Forex Market Vs Stock Market - The Difference
The FX market is likewise known as the foreign exchange marketplace. Trading can take place between two countries who have unique kinds of money they lay the groundwork for the FX market as well as the background for the the trading in this market The FX market is over 30 years old, set up in the 1970's and is one that is not based on any one business concern or speculating in any one business, but the trading and selling of monetary systems.
The main difference between the fx market and the stock market that difference is the amount of trading that goes on here an amazing two trillion dollars or more can be traded each day A much higher amount than the money traded on any given country's stock market. The forex market is one that involves one countries financial institutions as well as government institutions and those similar types of institutions from other countries.
What is traded, bought and sold on the forex market are easily liquidated which means they can be turned into cash fast often times it is cash already From one countries currency to another the cash that is available in the fx market is something that can be arranged for any investor regardless of what country they are in.
The most prevalent difference between the fx market and the stock market the fx market is global. Where as the stock market only happens in one country due to dealing with the businesses and products in that country the foreign exchange market goes beyond that and involves any and all countries.
The business day for the stock market typically this is going to follow the business day, so the stock market is closed on bank holidays and weekends. Whereas the FX market is open 24 hours a day because countries from all over the world are involved in trading buying and selling across different time zones. When one market opens other countries are closing their markets which makes this an ongoing process of how the foreign market training happens
The stock market in any country is going to be based on only that countries currency, so the French francs, and the French stock market, so the Pakistani rupee and that Pakistan stock market or the United States stock market and the dollar. However, in the forex market, because you are involved with different countries and multiple currencies. You will find references to a variety of currencies, making this the biggest difference between the stock market and the forex market.
แสดงบทความที่มีป้ายกำกับ forex market แสดงบทความทั้งหมด
แสดงบทความที่มีป้ายกำกับ forex market แสดงบทความทั้งหมด
วันพฤหัสบดีที่ 17 กันยายน พ.ศ. 2552
วันอาทิตย์ที่ 13 กันยายน พ.ศ. 2552
Covering the basics of the forex market
Covering the basics of the forex market
Covering the basics of the forex market
The foreign exchange, or forex, market is relatively young, having begun in the early 1970s after the United States dropped the gold standard and national currencies started to fluctuate widely. For about 30 years prior to that, most nations had agreed to keep their currency values stable in relation to the U.S. dollar, making a forex market unnecessary. With that no longer the case, banks quickly realized that a profit could be made in "buying" currency when it was devalued and "selling" it after it strengthened, just like any other commodity.
Today, the forex market handles about $1.9 trillion in transactions every day, and it runs 24 hours a day, five days a week. (With nations around the world involved, it's always daytime somewhere.) The most traded currencies are the U.S. dollar, the euro, Japanese yen, British pound, Swiss franc and Australian dollar.
The forex market is overwhelmingly dominated by international banks, government banks, investment banks, corporations, and hedge funds. In fact, individual traders account for only about 2 percent of the market. Nonetheless, a lot of people do try their hand at it, with varying degrees of success.
In the forex market, transactions are always handled in pairs: You buy one currency and sell another one. The idea is to make a trade when you believe the currency you're buying is going to go up in value compared to the one you're selling. Then, if it turns out your prediction was correct, you do another trade in the reverse direction -- selling the currency you originally bought and buying the one you sold -- in order to reap the profits.
For example, let's say the market reports this: GBP/EUR 1.2200. That means the cost of buying one British pound is 1.22 euros. If you believed that course was going to change, and the euro was going to become more valuable than the pound, you might sell 100,000 pounds, buy 100,000 euros, and wait. Then let's say a few weeks later, the exchange rate fluctuates to this: EUR/GBP 1.3100. Sure enough, the euro is now worth 1.31 pounds, a profit of 0.11 per unit.
The forex market is vast and daunting and mostly inhabited by giant organizations. But it can be navigated by individuals who have studied the finer points and who want to take a risk on something potential profitable. And since the whole world uses money, the trading of that money is always going to be a major force in the financial world.
Covering the basics of the forex market
The foreign exchange, or forex, market is relatively young, having begun in the early 1970s after the United States dropped the gold standard and national currencies started to fluctuate widely. For about 30 years prior to that, most nations had agreed to keep their currency values stable in relation to the U.S. dollar, making a forex market unnecessary. With that no longer the case, banks quickly realized that a profit could be made in "buying" currency when it was devalued and "selling" it after it strengthened, just like any other commodity.
Today, the forex market handles about $1.9 trillion in transactions every day, and it runs 24 hours a day, five days a week. (With nations around the world involved, it's always daytime somewhere.) The most traded currencies are the U.S. dollar, the euro, Japanese yen, British pound, Swiss franc and Australian dollar.
The forex market is overwhelmingly dominated by international banks, government banks, investment banks, corporations, and hedge funds. In fact, individual traders account for only about 2 percent of the market. Nonetheless, a lot of people do try their hand at it, with varying degrees of success.
In the forex market, transactions are always handled in pairs: You buy one currency and sell another one. The idea is to make a trade when you believe the currency you're buying is going to go up in value compared to the one you're selling. Then, if it turns out your prediction was correct, you do another trade in the reverse direction -- selling the currency you originally bought and buying the one you sold -- in order to reap the profits.
For example, let's say the market reports this: GBP/EUR 1.2200. That means the cost of buying one British pound is 1.22 euros. If you believed that course was going to change, and the euro was going to become more valuable than the pound, you might sell 100,000 pounds, buy 100,000 euros, and wait. Then let's say a few weeks later, the exchange rate fluctuates to this: EUR/GBP 1.3100. Sure enough, the euro is now worth 1.31 pounds, a profit of 0.11 per unit.
The forex market is vast and daunting and mostly inhabited by giant organizations. But it can be navigated by individuals who have studied the finer points and who want to take a risk on something potential profitable. And since the whole world uses money, the trading of that money is always going to be a major force in the financial world.
วันอังคารที่ 11 สิงหาคม พ.ศ. 2552
Is The US Dollar Headed For A Reversal
Is The US Dollar Headed For A Reversal
Traders in the Forex market are currently short the dollar right now but I believe this could be a big mistake. I understand this is a completely contrarian view and that the outlook for the dollar is lousy. However, I have 5 reasons why I think the dollar is headed for a reversal and that this is the perfect time to go long the greenback.
1. What good is a strong Euro? I believe a strong Euro will do more damage to Europe than a weak dollar will hurt the U.S. Recently, our weak greenback has been beneficial in two different ways. First by boosting exports and discouraging imports which provides a shot in the arm for our weak economy; not good for the Euro. Second, it helps shrink our trade deposit in goods and services which in turn slows the endless flow of dollars abroad; not good for the Euro.
2. Is there a currency that can replace the dollar as the world's reserve currency? To this I have to say... into what? Recently China suggested it would diversify away from the dollar to a likely candidate the Euro. However, the Euro doesn't have enough liquidity to handle the demand. It is still an experimental currency that not one government can invest in with total faith. Also, with more than two-thirds of foreign reserves in dollars, it would most likely take a decade to replace the dollar as the world's reserve currency.
3. Is there anyone a weak dollar helps in the long run? Even though many countries somewhat dislike Americans, they dislike a really weak dollar even more. Why? A weak dollar makes U.S. exports attractive and makes non-friendly countries patronize that which they despise. Their manufacturing industries suffer and their unemployment rises. So don't expect foreign central banks to fight a moderately stronger dollar or even assist it when the reversal begins.
4. What about the stock market? The stock market loves a strong dollar because a weak dollar is NOT beneficial to the stock market. Historically, the average rate of return of the S&P 500 - during times when the dollar was strong - was a gain of 86.6% which is over five times the average return of 16.4% when the dollar was weak.
5. When is the best time to reverse positions in a market? The best time to take a contrarian position in a market is when the most unlikely and unsophisticated are speculating. Give me a break... when corner store owners and housewives start trying to earn extra income by speculating in the Forex, something they know nothing about, we're near a bottom. The smart money knows that and now you do to.
Yes, the dollar will get strong again; at least moderately. In the short term there will probably be more pressure to the downside. However, a turn is coming and when it does the change will come swiftly!
Traders in the Forex market are currently short the dollar right now but I believe this could be a big mistake. I understand this is a completely contrarian view and that the outlook for the dollar is lousy. However, I have 5 reasons why I think the dollar is headed for a reversal and that this is the perfect time to go long the greenback.
1. What good is a strong Euro? I believe a strong Euro will do more damage to Europe than a weak dollar will hurt the U.S. Recently, our weak greenback has been beneficial in two different ways. First by boosting exports and discouraging imports which provides a shot in the arm for our weak economy; not good for the Euro. Second, it helps shrink our trade deposit in goods and services which in turn slows the endless flow of dollars abroad; not good for the Euro.
2. Is there a currency that can replace the dollar as the world's reserve currency? To this I have to say... into what? Recently China suggested it would diversify away from the dollar to a likely candidate the Euro. However, the Euro doesn't have enough liquidity to handle the demand. It is still an experimental currency that not one government can invest in with total faith. Also, with more than two-thirds of foreign reserves in dollars, it would most likely take a decade to replace the dollar as the world's reserve currency.
3. Is there anyone a weak dollar helps in the long run? Even though many countries somewhat dislike Americans, they dislike a really weak dollar even more. Why? A weak dollar makes U.S. exports attractive and makes non-friendly countries patronize that which they despise. Their manufacturing industries suffer and their unemployment rises. So don't expect foreign central banks to fight a moderately stronger dollar or even assist it when the reversal begins.
4. What about the stock market? The stock market loves a strong dollar because a weak dollar is NOT beneficial to the stock market. Historically, the average rate of return of the S&P 500 - during times when the dollar was strong - was a gain of 86.6% which is over five times the average return of 16.4% when the dollar was weak.
5. When is the best time to reverse positions in a market? The best time to take a contrarian position in a market is when the most unlikely and unsophisticated are speculating. Give me a break... when corner store owners and housewives start trying to earn extra income by speculating in the Forex, something they know nothing about, we're near a bottom. The smart money knows that and now you do to.
Yes, the dollar will get strong again; at least moderately. In the short term there will probably be more pressure to the downside. However, a turn is coming and when it does the change will come swiftly!
