Learning the basic skills in forex, such as how to read forex charts, is really important.
This is because once you have this vital skill under your belt, it will be a lot easier and quicker when the time comes for you to learn and practice an actual forex trading system.
By the time you finish this article, you'll learn how to read forex charts, as well as know the pitfalls that can occur when reading them, especially if you haven't traded forex before.
Firstly, let's revise the basics of a forex trading as this relates directly to how to reade forex charts.
Each currency pair is always quoted in the same way. For example, the EURUSD currency pair is always as EURUSD, with the EUR being the base currency, and the USD being the terms currency, not the other way round with the USD first. Therefore if the chart of the EURUSD shows that the current price is fluctuating around 1.2155, this means that 1 EURO will buy around 1.2155 US dollars.
And your trade size (face value) is the amount of base currency that you're trading. In this example, if you want to buy 100 000 EURUSD, you're buying 100 000 EUROs.
Now let's have a look at the 5 important steps on how to read a forex chart:
1. If you buy the currency pair, that is, you're long the position, realise that you're looking for the chart of that currency pair to go up, to make a profit on the trade. That is, you want the base currency to strengthen against the terms currency.
On the other hand if you sell the currency pair to short the position, then you're looking for the chart of that currency pair to go down, to make a profit. That is, you want the base currency to weaken against the terms currency.
Pretty simple so far.
2. Always check the time frame displayed. Many trading systems will use multiple time frames to determine the entry of a trade. For example, a system may use a 4 hour and a 30 minute chart to determine the overall trend of the currency pair by using indicators such as MACD, momentum, or support and resistance lines, and then a 5 minute chart to look for a rise from a temporary dip to determine the actual entry.
So ensure that the chart you're looking at has the correct time frame for your analysis. The best way to do this is to set up your charts with the correct time frames and indicators on them for the system you're trading, and to save and reuse this layout.
3. On most forex charts, it is the BID price rather than the ask price that's displayed on the chart. Remember that a price is always quoted with a bid and an ask (or offer). For example, the current price of EURUSD may be 1.2055 bid and 1.2058 ask (or offer). When you buy, you buy at the ask, which is the higher of the 2 prices in the spread, and when you sell, you sell at the bid, which is the lower of the two prices.
If you use the chart price to determine an entry or exit, realise that when you place an order to sell when the chart price is say 1.330, then this is the price that you'll sell at assuming no slippage.
If on the other hand, you place an order to buy when the chart price is the same price, then you'll actually buy at 1.3333. A forex system will often determine whether your orders will be placed simply according to the chart price or whether you need to add a buffer when buying or selling.
Also note that on many platforms, when you're placing stop orders (to buy if the price rises above a certain price, or sell when the price falls below a certain price) you can select either "stop if bid" or "stop if offered".
4. Realise that the times shown on the bottom of forex charts are set to the particular time zone that the forex provider's charts are set to, be it GMT, New York time, or other time zones.
It's handy to have a world clock available on your computer desktop in order to convert the different time zones. This is important when you're trading major economic announcements.
You'll need to convert the time of an announcement to your local time, and the chart time, so you'll know when the announcement is going to happen, and therefore when you need to trade.
5. Finally, check whether the times on your forex charts corresponds to when the candle opens or when the candle closes. Your charting software may be different to someone else's in this way.
The reason I mention this, is that if you need to trade major economic announcements, either by entering a trade based on the movements that happen after the announcement, or to exit a trade before the announcement in avoid getting stopped out during it, then you need to be precise (to the minute!) as these trades are performed according to what happens at the 1 minute immediately after the announcement, not the candle afterwards!
So there you have it.
You now have the 5 essential keys to how to properly read forex charts, which will help you to avoid the common mistakes which many forex beginners make when looking at charts, and which will speed up your progress when you're looking at forex charting packages, and forex trading systems that you want to trade!
Now that you know this, practice looking at forex charts with each of these 5 points in mind.
So get to it!
by Mark Hamburg
http://www.theforextrader.net/forex-charting-software.php
source article
http://www.earnforex.com/articles/how-to-read-forex-charts-5-things-you-must-know
Sunday, August 15, 2010
Monday, August 9, 2010
FOREX LESSONS FROM SHANGHAI BC
(Selected Shanghai BC* Posts from the Archives of the Global-View.com Forex Forum)
(*Shanghai BC is a highly respected member of the Global-View.com community)
(*Shanghai BC is a highly respected member of the Global-View.com community)
TRADING: A MIND GAME
You must change your mental attitude first from a normal person to that of a speculator. Almost all traders I have met, except a few successful ones who really made millions and billions trading in the market, simply waste all their time trying to learn the easiest part in perfection, like about how to read data and charts, and trying to perfect entry and exit skills, etc. Trading is a mind game and without having a right frame of mind, it is a losing game even before it starts. Training a trader�s mind is the first step for any successful trader but almost all new traders neglect that part and that explains why more than 95% of traders are a failure in the long run.
Acquiring the knowledge of the market is not difficult for anyone with average intelligence after a few years of hard study in the market. But it is neither the level of intelligence nor the knowledge that decides the outcome of the market operations of a trader. It is the decision making process that is so hard for most traders to overcome and that is the main reason for a success or a failure for all the traders. Some find it easy to make decisions and stick to it and most find it so hard to make decisions and stick to it. Unfortunately, any decision making process in trading is a pain-taking process and humans tend to avoid pains and go for pleasures even if for temporary ones. Assuming one has acquired enough market knowledge and acquired one�s proven trading system (this is the second most important element of success in trading, in fact. An edge in any system is based on the quality of info one has, charts being only an info of secondary quality not the best one)
Through studies and research, a trader faces the task of making decisions to put this knowledge and system into practice. Then, how many traders can honestly say they can commit their ranch when the trade is suggested by their own system (given that trading is just a chance game) and let the profit run for weeks and months when their system tells them, and how many can manage to cut the loss as a routine process when the situation arise. It all sounds so easy when saying it but so difficult when doing it affecting real money in the market. I still do not sleep well when I am running position because even if the profits are running into a few hundred dollars and the system is telling you to carry on, there is no guarantee that the profit will turn into a yard or two in a month time, and it may even turn into a loss in a day or two when something unexpected happens. A painstaking process in real sense. The pain is not knowing what will happen in the future and in fear of losing. So at the end of the day, assuming one has decent trading system and market knowledge and decent info, it is ultimately how disciplined and how well that trader can take the pain of making right decisions at the right time that decides the outcome of the trades. Hence I call trading a mind game. When I interview prospective young traders, I always look for disciplined and strong-willed person as my first priority as long as one has decent education, but strangely in many cases, it is some kind of genius or half-genius with lots of brains with no disciplines who turn up for an interview thinking only bright people can make good traders.
In fact, I always try to pyramid while position trading medium-term once I am convinced of a new medium-term trend emerging. Like in USD/JPY position trading 135-132 as an initial position, adding in 132 and 129 areas. Same for AUD/USD and EUR/USD with similar strategies. But sitting on positions and watching the counter-rallies costing truck load of money is not easy job to do and causes lots of pain all the time. Most traders even among experienced ones cannot bear that pain and give up too early. But there is no other way to make a big money and we have to bite the bullet and "sit and accumulate" as long as the medium-term trend is intact. That is why I always believe psychological aspects of trading is far more important than anything else in successful trading. A mind game like those bluffing game of poker.
Entries and exits can never be "irrelevant" for any trader for any purpose. It is just that psychological aspects of trading are much more important than entries and exits, and decisive for the success or failure of a trader in the long run. Perhaps exits are more important than entries because any perfect or near-perfect entries are possible only in hindsight.
BC�s WORDS OF WISDOM
Any market, be it real estate market or forex market, is all about transferring money from the masses to a few lucky ones in the long run. In most real property speculation cases, the masses make money ,a lot of money, but the money stays as paper profit and evaporate before they realize their paper profit into real hard cash. In most forex speculation cases, the masses barely survive a few years thanks to lack of knowledge of the market and the deadly leverage. But both types of speculators all serve their useful purposes in investment food chain contributing their hard earned money to the market in exchange for a dream.
For any prospective traders, hope this is not in anyway a discouragement. Trading is a hard mind game and not everyone is suitable to be engaged in such a hard game. Most have neither frame of mind nor mental fortitude to survive in this hard game. Mastering TAs or numbers or options business are at best a first tentative step into the right direction with no guarantee to any success. Training a right frame of mind is the most difficult but absolutely necessary part for success and most are simply not ready to go through that hard stage of the learning process because it is a very painful process. Trading is essentially about pain-taking-process in the end although most do not realize it. The process of overcoming fear, greed and mastering tranquility of mind in this hard school of speculation. Fwiw.
Every trader should find his/her method/system which suits his/her own situation and personality. And that system/method must be the one that has proven to be able to make some money through trials. So, if Tom, the medium-term trader, revealed his money making method of last three decades, it may not have the same effect for Dick and Harry, the day traders, and vice versa. Agree that most fail for lack of system/method and/or lack of discipline to follow through.
Trading success is all about making as much as one can when one is right and losing as little as possible when one is wrong. That is the essence of this business. So, any theory or system which looks after the above is a good one.
System is a weapon of a soldier in this market. You must have one as soon as possible. Otherwise, it will be like fighting well-armed Forex robbers with a handbag. Best one is a self-made one because you can never feel comfy in borrowed shoes although borrowing good ideas from others is a good idea. Good luck.
One cannot make a dime unless follow the herd or trend most of the time. It is just that one has to be cautious when overbought/oversold region is approaching and know how to turn at inflection point for the opposite trend. Following herd needs average intelligence and courage but identifying inflection points and taking a necessary action needs not only intelligence but also a lot of courage. Again, fortune favors the brave.
Money management is where most traders go wrong in almost all cases leaving only a few as the winner at the end of the day. Money management and discipline of mind is what makes or brakes a trader at the end of the day, not the elementary entry and exit method.
Forex/Currency Trading: It is a sentiment game w/ a crowd mentality where even the best players w/ the best forecasts are tricked out of good positions by the magic of price action.
TREND TRADING: Accumulation and Distribution
Forex market like any other market works in a very simple way. It accumulates in a certain area for awhile, and once the accumulation is over, it advances to a certain distance until distribution starts, and accumulation happens again and advances to a certain distance again, and repeat and repeat. Day trading may not yield the best results while the accumulation and distribution work out itself, being double-murdered by zig-zag moves, while the market starts advancing out of accumulation area, day trading is a sure way of cutting profit short. In general, day trading is not the best form of yielding the most profits in my experience contrary to what some writers who never made real money in this game try to say.
The safe and better way in making some money must be wait for "accumulation" to be over and ride the whole length of advance until "distribution" starts and reverse as the market dictates as a short-term trade for 2-10 days, as the case may be.
Please study 8 hour or 4 hour line charts or candle charts, especially the patterns and 20 MA inside the charts for a few months everyday, and you will discover what I mean by accumulation and distribution for short-term trades in Forex market. Forex market always needs this process, so you can decide what tactics you will use at a given stage. Imho. Good luck.
TECHNICALS and CHARTING
Why day trade once you get a good seat and the market is going your way. It is always more profitable to ride even the short wave for 2-10 days by adding up. In general, you must day trade only when you are losing. To find a buy entry seat for short-term trades, you can study the "accumulation and distribution patterns and 20 MA" in 8, 4 hourlies or 30 min "Line Charts" (or Candle Charts), together with MACD "overbought and oversold indicators" with its Patterns. If you study them for awhile you will understand when it the best entry point. The remainder is for money management and discipline and of course, experience. Good trades�
On technical side of the trading, the first thing to do is to find out the trend in one�s trading time frame and the proper trading strategy for that trend. Some ride positions for months, while some ride positions for less than an hour or a day and their views of the trend obviously differ. For a trader who is running a position for months, a daily fluctuation may be just a meaningless noise while for a daytrader or an hour trader, a daily fluctuation could be a monstrous tsunami. Having a precise definition and a technique of identifying a trend and the turn of a trend in a trader�s time frame, and adopting the right strategies for that trend is the first elementary step in a hard school of trading. Imho.
I keep my technical side on any pair as simple as possible largely relying on other�s moves to see how I can take advantage of the situation. So for me the strategy is to "range trade". Please always give stop order per your risk profile when you open any new position. Medium-term reversals can be confirmed only in monthly, weekly and daily charts. Chart reading is not to predict the tops or bottoms of any move, but to confirm the change of trend as soon as they are made and adopt right strategies in that new trend. Good trades.
Each cycle is different from the last one and that is the beauty of the market. It is extremely important to look at the big picture from the distance rather than studying the minute and hourly charts with a microscope. And repeat the whole show again and again �til it shows the sign of turning in daily or weekly chart. And flip. Good trades to you.
I use very primitive charting methods. Please read 8 hour charts of EUR/GBP with 20 and 40 MA, and read round figures and breakout (from consolidations, then you will realize the method cannot be more primitive than that, but still deadly effective). Buy on dips towards the support and add up on breakout of that consolidation treating the two as one trade with same stop loss and "keep them" as long as the market moves in your way. Good trades.
As a rule of thumb, 20 MAs in 8 hour, day, week and month are useful for its directional tendency and as a resistance and support point. Not sure how much it is useful in daytrading though.
