This may minimize the risk of losing money and maximize chances of profits.
There are some of tools that you can use when trading in the Forex market. One is the Forex charts. For the speculator, the chart is the most important tool that traders can use to determine market trends and accurately predict the future value of the currency. Although it is not actually 100% accurate, you can use the Forex charts as a guide to what's happening in the market.
Trader need to know how to read the different charts involved in the Forex market. There are daily charts, hourly charts, 15 minute charts and even 5 minute charts to the action. You can compare each of the data in the chart to check market trends and at the same time, spot potential money making trends.
This can help you minimize the risk when trading in Forex. Learn how to read charts effectively and you will be well on your way to become successful in the Forex market.
These are some the techniques and tips that you should always keep in mind in order to minimize the risks and maximize your earning potential in Forex trading. Depending on your skills and how you apply your techniques , you can really make a huge money in the Forex market. However, to be a truly successful Forex trader, you have to accept the fact that you will lose money sometimes . Never get discouraged when you loss. Analyze where you made mistake, and think of a solution to get back what you lost and continue trading.
by Lene Clark
How to trading in Forex is just not enough to be successful. In the largest and the most liquid financial market in the world, you have to need more than the knowledge and skill to be successful. You need to know about different things involved in Forex to earn lots of money.
It is simply knowing about how to trade in Forex and about the major currencies trading, like the US dollar, the Japanese Yen, and others are just the basics.It is also equally essential to know when to trade and what to trade in forex.For all of these you have to know about trading strategy. and also know about different kind of strategies needed in forex. There are different kind of strategies that can be use in forex market for trading.
After using these strategies correctly. you can earn lots of money in very short time. but you have to know forex trading is very different from stock trading. so that, using strategies are also different.In the first strategy that you can use for earning lots of money in forex market is Leverage Forex Trading strategy. In this strategy you are a investor in the forex market, to borrow money to increase earning potential .by this method you can easily made money to 1:100 ratio. but risk factor is involved here.Most commonly used strategy is leverage forex trading by forex traders.
In second strategy called stop loss order . where forex trader predetermined a point in the trade where trader will not trade. This strategy can be use to minimize risk and loss.also this technique backfire to you. as a forex trader.it is depend to you to decide which technique to use.
Some of the techniques that you can use when trading in the Forex market.
Forex trading is a 24 hour market where trader can trade anytime and anywhere . If trader think that the Forex market conditions are good at a specific time, then he can trade at that specific time. Also, the Forex market is the most liquid market in the world. This means that trader can enter or exit the market anytime . This is to minimize the risk and there is no daily trading limit.
Here are some of the tips that you should remember to earn money in the Forex market :
*The first and the last ticks are the most expensive. So, the rule of thumb is getting in late and get out early in market.
* When you are losing, and you want to reduce the risk of losing more money. So, do not add more money when you are losing.
*Select trades that move with the trend. This may minimize the risk of losing money and maximize chances of profits.
There are some of tools that you can use when trading in the Forex market. One is the Forex charts. For the speculator, the chart is the most important tool that traders can use to determine market trends and accurately predict the future value of the currency. Although it is not actually 100% accurate, you can use the Forex charts as a guide to what's happening in the market.
Trader need to know how to read the different charts involved in the Forex market. There are daily charts, hourly charts, 15 minute charts and even 5 minute charts to the action. You can compare each of the data in the chart to check market trends and at the same time, spot potential money making trends.
This can help you minimize the risk when trading in Forex. Learn how to read charts effectively and you will be well on your way to become successful in the Forex market.
These are some the techniques and tips that you should always keep in mind in order to minimize the risks and maximize your earning potential in Forex trading. Depending on your skills and how you apply your techniques , you can really make a huge money in the Forex market. However, to be a truly successful Forex trader, you have to accept the fact that you will lose money sometimes . Never get discouraged when you loss. Analyze where you made mistake, and think of a solution to get back what you lost and continue trading.
Currency Trading Basics - Answer This Question Correctly or Lose Your Equity
Currency Trading Basics - Answer This Question Correctly or Lose Your Equity
by kelly price
Here we are going to look at currency trading basics and one specific question any novice forex trader must answer correctly, if they are going to win with their forex trading strategy, so here it is...
My trading edge over the 95% if traders who lose is (defined)
To win you need to have a trading edge - it's as simple as that. Here are some answers the bulk of losers will give and they will all see you lose
- I intend to use a forex day trading or scalping method
- I am going to blindly trade a vendors system
- I like to take expert opinion and trade the news
- I have a forex trading system that can predict forex prices
- I believe the markets move to a scientific formula and will take advantage of one
- I have a complicated system that I have refined in back testing
- I am simply going to buy into support and sell into resistance
All the above do NOT constitute and edge and will see you fail at forex trading - keep in mind 95% of traders lose!
If you learn anything in your forex education it should be that forex trading is not as simple as it first appears and to learn currency trading correctly you must end up with an edge that you can define - no two peoples edges are identical but successful traders know what it is and why it gives them an advantage and they have the confidence to apply it with rigid discipline.
Lets first start with a fact - forex trading is an odds game not a game of certainties.
There is no scientific method to help you determine prices in advance.
If there was we would all know the price and there would be no market! Furthermore, if you try and predict forex prices, you will lose because you are simply hoping and guessing and you should really be trading the reality and confirming every trading signal before executing.
Forget complicated trading system!
Simple systems work best as they are more robust in the face of brutal ever changing market conditions and have fewer elements to break.
Forget the news its just stories.
The news reflects the emotions of the losing majority and if you get involved in trying to follow it, you will lose.
You need to trade the odds to enjoy currency trading success.
The best way is to use forex charts, where you can simply see the reality of price change and you can either forex swing trade or trend follow - but never day trade!
Day trading is the best way to lose money out and doesn't work in the real world.
Forget all the gurus out there with their regular income systems and simulated track records; it's a loser's game.
Forex trading is a combination of a simple forex trading system; you totally understand this then allows you to execute it with discipline.
If you don't have the confidence in your system you will never have the discipline to follow it and these traits come from understanding and knowing a trading edge.
So there you have it perhaps the most important point of currency trading basics to learn but if you do and apply what we have written you could enjoy huge forex success.
by kelly price
Here we are going to look at currency trading basics and one specific question any novice forex trader must answer correctly, if they are going to win with their forex trading strategy, so here it is...
My trading edge over the 95% if traders who lose is (defined)
To win you need to have a trading edge - it's as simple as that. Here are some answers the bulk of losers will give and they will all see you lose
- I intend to use a forex day trading or scalping method
- I am going to blindly trade a vendors system
- I like to take expert opinion and trade the news
- I have a forex trading system that can predict forex prices
- I believe the markets move to a scientific formula and will take advantage of one
- I have a complicated system that I have refined in back testing
- I am simply going to buy into support and sell into resistance
All the above do NOT constitute and edge and will see you fail at forex trading - keep in mind 95% of traders lose!
If you learn anything in your forex education it should be that forex trading is not as simple as it first appears and to learn currency trading correctly you must end up with an edge that you can define - no two peoples edges are identical but successful traders know what it is and why it gives them an advantage and they have the confidence to apply it with rigid discipline.
Lets first start with a fact - forex trading is an odds game not a game of certainties.
There is no scientific method to help you determine prices in advance.
If there was we would all know the price and there would be no market! Furthermore, if you try and predict forex prices, you will lose because you are simply hoping and guessing and you should really be trading the reality and confirming every trading signal before executing.
Forget complicated trading system!
Simple systems work best as they are more robust in the face of brutal ever changing market conditions and have fewer elements to break.
Forget the news its just stories.
The news reflects the emotions of the losing majority and if you get involved in trying to follow it, you will lose.
You need to trade the odds to enjoy currency trading success.
The best way is to use forex charts, where you can simply see the reality of price change and you can either forex swing trade or trend follow - but never day trade!
Day trading is the best way to lose money out and doesn't work in the real world.
Forget all the gurus out there with their regular income systems and simulated track records; it's a loser's game.
Forex trading is a combination of a simple forex trading system; you totally understand this then allows you to execute it with discipline.
If you don't have the confidence in your system you will never have the discipline to follow it and these traits come from understanding and knowing a trading edge.
So there you have it perhaps the most important point of currency trading basics to learn but if you do and apply what we have written you could enjoy huge forex success.
Forex Money Management - Why It's so Hard to Accept Huge Profits
Forex Money Management - Why It's so Hard to Accept Huge Profits
by kelly Price
Many traders think that accepting losses is hard but it's not nearly as hard as accepting big profits. When you are engaged in forex money management your profits need to exceed your losses so you need to maximize them- so why do most traders have a problem, on the one hand we all want big gains - We do but:
Most traders have a psychological problem in running profits.
The typical forex trader gets a profit and feels pleased. The bigger it gets though, the more tempted he is to take it. Swings in price go back against his position and eats his open equity and this causes emotional problems.
The bigger the profit becomes the more tempted the trader is to take it. The trader ends up snatching the profit early, as open equity swings cause him to panic and he banks it and then what happens?
The trade continues the way he thought and goes on to pile up $10, 20 30,000 or more and he's not in.
Its hard holding a profit in a long term trend and taking short term swings against you, by sometimes thousands a day - but if you want to catch and hold the long term trends that's what you have to do.
It requires total understanding of your trading system and confidence in it - and this is why most traders can't do it they are emotional "shoot from the hip" traders or following a guru.
A good forex trading system will normally win 30 - 50% of the time (forget the traders who claim 90% their lying) so your losers will be normally more or the at the same level as your profits. So you need to have a profit 3 - 5 times bigger than your loss to make good profits on your overall trading account.
Most traders simply don't have the patience and discipline to follow long term trends but you must to win. However, look at the major forex trends and you will see they last for months or years and can make you rich - IF you can lock into and hold them.
Many forex traders simply can't cope with trend following so they try day trading and vendors present it as way to scalp small profits and build them over time - good story, doesn't work. Day trading is a loser's game as all short term volatility is random.
If you find long term trend following to stressful, try forex swing trading as profits and loses come quickly and you don't need to endure the open equity dips you do in trend following.
If you're a novice cut your teeth on swing trading and build up your confidence and discipline to try long term trend following - if you can catch these trends, accept open equity dips and keep your eyes on the end prize, you could make huge profits.
Trend following is hard but very lucrative - if you have the mindset you can turn these trends into huge profits and understand forex money management is not just about taking losses its also about accepting big profits to.
by kelly Price
Many traders think that accepting losses is hard but it's not nearly as hard as accepting big profits. When you are engaged in forex money management your profits need to exceed your losses so you need to maximize them- so why do most traders have a problem, on the one hand we all want big gains - We do but:
Most traders have a psychological problem in running profits.
The typical forex trader gets a profit and feels pleased. The bigger it gets though, the more tempted he is to take it. Swings in price go back against his position and eats his open equity and this causes emotional problems.
The bigger the profit becomes the more tempted the trader is to take it. The trader ends up snatching the profit early, as open equity swings cause him to panic and he banks it and then what happens?
The trade continues the way he thought and goes on to pile up $10, 20 30,000 or more and he's not in.
Its hard holding a profit in a long term trend and taking short term swings against you, by sometimes thousands a day - but if you want to catch and hold the long term trends that's what you have to do.
It requires total understanding of your trading system and confidence in it - and this is why most traders can't do it they are emotional "shoot from the hip" traders or following a guru.
A good forex trading system will normally win 30 - 50% of the time (forget the traders who claim 90% their lying) so your losers will be normally more or the at the same level as your profits. So you need to have a profit 3 - 5 times bigger than your loss to make good profits on your overall trading account.
Most traders simply don't have the patience and discipline to follow long term trends but you must to win. However, look at the major forex trends and you will see they last for months or years and can make you rich - IF you can lock into and hold them.
Many forex traders simply can't cope with trend following so they try day trading and vendors present it as way to scalp small profits and build them over time - good story, doesn't work. Day trading is a loser's game as all short term volatility is random.
If you find long term trend following to stressful, try forex swing trading as profits and loses come quickly and you don't need to endure the open equity dips you do in trend following.
If you're a novice cut your teeth on swing trading and build up your confidence and discipline to try long term trend following - if you can catch these trends, accept open equity dips and keep your eyes on the end prize, you could make huge profits.
Trend following is hard but very lucrative - if you have the mindset you can turn these trends into huge profits and understand forex money management is not just about taking losses its also about accepting big profits to.
วันอาทิตย์ที่ 27 มกราคม พ.ศ. 2551
Forex Education - A Lesson from History for Forex Success
Forex Education - A Lesson from History for Forex Success
by kelly price
Here we are going to look at the story of "the turtles". If you don't know who they were, then you should study this group of traders, as learned to trade in just 14 days and made $100 million, in just 4 years! There is much to learn and it's an inspiring story, so let's look at it.
The story begins in 1983, when trading legend Richard Dennis decided to prove that anyone could be a trader, if they had the right mindset, the right education and the right trading system.
He picked a group of people who had never traded before.
This group consisted of both sexes, various ages and various levels of academic achievement and variety of occupations from a security guard to a boy fresh from school.
He then set about teaching them to trade in 14 days.
He set them up with trading accounts and the results were astounding:
This group of traders went on to make $100 million in four years and many went on to become trading legends.
So what can you learn from the experiment?
The first lesson is, anyone has the potential to be a successful trader and every thing about currency trading can be learned.
Secondly, if you have the right forex education you can do it quickly, 14 days is not a long time to learn any trade!
Hang on! - You maybe saying:
If everyone can learn to trade, why do 95% of forex traders wipe out their accounts?
When Dennis taught the turtles, he used a simple method - but he rammed home two:
1. You need to have mental discipline to follow any system because if you don't, you have no method at all. He made sure that the traders knew exactly how and why the system worked, to give them the confidence and discipline to follow it.
Most traders simply never get confidence in what their doing, as they follow others or simply have no well thought out forex trading strategy and trade with their emotions.
2. Dennis also taught the traders to play great defence first. This meant strict money management to protect their equity above all else.
Just like any great football team you build from the back.
There is no point in having a great offensive line, if your backs can't protect you and it's the same in trading.
The Key Combination
Dennis essentially knew that you can teach anyone a trading system - but that's not enough, you need to combine this with mental discipline.
A lot is written about discipline in trading yet, few new traders really understand how hard it is to maintain it.
To keep executing a trading system when it's losing is tough!
Of course all systems will lose and you have to have the confidence, discipline and money management in place to ride the period out.
Could You Be Successful?
The story of the turtles actually inspired me to trade back in the eighties.
The reason it's so inspiring is because it shows anyone can make money with the right mindset and the right education.
Sure not everyone is going to become as rich as "the turtles" - but the opportunity exists and everyone can earn an income that more than compensates for the effort.
So the moral of the story is work smart, get a simple system, have confidence in it and apply it with discipline - if you can do that your on the road to currency trading success and a life changing income.
by kelly price
Here we are going to look at the story of "the turtles". If you don't know who they were, then you should study this group of traders, as learned to trade in just 14 days and made $100 million, in just 4 years! There is much to learn and it's an inspiring story, so let's look at it.
The story begins in 1983, when trading legend Richard Dennis decided to prove that anyone could be a trader, if they had the right mindset, the right education and the right trading system.
He picked a group of people who had never traded before.
This group consisted of both sexes, various ages and various levels of academic achievement and variety of occupations from a security guard to a boy fresh from school.
He then set about teaching them to trade in 14 days.
He set them up with trading accounts and the results were astounding:
This group of traders went on to make $100 million in four years and many went on to become trading legends.
So what can you learn from the experiment?
The first lesson is, anyone has the potential to be a successful trader and every thing about currency trading can be learned.
Secondly, if you have the right forex education you can do it quickly, 14 days is not a long time to learn any trade!
Hang on! - You maybe saying:
If everyone can learn to trade, why do 95% of forex traders wipe out their accounts?
When Dennis taught the turtles, he used a simple method - but he rammed home two:
1. You need to have mental discipline to follow any system because if you don't, you have no method at all. He made sure that the traders knew exactly how and why the system worked, to give them the confidence and discipline to follow it.
Most traders simply never get confidence in what their doing, as they follow others or simply have no well thought out forex trading strategy and trade with their emotions.
2. Dennis also taught the traders to play great defence first. This meant strict money management to protect their equity above all else.
Just like any great football team you build from the back.
There is no point in having a great offensive line, if your backs can't protect you and it's the same in trading.
