Trading The Online Forex Market
Let's look at some of the things that drive the trading on the online foreign exchange market, also known as the Forex. In particular, let's look at Forex terms and concepts. Technical Analysis Technical analysis attempts to forecast future price movements by examining past market data. This involves using various technical indicators that help you decipher what is going on in the market i.e. are we in an uptrend, downtrend, or are we going nowhere? Some of these technical indicators include: moving averages, stochastics, relative strength index (RSI), Bollinger Bands, MACD, Fibonacci retracements, and others. These are visual representations placed on a trading chart to help the trader make a decision whether to buy, sell or stay out of a market. Fundamental Analysis for the Online Foreign Exchange Fundamental analysis studies the main underlying elements and variable that help influence the direction of the currency. Some of these elements are government policies, economic indicators (such as retail sales numbers, non farm payrolls, housing starts, Consumer Price Index, Producer Price Index, and Gross Domestic Product), etc. Basically, fundamental analysis attempts to use those economic numbers (i.e. news events) to help show traders where the economy and thus markets are headed. One needs to be aware and prepared for the various news events that are planned to be announced. Many of the fundamental reports are posted at certain times of the day/week/month so it is fairly easy to get prepared for them. NOTE: When trading, it is essential to use both fundamental and technical analysis to help you make decisions. While you may have technical analysis down pat, ignoring the fundamentals can cost you money. For example, letís say that your indicators are all showing an uptrend is continuing in a pairing consisting of the US Dollar. You feel it is rebounding. You ignore the fact that there is a major announcement scheduled at 9:00am EST about the credit market. The news comes at 9:00 that 2 major US banks and mortgage companies just announced they are going to lose $30 billion in the sub-prime mortgage fiasco. You are long in the US Dollar market -- well guess what just happened? You probably just experienced a 50-200 pip drop in that pairing -- in the matter of seconds! There are a number of online financial calendars that you can use to help you keep track of the major key indicator announcements. These sites include: http://Bloomberg.Com, http://Briefing.Com, Yahoo U.S. Economic Calendar, http://CNNfn.Com, http://FXWeek.Com, and many others. There are literally hundreds of online resources out there (websites and blogs) that can help you gather information about trading this market. Many of these resources are free and most Forex brokers will have a library of educational materials that you can study. Some brokers will also offer free online courses and videos. They want you to trade. That is how they make money, so any good broker will offer you many ways to help train you. Some of the key areas you need to focus on are Forex basics and terminology (i.e. what a pip is and the best times to trade), your broker's trading platform (i.e. the functionality), basic charting, fundamental analysis, technical analysis, and the psychological aspects of trading in general. The point is: It is not that difficult to keep track of the major announcements and it's easy to learn more, every day, about trading the Forex market. Don't let laziness cause you to lose money!
วันศุกร์ที่ 28 พฤศจิกายน พ.ศ. 2551
The Forex Market Trading Plan
The Forex Market Trading Plan
This article will explain exactly why you need a Forex market trading plan. Furthermore, we'll give you a couple of simple ideas to get started with your own personal foreign exchange trading plan. When is the last time you took a trip out of state to a place you have never been before? Did you get into your vehicle and just start driving, hoping that you will just somehow find your destination? Ok, yes, perhaps it would be fun to discover new territory without a road map, but most times you will find it hard and very frustrating to get where you want to go. That is why you make plans, and creating a trading plan is no different. It is, in fact, way more important than a simple road trip! Forex marketer trading plans are meant to make you create a roadmap on where you are currently, where you want to go, and the rules you will need in order to help you get there. Creating an FX trading plan involves writing down your goals and objectives in your trading venture. You will want to keep it as simple as possible, but with enough detail and with strict rules so that when you start to question your trading, you can look back at your plan and get back on track. Having a trading plan is a key to consistency, which is the cornerstone of your trading life. Having a trading plan also allows for continuing growth and expansion of your trading career. If you stick with your plan, you should be able to gradually and continually increase your trading account, giving you the ability to trade larger lots, and hopefully make a good living from doing so. There is an adage in the trading community that you will hear and see quite often: Plan Your Trade and Trade Your Plan You will find that this is very easy to say, but can be very difficult to do. However, it is essential that you follow the advice. All it means is that you create your trading guidelines (setups to watch for, entry rules and exits, and what you are allowed to risk on each trade) and then follow through with what you have written. Here are some key things that make up a trading plan: Your System: Are you a day trader or a swing trader? What charts do you watch? What indicators do you watch? What are your entries and exits? What is the most you are willing to risk per trade? Your Goals: What dollar amount do you want to try and achieve the first month, second month, etc.? What is your yearly income goal? What dollar amount is your "drop dead" figure (meaning at what point or loss of capital do you stop trading for good)? What do you want to get out of trading? Your Weaknesses: Do you tend to overtrade FX? Do you stick with your money management rules? Do you overreact with anger? You can find sample trading plans on the internet and please use them to create your own, custom Forex trading plan. Create it, stick to it, read it, re-read it, and revise it as needed. Doing so will give you an advantage over many other traders that simple will not take the time to create one!