วันจันทร์ที่ 9 มีนาคม พ.ศ. 2552
Currency Trading - 7 Reasons to Trade the Forex Market
Currency Trading - 7 Reasons to Trade the Forex Market
So you are looking for a smart investment for your money or a promising new career… Forex trading may be just the thing for you. Its benefits are many and its convenience and potential for success are great advantages. In so many situations, people with substantial incomes are so tied up they never have a chance to enjoy their hard-earned money. And those that have enough time just don't have enough money. With Forex trading, you don't have to give up your life and your interests to earn success. Money is a means of trading. There is no miraculous way to suddenly acquire it. The only way to obtain it is to trade something for it. So what would you say if I told you that there is a market where millions of people want to buy from you and are willing to trade when you wanted? Is it almost too good to be true? Trading in the Forex market, you no longer have to be constantly worrying about competition taking over, appeasing disgruntled customers, or any money collection issues. Another benefit is that you don't have to have lots of years or experience under your belt. You can just take a good, thorough training course, and you are ready to go. If you're not convinced already, I've outlined 7 solid reasons to trade Forex: 1) The Forex market is open 24 hours a day, 7 days a week. And as long as you have a computer and internet, you can trade it anywhere around the world! This way, you can trade in your spare time and not waste your day behind a desk in an office. 2) The risks are low. If you make a mistake and suffer a loss, it will not cost you your business and your life. The losses are low and easy to weather and move on from. 3) You can succeed in any circumstances. Even when the market has its ups and downs as all markets will, you don't have to worry because it won't hurt you. As a trader, you will have the potential and the ability to make money whatever happens. 4) Leverage is great. With the small amount of only $1,000, you can trade up to $10,000. Because buying and selling is so easy in the Forex market, many brokers will leverage up to 200 times. That means that with only $100, you can trade 200,000 units of currency. With Forex, you can make the most of the smallest bit of capital. 5) Predicting the results of your decisions is easy. Currency prices fluctuate in reasonable, predictable, and foreseeable patterns that can be evaluated through Technical Analysis. This will help you greatly in making smart decisions and avoiding disasters. 6) Your potential has no limit. Forex is the largest market in the world, with a daily trading average of over 1.5 trillion. It makes the futures market and the equity market look tiny with their averages of 30 and 50 billion daily. 7) The market is quick. This is more important than you think. It means that you can manage your account and act on orders and decisions instantaneously, instead of wasting time waiting. Overall, the Forex market is greatly efficient, convenient, safe, and promising. It is one of the smartest investment opportunities available.
So you are looking for a smart investment for your money or a promising new career… Forex trading may be just the thing for you. Its benefits are many and its convenience and potential for success are great advantages. In so many situations, people with substantial incomes are so tied up they never have a chance to enjoy their hard-earned money. And those that have enough time just don't have enough money. With Forex trading, you don't have to give up your life and your interests to earn success. Money is a means of trading. There is no miraculous way to suddenly acquire it. The only way to obtain it is to trade something for it. So what would you say if I told you that there is a market where millions of people want to buy from you and are willing to trade when you wanted? Is it almost too good to be true? Trading in the Forex market, you no longer have to be constantly worrying about competition taking over, appeasing disgruntled customers, or any money collection issues. Another benefit is that you don't have to have lots of years or experience under your belt. You can just take a good, thorough training course, and you are ready to go. If you're not convinced already, I've outlined 7 solid reasons to trade Forex: 1) The Forex market is open 24 hours a day, 7 days a week. And as long as you have a computer and internet, you can trade it anywhere around the world! This way, you can trade in your spare time and not waste your day behind a desk in an office. 2) The risks are low. If you make a mistake and suffer a loss, it will not cost you your business and your life. The losses are low and easy to weather and move on from. 3) You can succeed in any circumstances. Even when the market has its ups and downs as all markets will, you don't have to worry because it won't hurt you. As a trader, you will have the potential and the ability to make money whatever happens. 4) Leverage is great. With the small amount of only $1,000, you can trade up to $10,000. Because buying and selling is so easy in the Forex market, many brokers will leverage up to 200 times. That means that with only $100, you can trade 200,000 units of currency. With Forex, you can make the most of the smallest bit of capital. 5) Predicting the results of your decisions is easy. Currency prices fluctuate in reasonable, predictable, and foreseeable patterns that can be evaluated through Technical Analysis. This will help you greatly in making smart decisions and avoiding disasters. 6) Your potential has no limit. Forex is the largest market in the world, with a daily trading average of over 1.5 trillion. It makes the futures market and the equity market look tiny with their averages of 30 and 50 billion daily. 7) The market is quick. This is more important than you think. It means that you can manage your account and act on orders and decisions instantaneously, instead of wasting time waiting. Overall, the Forex market is greatly efficient, convenient, safe, and promising. It is one of the smartest investment opportunities available.
วันเสาร์ที่ 14 กุมภาพันธ์ พ.ศ. 2552
Forex: Benefits Of Trading The Forex Market
Forex: Benefits Of Trading The Forex Market
Trading the Forex bazaar has become actual accepted in the endure years. Why is it that traders about the apple see the Forex bazaar as an investment opportunity? We will try to acknowledgment this catechism in this article. Aswell we will altercate some differences amid the Forex market, the stocks bazaar and the futures market.
Some of the allowances of trading the Forex bazaar are:
Superior liquidity.
Liquidity is what absolutely makes the Forex bazaar altered from added markets. The Forex bazaar is by far the a lot of aqueous banking bazaar in the apple with about 2 abundance dollars traded everyday. This ensures amount adherence and bigger barter execution. Acceptance traders to accessible and abutting affairs with ease. Aswell such a amazing aggregate makes it harder to dispense the bazaar in an continued manner.
24hr Market.
This one is aswell one of the greatest advantages of trading Forex. It is an about the bang market, the bazaar opens on Sunday at 3:00 message EST if New Zealand begins operations, and closes on Friday at 5:00 message EST if San Francisco terminates operations. There are affairs in about every time zone, acceptance alive traders to accept at what time to trade.
Leverage trading.
Trading the Forex Bazaar offers a greater affairs ability than abounding added markets. Some Forex brokers action advantage up to 400:1, acceptance traders to accept alone 0.25% in allowance of the absolute investment. For instance, a banker application 100:1 agency that to accept a US$100,000 position, alone US$1,000 are bare on allowance to be able to accessible that position.
Low Transaction costs.
Almost all brokers action agency chargeless trading. The alone amount traders acquire in any transaction is the advance (difference amid the buy and advertise amount of anniversary bill pair). This advance could be as low as 1 pip (the minimum accession in any bill pair) in some pairs.
Low minimum investment.
The Forex bazaar requires beneath basic to alpha trading than any added markets. The antecedent investment could go as low as $300 USD, depending on advantage offered by the broker. This is a abundant advantage back Forex traders are able to accumulate their accident investment to the everyman level.
Specialized trading.
The clamminess of the bazaar allows us to focus on just a few instruments (or bill pairs) as our capital investments (85% of all trading affairs are fabricated on the seven above currencies). Acceptance us to monitor, and at the end get to apperceive anniversary apparatus better.
Trading from anywhere.
If you do a lot of traveling, you can barter from anywhere in the apple just accepting an internet connection.
Some of the a lot of important differences amid the Forex bazaar and added markets are explained below.
Forex bazaar vs. Equity markets
Liquidity
FX market: Near two abundance dollars of circadian volume.
Equity market: About 200 billion on a circadian basis.
Trading hours
FX market: 24hr market, 5.5 canicule a week.
Equity market: Monday through Friday from 8:30 EST to 5:00 EST.
Profit potential
FX market: In both, ascent and falling markets.
Equity market: A lot of traders/investor accumulation alone from ascent markets.
Transaction costs
FX market: Agency chargeless and bound spreads.
Equity market: High Commissions and transaction fees.
Buying power
FX market: Advantage up to 400:1.
Equity market: Advantage from 2:1 to 4:1.
Specialization
FX market: a lot of aggregate (85%) is fabricated on above currencies (USD, EUR, JPY, GBP, CHF, CAD and AUD.)
Equity market: More than 40,000 stocks to accept from.
Forex bazaar vs. Futures market
Liquidity
FX Market: Near two abundance dollars of circadian volume.
Futures market: About 400 billion dollars on a circadian basis.
Transaction costs
FX market: Agency chargeless and bound spreads.
Futures market: High commissions fees.
Margin
FX market: Fixed amount of allowance on every position.
Futures market: Altered levels of allowance on brief positions than day time positions.
Trade execution
FX market: Instantaneous execution.
Futures market: Inconsistent execution.
All this makes the Forex bazaar actual adorable to investors and traders. But I charge to accomplish something clear, although the allowances of trading the Forex bazaar are notorious; it is still difficult to accomplish a acknowledged career trading the Forex market. It requires a lot of education, discipline, charge and patience, as any added market.
Trading the Forex bazaar has become actual accepted in the endure years. Why is it that traders about the apple see the Forex bazaar as an investment opportunity? We will try to acknowledgment this catechism in this article. Aswell we will altercate some differences amid the Forex market, the stocks bazaar and the futures market.
Some of the allowances of trading the Forex bazaar are:
Superior liquidity.
Liquidity is what absolutely makes the Forex bazaar altered from added markets. The Forex bazaar is by far the a lot of aqueous banking bazaar in the apple with about 2 abundance dollars traded everyday. This ensures amount adherence and bigger barter execution. Acceptance traders to accessible and abutting affairs with ease. Aswell such a amazing aggregate makes it harder to dispense the bazaar in an continued manner.
24hr Market.
This one is aswell one of the greatest advantages of trading Forex. It is an about the bang market, the bazaar opens on Sunday at 3:00 message EST if New Zealand begins operations, and closes on Friday at 5:00 message EST if San Francisco terminates operations. There are affairs in about every time zone, acceptance alive traders to accept at what time to trade.
Leverage trading.
Trading the Forex Bazaar offers a greater affairs ability than abounding added markets. Some Forex brokers action advantage up to 400:1, acceptance traders to accept alone 0.25% in allowance of the absolute investment. For instance, a banker application 100:1 agency that to accept a US$100,000 position, alone US$1,000 are bare on allowance to be able to accessible that position.
Low Transaction costs.
Almost all brokers action agency chargeless trading. The alone amount traders acquire in any transaction is the advance (difference amid the buy and advertise amount of anniversary bill pair). This advance could be as low as 1 pip (the minimum accession in any bill pair) in some pairs.
Low minimum investment.
The Forex bazaar requires beneath basic to alpha trading than any added markets. The antecedent investment could go as low as $300 USD, depending on advantage offered by the broker. This is a abundant advantage back Forex traders are able to accumulate their accident investment to the everyman level.
Specialized trading.
The clamminess of the bazaar allows us to focus on just a few instruments (or bill pairs) as our capital investments (85% of all trading affairs are fabricated on the seven above currencies). Acceptance us to monitor, and at the end get to apperceive anniversary apparatus better.
Trading from anywhere.
If you do a lot of traveling, you can barter from anywhere in the apple just accepting an internet connection.
Some of the a lot of important differences amid the Forex bazaar and added markets are explained below.
Forex bazaar vs. Equity markets
Liquidity
FX market: Near two abundance dollars of circadian volume.