The Key Combination
Dennis essentially knew that you can teach anyone a trading system - but that's not enough, you need to combine this with mental discipline.
A lot is written about discipline in trading yet, few new traders really understand how hard it is to maintain it.
To keep executing a trading system when it's losing is tough!
Of course all systems will lose and you have to have the confidence, discipline and money management in place to ride the period out.
Could You Be Successful?
The story of the turtles actually inspired me to trade back in the eighties.
The reason it's so inspiring is because it shows anyone can make money with the right mindset and the right education.
Sure not everyone is going to become as rich as "the turtles" - but the opportunity exists and everyone can earn an income that more than compensates for the effort.
So the moral of the story is work smart, get a simple system, have confidence in it and apply it with discipline - if you can do that your on the road to currency trading success and a life changing income.
วันเสาร์ที่ 26 มกราคม พ.ศ. 2551
Forex Trading System: Choosing the Right System
Forex Trading System: Choosing the Right System
by Harold Hsu
There are many Forex trading systems available for purchase online, and many traders are confused about which one is the best. In this article, allow me to explain how to choose the best trading system for you.
3 Things To Know
When looking for a good trading system to follow, it's important that:
1) You understand the logic behind how the system works
2) The system has an actual, consistent positive trading record
3) You're comfortable with the system / You like the system
These 3 criteria are generally in order of importance. Notice how the most important factor is that you understand how the system works. Many traders purchase trading system after trading system without understanding the reasons behind how they work.
These traders are looking for a magic pill that doesn't exist in reality. The moment one trading system starts to lose in a few consecutive trades, these traders will move on to the "next big thing" and buy another different system.
The truth is that if you understand the logic behind a good system, you'll understand that there will be times when such a system will occasionally fail. The important thing is to remember that on the overall, many systems will give you a positive profit at the end of the month. It is not these systems that fail: it is the undisciplined traders who don't understand their systems (and thus give up) that fail themselves.
As the saying goes, "A good trader will take an average system and make money with it. A bad trader will take a great system and still lose money with it". The key is in understanding how a system works, and having the discipline to stick with it when the going gets tough.
Once you understand how a system works, it's also important that you agree (and like) the logic behind it. If you don't like it, chances are it'll be even harder for you to be disciplined when following it.
One more thing that many traders overlook when purchasing a trading system, is the ACTUAL track record. Many scam sites out there use hypothetical (or back-tested) results to lure ignorant traders into buying their "trading systems". Always ask for an actual track record (i.e. traded with real money) and don't fall for those "in August, this system would have made $XXX!"-type of claims. You shouldn't care about how much the system "would have" made, you should care about how much it DID make!
by Harold Hsu
There are many Forex trading systems available for purchase online, and many traders are confused about which one is the best. In this article, allow me to explain how to choose the best trading system for you.
3 Things To Know
When looking for a good trading system to follow, it's important that:
1) You understand the logic behind how the system works
2) The system has an actual, consistent positive trading record
3) You're comfortable with the system / You like the system
These 3 criteria are generally in order of importance. Notice how the most important factor is that you understand how the system works. Many traders purchase trading system after trading system without understanding the reasons behind how they work.
These traders are looking for a magic pill that doesn't exist in reality. The moment one trading system starts to lose in a few consecutive trades, these traders will move on to the "next big thing" and buy another different system.
The truth is that if you understand the logic behind a good system, you'll understand that there will be times when such a system will occasionally fail. The important thing is to remember that on the overall, many systems will give you a positive profit at the end of the month. It is not these systems that fail: it is the undisciplined traders who don't understand their systems (and thus give up) that fail themselves.
As the saying goes, "A good trader will take an average system and make money with it. A bad trader will take a great system and still lose money with it". The key is in understanding how a system works, and having the discipline to stick with it when the going gets tough.
Once you understand how a system works, it's also important that you agree (and like) the logic behind it. If you don't like it, chances are it'll be even harder for you to be disciplined when following it.
One more thing that many traders overlook when purchasing a trading system, is the ACTUAL track record. Many scam sites out there use hypothetical (or back-tested) results to lure ignorant traders into buying their "trading systems". Always ask for an actual track record (i.e. traded with real money) and don't fall for those "in August, this system would have made $XXX!"-type of claims. You shouldn't care about how much the system "would have" made, you should care about how much it DID make!
Let a Professional Manage Your Forex Account
Let a Professional Manage Your Forex Account
by Mike LaVallee
Because forex trading is such a complicated business, there are many systems in place to help new or cautious traders get involved without going bankrupt. There are mini accounts that let you invest only small amounts of money, and there are even automated accounts that let a computer program do it all for you. And in between those extremes is the managed forex account, which gives you full access to the market but gives you an adviser to help you navigate it.
A managed forex account is perfect for someone with no experience, or limited experience, in the forex market. It's also good for someone who wants to invest but doesn't want to go through all the studying and training necessary to do a good job of it himself. Furthermore, a managed account is a godsend if you want to invest but simply don't have the time or the inclination to watch the market 24 hours a day.
Managed accounts always require a minimum investment of at least $10,000, and some have the minimum set as high as $250,000. This makes it off-limits to many individuals, especially considering you never want to invest more than you can afford to lose. It is mostly businesses and corporations that use managed accounts, though more and more well-heeled individuals are taking advantage of it in the 21st century.
The reason for the high minimum investment is that a managed account has to have someone managing it -- an actual human being, that is, not a computer program. If the minimum investment were more reasonable, too many people would want managed accounts, and the managers wouldn't be able to handle their client load.
In general, a managed account is best for long-term investors. Someone wanting to get into the forex market, make a lot of money through aggressive, risky ventures, then get out again, would not benefit from a managed account. Most managers favor a conservative, slow-growth strategy, usually suggesting that investors stay with the program for two years to show real profits. (Most systems let you withdraw your money and quit whenever you want, though, with no penalties for doing so.)
There is a fee for managed accounts, of course; nothing comes for free. Usually the fee is based on the performance of the market, with the manager taking a percentage of your net profits each quarter. This fee is well worth it for many individuals, though, as they find a managed account gives them peace of mind with regard to where their money is being invested and what kind of return it's yielding them.
by Mike LaVallee
Because forex trading is such a complicated business, there are many systems in place to help new or cautious traders get involved without going bankrupt. There are mini accounts that let you invest only small amounts of money, and there are even automated accounts that let a computer program do it all for you. And in between those extremes is the managed forex account, which gives you full access to the market but gives you an adviser to help you navigate it.
A managed forex account is perfect for someone with no experience, or limited experience, in the forex market. It's also good for someone who wants to invest but doesn't want to go through all the studying and training necessary to do a good job of it himself. Furthermore, a managed account is a godsend if you want to invest but simply don't have the time or the inclination to watch the market 24 hours a day.
Managed accounts always require a minimum investment of at least $10,000, and some have the minimum set as high as $250,000. This makes it off-limits to many individuals, especially considering you never want to invest more than you can afford to lose. It is mostly businesses and corporations that use managed accounts, though more and more well-heeled individuals are taking advantage of it in the 21st century.
The reason for the high minimum investment is that a managed account has to have someone managing it -- an actual human being, that is, not a computer program. If the minimum investment were more reasonable, too many people would want managed accounts, and the managers wouldn't be able to handle their client load.
In general, a managed account is best for long-term investors. Someone wanting to get into the forex market, make a lot of money through aggressive, risky ventures, then get out again, would not benefit from a managed account. Most managers favor a conservative, slow-growth strategy, usually suggesting that investors stay with the program for two years to show real profits. (Most systems let you withdraw your money and quit whenever you want, though, with no penalties for doing so.)
There is a fee for managed accounts, of course; nothing comes for free. Usually the fee is based on the performance of the market, with the manager taking a percentage of your net profits each quarter. This fee is well worth it for many individuals, though, as they find a managed account gives them peace of mind with regard to where their money is being invested and what kind of return it's yielding them.
Forex Trading: The RIGHT Way To Trade
Forex Trading: The RIGHT Way To Trade
by Harold Hsu
Poor Forex traders like to spend most of their time looking for the "Best" trading system to work with... but unfortunately for them, this approach often causes them to eventually wipe out their trading accounts! Allow me explain why.
Most Traders Don't Understand The Nature Of Trading Forex
Many people think that Forex trading is just like any other form of trading. For example, some stock traders might mistakenly think that they can trade Forex in the same way that they trade stocks. I know of a stock trader who lost more than $50,000 before he began to admit that he didn't know what he was doing... so please don't make the same mistake!
The Nature Of The Forex Market
Now that you know that the Forex market is unique, let me share with you how it actually works...
Unlike most other financial markets, Forex is one of the most risky and volatile. This is largely due to the lack of a central authority to monitor the market and to and act in the interest of the traders. If stock trading is like fishing in a pond (for example), then Forex trading would be like deep sea fishing: the potential risks and rewards are both much larger!
How Poor Traders Trade
I'll tell it to you straight: Forex trading is a game of probabilities.
No matter which trading system you choose to follow, you are essentially trading based on trade-winning probabilities. All trading systems are based on something like: "if X happens, Y usually happens next".
Unfortunately many poor traders tend to read this as: "if X happens, Y Always happens". This results in these traders switching from system to system whenever Y doesn't happen for them.
The Good Traders
Good traders acknowledge the fact that there will be times when even the most reliable trading systems will fail for a number of consecutive trades. The good traders understand their trading systems well enough to know that even with consecutive losses, the system will usually result in an overall winning month for them.
You see, it's not about how many times you win or lose every few days, but how MUCH you win at the end of the month.
by Harold Hsu
Poor Forex traders like to spend most of their time looking for the "Best" trading system to work with... but unfortunately for them, this approach often causes them to eventually wipe out their trading accounts! Allow me explain why.
Most Traders Don't Understand The Nature Of Trading Forex
Many people think that Forex trading is just like any other form of trading. For example, some stock traders might mistakenly think that they can trade Forex in the same way that they trade stocks. I know of a stock trader who lost more than $50,000 before he began to admit that he didn't know what he was doing... so please don't make the same mistake!
The Nature Of The Forex Market
Now that you know that the Forex market is unique, let me share with you how it actually works...
Unlike most other financial markets, Forex is one of the most risky and volatile. This is largely due to the lack of a central authority to monitor the market and to and act in the interest of the traders. If stock trading is like fishing in a pond (for example), then Forex trading would be like deep sea fishing: the potential risks and rewards are both much larger!
How Poor Traders Trade
I'll tell it to you straight: Forex trading is a game of probabilities.
No matter which trading system you choose to follow, you are essentially trading based on trade-winning probabilities. All trading systems are based on something like: "if X happens, Y usually happens next".
Unfortunately many poor traders tend to read this as: "if X happens, Y Always happens". This results in these traders switching from system to system whenever Y doesn't happen for them.
The Good Traders
Good traders acknowledge the fact that there will be times when even the most reliable trading systems will fail for a number of consecutive trades. The good traders understand their trading systems well enough to know that even with consecutive losses, the system will usually result in an overall winning month for them.
You see, it's not about how many times you win or lose every few days, but how MUCH you win at the end of the month.
วันศุกร์ที่ 25 มกราคม พ.ศ. 2551
Forex Traders: Taking Responsibility
Forex Traders: Taking Responsibility
by Harold Hsu
All good traders understand that every trading decision and action made, is his own responsibility. You'll never meet a successful trader who blames someone or something else for the consequences of his trading results.
You see, it's only when you begin to accept full responsibility for your results, that you'll rule out the convenient possibility of using excuses. After all, it's much easier to TALK about why it's not your fault when you make a losing trade. It's easier to say "hey, I didn't know there was an important economic announcement coming out tonight" rather than to go and check out the actual schedule of economic announcements for the week.
You can just blame bad luck, or even blame it on the weather. But whatever your "reasons" are, they're not going to help you trade better at all. Once you finally realize that the only way you'll make money in Forex trading is to look out for yourself, you'll never be a successful trader. I'm sorry for being so blunt, but it's the truth.
No one's going to fight your battles for you. The moment you realize that you are solely responsible for your trading results, you'll soon start looking into ways to improve it.
Let me ask you: Do you actively monitor your trades using some sort of trading journal or trading log? Do you spend time looking over failed trades and whether they could have been avoided?
If you answered "yes" to both questions, great! If you're not already a consistently profitable trader, you're going to be one soon enough.
But if you answered "no" to either question, you might want to think about how serious you are about Forex trading... there's no middle ground here: You either work hard at it and succeed, or you continue to give "reasons" for losing your trades.
by Harold Hsu
All good traders understand that every trading decision and action made, is his own responsibility. You'll never meet a successful trader who blames someone or something else for the consequences of his trading results.
You see, it's only when you begin to accept full responsibility for your results, that you'll rule out the convenient possibility of using excuses. After all, it's much easier to TALK about why it's not your fault when you make a losing trade. It's easier to say "hey, I didn't know there was an important economic announcement coming out tonight" rather than to go and check out the actual schedule of economic announcements for the week.
You can just blame bad luck, or even blame it on the weather. But whatever your "reasons" are, they're not going to help you trade better at all. Once you finally realize that the only way you'll make money in Forex trading is to look out for yourself, you'll never be a successful trader. I'm sorry for being so blunt, but it's the truth.
No one's going to fight your battles for you. The moment you realize that you are solely responsible for your trading results, you'll soon start looking into ways to improve it.
Let me ask you: Do you actively monitor your trades using some sort of trading journal or trading log? Do you spend time looking over failed trades and whether they could have been avoided?
If you answered "yes" to both questions, great! If you're not already a consistently profitable trader, you're going to be one soon enough.
But if you answered "no" to either question, you might want to think about how serious you are about Forex trading... there's no middle ground here: You either work hard at it and succeed, or you continue to give "reasons" for losing your trades.
Forex Traders: Taking Responsibility
Forex Traders: Taking Responsibility
by Harold Hsu
All good traders understand that every trading decision and action made, is his own responsibility. You'll never meet a successful trader who blames someone or something else for the consequences of his trading results.
You see, it's only when you begin to accept full responsibility for your results, that you'll rule out the convenient possibility of using excuses. After all, it's much easier to TALK about why it's not your fault when you make a losing trade. It's easier to say "hey, I didn't know there was an important economic announcement coming out tonight" rather than to go and check out the actual schedule of economic announcements for the week.
You can just blame bad luck, or even blame it on the weather. But whatever your "reasons" are, they're not going to help you trade better at all. Once you finally realize that the only way you'll make money in Forex trading is to look out for yourself, you'll never be a successful trader. I'm sorry for being so blunt, but it's the truth.
No one's going to fight your battles for you. The moment you realize that you are solely responsible for your trading results, you'll soon start looking into ways to improve it.
Let me ask you: Do you actively monitor your trades using some sort of trading journal or trading log? Do you spend time looking over failed trades and whether they could have been avoided?
If you answered "yes" to both questions, great! If you're not already a consistently profitable trader, you're going to be one soon enough.
But if you answered "no" to either question, you might want to think about how serious you are about Forex trading... there's no middle ground here: You either work hard at it and succeed, or you continue to give "reasons" for losing your trades.
by Harold Hsu
All good traders understand that every trading decision and action made, is his own responsibility. You'll never meet a successful trader who blames someone or something else for the consequences of his trading results.
You see, it's only when you begin to accept full responsibility for your results, that you'll rule out the convenient possibility of using excuses. After all, it's much easier to TALK about why it's not your fault when you make a losing trade. It's easier to say "hey, I didn't know there was an important economic announcement coming out tonight" rather than to go and check out the actual schedule of economic announcements for the week.
You can just blame bad luck, or even blame it on the weather. But whatever your "reasons" are, they're not going to help you trade better at all. Once you finally realize that the only way you'll make money in Forex trading is to look out for yourself, you'll never be a successful trader. I'm sorry for being so blunt, but it's the truth.
No one's going to fight your battles for you. The moment you realize that you are solely responsible for your trading results, you'll soon start looking into ways to improve it.
Let me ask you: Do you actively monitor your trades using some sort of trading journal or trading log? Do you spend time looking over failed trades and whether they could have been avoided?
If you answered "yes" to both questions, great! If you're not already a consistently profitable trader, you're going to be one soon enough.
But if you answered "no" to either question, you might want to think about how serious you are about Forex trading... there's no middle ground here: You either work hard at it and succeed, or you continue to give "reasons" for losing your trades.