Please have a look at Eur/Usd and Usd/Jpy weekly 10 RSI and Aud/Usd monthly 10 RSI "patterns", not levels. Then you will find out primitive things work better when coupled with even simpler MAs. And RSI is useful "only in these weekly and monthly time scale" as far as I can see. You can ignore RSI in short-term scales as the inventor of RSI, Wilder, told us long ago.
Good afternoon. Agree with your observation. Once Soros of Quantum Fund hit the nail on the head with his theory of reflexivity in the market and that is exactly how these players work in the market. That rather romantic tool of daily candlestick chart is useful because whenever some players start positioning to start or stop short-term moves in Yen market, say several hundred pips, for whatever reasons, it reveals their intention to the market, more often than not. It sounds so weird to say tens of yards are spent relying on indicators so primitive like hand-drawn candlestick charts, but that is the truth in Yen market. Same as millions of soldiers risking their lives depending on how their generals draw up the battle plan with their cheap red and blue pencils in their operation room desk. Crazy world, I would say, but that is the fact. And as you say, battle is a battle and those ones who make their first move with their candlestick may not always win either. I happen to believe if a child can learn to trade with some simple signals he will do better than most traders, most of the time, making a good living. But then again, movin market is more than just following the signals. Good trades to you.
I guess if you are a daytrader, 30 minute and 15 minute candle charts and line charts in combination with MACD and MA could be more useful than hourly charts or even daily charts. Especially watch out for the down-sign and up-sign with long tails in candle charts and confirmation of the change of short-term trend in line charts breaking accumulation area in these charts. If you are a nimble trader, even a candle-sign is enough to start moving in with stops above or below the long tail end. For dollar/yen trade, read swiss/yen, pound/yen and euro/yen together to confirm the top or bottom. For Eurodollar or dollar/swiss trade, read pound/swiss and euro/pound together to confirm the same. If you are a daytrader, what matters is the flow of that particular day, not the bull or bear bias, so, 30 Min and 15 Min Candle Charts and Line charts are not bad tools to follow these flows. Good trades.
USING CROSSES AND GOLD
EUR/GBP and GBP/JPY have a value as the leading indicators of EUR/USD and USD/JPY moves. EUR/CHF is similar to EUR/GBP in forecasting value but stopped trading and looking at it a long ago after experiencing difficulties in running good sized positions there.
In short, EUR/GBP and GBP/CHF are leading indicators for EUR/USD and USD/CHF, and GBP/JPY, EUR/JPY and CHF/JPY are leading indicators for USD/JPY. EUR/JPY plays a very important role in EUR/JPY direction too, while GBP/JPY plays the same role for GBP/USD. For example, yesterday�s EUR/USD weakness largely started from EUR/JPY sales keeping EUR/USD and USD/JPY downwards. As a rule of thumb, if EUR/USD does not move but EUR/GBP moves first, it is a good indicator that someone is maneuvering in EUR/USD front in the same direction later, and when EUR/USD moves but EUR/GBP does not move first or in tandem, then it is highly likely EUR/USD move is countered by its opponent and the opposite move is highly likely soon. Same applies in USD/JPY and EUR/JPY, GBP/JPY front in the same fashion. Imho. Good trades.
Good morning. EUR/USD, EUR/GBP, EUR/JPY and GBP/CHF all have correlation to a certain degree affecting each other. It simply shows how the money moves around in these pairs. For daily candle studies, it is more accurate to read them all to see where the flow is going, and same for 4 hourly or hourly or even 10 minute charts. In fact, GBP/CHF and EUR/GBP in many cases move a day or two before EUR/USD. Even by watching GBP/CHF and EUR/GBP charts, short term or long-term as above, you can manage to move in front of EUR/USD moves in many cases. Same goes for GBP/JPY and EUR/JPY charts for USD/JPY moves. More study on these pairs moves will reveal some more interesting things too. Good trades.
I have been using USD index and Eur/Gbp (or Gbp/Chf) as my guide dogs since late 70�s with reasonable accuracy for medium-term trend. Never lost money on medium-term bet relying on those guide dogs in fact. But that cross does not work when Pound is deliberately devalued.
AUD/JPY is one of the important pairs influencing AUD after Dollar, Euro and Pound. Usually falling AUD/JPY is good for Yen Bulls as well.
Good evening. Gold is the mirror of Dollar for hedging purposes and the co-relation is excellent. Sometimes, when I am tired of double checking too many "inside infos" rushing in every hour, I just watch Gold to confirm and go ahead with the moves. Gold chart is one of the top charts you must always watch in forex trading. Eur/Gbp chart, along with the Eur/Jpy chart, is an excellent mirror for Eur/Usd directions most of the time too. Gold, Eur/Gbp and Eur/Jpy charts will tell most of the market story most of the time with Gold and Eur/Gbp leading Forex world most of the time. Good luck.
USING STOPS
Please always give stop order per your risk profile when you open any new position. Medium-term reversals can be confirmed only in monthly, weekly and daily charts. Chart reading is not to predict the tops or bottoms of any move, but to confirm the change of trend as soon as they are made and adopt right strategies in that new trend. Good trades.
For position traders, the basic bias of the market in his trading time frame, the liquidity situation of the market in that time frame, and the size of trading positions must be all taken into account when exercising stops, be it based on tech levels or a certain sum of money or a percentage of a total equity. It is a must but also it is form of art like trading itself. And every trader must develop his own unique style of using stops. But unfortunately, all this can be learned only by paying a certain amount of tuition fee to the market.
Yes, but as a position trader I never use tight stops. Same goes for trailing stops. All very far away from the market not to be taken out by meaningless market noises. Initial stop is always 1% of my total equity, and never commit the whole position at a go but always scale in and scale out.
Good morning. You can avoid your problem in most cases by leaving the market always by trailing stops, i.e., do not set the profit target. So, any winning trade must be held as long as market does not tell you to leave by hitting your trailing stops. When you enter the market by market signals and leave by stops or trailing stops, it solves the most difficult part of decision making process rather easier for traders. Good trades.
USD/JPY HINTS
One of the silly rules of thumb in USD/JPY trading is it rarely moves 700-800 pips in a row without 200 pips or more correction in the middle and it almost always retraces back to 350 pips advance point from the start of its 700-800 pips move. All because of liquidity problem in Yen market.
The real battle of bulls and bears for medium-term trend is always around 20 day MA line in Yen market. Daily option activities here and there are of no relevance as far as medium-term trend is concerned.
Yen position traders sit on their positions gunning for several hundred pips at one go. For day trades, much more nimble approach is required. As Yen position trader, please never buy anything below falling daily 20 MA and never sell anything above rising daily 20 MA, no matter how attractive they look. So start buying only when daily 20 MA starts rising, from whatever level, is not only safe but also proven way of making money although it sounds so simple. Imho. Good trades.
You can read how Yen traders make intraday moves by watching 30 min USD/JPY candlestick chart or line chart if you are not familiar with candle nuance. 4, 8 hourlies are for positional moves. Good trades.
The Tokyo Fix is where the FX rate is established for the day by the banks for their customers. So even though the FX rate may change during the day the customer gets the rate at the time of the fix. There is a fix in Tokyo, London and Toronto (more I am sure). Importers generally settle their accounts on the 5th, 10th, 15th, etc, of the month before and up until the fix ():50 GMT). Sometimes, if there is an "excess" dollar demand $/JPY will continue to climb slightly after the fix. $Bulls will also use this as a staging for extending a rally. $Bears (Yen Bulls) will use this to establish better shorts.
REACTING TO NEWS
News or data are always read by the market along the prevailing market bias. Data can provide a good reading for the state of the market. If the data is bad but the price is still rising or not affected, it must be a bull market which means buy on dip strategy is a better one. Conversely, if the data is good but the price is not rising or even falling, it must be a bear market which means sell on bounce strategy is a better one. The inflexion point must be when bad news or good news. no longer affect the prices as they have done before. Medium/long-term bias changes are usually accompanied by such reactions to the news. Fwiw.
It is not the numbers that counts but how the market reacts to the numbers that counts. That gives some comfort to those who are not privy to the numbers already
FAIR VALUE
Good evening. The concept of fair value in any currency is largely that of CBers and economists and not much about trading ..Almost always currencies overshoot from the fair value areas some 20-30% in their medium-term trend and what makes all hard currencies range in reasonable areas overtime since we had this floating regime in 1971 must the ability of relevant CBs to control the currency ranges and their real economy's weakness or strength to support those ranges. ECB folks were not joking when they said Eur/usd was some 25% undervalued from the fair value when Eur/Usd was below parity levels two years ago. Same goes for BOJ when they were saying Yen was some 10-20% overvalued when it was trading around 100 some three years ago too. That is how these folks view the markets and try to guide the market. Of course, when US Treasury folks say "Dollar is still strong" when it is falling, they are begging the market to sell more Dollars.
DIFFERENT CENTERS
The first hour after opening in Tokyo tend to provide the best liquidity of the day and that is when most heavyweight players try to position their way without having much difficulty for the day. Sydney open is more often used as an ambush hour by certain players using the time window till Tokyo open. One rule of thumb is when Yen jumps at Tokyo open the chances are it will continue throughout the day and a few more days. On different point, learn to position trade Yen or any other currency if one is really going to make a big money one day. Fwiw.
One hour from Tokyo open, London open and NY open are the times where most liquidity of the market exist. And that is where market makers are busy setting the trend for the session or even the day. Your observation has a merit because most of the session or daily moves are started either in London open or Tokyo open or NY open. Especially London Open. Other markets are too thin for any good sized traders to make their market views felt. Good luck.
London is just a market place where all sorts of Forex folks flock to buy and sell. It does not have to be London folks. It could be anyone from anywhere in the world with deep pockets who start setting the market direction on a given day. Same goes for NY and Tokyo sessions markets. In any case, Tokyo and NY still relatively small markets when compared to London as far as Forex goes.
A WORD FOR NEW TRADERS
Traders that try to pick the tops and bottoms of the market throughout the day end up with mostly misery because inexperienced fellows in Forex departments even in first division clubs try to pick the tops and bottoms believing that is where the real big money is. And ego demonstration and bonus consideration comes into play too for smart college graduates. The first thing I do when facing new recruits is, do my best to destroy their ego and fear in the market first. Once their ego and fear are reasonably cured, they become dutiful followers of the market like Pavolv�s hounds and they can survive. And once they can survive, they can be taught on how to put temporary tops and bottoms to the market at much higher level of speculation school. Then, that may take at least a decade of training too.
QUIPS FROM BC
Forex is all about how to hit the next ball correctly rather than worrying about something of a distant future. The next ball may be for 2 pips or 20 pips or 200 pips or 500 pips depending on a trader�s style.
Anything is possible in Forex.
I am useless as a daytrader. Corrections may take days or longer to complete.
Good quality info is everything in this game.
Bottom picking in the Usd/Jpy is the Mother of all risky trades.
We learn how to trade till we stop trading and we learn from each other everyday. That is the beauty of trading and life in general.
Do not worry about what market will do. Just worry about what you will do when market reaches your "pain point" or "happy point". You will have an easier life as a trader that way.
Forex players can operate quietly, but they cannot hide their moves in those charts.
Good morning. Yes, no liquidity and no conviction by players make the market look like a vagrant loitering in his usual area. Good forecasts and trades.
Good sleep is essential for good trading but most of the traders I know of seem to sleep with one eye open.
http://www.global-view.com/forex-education/forex-learning/shanghai_bc.html#QUIPS_FROM_BC
Sunday, August 8, 2010
Forex Money Management
Put two rookie traders in front of the screen, provide them with your best high-probability set-up, and for good measure, have each one take the opposite side of the trade. More than likely, both will wind up losing money. However, if you take two pros and have them trade in the opposite direction of each other, quite frequently both traders will wind up making money - despite the seeming contradiction of the premise. What's the difference? What is the most important factor separating the seasoned traders from the amateurs? The answer is money management.
Like dieting and working out, money management is something that most traders pay lip service to, but few practice in real life. The reason is simple: just like eating healthy and staying fit, money management can seem like a burdensome, unpleasant activity. It forces traders to constantly monitor their positions and to take necessary losses, and few people like to do that. However, as Figure 1 proves, loss-taking is crucial to long-term trading success.
Figure 4
4. Margin Stop
This is perhaps the most unorthodox of all money management strategies, but it can be an effective method in FX, if used judiciously. Unlike exchange-based markets, FX markets operate 24 hours a day. Therefore, FX dealers can liquidate their customer positions almost as soon as they trigger a margin call. For this reason, FX customers are rarely in danger of generating a negative balance in their account, since computers automatically close out all positions.
This money management strategy requires the trader to subdivide his or her capital into 10 equal parts. In our original $10,000 example, the trader would open the account with an FX dealer but only wire $1,000 instead of $10,000, leaving the other $9,000 in his or her bank account. Most FX dealers offer 100:1 leverage, so a $1,000 deposit would allow the trader to control one standard 100,000-unit lot. However, even a 1 point move against the trader would trigger a margin call (since $1,000 is the minimum that the dealer requires). So, depending on the trader's risk tolerance, he or she may choose to trade a 50,000-unit lot position, which allows him or her room for almost 100 points (on a 50,000 lot the dealer requires $500 margin, so $1,000 – 100-point loss* 50,000 lot = $500). Regardless of how much leverage the trader assumed, this controlled parsing of his or her speculative capital would prevent the trader from blowing up his or her account in just one trade and would allow him or her to take many swings at a potentially profitable set-up without the worry or care of setting manual stops. For those traders who like to practice the "have a bunch, bet a bunch" style, this approach may be quite interesting.