Equity market: About 200 billion on a circadian basis.
Trading hours
FX market: 24hr market, 5.5 canicule a week.
Equity market: Monday through Friday from 8:30 EST to 5:00 EST.
Profit potential
FX market: In both, ascent and falling markets.
Equity market: A lot of traders/investor accumulation alone from ascent markets.
Transaction costs
FX market: Agency chargeless and bound spreads.
Equity market: High Commissions and transaction fees.
Buying power
FX market: Advantage up to 400:1.
Equity market: Advantage from 2:1 to 4:1.
Specialization
FX market: a lot of aggregate (85%) is fabricated on above currencies (USD, EUR, JPY, GBP, CHF, CAD and AUD.)
Equity market: More than 40,000 stocks to accept from.
Forex bazaar vs. Futures market
Liquidity
FX Market: Near two abundance dollars of circadian volume.
Futures market: About 400 billion dollars on a circadian basis.
Transaction costs
FX market: Agency chargeless and bound spreads.
Futures market: High commissions fees.
Margin
FX market: Fixed amount of allowance on every position.
Futures market: Altered levels of allowance on brief positions than day time positions.
Trade execution
FX market: Instantaneous execution.
Futures market: Inconsistent execution.
All this makes the Forex bazaar actual adorable to investors and traders. But I charge to accomplish something clear, although the allowances of trading the Forex bazaar are notorious; it is still difficult to accomplish a acknowledged career trading the Forex market. It requires a lot of education, discipline, charge and patience, as any added market.
วันอังคารที่ 1 กรกฎาคม พ.ศ. 2551
Practicing in the Forex Market
Practicing in the Forex Market
by Karen Fairham
So you want to learn about the Forex market, and trading internationally but you are risking your personal wealth if you jump in before knowing all about how trading takes place. Online, you will find many games and simulations while learning the methods involved in forex market trading. The forex markets include countries from around the world, where all countries involved are using different currencies, and when faced against each other are worth more or less than the original valued currencies that are being traded. The forex markets are used to build wealth in, for governments, banks, and brokers, and for many countries.
To get started in learning about forex trading, you will need to locate the forex trading software, education-learning system you want to use. As you find the games, as they are called, you will enter information about yourself, about what you are interested in learning and then you will download software to your computer. In following the 'game', you will learn how to make and lose money in the forex market. This type of game is going to make you more aware of what happens daily, how the markets open and close, and how different the various countries currencies really are.
You will open an online 'account' using the gaming system. You will then be able to read the news, find and compare markets, and you will be able to make 'fake' trades so you can watch your money build or be eaten away in losses. As you learn the system, using it a few times a week, you are going to be more prepared, more educated and you will be ready to use the forex trades to make money. Of course, you may still need the aid of broker or a company to make your transactions happen but you will better understand the process, what will happen, and what calls you may want to make when you read about the news, the markets, and the currencies in other countries.
The forex market is also referred to as the FX market. If you are interested in joining the millions who are making money in the forex markets, you want to ensure you are dealing with a reputable banker or company involved in forex trading. With the spur of interest in the forex markets, there are many types of companies that are popping out on the Internet appearing to be genuine forex trading companies but in reality, they are not. Forex trading can be completed through a broker, a company that deals in the funds, and from within your own country. For example, the US has many regulations and laws regarding forex trading and what companies are permitted to work with the public dealing with international trading and markets.
by Karen Fairham
So you want to learn about the Forex market, and trading internationally but you are risking your personal wealth if you jump in before knowing all about how trading takes place. Online, you will find many games and simulations while learning the methods involved in forex market trading. The forex markets include countries from around the world, where all countries involved are using different currencies, and when faced against each other are worth more or less than the original valued currencies that are being traded. The forex markets are used to build wealth in, for governments, banks, and brokers, and for many countries.
To get started in learning about forex trading, you will need to locate the forex trading software, education-learning system you want to use. As you find the games, as they are called, you will enter information about yourself, about what you are interested in learning and then you will download software to your computer. In following the 'game', you will learn how to make and lose money in the forex market. This type of game is going to make you more aware of what happens daily, how the markets open and close, and how different the various countries currencies really are.
You will open an online 'account' using the gaming system. You will then be able to read the news, find and compare markets, and you will be able to make 'fake' trades so you can watch your money build or be eaten away in losses. As you learn the system, using it a few times a week, you are going to be more prepared, more educated and you will be ready to use the forex trades to make money. Of course, you may still need the aid of broker or a company to make your transactions happen but you will better understand the process, what will happen, and what calls you may want to make when you read about the news, the markets, and the currencies in other countries.
The forex market is also referred to as the FX market. If you are interested in joining the millions who are making money in the forex markets, you want to ensure you are dealing with a reputable banker or company involved in forex trading. With the spur of interest in the forex markets, there are many types of companies that are popping out on the Internet appearing to be genuine forex trading companies but in reality, they are not. Forex trading can be completed through a broker, a company that deals in the funds, and from within your own country. For example, the US has many regulations and laws regarding forex trading and what companies are permitted to work with the public dealing with international trading and markets.
วันพฤหัสบดีที่ 5 มิถุนายน พ.ศ. 2551
The Forex Market Uses Margins to Increase Your Profits
The Forex Market Uses Margins to Increase Your Profits
by karen Fairham
Forex is a nickname for the foreign exchange, a vast market of trading in which the commodity is money itself. In the forex market, traders are buying and selling foreign currencies -- trading dollars for euros, pounds for yen, and so forth.
Forex is profitable because national currencies fluctuate from day to day based on predictions of the nation's gross domestic product and other factors. As with the stock market, the idea with the forex is to buy low and sell high: Buy a lot of a particular currency when it's weak, then sell it when it becomes stronger.
For example, bad financial news in Great Britain means that forex traders will be selling off their British pounds as fast as possible, as the pound is about to become devalued. Once the pound recovers, those traders will sell it for something else, thus turning a profit.
Though we talk of buying and selling pounds, euros, yen and francs, the transactions performed in the forex are not literal. That is, if you want to buy 100,000 euros, you don't have to withdraw the equivalent U.S. dollars from your bank account and swap them out for a big stack of euros. Everything is done on paper only, though the resulting profits and losses are real.
Because the transactions are not done physically, there is room in the forex for what are called margins or leverage. Put simply, this means you don't have to actually put up the full amount of the position you're taking. Usually the margin is 1%, meaning that when you put $1,000 into it, you're actually getting $100,000. Of course, margins multiply your losses as well as your profits, so you have to be careful.
One of the reasons for allowing a 100:1 margin like this is that the major world currencies in the forex market usually fluctuate less than 1% a day. (In the stock market, a typical stock might fluctuate as much as 10% in one day.) With changes that small, your daily loss or gain on an initial investment of $1,000 would be almost imperceptible, usually less than $10 either way. By multiplying it by 100, the gains and losses in the forex market are more pronounced.
With leverage implemented that way, the basic lot for buying and selling currencies is usually 100,000 (which of course only costs 1,000). Most firms that handle day-trading on the forex market don't go any lower than that.
by karen Fairham
Forex is a nickname for the foreign exchange, a vast market of trading in which the commodity is money itself. In the forex market, traders are buying and selling foreign currencies -- trading dollars for euros, pounds for yen, and so forth.
Forex is profitable because national currencies fluctuate from day to day based on predictions of the nation's gross domestic product and other factors. As with the stock market, the idea with the forex is to buy low and sell high: Buy a lot of a particular currency when it's weak, then sell it when it becomes stronger.
For example, bad financial news in Great Britain means that forex traders will be selling off their British pounds as fast as possible, as the pound is about to become devalued. Once the pound recovers, those traders will sell it for something else, thus turning a profit.
Though we talk of buying and selling pounds, euros, yen and francs, the transactions performed in the forex are not literal. That is, if you want to buy 100,000 euros, you don't have to withdraw the equivalent U.S. dollars from your bank account and swap them out for a big stack of euros. Everything is done on paper only, though the resulting profits and losses are real.
Because the transactions are not done physically, there is room in the forex for what are called margins or leverage. Put simply, this means you don't have to actually put up the full amount of the position you're taking. Usually the margin is 1%, meaning that when you put $1,000 into it, you're actually getting $100,000. Of course, margins multiply your losses as well as your profits, so you have to be careful.
One of the reasons for allowing a 100:1 margin like this is that the major world currencies in the forex market usually fluctuate less than 1% a day. (In the stock market, a typical stock might fluctuate as much as 10% in one day.) With changes that small, your daily loss or gain on an initial investment of $1,000 would be almost imperceptible, usually less than $10 either way. By multiplying it by 100, the gains and losses in the forex market are more pronounced.
With leverage implemented that way, the basic lot for buying and selling currencies is usually 100,000 (which of course only costs 1,000). Most firms that handle day-trading on the forex market don't go any lower than that.
วันจันทร์ที่ 28 เมษายน พ.ศ. 2551
Forex Market Professional Investments
Forex Market Professional Investments
by Mike Sanders
Can Forex Trading be a chance to have big results. Yes of course, But take care of your family in the future is all about financial planning and one of the fastest growing methods to achieve this financial freedom is through investing. Investing money into areas like real estate, online, stocks and shares are just a few of the many places where this is carried out on a daily basis. This is how many people believe the will achieve financial security and a way to provide for their family in the future. In this article we will very briefly look at the concepts with stocks and mutual funds, with real estate and of course online.
Research on how to invest is as important as in the areas you plan to invest in, especially when stocks are concerned as this can be one of the more risky areas to invest in particularly for first timers. The Forex stock market can be a great way to make money, sometimes very quickly but these sorts of gains are generally made by people that know what they are doing and short term risks can be involved. Remodeling a home that you have bought inexpensively can be a great way to build up funds very quickly but be warned this does require work as well but the money gained can be put into another project almost immediately.
Still, you will need to look into this further if this is an idea you are keen on because there are other issues to think about; however, this next area to invest in is not so labor intensive. If you working with the forex Marketing program and you can make a good money. Probably the fastest growing way is through forex trading online and it's amazing how easily you can work your finances online, and make money without even leaving the house. Using your computer you can research the companies that are offering shares and have a good idea of their performance before you make a decision to invest in them. More easy is to go to the Forex Day trading - There you will fund the step by step instructions which give you the safety don't loose your money. This is without doubt the most addictive and it is easy to get into trouble if you are someone with an addictive personality.
