How To Trade Forex: The Basics
If you are considering getting involved in currency trading, it is essential that you know the basics of how to trade forex. Even if you plan on using an automated forex trading system (or forex robot) you will need to understand something about what it is doing in order to set it up right.
Forex trading and currency trading mean the same thing. You will be trading world currencies on the foreign exchange market. Forex and FX are simply abbreviations of 'foreign exchange'.
If you do not use a forex robot then you will need some system that will help you sort out whether a country's currency is rising or falling, so that you can decide whether to buy or sell the pair that you are trading. You always have to trade a pair of currencies because you are exchanging one currency for another. A popular pair for beginners is EUR/USD, the euro and the US dollar.
Currency trading systems are usually based on technical analysis, which means watching price movements and indicators on charts. Most brokers supply this kind of data or if you do not get everything that you want from your broker, you can sign up to one of the many online forex charting services.
You can get started for a very low initial investment these days. Competition between brokers and the ease of access through the internet has meant that brokers are offering mini and micro forex trading accounts to encourage the smaller investor to get involved.
Costs are generally low too. Most brokers do not charge a fee or commission, but make their money from the difference between the bid and ask prices of the currency pair (that is, the different prices depending whether you are buying or selling). This is good for small investors who can make many small trades without paying any fixed fees. This is one of the reasons why more and more private individuals are getting into forex and wanting to know how to trade currency.
The forex market is open 24 hours a day from Sunday evening to Friday evening (or Monday morning to Saturday morning if you are in Australia or Asia). This can be very convenient if you have a day job and want to get into trading in the evenings. It is also a huge market, with deals totalling almost $4 trillion a day. Prices move fast and there is a lot of money to be made.
Of course there is also a risk. Like any speculative investment, you may lose more than you make, especially in the beginning. You should be prepared to possibly lose your investment funds so do not trade with money that you need for other purposes.
It is important to stick to a system exactly and keep clear records of your trades. If you do not do this you will be shooting in the dark and the net results could be damaging. You need to be sure of what you are doing and able to look back and see what worked and what did not work.
There are many forex trading systems sold online but remember that you only need one profitable system to make money. It is not a good idea to try to use more than one system, and certainly do not switch from one to another all of the time, because that will not work for you. Being consistent in your trading is the key.
Forex trading is risky, but it can also make you a lot of money. Follow these pointers and you will soon have mastered how to trade currency.
แสดงบทความที่มีป้ายกำกับ Trade FOREX แสดงบทความทั้งหมด
แสดงบทความที่มีป้ายกำกับ Trade FOREX แสดงบทความทั้งหมด
วันพุธที่ 28 ตุลาคม พ.ศ. 2552
วันพฤหัสบดีที่ 3 เมษายน พ.ศ. 2551
What Is The Best Time Of The Day To Trade Forex?
What Is The Best Time Of The Day To Trade Forex?
by James Woolley
The forex markets are open 24 hours a day between Monday and Friday which means that anyone in the world can conveniently trade at some point during the day. However, some times are more volatile and profitable than others.
The most volatile period of the day is between 1.30 and 4.30pm UK time which is around the time that US traders start trading the markets. More significant is the fact that a lot of economic data releases are announced during this period, which can cause dramatic swings and increased volatility in the currency markets, particularly the dollar-related pairs.
However although volatility is good to an extent, it's not necessarily the best time to trade because these announcements can cause wild and unpredictable swings which generally does not equate to profits. The resulting move in the more significant of the data releases will often counteract conventional technical analysis as well making it extremely difficult to make any profits.
The only people to benefit from trading during this period are the tiny minority of news traders who are capable of benefiting from such swings.
For most of us the ideal time to trade is when you get large market moves and trends that are more predictable, conform well to technical analysis, and is during a time when there are no major economic news announcements scheduled.
Luckily such a period does exist and it is basically the start of the European trading session between 8.00 and 12.00 (or you could even say 6.00-12.00 because you often get strong moves from 6.00 onwards).
This is an excellent time to trade because it's the most heavily traded session, so you get decent sized moves, and it's generally free of any market-moving announcements so you can concentrate fully on technical analysis.
Unfortunately not everyone around the world can trade during this time due to time differences and the inconvenience of trading at an awkward time of the day, so for those people the next best time to trade is during the Asian session. The Yen related pairs in particular are the best pairs to trade during the Asian session, as you would imagine, as the other major pairs are extremely quiet during this time of the day.
So in conclusion, the best time of the day to trade the forex markets in my experience is the start of the European trading session where you get large swings and few market-moving announcements to contend with. If you're trading the major currency pairs, you will find that the other times of the day are either too quiet or too volatile, unless you're trading Yen pairs which move strongly during the Asian trading session.
by James Woolley
The forex markets are open 24 hours a day between Monday and Friday which means that anyone in the world can conveniently trade at some point during the day. However, some times are more volatile and profitable than others.