Conclusion
As you can see, money management in FX is as flexible and as varied as the market itself. The only universal rule is that all traders in this market must practice some form of it in order to succeed.
By Boris Schlossberg, Senior Currency Strategist, FXCM
http://www.goforex.net/forex-money-management.htm
Like dieting and working out, money management is something that most traders pay lip service to, but few practice in real life. The reason is simple: just like eating healthy and staying fit, money management can seem like a burdensome, unpleasant activity. It forces traders to constantly monitor their positions and to take necessary losses, and few people like to do that. However, as Figure 1 proves, loss-taking is crucial to long-term trading success.
Note that a trader would have to earn 100% on his or her capital - a feat accomplished by less than 1% of traders worldwide - just to break even on an account with a 50% loss. At 75% drawdown, the trader must quadruple his or her account just to bring it back to its original equity - truly a Herculean task!
The Big One
Although most traders are familiar with the figures above, they are inevitably ignored. Trading books are littered with stories of traders losing one, two, even five years' worth of profits in a single trade gone terribly wrong. Typically, the runaway loss is a result of sloppy money management, with no hard stops and lots of average downs into the longs and average ups into the shorts. Above all, the runaway loss is due simply to a loss of discipline.
Most traders begin their trading career, whether consciously or subconsciously, visualizing "The Big One" - the one trade that will make them millions and allow them to retire young and live carefree for the rest of their lives. In FX, this fantasy is further reinforced by the folklore of the markets. Who can forget the time that George Soros "broke the Bank of England" by shorting the pound and walked away with a cool $1-billion profit in a single day? But the cold hard truth for most retail traders is that, instead of experiencing the "Big Win", most traders fall victim to just one "Big Loss" that can knock them out of the game forever.
Learning Tough Lessons
Traders can avoid this fate by controlling their risks through stop losses. In Jack Schwager's famous book "Market Wizards" (1989), day trader and trend follower Larry Hite offers this practical advice: "Never risk more than 1% of total equity on any trade. By only risking 1%, I am indifferent to any individual trade." This is a very good approach. A trader can be wrong 20 times in a row and still have 80% of his or her equity left.
The reality is that very few traders have the discipline to practice this method consistently. Not unlike a child who learns not to touch a hot stove only after being burned once or twice, most traders can only absorb the lessons of risk discipline through the harsh experience of monetary loss. This is the most important reason why traders should use only their speculative capital when first entering the forex market. When novices ask how much money they should begin trading with, one seasoned trader says: "Choose a number that will not materially impact your life if you were to lose it completely. Now subdivide that number by five because your first few attempts at trading will most likely end up in blow out." This too is very sage advice, and it is well worth following for anyone considering trading FX.
Money Management Styles
Generally speaking, there are two ways to practice successful money management. A trader can take many frequent small stops and try to harvest profits from the few large winning trades, or a trader can choose to go for many small squirrel-like gains and take infrequent but large stops in the hope the many small profits will outweigh the few large losses. The first method generates many minor instances of psychological pain, but it produces a few major moments of ecstasy. On the other hand, the second strategy offers many minor instances of joy, but at the expense of experiencing a few very nasty psychological hits. With this wide-stop approach, it is not unusual to lose a week or even a month's worth of profits in one or two trades. (For further reading, see Introduction To Types Of Trading: Swing Trades.)
To a large extent, the method you choose depends on your personality; it is part of the process of discovery for each trader. One of the great benefits of the FX market is that it can accommodate both styles equally, without any additional cost to the retail trader. Since FX is a spread-based market, the cost of each transaction is the same, regardless of the size of any given trader's position.
For example, in EUR/USD, most traders would encounter a 3 pip spread equal to the cost of 3/100th of 1% of the underlying position. This cost will be uniform, in percentage terms, whether the trader wants to deal in 100-unit lots or one million-unit lots of the currency. For example, if the trader wanted to use 10,000-unit lots, the spread would amount to $3, but for the same trade using only 100-unit lots, the spread would be a mere $0.03. Contrast that with the stock market where, for example, a commission on 100 shares or 1,000 shares of a $20 stock may be fixed at $40, making the effective cost of transaction 2% in the case of 100 shares, but only 0.2% in the case of 1,000 shares. This type of variability makes it very hard for smaller traders in the equity market to scale into positions, as commissions heavily skew costs against them. However, FX traders have the benefit of uniform pricing and can practice any style of money management they choose without concern about variable transaction costs.
Four Types of Stops
Once you are ready to trade with a serious approach to money management and the proper amount of capital is allocated to your account, there are four types of stops you may consider.
1. Equity Stop
This is the simplest of all stops. The trader risks only a predetermined amount of his or her account on a single trade. A common metric is to risk 2% of the account on any given trade. On a hypothetical $10,000 trading account, a trader could risk $200, or about 200 points, on one mini lot (10,000 units) of EUR/USD, or only 20 points on a standard 100,000-unit lot. Aggressive traders may consider using 5% equity stops, but note that this amount is generally considered to be the upper limit of prudent money management because 10 consecutive wrong trades would draw down the account by 50%.
One strong criticism of the equity stop is that it places an arbitrary exit point on a trader's position. The trade is liquidated not as a result of a logical response to the price action of the marketplace, but rather to satisfy the trader's internal risk controls.
2. Chart Stop
Technical analysis can generate thousands of possible stops, driven by the price action of the charts or by various technical indicator signals. Technically oriented traders like to combine these exit points with standard equity stop rules to formulate charts stops. A classic example of a chart stop is the swing high/low point. In Figure 2 a trader with our hypothetical $10,000 account using the chart stop could sell one mini lot risking 150 points, or about 1.5% of the account.
3. Volatility Stop
A more sophisticated version of the chart stop uses volatility instead of price action to set risk parameters. The idea is that in a high volatility environment, when prices traverse wide ranges, the trader needs to adapt to the present conditions and allow the position more room for risk to avoid being stopped out by intra-market noise. The opposite holds true for a low volatility environment, in which risk parameters would need to be compressed.
One easy way to measure volatility is through the use of Bollinger bands, which employ standard deviation to measure variance in price. Figures 3 and 4 show a high volatility and a low volatility stop with Bollinger bands. In Figure 3 the volatility stop also allows the trader to use a scale-in approach to achieve a better "blended" price and a faster breakeven point. Note that the total risk exposure of the position should not exceed 2% of the account; therefore, it is critical that the trader use smaller lots to properly size his or her cumulative risk in the trade.
Figure 44. Margin Stop
This is perhaps the most unorthodox of all money management strategies, but it can be an effective method in FX, if used judiciously. Unlike exchange-based markets, FX markets operate 24 hours a day. Therefore, FX dealers can liquidate their customer positions almost as soon as they trigger a margin call. For this reason, FX customers are rarely in danger of generating a negative balance in their account, since computers automatically close out all positions.
This money management strategy requires the trader to subdivide his or her capital into 10 equal parts. In our original $10,000 example, the trader would open the account with an FX dealer but only wire $1,000 instead of $10,000, leaving the other $9,000 in his or her bank account. Most FX dealers offer 100:1 leverage, so a $1,000 deposit would allow the trader to control one standard 100,000-unit lot. However, even a 1 point move against the trader would trigger a margin call (since $1,000 is the minimum that the dealer requires). So, depending on the trader's risk tolerance, he or she may choose to trade a 50,000-unit lot position, which allows him or her room for almost 100 points (on a 50,000 lot the dealer requires $500 margin, so $1,000 – 100-point loss* 50,000 lot = $500). Regardless of how much leverage the trader assumed, this controlled parsing of his or her speculative capital would prevent the trader from blowing up his or her account in just one trade and would allow him or her to take many swings at a potentially profitable set-up without the worry or care of setting manual stops. For those traders who like to practice the "have a bunch, bet a bunch" style, this approach may be quite interesting.
Conclusion
As you can see, money management in FX is as flexible and as varied as the market itself. The only universal rule is that all traders in this market must practice some form of it in order to succeed.
By Boris Schlossberg, Senior Currency Strategist, FXCM
http://www.goforex.net/forex-money-management.htm
•Technical Analysis in the Foreign Exchange Market: A Layman's Guide
full book >>>>click here
by Christopher J. Neely
Technical analysis, which dates back a century to the writings of Wall Street Journal editor Charles Dow, is the use of past price behavior to guide trading decisions in asset markets. For example, a trading rule might suggest buying a currency if its price has risen more than 1 percent from its value five days earlier. Such rules are widely used in stock, commodity, and (since the early 1970s) foreign exchange markets. More than 90 percent of surveyed foreign exchange dealers in London report using some form of technical analysis to inform their trading decisions (Taylor and Allen, 1992). In fact, at short horizons—less than a week—technical analysis predominates over fundamental analysis, the use of other economic variables like interest rates, and prices in influencing trading decisions. Investors and economists are interested in technical analysis for different reasons. Investors are concerned with “beating the market,” earning the best return on their money. Economists study technical analysis in foreign exchange markets because its success casts doubt on the efficient markets hypothesis, which holds that publicly available information, like past prices, should not help traders earn unusually high returns. Instead, the success of technical analysis suggests that exchange rates are not always determined by economic fundamentals like prices and interest rates, but rather are driven away from their fundamental values for long periods by traders’ irrational expectations of future exchange rate changes. These swings away from fundamental values may discourage international trade and investment by making the relative price of U.S. and foreign goods and investments very volatile. For example, when BMW decides where to build an automobile factory, it may choose poorly if fluctuating exchange rates make it difficult or impossible to predict costs of production in the United States relative to those in Germany. Despite the widespread use of technical analysis in foreign exchange (and other) markets, economists have traditionally been very skeptical of its value. Technical analysis has been dismissed by some as astrology. In turn, technical traders have frequently misunderstood what economists have to say about asset price behavior. What can the two learn from each other? This article provides an accessible treatment of recent research on technical analysis in the foreign exchange market.
full book >>>>click here
by Christopher J. Neely
Technical analysis, which dates back a century to the writings of Wall Street Journal editor Charles Dow, is the use of past price behavior to guide trading decisions in asset markets. For example, a trading rule might suggest buying a currency if its price has risen more than 1 percent from its value five days earlier. Such rules are widely used in stock, commodity, and (since the early 1970s) foreign exchange markets. More than 90 percent of surveyed foreign exchange dealers in London report using some form of technical analysis to inform their trading decisions (Taylor and Allen, 1992). In fact, at short horizons—less than a week—technical analysis predominates over fundamental analysis, the use of other economic variables like interest rates, and prices in influencing trading decisions. Investors and economists are interested in technical analysis for different reasons. Investors are concerned with “beating the market,” earning the best return on their money. Economists study technical analysis in foreign exchange markets because its success casts doubt on the efficient markets hypothesis, which holds that publicly available information, like past prices, should not help traders earn unusually high returns. Instead, the success of technical analysis suggests that exchange rates are not always determined by economic fundamentals like prices and interest rates, but rather are driven away from their fundamental values for long periods by traders’ irrational expectations of future exchange rate changes. These swings away from fundamental values may discourage international trade and investment by making the relative price of U.S. and foreign goods and investments very volatile. For example, when BMW decides where to build an automobile factory, it may choose poorly if fluctuating exchange rates make it difficult or impossible to predict costs of production in the United States relative to those in Germany. Despite the widespread use of technical analysis in foreign exchange (and other) markets, economists have traditionally been very skeptical of its value. Technical analysis has been dismissed by some as astrology. In turn, technical traders have frequently misunderstood what economists have to say about asset price behavior. What can the two learn from each other? This article provides an accessible treatment of recent research on technical analysis in the foreign exchange market.
full book >>>>click here
Saturday, August 7, 2010
Advantages of the Forex Market
What are the advantages of the Forex Market over other types of investments?
When thinking about various investments, there is one investment vehicle that comes to mind. The Forex or Foreign Currency Market has many advantages over other types of investments. The Forex market is open 24 hrs a day, unlike the regular stock markets. Most investments require a substantial amount of capital before you can take advantage of an investment opportunity. To trade Forex, you only need a small amount of capital. Anyone can enter the market with as little as $300 USD to trade a "mini account", which allows you to trade lots of 10,000 units. One lot of 10,000 units of currency is equal to 1 contract. Each "pip" or move up or down in the currency pair is worth a $1 gain or loss, depending on which side of the market you are on. A standard account gives you control over 100,000 units of currency and a pip is worth $10.
The Forex market is also very liquid. When trading Forex you have full control of your capital.
Many other types of investments require holding your money up for long periods of time. This is a disadvantage because if you need to use the capital it can be difficult to access to it without taking a huge loss. Also, with a small amount of money, you can control
Forex traders can be profitable in bullish or bearish market conditions. Stock market traders need stock prices to rise in order to take a profit. Forex traders can make a profit during up trends and downtrends. Forex Trading can be risky, but with having the ability to have a good system to follow, good money management skills, and possessing self discipline, Forex trading can be a relatively low risk investment.