Forex Trading System: Your Own Unique Trading System
Forex Trading System: Your Own Unique Trading System
by Harold Hsu
Every successful Forex trader follows a trading system that fits his or her unique personality. Some use a long-term approach, some use a mechanical approach and some even use an intuitive approach. I've also known scalpers, arbitragers and momentum traders who have made a good living out of their trading systems.
As you probably realize by now, there is no one "ultimate" trading methodology. Actually, the type of trading system doesn't matter at all. But what these successful traders have in common is that they absolutely love their trading system. They're comfortable with it, they understand how it works, and most importantly, they like it. These people wouldn't dream of trading any other way.
There are too many traders today trying to chase hottest and latest fad in trading. For example, the hot thing right now is day trading. Day trading involves the opening and closing of (typically multiple) trade positions in a single day. No positions are held overnight. But unknowingly to many traders, day trading my not be suitable for them at all. To be a successful day trader, you'll need to love everyday short term market price fluctuations. You'll need to be able to handle the pressure of losing hundreds (or perhaps even thousands) of dollars in the short time span of a few hours or even minutes.
Yes, there are many traders who make a very good living out of day trading, but there are even more traders who lose the shirts off their backs after only a few months of day trading.
You'll just have to decide for yourself which trading approach you feel most comfortable with. Remember that there's no right or wrong way to trade: it all depends on your preferences.
by Harold Hsu
Every successful Forex trader follows a trading system that fits his or her unique personality. Some use a long-term approach, some use a mechanical approach and some even use an intuitive approach. I've also known scalpers, arbitragers and momentum traders who have made a good living out of their trading systems.
As you probably realize by now, there is no one "ultimate" trading methodology. Actually, the type of trading system doesn't matter at all. But what these successful traders have in common is that they absolutely love their trading system. They're comfortable with it, they understand how it works, and most importantly, they like it. These people wouldn't dream of trading any other way.
There are too many traders today trying to chase hottest and latest fad in trading. For example, the hot thing right now is day trading. Day trading involves the opening and closing of (typically multiple) trade positions in a single day. No positions are held overnight. But unknowingly to many traders, day trading my not be suitable for them at all. To be a successful day trader, you'll need to love everyday short term market price fluctuations. You'll need to be able to handle the pressure of losing hundreds (or perhaps even thousands) of dollars in the short time span of a few hours or even minutes.
Yes, there are many traders who make a very good living out of day trading, but there are even more traders who lose the shirts off their backs after only a few months of day trading.
You'll just have to decide for yourself which trading approach you feel most comfortable with. Remember that there's no right or wrong way to trade: it all depends on your preferences.
Profitable Forex Trading: Stop Asking Questions!
Profitable Forex Trading: Stop Asking Questions!
by Harold Hsu
I heard this saying a few years ago: "If you have to ask you shouldn't be trading" And I thought to myself, wow, that's such a simple, yet powerful statement!
Think about it. If you had a reliable, trading system that consistently got you trading profits, would you EVER have to ask anyone else's opinion? Would you have to ask anyone questions about trading?
You see, too many traders today are asking question after question without bothering to find out the answers for themselves. These people scour online forums and websites, asking questions about trading and waiting for someone to provide a quick reply. And in the end, these people don't really learn anything except how to confuse themselves.
I think you'll agree with me that good traders are action-orientated. They look for news reports to read, plan out their trading systems, and execute their orders based on their research and knowledge. But what good traders Don't do however, is to ask other traders' opinions. One good reason for this is because more than 90% of the traders in the World today are losing traders anyway! Why get advice from people who can't trade for themselves?
Also, if you keep posing questions to different people, you'll eventually get very confused yourself. This is because many people trade in different ways. If you're a long-term trend trader, why ask advice from a day trader? If you're a value investor, then why seek an opinion from a momentum trader? This is a complete waste of time and effort.
Asking too many questions takes away your ability to feel responsible for your own actions. If a trade fails, it's not your fault right? After all, you took this trading advice from someone else... let's just blame that guy! He gave you bad trading advice and it's his fault that you lost money!
But guess what, that guy doesn't care. He's not the one losing money... you are! So take full ownership of your trading career, and find out the answers to your own questions if you have to. Don't rely on anyone else but yourself.
by Harold Hsu
I heard this saying a few years ago: "If you have to ask you shouldn't be trading" And I thought to myself, wow, that's such a simple, yet powerful statement!
Think about it. If you had a reliable, trading system that consistently got you trading profits, would you EVER have to ask anyone else's opinion? Would you have to ask anyone questions about trading?
You see, too many traders today are asking question after question without bothering to find out the answers for themselves. These people scour online forums and websites, asking questions about trading and waiting for someone to provide a quick reply. And in the end, these people don't really learn anything except how to confuse themselves.
I think you'll agree with me that good traders are action-orientated. They look for news reports to read, plan out their trading systems, and execute their orders based on their research and knowledge. But what good traders Don't do however, is to ask other traders' opinions. One good reason for this is because more than 90% of the traders in the World today are losing traders anyway! Why get advice from people who can't trade for themselves?
Also, if you keep posing questions to different people, you'll eventually get very confused yourself. This is because many people trade in different ways. If you're a long-term trend trader, why ask advice from a day trader? If you're a value investor, then why seek an opinion from a momentum trader? This is a complete waste of time and effort.
Asking too many questions takes away your ability to feel responsible for your own actions. If a trade fails, it's not your fault right? After all, you took this trading advice from someone else... let's just blame that guy! He gave you bad trading advice and it's his fault that you lost money!
But guess what, that guy doesn't care. He's not the one losing money... you are! So take full ownership of your trading career, and find out the answers to your own questions if you have to. Don't rely on anyone else but yourself.
วันพฤหัสบดีที่ 24 มกราคม พ.ศ. 2551
Forex Trading Strategies and Forex Market Volatility
Forex Trading Strategies and Forex Market Volatility
by Andrew Daigle
Part of developing a profitable Forex trading strategy involves being able to determine market volatility. The Forex market is open 24 hours per day and you will find it impossible to keep track of all market activities, all the time. You will need to understand the timing of various markets, particularly those in which you are trading and those that influence your trades, so that you are in a position to make the best possible decisions during your trading hours.
Different markets are affected by differing market conditions. All currency pairs are subject to market volatility, but most currencies tend to become more or less volatile during certain times of the day. As a trader, you will need to have some knowledge of the currency trading system, currency pairings in different times zones and the conditions that affect their volatility.
The London market is the largest and most volatile Forex market in the world since some of the largest dealing desks of large banks are located there and transactions that take place usually involve large sums of money. The London market share is about 30% of all markets. The market hours are from 2 am to 12 pm EST, which is also the time for which most transactions are completed. The benchmark established for volatility is 80 pips and more than half of the London market currency pairings are likely to reach in excess of 80 pips. It would not be uncommon for the daily range of GBP/CHF and GBP/JPY currency pairs to average more than 140 pips. The ability of these currency pairs to generate huge profits in a short amount of time appeals to traders willing to take risks in the currency trading system.
Since most large market participants complete their circle of currency conversions during the London market hours, daily trade activities peak during this time, causing high volatility. Near the end of the London trading session most large investors will convert their European assets to US dollar assets in anticipation of the opening of the US market. This conversion is responsible for the increased volatility in GBP/CHF and GBP/JPY currency pairs. The New York trading session is the benchmark for US trading and it represents the second largest FOREX market. Trading hours are from 8 am and 5 pm EST. The majority of transactions occur in the US market from 8 am to noon EST. During this timeframe, the European market is still in session, which creates a market of high liquidity. Trading during this period of overlap accounts for about 70% of the currency pair trading in the European session and about 80% of currency pair trading in the US session.
Other currency pairs that appeal to high-risk traders during the London market hours include the USD/CHF, GBP/USD, USD/CAD and EUR/USD currency pairs. It is not uncommon for these pairs to reach a daily range of about 100 pips. This level of volatility creates opportunities for entry into the market. In contrast, is not uncommon for the AUD/JPY, EUR/CHF, AUD/USD and NZD/USD currency pairs to reach a daily range of about 50 pips. This level of volatility is more appealing to traders who attempt to avoid risks. The level of volatility indicates that these pairs may be less likely to create a loss.
The London market also overlaps with the Asian market. The Tokyo trading session is the benchmark for the Asian market. Trading hours are from 7 pm and 4 am EST. Large investors take positions in the Tokyo market in anticipation of the opening of the London session. The GBP/CHF and GBP/JPY currency pairs are also highly volatile during this timeframe of overlap. Trading during the period of overlap, which is between 2 am and 4 am, is the lowest of any trading session. Traders use these slow trading hours to position themselves for the opening of the European or US market.
by Andrew Daigle
Part of developing a profitable Forex trading strategy involves being able to determine market volatility. The Forex market is open 24 hours per day and you will find it impossible to keep track of all market activities, all the time. You will need to understand the timing of various markets, particularly those in which you are trading and those that influence your trades, so that you are in a position to make the best possible decisions during your trading hours.
Different markets are affected by differing market conditions. All currency pairs are subject to market volatility, but most currencies tend to become more or less volatile during certain times of the day. As a trader, you will need to have some knowledge of the currency trading system, currency pairings in different times zones and the conditions that affect their volatility.
The London market is the largest and most volatile Forex market in the world since some of the largest dealing desks of large banks are located there and transactions that take place usually involve large sums of money. The London market share is about 30% of all markets. The market hours are from 2 am to 12 pm EST, which is also the time for which most transactions are completed. The benchmark established for volatility is 80 pips and more than half of the London market currency pairings are likely to reach in excess of 80 pips. It would not be uncommon for the daily range of GBP/CHF and GBP/JPY currency pairs to average more than 140 pips. The ability of these currency pairs to generate huge profits in a short amount of time appeals to traders willing to take risks in the currency trading system.
Since most large market participants complete their circle of currency conversions during the London market hours, daily trade activities peak during this time, causing high volatility. Near the end of the London trading session most large investors will convert their European assets to US dollar assets in anticipation of the opening of the US market. This conversion is responsible for the increased volatility in GBP/CHF and GBP/JPY currency pairs. The New York trading session is the benchmark for US trading and it represents the second largest FOREX market. Trading hours are from 8 am and 5 pm EST. The majority of transactions occur in the US market from 8 am to noon EST. During this timeframe, the European market is still in session, which creates a market of high liquidity. Trading during this period of overlap accounts for about 70% of the currency pair trading in the European session and about 80% of currency pair trading in the US session.
Other currency pairs that appeal to high-risk traders during the London market hours include the USD/CHF, GBP/USD, USD/CAD and EUR/USD currency pairs. It is not uncommon for these pairs to reach a daily range of about 100 pips. This level of volatility creates opportunities for entry into the market. In contrast, is not uncommon for the AUD/JPY, EUR/CHF, AUD/USD and NZD/USD currency pairs to reach a daily range of about 50 pips. This level of volatility is more appealing to traders who attempt to avoid risks. The level of volatility indicates that these pairs may be less likely to create a loss.
The London market also overlaps with the Asian market. The Tokyo trading session is the benchmark for the Asian market. Trading hours are from 7 pm and 4 am EST. Large investors take positions in the Tokyo market in anticipation of the opening of the London session. The GBP/CHF and GBP/JPY currency pairs are also highly volatile during this timeframe of overlap. Trading during the period of overlap, which is between 2 am and 4 am, is the lowest of any trading session. Traders use these slow trading hours to position themselves for the opening of the European or US market.
Forex Trading Psychology: Preparing Yourself
Forex Trading Psychology: Preparing Yourself
by Harold Hsu
Before the start of each trading day, take a few minutes of "quiet time" to yourself. Imagine yourself looking at the day's price fluctuations, and imagine yourself having one or two winning trades, and one or two losing ones... See yourself cutting your losses and letting your winning trades ride. See yourself being objective about all your trading decisions: the goal is to make an overall profit at the end of the month, not to win in every trade today.
Many traders cannot accept the fact that they'll typically get some winning trades and some losing ones. But it's inevitable. They cannot let go of the obsession to win all the time... They know they cannot win in all their trades, and yet they spend unnecessary time obsessing over the one or two bad trades that they made today.
The key is risk management, not risk avoidance.
It's important that you psyche yourself up to accept any losses, even before you actually begin trading for the day. You'll need to practice the emotional experience of accepting a losing trade. If you wait till you actually start losing to start practicing, then it's often too late. Your powerful emotions will convince you to hang on to your losing trades, and to remove your stop-loss levels: "If it goes down, it'll have to come back up eventually, right? I'll just need to ride this one out"
Unfortunately, the answer is no, you can't. You'll need to have appropriate stop-loss levels and stick to it, no matter what. That's what trading discipline is all about. And preparing yourself emotionally before each trading day is a great way to help with your trading discipline.
As easy as this may sound, this will probably take some practice. Try this quick five minute "mental preparation" exercise every day and you'll soon experience the emotional benefits (less anxiety!) and make better (more objective) trading decisions.
by Harold Hsu
Before the start of each trading day, take a few minutes of "quiet time" to yourself. Imagine yourself looking at the day's price fluctuations, and imagine yourself having one or two winning trades, and one or two losing ones... See yourself cutting your losses and letting your winning trades ride. See yourself being objective about all your trading decisions: the goal is to make an overall profit at the end of the month, not to win in every trade today.
Many traders cannot accept the fact that they'll typically get some winning trades and some losing ones. But it's inevitable. They cannot let go of the obsession to win all the time... They know they cannot win in all their trades, and yet they spend unnecessary time obsessing over the one or two bad trades that they made today.
The key is risk management, not risk avoidance.
It's important that you psyche yourself up to accept any losses, even before you actually begin trading for the day. You'll need to practice the emotional experience of accepting a losing trade. If you wait till you actually start losing to start practicing, then it's often too late. Your powerful emotions will convince you to hang on to your losing trades, and to remove your stop-loss levels: "If it goes down, it'll have to come back up eventually, right? I'll just need to ride this one out"
Unfortunately, the answer is no, you can't. You'll need to have appropriate stop-loss levels and stick to it, no matter what. That's what trading discipline is all about. And preparing yourself emotionally before each trading day is a great way to help with your trading discipline.
As easy as this may sound, this will probably take some practice. Try this quick five minute "mental preparation" exercise every day and you'll soon experience the emotional benefits (less anxiety!) and make better (more objective) trading decisions.
Forex Traders: For The Record
Forex Traders: For The Record
by Harold Hsu
Forex traders live from moment to moment. With today's advanced technology that gives us tick-by-tick live price feeds, we are constantly looking at the trading charts at all times of the day... and we start to become obsessed with every single price fluctuation.
In this climate of rapidly changing market prices, it's not easy to trade while keeping ourselves focused on the big picture. Unfortunately, focusing on the big picture is essential for sustained profitability as a trader.
And that's why it's important to keep some sort of record of all our trades. Some people call it a trading diary, but I personally prefer to call it a trade log. Call it whatever you wish... the idea is to take down your reasons for entering (and exiting) your trades, and to also note down your feelings during those trades.
Now, this idea may turn you off because of its sentimental connotations, but believe me, there's really nothing sentimental about a trade log at all. In fact, the opposite is preferred! You'll need to objectively list down the reasons for your trading actions, so that you can later analyze your trading decisions: "Did I do the right thing?", or "Why did I enter into this trade in the first place?"
These are often the questions we ask ourselves after a trade goes bad. Sometimes it's our fault because we ignored the rules of our trading system, and sometimes it's not our fault at all. The point is to understand whether your losing trades could have been avoided at all.
It's hard to admit it when we make a mistake, and it's the job of a trade log to inform you whether the loss could have been avoided.
by Harold Hsu
Forex traders live from moment to moment. With today's advanced technology that gives us tick-by-tick live price feeds, we are constantly looking at the trading charts at all times of the day... and we start to become obsessed with every single price fluctuation.
In this climate of rapidly changing market prices, it's not easy to trade while keeping ourselves focused on the big picture. Unfortunately, focusing on the big picture is essential for sustained profitability as a trader.
And that's why it's important to keep some sort of record of all our trades. Some people call it a trading diary, but I personally prefer to call it a trade log. Call it whatever you wish... the idea is to take down your reasons for entering (and exiting) your trades, and to also note down your feelings during those trades.
Now, this idea may turn you off because of its sentimental connotations, but believe me, there's really nothing sentimental about a trade log at all. In fact, the opposite is preferred! You'll need to objectively list down the reasons for your trading actions, so that you can later analyze your trading decisions: "Did I do the right thing?", or "Why did I enter into this trade in the first place?"