This article will explain exactly why you need a Forex market trading plan. Furthermore, we'll give you a couple of simple ideas to get started with your own personal foreign exchange trading plan. When is the last time you took a trip out of state to a place you have never been before? Did you get into your vehicle and just start driving, hoping that you will just somehow find your destination? Ok, yes, perhaps it would be fun to discover new territory without a road map, but most times you will find it hard and very frustrating to get where you want to go. That is why you make plans, and creating a trading plan is no different. It is, in fact, way more important than a simple road trip! Forex marketer trading plans are meant to make you create a roadmap on where you are currently, where you want to go, and the rules you will need in order to help you get there. Creating an FX trading plan involves writing down your goals and objectives in your trading venture. You will want to keep it as simple as possible, but with enough detail and with strict rules so that when you start to question your trading, you can look back at your plan and get back on track. Having a trading plan is a key to consistency, which is the cornerstone of your trading life. Having a trading plan also allows for continuing growth and expansion of your trading career. If you stick with your plan, you should be able to gradually and continually increase your trading account, giving you the ability to trade larger lots, and hopefully make a good living from doing so. There is an adage in the trading community that you will hear and see quite often: Plan Your Trade and Trade Your Plan You will find that this is very easy to say, but can be very difficult to do. However, it is essential that you follow the advice. All it means is that you create your trading guidelines (setups to watch for, entry rules and exits, and what you are allowed to risk on each trade) and then follow through with what you have written. Here are some key things that make up a trading plan: Your System: Are you a day trader or a swing trader? What charts do you watch? What indicators do you watch? What are your entries and exits? What is the most you are willing to risk per trade? Your Goals: What dollar amount do you want to try and achieve the first month, second month, etc.? What is your yearly income goal? What dollar amount is your "drop dead" figure (meaning at what point or loss of capital do you stop trading for good)? What do you want to get out of trading? Your Weaknesses: Do you tend to overtrade FX? Do you stick with your money management rules? Do you overreact with anger? You can find sample trading plans on the internet and please use them to create your own, custom Forex trading plan. Create it, stick to it, read it, re-read it, and revise it as needed. Doing so will give you an advantage over many other traders that simple will not take the time to create one!
