How to Read the Forex Quote While Trading in Forex Market
To have a better insight about currency exchange rate and how it affects the value of your Forex investment, we will discuss everything about Forex Quote in this article.
As a Forex trading broker you have to basically understand that cumulative buying and selling of a currency in the Forex market causes the value of investment to fluctuate. Meaning, it may either go down or move up because of cumulative buying and selling that takes place in the Forex market.
There are many factors that are responsible for causing such fluctuations in exchange rate. Factors like, political and social or fundamental economic environment of a country, central banks fiscal policy of these countries, interest rate adjustment etc to are some of the popular factors.
Currencies are traded in pairs and each currency has its own symbol. For the Euro dollar- it is EUR, Japanese Yen - it is JPY, for the Pounds Sterling - it is GBP, and for the Swiss Franc - it is CHF. Hence, EUR/USD would be Euro-Dollar pair. GBP/USD would be pounds Sterling-Dollar pair and USD/CHF would be Dollar-Swiss Franc pair and so on and so forth.
You will always see the USD quoted first (with exceptions like Pounds Sterling, Euro Dollar, Australia Dollar (AUD) and New Zealand Dollar (NZD). The first currency quoted is called the base currency and the U.S. dollar is regarded as the central currency of the Forex market and it is part of majority of the forex transactions happening across the globe.
So now coming back to our basic lesson - how are these currency pairs quoted on the Forex market and how to read the quotes? The Forex trader will see two distinct numbers on all Forex quotes. The first one is the bid and the second is offer or asking price.
When you are reading these numbers you will notice that there exists a difference between the bid and the offer price. This difference is what is termed as the spread.
There is another popular term that you will come across called Pip. Pip is the way by which currency profit is measured. PIP stands for price interest point.
The single most important objective of a Forex Trader is to book profits from currency movements and fluctuations in the foreign exchange market. Along with the risks, even the rewards of trading in Forex are huge and the amount of money a Forex trader can earn can be life changing and may ultimately lead you to achieve financial freedom that you never even dared to dream of.
But to get there you will require continuous and in-depth understanding and training in Forex. This may include understanding fundamental analysis, technical analysis, chart pattern and formation, trade management, risk management such as stop loss and profit target and finally money management - trading beyond your means is assign of bad money management and can ruin you to the extent that may take you long to recover from. But if you can get the right Forex Trading knowledge, you will enjoy long term currency trading success and build wealth of a lifetime.
แสดงบทความที่มีป้ายกำกับ Forex Quote แสดงบทความทั้งหมด
แสดงบทความที่มีป้ายกำกับ Forex Quote แสดงบทความทั้งหมด
วันพฤหัสบดีที่ 20 สิงหาคม พ.ศ. 2552
วันพุธที่ 6 กุมภาพันธ์ พ.ศ. 2551
Forex Managed Account
Forex Managed Account
by Brian Tewes
Investing in the Forex market is a great opportunity to diversify and benefit from the liquidity that global foreign exchange provides. A good way to leap into Forex trading is through Forex managed accounts while receiving professional training and learning how to trade by oneself. Ultimately, good trader's fine tunes their own trading system and learns how the market reacts to specific news and patterns. The big players in Forex trading are primarily central banks, commercial banks, non-banking International Corporation, hedge funds, private investors and speculators. Huge investments in form of deposits are required in Forex trading hence previously small investors were unable to trade in the Forex market. However until recent years, with the continuing growth of the internet and competition, small investors can now open a Forex account with as little as $250.
There are a few factors as to why Forex is starting to attract more small investors. For one, Forex can be traded 24 hours a day 5 days a week. Before now, trades used to be made through phone, but these days, the internet now offers traders the opportunity to keep an eye on their trading accounts from anywhere in the world and also execute market trades in real time with the click of a mouse button. Managed account accommodates those investors who wish to allocate part of their initial investment capital to the Forex market but are either unable to watch the markets 24 hours a day or prefer to have their risk capital managed by professionals. Managed Forex trading depends on certain strategies which may be known to the investors or exclusively to the fun managers.