The Forex market can be traded anytime, anywhere. As long as you have access to a computer, you have the ability to trade the Forex market. An important thing to remember is before jumping into trading currencies, is it wise to practice with "paper money", or "fake money." Most brokers have demo accounts where you can download their trading station and practice real time with fake money. While this is no guarantee of your performance with real money, practicing can give you a huge advantage to become better prepared when you trade with your real, hard earned money. There are also many Forex courses on the internet, just be careful when choosing which ones to purchase.
by Heather Redmond
http://www.earnforex.com/articles/advantages-of-the-forex-market
When thinking about various investments, there is one investment vehicle that comes to mind. The Forex or Foreign Currency Market has many advantages over other types of investments. The Forex market is open 24 hrs a day, unlike the regular stock markets. Most investments require a substantial amount of capital before you can take advantage of an investment opportunity. To trade Forex, you only need a small amount of capital. Anyone can enter the market with as little as $300 USD to trade a "mini account", which allows you to trade lots of 10,000 units. One lot of 10,000 units of currency is equal to 1 contract. Each "pip" or move up or down in the currency pair is worth a $1 gain or loss, depending on which side of the market you are on. A standard account gives you control over 100,000 units of currency and a pip is worth $10.
The Forex market is also very liquid. When trading Forex you have full control of your capital.
Many other types of investments require holding your money up for long periods of time. This is a disadvantage because if you need to use the capital it can be difficult to access to it without taking a huge loss. Also, with a small amount of money, you can control
Forex traders can be profitable in bullish or bearish market conditions. Stock market traders need stock prices to rise in order to take a profit. Forex traders can make a profit during up trends and downtrends. Forex Trading can be risky, but with having the ability to have a good system to follow, good money management skills, and possessing self discipline, Forex trading can be a relatively low risk investment.
The Forex market can be traded anytime, anywhere. As long as you have access to a computer, you have the ability to trade the Forex market. An important thing to remember is before jumping into trading currencies, is it wise to practice with "paper money", or "fake money." Most brokers have demo accounts where you can download their trading station and practice real time with fake money. While this is no guarantee of your performance with real money, practicing can give you a huge advantage to become better prepared when you trade with your real, hard earned money. There are also many Forex courses on the internet, just be careful when choosing which ones to purchase.
by Heather Redmond
http://www.earnforex.com/articles/advantages-of-the-forex-market
Friday, August 6, 2010
Guide for Beginners
An Educational Guide for Beginners
New in the Forex market? This market may sound really complicated and scary to tackle but it’s not. Just like in any kinds of trade, you make money when you buy low and sell high. Forex trading is simply trading currencies in the Forex market.
Forex is the largest financial market in the world. It generates trillions of dollars of currency exchanges everyday and it operates 24 hours a day and seven days a week therefore, also making it the most liquid market in the world.
In the world of Forex, trading in this very liquid market is very unique compared to other financial market like stocks. Since the Forex market operates 24 hours a day worldwide, which starts at Sydney and ends in New York, trading is not centralized in one location. You can trade in Forex whenever you want regardless of the local time.
In the past, Forex trading was only offered to large financial institutions, like banks. And, it was also only offered to large companies, multi-national corporations and large currency dealers. This is because of the large and extremely strict financial requirements the Forex market imposed. This means that individual traders and small businesses are not able to participate in this liquid market.
However, in the late 90s, Forex was made available to individual traders and small businesses. This is due to the advances in the communications technology. High speed internet made it possible for people to enter the Forex market and have become one of the best make money at home businesses.
Forex trading is getting more and more popular each day. Besides, who wouldn’t want to trade in the largest and the most liquid financial market in the world? Trading in Forex will certainly give you the opportunity to earn a lot of money. However, trading in this ever liquid market also has its risk. It is a fact that many people who traded in Forex lost a substantial amount of money and some of these people are seasoned traders.
This is why it is very important for you, as a beginner trader in the Forex market, to have the proper knowledge and education on how to trade in the Forex market. Firstly, there are hundreds or even thousands of available websites in the internet that offers Forex education. Some of these websites offer dummy Forex trading where you can practice trading in the Forex market using dummy money.
These programs will really take you closer to actually trading in Forex. Many experts say that you’ll never really understand how Forex really works until you traded in the market. So, if you want to learn how to trade Forex, you may want to sign up for a dummy account that numerous Forex trading websites offer.
With a dummy account, you can trade Forex by not using real money at all. With this program you can practice your knowledge and skills in trading in the Forex market and not waste money.
To get started in trading in this market, all you need is a computer with a high speed internet connection, a funded Forex account, and a trading system. These three simple things are enough to get you started in Forex trading.
In order for you to minimize the risk of losing money, you need to have some basic knowledge in charting before you start trading. In most Forex trading systems, Forex charts are there to assist you with your trades. Forex charts are a visual representation of the exchange rates of currencies. This is where you will mostly base your decisions to buy and sell currencies. You have to learn how to read the different Forex charts in order for you to successfully trade in the Forex market.
Each Forex chart is different although they represent the same fluctuations. For example, in the daily Forex chart, you can evaluate market trends in the past 24 hours to help you make decisions on the next 24 hours of trading. In the hourly chart, you can use this chart to spot trends within the day. And, in the 15 minute chart, where it can help you recent currency fluctuations in a 15 minute interval to help you decide on which currency to buy and sell. Sometimes, there are 5 minute chart available to better help you get closer to the action.
These are the basics on how to trade in the Forex market. Always remember that aside from the promising earning potential that you can have in the Forex market, there are also underlying risks that you have to consider. It is therefore wise to trade in this market with a proper investment plan and strategy. If you are just starting out to trade in Forex, consider opening a dummy account to help you practice trading Forex without risking money.
http://www.trading-forex.co.za/guide-for-beginners/
New in the Forex market? This market may sound really complicated and scary to tackle but it’s not. Just like in any kinds of trade, you make money when you buy low and sell high. Forex trading is simply trading currencies in the Forex market.
Forex is the largest financial market in the world. It generates trillions of dollars of currency exchanges everyday and it operates 24 hours a day and seven days a week therefore, also making it the most liquid market in the world.
In the world of Forex, trading in this very liquid market is very unique compared to other financial market like stocks. Since the Forex market operates 24 hours a day worldwide, which starts at Sydney and ends in New York, trading is not centralized in one location. You can trade in Forex whenever you want regardless of the local time.
In the past, Forex trading was only offered to large financial institutions, like banks. And, it was also only offered to large companies, multi-national corporations and large currency dealers. This is because of the large and extremely strict financial requirements the Forex market imposed. This means that individual traders and small businesses are not able to participate in this liquid market.
However, in the late 90s, Forex was made available to individual traders and small businesses. This is due to the advances in the communications technology. High speed internet made it possible for people to enter the Forex market and have become one of the best make money at home businesses.
Forex trading is getting more and more popular each day. Besides, who wouldn’t want to trade in the largest and the most liquid financial market in the world? Trading in Forex will certainly give you the opportunity to earn a lot of money. However, trading in this ever liquid market also has its risk. It is a fact that many people who traded in Forex lost a substantial amount of money and some of these people are seasoned traders.
This is why it is very important for you, as a beginner trader in the Forex market, to have the proper knowledge and education on how to trade in the Forex market. Firstly, there are hundreds or even thousands of available websites in the internet that offers Forex education. Some of these websites offer dummy Forex trading where you can practice trading in the Forex market using dummy money.
These programs will really take you closer to actually trading in Forex. Many experts say that you’ll never really understand how Forex really works until you traded in the market. So, if you want to learn how to trade Forex, you may want to sign up for a dummy account that numerous Forex trading websites offer.
With a dummy account, you can trade Forex by not using real money at all. With this program you can practice your knowledge and skills in trading in the Forex market and not waste money.
To get started in trading in this market, all you need is a computer with a high speed internet connection, a funded Forex account, and a trading system. These three simple things are enough to get you started in Forex trading.
In order for you to minimize the risk of losing money, you need to have some basic knowledge in charting before you start trading. In most Forex trading systems, Forex charts are there to assist you with your trades. Forex charts are a visual representation of the exchange rates of currencies. This is where you will mostly base your decisions to buy and sell currencies. You have to learn how to read the different Forex charts in order for you to successfully trade in the Forex market.
Each Forex chart is different although they represent the same fluctuations. For example, in the daily Forex chart, you can evaluate market trends in the past 24 hours to help you make decisions on the next 24 hours of trading. In the hourly chart, you can use this chart to spot trends within the day. And, in the 15 minute chart, where it can help you recent currency fluctuations in a 15 minute interval to help you decide on which currency to buy and sell. Sometimes, there are 5 minute chart available to better help you get closer to the action.
These are the basics on how to trade in the Forex market. Always remember that aside from the promising earning potential that you can have in the Forex market, there are also underlying risks that you have to consider. It is therefore wise to trade in this market with a proper investment plan and strategy. If you are just starting out to trade in Forex, consider opening a dummy account to help you practice trading Forex without risking money.
http://www.trading-forex.co.za/guide-for-beginners/
Making Money with Automatic Forex Trading Software
Money is used everyday. You use it to buy all the things necessary to make it possible to live your everyday life. You use money to purchase food, purchase gas for your car, pay for your utility bills and you use money to get your children the best education you can possibly give them.
It is a fact that money is one of the most important things in life. This is why there are trading systems available that trade world currency.
Forex is the most liquid and largest financial market in the world. This market literally operates 24 hours a day, seven days a week in the whole world with trillions of dollars being exchanged everyday.
If you are a trader, you would really want to consider trading in Forex. Besides, who wouldn’t want to trade in the largest financial market in the world? It is a fact that Forex can create the possibility for you to earn high amounts of income.
There is even Forex trading softwares available to help you with your Forex trades. This type of software can really help you make money in Forex by automatically buying and selling currencies for you.
If you are a speculator, Forex automatic trading software is the best software for you. You can choose which kind of software you want. In fact, when you sign up in an online Forex trading website, some of these websites can offer you free automatic trading software as a part of their promo by opening a Forex account with them.
However, this free software that websites offer you can just be a demo package with limited features. The website will usually require you to make an extra payment for the use of the full version of the software.
There are also different Forex trading softwares available in the internet for use or for download. You might want to try out the demo version first before you buy the full version. By doing this, you can try out different Forex trading software for free and determine which software you are most comfortable using. You should consider that as a Forex trader, getting an automatic Forex trading system is essential in today’s world of Forex trading.
There are mainly two types of automatic trading software available. One is the web based programs and the other is the desktop based programs. It is up to you to choose which program you want and is also up to you to determine which program is much easier to use in assisting you with your Forex trades.
Whether you choose an online-based or desktop-based Forex trading software, you have to know that the most important factor in using this software is the internet speed. It is recommended that you should have a high speed internet connection as a simple delay in information can cause losses.
In desktop-based software, the trading data is stored in your hard drive. However, you will be responsible for the security issues like hacking, viruses, and crashing hard drives. Therefore, it is essential to devote a single personal computer for trading Forex or using computers that are especially made for trading Forex, which can be expensive.
In web-based software, security issues are a problem the provider should take care of. Since there is no required software for you to download, it is much more convenient to trade. And, web-based Forex trading software is also much more convenient for Forex traders who travel a lot. This is because you can access your Forex account anytime and anywhere you are in the world as long as there is an active internet connection.
However, in web-based software, you have to pay a minimum monthly or annual fee for maintenance unlike in desktop-based software, you usually only have to pay a one time fee for download.
Both types of software has its own advantages and disadvantages, it is up to you to determine which kind of Forex trading software can benefit you most. Try to consider your lifestyle when it comes to choosing which software you need. For example, if you travel a lot and you need to access your Forex account frequently, then the web-based software is the right software for you.
These are the things you should consider when choosing Forex trading software. As much as possible, you should choose automatic Forex trading software to really get the benefits you want. Also, choose software that will include real time data streaming to keep you up to date with the different changes in the Forex market.
http://www.trading-forex.co.za/forex-trading-software/
It is a fact that money is one of the most important things in life. This is why there are trading systems available that trade world currency.
Forex is the most liquid and largest financial market in the world. This market literally operates 24 hours a day, seven days a week in the whole world with trillions of dollars being exchanged everyday.
If you are a trader, you would really want to consider trading in Forex. Besides, who wouldn’t want to trade in the largest financial market in the world? It is a fact that Forex can create the possibility for you to earn high amounts of income.
There is even Forex trading softwares available to help you with your Forex trades. This type of software can really help you make money in Forex by automatically buying and selling currencies for you.
If you are a speculator, Forex automatic trading software is the best software for you. You can choose which kind of software you want. In fact, when you sign up in an online Forex trading website, some of these websites can offer you free automatic trading software as a part of their promo by opening a Forex account with them.
However, this free software that websites offer you can just be a demo package with limited features. The website will usually require you to make an extra payment for the use of the full version of the software.
There are also different Forex trading softwares available in the internet for use or for download. You might want to try out the demo version first before you buy the full version. By doing this, you can try out different Forex trading software for free and determine which software you are most comfortable using. You should consider that as a Forex trader, getting an automatic Forex trading system is essential in today’s world of Forex trading.
There are mainly two types of automatic trading software available. One is the web based programs and the other is the desktop based programs. It is up to you to choose which program you want and is also up to you to determine which program is much easier to use in assisting you with your Forex trades.