Forex Trading Online and Money Management
Forex Trading Online and Money Management
If you're going to be Forex trading online then you need to understand the basic principles of money management. In this article you'll learn several key ideas that relate to both foreign trading and general market trading. If you don't pay attention to this rules, you could lose a lot of money quickly. You know the old saying: "Never place all of your eggs in one basket." This is very true of the Forex market (or any financial market for that matter.) It is widely held that one should NEVER risk more than 5% (or less) on any one trade. This is the basis behind money (or risk) management. It helps keep you from getting emotionally attached to the trade. It is VERY easy to get angry at the market for a trade that went bad -- you will want to "get even." Everyone has experienced this. BUT if you stick to the 5% or less rule, it will help contain that urge to invest more money into a losing trade. Oh, and you will lose money trading if you don't. Period. There is not one person on this planet that always makes good trades. It is simply not possible...well, ok: it's simple not probable. If a person were to be a perfect trader, we would have no markets. They would dominate everything. If you read any trading book, magazine or website (and you should), if they are intelligent at all, they will all tell you the same thing. You will lose money trading. The key is to limit your risk as best as you can and to stick to your money management plan. Most traders lose money because of a lack of a trading plan and not having strict money management guidelines. It is important that you understand the risks involved in Forex trading. You need not to over invest or be overconfident at the thrill of opportunity of making huge money. Create a money management plan by simply writing down your goal and objectives. You know what amount of money you are going to start your account with, so take that number and do the calculations to see how much money you can risk with each trade...remember: no more than 5%, less if possible. Write it down and keep it in front of you at all times. Remind yourself of your limits. Trading the Forex market is a skill that takes quite a bit of time to learn. And while you may have some good success at first, keep yourself grounded. It will become very tempting, especially after having quite a few winning trades in a row, to become overconfident and start risking more than your allotted 5% limit. You are setting yourself up for disaster if you fall into this false sense of "I CAN'T LOSE" mentality. Take your time, study the nuances of the market, and set up a strict money management plan. This will help you stay in this game longer than the average trader!
If you're going to be Forex trading online then you need to understand the basic principles of money management. In this article you'll learn several key ideas that relate to both foreign trading and general market trading. If you don't pay attention to this rules, you could lose a lot of money quickly. You know the old saying: "Never place all of your eggs in one basket." This is very true of the Forex market (or any financial market for that matter.) It is widely held that one should NEVER risk more than 5% (or less) on any one trade. This is the basis behind money (or risk) management. It helps keep you from getting emotionally attached to the trade. It is VERY easy to get angry at the market for a trade that went bad -- you will want to "get even." Everyone has experienced this. BUT if you stick to the 5% or less rule, it will help contain that urge to invest more money into a losing trade. Oh, and you will lose money trading if you don't. Period. There is not one person on this planet that always makes good trades. It is simply not possible...well, ok: it's simple not probable. If a person were to be a perfect trader, we would have no markets. They would dominate everything. If you read any trading book, magazine or website (and you should), if they are intelligent at all, they will all tell you the same thing. You will lose money trading. The key is to limit your risk as best as you can and to stick to your money management plan. Most traders lose money because of a lack of a trading plan and not having strict money management guidelines. It is important that you understand the risks involved in Forex trading. You need not to over invest or be overconfident at the thrill of opportunity of making huge money. Create a money management plan by simply writing down your goal and objectives. You know what amount of money you are going to start your account with, so take that number and do the calculations to see how much money you can risk with each trade...remember: no more than 5%, less if possible. Write it down and keep it in front of you at all times. Remind yourself of your limits. Trading the Forex market is a skill that takes quite a bit of time to learn. And while you may have some good success at first, keep yourself grounded. It will become very tempting, especially after having quite a few winning trades in a row, to become overconfident and start risking more than your allotted 5% limit. You are setting yourself up for disaster if you fall into this false sense of "I CAN'T LOSE" mentality. Take your time, study the nuances of the market, and set up a strict money management plan. This will help you stay in this game longer than the average trader!
วันจันทร์ที่ 17 พฤศจิกายน พ.ศ. 2551
Key Benefits of Online Forex Trading
Key Benefits of Online Forex Trading
In the past, online forex trading was limited to only big financial institutions and banks who were the only ones benefiting out of it. But, now due to the availability of the Internet, brokers, individuals, brokerage firms and governments agencies, we can have an access to online forex trading with ease. Internet technology has enabled every one to reap the benefits of online forex trading. Online forex trading is considered as the largest financial market of the world due to the huge volume of business handled everyday.
Online forex trading has become very popular due to the ability of the computers to make complex charts which was not possible in the past as people could not afford to access the internet and high powered computers in their homes.
Benefits of online forex trading:
With the advent of the online forex trading, forex traders can do business round the clock irrespective of the geographical location they have been placed. This is very important in contributing to the growth of the forex trading industry to the extent that the daily transactions have been increased to two trillion USD.
Opening of an online forex trading account is very easy as there are many people who can offer this kind service to the trader. But they need to be very sure that they too deal with the same kind of currencies which the trader is interested in. There are free practice accounts allowing to test the skills of the trader offered by the provider with the usage of funny money before making transaction with real cash.