It is not enough for one to simply invest money without knowing the basics of what s/he is into. Even if a Forex fund manager does not know the technicalities involved in trading, it makes a lot of sense for such a person to know what goes up and comes down or stays there as it concerns the trading activities. Having a Forex managed account can be compared to an investment with a mutual fund related to the buying and selling of foreign currencies, but with one notable difference being that with a managed Forex account you can be in control of your account. A modest managed account whether it is traded by another person or an automated robot can earn up to 20% per month or more depending on how good the system is. There have been stories of managed accounts earning 20 times the amount they started within a year.
However, finding an automated system that is consistently profitable is a difficult challenge and most accounts are on the slower side of about 5% to 10% per month. Searching for a good managed Forex account is not an easy task. Some trading systems take too many trades causing the trader to margin out too soon or give poor signals all together. Clients are advised to be sure of trading system that is able to back up its data with proven results and back tests their system in real-time. Choosing an automated trading system with the highest monthly returns isn't always the best choice. Depending on the broker that is managing your account and their ability to pay out is what counts the most. There are hundreds of Forex brokers and not every broker is able to fill positions on trades.
by Brian Tewes
Investing in the Forex market is a great opportunity to diversify and benefit from the liquidity that global foreign exchange provides. A good way to leap into Forex trading is through Forex managed accounts while receiving professional training and learning how to trade by oneself. Ultimately, good trader's fine tunes their own trading system and learns how the market reacts to specific news and patterns. The big players in Forex trading are primarily central banks, commercial banks, non-banking International Corporation, hedge funds, private investors and speculators. Huge investments in form of deposits are required in Forex trading hence previously small investors were unable to trade in the Forex market. However until recent years, with the continuing growth of the internet and competition, small investors can now open a Forex account with as little as $250.
There are a few factors as to why Forex is starting to attract more small investors. For one, Forex can be traded 24 hours a day 5 days a week. Before now, trades used to be made through phone, but these days, the internet now offers traders the opportunity to keep an eye on their trading accounts from anywhere in the world and also execute market trades in real time with the click of a mouse button. Managed account accommodates those investors who wish to allocate part of their initial investment capital to the Forex market but are either unable to watch the markets 24 hours a day or prefer to have their risk capital managed by professionals. Managed Forex trading depends on certain strategies which may be known to the investors or exclusively to the fun managers.
It is not enough for one to simply invest money without knowing the basics of what s/he is into. Even if a Forex fund manager does not know the technicalities involved in trading, it makes a lot of sense for such a person to know what goes up and comes down or stays there as it concerns the trading activities. Having a Forex managed account can be compared to an investment with a mutual fund related to the buying and selling of foreign currencies, but with one notable difference being that with a managed Forex account you can be in control of your account. A modest managed account whether it is traded by another person or an automated robot can earn up to 20% per month or more depending on how good the system is. There have been stories of managed accounts earning 20 times the amount they started within a year.
However, finding an automated system that is consistently profitable is a difficult challenge and most accounts are on the slower side of about 5% to 10% per month. Searching for a good managed Forex account is not an easy task. Some trading systems take too many trades causing the trader to margin out too soon or give poor signals all together. Clients are advised to be sure of trading system that is able to back up its data with proven results and back tests their system in real-time. Choosing an automated trading system with the highest monthly returns isn't always the best choice. Depending on the broker that is managing your account and their ability to pay out is what counts the most. There are hundreds of Forex brokers and not every broker is able to fill positions on trades.
วันพุธที่ 30 มกราคม พ.ศ. 2551
Forex Charts - Avoid This Common Deadly Mistake or Lose
Forex Charts - Avoid This Common Deadly Mistake or Lose
by Monica Hendrix
If there is one basic mistake traders make and continue to make it's the one in this article and if you make it you will simply lose all your money and do it quickly, so here is the forex chart mistake to avoid.
The mistake is the forex prices can be predicted on forex charts.
No they can't...
Of course if you are predicting you are hoping and guessing and that won't get you far in any venture in life, let alone forex trading.
