Forex Jargon You Need to Know
Forex may be a completely new experience for you. You maybe experiencing fear and anticipation in the same moment even though it seems impossible because of this new thing you've discovered. Putting your money at risk into any investment is a big decision.
As you know money can buy you many things which can provide you enjoyment. So when you put that gratification on hold to instead buy into an investment the risk is you will never get any enjoyment out of that money.
This is the primary reason I want you to learn more about the forex markets.
Forex is the acronym some clever guy applied to the foreign currency market. This market operates similar to the stock market you know and love, or hate in this recession, only you are trading your currency for the currency of another country.
This market is normalized so that the only thing you can trade are pre-designated currency pairs. This means you can't just buy 37 Chinese Yuan with a certain amount of dollars. Of the 7 main pairs that you're allowed to trade in the US dollar/Euro pair makes up about 70% of all trades in any 24 hour period.
When these currency pairs moves it does so in increments called pips. When 1 currency strengthens it is doing so relative to the other currency in the pair. There are too many factors to list here as to why currencies move relative to one another. As with the stock market when there is good news in a country its currency strengthens. On the flip side of the coin when a country is in trouble its currency tanks.
You maybe witnessing this just like I am here in the US. Outside investors and other governments don't want dollars because they're becoming less valuable each day. The result is that more US dollars have to be given for the same amount of the investor's currency to somewhat equalize this anticipated future fall in value.
And the price of gold and other precious metals are at all-tme highs compared to the dollar because international investors would rather own gold than dollars right now because the dollar continues to sink.
Now after this brief overview I hope you have a deeper understanding of how to successfully play in this marketplace. You know some of the stock symbols for your favorite or most publicized stocks. Similar to these symbols forex currency pairs also have been given symbols. Two examples of US stocks and their corresponding symbols are Yahoo Internet company which is YHOO and Google search engine which is GOOG.
A symbol of gbpchf is the Pound swiss franc pair and the eurgbp is the Euro British pound pair.
As discussed briefly a move in any of these pairs is measured in relative terms by what are called pips. To find out how much dollar amount you'll make in profits is going to depend on the lot size. Once you know your lot size you can multiply by the pips to figure the gain or loss. When trading in bigger lot sizes like when you trade more shares of stock your potential for gain or loss is magnified.
Pips make things absolute so you can compare your trades to other peoples logically which you couldn't do when just talking in money terms because of likely differences in lot sizes. A 50 pip move is the same amount regardless of how big or small a lot size you traded. This really makes intelligent comparisons especially between accounts and time periods possible so you can gauge how your account and trading strategy is doing.
It makes it universal so when you're talking forex you can say you made 50 pips and the guy you're talking to will understand. Since talking money specifics is a mostly taboo subject this makes conversations about forex much easier.
วันพุธที่ 25 พฤศจิกายน พ.ศ. 2552
Forex EA Robots
Forex EA Robots
This article is designed to help the beginer starting out in Automated forex trading,by giving some general information and understanding of the forex market,and an insight into the use of Forex EA robots.
EAs which are short for Expert Advisors, are basically a software programme that will do all your trading for you while you sit back and watch the profits come rolling in.Once set up there are very simple to understand and control,all you need is some basic knowledge of how they work.
EAs work by trading currencies on the foreign currency exchange which is the biggest money market in the world, worth around 3 trillion dollars, and it can be a good source of income if you have the right robot and settings. Yes i know currency trading can be risky, but with forex EA robots you decide and control how much of a risk you want to take. Low risk settings will not make you a millionaire, but will give you a steady percentage growth on your investment, alot better than you will get in any high street bank. High risk settings will either make you or break you, your choice.
Before you can do any trading you will need a trading broker, a broker will handle all your trading orders,and all your trading orders will be placed by your forex EA robot.Most trading brokers are quiet simillar, only difference being that they offer different types of accounts.Most brokers will let you trade on a demo account with no risk to your capital,this is most advisible as it will give you the experience you need before you trade live with your own capital.For those who wish to trade only with a small amount of capital look for a broker that will let you trade on a micro or mini account,this is best if you only have less than 500 USD. Some brokers will let you trade with as little as 100 dollars on a micro account.They is no charge to you for using the broker, the brokers make they money by other means. One thing to note is that a recent change in the NFA rules means that if you trade by hedging,then you will need to trade with a non-US broker.
Choosing a forex ea robot is probably going to be the hardest part of setting up your automated trading. At present the internet is swamped with them and all promising to make you vast amounts of money.You will need to do some research to find out which are genuine, which are scams, and which ones are just a money making rackets for the programme developers.Most will charge about 70 to 200 USD,but there are some free forex ea robots about if you know where to look. Follow my links on this site and they will lead you to genuine websites that will guide you on the best performing robots, the scams, and the waste of time robots.Be sure to get an automated EA robot, some systems are not robots but work by giving you signals of when you should trade manually.
Once you have your trading broker for your forex ea robot the next step is to download your trading platform, this will generally be available to download from your brokers website. Your robot will need to be loaded onto your trading platform for it to function.This is where your robot will place and cancel all your trading orders, almost within seconds, or if you wish trades can be ordered manually by you.The most used and available trading platform is the metatrader MT4 platform that can be downloaded for free and is the most popular trading platform for almost all trading brokers.Some brokers do have they own trading platforms but will also have MT4 has an option.
This article is designed to help the beginer starting out in Automated forex trading,by giving some general information and understanding of the forex market,and an insight into the use of Forex EA robots.