The traders can trade in different markets with different currencies at the same time without any problems. This is only possible because of online forex trading. This has brought in lot of flexibility and liquidity in online forex trading. The trader is able to trade and access quotes in real time with online forex transactions.
Another important benefit of online forex trading is that, it has eliminated the bulls and bears of the trade. We can say that the only trade market without the bulls and bears is the online forex trading market.
The most prominent feature of online forex trading is the way it is being operated transparently. There is no hide and seek involved in the process. It makes it easy to compare and spot trends making the decision to buy or sell at the right time with ease. This is only possible due to availability of the information instantly to everyone all over the globe.
Online forex trading does not involve any commission, or exchange fees, or hidden costs etc. The trade is done in a very fast pace as there is no kind of any delay involved in it. It takes only seconds to execute the trade, fill or confirm the same. Also it provides greater leverage to the small traders than any other market could offer them.
Although there is lot of benefits involved in the online forex trading, there is also a flip side to it. Not everyone who had invested their money in online forex trading has become rich. The reason for that is online forex trading is very risky. The trader has to take a decision within a transaction of the second which can end up with a profit or with a loss.
In the past, online forex trading was limited to only big financial institutions and banks who were the only ones benefiting out of it. But, now due to the availability of the Internet, brokers, individuals, brokerage firms and governments agencies, we can have an access to online forex trading with ease. Internet technology has enabled every one to reap the benefits of online forex trading. Online forex trading is considered as the largest financial market of the world due to the huge volume of business handled everyday.
Online forex trading has become very popular due to the ability of the computers to make complex charts which was not possible in the past as people could not afford to access the internet and high powered computers in their homes.
Benefits of online forex trading:
With the advent of the online forex trading, forex traders can do business round the clock irrespective of the geographical location they have been placed. This is very important in contributing to the growth of the forex trading industry to the extent that the daily transactions have been increased to two trillion USD.
Opening of an online forex trading account is very easy as there are many people who can offer this kind service to the trader. But they need to be very sure that they too deal with the same kind of currencies which the trader is interested in. There are free practice accounts allowing to test the skills of the trader offered by the provider with the usage of funny money before making transaction with real cash.
The traders can trade in different markets with different currencies at the same time without any problems. This is only possible because of online forex trading. This has brought in lot of flexibility and liquidity in online forex trading. The trader is able to trade and access quotes in real time with online forex transactions.
Another important benefit of online forex trading is that, it has eliminated the bulls and bears of the trade. We can say that the only trade market without the bulls and bears is the online forex trading market.
The most prominent feature of online forex trading is the way it is being operated transparently. There is no hide and seek involved in the process. It makes it easy to compare and spot trends making the decision to buy or sell at the right time with ease. This is only possible due to availability of the information instantly to everyone all over the globe.
Online forex trading does not involve any commission, or exchange fees, or hidden costs etc. The trade is done in a very fast pace as there is no kind of any delay involved in it. It takes only seconds to execute the trade, fill or confirm the same. Also it provides greater leverage to the small traders than any other market could offer them.
Although there is lot of benefits involved in the online forex trading, there is also a flip side to it. Not everyone who had invested their money in online forex trading has become rich. The reason for that is online forex trading is very risky. The trader has to take a decision within a transaction of the second which can end up with a profit or with a loss.
Risks by the foreign exchange on Forex
Risks by the foreign exchange on Forex
The Forex is essentially risk-bearing. By the evaluation of the grade of a possible risk accounted should be the following kinds of it: exchange rate risk, interest rate risk, and credit risk, country risk.
Exchange rate risk. Exchange rate risk is the effect of the continuous shift in the worldwide market supply and demand balance on an outstanding foreign exchange position. For the period it is outstanding, the position will be subject to all the price changes. The most popular measures to cut losses short and ride profitable positions that losses should be kept within manageable limits are the position limit and the loss limit. By the position limitation a maximum amount of a certain currency a trader is allowed to carry at any single time during the regular trading hours is to be established. The loss limit is a measure designed to avoid unsustainable losses made by traders by means of stop-loss levels setting.