Whether you choose an online-based or desktop-based Forex trading software, you have to know that the most important factor in using this software is the internet speed. It is recommended that you should have a high speed internet connection as a simple delay in information can cause losses.
In desktop-based software, the trading data is stored in your hard drive. However, you will be responsible for the security issues like hacking, viruses, and crashing hard drives. Therefore, it is essential to devote a single personal computer for trading Forex or using computers that are especially made for trading Forex, which can be expensive.
In web-based software, security issues are a problem the provider should take care of. Since there is no required software for you to download, it is much more convenient to trade. And, web-based Forex trading software is also much more convenient for Forex traders who travel a lot. This is because you can access your Forex account anytime and anywhere you are in the world as long as there is an active internet connection.
However, in web-based software, you have to pay a minimum monthly or annual fee for maintenance unlike in desktop-based software, you usually only have to pay a one time fee for download.
Both types of software has its own advantages and disadvantages, it is up to you to determine which kind of Forex trading software can benefit you most. Try to consider your lifestyle when it comes to choosing which software you need. For example, if you travel a lot and you need to access your Forex account frequently, then the web-based software is the right software for you.
These are the things you should consider when choosing Forex trading software. As much as possible, you should choose automatic Forex trading software to really get the benefits you want. Also, choose software that will include real time data streaming to keep you up to date with the different changes in the Forex market.
http://www.trading-forex.co.za/forex-trading-software/
Thursday, August 5, 2010
Forex Strategy Builder - download
Forex Strategy Builder - Overview-download
Forex Strategy Builder is a platform for creating, testing and analysing trading strategies for the forex market. It provides an easy way of building forex strategies by combining various technical indicators. All necessary parameters and logic rules can be selected from menus, and you don't have to write formulas or a program code.
Forex Strategy Builder uses real forex data to perform back tests for the various foreign exchange pairs or time periods and calculate the real life result of the strategy. It supplies detailed charts and statistics, and the automatic journals show all transactions and positions, as well as the changes in your virtual bank account.
Forex Strategy Builder shows the real situation as if you were trading the strategy on the market. Moreover, you will be able to test the strategies that books or analyzers suggest and see for yourself if they are profitable or not. Simply set your strategy in Forex Strategy Builder and it will show your virtual bank account as if you had traded in the selected period. If this virtual balance falls, it is a certain indicator that this strategy will lose money in real trade, but if the balance goes up, the strategy may be profitable.
Forex Strategy Builder also provides a strategy generator that allows even the total newbie to create a strategy with the click of a button. After the strategy is generated you can read the detailed explanation in the overview. Experienced traders use the generator to add more indicators to their existing strategy and improve their trading.
Other unique feature of Forex Strategy Builder is the intrabar scanner. Its purpose is to ensure that the back test resembles the real movement of the price as close as possible by loading all the available time frame data. The intrabar explorer allows you to check the price movement inside each bar and see the exact order of trades during that time period.
The Optimizer can be used to adjust the indicators' parameters for maximum profit but this often leads to over-optimization and we don't recommend it for real trading purposes.
Detailed information about the downloading, the system requirements and the installation of this program can be found in the download page.
http://forexsb.com/overview.html
Tips To Create A Forex Mini Account
By: Shamyl Burki
Foreign exchange trading or forex trading is done using a trading account. There are generally three types of trading accounts namely Standard Account, Mini account and Micro Account. For most first time and occasional traders, Forex mini account serves as the ideal way to invest in the market. A forex mini account needs less money as compared to a standard account and thus involves much lower risks for investors. A well planned forex investment gives huge returns in a very short period of time.
The advantage of a forex mini account is that it helps you acheive the same benefits as a regular account such as the free trading platform, small spreads, etc. It is much easier to trade, as many amateur investors end up making losses using a standard account. A forex mini account saves a lot of money on part of the investors. In due course it will help you develop your own trading strategy.
There are however a few tips that need to be kept in mind while creating a forex mini account:
Take advice from people who have already created a forex mini account. They can be your best source of information and better than a broker as they will give you an unbiased opinion. These people may also share their personal experience of trading with you.
All that you will need to open a forex mini account is $300. You can create this account online as there are a number of sites which offer this service in lieu of the before mentioned service charge. The account opening form may vary from broker to broker.
Once the broker has received all the necessary paperwork, you will receive an email with instructions on completing your account activation. After these steps have been completed, you will receive a final email with your username, password, and instructions on how to fund your account.
You will need to submit two documents, one of which needs to be a government issued ID like a driver's license or passport, and the other a proof of residence like a utility bill.
Be it an online form or in hard copy, you should read all the clauses mentioned by the party. This will prevent you from getting duped by people.
It is also very important for you to fill in your contact address along with your e-mail ID and phone number. This will ensure that updates of your financial transactions will always reach you even if you change your residence.
Foreign exchange is one of the best forms of investment and can generate high returns in a very short period of time. However it is important that you keep the above mentioned information in mind before investing through a forex mini account.
Shamyl Burki shares some information about how forex mini account has become one of the best ways to invest.
http://www.articlefeeder.com/Finance/Tips_To_Create_A_Forex_Mini_Account.html
Foreign exchange trading or forex trading is done using a trading account. There are generally three types of trading accounts namely Standard Account, Mini account and Micro Account. For most first time and occasional traders, Forex mini account serves as the ideal way to invest in the market. A forex mini account needs less money as compared to a standard account and thus involves much lower risks for investors. A well planned forex investment gives huge returns in a very short period of time.
The advantage of a forex mini account is that it helps you acheive the same benefits as a regular account such as the free trading platform, small spreads, etc. It is much easier to trade, as many amateur investors end up making losses using a standard account. A forex mini account saves a lot of money on part of the investors. In due course it will help you develop your own trading strategy.
There are however a few tips that need to be kept in mind while creating a forex mini account:
Take advice from people who have already created a forex mini account. They can be your best source of information and better than a broker as they will give you an unbiased opinion. These people may also share their personal experience of trading with you.
All that you will need to open a forex mini account is $300. You can create this account online as there are a number of sites which offer this service in lieu of the before mentioned service charge. The account opening form may vary from broker to broker.
Once the broker has received all the necessary paperwork, you will receive an email with instructions on completing your account activation. After these steps have been completed, you will receive a final email with your username, password, and instructions on how to fund your account.
You will need to submit two documents, one of which needs to be a government issued ID like a driver's license or passport, and the other a proof of residence like a utility bill.
Be it an online form or in hard copy, you should read all the clauses mentioned by the party. This will prevent you from getting duped by people.
It is also very important for you to fill in your contact address along with your e-mail ID and phone number. This will ensure that updates of your financial transactions will always reach you even if you change your residence.
Foreign exchange is one of the best forms of investment and can generate high returns in a very short period of time. However it is important that you keep the above mentioned information in mind before investing through a forex mini account.
Shamyl Burki shares some information about how forex mini account has become one of the best ways to invest.
http://www.articlefeeder.com/Finance/Tips_To_Create_A_Forex_Mini_Account.html
How To Select The Best Forex Broker
By: tom tag
Fundamental factor, in the choice of the brokerage is the amount of the start-up capital. Requirements for the initial deposit size amount have been significantly reduced now, compared to previous years, when the minimum deposit used to be $2000. Now many http://www.liteforex.org"Forex brokers offer their prospective customers an opportunity to open cent accounts with the initial deposit of $1.
Principles of operation with cent accounts are the same as with a dollar account, which is a great advantage for a beginner, who does not possess big assets. While selecting Forex broker attention should also be paid to the availability of the technical support service and communication quality. In the best communication between a client and a brokerage shall last 24 hours. A good aspect in trader’s work is additional services, provided by brokerage, such as: technical analysis programs, Forex dataflow, analytical surveys and so on.
LiteForex
- http://www.liteforex.org" Forex brokerage functions at the market since 2005, governed by RAUFR.
- Initial deposit amount: from $1
- Trading tools: 83 trading tools, including gold, silver and 8 currency indexes.
- Demo-account: available
Forex Club
- Forex brokerage is at the market since 1997, company’s activity is supervised by FRA
- Initial deposit amount: $10
- Demo account: available, company also provides exchange trade training.
- Spread size and type: from 1 point
Pro Finance Service, Inc
- Forex brokerage was founded in 1995, until 1999 the company provided dealing service at the Forex market via telephone trading desk.
- Initial deposit amount: from $500
- Trading tools: 16 currency pairs and CFD for the American fund index
- Demo-account: available
FxPro
- Brokerage functions at the Forex market since 2006
- Initial deposit amount: from $5
- Trading tools: more than 100 financial tools are available, including spot metals CFD for futures.
- Demo account: provided
FIBO Group, ltd
- Forex brokerage has been at the market since 2004
- Initial deposit amount: from $300
- Trading tools: more than 60 currency pairs
- Demo account: available
Alpari
- Brokerage has been at the Forex market since 1998, company’s activity is governed by FRA.
- Initial deposit amount: from $200
- Demo-accounts: available for each trading platform.
- Trading accounts: alpari.micro, alpari.classic, alpari.pamm, alpari.pro
- Spread type and size: from 0.5 points.
If u want to know about Forex then u have to come at Forex brokers
http://www.articlefeeder.com/Finance/How_To_Select_The_Best_Forex_Broker.html
Fundamental factor, in the choice of the brokerage is the amount of the start-up capital. Requirements for the initial deposit size amount have been significantly reduced now, compared to previous years, when the minimum deposit used to be $2000. Now many http://www.liteforex.org"Forex brokers offer their prospective customers an opportunity to open cent accounts with the initial deposit of $1.
Principles of operation with cent accounts are the same as with a dollar account, which is a great advantage for a beginner, who does not possess big assets. While selecting Forex broker attention should also be paid to the availability of the technical support service and communication quality. In the best communication between a client and a brokerage shall last 24 hours. A good aspect in trader’s work is additional services, provided by brokerage, such as: technical analysis programs, Forex dataflow, analytical surveys and so on.
LiteForex
- http://www.liteforex.org" Forex brokerage functions at the market since 2005, governed by RAUFR.
- Initial deposit amount: from $1
- Trading tools: 83 trading tools, including gold, silver and 8 currency indexes.
- Demo-account: available
Forex Club
- Forex brokerage is at the market since 1997, company’s activity is supervised by FRA
- Initial deposit amount: $10
- Demo account: available, company also provides exchange trade training.
- Spread size and type: from 1 point
Pro Finance Service, Inc
- Forex brokerage was founded in 1995, until 1999 the company provided dealing service at the Forex market via telephone trading desk.
- Initial deposit amount: from $500
- Trading tools: 16 currency pairs and CFD for the American fund index
- Demo-account: available
FxPro
- Brokerage functions at the Forex market since 2006
- Initial deposit amount: from $5
- Trading tools: more than 100 financial tools are available, including spot metals CFD for futures.
- Demo account: provided
FIBO Group, ltd
- Forex brokerage has been at the market since 2004
- Initial deposit amount: from $300
- Trading tools: more than 60 currency pairs
- Demo account: available
Alpari
- Brokerage has been at the Forex market since 1998, company’s activity is governed by FRA.
- Initial deposit amount: from $200
- Demo-accounts: available for each trading platform.
- Trading accounts: alpari.micro, alpari.classic, alpari.pamm, alpari.pro
- Spread type and size: from 0.5 points.
If u want to know about Forex then u have to come at Forex brokers
http://www.articlefeeder.com/Finance/How_To_Select_The_Best_Forex_Broker.html
6 Important Tips For Apprentice Forex Traders
The initial step on the road to being a successful Forex trader is education and there are several different ways to master the workings of Forex trading. But, while the knowledge acquired through education is essential to your trading success, it is only one part of the puzzle for your real success.
So, before you rush straight from your Forex training course into the live world of trading, here are 6 indispensable tips.
1. Adopt the correct outlook. The really successful Forex traders know only too well that attitude is vital and that assuming a mind-set to do whatever it takes to succeed is essential.
You can subscribe to all the tips sheets you want and listen to the 'gurus' for hours on end but success will not come until you acquire the knowledge which is needed, carefully construct your own personal strategy for trading and then simply get out there and do whatever your senses tell you is required to turn a profit.
2. Choose the correct trading method. There are several different methods for predicting the course of the foreign currency markets, together with some extremely powerful software to assist with this task, and you must pick one particular method and then stick to it.
You will have to learn the skills of charting and mapping and will have to formulate your own particular system for judging exactly when to buy and sell. There will be gains and losses and you will find yourself questioning the method you have chosen and being tempted to ditch it in favor of another method but you will have to stand your ground. As soon as you begin swapping between one method and another as a result of a trading loss you quickly discover that one loss turns into two and then three and so on.
3. Remain disciplined. While this naturally follows on from sticking to your chosen trading method it is something which you have to adopt in every aspect of your life as a foreign currency trader. Once you have decided upon your trading method and strategy you have to stick with it and must not permit yourself to be knocked off course by events or by the opinions of other people.
4. Adopt the correct mental attitude. Forex trading can be extremely stressful at times and the speed of the market and the inescapable swing between profit and loss on trades may and indeed generally does lead to considerable mental pressure. Learning to cope with the stresses of trading life is of no less importance than learning the workings of trading.