If you plan on investing, make sure you educate yourself in the market and means in which you wish to proceed. Whether it is with stocks, mutual funds, real estate or online, do your research and make some money! As usual, there is a huge amount of free information on the internet if you really want to learn more; remember, successful people do not use luck all the time! Enjoy the investing you do but remember it has a serious side that doesn't take prisoners; this is why it is so important to learn the game rules before you play.
by Mike Sanders
Can Forex Trading be a chance to have big results. Yes of course, But take care of your family in the future is all about financial planning and one of the fastest growing methods to achieve this financial freedom is through investing. Investing money into areas like real estate, online, stocks and shares are just a few of the many places where this is carried out on a daily basis. This is how many people believe the will achieve financial security and a way to provide for their family in the future. In this article we will very briefly look at the concepts with stocks and mutual funds, with real estate and of course online.
Research on how to invest is as important as in the areas you plan to invest in, especially when stocks are concerned as this can be one of the more risky areas to invest in particularly for first timers. The Forex stock market can be a great way to make money, sometimes very quickly but these sorts of gains are generally made by people that know what they are doing and short term risks can be involved. Remodeling a home that you have bought inexpensively can be a great way to build up funds very quickly but be warned this does require work as well but the money gained can be put into another project almost immediately.
Still, you will need to look into this further if this is an idea you are keen on because there are other issues to think about; however, this next area to invest in is not so labor intensive. If you working with the forex Marketing program and you can make a good money. Probably the fastest growing way is through forex trading online and it's amazing how easily you can work your finances online, and make money without even leaving the house. Using your computer you can research the companies that are offering shares and have a good idea of their performance before you make a decision to invest in them. More easy is to go to the Forex Day trading - There you will fund the step by step instructions which give you the safety don't loose your money. This is without doubt the most addictive and it is easy to get into trouble if you are someone with an addictive personality.
If you plan on investing, make sure you educate yourself in the market and means in which you wish to proceed. Whether it is with stocks, mutual funds, real estate or online, do your research and make some money! As usual, there is a huge amount of free information on the internet if you really want to learn more; remember, successful people do not use luck all the time! Enjoy the investing you do but remember it has a serious side that doesn't take prisoners; this is why it is so important to learn the game rules before you play.
วันอังคารที่ 19 กุมภาพันธ์ พ.ศ. 2551
Trading the Forex Market
Trading the Forex Market
by Alan Johnson
It's been said that between 90% and 95% of all Forex traders lose while only 5% to 10% win. Most people think that winning traders are winning traders because they have come up with a winning Forex trading system. Although a winning trading plan is important it is certainly NOT why some traders win. It's possible to have a losing trading system and still win money as long as the trades are managed properly. It's possible to lose 3 out of every 4 trades and still win money consistently by keeping the losses small and allowing the winners to get big.
You might be surprised when I tell you that a winning Forex strategy is really not that difficult to come up with, and that in actuality there are many winning trading systems. And if what I say is true, that it's easy to come up with a winning trading plan, then why do 90% or more of the traders lose? Two words: mental weakness.
Even after you find a winning system you still have to trade it and that's where it can get tough. If you could enter a trade and then have the market immediately move a large amount in your favor trading the forex would be easy. But it doesn't work that way.
The typical inexperienced trader will get stopped out on the losing trades, taking a loss, and then exit too early on the winning trades, not getting the full possible profit. The key to winning consistently in the Forex market is to come up with a winning trading system and follow it, no matter how difficult it is. A winning trader with a winning trading plan knows that he will win 2 out of every 3 trades, or 3 out of every 4 trades, or 4 out of every 5 trades, but he sticks with his plan all the way on every trade, win or lose. He may have 3 losing trades in a row, but on the 4th trade he continues to follow the plan exactly. He doesn't deviate from the plan because he's had a bad streak. He doesn't exit a trade until his plan tells him to.
Sticking with a predetermined plan, and not deviating from it, is the key to successful trading. Some traders can win 3 out of every 4 trades and still end up losing money. Why? Because they exit winning trades too early, turning potential big winners into small winners or even losses. The only way to become a successful trader is to let ALL of the trades play out according to a successful predetermined plan.
Another important element of trading is money management. Improper money management is without a doubt the biggest reason traders lose. If a trader has too much money at risk on any one trade they will have a much greater tendency to exit trades too early. It's very important that you know how much money to risk on any one trade, how to manage the trade, how to protect your profits, and how to exit a trade. These elements must be learned if you want to become a winning trader. Learning these important rules can help you become a successful trader.
by Alan Johnson
It's been said that between 90% and 95% of all Forex traders lose while only 5% to 10% win. Most people think that winning traders are winning traders because they have come up with a winning Forex trading system. Although a winning trading plan is important it is certainly NOT why some traders win. It's possible to have a losing trading system and still win money as long as the trades are managed properly. It's possible to lose 3 out of every 4 trades and still win money consistently by keeping the losses small and allowing the winners to get big.
You might be surprised when I tell you that a winning Forex strategy is really not that difficult to come up with, and that in actuality there are many winning trading systems. And if what I say is true, that it's easy to come up with a winning trading plan, then why do 90% or more of the traders lose? Two words: mental weakness.
Even after you find a winning system you still have to trade it and that's where it can get tough. If you could enter a trade and then have the market immediately move a large amount in your favor trading the forex would be easy. But it doesn't work that way.
The typical inexperienced trader will get stopped out on the losing trades, taking a loss, and then exit too early on the winning trades, not getting the full possible profit. The key to winning consistently in the Forex market is to come up with a winning trading system and follow it, no matter how difficult it is. A winning trader with a winning trading plan knows that he will win 2 out of every 3 trades, or 3 out of every 4 trades, or 4 out of every 5 trades, but he sticks with his plan all the way on every trade, win or lose. He may have 3 losing trades in a row, but on the 4th trade he continues to follow the plan exactly. He doesn't deviate from the plan because he's had a bad streak. He doesn't exit a trade until his plan tells him to.
Sticking with a predetermined plan, and not deviating from it, is the key to successful trading. Some traders can win 3 out of every 4 trades and still end up losing money. Why? Because they exit winning trades too early, turning potential big winners into small winners or even losses. The only way to become a successful trader is to let ALL of the trades play out according to a successful predetermined plan.
Another important element of trading is money management. Improper money management is without a doubt the biggest reason traders lose. If a trader has too much money at risk on any one trade they will have a much greater tendency to exit trades too early. It's very important that you know how much money to risk on any one trade, how to manage the trade, how to protect your profits, and how to exit a trade. These elements must be learned if you want to become a winning trader. Learning these important rules can help you become a successful trader.
วันจันทร์ที่ 4 กุมภาพันธ์ พ.ศ. 2551
Forex Trading Strategies
Forex Trading Strategies
by Andrew Daigle
The Forex market incorporates two primary types of Forex trading strategies. One such Forex strategy is based on a fundamental analysis and the other is based on a technical analysis. As a trader, you will likely have to incorporate both types of Forex strategies in your overall Forex trading strategy. Fundamental analyses are based on economic factors while technical analyses are based on price. There is a general consensus among market participants that the most highly traded currency pairs in the Forex market tend to be technical and the more exotic currency pairs tend to be more fundamental.
While both types of analysis are necessary for successful and profitable trades, most traders tend to rely more on one type than the other. When your Forex trading strategy incorporates technical analysis, you must be prepared to deal with the mathematical concepts necessary to manipulate pricing data. Likewise, when you incorporate fundamental analysis in your trading strategy, you must be prepared to handle the multitude of economic factors necessary to base your trades. In the end, the variety of economic data must be converted into price predictions and many traders resort to technical analysis because it is thought to have a built in mechanism for completing the conversion. However, incorporating a purely technical Forex trading strategy without regard for the fundamental aspects of the market is much like trading on luck. Sometimes you win, sometimes not.
Other factors that will influence your Forex trading strategy are your ability to manage money and to handle the psychological implications of participating in the Forex market. While many people have profited from their Forex trading strategies, losses are all but guaranteed with Forex trading systems. One of the nuances of Forex trading is that it involves calculated risks. If your financial situation or emotional circumstance is such that you cannot afford to sustain losses, you will likely loose more than your investment dollars, particularly if your losses are easily converted to physical illness.
It is important to develop a Forex trading strategy that complements your lifestyle and temperament. You need to understand the investment, the risks and the impact that your choices will have on your investment dollars and your lifestyle. In Forex trading, it is quite possible for a loss to multiple itself as market conditions vary and change. Your Forex trading strategy must include a plan of action in the case of a loss as well as a win. Another consequence of Forex trading is overconfidence. Overconfidence has caused many traders to engage other more costly and more risky trades following a win or series of wins. You will have to be responsible to dedicate the time necessary to track and analyze the trades that you engage. It only makes since that you engage a number a trades that you are reasonably able to manage during a given trading session. Forex trading can also become addictive for certain personalities. Your Forex trading strategy should include indicators that alert you when it is time to enter or exit trading. You cannot become overconfident about a win or series of wins. Likewise you cannot become too depressed over a loss or series of losses. FOREX trading systems are based on calculated risks and the wrong calculation leads to more risk and the potential for more loss.
by Andrew Daigle
The Forex market incorporates two primary types of Forex trading strategies. One such Forex strategy is based on a fundamental analysis and the other is based on a technical analysis. As a trader, you will likely have to incorporate both types of Forex strategies in your overall Forex trading strategy. Fundamental analyses are based on economic factors while technical analyses are based on price. There is a general consensus among market participants that the most highly traded currency pairs in the Forex market tend to be technical and the more exotic currency pairs tend to be more fundamental.
While both types of analysis are necessary for successful and profitable trades, most traders tend to rely more on one type than the other. When your Forex trading strategy incorporates technical analysis, you must be prepared to deal with the mathematical concepts necessary to manipulate pricing data. Likewise, when you incorporate fundamental analysis in your trading strategy, you must be prepared to handle the multitude of economic factors necessary to base your trades. In the end, the variety of economic data must be converted into price predictions and many traders resort to technical analysis because it is thought to have a built in mechanism for completing the conversion. However, incorporating a purely technical Forex trading strategy without regard for the fundamental aspects of the market is much like trading on luck. Sometimes you win, sometimes not.
Other factors that will influence your Forex trading strategy are your ability to manage money and to handle the psychological implications of participating in the Forex market. While many people have profited from their Forex trading strategies, losses are all but guaranteed with Forex trading systems. One of the nuances of Forex trading is that it involves calculated risks. If your financial situation or emotional circumstance is such that you cannot afford to sustain losses, you will likely loose more than your investment dollars, particularly if your losses are easily converted to physical illness.