Interest rate risk. Interest rate risk refers to the profit and loss generated by fluctuations in the forward spreads, along with forward amount mismatches and maturity gaps among transactions in the foreign exchange book. This risk is pertinent to currency swaps, forward outright, futures, and options (See below). To minimize interest rate risk, one sets limits on the total size of mismatches. A common approach is to separate the mismatches, based on their maturity dates, into up to six months and past six months. All the transactions are entered in computerized systems in order to calculate the positions for all the dates of the delivery, gains and losses. Continuous analysis of the interest rate environment is necessary to forecast any changes that may impact on the outstanding gaps.
Credit risk. Credit risk refers to the possibility that an outstanding currency position may not be repaid as agreed, due to a voluntary or involuntary action by a counter party. In these cases, trading occurs on regulated exchanges, such as the clearinghouse of Chicago. The following forms of credit risk are known:
1. Replacement risk occurs when counterparties of the failed bank find their books are subjected to the danger not to get refunds from the bank, where appropriate accounts became unbalanced.
2. Settlement risk occurs because of the time zones on different continents. Consequently, currencies may be traded at the different price at different times during the trading day. Australian and New Zealand dollars are credited first, then Japanese yen, followed by the European currencies and ending with the U.S. dollar. Therefore, payment may be made to a party that will declare insolvency (or be declared insolvent) immediately after, but prior to executing its own payments.
Therefore in assessing the credit risk, end users must consider not only the market value of their currency portfolios, but also the potential exposure of these portfolios. The potential exposure may be determined through probability analysis over the time to maturity of the outstanding position. The computerized systems currently available are very useful in implementing credit risk policies. Credit lines are easily monitored. In addition, the matching systems introduced in foreign exchange since April 1993 are used by traders for credit policy implementation as well. Traders input the total line of credit for a specific counterparty. During the trading session, the line of credit is automatically adjusted. If the line is fully used, the system will prevent the trader from further dealing with that counterparty. After maturity, the credit line reverts to its original level.
Dictatorship risk. Dictatorship (sovereign) risk refers to the government's interference in the Forex activity. Although theoretically present in all foreign exchange instruments, currency futures are, for all practical purposes, excepted from country risk, because the major currency futures markets are located in the USA. Hence, traders have to realize that kind of the risk and be in state to account possible administrative restrictions.
The Forex is essentially risk-bearing. By the evaluation of the grade of a possible risk accounted should be the following kinds of it: exchange rate risk, interest rate risk, and credit risk, country risk.
Exchange rate risk. Exchange rate risk is the effect of the continuous shift in the worldwide market supply and demand balance on an outstanding foreign exchange position. For the period it is outstanding, the position will be subject to all the price changes. The most popular measures to cut losses short and ride profitable positions that losses should be kept within manageable limits are the position limit and the loss limit. By the position limitation a maximum amount of a certain currency a trader is allowed to carry at any single time during the regular trading hours is to be established. The loss limit is a measure designed to avoid unsustainable losses made by traders by means of stop-loss levels setting.
Interest rate risk. Interest rate risk refers to the profit and loss generated by fluctuations in the forward spreads, along with forward amount mismatches and maturity gaps among transactions in the foreign exchange book. This risk is pertinent to currency swaps, forward outright, futures, and options (See below). To minimize interest rate risk, one sets limits on the total size of mismatches. A common approach is to separate the mismatches, based on their maturity dates, into up to six months and past six months. All the transactions are entered in computerized systems in order to calculate the positions for all the dates of the delivery, gains and losses. Continuous analysis of the interest rate environment is necessary to forecast any changes that may impact on the outstanding gaps.
Credit risk. Credit risk refers to the possibility that an outstanding currency position may not be repaid as agreed, due to a voluntary or involuntary action by a counter party. In these cases, trading occurs on regulated exchanges, such as the clearinghouse of Chicago. The following forms of credit risk are known:
1. Replacement risk occurs when counterparties of the failed bank find their books are subjected to the danger not to get refunds from the bank, where appropriate accounts became unbalanced.