5. Do not be afraid to take risks. A common mistake seen amongst Forex traders is the fear of taking risks. Risk and reward go together like toast and marmalade and you will never be successful if you are constantly avoiding risk. Taking risks does not of course mean throwing caution to the wind and merely diving in head first, but it means that, having assessed the risk, you are prepared to push forward and trade aggressively based upon your knowledge of the market and despite the risks involved.
6. Make your own trading decision. It is essential to focus your attention when it comes to your own trading and that you are not knoecked off your course by the opinions of other people. You will be surrounded by traders who are only too willing to offer you their advice but you have to remember that the vast majority of them will do nothing more than talk a good trade. The really successful traders are a rare sight and they invariably steer their own ship.
Hurrying into Forex trading without the necessary knowledge is an extremely dodgy game but, having acquired the necessary knowledge, your success will depend very much on your capacity to set a clear course and then to steer to it regardless of anything which might attempt to throw you off your course.
LearningForexTradingOnline.com provides a wealth of advice and tools including an in-house currency calculator and is the ideal place to learn forex online currency trading
By Donald Saunders
http://www.buzzle.com/articles/6-important-tips-for-apprentice-forex-traders.html
So, before you rush straight from your Forex training course into the live world of trading, here are 6 indispensable tips.
1. Adopt the correct outlook. The really successful Forex traders know only too well that attitude is vital and that assuming a mind-set to do whatever it takes to succeed is essential.
You can subscribe to all the tips sheets you want and listen to the 'gurus' for hours on end but success will not come until you acquire the knowledge which is needed, carefully construct your own personal strategy for trading and then simply get out there and do whatever your senses tell you is required to turn a profit.
2. Choose the correct trading method. There are several different methods for predicting the course of the foreign currency markets, together with some extremely powerful software to assist with this task, and you must pick one particular method and then stick to it.
You will have to learn the skills of charting and mapping and will have to formulate your own particular system for judging exactly when to buy and sell. There will be gains and losses and you will find yourself questioning the method you have chosen and being tempted to ditch it in favor of another method but you will have to stand your ground. As soon as you begin swapping between one method and another as a result of a trading loss you quickly discover that one loss turns into two and then three and so on.
3. Remain disciplined. While this naturally follows on from sticking to your chosen trading method it is something which you have to adopt in every aspect of your life as a foreign currency trader. Once you have decided upon your trading method and strategy you have to stick with it and must not permit yourself to be knocked off course by events or by the opinions of other people.
4. Adopt the correct mental attitude. Forex trading can be extremely stressful at times and the speed of the market and the inescapable swing between profit and loss on trades may and indeed generally does lead to considerable mental pressure. Learning to cope with the stresses of trading life is of no less importance than learning the workings of trading.
5. Do not be afraid to take risks. A common mistake seen amongst Forex traders is the fear of taking risks. Risk and reward go together like toast and marmalade and you will never be successful if you are constantly avoiding risk. Taking risks does not of course mean throwing caution to the wind and merely diving in head first, but it means that, having assessed the risk, you are prepared to push forward and trade aggressively based upon your knowledge of the market and despite the risks involved.
6. Make your own trading decision. It is essential to focus your attention when it comes to your own trading and that you are not knoecked off your course by the opinions of other people. You will be surrounded by traders who are only too willing to offer you their advice but you have to remember that the vast majority of them will do nothing more than talk a good trade. The really successful traders are a rare sight and they invariably steer their own ship.
Hurrying into Forex trading without the necessary knowledge is an extremely dodgy game but, having acquired the necessary knowledge, your success will depend very much on your capacity to set a clear course and then to steer to it regardless of anything which might attempt to throw you off your course.
LearningForexTradingOnline.com provides a wealth of advice and tools including an in-house currency calculator and is the ideal place to learn forex online currency trading
By Donald Saunders
http://www.buzzle.com/articles/6-important-tips-for-apprentice-forex-traders.html
Forex Online System Trading - 3 Tips for Choosing the Best Forex Online System
By Feredict Torres
It is not easy for you to get the best one amongst lots of trading solutions available today for your forex trading. Here you will find 3 helpful tips that are advantageous to your best choice of forex online system.
1. It is advisable to pick a website in which you can find a good broker standing. In other words, that site should offer tips on forex online system trading in some section. This is extremely useful as you are doing online forex trading. That site also should include good quality materials. Once the site has its materials of not good quality but of a sort of fuzzy thing that can not tell you much, it will also offer no really good customer support.
2. You should be interested in some website that offers you using a practice account that should be provided by any respectable broker website. You can learn much more about forex online system trading when running a practice account. It will be a good chance for you to practice trading without losing your real money because you use "play money" to practice trading with live data. Through this valuable practice, you are able to learn to use the system as well as interpret the signs of market that let you know the time you should trade - buy, sell or just standby.
3. You need to take a good deal of notice of the customer service websites provide. The structure in which the site is organized is able to reflect somehow the quality of its customer support. So it is necessary for you to have a look at the way it is structured. And to evaluate its customer support more exactly, you just need contact them when you have any problem with your account. The ideal service should be willing to give help anytime you need.
These tips are expected to support you to have a right choice of a forex online system trading so that you gain as huge profits as possible in the marvellous world of forex trading.
http://www.buzzle.com/articles/forex-online-system-trading-3tips-for-choosing-the-best-forex-online-system.html
It is not easy for you to get the best one amongst lots of trading solutions available today for your forex trading. Here you will find 3 helpful tips that are advantageous to your best choice of forex online system.
1. It is advisable to pick a website in which you can find a good broker standing. In other words, that site should offer tips on forex online system trading in some section. This is extremely useful as you are doing online forex trading. That site also should include good quality materials. Once the site has its materials of not good quality but of a sort of fuzzy thing that can not tell you much, it will also offer no really good customer support.
2. You should be interested in some website that offers you using a practice account that should be provided by any respectable broker website. You can learn much more about forex online system trading when running a practice account. It will be a good chance for you to practice trading without losing your real money because you use "play money" to practice trading with live data. Through this valuable practice, you are able to learn to use the system as well as interpret the signs of market that let you know the time you should trade - buy, sell or just standby.
3. You need to take a good deal of notice of the customer service websites provide. The structure in which the site is organized is able to reflect somehow the quality of its customer support. So it is necessary for you to have a look at the way it is structured. And to evaluate its customer support more exactly, you just need contact them when you have any problem with your account. The ideal service should be willing to give help anytime you need.
These tips are expected to support you to have a right choice of a forex online system trading so that you gain as huge profits as possible in the marvellous world of forex trading.
http://www.buzzle.com/articles/forex-online-system-trading-3tips-for-choosing-the-best-forex-online-system.html
How to access the best Forex Training program
By ac markets
Forex stands for foreign exchange. It is the largest trading market of the world with an average daily trade of US$ 2 trillion and above. The market is held in high esteem for its long working hours, geographical dispersion and extreme liquidity. A trader with basic knowledge regarding forex trading can easily earn substantial profit in forex market. And to get the knowledge of forex trading, a trader can mull over forex training programs. Following is a brief note about the nature and worthiness of forex training programs.
Forex training programs are available everywhere. Several forex firms have come up with forex training courses which are designed to boost a new trader before he lands in the forex market. The best place to get forex training is online. Just a single click will help you identify forex firms, who specialize in offering forex training programs through online method. With their help, you can get the basics of forex market and learn the ways to combat the odds of the forex market. Online method of forex training is good for newcomer for it helps him to get prepared with nuts and bolts of the trading market.
Except online, a trader of forex market can also avail training programs from traditional classrooms. Several schools and colleges have been established to offer up to date information regarding forex trading to traders. Such training programs will help you get the basics of the forex market from its root. You can get practical experience of the trading market directly from the experts. You can also find quality books on forex trading written by experts from your nearest library.
Experienced professional can also become good source for your forex education. Search out those, who have years of experience in forex trading. They can tell you what matter in the market and when to trade for earning substantial profit. Now, while selecting a forex training program, you need mull over a few important things. It is important for you to be sure about the worthiness of your forex training program. A good forex training should address the basics of the market. It should tell you how the forex market actually works. It should also talk about the risk control measures of fx trading. A good forex training program should also teach you the techniques to manage a forex trading account.
With access to a good forex training program, you get a scope to remain up to date about the latest happening of the trading industry. Here, you get a scope to learn from the masters, who have years of experience in forex market. Forex training is always beneficial for a trader, even if he has a few months of practical knowledge in forex market. And for a new comer, it is a blessing.
Forex is the largest market place of Forex Trading. While currency trading in Forex Market or dwelling over currency market, one should mull over the present scenario and future prospects of the country, currency of which he is trading.
http://www.buzzle.com/articles/how-to-access-the-best-forex-training-program.html
Forex stands for foreign exchange. It is the largest trading market of the world with an average daily trade of US$ 2 trillion and above. The market is held in high esteem for its long working hours, geographical dispersion and extreme liquidity. A trader with basic knowledge regarding forex trading can easily earn substantial profit in forex market. And to get the knowledge of forex trading, a trader can mull over forex training programs. Following is a brief note about the nature and worthiness of forex training programs.
Forex training programs are available everywhere. Several forex firms have come up with forex training courses which are designed to boost a new trader before he lands in the forex market. The best place to get forex training is online. Just a single click will help you identify forex firms, who specialize in offering forex training programs through online method. With their help, you can get the basics of forex market and learn the ways to combat the odds of the forex market. Online method of forex training is good for newcomer for it helps him to get prepared with nuts and bolts of the trading market.
Except online, a trader of forex market can also avail training programs from traditional classrooms. Several schools and colleges have been established to offer up to date information regarding forex trading to traders. Such training programs will help you get the basics of the forex market from its root. You can get practical experience of the trading market directly from the experts. You can also find quality books on forex trading written by experts from your nearest library.
Experienced professional can also become good source for your forex education. Search out those, who have years of experience in forex trading. They can tell you what matter in the market and when to trade for earning substantial profit. Now, while selecting a forex training program, you need mull over a few important things. It is important for you to be sure about the worthiness of your forex training program. A good forex training should address the basics of the market. It should tell you how the forex market actually works. It should also talk about the risk control measures of fx trading. A good forex training program should also teach you the techniques to manage a forex trading account.
With access to a good forex training program, you get a scope to remain up to date about the latest happening of the trading industry. Here, you get a scope to learn from the masters, who have years of experience in forex market. Forex training is always beneficial for a trader, even if he has a few months of practical knowledge in forex market. And for a new comer, it is a blessing.
Forex is the largest market place of Forex Trading. While currency trading in Forex Market or dwelling over currency market, one should mull over the present scenario and future prospects of the country, currency of which he is trading.
http://www.buzzle.com/articles/how-to-access-the-best-forex-training-program.html
Learn Online Forex Trading: The Basics of Forex Analysis
The Forex trading market is an around-the-clock cash market where the currencies of nations are bought and sold, typically via brokers. Forex prices can change at any moment in response to real-time events, such as political unrest or the rate of inflation. Currency market players typically use "Forex analysis" as a means of predicting currency price movements. Forex analysis is divided into two types: fundamental and technical. A fundamental analysis uses economic and political factors as a means of predicting currency movements. A technical analysis uses reliable historical data as a means of forecasting these movements. The purpose of this article is to discuss the basics of fundamental and technical analysis.
A fundamental analysis uses economic and political factors, such as housing starts, the unemployment rate, or inflation, as a means of predicting currency movements. Fundamental analysis is concerned with the reasons for currency movements. Many Forex traders who rely on fundamental analysis plan their trading strategies around a number of U.S. Government economic indicators. Some of these indicators are the Consumer Confidence Index (CCI), the Consumer Price Index (CPI), the Employment Situation Report, the Gross Domestic Product (GDP), the Composite Index of Leading Indicators, the Advance Report on Durable Goods, Housing Starts, and Initial Jobless Claims.
All of these Federal economic indicators have a marked effect on the Forex trading market. Some of these indicators are released weekly, while others are released monthly or quarterly. Their sources include the Federal Reserve, the U.S. Bureau of Labor Statistics, the U.S. Bureau of Economic Analysis (BEA), and the U.S. Census Bureau.
Forex traders must take other economic indicators into consideration as well. The world's leading economies (for example, the United Kingdom, Japan, France, and Germany) also release their own economic indicators that will have an impact on the Forex market. For example, common economic indicators in the United Kingdom include Housing Prices, Gross Domestic Product (GDP), Vehicles per 1,000 People, Telephones per 1,000 People, and the Percentage of People Employed in Agriculture.
A technical analysis uses historical data as a means of predicting currency movements. The technical analyst believes that history repeats itself over and over again. Technical analysis is not concerned with the reasons for currency movements (for example, interest rates or inflation). Instead, it believes that historical currency movements are a clear indication of future ones. The technical analyst typically uses charts as a tool in predicting currency price movements.
Investopedia states that "In a shopping mall, a fundamental analyst would go to each store, study the product that was being sold, and then decide whether to buy it or not. By contrast, a technical analyst would sit on a bench in the mall and watch people go into the stores. Disregarding the intrinsic value of the products in the store, his or her decision would be based on the patterns or activity of people going into each store."