Of course there are many vendors who will tell you prices can be predicted with scientific accuracy and the naïve trader swallows it.
The most popular scientific theories are based around the works of - Gann, Elliot wave and Fibonacci.
These guys never made money with their theories and neither will you - because the fact that markets move at all, proves there is no scientific theory... If there were a scientific theory, we would all know the price in advance and there would be no market - common sense really.
Other forex traders predict but they don't believe in scientific theories - their just trying to buy low and sell high and this doesn't work either.
For example - a trader sees the price dip to just above support, assumes it will hold and executes his trading signal. Of course sometimes it works, most of the time it does not.
Rather than hoping guessing or predicting - you need to get the odds in your favour. Forex trading is a game of odds not certainties but get them on your side and you can make a ton of money.
The Way To Win With Forex Charts
Lets say you see prices dip to support you don't buy you wait for momentum to turn up (you can read about momentum oscillators in our other articles) this gives you advance warning of a shift in price velocity and shows the level is likely to hold.
You can also use momentum to follow a break of support and trading breakouts is very profitable.
It's a fact that most big bullish or bearish moves start from new market lows or new highs and by following the breaks with momentum on your side you can catch the biggest trends.
So remember:
The next time you see someone say they can predict market tops or bottoms with 90% market accuracy - you know their lying and that if you try and predict with your forex charts, you simply lose all your money and do it quickly.
Use your forex charts correctly. Trade the odds, confirm each move with momentum and enjoy long term currency trading success.
by Monica Hendrix
If there is one basic mistake traders make and continue to make it's the one in this article and if you make it you will simply lose all your money and do it quickly, so here is the forex chart mistake to avoid.
The mistake is the forex prices can be predicted on forex charts.
No they can't...
Of course if you are predicting you are hoping and guessing and that won't get you far in any venture in life, let alone forex trading.
Of course there are many vendors who will tell you prices can be predicted with scientific accuracy and the naïve trader swallows it.
The most popular scientific theories are based around the works of - Gann, Elliot wave and Fibonacci.
These guys never made money with their theories and neither will you - because the fact that markets move at all, proves there is no scientific theory... If there were a scientific theory, we would all know the price in advance and there would be no market - common sense really.
Other forex traders predict but they don't believe in scientific theories - their just trying to buy low and sell high and this doesn't work either.
For example - a trader sees the price dip to just above support, assumes it will hold and executes his trading signal. Of course sometimes it works, most of the time it does not.
Rather than hoping guessing or predicting - you need to get the odds in your favour. Forex trading is a game of odds not certainties but get them on your side and you can make a ton of money.
The Way To Win With Forex Charts
Lets say you see prices dip to support you don't buy you wait for momentum to turn up (you can read about momentum oscillators in our other articles) this gives you advance warning of a shift in price velocity and shows the level is likely to hold.
You can also use momentum to follow a break of support and trading breakouts is very profitable.
It's a fact that most big bullish or bearish moves start from new market lows or new highs and by following the breaks with momentum on your side you can catch the biggest trends.
So remember:
The next time you see someone say they can predict market tops or bottoms with 90% market accuracy - you know their lying and that if you try and predict with your forex charts, you simply lose all your money and do it quickly.
Use your forex charts correctly. Trade the odds, confirm each move with momentum and enjoy long term currency trading success.
วันพฤหัสบดีที่ 24 มกราคม พ.ศ. 2551
Forex Traders: For The Record
Forex Traders: For The Record
by Harold Hsu
Forex traders live from moment to moment. With today's advanced technology that gives us tick-by-tick live price feeds, we are constantly looking at the trading charts at all times of the day... and we start to become obsessed with every single price fluctuation.
In this climate of rapidly changing market prices, it's not easy to trade while keeping ourselves focused on the big picture. Unfortunately, focusing on the big picture is essential for sustained profitability as a trader.
And that's why it's important to keep some sort of record of all our trades. Some people call it a trading diary, but I personally prefer to call it a trade log. Call it whatever you wish... the idea is to take down your reasons for entering (and exiting) your trades, and to also note down your feelings during those trades.