These are often the questions we ask ourselves after a trade goes bad. Sometimes it's our fault because we ignored the rules of our trading system, and sometimes it's not our fault at all. The point is to understand whether your losing trades could have been avoided at all.
It's hard to admit it when we make a mistake, and it's the job of a trade log to inform you whether the loss could have been avoided.
Forex Trading - How To Keep A Trade Log
Forex Trading - How To Keep A Trade Log
by Harold Hsu
When many people think about a trade log, they often think along the lines of keeping a diary... you write down your trade details in pen (or pencil) and paper, right? While this may be one way of keeping a trade log, it's actually not the best one.
One of the best (and most convenient) ways of keeping a trade log is to do it on your computer. While many traders like to use a Microsoft Word document for this purpose, I personally prefer to use Excel instead.
But although the Microsoft Excel application is great for data entry, it's perhaps not too useful for writing down paragraphs of notes. Both Word and Excel have their own pros and cons... and it's up to you to decide which is best for you.
Computer software documents are easy to store and retrieve: just click 'Save' to keep it, and it's only a "double-click" away if you need to refer to it again. However, don't forget to keep backup copies of your trade log... you'll never know when technology might break down and fail.
Another choice is to use a tape recorder. This is often preferred by traders who don't particularly like to write. They just need to press the record button, and start speaking about their trade criteria and their feelings about a trade. This is the easiest way to record your trade details, but is also unfortunately the most tedious in terms of data retrieval (if you want to pull out past records, you'll have to listen through the entire voice recording).
Whichever method you choose, just make sure that you're comfortable and consistent with it. Don't use voice recordings today and then use a Word document tomorrow to log your trades. Your notes will end up all over the place, which makes future data retrieval a nightmare. Keep things simple and neat: always use the same format to log your trades.
by Harold Hsu
When many people think about a trade log, they often think along the lines of keeping a diary... you write down your trade details in pen (or pencil) and paper, right? While this may be one way of keeping a trade log, it's actually not the best one.
One of the best (and most convenient) ways of keeping a trade log is to do it on your computer. While many traders like to use a Microsoft Word document for this purpose, I personally prefer to use Excel instead.
But although the Microsoft Excel application is great for data entry, it's perhaps not too useful for writing down paragraphs of notes. Both Word and Excel have their own pros and cons... and it's up to you to decide which is best for you.
Computer software documents are easy to store and retrieve: just click 'Save' to keep it, and it's only a "double-click" away if you need to refer to it again. However, don't forget to keep backup copies of your trade log... you'll never know when technology might break down and fail.
Another choice is to use a tape recorder. This is often preferred by traders who don't particularly like to write. They just need to press the record button, and start speaking about their trade criteria and their feelings about a trade. This is the easiest way to record your trade details, but is also unfortunately the most tedious in terms of data retrieval (if you want to pull out past records, you'll have to listen through the entire voice recording).
Whichever method you choose, just make sure that you're comfortable and consistent with it. Don't use voice recordings today and then use a Word document tomorrow to log your trades. Your notes will end up all over the place, which makes future data retrieval a nightmare. Keep things simple and neat: always use the same format to log your trades.
Forex Trading Logs: 4 Important Details To Include
Forex Trading Logs: 4 Important Details To Include
by Harold Hsu
Many traders know it's a good idea to keep a trading log but what exactly does a trader keep in his log?
While different people keep records of different details, here are 4 important points that you absolutely must include in your own log
Detail #1: Entry/Exit setup (entry criteria)
The entry setup criteria is basically the market conditions which are required to trigger a buy or sell signal, according to your trading system (you DO have a trading system, right?)
This log serves as a reminder to yourself not to trade against the rules of your own system. Every time you're tempted to enter into a trade that doesn't follow your system rules, this step will hopefully remind you not to make that trade. Also, past entry setup logs help you to decide if a losing trade could have been avoided. If your log shows that you completely obeyed the rules of your system, then don't beat yourself over a loss you did the right thing.
Detail #2: Entry price & Lot Size
The lot size log serves to help you stick to your money management rules (you DO have a money management system, right?), and the entry/exit price helps you to calculate your pip gain or loss.
Detail #3: Time & Date
This log enables you to go back and analyze any specific trade you wish to examine. Without the time and date, you won't know which portion of the trading charts you should be looking at.
Detail #4: Your Feelings
This is perhaps one of the most important logs to make. You'll need to keep a record about how you feel about the trades that you took. Were you hesitant? Or were you confident? Keeping a record of your feelings helps you become aware of your psychological state when trading, and can be very helpful with identifying patterns in your trading behaviour.
by Harold Hsu
Many traders know it's a good idea to keep a trading log but what exactly does a trader keep in his log?
While different people keep records of different details, here are 4 important points that you absolutely must include in your own log
Detail #1: Entry/Exit setup (entry criteria)
The entry setup criteria is basically the market conditions which are required to trigger a buy or sell signal, according to your trading system (you DO have a trading system, right?)
This log serves as a reminder to yourself not to trade against the rules of your own system. Every time you're tempted to enter into a trade that doesn't follow your system rules, this step will hopefully remind you not to make that trade. Also, past entry setup logs help you to decide if a losing trade could have been avoided. If your log shows that you completely obeyed the rules of your system, then don't beat yourself over a loss you did the right thing.
Detail #2: Entry price & Lot Size
The lot size log serves to help you stick to your money management rules (you DO have a money management system, right?), and the entry/exit price helps you to calculate your pip gain or loss.
Detail #3: Time & Date
This log enables you to go back and analyze any specific trade you wish to examine. Without the time and date, you won't know which portion of the trading charts you should be looking at.
Detail #4: Your Feelings
This is perhaps one of the most important logs to make. You'll need to keep a record about how you feel about the trades that you took. Were you hesitant? Or were you confident? Keeping a record of your feelings helps you become aware of your psychological state when trading, and can be very helpful with identifying patterns in your trading behaviour.
วันจันทร์ที่ 21 มกราคม พ.ศ. 2551
Forex Trading Charts - Nothing Else Matters
Forex Trading Charts - Nothing Else Matters
by Harold Hsu
Many Forex traders like to obsess over economic announcements and fundamental analysis. While these are indeed important aspects to pay attention to, many traders tend to forget that at the end of the day, the only thing that really matters is what the charts are telling them.
Fundamental Analysis?
It makes logical sense to trade according to the recent economic happenings and general market sentiment as published in the news. Currency analysts often try to predict where certain currencies are headed: Is the U.S. dollar going to keep depreciating? Or is it going to turn around soon?
I know this may sound contrary to common knowledge, but as good Forex traders, we really shouldn't care about what currency analysts think. Please allow me to explain why.
Analysts Aren't Traders
This may seem blatantly obvious, but you'd be surprised at how often people tend to forget this fact. Without trying to discredit any currency analysts (I still love them!), you'll do well to remember that at the end of the day, currency traders are the ones that put their money where their mouth is; not the analysts.
Analysts WRITE about what they think is going to happen, but it is the traders that TRADE with their money on the line. If I had to take trading advice from someone, I'd rather take it from a profitable trader, not an analyst or news report.
Why Not Always Listen To Analysts?
Again, I want to stress that currency analysts do have their place in the Forex market... it's just that they're not good trading advisors.
You see, in the market there are typically 2 aspects of trading:
1. Economic News / General "Market Sentiment"
2. Actual Market Price Movements / Actual Reactions To Economic News
The first aspect is what the market analysts specialize in. They're good at discussing the theoretical side of currency movements. They talk about how currency prices SHOULD move in relation to recent news.
The part they don't cover too well however, is the second aspect. When it comes to the practical application of analyzing ACTUAL currency movements in response to news, they tend to fall short.
by Harold Hsu
Many Forex traders like to obsess over economic announcements and fundamental analysis. While these are indeed important aspects to pay attention to, many traders tend to forget that at the end of the day, the only thing that really matters is what the charts are telling them.
Fundamental Analysis?
It makes logical sense to trade according to the recent economic happenings and general market sentiment as published in the news. Currency analysts often try to predict where certain currencies are headed: Is the U.S. dollar going to keep depreciating? Or is it going to turn around soon?
I know this may sound contrary to common knowledge, but as good Forex traders, we really shouldn't care about what currency analysts think. Please allow me to explain why.
Analysts Aren't Traders
This may seem blatantly obvious, but you'd be surprised at how often people tend to forget this fact. Without trying to discredit any currency analysts (I still love them!), you'll do well to remember that at the end of the day, currency traders are the ones that put their money where their mouth is; not the analysts.
Analysts WRITE about what they think is going to happen, but it is the traders that TRADE with their money on the line. If I had to take trading advice from someone, I'd rather take it from a profitable trader, not an analyst or news report.
Why Not Always Listen To Analysts?
Again, I want to stress that currency analysts do have their place in the Forex market... it's just that they're not good trading advisors.
You see, in the market there are typically 2 aspects of trading:
1. Economic News / General "Market Sentiment"
2. Actual Market Price Movements / Actual Reactions To Economic News
The first aspect is what the market analysts specialize in. They're good at discussing the theoretical side of currency movements. They talk about how currency prices SHOULD move in relation to recent news.
The part they don't cover too well however, is the second aspect. When it comes to the practical application of analyzing ACTUAL currency movements in response to news, they tend to fall short.
วันอาทิตย์ที่ 20 มกราคม พ.ศ. 2551
Can You Really Make Money With Forex Trading?
Can You Really Make Money With Forex Trading?
by Geoff White
Forex trading sounds attractive but does anyone make any money from trading foreign exchange?
At first sight, there ought to be a winner and a loser in each currency deal. But that's misleading - if I was selling you dollars and you were buying dollars from me, then there would be a clear winner and loser. If I chose to sell you $100 for the "bargain" price of $110 and you were to take me up on the deal, I'd gain $10 from the exchange.
But Forex trading isn't that straightforward.
The quick answer is that, yes, it is possible to make money from trading currencies. You simply have to buy at a better rate than you are selling at. Currencies move all over the place, 24 hours a day. Look at any chart and you will see this in action.
All you need to do is "catch the waves" correctly!
Hmm. Don't these articles always make it out to be easy when it's nothing of the sort - the same as television chefs always cook perfect meals yet when you follow their exact instructions, your food looks nothing like theirs.
Undoubtedly, some people make a lot of money trading currencies. Adding 50% to your "bank" each month is by no means unheard of.
You need a system to follow. And an account that will prevent you from making enormous losses if there's an unexpected movement in the wrong direction.
Read a good book or two. Maybe get hold of a course - there are plenty to choose from online. Some brokers will even give you a free Forex tutorial when you open an account. After all, it's in their interest that you use their services and you won't continue to do that if you lose money every time you make a trade.
Then start small.
It's no good using the demo accounts that are available. Don't fool yourself, you won't make the same decisions when there's no money at stake. Watch any quiz show and see how many gambles you take at home that you wouldn't take if you were sitting in the hotseat.
So put aside some money you can afford to lose. If you're thinking about putting in next month's mortgage payment, stop right now.
Become unattached to the cash. It is now your trading account, not those dollars that were in your wallet or bank account.
Then take calm, collected decisions.
Set software up so that if a trade goes the "wrong" way, the software coolly and calmly ends the trade.
Set the software up so that if a trade goes the "right" way, it also ends the trade when you've reached a profit target.
Not getting greedy is probably one of the key secrets to making money with Forex trading. It's far better to get out while the going is good than to hold on, only to see the profit you would have made disappear into thin air.
Good luck with your Forex currency trading and remember to stay within your comfort zone when you are playing the foreign exchange markets.
by Geoff White
Forex trading sounds attractive but does anyone make any money from trading foreign exchange?
At first sight, there ought to be a winner and a loser in each currency deal. But that's misleading - if I was selling you dollars and you were buying dollars from me, then there would be a clear winner and loser. If I chose to sell you $100 for the "bargain" price of $110 and you were to take me up on the deal, I'd gain $10 from the exchange.
But Forex trading isn't that straightforward.
The quick answer is that, yes, it is possible to make money from trading currencies. You simply have to buy at a better rate than you are selling at. Currencies move all over the place, 24 hours a day. Look at any chart and you will see this in action.
All you need to do is "catch the waves" correctly!
Hmm. Don't these articles always make it out to be easy when it's nothing of the sort - the same as television chefs always cook perfect meals yet when you follow their exact instructions, your food looks nothing like theirs.
Undoubtedly, some people make a lot of money trading currencies. Adding 50% to your "bank" each month is by no means unheard of.
You need a system to follow. And an account that will prevent you from making enormous losses if there's an unexpected movement in the wrong direction.
Read a good book or two. Maybe get hold of a course - there are plenty to choose from online. Some brokers will even give you a free Forex tutorial when you open an account. After all, it's in their interest that you use their services and you won't continue to do that if you lose money every time you make a trade.
Then start small.
It's no good using the demo accounts that are available. Don't fool yourself, you won't make the same decisions when there's no money at stake. Watch any quiz show and see how many gambles you take at home that you wouldn't take if you were sitting in the hotseat.
So put aside some money you can afford to lose. If you're thinking about putting in next month's mortgage payment, stop right now.
Become unattached to the cash. It is now your trading account, not those dollars that were in your wallet or bank account.
Then take calm, collected decisions.
Set software up so that if a trade goes the "wrong" way, the software coolly and calmly ends the trade.
Set the software up so that if a trade goes the "right" way, it also ends the trade when you've reached a profit target.
Not getting greedy is probably one of the key secrets to making money with Forex trading. It's far better to get out while the going is good than to hold on, only to see the profit you would have made disappear into thin air.
Good luck with your Forex currency trading and remember to stay within your comfort zone when you are playing the foreign exchange markets.
Forex for Newbies: A Quick Currency Trading Tutorial
Forex for Newbies: A Quick Currency Trading Tutorial
So, you want to learn how to trade currency on the foreign exchange market? The process of trading currencies appears very straight-forward on the surface; but, there is more to it than meets the eye.
The currency trading tutorial you're about to receive here will give you a basic idea of how things works. However, you must keep in mind that this tutorial is only scratching the surface. The Forex market is complex, fast-paced and requires serious further study if you wish to trade successfully.
Now that we have that disclaimer out of the way, let's begin by looking at the fundamental unit involved in every trade: the 'currency pair'.
What are currency pairs?
Currency pairs are units of 2 currencies involved in a foreign exchange trade. For example, if you want to sell U.S. dollars to buy Euros, you would look at the exchange rate quoted for the EUR/USD currency pair. Or, if you wanted to sell Euros to buy U.S. dollars, you would look at the exchange rate quoted for the USD/EUR currency pair.
You might thinking: “Aren't they the same thing?†Well, they almost are, but you must look at the correct pair, in the correct order, based on the currency being purchased.
There are two reasons for doing this:
First, it is easier to calculate the results of your exchange in terms of how much of the base currency you can purchase with your 'quote' currency. Your base currency is the currency you intend to buy, and the quote currency is the currency you intend to sell in exchange for the base.
When quoting an exchange rate, your broker will list the base currency first in the pair, and the quote currency second.
This means that when you see a pair like EUR/USD, you are seeing the cost of 1 Euro in U.S. Dollars. An exchange rate quote of EUR/USD = 1.4436 means that 1 Euro costs $1.4436 in U.S. Dollars.
Likewise, the USD/EUR pair indicates the cost of 1 U.S. Dollar in terms of Euros. An exchange rate of USD/EUR = 0.6834 would mean that 1 U.S Dollar costs 0.6834 Euro.
The second reason for looking at the correct buy/sell ordered pair is that you'll want to know the difference between the 'bid price' (exchange rate) and the 'ask price' (what the market makers want for the currency).
The difference between bid price and ask price make up what is known as 'the spread'. Forex traders are subject to spreads when opening or closing trades in the buying position. In other words, you are always subject to a spread when you buy, regardless of whether you are opening or closing the trade.
Open buy -> spread Close sell -> no spread
Open sell -> no spread Close buy -> spread
Let's say that you want to buy the EUR/USD pair. The bid price is 1.4436. The ask price may be something like 1.4440. You must pay the spread of 0.0004 in order to do the trade.
Those are the basics of a currency trade, but there are other factors to take into consideration. In order to make a profit on currency exchanges, you must also know how to calculate the cash value of exchange rate fluctuations in terms of 'basis points' - or, in Forex jargon - 'pips value'.