EAs which are short for Expert Advisors, are basically a software programme that will do all your trading for you while you sit back and watch the profits come rolling in.Once set up there are very simple to understand and control,all you need is some basic knowledge of how they work.
EAs work by trading currencies on the foreign currency exchange which is the biggest money market in the world, worth around 3 trillion dollars, and it can be a good source of income if you have the right robot and settings. Yes i know currency trading can be risky, but with forex EA robots you decide and control how much of a risk you want to take. Low risk settings will not make you a millionaire, but will give you a steady percentage growth on your investment, alot better than you will get in any high street bank. High risk settings will either make you or break you, your choice.
Before you can do any trading you will need a trading broker, a broker will handle all your trading orders,and all your trading orders will be placed by your forex EA robot.Most trading brokers are quiet simillar, only difference being that they offer different types of accounts.Most brokers will let you trade on a demo account with no risk to your capital,this is most advisible as it will give you the experience you need before you trade live with your own capital.For those who wish to trade only with a small amount of capital look for a broker that will let you trade on a micro or mini account,this is best if you only have less than 500 USD. Some brokers will let you trade with as little as 100 dollars on a micro account.They is no charge to you for using the broker, the brokers make they money by other means. One thing to note is that a recent change in the NFA rules means that if you trade by hedging,then you will need to trade with a non-US broker.
Choosing a forex ea robot is probably going to be the hardest part of setting up your automated trading. At present the internet is swamped with them and all promising to make you vast amounts of money.You will need to do some research to find out which are genuine, which are scams, and which ones are just a money making rackets for the programme developers.Most will charge about 70 to 200 USD,but there are some free forex ea robots about if you know where to look. Follow my links on this site and they will lead you to genuine websites that will guide you on the best performing robots, the scams, and the waste of time robots.Be sure to get an automated EA robot, some systems are not robots but work by giving you signals of when you should trade manually.
Once you have your trading broker for your forex ea robot the next step is to download your trading platform, this will generally be available to download from your brokers website. Your robot will need to be loaded onto your trading platform for it to function.This is where your robot will place and cancel all your trading orders, almost within seconds, or if you wish trades can be ordered manually by you.The most used and available trading platform is the metatrader MT4 platform that can be downloaded for free and is the most popular trading platform for almost all trading brokers.Some brokers do have they own trading platforms but will also have MT4 has an option.
Forex Market Overview- Get the Truth About Forex Trading
Forex Market Overview- Get the Truth About Forex Trading
Why Cash Is King?
Foreign exchange is the largest financial market in the world. It is estimated that $3.2 trillion[1] global average daily volume is traded across the world every day.
Decentralised Market
Unlike equity or futures market, forex market does not have a centralised exchange. Trading the forex market does not involve an exchange and is usually traded in over-the-counter market where buyers and sellers conduct currency transactions.
Around-the-Clock 24 Hr Market
Forex market is opened 24 hour a day (about 6 days a week) where people from different time zones can participate.
Instant Liquidity
Trading the forex market is most liquid throughout the day. In other words, you can buy and sell currencies almost instantly whenever you want to. This liquidity provides investors and traders minimal risk because they can exit their investments as and when they want to without the possibility of not finding a potential buyer or seller for their transactions.
Transactions Occurring in the Forex Market
Commercial Transactions
Building developers purchase raw material such as mineral ores from Australia and trading companies will import products from abroad and export out to other countries.
Both of these transactions require that the company first sell their currency in exchange for the foreign currency to purchase their products. Subsequently, exporting goods will mean that companies accept foreign currency in exchange for their goods. Thereafter, converting profits back to home currency.
These companies act as both buyers and sellers for foreign currencies.
Hedging
Companies with open currency exposures will frequently buy or sell their local currency against foreign currency to protect from a loss in value due to possible currency fluctuations.
Portfolio Investments
Fund managers and hedge fund managers will make foreign-based investments to participate in the growth of developing countries. Investments in foreign investments require money to be paid in their home currency. Hence, before investment can be made, money must first be converted to their currency.
Personal
Tourists, immigrants and emigrants making money remittance are the main transactions in this category.
Funding
Big banks and government central banks will often borrow large quantity of money from abroad by arranging the sale of securities (government treasury bonds or commercial loans). Money received in foreign currencies will be converted in the forex market. Major Participants
Government and Central Banks
Central banks may regulate their country currency against US dollars by buying or selling US dollars to keep their currency within a certain band. This is also called dirty float.
We have witnessed many times that the Bank of Japan intervened in the forex market by selling Yen against US dollar to prevent Yen from appreciating too much against US dollars. This is because Japan is an exporting countries and prices of their product will become too expensive for its trading partners if Yen appreciate too much against US dollar.
Commercial Banks
They act as primary market dealers and provide liquidity to other participants in the forex market. Examples of these banks are Citibank, UBS and J.P Morgan.
Hedgers
These are usually multi national companies that hold large quantity of money in different currencies. They will take an opposite positions in anticipation of currency movements so as to minimise a lose in value.
Speculators
There are two groups of speculators. Hedge funds are the large speculators looking to profit from changes in major currency movements. The smaller group of speculator is the retail investors. Retail speculators have surged over the past 5 years due to the ability to trade electronically and from home.
The deregulation of the forex market allows retail investors to participate and profit from the forex market. Low brokerage fees, low margin requirements and highly leveraged are reasons why more people decided to participate in forex trading for investment purposes.