It is important to develop a Forex trading strategy that complements your lifestyle and temperament. You need to understand the investment, the risks and the impact that your choices will have on your investment dollars and your lifestyle. In Forex trading, it is quite possible for a loss to multiple itself as market conditions vary and change. Your Forex trading strategy must include a plan of action in the case of a loss as well as a win. Another consequence of Forex trading is overconfidence. Overconfidence has caused many traders to engage other more costly and more risky trades following a win or series of wins. You will have to be responsible to dedicate the time necessary to track and analyze the trades that you engage. It only makes since that you engage a number a trades that you are reasonably able to manage during a given trading session. Forex trading can also become addictive for certain personalities. Your Forex trading strategy should include indicators that alert you when it is time to enter or exit trading. You cannot become overconfident about a win or series of wins. Likewise you cannot become too depressed over a loss or series of losses. FOREX trading systems are based on calculated risks and the wrong calculation leads to more risk and the potential for more loss.
วันจันทร์ที่ 28 มกราคม พ.ศ. 2551
Forex Money Management - Why It's so Hard to Accept Huge Profits
Forex Money Management - Why It's so Hard to Accept Huge Profits
by kelly Price
Many traders think that accepting losses is hard but it's not nearly as hard as accepting big profits. When you are engaged in forex money management your profits need to exceed your losses so you need to maximize them- so why do most traders have a problem, on the one hand we all want big gains - We do but:
Most traders have a psychological problem in running profits.
The typical forex trader gets a profit and feels pleased. The bigger it gets though, the more tempted he is to take it. Swings in price go back against his position and eats his open equity and this causes emotional problems.
The bigger the profit becomes the more tempted the trader is to take it. The trader ends up snatching the profit early, as open equity swings cause him to panic and he banks it and then what happens?
The trade continues the way he thought and goes on to pile up $10, 20 30,000 or more and he's not in.
Its hard holding a profit in a long term trend and taking short term swings against you, by sometimes thousands a day - but if you want to catch and hold the long term trends that's what you have to do.
It requires total understanding of your trading system and confidence in it - and this is why most traders can't do it they are emotional "shoot from the hip" traders or following a guru.
A good forex trading system will normally win 30 - 50% of the time (forget the traders who claim 90% their lying) so your losers will be normally more or the at the same level as your profits. So you need to have a profit 3 - 5 times bigger than your loss to make good profits on your overall trading account.
Most traders simply don't have the patience and discipline to follow long term trends but you must to win. However, look at the major forex trends and you will see they last for months or years and can make you rich - IF you can lock into and hold them.
Many forex traders simply can't cope with trend following so they try day trading and vendors present it as way to scalp small profits and build them over time - good story, doesn't work. Day trading is a loser's game as all short term volatility is random.
If you find long term trend following to stressful, try forex swing trading as profits and loses come quickly and you don't need to endure the open equity dips you do in trend following.
If you're a novice cut your teeth on swing trading and build up your confidence and discipline to try long term trend following - if you can catch these trends, accept open equity dips and keep your eyes on the end prize, you could make huge profits.
Trend following is hard but very lucrative - if you have the mindset you can turn these trends into huge profits and understand forex money management is not just about taking losses its also about accepting big profits to.
by kelly Price
Many traders think that accepting losses is hard but it's not nearly as hard as accepting big profits. When you are engaged in forex money management your profits need to exceed your losses so you need to maximize them- so why do most traders have a problem, on the one hand we all want big gains - We do but:
Most traders have a psychological problem in running profits.
The typical forex trader gets a profit and feels pleased. The bigger it gets though, the more tempted he is to take it. Swings in price go back against his position and eats his open equity and this causes emotional problems.
The bigger the profit becomes the more tempted the trader is to take it. The trader ends up snatching the profit early, as open equity swings cause him to panic and he banks it and then what happens?
The trade continues the way he thought and goes on to pile up $10, 20 30,000 or more and he's not in.
Its hard holding a profit in a long term trend and taking short term swings against you, by sometimes thousands a day - but if you want to catch and hold the long term trends that's what you have to do.
It requires total understanding of your trading system and confidence in it - and this is why most traders can't do it they are emotional "shoot from the hip" traders or following a guru.
A good forex trading system will normally win 30 - 50% of the time (forget the traders who claim 90% their lying) so your losers will be normally more or the at the same level as your profits. So you need to have a profit 3 - 5 times bigger than your loss to make good profits on your overall trading account.
Most traders simply don't have the patience and discipline to follow long term trends but you must to win. However, look at the major forex trends and you will see they last for months or years and can make you rich - IF you can lock into and hold them.
Many forex traders simply can't cope with trend following so they try day trading and vendors present it as way to scalp small profits and build them over time - good story, doesn't work. Day trading is a loser's game as all short term volatility is random.
If you find long term trend following to stressful, try forex swing trading as profits and loses come quickly and you don't need to endure the open equity dips you do in trend following.
If you're a novice cut your teeth on swing trading and build up your confidence and discipline to try long term trend following - if you can catch these trends, accept open equity dips and keep your eyes on the end prize, you could make huge profits.
Trend following is hard but very lucrative - if you have the mindset you can turn these trends into huge profits and understand forex money management is not just about taking losses its also about accepting big profits to.
วันศุกร์ที่ 25 มกราคม พ.ศ. 2551
Profitable Forex Trading: Stop Asking Questions!
Profitable Forex Trading: Stop Asking Questions!
by Harold Hsu
I heard this saying a few years ago: "If you have to ask you shouldn't be trading" And I thought to myself, wow, that's such a simple, yet powerful statement!
Think about it. If you had a reliable, trading system that consistently got you trading profits, would you EVER have to ask anyone else's opinion? Would you have to ask anyone questions about trading?
You see, too many traders today are asking question after question without bothering to find out the answers for themselves. These people scour online forums and websites, asking questions about trading and waiting for someone to provide a quick reply. And in the end, these people don't really learn anything except how to confuse themselves.
I think you'll agree with me that good traders are action-orientated. They look for news reports to read, plan out their trading systems, and execute their orders based on their research and knowledge. But what good traders Don't do however, is to ask other traders' opinions. One good reason for this is because more than 90% of the traders in the World today are losing traders anyway! Why get advice from people who can't trade for themselves?
Also, if you keep posing questions to different people, you'll eventually get very confused yourself. This is because many people trade in different ways. If you're a long-term trend trader, why ask advice from a day trader? If you're a value investor, then why seek an opinion from a momentum trader? This is a complete waste of time and effort.
Asking too many questions takes away your ability to feel responsible for your own actions. If a trade fails, it's not your fault right? After all, you took this trading advice from someone else... let's just blame that guy! He gave you bad trading advice and it's his fault that you lost money!
But guess what, that guy doesn't care. He's not the one losing money... you are! So take full ownership of your trading career, and find out the answers to your own questions if you have to. Don't rely on anyone else but yourself.
by Harold Hsu
I heard this saying a few years ago: "If you have to ask you shouldn't be trading" And I thought to myself, wow, that's such a simple, yet powerful statement!
Think about it. If you had a reliable, trading system that consistently got you trading profits, would you EVER have to ask anyone else's opinion? Would you have to ask anyone questions about trading?
You see, too many traders today are asking question after question without bothering to find out the answers for themselves. These people scour online forums and websites, asking questions about trading and waiting for someone to provide a quick reply. And in the end, these people don't really learn anything except how to confuse themselves.
I think you'll agree with me that good traders are action-orientated. They look for news reports to read, plan out their trading systems, and execute their orders based on their research and knowledge. But what good traders Don't do however, is to ask other traders' opinions. One good reason for this is because more than 90% of the traders in the World today are losing traders anyway! Why get advice from people who can't trade for themselves?
Also, if you keep posing questions to different people, you'll eventually get very confused yourself. This is because many people trade in different ways. If you're a long-term trend trader, why ask advice from a day trader? If you're a value investor, then why seek an opinion from a momentum trader? This is a complete waste of time and effort.
Asking too many questions takes away your ability to feel responsible for your own actions. If a trade fails, it's not your fault right? After all, you took this trading advice from someone else... let's just blame that guy! He gave you bad trading advice and it's his fault that you lost money!
But guess what, that guy doesn't care. He's not the one losing money... you are! So take full ownership of your trading career, and find out the answers to your own questions if you have to. Don't rely on anyone else but yourself.
วันศุกร์ที่ 18 มกราคม พ.ศ. 2551
Forex Trading Systems
Forex Trading Systems - Before You Buy One...
by Harold Hsu
Although there is a plethora of scam trading systems circulating the internet, there are indeed a few good systems based on sound fundamentals that perform consistently well. However, even when people purchase such good trading systems, they sometimes still fail to produce consistent profits. Why?
One problem is because the buyers don't understand the operating logic behind these trading systems. They just don't know why they are buying or selling! They just want to know when to buy or sell, and don't care about the reasoning behind each buy or sell setup signal.
You see, when a trader doesn't understand the trading system he follows, he'll easily lose confidence in it the moment he starts suffering a few loses. That's when he'll begin to change the rules of the system, and so his trading discipline basically goes flying out the window. And I think I don't have to elaborate on what happens to traders with no trading discipline - Simply put: they lose money. They lose a lot of it.
Ideally, Forex traders should all develop their own trading systems. But I'm sure that not everyone will have the luxury of the time or effort required to develop a reliable trading system.
That's why when you choose to purchase a trading system, please make sure you understand every single aspect of it. Understand why the system tells you to buy (or sell), and why the system tells you to hold a position (or to exit).
Another important thing to understand, is the reasoning behind the largest position size you're allowed to hold per trade. In Forex trading, the size of your trade positions ties in very closely to your entire trading system.
Every good trading system considers the maximum allowable position size in relation to the overall trading strategy. Don't consider purchasing trading systems that don't include a relevant money management system... chances are that those are scams!
by Harold Hsu
Although there is a plethora of scam trading systems circulating the internet, there are indeed a few good systems based on sound fundamentals that perform consistently well. However, even when people purchase such good trading systems, they sometimes still fail to produce consistent profits. Why?
One problem is because the buyers don't understand the operating logic behind these trading systems. They just don't know why they are buying or selling! They just want to know when to buy or sell, and don't care about the reasoning behind each buy or sell setup signal.
You see, when a trader doesn't understand the trading system he follows, he'll easily lose confidence in it the moment he starts suffering a few loses. That's when he'll begin to change the rules of the system, and so his trading discipline basically goes flying out the window. And I think I don't have to elaborate on what happens to traders with no trading discipline - Simply put: they lose money. They lose a lot of it.
Ideally, Forex traders should all develop their own trading systems. But I'm sure that not everyone will have the luxury of the time or effort required to develop a reliable trading system.
That's why when you choose to purchase a trading system, please make sure you understand every single aspect of it. Understand why the system tells you to buy (or sell), and why the system tells you to hold a position (or to exit).
Another important thing to understand, is the reasoning behind the largest position size you're allowed to hold per trade. In Forex trading, the size of your trade positions ties in very closely to your entire trading system.
Every good trading system considers the maximum allowable position size in relation to the overall trading strategy. Don't consider purchasing trading systems that don't include a relevant money management system... chances are that those are scams!
