Currency Trading - The Rewards Are Great But Are You Prepared?

Currency Trading - The Rewards Are Great But Are You Prepared?

Currency trading is quickly gaining ground as one of the most popular ways to earn money online and it is without doubt a very profitable business. However few traders are familiar with all the details and complications of currency Trading and most ignore a very important aspect: risk. Forex gives you a chance to invest your money successfully, but that is not enough! You have to be careful because Forex trading can be both an profitable home business or it can be a source of a major headache.

Why is Currency trading considered risky?

- Every investment bears risk. Its written in the fine print of CFTC every document, of every brochure of every financial institution managing people's investments, including mutual fund companies, credit unions, major commercial banks, etc.

- The currency market in general is actually quite stable. Compared to the stock market the Forex market is way more stable. Also there is no insider trading and the news come out at well known times. However the volumes traded on the Forex market makes even the smallest change in the rates seem significant.

- Fluctuations in currency prices, interest rate differentials between two different countries, large volume transactions and limited flow of exotic currencies will all have certain effect on the market.

- Large profits and minimal losses are impossible to predict with 100% accuracy.

- The currency trading market has great winning potential, but it also has a potential for losses.

- Poor money management (no Stop Loss orders) and emotional baggage are most of the time a cause of loss. Use facts, not hope or fear, when trading.

- Huge leverage is provided to traders. If not managed properly, this leads to dangerous positions that expose the account to unjustified risk.

- Lack of money management or no general trading plan are the mistakes that traders make sometimes.

- Choosing an unreliable or dishonest broker can lead to problems as they can widen spreads during volatile market conditions affecting the retail trader. They can even refuse to trade sometimes. Choosing a reliable broker is essential to your success.

- Scams were very common years ago when dealing with a broker. However, one can be confident in company one is working with by checking their background and the Institutions they are associated with (large banks, important insurance companies).

Don't be discouraged! Forex isn't all about risks. And have this in mind: If Currency trading isn't profitable then why are so many financial investors, banks, international institutions and important players that obtain huge amounts of cash by simply turning their own money into other currencies?

And don't start trading in fear! You will loose this way. You just have to keep in mind all possibilities and avoid unwanted situations only you can get yourself into. All Currency traders have to be very well informed about their activity. They have to know technical analysis and how to read and interpret charts, they have to develop effective strategies and minimize risk. The financial exposure has to be limited and this can be done in many ways.

So, educate yourself, be prudent, never risk more than you can afford and always trade with a stop Loss.

Forex Autopilot System Review - Currency Trading

Forex Autopilot System Review - Currency Trading

by Don Dang

My Experience With Forex Autopilot

If you plan on using forex autopilot I recommend you have BASIC knowledge of how the forex market works because you will need to configure settings such as stop loss, take profit, trailing stop, etc. The forex autopilot system has been profitable for me on my mini account of $500. It was the first account I have ever opened, and the very next morning the robot made me $78. Forex Autopilot has a 92% winning trade rate.

What is the Forex Autopilot System?

The Forex Autopilot System is a software that trades the forex market for you! Simply download and install the program, configure it to your settings, and that is it! Money on autopilot!

How Does it Work?

The trades at low risk areas in the market. You can configure it to trade in high or low risk situations by configuring the S/L and T/P. Of course your trading activities will still involve some form of risks, but you can expect realistic results of 5-10% returns with this system each and every month!

How to install it?

Once you download it there is a FAQ and step by step guide on how to install it. Also there is video tutorials that show you exactly what to do. You will need the metatrader 4 platform to utilize the bot. Mac users will need to install windows via bootcamp or VMware.

How many F.A.P.S trades are winning trades?

The Forex Autopilot System Has a winning trade rate of 96%.

What Currency Pair Should I use Forex Autopilot on?

These are the setting I have found very profitable...EUR/USD Pair 1M Timeframe.

How Should I Configure the Stop Loss and Take Profit?

These are the settings I use on my live account. Take Profit -20 points Stop Loss - 30 points.