Closing Remarks
Foreign exchange market is believed to be the fastest growing period of our time. As forex market does not operate through an exchange, costs of participating in this market are much lower compared to the equity market.
This information are written in the aim of educating people on the facts about forex and the key driving factors which make it one of the fastest growing market of our time. "Cash is king!" - This phrase will hold true for a long time.
Feel free to use this article on your website or ezine as long as the following information about author/website is included.
[1] BIS Triennial Central Bank Survey of FX and Derivatives Market Activity in April 2007, published September and December 2007
Why Cash Is King?
Foreign exchange is the largest financial market in the world. It is estimated that $3.2 trillion[1] global average daily volume is traded across the world every day.
Decentralised Market
Unlike equity or futures market, forex market does not have a centralised exchange. Trading the forex market does not involve an exchange and is usually traded in over-the-counter market where buyers and sellers conduct currency transactions.
Around-the-Clock 24 Hr Market
Forex market is opened 24 hour a day (about 6 days a week) where people from different time zones can participate.
Instant Liquidity
Trading the forex market is most liquid throughout the day. In other words, you can buy and sell currencies almost instantly whenever you want to. This liquidity provides investors and traders minimal risk because they can exit their investments as and when they want to without the possibility of not finding a potential buyer or seller for their transactions.
Transactions Occurring in the Forex Market
Commercial Transactions
Building developers purchase raw material such as mineral ores from Australia and trading companies will import products from abroad and export out to other countries.
Both of these transactions require that the company first sell their currency in exchange for the foreign currency to purchase their products. Subsequently, exporting goods will mean that companies accept foreign currency in exchange for their goods. Thereafter, converting profits back to home currency.
These companies act as both buyers and sellers for foreign currencies.
Hedging
Companies with open currency exposures will frequently buy or sell their local currency against foreign currency to protect from a loss in value due to possible currency fluctuations.
Portfolio Investments
Fund managers and hedge fund managers will make foreign-based investments to participate in the growth of developing countries. Investments in foreign investments require money to be paid in their home currency. Hence, before investment can be made, money must first be converted to their currency.
Personal
Tourists, immigrants and emigrants making money remittance are the main transactions in this category.
Funding
Big banks and government central banks will often borrow large quantity of money from abroad by arranging the sale of securities (government treasury bonds or commercial loans). Money received in foreign currencies will be converted in the forex market. Major Participants
Government and Central Banks
Central banks may regulate their country currency against US dollars by buying or selling US dollars to keep their currency within a certain band. This is also called dirty float.
We have witnessed many times that the Bank of Japan intervened in the forex market by selling Yen against US dollar to prevent Yen from appreciating too much against US dollars. This is because Japan is an exporting countries and prices of their product will become too expensive for its trading partners if Yen appreciate too much against US dollar.
Commercial Banks
They act as primary market dealers and provide liquidity to other participants in the forex market. Examples of these banks are Citibank, UBS and J.P Morgan.
Hedgers
These are usually multi national companies that hold large quantity of money in different currencies. They will take an opposite positions in anticipation of currency movements so as to minimise a lose in value.
Speculators
There are two groups of speculators. Hedge funds are the large speculators looking to profit from changes in major currency movements. The smaller group of speculator is the retail investors. Retail speculators have surged over the past 5 years due to the ability to trade electronically and from home.
The deregulation of the forex market allows retail investors to participate and profit from the forex market. Low brokerage fees, low margin requirements and highly leveraged are reasons why more people decided to participate in forex trading for investment purposes.
Closing Remarks
Foreign exchange market is believed to be the fastest growing period of our time. As forex market does not operate through an exchange, costs of participating in this market are much lower compared to the equity market.
This information are written in the aim of educating people on the facts about forex and the key driving factors which make it one of the fastest growing market of our time. "Cash is king!" - This phrase will hold true for a long time.
Feel free to use this article on your website or ezine as long as the following information about author/website is included.
[1] BIS Triennial Central Bank Survey of FX and Derivatives Market Activity in April 2007, published September and December 2007
Forex Rebellion - What In The World?
Forex Rebellion - What In The World?
Forex Rebellion is another of many foreign currency trading products (or programs) that has hit the market in a big way. And it has created a huge buzz.
Developed by Russ Horn - a part time forex trader, Russ has come up with a system to trade in a more effective and efficient manner. Through years of testing and developing, Russ has honed in on his trading techniques, and has compiled his years of knowledge into Forex Rebellion - a one in all system.
For sure, this is truly different to any of the Forex products - it is not a software, it is not an autopilot system, and it does not promise the world. This is about using a system that will show you how to improve your skills and more importantly, improve your return on investment.
Since there are so many forex robot software going around, this is worth repeating - Forex Rebellion is not a Robot system - you have to trade manually yourself by following a step by step guideline (or rules) that you will use while setting up, and executing various types of currency trades.
Therefore a bit of reading required on your part - as knowledge and effort is key to making this work for you.
So Does Forex Rebellion Work?
Look, no system, software or product will be ever perfect. Nothing is perfect, and for sure, it will not suit everyone. However a majority of users will find this refreshing, as it gives you a system to follow and put into action. And unlike the automated forex softwares, Forex Rebellion has the flexibility to allow you to trade in many currency trades. It's up to you to give it a go.
Forex Rebellion is another of many foreign currency trading products (or programs) that has hit the market in a big way. And it has created a huge buzz.