Now, this idea may turn you off because of its sentimental connotations, but believe me, there's really nothing sentimental about a trade log at all. In fact, the opposite is preferred! You'll need to objectively list down the reasons for your trading actions, so that you can later analyze your trading decisions: "Did I do the right thing?", or "Why did I enter into this trade in the first place?"
These are often the questions we ask ourselves after a trade goes bad. Sometimes it's our fault because we ignored the rules of our trading system, and sometimes it's not our fault at all. The point is to understand whether your losing trades could have been avoided at all.
It's hard to admit it when we make a mistake, and it's the job of a trade log to inform you whether the loss could have been avoided.
by Harold Hsu
Forex traders live from moment to moment. With today's advanced technology that gives us tick-by-tick live price feeds, we are constantly looking at the trading charts at all times of the day... and we start to become obsessed with every single price fluctuation.
In this climate of rapidly changing market prices, it's not easy to trade while keeping ourselves focused on the big picture. Unfortunately, focusing on the big picture is essential for sustained profitability as a trader.
And that's why it's important to keep some sort of record of all our trades. Some people call it a trading diary, but I personally prefer to call it a trade log. Call it whatever you wish... the idea is to take down your reasons for entering (and exiting) your trades, and to also note down your feelings during those trades.
Now, this idea may turn you off because of its sentimental connotations, but believe me, there's really nothing sentimental about a trade log at all. In fact, the opposite is preferred! You'll need to objectively list down the reasons for your trading actions, so that you can later analyze your trading decisions: "Did I do the right thing?", or "Why did I enter into this trade in the first place?"
These are often the questions we ask ourselves after a trade goes bad. Sometimes it's our fault because we ignored the rules of our trading system, and sometimes it's not our fault at all. The point is to understand whether your losing trades could have been avoided at all.
It's hard to admit it when we make a mistake, and it's the job of a trade log to inform you whether the loss could have been avoided.
วันอังคารที่ 8 มกราคม พ.ศ. 2551
Forex Trading Systems - Want to win 90% of the time?
Forex Trading Systems - Want to win 90% of the time?
by Harold Hsu
Online, you'll often read about Forex trading advertisements that boast of more than 90% winning trades.
Sounds great doesn't it? Would you pay $100 for a trading system that may win 90 out of every 100 trades?
If you answered "Yes", you're in trouble!
Unfortunately, the truth is that a high winning percentage has little to do with being a profitable trader. In reality, it's easy to have 90% of winning trades and still lose money.
Don't believe me? Go ahead a search online search for the "turtle traders". If you're familiar with them, you'll know that they are very profitable traders with only a 20% winning trade percentage.
Allow me to explain...
Imagine you make 10 trades in a month, and 9 of these trades are profitable for $1 per winning trade. This means that you have a winning percentage of 90%, with $9 in profit.
And if you have only 1 losing trade out of 10 (i.e. 10% losing trades), but you lose $10 on that one losing trade. In total, you would have lost ($9 - $10) $1 among all your ten trades.
Can you now see why a high winning percentage doesn't mean that you'll be a successful trader? You see, it's not about how often you win, but how MUCH you win.
So don't fall for the marketing tricks
Many advertisers use high winning percentages as a sales tool to get you to buy the trading systems they are selling. They know that traders like to win all the time, and who doesn't like to win often? These advertisers try to appeal to everyone's desire to win, and unfortunately many people fall for their trap.
Conclusion
It's easy to have 90% winning trades and still be a losing trader. At the same time, you can have a low winning percentage, but be a very profitable trader. In reality, winning percentages have very little to do with a trader's success.
So don't fall into the advertisers' trap when you see their "high winning percentage" claims next time. When people use high winning percentages as a sales pitch, chances are that they know very little about what it truly takes to be a successful trader. Be careful!
by Harold Hsu
Online, you'll often read about Forex trading advertisements that boast of more than 90% winning trades.
Sounds great doesn't it? Would you pay $100 for a trading system that may win 90 out of every 100 trades?