This currency trading tutorial will not cover pips values, but it is a concept you should investigate further if you want to master the basics of trade on the foreign exchange
So, you want to learn how to trade currency on the foreign exchange market? The process of trading currencies appears very straight-forward on the surface; but, there is more to it than meets the eye.
The currency trading tutorial you're about to receive here will give you a basic idea of how things works. However, you must keep in mind that this tutorial is only scratching the surface. The Forex market is complex, fast-paced and requires serious further study if you wish to trade successfully.
Now that we have that disclaimer out of the way, let's begin by looking at the fundamental unit involved in every trade: the 'currency pair'.
What are currency pairs?
Currency pairs are units of 2 currencies involved in a foreign exchange trade. For example, if you want to sell U.S. dollars to buy Euros, you would look at the exchange rate quoted for the EUR/USD currency pair. Or, if you wanted to sell Euros to buy U.S. dollars, you would look at the exchange rate quoted for the USD/EUR currency pair.
You might thinking: “Aren't they the same thing?†Well, they almost are, but you must look at the correct pair, in the correct order, based on the currency being purchased.
There are two reasons for doing this:
First, it is easier to calculate the results of your exchange in terms of how much of the base currency you can purchase with your 'quote' currency. Your base currency is the currency you intend to buy, and the quote currency is the currency you intend to sell in exchange for the base.
When quoting an exchange rate, your broker will list the base currency first in the pair, and the quote currency second.
This means that when you see a pair like EUR/USD, you are seeing the cost of 1 Euro in U.S. Dollars. An exchange rate quote of EUR/USD = 1.4436 means that 1 Euro costs $1.4436 in U.S. Dollars.
Likewise, the USD/EUR pair indicates the cost of 1 U.S. Dollar in terms of Euros. An exchange rate of USD/EUR = 0.6834 would mean that 1 U.S Dollar costs 0.6834 Euro.
The second reason for looking at the correct buy/sell ordered pair is that you'll want to know the difference between the 'bid price' (exchange rate) and the 'ask price' (what the market makers want for the currency).
The difference between bid price and ask price make up what is known as 'the spread'. Forex traders are subject to spreads when opening or closing trades in the buying position. In other words, you are always subject to a spread when you buy, regardless of whether you are opening or closing the trade.
Open buy -> spread Close sell -> no spread
Open sell -> no spread Close buy -> spread
Let's say that you want to buy the EUR/USD pair. The bid price is 1.4436. The ask price may be something like 1.4440. You must pay the spread of 0.0004 in order to do the trade.
Those are the basics of a currency trade, but there are other factors to take into consideration. In order to make a profit on currency exchanges, you must also know how to calculate the cash value of exchange rate fluctuations in terms of 'basis points' - or, in Forex jargon - 'pips value'.
This currency trading tutorial will not cover pips values, but it is a concept you should investigate further if you want to master the basics of trade on the foreign exchange
Forex Hedging Tutorial: Why Forex Hedging Is a Bad 'Bet' For Most
Forex Hedging Tutorial: Why Forex Hedging Is a Bad 'Bet' For Most
by Michael Saunders - Bruised Onion Guide
Forex hedging is not for beginners, nor for those without a significant pool of risk capital to invest. In fact, hedge funds - generally speaking - are not wise investments for the average person.
If you are just getting your feet wet in the investment game, you might be tempted towards Forex hedge funds. After all, a properly managed fund can yield returns higher than 500 percent - and even higher if you're the fund manager. It is easy to see why a beginner could get sucked into this fairy-tale scenario.
My recommendation, however, is that you steer clear of hedging until you have several years of successful trading experience under your belt - not to mention disposable income - and I'm going to explain why right here and now.
First, let's discuss hedge funds. What are they, exactly?
Hedge funds are private investment partnerships, usually managed by wealthy individuals - e.g. - other investors, business people, commodity pool operators and all-around financial tycoons.
However, the Securities and Exchange Commission does not impose any strict rules on who may start a hedge fund. In fact, if you won the lottery tomorrow, you could start your own hedge fund. This free-market, 'anyone can play' philosophy is the first high risk factor that should steer you clear of Forex hedging.
The second factor is the high risk associated with the strategies involved in hedge fund trading. You've probably heard about futures contracts, derivatives, 'put' options and the like, yes?
If you've been doing your homework, then you already know that these 'investments' revolve around the highly speculative trading strategy of 'selling short'. Really, this is why we call it 'hedging': you're hedging your bets either for or against the given financial instrument based on short-term market fluctuations.
It is difficult enough for the average investor to predict short-term movements on every day stocks; but, try doing so on the even more volatile foreign exchange market and you'll understand why Forex hedging is so risky.
It takes years of experience, coupled with a very sophisticated understanding of the world economy, to profit from a Forex-based hedge account, and even more to manage one.
So, if you are investing for your future, your family's future, your children's education or any other closely held dream, then I suggest you stick to the time-honored mid and long-range investment strategies like stocks, bonds and IRAs. There are plenty of high-yield options in the latter category, especially.
And if it is wealth you're looking for, then consider starting your own business. A second income can help you get out of debt, and sock even more money into savings and investments.
Remember: real wealth is built on a foundation of security..and that's the smartest 'hedge' you can make for your financial future!
by Michael Saunders - Bruised Onion Guide
Forex hedging is not for beginners, nor for those without a significant pool of risk capital to invest. In fact, hedge funds - generally speaking - are not wise investments for the average person.
If you are just getting your feet wet in the investment game, you might be tempted towards Forex hedge funds. After all, a properly managed fund can yield returns higher than 500 percent - and even higher if you're the fund manager. It is easy to see why a beginner could get sucked into this fairy-tale scenario.
My recommendation, however, is that you steer clear of hedging until you have several years of successful trading experience under your belt - not to mention disposable income - and I'm going to explain why right here and now.
First, let's discuss hedge funds. What are they, exactly?
Hedge funds are private investment partnerships, usually managed by wealthy individuals - e.g. - other investors, business people, commodity pool operators and all-around financial tycoons.
However, the Securities and Exchange Commission does not impose any strict rules on who may start a hedge fund. In fact, if you won the lottery tomorrow, you could start your own hedge fund. This free-market, 'anyone can play' philosophy is the first high risk factor that should steer you clear of Forex hedging.
The second factor is the high risk associated with the strategies involved in hedge fund trading. You've probably heard about futures contracts, derivatives, 'put' options and the like, yes?
If you've been doing your homework, then you already know that these 'investments' revolve around the highly speculative trading strategy of 'selling short'. Really, this is why we call it 'hedging': you're hedging your bets either for or against the given financial instrument based on short-term market fluctuations.
It is difficult enough for the average investor to predict short-term movements on every day stocks; but, try doing so on the even more volatile foreign exchange market and you'll understand why Forex hedging is so risky.
It takes years of experience, coupled with a very sophisticated understanding of the world economy, to profit from a Forex-based hedge account, and even more to manage one.
So, if you are investing for your future, your family's future, your children's education or any other closely held dream, then I suggest you stick to the time-honored mid and long-range investment strategies like stocks, bonds and IRAs. There are plenty of high-yield options in the latter category, especially.
And if it is wealth you're looking for, then consider starting your own business. A second income can help you get out of debt, and sock even more money into savings and investments.
Remember: real wealth is built on a foundation of security..and that's the smartest 'hedge' you can make for your financial future!
A Introduction to Forex Signals
A Introduction to Forex Signals
by Michael Saunders - Bruised Onion Guide
Forex Signals, also known as 'technical indicators', are data points used in the prediction of currency movements. This article will examine three of the most popular forex signals in use today.
Signal #1: Relative Strength Index (RSI)
The RSI indicator measures the ratio of upwards to downwards movements on the market, and the result is normalized to a range between 0-100.
.When an instrument, such as a currency pair, moves to 70 or greater on the RSI, the instrument is said to be 'over bought'. Likewise, when a currency pair moves to 30 or below on the RSI, it is said to be 'over sold'.
So, the Relative Strength Index is essentially a broad measurement of market demand for a given currency. Keep in mind, however, that spikes and drops may occur for any number of reasons, and do not necessarily indicate the development of a trend.
Relative Strength is useful in spot trading and some mid-range strategies, but it is not the only indicator to watch, particularly if you intend to employ long-range holding strategies.
Signal #2: Stochastic Oscillators (SO)
Charts derived from Stochastic oscillations are also used to indicate 'over bought' and 'over sold' conditions for currencies on the exchange market. These conditions are typically expressed on a percentage scale from 0-100%.
The S.O. scale method was derived from historical observation of market phenomena centered around closing trades. It was observed that - during the period towards closing - both the upwards and downwards trends in conditions tend to congregate towards the extreme ends of the scale.
These Buying and Selling conditions are charted using two lines: %K and %D. A divergence between these lines against the price action of a currency is a strong trading signal.
Signal #3: Moving Average Convergence Divergence (MACD)
This signal plots two lines of movement: the MACD line, and the signal/trigger line.
The MACD line represents the difference between two, exponential moving averages and the signal line -- which is the exponential moving average of that difference. This is a tricky concept to grasp, so let's look at MACD as an equation.
We'll let each exponential moving average be represented by EMA-0, EMA-1, EMA-2, etc..
The Signal Line, then, is equal to: EMA (EMA0 - EMA-1... + ...EMA-2 - EMA-3...+..) and so on.
Basically, the signal line is reflecting the exponential moving average of moving averages over time, such that:
Signal Line = EMA (EMA-0 minus EMA-1), and..
The MACD line = (EMA0-EMA1) - signal line.
The MACD and Signal Lines are charted around a 'Zero' line, the extreme limits of which represent 'slow MACD movement' and 'fast MACD movement', respectively. Whenever the MACD and Signal Lines cross, it is an indicator that a change in trend is likely.
This wraps up our look at three of the most popular Forex signals. They are by no means the only ones. Some of the other, more technically complex signals includes indicators derived from Gann numbers and Elliot Wave theory.
The good news is that you don't have to be a math whiz to make use of these indicators, as there are plenty of commercial software solutions on the market.
by Michael Saunders - Bruised Onion Guide
Forex Signals, also known as 'technical indicators', are data points used in the prediction of currency movements. This article will examine three of the most popular forex signals in use today.
Signal #1: Relative Strength Index (RSI)
The RSI indicator measures the ratio of upwards to downwards movements on the market, and the result is normalized to a range between 0-100.
.When an instrument, such as a currency pair, moves to 70 or greater on the RSI, the instrument is said to be 'over bought'. Likewise, when a currency pair moves to 30 or below on the RSI, it is said to be 'over sold'.
So, the Relative Strength Index is essentially a broad measurement of market demand for a given currency. Keep in mind, however, that spikes and drops may occur for any number of reasons, and do not necessarily indicate the development of a trend.
Relative Strength is useful in spot trading and some mid-range strategies, but it is not the only indicator to watch, particularly if you intend to employ long-range holding strategies.
Signal #2: Stochastic Oscillators (SO)
Charts derived from Stochastic oscillations are also used to indicate 'over bought' and 'over sold' conditions for currencies on the exchange market. These conditions are typically expressed on a percentage scale from 0-100%.
The S.O. scale method was derived from historical observation of market phenomena centered around closing trades. It was observed that - during the period towards closing - both the upwards and downwards trends in conditions tend to congregate towards the extreme ends of the scale.
These Buying and Selling conditions are charted using two lines: %K and %D. A divergence between these lines against the price action of a currency is a strong trading signal.
Signal #3: Moving Average Convergence Divergence (MACD)
This signal plots two lines of movement: the MACD line, and the signal/trigger line.
The MACD line represents the difference between two, exponential moving averages and the signal line -- which is the exponential moving average of that difference. This is a tricky concept to grasp, so let's look at MACD as an equation.
We'll let each exponential moving average be represented by EMA-0, EMA-1, EMA-2, etc..
The Signal Line, then, is equal to: EMA (EMA0 - EMA-1... + ...EMA-2 - EMA-3...+..) and so on.
Basically, the signal line is reflecting the exponential moving average of moving averages over time, such that:
Signal Line = EMA (EMA-0 minus EMA-1), and..
The MACD line = (EMA0-EMA1) - signal line.
The MACD and Signal Lines are charted around a 'Zero' line, the extreme limits of which represent 'slow MACD movement' and 'fast MACD movement', respectively. Whenever the MACD and Signal Lines cross, it is an indicator that a change in trend is likely.
This wraps up our look at three of the most popular Forex signals. They are by no means the only ones. Some of the other, more technically complex signals includes indicators derived from Gann numbers and Elliot Wave theory.
The good news is that you don't have to be a math whiz to make use of these indicators, as there are plenty of commercial software solutions on the market.
วันศุกร์ที่ 18 มกราคม พ.ศ. 2551
Forex Trading Systems
Forex Trading Systems - Before You Buy One...
by Harold Hsu
Although there is a plethora of scam trading systems circulating the internet, there are indeed a few good systems based on sound fundamentals that perform consistently well. However, even when people purchase such good trading systems, they sometimes still fail to produce consistent profits. Why?
One problem is because the buyers don't understand the operating logic behind these trading systems. They just don't know why they are buying or selling! They just want to know when to buy or sell, and don't care about the reasoning behind each buy or sell setup signal.
You see, when a trader doesn't understand the trading system he follows, he'll easily lose confidence in it the moment he starts suffering a few loses. That's when he'll begin to change the rules of the system, and so his trading discipline basically goes flying out the window. And I think I don't have to elaborate on what happens to traders with no trading discipline - Simply put: they lose money. They lose a lot of it.
Ideally, Forex traders should all develop their own trading systems. But I'm sure that not everyone will have the luxury of the time or effort required to develop a reliable trading system.
That's why when you choose to purchase a trading system, please make sure you understand every single aspect of it. Understand why the system tells you to buy (or sell), and why the system tells you to hold a position (or to exit).
Another important thing to understand, is the reasoning behind the largest position size you're allowed to hold per trade. In Forex trading, the size of your trade positions ties in very closely to your entire trading system.
Every good trading system considers the maximum allowable position size in relation to the overall trading strategy. Don't consider purchasing trading systems that don't include a relevant money management system... chances are that those are scams!
by Harold Hsu
Although there is a plethora of scam trading systems circulating the internet, there are indeed a few good systems based on sound fundamentals that perform consistently well. However, even when people purchase such good trading systems, they sometimes still fail to produce consistent profits. Why?
One problem is because the buyers don't understand the operating logic behind these trading systems. They just don't know why they are buying or selling! They just want to know when to buy or sell, and don't care about the reasoning behind each buy or sell setup signal.
You see, when a trader doesn't understand the trading system he follows, he'll easily lose confidence in it the moment he starts suffering a few loses. That's when he'll begin to change the rules of the system, and so his trading discipline basically goes flying out the window. And I think I don't have to elaborate on what happens to traders with no trading discipline - Simply put: they lose money. They lose a lot of it.
Ideally, Forex traders should all develop their own trading systems. But I'm sure that not everyone will have the luxury of the time or effort required to develop a reliable trading system.
That's why when you choose to purchase a trading system, please make sure you understand every single aspect of it. Understand why the system tells you to buy (or sell), and why the system tells you to hold a position (or to exit).
Another important thing to understand, is the reasoning behind the largest position size you're allowed to hold per trade. In Forex trading, the size of your trade positions ties in very closely to your entire trading system.
Every good trading system considers the maximum allowable position size in relation to the overall trading strategy. Don't consider purchasing trading systems that don't include a relevant money management system... chances are that those are scams!
Forex Trading: Breakout Systems
Forex Trading: Breakout Systems
by Harold Hsu
While there are many different varieties of Forex trading systems, one of the most reliable types are those that involve breakouts.
What is a breakout?
Breakouts are basically price movements that shoot out of a price consolidation range. Breakouts can occur either above resistance or below support levels.
What is the significance of a range breakout?
A breakout from a recent price consolidation typically indicates that prices are likely to keep moving in the direction of the breakout. If the breakout occurs above resistance levels, prices are likely to keep going up. If the breakout occurs below support levels, prices are likely to keep going down.
Why are breakouts good predictors of future price movement?
When the market price moves below support levels for example, it means that the buyers that were supporting the price have “run out of steamâ€, resulting in the sellers pushing price down. And because the buyers have no more “strengthâ€, the remaining sellers are expected to further push the market price even lower.
The opposite is true for prices that breakout above resistance levels.