For example, during the back-to-school buying season, the technical analyst might observe that more people are going into clothing stores than into stores selling flowers. Likewise, the technical analyst might observe that more men are going into stores selling flowers on Valentine's Day than into clothing stores.
Here is another example. Oil prices dramatically increase, thus creating inflation. Interest rates rise as a means of controlling inflation. One historical result of higher interest rates is less money to spend, thus slowing economic growth. Another historical result is increased foreign investment in the currency affected by the higher interest rates, thus strengthening it.
Some Forex traders depend on fundamental analysis while others depend on technical analysis. However, many successful Forex traders use a combination of both strategies. The important point to remember here is that no one strategy or combination of strategies is 100% certain.
Article Source: http://www.everyonesarticles.com/Article/Learn-Online-Forex-Trading-The-Basics-of-Forex-Analysis/190
By : Gregory
A fundamental analysis uses economic and political factors, such as housing starts, the unemployment rate, or inflation, as a means of predicting currency movements. Fundamental analysis is concerned with the reasons for currency movements. Many Forex traders who rely on fundamental analysis plan their trading strategies around a number of U.S. Government economic indicators. Some of these indicators are the Consumer Confidence Index (CCI), the Consumer Price Index (CPI), the Employment Situation Report, the Gross Domestic Product (GDP), the Composite Index of Leading Indicators, the Advance Report on Durable Goods, Housing Starts, and Initial Jobless Claims.
All of these Federal economic indicators have a marked effect on the Forex trading market. Some of these indicators are released weekly, while others are released monthly or quarterly. Their sources include the Federal Reserve, the U.S. Bureau of Labor Statistics, the U.S. Bureau of Economic Analysis (BEA), and the U.S. Census Bureau.
Forex traders must take other economic indicators into consideration as well. The world's leading economies (for example, the United Kingdom, Japan, France, and Germany) also release their own economic indicators that will have an impact on the Forex market. For example, common economic indicators in the United Kingdom include Housing Prices, Gross Domestic Product (GDP), Vehicles per 1,000 People, Telephones per 1,000 People, and the Percentage of People Employed in Agriculture.
A technical analysis uses historical data as a means of predicting currency movements. The technical analyst believes that history repeats itself over and over again. Technical analysis is not concerned with the reasons for currency movements (for example, interest rates or inflation). Instead, it believes that historical currency movements are a clear indication of future ones. The technical analyst typically uses charts as a tool in predicting currency price movements.
Investopedia states that "In a shopping mall, a fundamental analyst would go to each store, study the product that was being sold, and then decide whether to buy it or not. By contrast, a technical analyst would sit on a bench in the mall and watch people go into the stores. Disregarding the intrinsic value of the products in the store, his or her decision would be based on the patterns or activity of people going into each store."
For example, during the back-to-school buying season, the technical analyst might observe that more people are going into clothing stores than into stores selling flowers. Likewise, the technical analyst might observe that more men are going into stores selling flowers on Valentine's Day than into clothing stores.
Here is another example. Oil prices dramatically increase, thus creating inflation. Interest rates rise as a means of controlling inflation. One historical result of higher interest rates is less money to spend, thus slowing economic growth. Another historical result is increased foreign investment in the currency affected by the higher interest rates, thus strengthening it.
Some Forex traders depend on fundamental analysis while others depend on technical analysis. However, many successful Forex traders use a combination of both strategies. The important point to remember here is that no one strategy or combination of strategies is 100% certain.
Article Source: http://www.everyonesarticles.com/Article/Learn-Online-Forex-Trading-The-Basics-of-Forex-Analysis/190
By : Gregory
Wednesday, August 4, 2010
Online Forex Market- Wonderful Way to Make Money
Forex market is a lucrative avenue to invest money on, but it requires a great deal of knowledge about how the whole system works. The forex market has its own set of pros and cons. On one hand, it opens the gateway for earning huge profits; on the other hand it leads to heavy losses. People who are daring enough to face the negative impact of the currency trading should only think of investing capital in the online forex market. It cannot be denied that it provides a platform to enthusiastic people to change their destiny and fulfill their dreams and aspirations.
Every forex investor needs to be aware of the two sides of this venture and only then he/she will be in a better position to take the right decision. Currency trading is increasingly becoming a popular choice of the investors because of the ease of operations and huge returns it provides. Forex market has given an impetus to the business of providing specialized forex services to the new investors who want to be a part of the game but do not know the rules as to how to go about playing smartly. It is considered better to depend upon the services of forex experts rather than beating about the bush. One of the biggest benefits of online forex market is the high degree of flexibility that it offers. It operates 24X7 for your convenience.
In the stock markets, the investors cannot take any action once the market is closed. However, forex market enables its investors to trade at any point of time. The investors, therefore, have an option to minimize their potential losses. The best part is that the fluctuations taking place in other financial markets do not have an impact on the online forex market. The bear or the bull does not have the power to cause an adverse effect on the currency market. The forex market is admired for its stability and security of funds. The downside is that it is tough to find out if the companies are honest in their dealings or not. It is advisable to go in for an authentic forex broker. ACM is an ISO certified forex broker that takes the complete charge of its customers and ensures that they get high returns on their investment. They provide all the tools that the investors require to trade successfully in the currency. The percentage of risk is also quite low.
For knowing more on Online Forex Trading, Online Forex Market, Online Currency Trading, Forex Currency Exchange, Currency Trading, Forex Exchanges, and News Trading, visit www.ac-markets.com.
By : Atraczion
http://www.everyonesarticles.com/Article/Online-Forex-Market-Wonderful-Way-to-Make-Money/2392
Every forex investor needs to be aware of the two sides of this venture and only then he/she will be in a better position to take the right decision. Currency trading is increasingly becoming a popular choice of the investors because of the ease of operations and huge returns it provides. Forex market has given an impetus to the business of providing specialized forex services to the new investors who want to be a part of the game but do not know the rules as to how to go about playing smartly. It is considered better to depend upon the services of forex experts rather than beating about the bush. One of the biggest benefits of online forex market is the high degree of flexibility that it offers. It operates 24X7 for your convenience.
In the stock markets, the investors cannot take any action once the market is closed. However, forex market enables its investors to trade at any point of time. The investors, therefore, have an option to minimize their potential losses. The best part is that the fluctuations taking place in other financial markets do not have an impact on the online forex market. The bear or the bull does not have the power to cause an adverse effect on the currency market. The forex market is admired for its stability and security of funds. The downside is that it is tough to find out if the companies are honest in their dealings or not. It is advisable to go in for an authentic forex broker. ACM is an ISO certified forex broker that takes the complete charge of its customers and ensures that they get high returns on their investment. They provide all the tools that the investors require to trade successfully in the currency. The percentage of risk is also quite low.
For knowing more on Online Forex Trading, Online Forex Market, Online Currency Trading, Forex Currency Exchange, Currency Trading, Forex Exchanges, and News Trading, visit www.ac-markets.com.
By : Atraczion
http://www.everyonesarticles.com/Article/Online-Forex-Market-Wonderful-Way-to-Make-Money/2392
Interesting valuable benefits of forex options
Binary options trade now is not a diminutive, revolutionary outlay accessible simply from a few on-line trading portals. Many digital options, gold options and forex options portal for the operators have came out this year with white classification means. Therefore it seems like we are going to see plenty of more binary options or trade options websites appear of the nascent stages in the nearby outlook. Nowadays binary options have singed from a diminutive and emerging venture to a broadly handy online trading experience, and what it means for the everyday dealer?
This may be both a fine thing and dreadful thing, based on the form of digital options, gold options and forex options trader you are. Also, if you like the sensation of walking down a huge supermarket passageway and having option from above 60 similar tomato sauces, subsequently the outlook seems vivid for you. It seems that in a very short time, you will have wide choices of places to opt from to have your binary options trader account. And no one is preventing you from starting multiples.
We all identify the essential laws of availability and requirement. Fighting causes guys to seek new ways to catch the fancy of customers by shrinking price, perking up eminence and expanding fresh products and facilities. You may find yourself measuring up to digital options, gold options and forex options accounts hiring agreements and progressing where you find the best offer. Therefore keep eyes open for financial benefits offered together with your initial forex options investment. Who is acquainted with, other choices like welcome supplements and Royalty schemes may also sneak into this place.
Somewhat to keep in mind as you trade forex options is that there are lots of unlike issues that can influence the worth of merchandise including money supply and inflation. Other factors like politics, weather, transportation costs and technology also have a big control on prices, which is why options trading on merchandise is so attractive and profitable
Consequently you could conclude that online binary option picture is huge. Using matchless techniques, the portal can shore up online trading facilities any time on a broad variety of choices of forex options.
By : bbrij87
http://www.everyonesarticles.com/Article/Interesting-valuable-benefits-of-forex-options/262358
This may be both a fine thing and dreadful thing, based on the form of digital options, gold options and forex options trader you are. Also, if you like the sensation of walking down a huge supermarket passageway and having option from above 60 similar tomato sauces, subsequently the outlook seems vivid for you. It seems that in a very short time, you will have wide choices of places to opt from to have your binary options trader account. And no one is preventing you from starting multiples.
We all identify the essential laws of availability and requirement. Fighting causes guys to seek new ways to catch the fancy of customers by shrinking price, perking up eminence and expanding fresh products and facilities. You may find yourself measuring up to digital options, gold options and forex options accounts hiring agreements and progressing where you find the best offer. Therefore keep eyes open for financial benefits offered together with your initial forex options investment. Who is acquainted with, other choices like welcome supplements and Royalty schemes may also sneak into this place.
Somewhat to keep in mind as you trade forex options is that there are lots of unlike issues that can influence the worth of merchandise including money supply and inflation. Other factors like politics, weather, transportation costs and technology also have a big control on prices, which is why options trading on merchandise is so attractive and profitable
Consequently you could conclude that online binary option picture is huge. Using matchless techniques, the portal can shore up online trading facilities any time on a broad variety of choices of forex options.
By : bbrij87
http://www.everyonesarticles.com/Article/Interesting-valuable-benefits-of-forex-options/262358
Tuesday, August 3, 2010
Day Trading
Author: Lawrence Korbus
Day trading is a great way to get into the markets while reducing some of the risk. What is day trading? It is essentially trading only during daytime hours in the commodity, Forex, or stock markets and closing the position at night. This has a number of advantages for the small or large investor, not the least of which is that the peace of mind that comes with knowing when the work day ends, the trading concerns do too.
One of the main elements that make day trading such a winner is the fact that the trader can leverage small amounts of money for potentially huge gains. These gains can be maximized during the daytime hours so that enough money can be made to show handsome profits. And the trader doesn’t have to worry about waking up to find that a position has fallen or changed erratically during the night. The account can be set up with only 2000 dollars and this can be leveraged in these volatile markets to show big increases.
Most people don’t make much money in the markets simply because they don’t have enough knowledge about how they work. So many factors go into the volatility of a market that it is easy to think you understand it better than you do. Day trading training is often necessary before really beginning to risk hard earned capital and do so successfully. In addition there are programs that can be used to maximize the chances of success.
The trouble with many day trading training and Forex trading training systems or programs is that they do not have true objectivity. They can be considered “subjective” systems. That is, they focus too much on using subjective experience as a guide for the future and not seeing the market as it is. The real markets are in a continual process of change, and that is what confounds much of the subjective and incomplete day trading advice that you will find here and there.
More complete or objective day trading systems, such as the Tsunami Trading system, take changes in market volatility genuinely into account. They allow the trader to become more consistent by becoming better able to spot and handle critical changes that render their subjective habits obsolete. The trader with these complete trading systems is able to use virtually all changes in the market to advantage, and do so in the course of a day so that they can close their position and maintain an advantage with true confidence.
Many people wonder why trading is so difficult since all the markets do in an obvious sense is go up or down. The thing to keep in mind here is that the fairly simple outward behavior of markets has so many variables of a complex nature that determine them, that they are anything but obvious. The casual trader who sees success in a few trades begins to gain an exaggerated sense of confidence. And that, in the long run, is deadly. They attempt to apply strategies that worked on one occasion to another situation, or put into practice a few intraday trading tips they have picked up somewhere, only to find that their methods don’t work and they lose money. This is to be expected when one realizes that the true complexity of the factors that determine market volatility are hard to master until you have a system or training method that really takes into account all the factors involved.
In conclusion, don’t be subjective, overconfident, and uninformed like most novice day traders. Find yourself a good day trading system, such as the Tsunami Trading system, that can really turn your incomplete knowledge into a complete and usable understanding. Learn the art and craft of day trading, and get to a level of sophistication that can really be considered objective mastery. You and your bank account will be glad you did.
Tsunami-Trade: Day trading advice for the active daytrader. Day trading training with our proprietary day trading software.
Article source: http://www.articleszoom.com/day-trading/
Day trading is a great way to get into the markets while reducing some of the risk. What is day trading? It is essentially trading only during daytime hours in the commodity, Forex, or stock markets and closing the position at night. This has a number of advantages for the small or large investor, not the least of which is that the peace of mind that comes with knowing when the work day ends, the trading concerns do too.
One of the main elements that make day trading such a winner is the fact that the trader can leverage small amounts of money for potentially huge gains. These gains can be maximized during the daytime hours so that enough money can be made to show handsome profits. And the trader doesn’t have to worry about waking up to find that a position has fallen or changed erratically during the night. The account can be set up with only 2000 dollars and this can be leveraged in these volatile markets to show big increases.