If you answered "Yes", you're in trouble!
Unfortunately, the truth is that a high winning percentage has little to do with being a profitable trader. In reality, it's easy to have 90% of winning trades and still lose money.
Don't believe me? Go ahead a search online search for the "turtle traders". If you're familiar with them, you'll know that they are very profitable traders with only a 20% winning trade percentage.
Allow me to explain...
Imagine you make 10 trades in a month, and 9 of these trades are profitable for $1 per winning trade. This means that you have a winning percentage of 90%, with $9 in profit.
And if you have only 1 losing trade out of 10 (i.e. 10% losing trades), but you lose $10 on that one losing trade. In total, you would have lost ($9 - $10) $1 among all your ten trades.
Can you now see why a high winning percentage doesn't mean that you'll be a successful trader? You see, it's not about how often you win, but how MUCH you win.
So don't fall for the marketing tricks
Many advertisers use high winning percentages as a sales tool to get you to buy the trading systems they are selling. They know that traders like to win all the time, and who doesn't like to win often? These advertisers try to appeal to everyone's desire to win, and unfortunately many people fall for their trap.
Conclusion
It's easy to have 90% winning trades and still be a losing trader. At the same time, you can have a low winning percentage, but be a very profitable trader. In reality, winning percentages have very little to do with a trader's success.
So don't fall into the advertisers' trap when you see their "high winning percentage" claims next time. When people use high winning percentages as a sales pitch, chances are that they know very little about what it truly takes to be a successful trader. Be careful!
วันอาทิตย์ที่ 6 มกราคม พ.ศ. 2551
FOREX Money Management - The Key To Long Term Profits
FOREX Money Management - The Key To Long Term Profits
by Yusoff Allian
Although it can be tempting to whip out your credit card and take advantage of a strong upward trend in your favorite currency, failure to manage your money properly will leave you broke faster than you can say "sell, sell, SELL!!"
FOREX trading, just like any other form of investment, is not a guaranteed money maker 100% of the time. Professional investors know this, and they know that some of their trades *will* lose money. The reason they're still successful is that they plan for these losses accordingly so that in the long term they remain profitable.
Consider this example: a new trader finds a FOREX trading system that proves 75% successful, definitely a system to hold on to. What this means is that out of every 100 trades, 75 will generate a profit. The problem lies in not knowing which of the trades will be successful and which will cause a loss. What if the first 25 trades executed with this system generate losses, while the next 75 generate profit? If the trader has not practiced money management wisely he may have lost his entire investment capital on those first 25 trades.
The more aggressive FOREX trader will no doubt claim that the only way to big profits in a short period of time is to risk more of your capital, but in essence all he is doing is gambling. Indeed, an aggressive FOREX trader may get lucky and hit ten profitable trades in a row generating a very nice profit, but what happens if the next 19 trades all generate losses? If he's still wagering large sums of money on each trade he'll soon be back to where he started from, or more likely in an even worse predicament.
A disciplined FOREX trader will only risk a smaller percentage of his or her investment capital on each trade. Sure, the profits will be smaller in the short term compared to a more aggressive trader, but when the downturn hits (and it most definitely will), the FOREX trader practicing wise money management will be able to weather the storm far better than the aggressive trader.
It may not be the most exciting of strategies, but you're not in the FOREX trading business for thrills, you're in it to generate consistent profits. Using anything other than wise money management when investing in the FOREX market is simply gambling, and if you want to gamble then you're better off at the casino. Even professional poker players, widely labeled as gamblers by spectators, employ money management systems. They realize that they can't possibly win every single tournament they enter, so instead of risking their entire bankroll on one game they risk only a percentage at each one. This allows them to recover far more quickly when their losing streaks hit. Those that don't practice money management quickly find themselves playing Crazy Eights instead.
In conclusion, don't let the promise of quick riches cloud your judgment. FOREX trading is not a get-rich-quick scheme; it's an investment vehicle that can provide healthy profits for those who manage their money wisely. Remember, slow and steady wins the race.
by Yusoff Allian
Although it can be tempting to whip out your credit card and take advantage of a strong upward trend in your favorite currency, failure to manage your money properly will leave you broke faster than you can say "sell, sell, SELL!!"