Currency Trading With Great Tips

Currency Trading With Great Tips

by Charles Nash

Currency trading with great tips can help you push your trading from mediocre to great. This is an exciting market to get into where you get to work from the comfort of your own home and generate an income solely by yourself. That may scare some, but it is liberating to others.
How important is the news?

I think it is very important, but you don't have to look at it that way. The way I view it is that it is free information. I get up in the morning, turn on the television and watch it while I drink my coffee. It's like my free personal consultant.

You need to pay particular attention to the news that is talking about the economy or will have an affect on the economy. The most important piece of news is an interest rate change by the central bank in your country. This basically signifies that the supply of money in the economy will change, which means the price of currency will change. You will also want to watch out for news on GDP, consumer spending and unemployment.

When should I trade?

I think the best time to trade is during the peak hours. This means there is a lot of people trading and a lot of money moving around. The reason to trade at this time is to ensure that market forces are in control and no one trader can manipulate the market. At this time a big bank could make a huge trade, and the affects would be minor because so many other people are trading. If you look at an off-peak time, this same bank could cause a currency to go in a completely opposite direction.

What software should I use?

The best software I've come across is Forex Killer. It is able to find profitable trends, so you can make more profitable trades. It also has automation features that allow the software to look after trades while you're away from the computer. It's like having a second employee that works 24hrs a day. It is an essential tool for your toolbox.

Make Money Currency Trading

Make Money Currency Trading

by Charles Nash

I'm going to help you make money currency trading with my most profitable advice I try to apply on a daily basis. This is a perfect opportunity for all those people out there looking to develop a second income from the comfort of their own home.
My first piece of advice is to watch the news. The most important news to watch would be the morning news because all the important economic news comes out at scheduled times in the morning. This news is very important because economic stability of a country determines the quality of the price of currency. If the quality of the economy goes down, the price of the currency will go down internationally. This is just the way it goes. The last thing you want to do is make a trade and in the middle of it, the Federal Reserve releases some information and your "good trade" turns into a big loss because you missed the news. You want to pay attention to any news relating to the economy and how well it is doing. This includes GDP, unemployment rates, central bank interest rates, consumer spending, etc. Typically if these numbers are good, than it is good for the currency. If they're bad, they're bad for the currency.

The next thing I want to discuss is not what you trade, but when you trade. There are basically two different times you can trade, high volume and low volume. I recommend starting in the high volume time because this is when everyone else is trading. This leads to a more predictable outcome since you can be sure market forces are in control. If you look at low volume times, a large bank could make a big trade which could drastically change the direction of a currency. At this time you would be at the mercy of a bank.

Lastly, you'll want to get Forex Killer for your computer, so you can better handle trades and become more profitable. This software will seek out and find the most profitable trends out there, so you can profit from them.

currency trading forex trading made easy

currency trading forex trading made easy

by Martin Venuir

Trading forex is often a difficult field in which to make money. Of course, like everything, there are winners and also losers. The losers end up losing thousands of dollars and crying to mommy while the winners end up winning big and moving onward and upward.

Nevertheless, it is in general agreement that if you really want to succeed in anything, you have to have the knowledge to do so. Trading forex is just like anything else in life, and I don't think that you will ever succeed unless you try.

These are my easy tips on how to get started in this lucrative opportunity:

-If you are a beginner, start with a demonstration account. This way, you get to learn the in's and out's of forex trading, and how it works.

-Start with a minimal amount. These days, a forex account can be established for as little as $250 in trading money.

-Be proactive in what you are doing and always continue to learn from your mistakes. Success doesn't come overnight, and you just cant possibly, realistically expect huge gains after one night. It simply doesn't happen.

-Make sure your equipment is reliable. The internet or your pc going out during a critical trade could cost you everything.

-Don't fall in love with anything! Just because a trade seems good time and time again, it doesn't mean anything. Keep on your toes and continue to watch.

-Contrary to the above, forex is considered a consistent market, but don't let that fool you!