Are breakouts 100% accurate in predicting future price movements?
Unfortunately, the answer is no. There is actually no single method that can predict future price movements with a 100% certainty. Price breakouts are only one of the many indicators you should include in your trading system and strategies.
I have entered into many trades where price breakouts reversed almost immediately after I placed my trade, so please be aware that prices may not always keep moving in the direction of the breakout.
Breakouts only increase the probability that the market price will move in the expected direction; it does not guarantee it.
by Harold Hsu
While there are many different varieties of Forex trading systems, one of the most reliable types are those that involve breakouts.
What is a breakout?
Breakouts are basically price movements that shoot out of a price consolidation range. Breakouts can occur either above resistance or below support levels.
What is the significance of a range breakout?
A breakout from a recent price consolidation typically indicates that prices are likely to keep moving in the direction of the breakout. If the breakout occurs above resistance levels, prices are likely to keep going up. If the breakout occurs below support levels, prices are likely to keep going down.
Why are breakouts good predictors of future price movement?
When the market price moves below support levels for example, it means that the buyers that were supporting the price have “run out of steamâ€, resulting in the sellers pushing price down. And because the buyers have no more “strengthâ€, the remaining sellers are expected to further push the market price even lower.
The opposite is true for prices that breakout above resistance levels.
Are breakouts 100% accurate in predicting future price movements?
Unfortunately, the answer is no. There is actually no single method that can predict future price movements with a 100% certainty. Price breakouts are only one of the many indicators you should include in your trading system and strategies.
I have entered into many trades where price breakouts reversed almost immediately after I placed my trade, so please be aware that prices may not always keep moving in the direction of the breakout.
Breakouts only increase the probability that the market price will move in the expected direction; it does not guarantee it.
Beginners Guide to Forex Funds
Beginners Guide to Forex Funds
by Jon Provencher
A commonly asked question from investors is What is a Forex Fund?
A Forex Fund works exactly the same way as a mutual (managed) fund. Mutual Funds started up after the crash of 1929. The rationale behind a mutual fund is if people combine their money, they can buy more shares to obtain greater diversification, thereby reducing their risk and exposure to another crash. Forex Funds are newer appearing after the crash of 2000.
When you invest in a Fund you receive shares or units. As the fund earns profits the value of the fund goes up, increasing the value per unit. The Forex Fund manager takes the combined funds and decides when to make trades on the forex market on behalf of their individual investors.
Forex Fund's allow investors with limited knowledge of trading forex or limited time to take advantage of trading the worlds largest market. Investors should choose an appropriate Forex Fund by thinking about their risk tolerance and investment objectives. They should also consider the historical performance of the Forex Fund and the qualifications of the funds manager.
A benefit of investing in a Forex Fund is that the Fund will be managed by a professional, who has access to detailed economic data, knowledge of how world events will impact forex trades and experience trading the forex market. Another advantage is the money management of the fund will be handled by a professional. The money manager will decide what size trades to make to achieve maximum returns for the fund while limiting risk and will also decide a sensible system for compounding.
A Forex Fund has the advantage of enabling investors with limited funds to get started in the forex market. A lot of new traders money get wiped out due to taking risks that are not appropriate for their account balance.
The biggest advantage of investing in a Forex Fund is the time you will save. Obtaining enough knowledge of the forex market to be comfortable trading it with real money often takes years. A Forex Fund enables you to benefit from the time already spent by other professionals studying, while your time can be better used elsewhere.
As the forex market is a 24 hour market, often the trading hours will not be convenient and you could be stuck at your computer in the middle of the night. When your money is invested in a Forex Fund you can check how your investment is performing at a time convenient to you.
Trading forex can also be an emotional rollercoaster, enormous highs when things are going well and enormous lows when it isn't going well, this can have a enormous effect on you and your family. Investing in a Forex Fund can remove a large part of the emotion involved in forex trading.
I hope this article has helped answer your question: What is a Forex Fund? IBlogForex.com contains many other articles on trading forex you may find useful.
by Jon Provencher
A commonly asked question from investors is What is a Forex Fund?
A Forex Fund works exactly the same way as a mutual (managed) fund. Mutual Funds started up after the crash of 1929. The rationale behind a mutual fund is if people combine their money, they can buy more shares to obtain greater diversification, thereby reducing their risk and exposure to another crash. Forex Funds are newer appearing after the crash of 2000.
When you invest in a Fund you receive shares or units. As the fund earns profits the value of the fund goes up, increasing the value per unit. The Forex Fund manager takes the combined funds and decides when to make trades on the forex market on behalf of their individual investors.
Forex Fund's allow investors with limited knowledge of trading forex or limited time to take advantage of trading the worlds largest market. Investors should choose an appropriate Forex Fund by thinking about their risk tolerance and investment objectives. They should also consider the historical performance of the Forex Fund and the qualifications of the funds manager.
A benefit of investing in a Forex Fund is that the Fund will be managed by a professional, who has access to detailed economic data, knowledge of how world events will impact forex trades and experience trading the forex market. Another advantage is the money management of the fund will be handled by a professional. The money manager will decide what size trades to make to achieve maximum returns for the fund while limiting risk and will also decide a sensible system for compounding.
A Forex Fund has the advantage of enabling investors with limited funds to get started in the forex market. A lot of new traders money get wiped out due to taking risks that are not appropriate for their account balance.
The biggest advantage of investing in a Forex Fund is the time you will save. Obtaining enough knowledge of the forex market to be comfortable trading it with real money often takes years. A Forex Fund enables you to benefit from the time already spent by other professionals studying, while your time can be better used elsewhere.
As the forex market is a 24 hour market, often the trading hours will not be convenient and you could be stuck at your computer in the middle of the night. When your money is invested in a Forex Fund you can check how your investment is performing at a time convenient to you.
Trading forex can also be an emotional rollercoaster, enormous highs when things are going well and enormous lows when it isn't going well, this can have a enormous effect on you and your family. Investing in a Forex Fund can remove a large part of the emotion involved in forex trading.
I hope this article has helped answer your question: What is a Forex Fund? IBlogForex.com contains many other articles on trading forex you may find useful.
วันพฤหัสบดีที่ 17 มกราคม พ.ศ. 2551
Forex trading can be like day-trading
Forex trading can be like day-trading
by Jay Monclif
Forex trading, or foreign currency trading, has become a bit of a craze of late, especially since it is something available to anyone who owns a computer. And anyone who is willing to put in some training time can profit from forex trading.
The forex market finds traders from all around the globe monitoring currency fluctuations, not unlike the way a day trader may monitor a stock's fluctuation on the Dow Jones.
In forex trading, a trader will pair two types of currency, for example the U.S. dollar and the British pound. As it requires more of one currency to purchase another, that currency loses value. Not unlike, stock trading, forex traders try to accumulate currency when it weakens in hopes of selling it when it goes up in value. Forex trading is not unlike the buy low, sell high approach found in stock trading.
The way a trader on the forex market exchange goes about acquiring currency is by giving a bid/ask quote, saying he is willing to buy, for example 1.6 marks per dollar and sell them at 1.625 per dollar. One must be a market trader to have access to this process. So most people who are forex trading on line buy the currency through a bank, where they'll pay a commission, then have to figure the commission paid to the bank into the calculation of their spread, or profit margin, when they sell it.
Forex trading is not an easy path to riches. And some people have lost considerable money in miscalculating the market. With its increased popularity, on some days the forex market exchange can see more than one trillion dollars exchanged. Packages for teaching a new forex trader how to invest in the market can range in price.
by Jay Monclif
Forex trading, or foreign currency trading, has become a bit of a craze of late, especially since it is something available to anyone who owns a computer. And anyone who is willing to put in some training time can profit from forex trading.
The forex market finds traders from all around the globe monitoring currency fluctuations, not unlike the way a day trader may monitor a stock's fluctuation on the Dow Jones.
In forex trading, a trader will pair two types of currency, for example the U.S. dollar and the British pound. As it requires more of one currency to purchase another, that currency loses value. Not unlike, stock trading, forex traders try to accumulate currency when it weakens in hopes of selling it when it goes up in value. Forex trading is not unlike the buy low, sell high approach found in stock trading.
The way a trader on the forex market exchange goes about acquiring currency is by giving a bid/ask quote, saying he is willing to buy, for example 1.6 marks per dollar and sell them at 1.625 per dollar. One must be a market trader to have access to this process. So most people who are forex trading on line buy the currency through a bank, where they'll pay a commission, then have to figure the commission paid to the bank into the calculation of their spread, or profit margin, when they sell it.
Forex trading is not an easy path to riches. And some people have lost considerable money in miscalculating the market. With its increased popularity, on some days the forex market exchange can see more than one trillion dollars exchanged. Packages for teaching a new forex trader how to invest in the market can range in price.
How to choose wisely a FOREX broker
How to choose wisely a FOREX broker
by Stefan Everaet
Most traders use a FOREX broker to handle their transactions. What exactly are brokers? Strictly speaking, brokers are individuals or companies that buy and sell orders according the investor's decisions. Brokers earn money by charging a commission or a fee for their services.
FOREX brokers need to be associated with a large financial institution such as a bank in order to provide the funds necessary for margin trading. In the United States a broker should be registered as a Futures Commission Merchant (FCM) with the Commodity Futures Trading Commission (CFTC) as protection against fraud and abusive trade practices.
Before trading FOREX you need to set up an account with a FOREX broker. You may feel overwhelmed by the number of brokers who offer their services online. Deciding on a broker requires a little bit of research on your part, but the time spent will give you insight into the services that are available and fees charged by various brokers.
The best advertising is word-of-mouth advertising, and this is just as valid in FOREX trading as it is for any other type of business. Talk to friends and associates to see who they are dealing with and find if they have any complaints or difficulties in dealing with a particular broker.
You could try selecting a few online brokers and contact their Internet help desks to see how quickly they respond to enquiries and whether or not they answer questions to your satisfaction. Keep in mind, however, that pre-sales service may be better than after sales service. This can be true for any online business, not just FOREX brokers.
Customer satisfaction and safety are just part of the story. You want to find a broker who executes orders quickly and with minimum slippage. All online brokers should offer automatic execution and have clear policies regarding slippage. They should be able to tell you how much slippage can be expected in both normal and fast-moving markets. Next you want to know the fees involved. What is the spread? Is spread fixed or variable according to the type of account? Are mini accounts subject to wider spreads? Are there any other charges? Smaller spreads mean more profit for the trader, but there may be a trade-off between spread and service. Look at the overall picture before deciding to go with a particular broker. Margin accounts are the lifeblood of FOREX trading, so be sure you understand the broker's margin terms before setting up an account. You need to know the margin requirements and how margin is calculated. Does margin change according to the currency traded? Is it the same every day of the week? Some brokers may offer different margins for mini and standard accounts.
Trading software is very important for the online FOREX trader. Get a feel for the options that are available by trying out a demo account at a few online brokers. Above all, you are looking for reliability and the ability to perform well in fast-moving markets. The software should offer automatic trading and may have special features such as trailing stops and trading from the chart. Some features may only be available at an extra cost, so be sure you understand what your trading needs are and how much the broker charges to provide them.
Other information to find out about includes the broker's policy regarding minimum account balances, interest payments on account balances, which currencies can be traded and whether or not non-standard sized lots can be traded. You should also find out whether clients' funds are insured and the extent of that insurance.
by Stefan Everaet
Most traders use a FOREX broker to handle their transactions. What exactly are brokers? Strictly speaking, brokers are individuals or companies that buy and sell orders according the investor's decisions. Brokers earn money by charging a commission or a fee for their services.
FOREX brokers need to be associated with a large financial institution such as a bank in order to provide the funds necessary for margin trading. In the United States a broker should be registered as a Futures Commission Merchant (FCM) with the Commodity Futures Trading Commission (CFTC) as protection against fraud and abusive trade practices.
Before trading FOREX you need to set up an account with a FOREX broker. You may feel overwhelmed by the number of brokers who offer their services online. Deciding on a broker requires a little bit of research on your part, but the time spent will give you insight into the services that are available and fees charged by various brokers.
The best advertising is word-of-mouth advertising, and this is just as valid in FOREX trading as it is for any other type of business. Talk to friends and associates to see who they are dealing with and find if they have any complaints or difficulties in dealing with a particular broker.
You could try selecting a few online brokers and contact their Internet help desks to see how quickly they respond to enquiries and whether or not they answer questions to your satisfaction. Keep in mind, however, that pre-sales service may be better than after sales service. This can be true for any online business, not just FOREX brokers.
Customer satisfaction and safety are just part of the story. You want to find a broker who executes orders quickly and with minimum slippage. All online brokers should offer automatic execution and have clear policies regarding slippage. They should be able to tell you how much slippage can be expected in both normal and fast-moving markets. Next you want to know the fees involved. What is the spread? Is spread fixed or variable according to the type of account? Are mini accounts subject to wider spreads? Are there any other charges? Smaller spreads mean more profit for the trader, but there may be a trade-off between spread and service. Look at the overall picture before deciding to go with a particular broker. Margin accounts are the lifeblood of FOREX trading, so be sure you understand the broker's margin terms before setting up an account. You need to know the margin requirements and how margin is calculated. Does margin change according to the currency traded? Is it the same every day of the week? Some brokers may offer different margins for mini and standard accounts.
Trading software is very important for the online FOREX trader. Get a feel for the options that are available by trying out a demo account at a few online brokers. Above all, you are looking for reliability and the ability to perform well in fast-moving markets. The software should offer automatic trading and may have special features such as trailing stops and trading from the chart. Some features may only be available at an extra cost, so be sure you understand what your trading needs are and how much the broker charges to provide them.
Other information to find out about includes the broker's policy regarding minimum account balances, interest payments on account balances, which currencies can be traded and whether or not non-standard sized lots can be traded. You should also find out whether clients' funds are insured and the extent of that insurance.
The meaning of FOREX Price Charts and How to Use Them
The meaning of FOREX Price Charts and How to Use Them
by Adrian Pablo
There is one very important factor that you should consider with great care if you are willing to become a successful, profitable Forex trader. This ever important factor that must be always present in the trader's portfolio, is the ability to read the charts. The beauty of FOREX charts, as opposed to charts used for, say, daytrading stocks, is that they are pretty easy to interpret and use. They're a reflection of a slower-moving, stable economy (the one of a country) compared to the future and daily drama of company reports, Wall street analysts and shareholder demands. And, unlike stocks, currency charts rarely spend much time in tight trading ranges and have the tendency to develop strong trends (even though the FX market may be volatile, it's more predictable). And, rather than tens of thousands of stocks to analyze, you only have a few mayor currencies to trade. The most common types of price bars, used in FOREX trading, are the Bar Chart and the Candlestick chart: Bars Charts - Price bars are a linear representation (a line)of a period of time. This enables the viewer to see a graphic representation summarizing the activity of a specific time frame. For example they can be one minute or five-minute time intervals depending on the system you are using. Each bar has similar characteristics and tells the viewer several important pieces of information. First, the highest point of the bar represents the highest price that was achieved during that time period. The lowest point of the bar represents the lowest price during the same period. Regular bars display a small dot on the left side of the bar which represents the opening price of the period and the small dot on the right side represents the closing price of the period. Candlesticks - Japanese Candlesticks, or simply Candlesticks as they are now known, are used to represent the same information as Price bars. The only difference is that the difference between the open and close form the body of a box which is displayed with a color inside. A red color means that the close was lower than the open, and the blue color represents that the close was higher than the open. If the box has a line going up from the box it represents the high and is called the wick. If the box has a line going down from the box, it represents the low and is called the tail. Many interpretations can be made from these "candlesticks" and many books have been written on the art of interpreting these bars ( Visit: http:www.1-forex.com). So, the main thing to keep in mind between the two types of price charts is this: Candlestick charts are similar to bar charts in that the top tip of a vertical line represents the high and bottom tip represents the low. However, market activity between the OPEN and the CLOSE is represented differently by the use of candlestick bodies. Because of their colored bodies, candles provide greater visual detail in their chart patterns than bar charts. Which is why many experts recommend you become intimately familiar with Candlestick charts.
by Adrian Pablo
There is one very important factor that you should consider with great care if you are willing to become a successful, profitable Forex trader. This ever important factor that must be always present in the trader's portfolio, is the ability to read the charts. The beauty of FOREX charts, as opposed to charts used for, say, daytrading stocks, is that they are pretty easy to interpret and use. They're a reflection of a slower-moving, stable economy (the one of a country) compared to the future and daily drama of company reports, Wall street analysts and shareholder demands. And, unlike stocks, currency charts rarely spend much time in tight trading ranges and have the tendency to develop strong trends (even though the FX market may be volatile, it's more predictable). And, rather than tens of thousands of stocks to analyze, you only have a few mayor currencies to trade. The most common types of price bars, used in FOREX trading, are the Bar Chart and the Candlestick chart: Bars Charts - Price bars are a linear representation (a line)of a period of time. This enables the viewer to see a graphic representation summarizing the activity of a specific time frame. For example they can be one minute or five-minute time intervals depending on the system you are using. Each bar has similar characteristics and tells the viewer several important pieces of information. First, the highest point of the bar represents the highest price that was achieved during that time period. The lowest point of the bar represents the lowest price during the same period. Regular bars display a small dot on the left side of the bar which represents the opening price of the period and the small dot on the right side represents the closing price of the period. Candlesticks - Japanese Candlesticks, or simply Candlesticks as they are now known, are used to represent the same information as Price bars. The only difference is that the difference between the open and close form the body of a box which is displayed with a color inside. A red color means that the close was lower than the open, and the blue color represents that the close was higher than the open. If the box has a line going up from the box it represents the high and is called the wick. If the box has a line going down from the box, it represents the low and is called the tail. Many interpretations can be made from these "candlesticks" and many books have been written on the art of interpreting these bars ( Visit: http:www.1-forex.com). So, the main thing to keep in mind between the two types of price charts is this: Candlestick charts are similar to bar charts in that the top tip of a vertical line represents the high and bottom tip represents the low. However, market activity between the OPEN and the CLOSE is represented differently by the use of candlestick bodies. Because of their colored bodies, candles provide greater visual detail in their chart patterns than bar charts. Which is why many experts recommend you become intimately familiar with Candlestick charts.