FOREX trading, just like any other form of investment, is not a guaranteed money maker 100% of the time. Professional investors know this, and they know that some of their trades *will* lose money. The reason they're still successful is that they plan for these losses accordingly so that in the long term they remain profitable.
Consider this example: a new trader finds a FOREX trading system that proves 75% successful, definitely a system to hold on to. What this means is that out of every 100 trades, 75 will generate a profit. The problem lies in not knowing which of the trades will be successful and which will cause a loss. What if the first 25 trades executed with this system generate losses, while the next 75 generate profit? If the trader has not practiced money management wisely he may have lost his entire investment capital on those first 25 trades.
The more aggressive FOREX trader will no doubt claim that the only way to big profits in a short period of time is to risk more of your capital, but in essence all he is doing is gambling. Indeed, an aggressive FOREX trader may get lucky and hit ten profitable trades in a row generating a very nice profit, but what happens if the next 19 trades all generate losses? If he's still wagering large sums of money on each trade he'll soon be back to where he started from, or more likely in an even worse predicament.
A disciplined FOREX trader will only risk a smaller percentage of his or her investment capital on each trade. Sure, the profits will be smaller in the short term compared to a more aggressive trader, but when the downturn hits (and it most definitely will), the FOREX trader practicing wise money management will be able to weather the storm far better than the aggressive trader.
It may not be the most exciting of strategies, but you're not in the FOREX trading business for thrills, you're in it to generate consistent profits. Using anything other than wise money management when investing in the FOREX market is simply gambling, and if you want to gamble then you're better off at the casino. Even professional poker players, widely labeled as gamblers by spectators, employ money management systems. They realize that they can't possibly win every single tournament they enter, so instead of risking their entire bankroll on one game they risk only a percentage at each one. This allows them to recover far more quickly when their losing streaks hit. Those that don't practice money management quickly find themselves playing Crazy Eights instead.
In conclusion, don't let the promise of quick riches cloud your judgment. FOREX trading is not a get-rich-quick scheme; it's an investment vehicle that can provide healthy profits for those who manage their money wisely. Remember, slow and steady wins the race.
วันอังคารที่ 1 มกราคม พ.ศ. 2551
Forex Trading: How To Get Started
Forex Trading: How To Get Started
by Max Haaksman
Have you ever wondered how the Forex market works? Are you curious about becoming a trader, but don't know how to get started? Well, believe it or not, it's very easy and you don't even need any money to get started. Let me introduce you to the world of currency trading.
Forex, or foreign currency exchange, trading can be broken down into several key elements. These include a market, your broker, your broker's trading software, and yourself. In short, you will make decisions, enter them into trading software, and watch the results. It isn't necessary for you to know very much else about your broker at this point.
However, the most important thing to know about your broker is that any money you deposit in your account is protected. Find out where each broker you are considering is located and see if they are required to work with local regulatory agencies. Honestly, the best way to scope out brokers is to find a trading forum and ask others for advice.
Once you have found some candidate brokers that meet your trust and regulatory requirements, then it is time to dig a little deeper. Two things you will want to consider are the features found in their trading software and the cost of entering a trade. Simply download their software, generally referred to as a platform, and start trading with a faux money game account.
The cost of entering a trade is known as the pip spread. Without getting technical, the difference between the market buy price and the market sell price is the spread, expressed in points or pips. The larger this spread then the more the market has to move in your favor for you to make a profit. However, it is certainly appropriate to accept a slightly higher pip spread if you find a broker or trading platform that you really like.
Let me summarize this to show you how simple it really is. Find a broker. Download their trading platform. Open up a free game account. Buy and sell currency pairs in order to get familiar with market movements and your trading platform. Continue using a game account for several months until you have witnessed a wide variety of market activities.
That's it. Now, once you've started trading in a game account, it is time to start visiting some online trading forums and reading everything you can. You'll want to learn about charting, fundamental and technical analysis, stops, limits and plenty of other arcane terms that are actually very simple to learn once you are actively involved in trading.