2. Settlement risk occurs because of the time zones on different continents. Consequently, currencies may be traded at the different price at different times during the trading day. Australian and New Zealand dollars are credited first, then Japanese yen, followed by the European currencies and ending with the U.S. dollar. Therefore, payment may be made to a party that will declare insolvency (or be declared insolvent) immediately after, but prior to executing its own payments.
Therefore in assessing the credit risk, end users must consider not only the market value of their currency portfolios, but also the potential exposure of these portfolios. The potential exposure may be determined through probability analysis over the time to maturity of the outstanding position. The computerized systems currently available are very useful in implementing credit risk policies. Credit lines are easily monitored. In addition, the matching systems introduced in foreign exchange since April 1993 are used by traders for credit policy implementation as well. Traders input the total line of credit for a specific counterparty. During the trading session, the line of credit is automatically adjusted. If the line is fully used, the system will prevent the trader from further dealing with that counterparty. After maturity, the credit line reverts to its original level.
Dictatorship risk. Dictatorship (sovereign) risk refers to the government's interference in the Forex activity. Although theoretically present in all foreign exchange instruments, currency futures are, for all practical purposes, excepted from country risk, because the major currency futures markets are located in the USA. Hence, traders have to realize that kind of the risk and be in state to account possible administrative restrictions.
Forex News Trading Tip: How To Trade The FOMC
Forex News Trading Tip: How To Trade The FOMC
The Federal Open Market Committee (FOMC) decision on interest rates is one of the most powerful market movers in the forex market and when the markets move traders trading the news have the opportunity to make money. The FOMC sets the discount rate or federal funds rate and because interest rates are set higher to induce foreign investment and therefore fight inflation during times of prosperity and lower to increase spending during recessions they are one of the main factors influencing the strength of the dollar. Economic indicators play a huge role in the forex trading especially for traders who approach the market through fundamental analysis and trade the news. The Federal Open Market Committee (FOMC) interest rate decision is one of the most influential indicators for the US dollar and you can be sure after the news is released there is going to be volatility in the markets and volatility is what traders thrive on. I have heard many 'traders' say never to trade the news and especially the FOMC. Although the FOMC interest decision is a news event and can fall under the category of through fundamental analysis I am a technician and I believe that charts always price everything in. However I guarantee the market does not know what exactly the Feds comments and decision will be, therefore it is not priced in yet and this will cause the markets to react when they do find out. This is confirmed by the change in price after the decision and the continuation in the days following. I have been trading the Fed for eight years now and yes I have been burnt in the past and that is exactly how I have come to learn how to trade it properly. The most common pattern to trade the Fed is the whip-saw. But do not be fearful of it, embrace it. Here is how it happens, first there is a large spike one direction (traders come in and follow that direction)followed by a large spike in the opposite direction (those same traders now sell their first position at a loss and reverse their position - this is when I take a position in the direction of the original move)followed by an extended move back in the direction of the original spike (all the emotional trades are left sick to their stomachs) and I am left holding a very nice position setting myself up to capture a larger than average market move. If this pattern does not play out exactly as outlined I stand on the sidelines and do not trade at all. Because the markets are moving fast in the period following the FOMC interest rate decision I am watching a very short time frame, mainly the one and five minute charts. Jordan Lindsey is a professional trader who's personal forex trading group 'Conquering The Markets' utilizes his forex trading strategies to trade his forex trading systems with sound money management and together work toward helping people all over the world live better lives.