Developed by Russ Horn - a part time forex trader, Russ has come up with a system to trade in a more effective and efficient manner. Through years of testing and developing, Russ has honed in on his trading techniques, and has compiled his years of knowledge into Forex Rebellion - a one in all system.
For sure, this is truly different to any of the Forex products - it is not a software, it is not an autopilot system, and it does not promise the world. This is about using a system that will show you how to improve your skills and more importantly, improve your return on investment.
Since there are so many forex robot software going around, this is worth repeating - Forex Rebellion is not a Robot system - you have to trade manually yourself by following a step by step guideline (or rules) that you will use while setting up, and executing various types of currency trades.
Therefore a bit of reading required on your part - as knowledge and effort is key to making this work for you.
So Does Forex Rebellion Work?
Look, no system, software or product will be ever perfect. Nothing is perfect, and for sure, it will not suit everyone. However a majority of users will find this refreshing, as it gives you a system to follow and put into action. And unlike the automated forex softwares, Forex Rebellion has the flexibility to allow you to trade in many currency trades. It's up to you to give it a go.
วันจันทร์ที่ 16 พฤศจิกายน พ.ศ. 2552
Tips to Look For When Searching For Forex System Trading
Tips to Look For When Searching For Forex System Trading
There are a lot of forex system trading program that can be downloaded in the Internet today. You only have to enter the keywords forex system trading in any of the search engines and in a second, a number of sites will be posed on your screen. They are so many that you cannot decide which one to pick. However, not all of this forex system trading software is all true. Some are just a way to scam other people. Most of these scams will allow you to lose all your money before you got to start with your investments. It is important here that you carefully scrutinize the forex system trading program that you'll buy. If this software offers you to become rich in no time, then chances are you fall in a sort of a scam.
There are many type of forex system trading software out in the net. They all claim that they are the best when it comes to forex system trading. You must be vigilant in choosing the right software for you because some of them are not that effective as they say. Do not be fooled by those people who claimed that they found the best winning strategy in being successful in the forex market. Usually, these people will say that they want to share their strategy of success to other people but in reality they are luring you to their scam.
These people did not actually taste victory in the forex arena so what they've done is to scam other people in order to make profit from themselves. You need to start to worry if the site presents you tons of testimonials and videos of people who become successful because of the forex system trading program. Another scheme of these people is that they offer you a starter kit can help you supposedly in earning money in just a short time. In order to avoid these, it is always advisable to consult the experts because they know the top forex system trading software out there in the Internet. Aside from seeking the expert's advice, you might want to give some of your time researching for a good forex system trading program if you are dead serious about the forex market. You need to know if the man behind it has a justifiable achievement in the market. You can also enroll in a forex course on reputable forex companies in the Internet. Of course, it is not for free but you'll get the worth of it. Finishing the course would be a good starting point of your career in the world of foreign exchange.
Lastly, a good forex system trading program usually offers you a full package. It will teach you how to control the program and how to monitor market trends. It is also important that you have an optimistic mind even if you lose some profit a long the way. Being optimistic will help you to endure all the problems that you might encounter as you climb the ladder of success.
There are a lot of forex system trading program that can be downloaded in the Internet today. You only have to enter the keywords forex system trading in any of the search engines and in a second, a number of sites will be posed on your screen. They are so many that you cannot decide which one to pick. However, not all of this forex system trading software is all true. Some are just a way to scam other people. Most of these scams will allow you to lose all your money before you got to start with your investments. It is important here that you carefully scrutinize the forex system trading program that you'll buy. If this software offers you to become rich in no time, then chances are you fall in a sort of a scam.
There are many type of forex system trading software out in the net. They all claim that they are the best when it comes to forex system trading. You must be vigilant in choosing the right software for you because some of them are not that effective as they say. Do not be fooled by those people who claimed that they found the best winning strategy in being successful in the forex market. Usually, these people will say that they want to share their strategy of success to other people but in reality they are luring you to their scam.
These people did not actually taste victory in the forex arena so what they've done is to scam other people in order to make profit from themselves. You need to start to worry if the site presents you tons of testimonials and videos of people who become successful because of the forex system trading program. Another scheme of these people is that they offer you a starter kit can help you supposedly in earning money in just a short time. In order to avoid these, it is always advisable to consult the experts because they know the top forex system trading software out there in the Internet. Aside from seeking the expert's advice, you might want to give some of your time researching for a good forex system trading program if you are dead serious about the forex market. You need to know if the man behind it has a justifiable achievement in the market. You can also enroll in a forex course on reputable forex companies in the Internet. Of course, it is not for free but you'll get the worth of it. Finishing the course would be a good starting point of your career in the world of foreign exchange.
Lastly, a good forex system trading program usually offers you a full package. It will teach you how to control the program and how to monitor market trends. It is also important that you have an optimistic mind even if you lose some profit a long the way. Being optimistic will help you to endure all the problems that you might encounter as you climb the ladder of success.
With Day Trading Software you can Make Money
With Day Trading Software you can Make Money
In the old days, investors had a very difficult job. Can you imagine spending hours and even days pouring over statistics, charts, and data to be able to make some investing decisions. Not only was it time consuming but also very difficult and stressful. Then you have the factor that the data wasn't always accurate to begin with.
One of the reasons why Forex trading has become so popular is that just about anyone can take part in it. You no longer need to have such an in depth background in finance and investing. You also don't need to have lots of extra time on your hands. Day trading software has made the process very simplistic compared to what it used to be.