Forex broker involvement optional
Forex broker involvement optional
by Jay Moncliff
To trade on the forex market, the largest financial market on the planet, one must use a forex broker. Not unlike a stock broker, a forex broker can also makes suggestions about which moves to make when exchanging foreign currency. Some forex brokers even supply technical analysis to some of their clients and offer tips on research to improve their success as forex traders.
Typically in the forex market a forex broker is a banking institution who may buy up large amounts of a certain currency. For years, banks were the only ones who had access to the forex markets. But today with the Internet, any forex trader, who subscribes with a forex broker, can access the market 24 hours a day.
Today, as with stock brokers, the brick and mortar institutions, such as banks, are less of an option for the individual forex trader who works from home, monitoring the news and gaining insight into certain technical information to help with his or her trading decisions.
Choosing a forex broker may depend on your needs. If you are new to the field, there are houses, or online forex brokers who may cater to your needs, providing in-depth research, ample time to demo their product and so on. Other forex brokers are geared toward the experienced online forex trader. They too offer advice, but may be less likely to offer instructional help with the information, assuming that you may already know how it may or may not benefit you when you read it. It is advisable to read about and even run a demo on several different online forex brokers before going with one.
by Jay Moncliff
To trade on the forex market, the largest financial market on the planet, one must use a forex broker. Not unlike a stock broker, a forex broker can also makes suggestions about which moves to make when exchanging foreign currency. Some forex brokers even supply technical analysis to some of their clients and offer tips on research to improve their success as forex traders.
Typically in the forex market a forex broker is a banking institution who may buy up large amounts of a certain currency. For years, banks were the only ones who had access to the forex markets. But today with the Internet, any forex trader, who subscribes with a forex broker, can access the market 24 hours a day.
Today, as with stock brokers, the brick and mortar institutions, such as banks, are less of an option for the individual forex trader who works from home, monitoring the news and gaining insight into certain technical information to help with his or her trading decisions.
Choosing a forex broker may depend on your needs. If you are new to the field, there are houses, or online forex brokers who may cater to your needs, providing in-depth research, ample time to demo their product and so on. Other forex brokers are geared toward the experienced online forex trader. They too offer advice, but may be less likely to offer instructional help with the information, assuming that you may already know how it may or may not benefit you when you read it. It is advisable to read about and even run a demo on several different online forex brokers before going with one.
Forex Trading Best Practices
Forex Trading Best Practices
by Diane McDee
FOREX, the term for the FOReign EXchange market, is an international exchange market where currencies from many different countries are bought and sold. Both long-term hedge investors and short-term investors that seek quick profits use FOREX. Trade reaches between 1 and 1.5 trillion US dollars per day. Needless to say, FOREX is a very lucrative market. Many wonder how to gain the most profits by trading with FOREX. There are a few simple trade practices that can help any trader, either an amateur or a professional make significant profit from FOREX.
The best traders firstly understand the intricacies of FOREX trading. In order to be successful, one must understand how FOREX works. FOREX transactions are not centered in an exchange, unlike the stock market. Many transactions can take place at different times all over the world. This is important to note if one is going to invest in FOREX. In order to trade, one must simply find a trader (there are many around the world, some can even be found online), decide the currency to purchase, sell currency, and make profit. However, if FOREX was this simple, everyone would do it. In reality, most people have to gamble with FOREX because no currency is completely stable, and there is always the risk for losing money.
One of the best FOREX practices, but also the most potential hazardous is marginal trading. Marginal trading is when an investor speculates on currency prices by getting a credit line. This can lead to a vast gain, as well as a potential loss. Because FOREX can be traded without real money, trading with borrowed capital (marginal trading) can be very appealing. Using this techniques, an investor can invest more money without having to deal with as many money transfer costs. Marginal trading also allows bigger positions to be opened with a smaller amount of actual capital. This trading practice is certainly for the short-term investor.
The best long-term practices with FOREX are Technical Analysis and Fundamental Analysis. It is a good idea for small and medium sized investors to invest in technical analysis. Technical Analysis assumes that all information about the market and future fluctuations of a currency can be found in the price chain. In other words, technical analysis involves looking at the past events in the market and assuming that these trends will continue. This is a very good strategy because, quite simply, history has a habit of repeating itself. This is also safer because it entails less guesswork than marginal trading, since the investor assumes that history will continue and therefore makes a safe investment in a strong currency that seems likely to continue a positive trend.
Fundamental Analysis is the process of considering the current situation of the country of the currency. Elements such as a countries economy, political situation, and future must all be taken into account in Fundamental Analysis. Investors then make investments based upon this knowledge. The best investors not only analysis a countries current situation, but the rest of the world's interpretation of that country. Like any stock market, the value of the commodity is not merely based on exact numbers, but on perceptions of that commodity. If a country is believed to be on a positive path economically, than it's currency will do well in FOREX.
FOREX can be a potentially lucrative investment. However, the success of FOREX trading depends on the practices and knowledge of the investor. It is important for any investor to analyze the market and determine what exactly he or she wants to achieve in investing. Long-term gains and short-term gains require different strategies. The best investors are always well informed about the market, the world economy and have the best traders available. If one follows these practices, FOREX will certainly prove to be a very rewarding investment.
by Diane McDee
FOREX, the term for the FOReign EXchange market, is an international exchange market where currencies from many different countries are bought and sold. Both long-term hedge investors and short-term investors that seek quick profits use FOREX. Trade reaches between 1 and 1.5 trillion US dollars per day. Needless to say, FOREX is a very lucrative market. Many wonder how to gain the most profits by trading with FOREX. There are a few simple trade practices that can help any trader, either an amateur or a professional make significant profit from FOREX.
The best traders firstly understand the intricacies of FOREX trading. In order to be successful, one must understand how FOREX works. FOREX transactions are not centered in an exchange, unlike the stock market. Many transactions can take place at different times all over the world. This is important to note if one is going to invest in FOREX. In order to trade, one must simply find a trader (there are many around the world, some can even be found online), decide the currency to purchase, sell currency, and make profit. However, if FOREX was this simple, everyone would do it. In reality, most people have to gamble with FOREX because no currency is completely stable, and there is always the risk for losing money.
One of the best FOREX practices, but also the most potential hazardous is marginal trading. Marginal trading is when an investor speculates on currency prices by getting a credit line. This can lead to a vast gain, as well as a potential loss. Because FOREX can be traded without real money, trading with borrowed capital (marginal trading) can be very appealing. Using this techniques, an investor can invest more money without having to deal with as many money transfer costs. Marginal trading also allows bigger positions to be opened with a smaller amount of actual capital. This trading practice is certainly for the short-term investor.
The best long-term practices with FOREX are Technical Analysis and Fundamental Analysis. It is a good idea for small and medium sized investors to invest in technical analysis. Technical Analysis assumes that all information about the market and future fluctuations of a currency can be found in the price chain. In other words, technical analysis involves looking at the past events in the market and assuming that these trends will continue. This is a very good strategy because, quite simply, history has a habit of repeating itself. This is also safer because it entails less guesswork than marginal trading, since the investor assumes that history will continue and therefore makes a safe investment in a strong currency that seems likely to continue a positive trend.
Fundamental Analysis is the process of considering the current situation of the country of the currency. Elements such as a countries economy, political situation, and future must all be taken into account in Fundamental Analysis. Investors then make investments based upon this knowledge. The best investors not only analysis a countries current situation, but the rest of the world's interpretation of that country. Like any stock market, the value of the commodity is not merely based on exact numbers, but on perceptions of that commodity. If a country is believed to be on a positive path economically, than it's currency will do well in FOREX.
FOREX can be a potentially lucrative investment. However, the success of FOREX trading depends on the practices and knowledge of the investor. It is important for any investor to analyze the market and determine what exactly he or she wants to achieve in investing. Long-term gains and short-term gains require different strategies. The best investors are always well informed about the market, the world economy and have the best traders available. If one follows these practices, FOREX will certainly prove to be a very rewarding investment.
วันพุธที่ 16 มกราคม พ.ศ. 2551
Global Forex Trading - The Easy Way to Make Money
Global Forex Trading - The Easy Way to Make Money
by Oliver Turner
Global forex trading was founded in 1997 and is today one of the world's leading providers when it comes to forex real time trading. Global forex trading offer you the chance to deal in real time online currency trading that is making millions of forex brokers rich each day.
Global forex trading serves over 100 countries, using its DealBrook FX2 software and 24 hour market access with one of the highest levels of customer service available in the forex trading industry. With Global forex trading forex brokers have access to pricing for more than 60 currency pair and excellent analytical services from renowned experts. There are up to the minute currency news bulletins and advanced forex charts available. Global forex trading boasts that they provide the only forex trading platform that is suitable for both beginners and professionals.
Forex Trading Advantages
The forex trading market is open 24 hours a day and is today the most liquid market in the world. With forex and the available leverage strategy you can use 100 to 1 leverage which in turn reduces the need for large amounts of capital to be placed in your account. Forex trading is also commission free and trading is available on more than 60 currencies worldwide. Another advantage of forex trading is of course the fact that it is global and there are not restrictions placed on shorting which means that you can enjoy your profit opportunities no matter what the market condition.
Prior to reading this information you may have assumed that forex trading was only available for large investors but thanks to Global forex trading smaller transactions are now available which allows all traders to take part giving everyone the opportunity to profit from forex trading. Don't you think it's time you started profiting?
by Oliver Turner
Global forex trading was founded in 1997 and is today one of the world's leading providers when it comes to forex real time trading. Global forex trading offer you the chance to deal in real time online currency trading that is making millions of forex brokers rich each day.
Global forex trading serves over 100 countries, using its DealBrook FX2 software and 24 hour market access with one of the highest levels of customer service available in the forex trading industry. With Global forex trading forex brokers have access to pricing for more than 60 currency pair and excellent analytical services from renowned experts. There are up to the minute currency news bulletins and advanced forex charts available. Global forex trading boasts that they provide the only forex trading platform that is suitable for both beginners and professionals.
Forex Trading Advantages
The forex trading market is open 24 hours a day and is today the most liquid market in the world. With forex and the available leverage strategy you can use 100 to 1 leverage which in turn reduces the need for large amounts of capital to be placed in your account. Forex trading is also commission free and trading is available on more than 60 currencies worldwide. Another advantage of forex trading is of course the fact that it is global and there are not restrictions placed on shorting which means that you can enjoy your profit opportunities no matter what the market condition.
Prior to reading this information you may have assumed that forex trading was only available for large investors but thanks to Global forex trading smaller transactions are now available which allows all traders to take part giving everyone the opportunity to profit from forex trading. Don't you think it's time you started profiting?
Why do Forex Trading?
Why do Forex Trading?
by Don Spanish
Why do Forex Trading?
The cash/spot FOREX markets have certain unique attributes that offer an unmatched potential for profitable trading in any market condition or any stage of the business cycle. It leaves one to wonder why bother in the first place? The answer to that is very simple. Forex trading offers people who trade:
A 24-hour market: A trader has the chance to take advantage of all of the profitable market conditions at any time; which means that there is no waiting for the start like the New York Stock exchange.
Highest liquidity Possible: The FOREX market is the most liquid market in the world. That means that a trader can enter or exit the market whenever they want during almost any market condition minimal execution barriers or risk and no daily trading limit.
High leverage: It has a leverage ratio of up to 400 is normal when compared to a leverage ratio of 2 in the equity markets. Of course, this makes trading in the cash/spot forex market awkward a swell because it makes the risk of the down side loss much higher in the same way that it makes the profit potential on the upside much prettier.
Low cost per transaction: The retail transaction cost is actually less than 0.1% under the normal market conditions. At larger dealers, the spread could be less than 5 pips, and may expand a great deal in fast moving markets.
Always a good market: A trade in the FOREX market means selling or buying one currency against another. In essence, a bull market or a bear market for a currency is defined in terms of the outlook for value against other currencies. If the outlook is positive, you get a bull market where a trader profits by buying the currency against other currencies.
Inter-bank market: The foundation of the FOREX market consists of a global network of dealers that communicate and trade with their clients through electronic networks and telephones. There are no organized exchanges like in futures that are there to serve as a central location to facilitate transactions the way the New York Stock Exchange serves the equity markets.
No one can corner the market: The FOREX market is so large and has so many participants that no single trader, even a central bank, can control the market price for an extended period of time.
It is not completely Unregulated: The FOREX market is seen as an unregulated market although the operations of major dealers like commercial banks in money centers are regulated under the banking laws.
For the average person who is willing to get into forex trading, this market is just a better bet. With it being so wide open like it is, you have a higher gross potential than with any other trade type.
by Don Spanish
Why do Forex Trading?
The cash/spot FOREX markets have certain unique attributes that offer an unmatched potential for profitable trading in any market condition or any stage of the business cycle. It leaves one to wonder why bother in the first place? The answer to that is very simple. Forex trading offers people who trade:
A 24-hour market: A trader has the chance to take advantage of all of the profitable market conditions at any time; which means that there is no waiting for the start like the New York Stock exchange.
Highest liquidity Possible: The FOREX market is the most liquid market in the world. That means that a trader can enter or exit the market whenever they want during almost any market condition minimal execution barriers or risk and no daily trading limit.
High leverage: It has a leverage ratio of up to 400 is normal when compared to a leverage ratio of 2 in the equity markets. Of course, this makes trading in the cash/spot forex market awkward a swell because it makes the risk of the down side loss much higher in the same way that it makes the profit potential on the upside much prettier.
Low cost per transaction: The retail transaction cost is actually less than 0.1% under the normal market conditions. At larger dealers, the spread could be less than 5 pips, and may expand a great deal in fast moving markets.
Always a good market: A trade in the FOREX market means selling or buying one currency against another. In essence, a bull market or a bear market for a currency is defined in terms of the outlook for value against other currencies. If the outlook is positive, you get a bull market where a trader profits by buying the currency against other currencies.
Inter-bank market: The foundation of the FOREX market consists of a global network of dealers that communicate and trade with their clients through electronic networks and telephones. There are no organized exchanges like in futures that are there to serve as a central location to facilitate transactions the way the New York Stock Exchange serves the equity markets.
No one can corner the market: The FOREX market is so large and has so many participants that no single trader, even a central bank, can control the market price for an extended period of time.
It is not completely Unregulated: The FOREX market is seen as an unregulated market although the operations of major dealers like commercial banks in money centers are regulated under the banking laws.
For the average person who is willing to get into forex trading, this market is just a better bet. With it being so wide open like it is, you have a higher gross potential than with any other trade type.