-There is big money to be made, but always have a trading plan to stick to. Never shy away from your plan because it seems you will "profit" more. The safe route is always best.

So, those are some basic tips on how to make money using forex. I hope that you really take it to heart, or else you may find yourself losing tons of cash, fast. If you are really struggling, or want a quick start in forex trading, I recommend that you use Marcus Leary's software Forex Autopilot. This software analyzes the trends and also has the ability to trade automatically for you to ensure you get big profits and stick to your gameplan. Either way, forex is a learning process and you should treat it as such.

Derivatives of Currency Trading and the Forex

Derivatives of Currency Trading and the Forex

by Andrew Daigle

Derivatives of the Forex trading system are spot trading, futures trading, forwards trading, options trading and swap trades. Many inexperienced Forex traders tend to focus on spot trading. Spot transactions are over-the-counter transactions, handled outside of an organized exchange.
Spot Trading - Spot trading in the Forex trading system is what is termed Forex. A Forex currency trade is a simple simultaneous transaction that involves the exchange of one currency for another. Forex currency trades may be settled within 2 days, except in Canada where exchanges may be settled within one-day.

There are two parties and two positions with any trade. The party who delivers a commodity holds a short position. The party who receives the delivered commodity holds a long position. In other words, the seller holds the short position and the buyer holds the long position. There are no restrictions and limitations in Forex spot trading as long as there are parties willing to a trade and liquidity in the currencies being traded. Spot trades incur a transaction charge per trade called a margin or spread. A margin is calculated as the difference between the current bid price and the asking price.

Forwards Trading - A forwards trade is a trade in which the traded commodity has a date of delivery some time in the future. Typically, a forward contract may have a date of delivery one, two, three, six or twelve months into the future. Traders use forwards to take advantage of interest rate differences between countries and this difference is usually factored into the cost of a forwards trade. The value of a forward is determined by the difference in interest rates offered by the countries whose currency is involved in the trade. The cost of a forward may be higher or lower than the current spot price of a currency. When a higher price is charged for a forward, it is called a premium while a lower price is a discount.

Futures Trading - A futures trade is similar to a forward trade where a buyer and seller trade currencies for a predetermined price, at some time in the future. The difference between a futures and forward trade is that futures are traded on a regulated exchange and forwards are not. Futures trades incur round-turn commissions that are generally higher than the margins required for spot trading. You must make a deposit on futures to serve as a margin or bond for the trade. If market events indicate that a currency will increase in value over the term of a future, a lower price will have more worth when it is traded. The difference between the price for a future and the market price of currency is added or subtracted from the margin value. You must replenish any loss in margin in order to continue to hold a position in the trade.

Options Trading - Options are a form of currency trading where you are given the option to buy a specific amount of currency before a specified date. Options differ form forwards and futures because options give you the right to buy or not buy. Generally, traders will seek options when there is an indication of stability in currency exchange rates while speculators may assume the risk in hopes of making a profit. As a buyer, you are required to pay a premium for options and that premium is forfeited if you fail to exercise the option. Premium prices are established based upon how likely the market perceives that the option will be exercised. Premiums may be calculated as the difference between the current spot price and a future strike price or they may be involve more complex calculations, based on market conditions and the timeframe before the expiry date.

Options include both a call and a put. The right to buy currency is a call option while the right to sell currency is put option. The option to buy US dollars and sell Japanese yen, for example, is a yen call and dollar put. The price that the buyer agrees to pay is called the strike price or exercise price and the amount of currency that may be bought or sold is called the principal. Options may be purchased on an exchange or over-the-counter and then bought and resold. US style options are purchased on an exchange and have a strike price, expiry date and contract size. Options bought over-the-counter are bought in interbank. Options offered in the interbank market are usually European style options where the terms of the contract are negotiated between the seller and buyer.

Swaps - A swap is a combination of a spot and forwards trade. A swap involves the trade of currency on a specified date and an agreement to trade it back at a later date. A swap provides you with an alternative to borrowing foreign currency. If you need liquidity in a currency, you may swap for the needed currency. This involves a spot transaction to initiate a trade and a forward transaction to buy back the currency in the future. Large banks and corporations tend to favor swaps. Individual investors rarely engage in swaps.