In fact, as long as you are able to use a computer for basic things then stock market trading software will be something you have no trouble with at all. Keep in mind though that there are lots of different types of software out there that you can use to make money with. It is wise to evaluate different ones before you make up your mind which is best for you.
A common mistake is assuming that all day trading software is the same. While they do have the basic set up, the different features are what sets them apart from each other. Read reviews from other people to see what works for them and why. You can also find some free demos out there that allow you to explore first hand what a program can do.
Once you find the right day trading software you will have the chance to make money from your investments quickly and easily. To get started though you need to have your currency trading strategy in place. This the structure that you will follow in order to decide what actions to take. Never deviate from that structure or you will cost yourself money. Being consistent is the key to being successful.
This doesn't mean you hang on to a system that doesn't work for you. If you need to make changes then do so. From there you can modify the set up to the day trading software program you are using. Keep in mind that you can have most everything going on for you behind the scenes.
By going with an automatic Forex trading set up, you can spend very little time with the entire process. Yet you can be making money and that is why Forex trading is so appealing to people. You may already have a job but you want to make more money and save for the future. Simply having a retirement fund in place isn't enough with today's economy.
You may be out of work or retired, and Forex trading with the use of stock market trading software gives you a way to make money and not spend all of your free time doing so. By choice some individuals are involved with day trading enough that they have lots of money to spend and lots of free time to enjoy it.
In the old days, investors had a very difficult job. Can you imagine spending hours and even days pouring over statistics, charts, and data to be able to make some investing decisions. Not only was it time consuming but also very difficult and stressful. Then you have the factor that the data wasn't always accurate to begin with.
One of the reasons why Forex trading has become so popular is that just about anyone can take part in it. You no longer need to have such an in depth background in finance and investing. You also don't need to have lots of extra time on your hands. Day trading software has made the process very simplistic compared to what it used to be.
In fact, as long as you are able to use a computer for basic things then stock market trading software will be something you have no trouble with at all. Keep in mind though that there are lots of different types of software out there that you can use to make money with. It is wise to evaluate different ones before you make up your mind which is best for you.
A common mistake is assuming that all day trading software is the same. While they do have the basic set up, the different features are what sets them apart from each other. Read reviews from other people to see what works for them and why. You can also find some free demos out there that allow you to explore first hand what a program can do.
Once you find the right day trading software you will have the chance to make money from your investments quickly and easily. To get started though you need to have your currency trading strategy in place. This the structure that you will follow in order to decide what actions to take. Never deviate from that structure or you will cost yourself money. Being consistent is the key to being successful.
This doesn't mean you hang on to a system that doesn't work for you. If you need to make changes then do so. From there you can modify the set up to the day trading software program you are using. Keep in mind that you can have most everything going on for you behind the scenes.
By going with an automatic Forex trading set up, you can spend very little time with the entire process. Yet you can be making money and that is why Forex trading is so appealing to people. You may already have a job but you want to make more money and save for the future. Simply having a retirement fund in place isn't enough with today's economy.
You may be out of work or retired, and Forex trading with the use of stock market trading software gives you a way to make money and not spend all of your free time doing so. By choice some individuals are involved with day trading enough that they have lots of money to spend and lots of free time to enjoy it.
Your Currency Trading Strategy is a Vital Part of Forex Trading
Your Currency Trading Strategy is a Vital Part of Forex Trading
Making money through Forex trading is a great way to get a return on your investments. You also don't need very much money to get involved with it so that makes it a good concept for everyone to take part in. A vital part of your success though is to have a great currency trading strategy firmly in place. This will serve to help you make up your mind about what to go with and when.
Think of your currency trading strategy as the rules for a game. With stock trading systems though you are the one that gets to decide what those rules will be. You can cover the strategies that experts write about in books and online. You can take pieces of different strategies to create one that works well for you. Being in control of that is what makes Forex trading fun as well as challenging.
Automatic Forex trading can take place once you have your currency trading strategy in place. You never want to attempt to be involved with day trading until you have those guidelines firmly in place. Otherwise you could end up allowing your emotions to get the best of you.
The vision of making more money can overshadow your logic. Then you will make investment decisions with day trading software that aren't right for you. This is how you can end up losing your money very quickly. Even with a great currency trading strategy in place, you will find that you do lose money sometimes. Yet in the overall scheme of things your profits should be much more than your losses.
Automatic Forex trading is a breeze once you have your currency trading strategy implemented with it. You will be consistent and never have to guess about what actions to take. Your determining factors will help you to buy when the price is right, to sell when you should, and to minimize the overall loss on any give trade.
The stock market trading software you use will allow you to make all of that happen without it being time consuming or difficult. There are plenty of great stock market systems to evaluate so invest your time in doing so before you put any real money on the line. You want to work out any kinks before that point.
Any currency trading system that you have should be evaluated on a regular basis. That way you can see what is working well and what isn't. You may find you need to make some changes to how you are processing your stock trading systems. Make sure you make those changes at the right time - not when you are evaluating investments you are going to make or you already have in place.
If you are going to be successful with Forex trading you need to have a dependable system in place that works well for you the majority of the time. Once you find it, that will be your ticket to making a great deal of money.
Making money through Forex trading is a great way to get a return on your investments. You also don't need very much money to get involved with it so that makes it a good concept for everyone to take part in. A vital part of your success though is to have a great currency trading strategy firmly in place. This will serve to help you make up your mind about what to go with and when.