วันจันทร์ที่ 14 มกราคม พ.ศ. 2551
Why Trading The Forex Is A New Trend
Why Trading The Forex Is A New Trend
by Maria Sanchez
The foreign exchange market, otherwise known as the forex, was first established in 1971. Despite being in existence for over 35 years, the forex just recently started to become a new and popular trend; a popular trend that many are hoping to become a part of.
Around the late 1990's, the forex market reached a critical point in its history. It was then that forex brokerage firms first opened to the general public. This opening gave everyone the opportunity to trade the forex. Before that point, the foreign exchange market was only for large financial institutions, corporations (particularly those that did business overseas) and central banks. Since the opening of forex brokerage firms to the public, a large number of individuals, from all walks of life, have started trading the forex. This alone has made trading the forex one of today's "hottest" trends.
In conjunction with brokerage firms opening to the general public, the low-cost of trading on the foreign exchange market is just another one of many reason why trading the forex market is a new trend, especially among those who never imagined themselves trading. Although brokerage firms and brokers vary, you will find that a large number of forex brokers, in the United States, do not charge transaction fees. These transaction fees are also commonly referred to as commissions. The forex also has minimal trading requirements. This not only means that you can trade as often as you would like to, but it also means that you can trade with much less money than you would in other markets. This is great for those who are interested in experimenting with the forex market without risking large amounts of capital.
Another reason why forex trading is considered a new trend is because of around-the-clock trading. The foreign exchange market has markets all around the world. For instance, markets can be found in London, the United States, and Hong Kong. Due to different time zones, the forex is open for trading twenty-four hours a day, five days a week. In the Untied States and all around the world, many individuals work a traditional nine to five job. A nine to five job makes it difficult, if not impossible, to trade the stock market. With around the clock trading, time isn't an issue with the forex. The ability to trade on your own schedule, whether it be early in the morning or late at night, is one of the many reasons why trading the forex market is being considered one of the "hottest," new trends today.
Of course, the ability to make money or yield a profit is the greatest reason as to why trading the forex is a new trend. The foreign exchange market or the forex involves the exchange of foreign currencies. With leveraging floating exchange rates, the potential to yield a profit is high. As previously mentioned, the forex market has very small trading minimums. That is why many individuals decide to test the forex market waters. To their surprise, many are able to make a small profit. That small profit often leads to more trades and the opportunity to yield even large profits. While there are risks associated with trading the forex, as with the stock market, many of the risks can be mitigated as long as you and other traders know what you are doing.
Speaking of knowing what you are doing, forex training courses are another one of the many reasons why forex trading is a new trend. Forex training courses, although they come in a number of different formats, are designed to educate hopeful traders, like you. Many training courses, such as the training courses offered by Fxcenter.com, rely on different approaches or phases, such as online forex training, onsite forex training, and live market training. Extensive training courses, similar to the ones offered by Fxcenter.com, are ideal as they allow you to examine and explore trading the forex at your own pace. With most forex training courses at least twenty-hours long, there is more than enough time to adequately familiarize yourself with forex trading. This familiarization is what gives many hopeful traders the confidence needed to trade the forex, which only further increases its popularity, making it a trend.
Since it is apparent to see that trading the forex is a new trend, are you capitalizing on that trend? If not, you are urged to examine trading the forex. After a close examination, you will not only see the many reasons as to why you should, but the many rewards of doing so.
by Maria Sanchez
The foreign exchange market, otherwise known as the forex, was first established in 1971. Despite being in existence for over 35 years, the forex just recently started to become a new and popular trend; a popular trend that many are hoping to become a part of.
Around the late 1990's, the forex market reached a critical point in its history. It was then that forex brokerage firms first opened to the general public. This opening gave everyone the opportunity to trade the forex. Before that point, the foreign exchange market was only for large financial institutions, corporations (particularly those that did business overseas) and central banks. Since the opening of forex brokerage firms to the public, a large number of individuals, from all walks of life, have started trading the forex. This alone has made trading the forex one of today's "hottest" trends.
In conjunction with brokerage firms opening to the general public, the low-cost of trading on the foreign exchange market is just another one of many reason why trading the forex market is a new trend, especially among those who never imagined themselves trading. Although brokerage firms and brokers vary, you will find that a large number of forex brokers, in the United States, do not charge transaction fees. These transaction fees are also commonly referred to as commissions. The forex also has minimal trading requirements. This not only means that you can trade as often as you would like to, but it also means that you can trade with much less money than you would in other markets. This is great for those who are interested in experimenting with the forex market without risking large amounts of capital.
Another reason why forex trading is considered a new trend is because of around-the-clock trading. The foreign exchange market has markets all around the world. For instance, markets can be found in London, the United States, and Hong Kong. Due to different time zones, the forex is open for trading twenty-four hours a day, five days a week. In the Untied States and all around the world, many individuals work a traditional nine to five job. A nine to five job makes it difficult, if not impossible, to trade the stock market. With around the clock trading, time isn't an issue with the forex. The ability to trade on your own schedule, whether it be early in the morning or late at night, is one of the many reasons why trading the forex market is being considered one of the "hottest," new trends today.
Of course, the ability to make money or yield a profit is the greatest reason as to why trading the forex is a new trend. The foreign exchange market or the forex involves the exchange of foreign currencies. With leveraging floating exchange rates, the potential to yield a profit is high. As previously mentioned, the forex market has very small trading minimums. That is why many individuals decide to test the forex market waters. To their surprise, many are able to make a small profit. That small profit often leads to more trades and the opportunity to yield even large profits. While there are risks associated with trading the forex, as with the stock market, many of the risks can be mitigated as long as you and other traders know what you are doing.
Speaking of knowing what you are doing, forex training courses are another one of the many reasons why forex trading is a new trend. Forex training courses, although they come in a number of different formats, are designed to educate hopeful traders, like you. Many training courses, such as the training courses offered by Fxcenter.com, rely on different approaches or phases, such as online forex training, onsite forex training, and live market training. Extensive training courses, similar to the ones offered by Fxcenter.com, are ideal as they allow you to examine and explore trading the forex at your own pace. With most forex training courses at least twenty-hours long, there is more than enough time to adequately familiarize yourself with forex trading. This familiarization is what gives many hopeful traders the confidence needed to trade the forex, which only further increases its popularity, making it a trend.
Since it is apparent to see that trading the forex is a new trend, are you capitalizing on that trend? If not, you are urged to examine trading the forex. After a close examination, you will not only see the many reasons as to why you should, but the many rewards of doing so.
Why Forex Training Courses Yield Better Profits
Why Forex Training Courses Yield Better Profits
by Maria Sanchez
Are you interested in becoming an active trader in the world's largest financial market? If you are, you will be looking to trade the foreign exchange market, also commonly referred to as the forex. In recent years, since the late 1990's, brokerage firms have made it possible for "everyday" individuals, just like you, to make money with the exchange or the trading of foreign currencies. Although brokerage firms do provide you with needed assistance, it is advised that you know the ins and outs of the forex yourself. That is why it is advised that you take a forex training course. In fact, the successful completion of a forex training course is likely to yield better profits.
When it comes to forex training courses, there are a large number of wannabe forex traders who wonder if it is really necessary to undergo training. Yes, you could start trading the forex market right away, but, when doing so, you will be taking a large risk. Although the foreign exchange market has been profitable to many traders, there are also those who have lost their hard earned money. To help ensure that you profit from the forex market, not suffer a loss, you are advised to closely examine forex training courses to reap their benefits.
By taking a forex training course, you may not only learn how to successfully trade the forex market, but you may also learn more about it. While you might not assume that the history of the foreign exchange market is important, it is. Familiarizing yourself with the history of the foreign exchange market will not only better help you understand how the forex came about, but it will also give you a better appreciation for the market and the ability to exchange foreign currencies. After all, the ability to exchange foreign currencies is what enables you to yield a profit.
Forex training course come in a number of different formats. When examining available courses, you will see that there are forex training courses that are designed for beginners. Beginners are those who are essentially completely unfamiliar with the forex market and forex trading. If you have a small amount of experience with the forex market or knowledge of how to start trading, an intermediate forex training course may be your best option. There are also several advanced courses to help experienced traders refine their skills. Whatever level of knowledge or experience you have, you should be able to find a forex training course that can help you increase your knowledge and wealth
One of the many aspects of a forex training course that may help to yield better profits is live market lessons. Live market lessons are, perhaps, the most essential phase of an effective forex training course. Live market lessons involve studying the foreign exchange market in real-time. This real-time learning is ideal because is allows you to examine situations on the forex that may arise, should you later decide to trade it. Being able to examine the forex market in real-time is training at its best. You can read a forex training course book or watch a video a hundred times, but never walk away with the knowledge or firsthand experience that comes along with live market lessons. Participating in a forex training course that includes a live market lesson is the surest way to yield better profits.
Currently, there are hundreds, if not thousands, of forex training courses available for you to choose from. What you may not know is that many of these training courses are offered by brokerage firms; brokerage firms that are looking to acquire you as a client. While it is true that any forex training course is better than no forex training course, why not get yourself the best? When searching for a forex training course, you are advised to examine Fxcenter.com. Fxcenter.com takes pride in being pure educators, not brokers. For you, this means better training. You will receive the highest level of forex training possible, as the goal is to educate you on the forex market, not acquire you as a client.
In short, to yield better profits, you are urged to examine forex training courses, particular the courses offered by Fxcenter.com. Why start trading the forex without the proper training and experience, especially when it is so easy to find a forex training course that can not only prepare you for trading, but help you yield better profits.
by Maria Sanchez
Are you interested in becoming an active trader in the world's largest financial market? If you are, you will be looking to trade the foreign exchange market, also commonly referred to as the forex. In recent years, since the late 1990's, brokerage firms have made it possible for "everyday" individuals, just like you, to make money with the exchange or the trading of foreign currencies. Although brokerage firms do provide you with needed assistance, it is advised that you know the ins and outs of the forex yourself. That is why it is advised that you take a forex training course. In fact, the successful completion of a forex training course is likely to yield better profits.
When it comes to forex training courses, there are a large number of wannabe forex traders who wonder if it is really necessary to undergo training. Yes, you could start trading the forex market right away, but, when doing so, you will be taking a large risk. Although the foreign exchange market has been profitable to many traders, there are also those who have lost their hard earned money. To help ensure that you profit from the forex market, not suffer a loss, you are advised to closely examine forex training courses to reap their benefits.
By taking a forex training course, you may not only learn how to successfully trade the forex market, but you may also learn more about it. While you might not assume that the history of the foreign exchange market is important, it is. Familiarizing yourself with the history of the foreign exchange market will not only better help you understand how the forex came about, but it will also give you a better appreciation for the market and the ability to exchange foreign currencies. After all, the ability to exchange foreign currencies is what enables you to yield a profit.
Forex training course come in a number of different formats. When examining available courses, you will see that there are forex training courses that are designed for beginners. Beginners are those who are essentially completely unfamiliar with the forex market and forex trading. If you have a small amount of experience with the forex market or knowledge of how to start trading, an intermediate forex training course may be your best option. There are also several advanced courses to help experienced traders refine their skills. Whatever level of knowledge or experience you have, you should be able to find a forex training course that can help you increase your knowledge and wealth
One of the many aspects of a forex training course that may help to yield better profits is live market lessons. Live market lessons are, perhaps, the most essential phase of an effective forex training course. Live market lessons involve studying the foreign exchange market in real-time. This real-time learning is ideal because is allows you to examine situations on the forex that may arise, should you later decide to trade it. Being able to examine the forex market in real-time is training at its best. You can read a forex training course book or watch a video a hundred times, but never walk away with the knowledge or firsthand experience that comes along with live market lessons. Participating in a forex training course that includes a live market lesson is the surest way to yield better profits.
Currently, there are hundreds, if not thousands, of forex training courses available for you to choose from. What you may not know is that many of these training courses are offered by brokerage firms; brokerage firms that are looking to acquire you as a client. While it is true that any forex training course is better than no forex training course, why not get yourself the best? When searching for a forex training course, you are advised to examine Fxcenter.com. Fxcenter.com takes pride in being pure educators, not brokers. For you, this means better training. You will receive the highest level of forex training possible, as the goal is to educate you on the forex market, not acquire you as a client.
In short, to yield better profits, you are urged to examine forex training courses, particular the courses offered by Fxcenter.com. Why start trading the forex without the proper training and experience, especially when it is so easy to find a forex training course that can not only prepare you for trading, but help you yield better profits.
Forex Future Trading
Forex Future Trading
by Uma
The profits of forex over currency futures trading are significant. The difference between the two instruments range from truth-seeking realities such as the history of each, their objective viewers, and their importance in the modern forex markets, to more concrete issues such as transactions fees, margin necessities, access to liquidity, easiness of use and the technical and educational support obtainable by sources of each service. These dissimilarities sketched below:
More Volume = Improved Liquidity. Daily money futures volume on the CME is now above 2% of the volume seen each day in the forex markets. Incomparable liquidity is one of many advantages that forex markets clutch more currency futures. The truth told this is old news. Any currency professional can tell you that cash has been king since daybreak of the modern currency markets in the early 1970's. The actual news is that individual dealers from every forex risk profile now have full right to use to the opportunities offered in the forex markets.
Forex markets give tighter bid to offer increases than currency futures markets. By reversing the futures cost to evaluate it to cash, you can willingly see that in the USD/CHF example over, inverting the futures selling price of .5894 - .5897 results in a currency price of 1.6958 - 1.6966, 8 pips vs. the 5-pip increase available in the forex currency markets.
Forex markets offer higher advantage and lower margin charge than those found in currency futures trading. When trading currency futures, buyers have one margin charge for "day" buy and sells and another for "overnight" situations. These forex margin rates can differ depending on business size. When trading cash markets, you have admission to the same margin rates day and night. Certainly, trading on margin enlarges equally your fx profits AND your losses.
Forex markets make use of easily understood and across the world used terms and cost quotes. Currency futures quotes are inversions of the cash value. For instance, if the cash price for USD/CHF is 1.7100/1.7105, the future corresponding is .5894/ .5897; a method followed only in the limits of futures trading.
Currency futures charges have the added difficulty of with an advance forex part that takes into account a time factor, interest rates and the interest disparities flanked by different currencies. The forex markets need no such changes, mathematical manipulation or thought for the interest rate factor of futures agreements.
Forex trades performed through FOREX.com are charge free*. Currency futures have the extra baggage of trading commissions, trade fees and defrayal fees.
by Uma
The profits of forex over currency futures trading are significant. The difference between the two instruments range from truth-seeking realities such as the history of each, their objective viewers, and their importance in the modern forex markets, to more concrete issues such as transactions fees, margin necessities, access to liquidity, easiness of use and the technical and educational support obtainable by sources of each service. These dissimilarities sketched below:
More Volume = Improved Liquidity. Daily money futures volume on the CME is now above 2% of the volume seen each day in the forex markets. Incomparable liquidity is one of many advantages that forex markets clutch more currency futures. The truth told this is old news. Any currency professional can tell you that cash has been king since daybreak of the modern currency markets in the early 1970's. The actual news is that individual dealers from every forex risk profile now have full right to use to the opportunities offered in the forex markets.
Forex markets give tighter bid to offer increases than currency futures markets. By reversing the futures cost to evaluate it to cash, you can willingly see that in the USD/CHF example over, inverting the futures selling price of .5894 - .5897 results in a currency price of 1.6958 - 1.6966, 8 pips vs. the 5-pip increase available in the forex currency markets.
Forex markets offer higher advantage and lower margin charge than those found in currency futures trading. When trading currency futures, buyers have one margin charge for "day" buy and sells and another for "overnight" situations. These forex margin rates can differ depending on business size. When trading cash markets, you have admission to the same margin rates day and night. Certainly, trading on margin enlarges equally your fx profits AND your losses.
Forex markets make use of easily understood and across the world used terms and cost quotes. Currency futures quotes are inversions of the cash value. For instance, if the cash price for USD/CHF is 1.7100/1.7105, the future corresponding is .5894/ .5897; a method followed only in the limits of futures trading.
Currency futures charges have the added difficulty of with an advance forex part that takes into account a time factor, interest rates and the interest disparities flanked by different currencies. The forex markets need no such changes, mathematical manipulation or thought for the interest rate factor of futures agreements.
Forex trades performed through FOREX.com are charge free*. Currency futures have the extra baggage of trading commissions, trade fees and defrayal fees.
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