The Federal Open Market Committee (FOMC) decision on interest rates is one of the most powerful market movers in the forex market and when the markets move traders trading the news have the opportunity to make money. The FOMC sets the discount rate or federal funds rate and because interest rates are set higher to induce foreign investment and therefore fight inflation during times of prosperity and lower to increase spending during recessions they are one of the main factors influencing the strength of the dollar. Economic indicators play a huge role in the forex trading especially for traders who approach the market through fundamental analysis and trade the news. The Federal Open Market Committee (FOMC) interest rate decision is one of the most influential indicators for the US dollar and you can be sure after the news is released there is going to be volatility in the markets and volatility is what traders thrive on. I have heard many 'traders' say never to trade the news and especially the FOMC. Although the FOMC interest decision is a news event and can fall under the category of through fundamental analysis I am a technician and I believe that charts always price everything in. However I guarantee the market does not know what exactly the Feds comments and decision will be, therefore it is not priced in yet and this will cause the markets to react when they do find out. This is confirmed by the change in price after the decision and the continuation in the days following. I have been trading the Fed for eight years now and yes I have been burnt in the past and that is exactly how I have come to learn how to trade it properly. The most common pattern to trade the Fed is the whip-saw. But do not be fearful of it, embrace it. Here is how it happens, first there is a large spike one direction (traders come in and follow that direction)followed by a large spike in the opposite direction (those same traders now sell their first position at a loss and reverse their position - this is when I take a position in the direction of the original move)followed by an extended move back in the direction of the original spike (all the emotional trades are left sick to their stomachs) and I am left holding a very nice position setting myself up to capture a larger than average market move. If this pattern does not play out exactly as outlined I stand on the sidelines and do not trade at all. Because the markets are moving fast in the period following the FOMC interest rate decision I am watching a very short time frame, mainly the one and five minute charts. Jordan Lindsey is a professional trader who's personal forex trading group 'Conquering The Markets' utilizes his forex trading strategies to trade his forex trading systems with sound money management and together work toward helping people all over the world live better lives.
Forex - What is it?
Forex - What is it?
The international currency market Forex is a special kind of the world financial market. Trader’s purpose on the Forex to get profit as the result of foreign currencies purchase and sale. The exchange rates of all currencies being in the market turnover are permanently changing under the action of the demand and supply alteration. The latter is a strong subject to the influence of any important for the human society event in the sphere of economy, politics and nature. Consequently current prices of foreign currencies evaluated for instance in the US dollars fluctuate towards its higher and lower meanings. Using these fluctuations in accordance with a known principle “buy cheaper – sell higher” traders obtain gains. Forex is different in compare to all other sectors of the world financial system thanks to his heightened sensibility to a large and continuously changing number of factors, accessibility to all individual and corporative traders, exclusively high trade turnover which creates an ensured liquidity of traded currencies and the round - the clock business hours which enable traders to deal after normal hours or during national holidays in their country finding markets abroad open.
Just as on any other market the trading on Forex, along with an exclusively high potential profitability, is essentially risk - bearing one. It is possible to gain a success on it only after a certain training including a familiarization with the structure and kinds of Forex, the principles of currencies price formation, the factors affecting prices alterations and trading risks levels, sources of the information necessary to account all those factors, techniques of the analysis and prediction of the market movements as well as with the trading tools and rules. An important role in the process of the preparation for the trading on Forex belongs to the demotrading (that is to trade using a demo-account with some virtual money), which allows to testify all the theoretical knowledge and to obtain a required minimum of the trade experience not being subjected to a material damage.
The international currency market Forex is a special kind of the world financial market. Trader’s purpose on the Forex to get profit as the result of foreign currencies purchase and sale. The exchange rates of all currencies being in the market turnover are permanently changing under the action of the demand and supply alteration. The latter is a strong subject to the influence of any important for the human society event in the sphere of economy, politics and nature. Consequently current prices of foreign currencies evaluated for instance in the US dollars fluctuate towards its higher and lower meanings. Using these fluctuations in accordance with a known principle “buy cheaper – sell higher” traders obtain gains. Forex is different in compare to all other sectors of the world financial system thanks to his heightened sensibility to a large and continuously changing number of factors, accessibility to all individual and corporative traders, exclusively high trade turnover which creates an ensured liquidity of traded currencies and the round - the clock business hours which enable traders to deal after normal hours or during national holidays in their country finding markets abroad open.
Just as on any other market the trading on Forex, along with an exclusively high potential profitability, is essentially risk - bearing one. It is possible to gain a success on it only after a certain training including a familiarization with the structure and kinds of Forex, the principles of currencies price formation, the factors affecting prices alterations and trading risks levels, sources of the information necessary to account all those factors, techniques of the analysis and prediction of the market movements as well as with the trading tools and rules. An important role in the process of the preparation for the trading on Forex belongs to the demotrading (that is to trade using a demo-account with some virtual money), which allows to testify all the theoretical knowledge and to obtain a required minimum of the trade experience not being subjected to a material damage.
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