Think of your currency trading strategy as the rules for a game. With stock trading systems though you are the one that gets to decide what those rules will be. You can cover the strategies that experts write about in books and online. You can take pieces of different strategies to create one that works well for you. Being in control of that is what makes Forex trading fun as well as challenging.
Automatic Forex trading can take place once you have your currency trading strategy in place. You never want to attempt to be involved with day trading until you have those guidelines firmly in place. Otherwise you could end up allowing your emotions to get the best of you.
The vision of making more money can overshadow your logic. Then you will make investment decisions with day trading software that aren't right for you. This is how you can end up losing your money very quickly. Even with a great currency trading strategy in place, you will find that you do lose money sometimes. Yet in the overall scheme of things your profits should be much more than your losses.
Automatic Forex trading is a breeze once you have your currency trading strategy implemented with it. You will be consistent and never have to guess about what actions to take. Your determining factors will help you to buy when the price is right, to sell when you should, and to minimize the overall loss on any give trade.
The stock market trading software you use will allow you to make all of that happen without it being time consuming or difficult. There are plenty of great stock market systems to evaluate so invest your time in doing so before you put any real money on the line. You want to work out any kinks before that point.
Any currency trading system that you have should be evaluated on a regular basis. That way you can see what is working well and what isn't. You may find you need to make some changes to how you are processing your stock trading systems. Make sure you make those changes at the right time - not when you are evaluating investments you are going to make or you already have in place.
If you are going to be successful with Forex trading you need to have a dependable system in place that works well for you the majority of the time. Once you find it, that will be your ticket to making a great deal of money.
วันพุธที่ 4 พฤศจิกายน พ.ศ. 2552
Placing Forex Trades With A Stochastic Oscillator
Placing Forex Trades With A Stochastic Oscillator
The stochastic oscillator is in a category of technical indicators called momentum indicators, which measure the velocity of price changes instead of the actual trend or price levels themselves. Since this indicator measures price velocity and does not care about actual price levels, it works as a great predictive indicator that can indicate overbought or oversold market conditions which can warn a trader that the price is vulnerable to a short-term change in direction.
One of the most popular momentum indicators that is included in nearly every charting package is called the Relative Strength Index, which gauges price velocity on a scale of 0-100 with 50 as the center line, where market conditions below 20 indicate oversold and market conditions over 80 indicate overbought. This is very valuable information to a trader for two reasons: First, a change in the velocity of price movement will tend to occur before a change in price levels, so the indicator can yield signals that are predictive and not retrospective in nature. Second, it is the buying or selling pressure of bulls and bears that creates up and down movements in the price, but once a price move reaches its zenith and there is no more momentum or market pressure to keep the market moving, this is the signal for a market reversal and the momentum indicator will precede this reversal.
Looking at a stochastic oscillator can be more insightful in some ways than just the typical RSI momentum indicator because there is more information conveyed on the indicator itself. It uses a typical 0-100 scale with the same overbought and oversold parameters as the RSI, but on the stochastic oscillator there are two lines related to the velocity of price data instead of just one. There is a faster moving line on the indicator which is the actual stochastic level that measures momentum, and then there is the slower moving line which is a moving average of the original momentum levels that can act as your signal line just like a moving average on the price chart will do.
When the stochastic line crosses the moving average line from the bottom going up, this is the signal to buy; when the stochastic line crosses the moving average line from the top going down then this is the signal to sell. These signals are particularly valid when a buy signal is given in oversold territory and a sell signal is given in overbought territory, because this is your indication of a short-term reversal in price which will be given before the actual price movement, meaning that you can get in the market at the right time and make sure that your sell price is higher than your buy price.
The stochastic oscillator is in a category of technical indicators called momentum indicators, which measure the velocity of price changes instead of the actual trend or price levels themselves. Since this indicator measures price velocity and does not care about actual price levels, it works as a great predictive indicator that can indicate overbought or oversold market conditions which can warn a trader that the price is vulnerable to a short-term change in direction.
One of the most popular momentum indicators that is included in nearly every charting package is called the Relative Strength Index, which gauges price velocity on a scale of 0-100 with 50 as the center line, where market conditions below 20 indicate oversold and market conditions over 80 indicate overbought. This is very valuable information to a trader for two reasons: First, a change in the velocity of price movement will tend to occur before a change in price levels, so the indicator can yield signals that are predictive and not retrospective in nature. Second, it is the buying or selling pressure of bulls and bears that creates up and down movements in the price, but once a price move reaches its zenith and there is no more momentum or market pressure to keep the market moving, this is the signal for a market reversal and the momentum indicator will precede this reversal.
Looking at a stochastic oscillator can be more insightful in some ways than just the typical RSI momentum indicator because there is more information conveyed on the indicator itself. It uses a typical 0-100 scale with the same overbought and oversold parameters as the RSI, but on the stochastic oscillator there are two lines related to the velocity of price data instead of just one. There is a faster moving line on the indicator which is the actual stochastic level that measures momentum, and then there is the slower moving line which is a moving average of the original momentum levels that can act as your signal line just like a moving average on the price chart will do.
When the stochastic line crosses the moving average line from the bottom going up, this is the signal to buy; when the stochastic line crosses the moving average line from the top going down then this is the signal to sell. These signals are particularly valid when a buy signal is given in oversold territory and a sell signal is given in overbought territory, because this is your indication of a short-term reversal in price which will be given before the actual price movement, meaning that you can get in the market at the right time and make sure that your sell price is higher than your buy price.