Most people don’t make much money in the markets simply because they don’t have enough knowledge about how they work. So many factors go into the volatility of a market that it is easy to think you understand it better than you do. Day trading training is often necessary before really beginning to risk hard earned capital and do so successfully. In addition there are programs that can be used to maximize the chances of success.
The trouble with many day trading training and Forex trading training systems or programs is that they do not have true objectivity. They can be considered “subjective” systems. That is, they focus too much on using subjective experience as a guide for the future and not seeing the market as it is. The real markets are in a continual process of change, and that is what confounds much of the subjective and incomplete day trading advice that you will find here and there.
More complete or objective day trading systems, such as the Tsunami Trading system, take changes in market volatility genuinely into account. They allow the trader to become more consistent by becoming better able to spot and handle critical changes that render their subjective habits obsolete. The trader with these complete trading systems is able to use virtually all changes in the market to advantage, and do so in the course of a day so that they can close their position and maintain an advantage with true confidence.
Many people wonder why trading is so difficult since all the markets do in an obvious sense is go up or down. The thing to keep in mind here is that the fairly simple outward behavior of markets has so many variables of a complex nature that determine them, that they are anything but obvious. The casual trader who sees success in a few trades begins to gain an exaggerated sense of confidence. And that, in the long run, is deadly. They attempt to apply strategies that worked on one occasion to another situation, or put into practice a few intraday trading tips they have picked up somewhere, only to find that their methods don’t work and they lose money. This is to be expected when one realizes that the true complexity of the factors that determine market volatility are hard to master until you have a system or training method that really takes into account all the factors involved.
In conclusion, don’t be subjective, overconfident, and uninformed like most novice day traders. Find yourself a good day trading system, such as the Tsunami Trading system, that can really turn your incomplete knowledge into a complete and usable understanding. Learn the art and craft of day trading, and get to a level of sophistication that can really be considered objective mastery. You and your bank account will be glad you did.
Tsunami-Trade: Day trading advice for the active daytrader. Day trading training with our proprietary day trading software.
Article source: http://www.articleszoom.com/day-trading/
Account Forex Trading - How To Set Up Your First Forex Trading Account by Forex Expert
Chances are high for you to hear about this current moneymaking sensation - forex trading. Many people from all parts of the country are making millions every year via this platform. Now you have to understand something - the niche is very delicate, and, unless you have some working knowledge about the forex market, you will lose considerable figures within minutes. In the rest of the passages, I will outline some basic factors that are to be considered before venturing out into the market to compete with the experts.
I am going to mention with once again; you need to have a thorough understanding about the forex policies before starting a forex trading account. Trading in a forex market is not an easy chore; you will have to master the concepts beforehand itself. If you are seriously interested on venturing into the market you must invest lots of time in sourcing adequate information regarding the functioning of these markets. Plenty of authors have written handy e-books that will provide you with an insight on how to proceed in this market. Some of these e-books might be free for the offering, but you will have to purchase the rest for a price.
If you are not interested in wasting time searching for e-books, you can start learning forex trading concepts from some online portals. These portals are designed to emulate real time forex market conditions. These websites will include interactive snippets that will explain some of the complexities associated with the market in simple terms. You will be trading with imaginary currency, and hence you can work out any number of strategies in that portal. -as you delve deeper into the niche, you will realize that forex trading is all about applying the right strategy at the right point of time. Account Forex Trading
Mastering these strategies is considered as no easy feat. Learning the basics with a demo or practice forex trading account is the first step. Once you feel confident enough, you will have to start a real trading account so that you can start trading with currencies. For creating a trading account, you will have to seek the aid of authorized agencies. Three types of trading accounts can be opened. The novice learners, who do not wish to invest ample crates of cash into the market, will have to be satisfied with a mini forex trading account.
Here is another scary aspect associated with forex trading markets. Only five percentages of the traders are able to assimilate richness via this platform. The rest of the 95 percentage will suffer huge losses. Do you realize the seriousness of the situation? This isn't going to be a walk in the park. Unless you have the right strategies, you are going to be dismayed at the market conditions. The lucrative nature of the market attracts many into the niche. Do not follow the group and blindly invest on a new trading account. If you have the resources, but do not have the time to trade, you can always opt for managed forex trading accounts. Account Forex Trading
http://www.goarticles.com/cgi-bin/showa.cgi?C=3178871
I am going to mention with once again; you need to have a thorough understanding about the forex policies before starting a forex trading account. Trading in a forex market is not an easy chore; you will have to master the concepts beforehand itself. If you are seriously interested on venturing into the market you must invest lots of time in sourcing adequate information regarding the functioning of these markets. Plenty of authors have written handy e-books that will provide you with an insight on how to proceed in this market. Some of these e-books might be free for the offering, but you will have to purchase the rest for a price.
If you are not interested in wasting time searching for e-books, you can start learning forex trading concepts from some online portals. These portals are designed to emulate real time forex market conditions. These websites will include interactive snippets that will explain some of the complexities associated with the market in simple terms. You will be trading with imaginary currency, and hence you can work out any number of strategies in that portal. -as you delve deeper into the niche, you will realize that forex trading is all about applying the right strategy at the right point of time. Account Forex Trading
Mastering these strategies is considered as no easy feat. Learning the basics with a demo or practice forex trading account is the first step. Once you feel confident enough, you will have to start a real trading account so that you can start trading with currencies. For creating a trading account, you will have to seek the aid of authorized agencies. Three types of trading accounts can be opened. The novice learners, who do not wish to invest ample crates of cash into the market, will have to be satisfied with a mini forex trading account.
Here is another scary aspect associated with forex trading markets. Only five percentages of the traders are able to assimilate richness via this platform. The rest of the 95 percentage will suffer huge losses. Do you realize the seriousness of the situation? This isn't going to be a walk in the park. Unless you have the right strategies, you are going to be dismayed at the market conditions. The lucrative nature of the market attracts many into the niche. Do not follow the group and blindly invest on a new trading account. If you have the resources, but do not have the time to trade, you can always opt for managed forex trading accounts. Account Forex Trading
http://www.goarticles.com/cgi-bin/showa.cgi?C=3178871
Monday, August 2, 2010
Forex Trading Tips: How Forex Works
Here are some forex trading tips for beginners in the game. Forex trading is essentially a mind game, you play on a global stage. It is basically exchanging currencies and exploiting the currency volatility for profit.
Foreign exchange trading or forex trading, is an interesting and profitable pursuit. If you strip the whole thing down to the bare essentials, it is just exchange of a pair of currencies, one at a time. The maxim that applies to all profitable transactions applies here too, 'buy cheap, sell dear'. Only the difference is that you do not buy or sell any goods in this trade. It's a barter system of currency, in which you exchange currency of a type for another with the intention of profiting from the transaction sooner or later. You buy a currency that you think will appreciate in value and you sell it when it does. Here 'buying a currency', means exchanging it for another type.
To master foreign exchange trade, like any other subjects, you must find the best forex training program to master its fundamentals. The fundamental thing that you need to understand is how the exchange rates are affected by global market developments. When you focus on two currencies, that you are exchanging, you need to monitor the import-export trends between those two countries and the liquidity in both the markets. You also need to monitor the global effects on the two currencies. You have two options: either you can operate independently by opening your own trading account or you could operate through a broker. If you are a beginner in this field, here are some tips from acclaimed masters of foreign trade, put together for you :
Beware of Cheats!
Just like every financial field of endeavor, forex trading has its share of cheats and con artists who are out there to dupe honest people. Always be suspicious of forex brokerage companies that promise gargantuan profits with zero risk. They are surely con men, as every experienced forex trader will tell you, big profits always come, after big risks are taken. Also be wary of brokerage companies that promise investing your money in the interbank market as its not very transparent in its dealings. Make a thorough background check and verify the registration of the trading company before you set up your account with them.
Stay Connected with The Old Boys!
If you want to be master of a trade, you have to learn from the masters. Get to know and stay in touch with experienced traders from the field. They have been there and done that. Learn from them as much as you can.
Do Your Homework Well!
Stay connected with the latest happenings in the forex market but don't get lost in data. Analyze and understand the cause and effect cycle in the forex market. Get an in depth knowledge of how the currency market is regulated and what factors affect its functioning. Understand why the numbers rise and fall and what causes exchange rate fluctuations. If you get your fundamental theory of forex trading right and stick to the basics, things will more often turn out right.
Know Both Sides
When you are trading between two currencies, study them well. That is, follow developments on both sides and not just the high value side.
Too Many Cooks. . .You Know What!
If you are giving your trading account over to a broker and he is going to operate for you, then let him! Let the man do his job, you may inquire, but do not meddle too much. If you are confident of trading alone, then make your own decisions after giving your ear to all.
Think Long Term
It's always the best policy to think long term when you are trading and its also the mark of a good trader. Do not go for short term profits when your judgment tells you that things in long term will be better. Stick to your decisions and go for the kill, when you see a winner, and do not hesitate to sell out of a trade when you realize your mistake, out of stubbornness or hardheadedness.
It's All About Timing!
Remember that its all about timing, when it comes to trading. New developments in the market always start after the morning news is out, as credit policy changes by central banks and world business news influences the choices of investors world over. It is advisable that you avoid trading off peak hours. You do not need to trade 24x5. Fix your amount of working hours and get used to handling stress.
Keep it Simple and Be a Man!
Keep your procedure simple and remember, you cannot control all the variables. So things are bound to go wrong in spite of all your preparation as the market is very fickle and driven by speculation. So be ready to brave the rough weather and steady your ship in the storm. Forex trading or any kind of business is not for the weak of heart!
Hope these tips from the masters help you out in your forex trading career, and you too one day become one! All the best!
By Gray Pilgrim
http://www.buzzle.com/articles/forex-trading-tips-how-forex-works.html
Foreign exchange trading or forex trading, is an interesting and profitable pursuit. If you strip the whole thing down to the bare essentials, it is just exchange of a pair of currencies, one at a time. The maxim that applies to all profitable transactions applies here too, 'buy cheap, sell dear'. Only the difference is that you do not buy or sell any goods in this trade. It's a barter system of currency, in which you exchange currency of a type for another with the intention of profiting from the transaction sooner or later. You buy a currency that you think will appreciate in value and you sell it when it does. Here 'buying a currency', means exchanging it for another type.
To master foreign exchange trade, like any other subjects, you must find the best forex training program to master its fundamentals. The fundamental thing that you need to understand is how the exchange rates are affected by global market developments. When you focus on two currencies, that you are exchanging, you need to monitor the import-export trends between those two countries and the liquidity in both the markets. You also need to monitor the global effects on the two currencies. You have two options: either you can operate independently by opening your own trading account or you could operate through a broker. If you are a beginner in this field, here are some tips from acclaimed masters of foreign trade, put together for you :
Beware of Cheats!
Just like every financial field of endeavor, forex trading has its share of cheats and con artists who are out there to dupe honest people. Always be suspicious of forex brokerage companies that promise gargantuan profits with zero risk. They are surely con men, as every experienced forex trader will tell you, big profits always come, after big risks are taken. Also be wary of brokerage companies that promise investing your money in the interbank market as its not very transparent in its dealings. Make a thorough background check and verify the registration of the trading company before you set up your account with them.
Stay Connected with The Old Boys!
If you want to be master of a trade, you have to learn from the masters. Get to know and stay in touch with experienced traders from the field. They have been there and done that. Learn from them as much as you can.
Do Your Homework Well!
Stay connected with the latest happenings in the forex market but don't get lost in data. Analyze and understand the cause and effect cycle in the forex market. Get an in depth knowledge of how the currency market is regulated and what factors affect its functioning. Understand why the numbers rise and fall and what causes exchange rate fluctuations. If you get your fundamental theory of forex trading right and stick to the basics, things will more often turn out right.
Know Both Sides
When you are trading between two currencies, study them well. That is, follow developments on both sides and not just the high value side.
Too Many Cooks. . .You Know What!
If you are giving your trading account over to a broker and he is going to operate for you, then let him! Let the man do his job, you may inquire, but do not meddle too much. If you are confident of trading alone, then make your own decisions after giving your ear to all.
Think Long Term
It's always the best policy to think long term when you are trading and its also the mark of a good trader. Do not go for short term profits when your judgment tells you that things in long term will be better. Stick to your decisions and go for the kill, when you see a winner, and do not hesitate to sell out of a trade when you realize your mistake, out of stubbornness or hardheadedness.
It's All About Timing!
Remember that its all about timing, when it comes to trading. New developments in the market always start after the morning news is out, as credit policy changes by central banks and world business news influences the choices of investors world over. It is advisable that you avoid trading off peak hours. You do not need to trade 24x5. Fix your amount of working hours and get used to handling stress.
Keep it Simple and Be a Man!
Keep your procedure simple and remember, you cannot control all the variables. So things are bound to go wrong in spite of all your preparation as the market is very fickle and driven by speculation. So be ready to brave the rough weather and steady your ship in the storm. Forex trading or any kind of business is not for the weak of heart!
Hope these tips from the masters help you out in your forex trading career, and you too one day become one! All the best!
By Gray Pilgrim
http://www.buzzle.com/articles/forex-trading-tips-how-forex-works.html
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