Beginner Forex Trading - What Every Beginner Should Know About Currency Trading

Beginner Forex Trading - What Every Beginner Should Know About Currency Trading

by Harold Hsu

Forex trading is a very appealing way to make money online. Trillions of dollars exchange hands every day, and entire fortunes are made and lost literally overnight.
Part of the attractiveness of the Forex market is the ability for retail traders to trade on margin. Margin trading essentially involves the ability to trade a large sum of currency using only a fraction of your own money.

For example, when trading on a margin of 1:100, you can control $10,000 worth of currency using only $100 of your own money. This is what lures many amateur traders to take part in this multi-trillion dollar market - the potential to make a lot of money, by risking only a little of your own.

Understanding The Risks Of Margin Trading

Although margin trading is indeed a great way to make big bucks, beginner traders would do well do remember that it's actually a double-edged sword - it's just as easy to lose money as it is to win. So even though one can make potentially $300 in an hour, it's also equally likely for that person to lose the same amount within an hour (or even in a shorter time period!).

There Is No Central Governing Authority

The next thing beginner traders should know is that there is no official governing authority in the Forex trading industry. What this means is that unlike other financial trading exchanges where there is centralized control (such as the SEC for the stock market), the currency exchange market is not regulated by any organization at all.

This poses an extra risk for retail traders as it leaves the potential for scam 'brokers' to set up shop, take your money and basically run away with it.

That's why retail traders will have to be extra careful when choosing a broker to work with. Where possible, do try to find reputable brokers such as big banks or other well-established trading houses.

You definitely wouldn't want to risk having your money cheated by scammers who are looking to make a quick buck at your expense.

Forex Training Course: Currency Trading Can Be Fun And Profitable

Forex Training Course: Currency Trading Can Be Fun And Profitable

by Star Smith

Online forex trading is one of the hottest investment opportunities around simply due to the fact that it's a market where people can get very rich in a short amount of time. While standard exchanges (like the New York Stock Market) are open for specific periods of time, the global forex exchange is hopping with activity around the clock.

This makes trading available to most people who have to work a full-time job and juggle other responsibilities. Trades can be made at the crack of dawn, during lunch and even in the midnight hour. How's that for flexibility?

Foreign currency exchange trading has attracted this kind of buzz, because of all those stories making the rounds about people literally becoming wealthy after making a few lucky trades. I mean, the thought of having thousands of dollars flooding into your bank account is enough to make anybody giddy.

Can the average person really make this kind of money in forex?

Sure, you can absolutely make a bundle.

You can do this by learning how to study the currency market and pick out winners. However, you won't make a dime without some serious study on how this market works, or before getting lots of practice in making trades.

Was that a buzz kill?

Hope not. I'm just splashing a little cold water in your face to keep you from getting overly excited. Listen, the truth is that online forex trading can be compared to gambling in Vegas. Picture having that cash just burning in your hot little hands. You're sitting at your computer admiring all those graphs and charts for various currencies: dollar, yen, euro, etc.

Even though you just recently learned what forex is, you're practically jumping out of your chair looking to make a trade on that hot tip you got from a forex insider. Yeah, that money is just burning in your pocket, and you figure the rent and bills can wait for now, because you've got a sure winner - you're gonna make big moolah!

Okay, this is where excited new traders bet the rent money and then . . . lose every single penny.

Ouch. That's gotta hurt.

Meanwhile, experienced traders are happily counting the profits they made on that hot tip. The new traders are big losers because they didn't take the time to learn how to make wise trades in this very complex market. Yes, forex is exciting, but you can easily lose your life savings with too many bad trades.

A common mistake that many newbies make is that they invest for emotional reasons - fun, excitement, greed, desperation or even revenge. One thing you need to learn right now before you go any further is that you should NEVER make one single trade based on pure emotion. If you do, you might as well be sitting at the slot machine, endlessly popping in money, hoping that you'll hit that elusive jackpot.