วันพฤหัสบดีที่ 17 มกราคม พ.ศ. 2551
How to choose wisely a FOREX broker
How to choose wisely a FOREX broker
by Stefan Everaet
Most traders use a FOREX broker to handle their transactions. What exactly are brokers? Strictly speaking, brokers are individuals or companies that buy and sell orders according the investor's decisions. Brokers earn money by charging a commission or a fee for their services.
FOREX brokers need to be associated with a large financial institution such as a bank in order to provide the funds necessary for margin trading. In the United States a broker should be registered as a Futures Commission Merchant (FCM) with the Commodity Futures Trading Commission (CFTC) as protection against fraud and abusive trade practices.
Before trading FOREX you need to set up an account with a FOREX broker. You may feel overwhelmed by the number of brokers who offer their services online. Deciding on a broker requires a little bit of research on your part, but the time spent will give you insight into the services that are available and fees charged by various brokers.
The best advertising is word-of-mouth advertising, and this is just as valid in FOREX trading as it is for any other type of business. Talk to friends and associates to see who they are dealing with and find if they have any complaints or difficulties in dealing with a particular broker.
You could try selecting a few online brokers and contact their Internet help desks to see how quickly they respond to enquiries and whether or not they answer questions to your satisfaction. Keep in mind, however, that pre-sales service may be better than after sales service. This can be true for any online business, not just FOREX brokers.
Customer satisfaction and safety are just part of the story. You want to find a broker who executes orders quickly and with minimum slippage. All online brokers should offer automatic execution and have clear policies regarding slippage. They should be able to tell you how much slippage can be expected in both normal and fast-moving markets. Next you want to know the fees involved. What is the spread? Is spread fixed or variable according to the type of account? Are mini accounts subject to wider spreads? Are there any other charges? Smaller spreads mean more profit for the trader, but there may be a trade-off between spread and service. Look at the overall picture before deciding to go with a particular broker. Margin accounts are the lifeblood of FOREX trading, so be sure you understand the broker's margin terms before setting up an account. You need to know the margin requirements and how margin is calculated. Does margin change according to the currency traded? Is it the same every day of the week? Some brokers may offer different margins for mini and standard accounts.
Trading software is very important for the online FOREX trader. Get a feel for the options that are available by trying out a demo account at a few online brokers. Above all, you are looking for reliability and the ability to perform well in fast-moving markets. The software should offer automatic trading and may have special features such as trailing stops and trading from the chart. Some features may only be available at an extra cost, so be sure you understand what your trading needs are and how much the broker charges to provide them.
Other information to find out about includes the broker's policy regarding minimum account balances, interest payments on account balances, which currencies can be traded and whether or not non-standard sized lots can be traded. You should also find out whether clients' funds are insured and the extent of that insurance.
by Stefan Everaet
Most traders use a FOREX broker to handle their transactions. What exactly are brokers? Strictly speaking, brokers are individuals or companies that buy and sell orders according the investor's decisions. Brokers earn money by charging a commission or a fee for their services.
FOREX brokers need to be associated with a large financial institution such as a bank in order to provide the funds necessary for margin trading. In the United States a broker should be registered as a Futures Commission Merchant (FCM) with the Commodity Futures Trading Commission (CFTC) as protection against fraud and abusive trade practices.
Before trading FOREX you need to set up an account with a FOREX broker. You may feel overwhelmed by the number of brokers who offer their services online. Deciding on a broker requires a little bit of research on your part, but the time spent will give you insight into the services that are available and fees charged by various brokers.
The best advertising is word-of-mouth advertising, and this is just as valid in FOREX trading as it is for any other type of business. Talk to friends and associates to see who they are dealing with and find if they have any complaints or difficulties in dealing with a particular broker.
You could try selecting a few online brokers and contact their Internet help desks to see how quickly they respond to enquiries and whether or not they answer questions to your satisfaction. Keep in mind, however, that pre-sales service may be better than after sales service. This can be true for any online business, not just FOREX brokers.
Customer satisfaction and safety are just part of the story. You want to find a broker who executes orders quickly and with minimum slippage. All online brokers should offer automatic execution and have clear policies regarding slippage. They should be able to tell you how much slippage can be expected in both normal and fast-moving markets. Next you want to know the fees involved. What is the spread? Is spread fixed or variable according to the type of account? Are mini accounts subject to wider spreads? Are there any other charges? Smaller spreads mean more profit for the trader, but there may be a trade-off between spread and service. Look at the overall picture before deciding to go with a particular broker. Margin accounts are the lifeblood of FOREX trading, so be sure you understand the broker's margin terms before setting up an account. You need to know the margin requirements and how margin is calculated. Does margin change according to the currency traded? Is it the same every day of the week? Some brokers may offer different margins for mini and standard accounts.
Trading software is very important for the online FOREX trader. Get a feel for the options that are available by trying out a demo account at a few online brokers. Above all, you are looking for reliability and the ability to perform well in fast-moving markets. The software should offer automatic trading and may have special features such as trailing stops and trading from the chart. Some features may only be available at an extra cost, so be sure you understand what your trading needs are and how much the broker charges to provide them.
Other information to find out about includes the broker's policy regarding minimum account balances, interest payments on account balances, which currencies can be traded and whether or not non-standard sized lots can be traded. You should also find out whether clients' funds are insured and the extent of that insurance.
วันอังคารที่ 8 มกราคม พ.ศ. 2551
Best Forex System - Beware of Backtesting!
Best Forex System - Beware of Backtesting!
by Harold Hsu
What is backtesting?
Backtesting is essentially the testing of a trading system using historical market prices, to see how profitable that system can be. This testing is usually done with computer software that runs the trading system through a period of time in the past.
Why beware of backtesting?
Many new traders think that good backtesting results will guarantee similar results in the future. This is a big mistake because a system that has worked in the past may not necessarily work in the future. This is because the Forex market is always changing and evolving. The Forex market today can be very different from the Forex market last year. The past does not equal the future... if it did, we'd all be millionaires by now!
What about trading systems with good backtesting results?
Because everyone knows what has happened in the past, it's easy for anyone to create a trading system that can be very profitable during that time (in the past). But remember: we're not trading in the past; we're trading in expectation of the future. Trading systems with good backtesting results may very well fail miserably in the future.
But this fact has not stopped unscrupulous people from selling Forex trading systems based on "excellent" backtesting results. They use impressive hypothetical (i.e. backtested) results as a sales tool. Unfortunately, many traders purchase these trading systems only to have them fail miserably and causing them to lose thousands of dollars.
What can I do to protect myself?
When looking for a good trading system, ask the system developer whether the trading results are actual or hypothetical. Many people assume that hypothetical returns are actual returns, but that's just not the case.
Now that you know it's easy to create a trading system based on backtesting (i.e. hypothetical) results, you'll hopefully be more skeptical about trading systems with little or no actual trading results.
Summary
While backtesting can be a very useful way to test a trading system, it's definitely not an accurate measure of how the system will perform for you in the future. Be wary of scammers who use hypothetical returns to try and sell you something!
by Harold Hsu
What is backtesting?
Backtesting is essentially the testing of a trading system using historical market prices, to see how profitable that system can be. This testing is usually done with computer software that runs the trading system through a period of time in the past.
Why beware of backtesting?
Many new traders think that good backtesting results will guarantee similar results in the future. This is a big mistake because a system that has worked in the past may not necessarily work in the future. This is because the Forex market is always changing and evolving. The Forex market today can be very different from the Forex market last year. The past does not equal the future... if it did, we'd all be millionaires by now!
What about trading systems with good backtesting results?
Because everyone knows what has happened in the past, it's easy for anyone to create a trading system that can be very profitable during that time (in the past). But remember: we're not trading in the past; we're trading in expectation of the future. Trading systems with good backtesting results may very well fail miserably in the future.
But this fact has not stopped unscrupulous people from selling Forex trading systems based on "excellent" backtesting results. They use impressive hypothetical (i.e. backtested) results as a sales tool. Unfortunately, many traders purchase these trading systems only to have them fail miserably and causing them to lose thousands of dollars.
What can I do to protect myself?
When looking for a good trading system, ask the system developer whether the trading results are actual or hypothetical. Many people assume that hypothetical returns are actual returns, but that's just not the case.
Now that you know it's easy to create a trading system based on backtesting (i.e. hypothetical) results, you'll hopefully be more skeptical about trading systems with little or no actual trading results.
Summary
While backtesting can be a very useful way to test a trading system, it's definitely not an accurate measure of how the system will perform for you in the future. Be wary of scammers who use hypothetical returns to try and sell you something!
วันอาทิตย์ที่ 6 มกราคม พ.ศ. 2551
Who are the Major Players in the Forex Market?
Who are the Major Players in the Forex Market?
by Joon Trader
In Forex Trading, it is important that a newbie knows who are participating in the Forex arena. Below-mentioned are the major players in this market.
Central Banks and Governments- Monetary Policies such as Interest Rate that are implemented by central banks or governments can play a major and critical role in the Forex market. Central banks provide financial stability by controlling a country's money supply.
Banks- A major portion of the Forex market turnover is from banks. Large banks literally trade billion and billion of currency every working day. This could be in the form of hedging or speculative purposes.
Hedge Funds- By now, you should know that the Forex market has high liquidity, hence it is a major attraction for trading. Hedge Fund managers have increasingly allocated big portions of their portfolios to speculate on the Forex market. Another advantage is a higher degree of leverage available to them as compared to the stock or equity market.
Large Multinational Corporation (MNCs)- The reason why Forex market is in existence is due primarily to global trade. With the highly interrelated global market place, goods are imported or exported to many countries. Payment for these goods and services may be made and received in different currencies. Billion and billions of dollars are exchanges every day for global trade transaction.
Retail Investors and Speculators- In reality, there isn't much difference between the two. Both are in the market hoping to make money by exploiting the movement of a currency pair. Each has their reason to believe why a currency will move up or down and in turn long or short a currency accordingly. According to a survey conducted by the Bank for International Settlements (BIS) in April 2007, average daily trading volume for the Forex market reached an all-time record high of US$3.2 Trillion. A 71% increase from US$1.9 Trillion that was traded in April 2004. This increase is due mainly to the participation of retail investors utilizing broker's electronic trading platform.
You and Me- When we have our holiday aboard or travelling overseas on business trips, we would naturally need to buy that country's currency and upon return, revert back to our own nation's currency. When we are using our credit cards to make overseas purchases, our credit card company has to convert our purchases into out home currency in order to bill us. Not knowingly, we are already trading currencies.
JoonTrader is the owner of forexdiscover. For further recommended resources on how to make money in Forex Trading. Click here to grab the secret to consistent pips.
by Joon Trader
In Forex Trading, it is important that a newbie knows who are participating in the Forex arena. Below-mentioned are the major players in this market.