How to Automate your Forex Trading
How to Automate your Forex Trading
If you are like me then you dream of automatic income machines. These are businesses, products, or services that generate profit month over month without you having to invest much, if any, time into it. Forex trading can be one of the machines. All you have to do is understand the basics of the market and learn the essential trading methods to automate your Forex trading.
If you are a master at technical analysis and pretty much predict market movements based on a series of your rules then why are you still doing trades manually? You can get programs written for you that follow a series of your rules and will even shut down if they lose to much. Using stop, trailing stops, and other tools you can set up your programs to create massive wealth and protect your account in the event of a dip.
If you don't want to have your own program written you should read up on programs that are currently built for automated forex. The advantage of having a private systems built is complete control, but you wont have the protections built in or the support if anything ever goes wrong. If you don't want to use a program there are many trade options that can give you semi-auto trading control.
A trail is a trading option that can keep your sell order going through based on averages. For example if you buy a currency at .50 and put a sale at .65 with a trail of .03 then if the currency passes .65 and keeps rising to .75 but then goes back down to .60 your currency would have sold out at .72. This is because the sale order tracks the upward movement of the currency and find the top stopping point and then watches the "trail" and once it goes down 3 pips it will sell the currency.
There is much more to learn in this field so I recommend further research using tools such as Investopedia and popular forex forums before you act on any tools that you do not fully understand. The biggest problem with some of the automation tools is that you can lose out of major gains because computers cannot "feel" the sentiment in the market. They also respond to accidentally price prints, so if the market drops a false price that hits your stop then you could be sold out immediately even though your currency hasn't hit its price point. Before you do anything make sure you learn forex trading the right way!
If you are like me then you dream of automatic income machines. These are businesses, products, or services that generate profit month over month without you having to invest much, if any, time into it. Forex trading can be one of the machines. All you have to do is understand the basics of the market and learn the essential trading methods to automate your Forex trading.
If you are a master at technical analysis and pretty much predict market movements based on a series of your rules then why are you still doing trades manually? You can get programs written for you that follow a series of your rules and will even shut down if they lose to much. Using stop, trailing stops, and other tools you can set up your programs to create massive wealth and protect your account in the event of a dip.
If you don't want to have your own program written you should read up on programs that are currently built for automated forex. The advantage of having a private systems built is complete control, but you wont have the protections built in or the support if anything ever goes wrong. If you don't want to use a program there are many trade options that can give you semi-auto trading control.
A trail is a trading option that can keep your sell order going through based on averages. For example if you buy a currency at .50 and put a sale at .65 with a trail of .03 then if the currency passes .65 and keeps rising to .75 but then goes back down to .60 your currency would have sold out at .72. This is because the sale order tracks the upward movement of the currency and find the top stopping point and then watches the "trail" and once it goes down 3 pips it will sell the currency.
There is much more to learn in this field so I recommend further research using tools such as Investopedia and popular forex forums before you act on any tools that you do not fully understand. The biggest problem with some of the automation tools is that you can lose out of major gains because computers cannot "feel" the sentiment in the market. They also respond to accidentally price prints, so if the market drops a false price that hits your stop then you could be sold out immediately even though your currency hasn't hit its price point. Before you do anything make sure you learn forex trading the right way!
วันอังคารที่ 3 พฤศจิกายน พ.ศ. 2552
How to Become a Great Forex Scalper by Following the Trend
How to Become a Great Forex Scalper by Following the Trend
Many people want to know how to become a great forex scalper. They love the idea of hit and run trades where you go in and out of the market several times of the day. So, how is any of this accomplished?
Well, for starters you know that indicator menu on your charting software? Yeah, don't bother looking at that, because that's not going to help you. Scalping (or any other kind of trading style) the market requires you to actually understand the market. It's hard to do that when you've got the 5 or 6 indicators on your charts. You are too busy trying to understand the indicators, instead of the market.
Let's get a little more bare bones about this. Pull off all your indicators that you are using, so you are left with nothing but a simple price chart. Then study it. One thing should become very obvious to you after you have gotten rid of all that interference. You are seeing the market at its truest form.
When you really focus, it should become really evident where the trend is going, and as any successful trader would say, "trade with the trend".
So after you figure out how to spot the trend, its time to do a top-down perspective on this. Let's say you like to trade a 5 minute chart. Then start looking to see where the trend is on the 15 minute, 30 minute, and 1 hour chart. After you look at those charts you should have some idea where the intermediate trend is. All you have to do then, is look for scalping opportunities that match that intermediate trend.
Reading and understanding basic price action like this, should be critical to any kind of trader, irregardless of trading style and/or trading market.
Many people want to know how to become a great forex scalper. They love the idea of hit and run trades where you go in and out of the market several times of the day. So, how is any of this accomplished?
Well, for starters you know that indicator menu on your charting software? Yeah, don't bother looking at that, because that's not going to help you. Scalping (or any other kind of trading style) the market requires you to actually understand the market. It's hard to do that when you've got the 5 or 6 indicators on your charts. You are too busy trying to understand the indicators, instead of the market.
Let's get a little more bare bones about this. Pull off all your indicators that you are using, so you are left with nothing but a simple price chart. Then study it. One thing should become very obvious to you after you have gotten rid of all that interference. You are seeing the market at its truest form.