The best traders are cool as a cucumber when making decisions on what to put their money on.

So, of course, forex online trading is going to be very profitable for those who learn how to study the market and make smart and informed decisions based on good analysis and judgment. This will get you a lot further than throwing good money away on a hunch. You also need to use common sense. There are plenty of stories about people who have lost their life savings because they made bad decisions and bad trades.

Most successful forex traders risk no more than 2-3% of their trading account - even on a good tip. You see the way to get rich in forex is to learn how to make good trades, learn when to get out and take your profits, then use those profits to make more trades, and so on and so on. This way, you are building wealth the smart way and you won't be gambling with money you need for rent, food and expenses.

Aha!

That's how they do it. A good forex training course will teach you how to make successful trades the slow and easy way. The learning curve is steep in currency trading and you don't need to rush. In fact, it's highly recommended that you use a demo trading account while you are learning forex so that you can see exactly what you are doing right when you make money, as well as, what you are doing wrong when you lose money - without risking a dime.

This learning experience will be invaluable to you, because when you do start using real money to make trades, you'll know what you're doing and will have a cool head and steady hand. If you choose to follow the example of the 10% of successful forex investors, you will soon find yourself basking in the glow of a new lifestyle.

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.

Currency Trading - A Simple Tip for Huge Profits

Currency Trading - A Simple Tip for Huge Profits

by kelly Price

Here I am going to give you a simple tip that can make huge gains. It's simple to understand easy to use and easy to apply and can and does make big profits.

To show how effective this tip is I have demonstrated it live by predicting the euro would go no higher than 1.50 (it fell from this level) said it would have a target of 1.44 (it traded below this level) and then indicated a rally to 1.48 was on the cards and its trading just below this level.

Does that make me a guru or an expert? Of course not all I am doing is using the news to indicate overbought / oversold areas and anyone can do it

I am writing this on Thursday Dec 3rd and now looking for the euro to fall again.

This may seem odd if you read the news - most are turning bearish on the dollar based upon:

A run of poor U.S. data, including Wednesday's contraction in the manufacturing sector for December. To add to the dollars woes we have crude oil up at $100 a barrel.

This has seen dealers to fully price in a 25 basis point cut in the Federal Reserve's benchmark interest rate at the end of the month, and a one-in-five chance of a bigger 50 basis point move.

So the dollar is a banker to crash out of sight then - No and for the reason why you need to understand this equation:

Supply and demand + Investor perception of them = Price

The supply and demand fundamentals are there for all to see but we all as humans draw conclusions based upon our own view. Humans tend to push prices to far away from fair value and when they do this and you can spot it you can look for a contrary trade.

Will the fed cut by 25bps maybe but that's priced in, by 50bps? Unlikely, as they have already made their views clear on inflation. Is the US heading for recession as many think? Not yet, GDP is robust and the recent data indicates a sluggish economy not one in recession so prices look like they have run ahead of the fundamentals and the dollar could rally.

It's a fact that the majority of traders lose, so being in the minority is not a bad place to be.

All the above is priced in and while the price may run a bit higher a selling opportunity is coming in the euro against the dollar.

This doesn't happen just in currencies check out crude oil 15% in a short space of time is this anything to do with supply and demand its investor psychology at work and crude cannot hold these levels based upon supply and demand.

Of course humans are un predictable and you never know how far they can drive prices and this is where you need to look at your forex charts momentum is waning in both crude and the euro and its time to watch for a turn.

The important point is to wait for confirmation and when a top is confirmed shorts can go in but you need to be patient.

Our view is the euro will probably top around here and crude oil is the same tomorrow could be the day it happens. Wait on the sidelines and wait if the signals don't come don't jump, if they do then you can hit some nice contrary trades.

There's an old saying:

" if you can hold your head when everyone else is losing theirs you probably haven't heard the news"

In this case you have and you're holding your head and seeing an opportunity for a profit.