The most volatile period of the day is between 1.30 and 4.30pm UK time which is around the time that US traders start trading the markets. More significant is the fact that a lot of economic data releases are announced during this period, which can cause dramatic swings and increased volatility in the currency markets, particularly the dollar-related pairs.
However although volatility is good to an extent, it's not necessarily the best time to trade because these announcements can cause wild and unpredictable swings which generally does not equate to profits. The resulting move in the more significant of the data releases will often counteract conventional technical analysis as well making it extremely difficult to make any profits.
The only people to benefit from trading during this period are the tiny minority of news traders who are capable of benefiting from such swings.
For most of us the ideal time to trade is when you get large market moves and trends that are more predictable, conform well to technical analysis, and is during a time when there are no major economic news announcements scheduled.
Luckily such a period does exist and it is basically the start of the European trading session between 8.00 and 12.00 (or you could even say 6.00-12.00 because you often get strong moves from 6.00 onwards).
This is an excellent time to trade because it's the most heavily traded session, so you get decent sized moves, and it's generally free of any market-moving announcements so you can concentrate fully on technical analysis.
Unfortunately not everyone around the world can trade during this time due to time differences and the inconvenience of trading at an awkward time of the day, so for those people the next best time to trade is during the Asian session. The Yen related pairs in particular are the best pairs to trade during the Asian session, as you would imagine, as the other major pairs are extremely quiet during this time of the day.
So in conclusion, the best time of the day to trade the forex markets in my experience is the start of the European trading session where you get large swings and few market-moving announcements to contend with. If you're trading the major currency pairs, you will find that the other times of the day are either too quiet or too volatile, unless you're trading Yen pairs which move strongly during the Asian trading session.
วันพฤหัสบดีที่ 20 ธันวาคม พ.ศ. 2550
What! 90 Seconds to Trade FOREX?
What! 90 Seconds to Trade FOREX?
by Joseph Sgro
Calling all FOREX Traders
I know people have spent $2500 buying Forex Profit Pro..and it's good, but we can't all afford it and now it's off the market.
The cost effective option takes 90 seconds to discover the trend, jump on the trade and get support from real traders. You can see how right here.
MarketClub Makes it Easy
No joke MarketClub's system will pay for itself - I know, I'm a trader. You try their system to time your buy and sell and thank me later.
Which Market to Trade
In case you know nothing about the FOREX market here is a snippet to keep in mind when you are contemplating which market to trade.
"This market is the Largest Financial Market in the World"
It is estimated that 3.5 trillion in dollar value is traded per day worldwide. Approximately 5,000 banks, both central and private participate in the FX market worldwide.
Developing Confidence
So it's not a bad market to be trading. The biggest thiong about trading is developing confidence to put your money on the line - I know because I'm a trader too. What has helped me become more confident is I have completed a nuimber of courses and I know I will spend more money in updating my skills.
I know I need to change just like the market changes and I try to keep in tune with what is going on.
Your System
Your trading system is the most important element in giving you confidence. This is the reason MarketClub is the answer if you want to trade without having to buy expensive tools and creating the "wheel". MarketClub has the system, the charting, the data, the support, technical indicators and tools.
Trading is a good path to cash flow and even wealth. It's not all roses - you can lose your money, but you can put your trades on auto and do something else..just don't leave your trade on and go on holidays. You will keep up with the latest by tuning in to THE 10 Simple Rules Ezine blog.
by Joseph Sgro
Calling all FOREX Traders
I know people have spent $2500 buying Forex Profit Pro..and it's good, but we can't all afford it and now it's off the market.
The cost effective option takes 90 seconds to discover the trend, jump on the trade and get support from real traders. You can see how right here.
MarketClub Makes it Easy
No joke MarketClub's system will pay for itself - I know, I'm a trader. You try their system to time your buy and sell and thank me later.
Which Market to Trade
In case you know nothing about the FOREX market here is a snippet to keep in mind when you are contemplating which market to trade.
"This market is the Largest Financial Market in the World"
It is estimated that 3.5 trillion in dollar value is traded per day worldwide. Approximately 5,000 banks, both central and private participate in the FX market worldwide.
Developing Confidence
So it's not a bad market to be trading. The biggest thiong about trading is developing confidence to put your money on the line - I know because I'm a trader too. What has helped me become more confident is I have completed a nuimber of courses and I know I will spend more money in updating my skills.
I know I need to change just like the market changes and I try to keep in tune with what is going on.
Your System
Your trading system is the most important element in giving you confidence. This is the reason MarketClub is the answer if you want to trade without having to buy expensive tools and creating the "wheel". MarketClub has the system, the charting, the data, the support, technical indicators and tools.
Trading is a good path to cash flow and even wealth. It's not all roses - you can lose your money, but you can put your trades on auto and do something else..just don't leave your trade on and go on holidays. You will keep up with the latest by tuning in to THE 10 Simple Rules Ezine blog.
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