Central Banks and Governments- Monetary Policies such as Interest Rate that are implemented by central banks or governments can play a major and critical role in the Forex market. Central banks provide financial stability by controlling a country's money supply.
Banks- A major portion of the Forex market turnover is from banks. Large banks literally trade billion and billion of currency every working day. This could be in the form of hedging or speculative purposes.
Hedge Funds- By now, you should know that the Forex market has high liquidity, hence it is a major attraction for trading. Hedge Fund managers have increasingly allocated big portions of their portfolios to speculate on the Forex market. Another advantage is a higher degree of leverage available to them as compared to the stock or equity market.
Large Multinational Corporation (MNCs)- The reason why Forex market is in existence is due primarily to global trade. With the highly interrelated global market place, goods are imported or exported to many countries. Payment for these goods and services may be made and received in different currencies. Billion and billions of dollars are exchanges every day for global trade transaction.
Retail Investors and Speculators- In reality, there isn't much difference between the two. Both are in the market hoping to make money by exploiting the movement of a currency pair. Each has their reason to believe why a currency will move up or down and in turn long or short a currency accordingly. According to a survey conducted by the Bank for International Settlements (BIS) in April 2007, average daily trading volume for the Forex market reached an all-time record high of US$3.2 Trillion. A 71% increase from US$1.9 Trillion that was traded in April 2004. This increase is due mainly to the participation of retail investors utilizing broker's electronic trading platform.
You and Me- When we have our holiday aboard or travelling overseas on business trips, we would naturally need to buy that country's currency and upon return, revert back to our own nation's currency. When we are using our credit cards to make overseas purchases, our credit card company has to convert our purchases into out home currency in order to bill us. Not knowingly, we are already trading currencies.
JoonTrader is the owner of forexdiscover. For further recommended resources on how to make money in Forex Trading. Click here to grab the secret to consistent pips.
How To Choose The Best FOREX Broker For You
How To Choose The Best FOREX Broker For You
by Yusoff Allian
Until recently it was a fairly simple process to figure out which FOREX broker was best for you as there were only a handful available. With the rise of the internet and the explosive growth of FOREX trading, the number of FOREX brokers has skyrocketed. It may seem overwhelming given the sheer number of FOREX brokers available to you, but by carrying out some simple research and doing your due diligence you will be able to pick a FOREX broker that's right for you.
It might be a good idea at this point to back up a bit and understand what a FOREX broker actually does. Basically, a FOREX broker is a person or group of people that carry out trades for an investor. The nice thing about using a FOREX broker is that they don't charge any commission per trade like you see with the stock market. Instead, FOREX brokers make their money by taking the difference between the bid price and the ask price of the currency. Be wary of brokers that take too much of that spread as their fee as it can affect your profit margin. Ideally you want a FOREX broker that charges 2-3 pip spreads, and definitely avoid any that charge anything higher than 5-pip spreads.
Probably the most important factor to look for when choosing a FOREX broker is whether or not they're regulated. Any U.S. based FOREX broker should be registered with the Commodity Futures Trading Commission (CFTC) and should also be a member of the National Futures Association (NFA).
You can visit the NFA's website at http://www.nfa.futures.org/basicnet and look up any FOREX broker you're interested in. Make sure you deal with a broker that has a clean record and has solid company financials. Any FOREX brokers that don't meet either of these criteria should be stricken off your list of candidates!
Customer service is an absolute must when deciding on a FOREX broker. The FOREX market never sleeps, meaning you can trade any time of the day or night. It's very important that any FOREX broker you choose have customer support staff that can be reached at any time, and provide assistance on very short notice. Take note of any positive testimonials on their site that reference the speed and reliability of their customer service, but also visit search engines and try to find other sources that may have written about their experiences with customer service. Good customer service can make a huge difference in your online experience with FOREX brokers, so it pays to do your research.
Find a FOREX broker that offers a trading platform you're comfortable with. The vast majority of brokers offer both web-based applications and downloadable applications. The web-based platform allows you to connect from any computer in the world that has internet access, but can be slower than its downloadable counterpart. The latter has speed on its side, but can only be run from the computer it's installed on. Whichever you choose, make sure the platform offers at least the basics, such as real-time quotes and up-to-date account information.
The criteria listed above are the essentials to choosing the right FOREX broker for you. Other services offered by the broker can be considered icing on the cake, but depending on your situation may also be viewed as critical to your decision making process. Some other factors you may want to consider are the minimum account opening deposit, timely execution of your orders and free charts and analysis.
by Yusoff Allian
Until recently it was a fairly simple process to figure out which FOREX broker was best for you as there were only a handful available. With the rise of the internet and the explosive growth of FOREX trading, the number of FOREX brokers has skyrocketed. It may seem overwhelming given the sheer number of FOREX brokers available to you, but by carrying out some simple research and doing your due diligence you will be able to pick a FOREX broker that's right for you.
It might be a good idea at this point to back up a bit and understand what a FOREX broker actually does. Basically, a FOREX broker is a person or group of people that carry out trades for an investor. The nice thing about using a FOREX broker is that they don't charge any commission per trade like you see with the stock market. Instead, FOREX brokers make their money by taking the difference between the bid price and the ask price of the currency. Be wary of brokers that take too much of that spread as their fee as it can affect your profit margin. Ideally you want a FOREX broker that charges 2-3 pip spreads, and definitely avoid any that charge anything higher than 5-pip spreads.
Probably the most important factor to look for when choosing a FOREX broker is whether or not they're regulated. Any U.S. based FOREX broker should be registered with the Commodity Futures Trading Commission (CFTC) and should also be a member of the National Futures Association (NFA).
You can visit the NFA's website at http://www.nfa.futures.org/basicnet and look up any FOREX broker you're interested in. Make sure you deal with a broker that has a clean record and has solid company financials. Any FOREX brokers that don't meet either of these criteria should be stricken off your list of candidates!
Customer service is an absolute must when deciding on a FOREX broker. The FOREX market never sleeps, meaning you can trade any time of the day or night. It's very important that any FOREX broker you choose have customer support staff that can be reached at any time, and provide assistance on very short notice. Take note of any positive testimonials on their site that reference the speed and reliability of their customer service, but also visit search engines and try to find other sources that may have written about their experiences with customer service. Good customer service can make a huge difference in your online experience with FOREX brokers, so it pays to do your research.
Find a FOREX broker that offers a trading platform you're comfortable with. The vast majority of brokers offer both web-based applications and downloadable applications. The web-based platform allows you to connect from any computer in the world that has internet access, but can be slower than its downloadable counterpart. The latter has speed on its side, but can only be run from the computer it's installed on. Whichever you choose, make sure the platform offers at least the basics, such as real-time quotes and up-to-date account information.
The criteria listed above are the essentials to choosing the right FOREX broker for you. Other services offered by the broker can be considered icing on the cake, but depending on your situation may also be viewed as critical to your decision making process. Some other factors you may want to consider are the minimum account opening deposit, timely execution of your orders and free charts and analysis.
วันจันทร์ที่ 31 ธันวาคม พ.ศ. 2550
History of the Forex Market
History of the Forex Market
by Andrew Daigle
Money, in one form or another, has been used by man for centuries. At first it was mainly gold or silver coins. Goods were traded versus other goods or against gold. So, the price of gold got a reference point. But as the trading of goods grew among nations, moving quantities of gold around places to settle payments of trade became cumbersome, risky and time consuming. Therefore, a system was sought by which the payment of trades could be resolved in the seller's local currency. But how much of buyer's local currency should be equal to the seller's local currency?
The answer was simple. The strength of a country's currency depended on the amount of gold reserves the country preserved. So, if country A's gold reserves are double the gold reserves of country B, country A's currency will be twice in value when exchanged with the currency of country B. During the first World War, in order to meet the tremendous financing needs, paper money was created in quantities that far exceeded the gold reserves.
After the cease of World War II the western allied powers tried to resolve the problem at the Bretton Woods Conference in New Hampshire in 1944. In the first three weeks of July 1944, delegates from 45 nations gathered at the United Nations Monetary and Financial Conference in Bretton Woods, New Hampshire. The delegates gathered to discuss the postwar recovery of Europe as well as a number of monetary issues, such as unstable exchange rates and protectionist trade policies. In the early 1940s, the United States and Great Britain developed proposals for the creation of new international financial institutions that would stabilize exchange rates and promote international trade.
The delegates at Bretton Woods arrived at an agreement known as the Bretton Woods Agreement to establish a postwar international monetary system of convertible currencies, fixed exchange rates and free trade. To help these objectives, the agreement created two international institutions: the International Monetary Fund (IMF) and the International Bank for Reconstruction and Development (the World Bank). The aim was to render economic aid for reconstruction of postwar Europe. An initial loan of $250 million to France in 1947 was the World Bank's first act.
Under the Bretton Woods Exchange System, the currencies of active nations could be changed into the US dollar at a fixed rate, and foreign central banks could change the US dollar into gold at a fixed rate. It was similar to forex trading.
The United States, under President Nixon, retaliated in 1971 by devaluing the dollar and pushing realignment of currencies with the dollar. The heading European economies tried to counter the US move by adjusting their currencies in narrow band and then float jointly against the US dollar.
Fortunately, this currency war did not last long and by the first half of the 1970's heading world economies gave up the fixed exchange rate system for good and floated their currencies in the exposed market. The idea was to let the market determine the value of a given currency based on the demand and supply of the currency and the economic wellness of the currency's nation, it sown the forex trading. This market is popularly known as the International Monetary Market or IMM. This IMM is not a single entity. It is the collection of all financial institutions that have any concern in foreign currencies, all over the world. Banks, Brokerages, Fund Managers, Government Central Banks and sometimes individuals, are just a few examples.
Although the currency's value is dependent on the market forces, the central banks still try to keep their currency in a predefined (and highly confidential) fluctuation band as a part of their forex trading strategies. They achieve this by taking several steps.
by Andrew Daigle
Money, in one form or another, has been used by man for centuries. At first it was mainly gold or silver coins. Goods were traded versus other goods or against gold. So, the price of gold got a reference point. But as the trading of goods grew among nations, moving quantities of gold around places to settle payments of trade became cumbersome, risky and time consuming. Therefore, a system was sought by which the payment of trades could be resolved in the seller's local currency. But how much of buyer's local currency should be equal to the seller's local currency?
The answer was simple. The strength of a country's currency depended on the amount of gold reserves the country preserved. So, if country A's gold reserves are double the gold reserves of country B, country A's currency will be twice in value when exchanged with the currency of country B. During the first World War, in order to meet the tremendous financing needs, paper money was created in quantities that far exceeded the gold reserves.