When you really focus, it should become really evident where the trend is going, and as any successful trader would say, "trade with the trend".
So after you figure out how to spot the trend, its time to do a top-down perspective on this. Let's say you like to trade a 5 minute chart. Then start looking to see where the trend is on the 15 minute, 30 minute, and 1 hour chart. After you look at those charts you should have some idea where the intermediate trend is. All you have to do then, is look for scalping opportunities that match that intermediate trend.
Reading and understanding basic price action like this, should be critical to any kind of trader, irregardless of trading style and/or trading market.
วันอาทิตย์ที่ 1 พฤศจิกายน พ.ศ. 2552
Forex Trading - Tips to Improve Your Consistency and Profit
Forex Trading - Tips to Improve Your Consistency and Profit
Do you find with Forex trading that you win some trades only to find a few losing ones follow?
This is one of the main areas to plague many Forex traders. There are some main points to be raised which will make your Forex trading consistently more successful.
For you to make consistent gains it is recommended that your Forex trading strategy is kept as simple as you can make it. You have heard of the KISS strategy right? Keep It Simple and Straight-forward, well this definitely applies to trading Forex.
Forex trading requires good, fast decision making by acting upon your trading strategy. This is so much harder to do if you have many indicators, Moving Averages, oscillators etc to check.
To make fast decisions you need to have a clear head to think and limiting the amount of information you have to process before placing a trade will make this a whole lot easier!
Are you keeping a note book or journal of all your trades? If you write everything down, you will be able to analysis your Forex trading plan. Sometimes you will need to go back to the note book and fine tune your strategy to weed out the indicators, Moving Average settings which may not be working for you.
Another great tip to be consistent is to trade in the same way, at the same time of day over a period of time. Make sure you find out when to expect the results of Fundamental and economic announcements. This will mean you do not get whipsawed out of the market and your trades lost due to bad timing.
Great! So we have a good Forex trading strategy with minimal techniques to help identify the trade, now what?
Well, another point about Forex trading consistency is keeping your emotions in check. If you trade differently every time you open a position then you will be inconsistent with your winning trades. Decide your strategy and then trade it. Plan your trade and then trade your plan!
The best way to do this is over time through paper trading first, followed by using a demo account from a reputable Forex broker like the one mentioned below. Once you have your strategy nailed down, this will give you the confidence to trade with a minimum lot size while you gain experience with the risk factor of trading a live account.
Something which works for me is to think of each trade in pip or point value. So, instead of thinking of how much money you will gain or lose, look at it in a different way. How many pips will you gain or risk with your stop loss. Consequently, money is taken out of the equation together with the associated emotions.
So, in order to trade the Forex with consistency you need to have a simple yet effective strategy with every trade recorded in your Forex trading note book. Make sure you know when to look out for economic and fundamental results which may move the market in an unexpected way.
You have done a great job to get this far!
Have confidence in your strategy. If you are trading a live account, then you would have come a long way in developing your Forex trading strategy and you will be able to benefit from your hard work. Keeping your emotions in check will allow you a clear mind to take those trades and make your profit.
To you success and happy trading.
Do you find with Forex trading that you win some trades only to find a few losing ones follow?
This is one of the main areas to plague many Forex traders. There are some main points to be raised which will make your Forex trading consistently more successful.
For you to make consistent gains it is recommended that your Forex trading strategy is kept as simple as you can make it. You have heard of the KISS strategy right? Keep It Simple and Straight-forward, well this definitely applies to trading Forex.
Forex trading requires good, fast decision making by acting upon your trading strategy. This is so much harder to do if you have many indicators, Moving Averages, oscillators etc to check.
To make fast decisions you need to have a clear head to think and limiting the amount of information you have to process before placing a trade will make this a whole lot easier!
Are you keeping a note book or journal of all your trades? If you write everything down, you will be able to analysis your Forex trading plan. Sometimes you will need to go back to the note book and fine tune your strategy to weed out the indicators, Moving Average settings which may not be working for you.
Another great tip to be consistent is to trade in the same way, at the same time of day over a period of time. Make sure you find out when to expect the results of Fundamental and economic announcements. This will mean you do not get whipsawed out of the market and your trades lost due to bad timing.
Great! So we have a good Forex trading strategy with minimal techniques to help identify the trade, now what?
Well, another point about Forex trading consistency is keeping your emotions in check. If you trade differently every time you open a position then you will be inconsistent with your winning trades. Decide your strategy and then trade it. Plan your trade and then trade your plan!
The best way to do this is over time through paper trading first, followed by using a demo account from a reputable Forex broker like the one mentioned below. Once you have your strategy nailed down, this will give you the confidence to trade with a minimum lot size while you gain experience with the risk factor of trading a live account.
Something which works for me is to think of each trade in pip or point value. So, instead of thinking of how much money you will gain or lose, look at it in a different way. How many pips will you gain or risk with your stop loss. Consequently, money is taken out of the equation together with the associated emotions.
So, in order to trade the Forex with consistency you need to have a simple yet effective strategy with every trade recorded in your Forex trading note book. Make sure you know when to look out for economic and fundamental results which may move the market in an unexpected way.
You have done a great job to get this far!
Have confidence in your strategy. If you are trading a live account, then you would have come a long way in developing your Forex trading strategy and you will be able to benefit from your hard work. Keeping your emotions in check will allow you a clear mind to take those trades and make your profit.
To you success and happy trading.
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