Finally, don't worry about whether or not you have chosen the best broker, because you'll have plenty of time to move to another. In fact, by the time you are ready to graduate to a live account, you will surely know whether or not your broker's platform offers all of the charting or trading capabilities that you desire. Now, get out there and start trading.
by Max Haaksman
Have you ever wondered how the Forex market works? Are you curious about becoming a trader, but don't know how to get started? Well, believe it or not, it's very easy and you don't even need any money to get started. Let me introduce you to the world of currency trading.
Forex, or foreign currency exchange, trading can be broken down into several key elements. These include a market, your broker, your broker's trading software, and yourself. In short, you will make decisions, enter them into trading software, and watch the results. It isn't necessary for you to know very much else about your broker at this point.
However, the most important thing to know about your broker is that any money you deposit in your account is protected. Find out where each broker you are considering is located and see if they are required to work with local regulatory agencies. Honestly, the best way to scope out brokers is to find a trading forum and ask others for advice.
Once you have found some candidate brokers that meet your trust and regulatory requirements, then it is time to dig a little deeper. Two things you will want to consider are the features found in their trading software and the cost of entering a trade. Simply download their software, generally referred to as a platform, and start trading with a faux money game account.
The cost of entering a trade is known as the pip spread. Without getting technical, the difference between the market buy price and the market sell price is the spread, expressed in points or pips. The larger this spread then the more the market has to move in your favor for you to make a profit. However, it is certainly appropriate to accept a slightly higher pip spread if you find a broker or trading platform that you really like.
Let me summarize this to show you how simple it really is. Find a broker. Download their trading platform. Open up a free game account. Buy and sell currency pairs in order to get familiar with market movements and your trading platform. Continue using a game account for several months until you have witnessed a wide variety of market activities.
That's it. Now, once you've started trading in a game account, it is time to start visiting some online trading forums and reading everything you can. You'll want to learn about charting, fundamental and technical analysis, stops, limits and plenty of other arcane terms that are actually very simple to learn once you are actively involved in trading.
Finally, don't worry about whether or not you have chosen the best broker, because you'll have plenty of time to move to another. In fact, by the time you are ready to graduate to a live account, you will surely know whether or not your broker's platform offers all of the charting or trading capabilities that you desire. Now, get out there and start trading.
วันเสาร์ที่ 29 ธันวาคม พ.ศ. 2550
All About A Forex Quote
All About A Forex Quote
by Joon Trader
Forex Trading - All about a Forex Quote. The word FOREX is derived from the words "FOReign EXchange. Unlike other financial market in the world, Forex is open 24 hours every day where there is always a major financial center open where banks, dealers, hedge funds, corporations, individual investors and speculators are trading currencies.
The cumulative buy and sell of a currency causes the value of your Forex investment to move either up or down. There are numerous factors that cause the fluctuation of exchange rate. A country's political, social and fundamental economic environment and their central banks fiscal policy, interest rate adjustment are some of the common factors. To have a better understanding how the currency exchange rate can affect the value of your Forex investment, this article will concentrate on the topic of Forex Quote.
Currencies are traded in pairs and each currency has its own symbol. For the Euro dollar- it is EUR, Japanese Yen - it is JPY, for the Pounds Sterling - it is GBP, and for the Swiss Franc - it is CHF. Hence, EUR/USD would be Euro-Dollar pair. GBP/USD would be pounds Sterling-Dollar pair and USD/CHF would be Dollar-Swiss Franc pair and so on and so forth.
You will always see the USD quoted first with few exceptions such as Pounds Sterling, Euro Dollar, Australia Dollar (AUD) and New Zealand Dollar (NZD. The first currency quoted is called the base currency. This is not surprising as the U.S. dollar is regarded as the central currency of the Forex market and is involved in nearly 90% of all Forex transactions.