After the cease of World War II the western allied powers tried to resolve the problem at the Bretton Woods Conference in New Hampshire in 1944. In the first three weeks of July 1944, delegates from 45 nations gathered at the United Nations Monetary and Financial Conference in Bretton Woods, New Hampshire. The delegates gathered to discuss the postwar recovery of Europe as well as a number of monetary issues, such as unstable exchange rates and protectionist trade policies. In the early 1940s, the United States and Great Britain developed proposals for the creation of new international financial institutions that would stabilize exchange rates and promote international trade.
The delegates at Bretton Woods arrived at an agreement known as the Bretton Woods Agreement to establish a postwar international monetary system of convertible currencies, fixed exchange rates and free trade. To help these objectives, the agreement created two international institutions: the International Monetary Fund (IMF) and the International Bank for Reconstruction and Development (the World Bank). The aim was to render economic aid for reconstruction of postwar Europe. An initial loan of $250 million to France in 1947 was the World Bank's first act.
Under the Bretton Woods Exchange System, the currencies of active nations could be changed into the US dollar at a fixed rate, and foreign central banks could change the US dollar into gold at a fixed rate. It was similar to forex trading.
The United States, under President Nixon, retaliated in 1971 by devaluing the dollar and pushing realignment of currencies with the dollar. The heading European economies tried to counter the US move by adjusting their currencies in narrow band and then float jointly against the US dollar.
Fortunately, this currency war did not last long and by the first half of the 1970's heading world economies gave up the fixed exchange rate system for good and floated their currencies in the exposed market. The idea was to let the market determine the value of a given currency based on the demand and supply of the currency and the economic wellness of the currency's nation, it sown the forex trading. This market is popularly known as the International Monetary Market or IMM. This IMM is not a single entity. It is the collection of all financial institutions that have any concern in foreign currencies, all over the world. Banks, Brokerages, Fund Managers, Government Central Banks and sometimes individuals, are just a few examples.
Although the currency's value is dependent on the market forces, the central banks still try to keep their currency in a predefined (and highly confidential) fluctuation band as a part of their forex trading strategies. They achieve this by taking several steps.
วันศุกร์ที่ 21 ธันวาคม พ.ศ. 2550
Business forex online trading
Business forex online trading
by Nick Schultz
Foreign exchange is where people from various countries trade in currency belonging to other countries. This is similar to stock trading but very different from it as well in the sense that there are no specific office or clearing houses where money is traded and rates are fixed. If a person has been working for a couple of years, he would have saved up enough for the future and might want to invest the rest. Among the top options for investment, of which forex trading is one, the business forex online trading is today has made life so much more effortless for all involved. Through the online medium, people can get in touch with traders in other parts of the world, in a country of their choice and place their orders. Today there are many who carry out Forex as a business and not just as an investment venue. They help other prospective investors make the right choice and help them in trading on forex. Not only do they provide assistance to new investors, but they themselves invest in the foreign exchange using a lot of analysis and data.
The business forex online trading is where the investor plans ahead of time, and decides on a strategy before making the investment. The forex industry is said to be the most volatile but the most liquid of the investment venues available to companies. While carrying out online trading, the investors also have the flexibility to speed up the process by sending across emails within minutes of receiving updates on the currency rates. Or they might be tracking the market trend and if they feel the timing is right, they can make the purchase right away. They even have Java based platforms through which investors can keep track of all their investments and get regular updates. The only thing required from the investor is that they need to create an account with the website before they start trading. And most of them maintain not one but two sites, one they use for trial and learning purposes, while the other is for regular trading.
It is normal for a person to incur losses during their initial investments but with practice they will master the art of following trends. And once they have set their feet firmly in the ground there is no turning back. The worldwide web offers plenty of options through which one can spend less time than before but double their earnings. All they need to do is follow the rules of business forex online trading to assess each of the currencies and play based on the reports generated periodically. This will not only yield them high returns but also help them reduce the risk factor with every investment made. And while dealing online, they can make buy or sell decisions all 24 hours of the day as someone somewhere is still up and trading in the foreign exchange. Even while they are sleeping, they might earn about 100 pips through the exchange because the other country might be awake doing business.
Nick Schultz is a Forex Trading expert who recently developed an eCourse that details a step by step process for success Forex investing. If you are interested in learning more about his "9 Steps to Better Forex Investing" eCourse and learning how to make greater profits from your Forex Trading, please go here right now! : http://www.forexinvestingcourse.com
by Nick Schultz
Foreign exchange is where people from various countries trade in currency belonging to other countries. This is similar to stock trading but very different from it as well in the sense that there are no specific office or clearing houses where money is traded and rates are fixed. If a person has been working for a couple of years, he would have saved up enough for the future and might want to invest the rest. Among the top options for investment, of which forex trading is one, the business forex online trading is today has made life so much more effortless for all involved. Through the online medium, people can get in touch with traders in other parts of the world, in a country of their choice and place their orders. Today there are many who carry out Forex as a business and not just as an investment venue. They help other prospective investors make the right choice and help them in trading on forex. Not only do they provide assistance to new investors, but they themselves invest in the foreign exchange using a lot of analysis and data.
The business forex online trading is where the investor plans ahead of time, and decides on a strategy before making the investment. The forex industry is said to be the most volatile but the most liquid of the investment venues available to companies. While carrying out online trading, the investors also have the flexibility to speed up the process by sending across emails within minutes of receiving updates on the currency rates. Or they might be tracking the market trend and if they feel the timing is right, they can make the purchase right away. They even have Java based platforms through which investors can keep track of all their investments and get regular updates. The only thing required from the investor is that they need to create an account with the website before they start trading. And most of them maintain not one but two sites, one they use for trial and learning purposes, while the other is for regular trading.
It is normal for a person to incur losses during their initial investments but with practice they will master the art of following trends. And once they have set their feet firmly in the ground there is no turning back. The worldwide web offers plenty of options through which one can spend less time than before but double their earnings. All they need to do is follow the rules of business forex online trading to assess each of the currencies and play based on the reports generated periodically. This will not only yield them high returns but also help them reduce the risk factor with every investment made. And while dealing online, they can make buy or sell decisions all 24 hours of the day as someone somewhere is still up and trading in the foreign exchange. Even while they are sleeping, they might earn about 100 pips through the exchange because the other country might be awake doing business.
Nick Schultz is a Forex Trading expert who recently developed an eCourse that details a step by step process for success Forex investing. If you are interested in learning more about his "9 Steps to Better Forex Investing" eCourse and learning how to make greater profits from your Forex Trading, please go here right now! : http://www.forexinvestingcourse.com
วันเสาร์ที่ 15 ธันวาคม พ.ศ. 2550
Forex Trading - Keeping Disciplined On The Forex Market
Forex Trading - Keeping Disciplined On The Forex Market
by Dane Stanton
When it comes to trading on the forex market, there is nothing more important that finding a strategy and sticking too it! It's so easy to get sidetracked when you hear about someone making huge trades using his or hers new secret strategy! The majority of new strategies are designed to work using outside influences, which is always going to be risky. Sure they might make a lot of money initially but what about in the long run? It's best to find a proven strategy and become an expert at using this strategy to make successful trade after successful trade on the forex market.
The Number One Reason Why People Fail In The Forex Market
You know, it's hard to say that most people fail just because they weren't willing to stick with one proven strategy, but unfortunately there is no bigger cause. I'm not going to say that trading in the forex market has nothing to do with luck, because it's not true, luck plays a huge part. We can only predict what might happen in the future, we can't be certain that it is going to up or down.
There are however, proven strategies that enable investors to first survive in the market and that's what it should all be about at first. The longer you survive in forex, the more you learn and inevitably success will follow. This is where discipline comes into play.
Sticking to one particular strategy(and there are loads, which we won't have to go through today, but you can learn about them for free all over the internet) making sure you are never opening trades that you can't afford, will give you a chance to understand how the forex market works and eventually after a firm understanding of the basic principles, you will be able to spot a good trade from a bad one just like how a mechanic spots a problem in an engine.
Be The Hedgehog And Not The Fox!
If you are aware of the story of the fox and the hedgehog you will know what I am talking about here. The fox spends day after day trying new things to catch the hedgehog. He is a very cunning animal and has the ability to create brilliant strategies, but unfortunately every new strategy he tries, he always seems to get pricked by the hedgehog. You see the hedgehog has perfected one strategy and that is whenever the fox pounces all he has to do is crawl up into a ball and as a result he stays safe and the fox gets a mouthful of spikes.
The moral of the story? Be like the hedgehog and stick with one proven strategy that works universally and become an expert at it. If it works for everyone else, then why shouldn't it work for you? Don't be the fox and jump from one strategy to another just because it didn't work the first time. The result remember for the fox was a mouthful of spikes, for you it could be much worse!
by Dane Stanton
When it comes to trading on the forex market, there is nothing more important that finding a strategy and sticking too it! It's so easy to get sidetracked when you hear about someone making huge trades using his or hers new secret strategy! The majority of new strategies are designed to work using outside influences, which is always going to be risky. Sure they might make a lot of money initially but what about in the long run? It's best to find a proven strategy and become an expert at using this strategy to make successful trade after successful trade on the forex market.
The Number One Reason Why People Fail In The Forex Market
You know, it's hard to say that most people fail just because they weren't willing to stick with one proven strategy, but unfortunately there is no bigger cause. I'm not going to say that trading in the forex market has nothing to do with luck, because it's not true, luck plays a huge part. We can only predict what might happen in the future, we can't be certain that it is going to up or down.
There are however, proven strategies that enable investors to first survive in the market and that's what it should all be about at first. The longer you survive in forex, the more you learn and inevitably success will follow. This is where discipline comes into play.
Sticking to one particular strategy(and there are loads, which we won't have to go through today, but you can learn about them for free all over the internet) making sure you are never opening trades that you can't afford, will give you a chance to understand how the forex market works and eventually after a firm understanding of the basic principles, you will be able to spot a good trade from a bad one just like how a mechanic spots a problem in an engine.
Be The Hedgehog And Not The Fox!
If you are aware of the story of the fox and the hedgehog you will know what I am talking about here. The fox spends day after day trying new things to catch the hedgehog. He is a very cunning animal and has the ability to create brilliant strategies, but unfortunately every new strategy he tries, he always seems to get pricked by the hedgehog. You see the hedgehog has perfected one strategy and that is whenever the fox pounces all he has to do is crawl up into a ball and as a result he stays safe and the fox gets a mouthful of spikes.
The moral of the story? Be like the hedgehog and stick with one proven strategy that works universally and become an expert at it. If it works for everyone else, then why shouldn't it work for you? Don't be the fox and jump from one strategy to another just because it didn't work the first time. The result remember for the fox was a mouthful of spikes, for you it could be much worse!
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