So how are these currency pairs quoted on the Forex market? You will see two numbers on all Forex quotes. The first number is called the bid and the second is known as the offer (or the ASK) price. Take for instance EURUSD, you will see 1.4625/1.4630. The first quote of 1.4625 is the bid price, the price where traders are prepared to buy Euro against the USD Dollar. The second number 1.4630 is the offer or ask price and it is the price traders are prepared to sell the Euro against the US Dollar. You will notice that there is a difference between the bid and the offer price. This difference is known as the spread. Based on the previous EUR/USD quote, you know that 1 Euro is equal 1.4625 US dollar.
The way profit is measured of a currency is by "pips" or point. PIP is the acronym for price interest point. If the EUR/USD moves from 1.4625 to 1.4655 that is 50 pips. A pip or 0.001 is the last decimal place of a currency quotation with the exception of the Japanese Yen and Yen cross rates. A price movement for the USD/JPY from 111.10 to 111.60 will be 50 pips.
The objective and goal for all Forex Traders are to profit from foreign currency movements. The rewards of trading Forex are immense and the amount of money you can earn can be life changing and ultimately leads you to achieve financial freedom. This requires continuous and adequate understanding and training in Forex education. This education may include understanding technical analysis, chart pattern and formation, trade management such as stop loss and profit target and money management. And if you invest and get the right Forex Trading knowledge, you can enjoy long term currency trading success.
by Joon Trader
Forex Trading - All about a Forex Quote. The word FOREX is derived from the words "FOReign EXchange. Unlike other financial market in the world, Forex is open 24 hours every day where there is always a major financial center open where banks, dealers, hedge funds, corporations, individual investors and speculators are trading currencies.
The cumulative buy and sell of a currency causes the value of your Forex investment to move either up or down. There are numerous factors that cause the fluctuation of exchange rate. A country's political, social and fundamental economic environment and their central banks fiscal policy, interest rate adjustment are some of the common factors. To have a better understanding how the currency exchange rate can affect the value of your Forex investment, this article will concentrate on the topic of Forex Quote.
Currencies are traded in pairs and each currency has its own symbol. For the Euro dollar- it is EUR, Japanese Yen - it is JPY, for the Pounds Sterling - it is GBP, and for the Swiss Franc - it is CHF. Hence, EUR/USD would be Euro-Dollar pair. GBP/USD would be pounds Sterling-Dollar pair and USD/CHF would be Dollar-Swiss Franc pair and so on and so forth.
You will always see the USD quoted first with few exceptions such as Pounds Sterling, Euro Dollar, Australia Dollar (AUD) and New Zealand Dollar (NZD. The first currency quoted is called the base currency. This is not surprising as the U.S. dollar is regarded as the central currency of the Forex market and is involved in nearly 90% of all Forex transactions.
So how are these currency pairs quoted on the Forex market? You will see two numbers on all Forex quotes. The first number is called the bid and the second is known as the offer (or the ASK) price. Take for instance EURUSD, you will see 1.4625/1.4630. The first quote of 1.4625 is the bid price, the price where traders are prepared to buy Euro against the USD Dollar. The second number 1.4630 is the offer or ask price and it is the price traders are prepared to sell the Euro against the US Dollar. You will notice that there is a difference between the bid and the offer price. This difference is known as the spread. Based on the previous EUR/USD quote, you know that 1 Euro is equal 1.4625 US dollar.
The way profit is measured of a currency is by "pips" or point. PIP is the acronym for price interest point. If the EUR/USD moves from 1.4625 to 1.4655 that is 50 pips. A pip or 0.001 is the last decimal place of a currency quotation with the exception of the Japanese Yen and Yen cross rates. A price movement for the USD/JPY from 111.10 to 111.60 will be 50 pips.
The objective and goal for all Forex Traders are to profit from foreign currency movements. The rewards of trading Forex are immense and the amount of money you can earn can be life changing and ultimately leads you to achieve financial freedom. This requires continuous and adequate understanding and training in Forex education. This education may include understanding technical analysis, chart pattern and formation, trade management such as stop loss and profit target and money management. And if you invest and get the right Forex Trading knowledge, you can enjoy long term currency trading success.
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