Because currencies are traded in pairs and exchanged one against the other when traded, the rate at which they are exchanged is called the exchange rate. The majority of the currencies are traded against the US dollar (USD). The four next-most traded currencies are the Euro (EUR), the Japanese yen (JPY), the British pound sterling (GBP) and the Swiss franc (CHF). These five currencies make up the majority of the market and are called the major currencies or "the Majors". Some sources also include the Australian dollar (AUD) within the group of major currencies.
The first currency in the exchange pair is referred to as the base currency and the second currency as the counter term or quote currency. The counter term or quote currency is thus the numerator in the ratio, and the base currency is the denominator. The value of the base currency (denominator) is always 1. Therefore, the exchange rate tells a buyer how much of the counter term or quote currency must be paid to obtain one unit of the base currency. The exchange rate also tells a seller how much is received in the counter term or quote currency when selling one unit of the base currency. For example, an exchange rate for EUR/USD of 1.2083 specifies to the buyer of euros that 1.2083 USD must be paid to obtain 1 euro.
At any given point, time and place, if an investor buys any currency and immediately sells it - and no change in the exchange rate has occurred - the investor will lose money. The reason for this is that the bid price, which represents how much will be received in the counter or quote currency when selling one unit of the base currency, is always lower than the ask price, which represents how much must be paid in the counter or quote currency when buying one unit of the base currency. For instance, the EUR/USD bid/ask currency rates at your bank may be 1.2015/1.3015, representing a spread of 1000 pips (also called points, one pip = 0.0001), which is very high in comparison to the bid/ask currency rates that online Forex investors commonly encounter, such as 1.2015/1.2020, with a spread of 5 pips. In general, smaller spreads are better for Forex investors since even they require a smaller movement in exchange rates in order to profit from a trade.
Margin
Banks and/or online trading providers need collateral to ensure that the investor can pay in case of a loss. The collateral is called the margin and is also known as minimum security in Forex markets. In practice, it is a deposit to the trader's account that is intended to cover any currency trading losses in the future.
Margin enables private investors to trade in markets that have high minimum units of trading by allowing traders to hold a much larger position than their account value. Margin trading also enhances the rate of profit, but can also enhance the rate of loss if the investor makes the wrong decision.
Leveraged financing
Leveraged financing, i.e., the use of credit, such as a trade purchased on a margin, is very common in Forex. The loan/leveraged in the margined account is collateralized by your initial deposit. This may result in being able to control USD 100,000 for as little as USD 1,000.
There are three ways private investors can trade in Forex directly or indirectly:
The spot market
Forwards and futures
Options
A spot transaction
A spot transaction is a straightforward exchange of one currency for another. The spot rate is the current market price, also called the benchmark price. Spot transactions do not require immediate settlement, or payment "on the spot." The settlement date, or "value date," is the second business day after the "deal date" (or "trade date") on which the transaction is agreed to by the two traders. The two-day period provides time to confirm the agreement and arrange the clearing and necessary debiting and crediting of bank accounts in various international locations.
Forwards and Futures
Forwards make up about 46% of currency trading. A forward transaction is an agreement between two parties whereby one party buys a currency at a particular price by a certain date that is greater than two business days (a spot transaction).
A future contract is a forward contract with fixed currency amounts and maturity dates. They are traded on future exchanges and not through the interbank foreign exchange market.
Options
A currency option is similar to a futures contract in that it involves a fixed currency transaction at some future date in time. However the buyer of the option is only purchasing the right but not the obligation to purchase a fixed amount of currency at a fixed price by a certain date in future. The price is known as the premium and is lost if the buyer does not exercise the option.
Risks
Although Forex trading can lead to very profitable results, there are risks involved: exchange rate risks, interest rate risks, credit risks, and country risks. Approximately 80% of all currency transactions last a period of seven days or less, while more than 40% last fewer than two days. Given the extremely short lifespan of the typical trade, technical indicators heavily influence entry, exit and order placement decisions
Nov 12, 2009
Forex risk management strategies
The Forex market behaves differently from other markets! The speed, volatility, and enormous size of the Forex market are unlike anything else in the financial world. Beware: the Forex market is uncontrollable - no single event, individual, or factor rules it. Enjoy trading in the perfect market! Just like any other speculative business, increased risk entails chances for a higher profit/loss.
Currency markets are highly speculative and volatile in nature. Any currency can become very expensive or very cheap in relation to any or all other currencies in a matter of days, hours, or sometimes, in minutes. This unpredictable nature of the currencies is what attracts an investor to trade and invest in the currency market.
But ask yourself, "How much am I ready to lose?" When you terminated, closed or exited your position, did you understand the risks and taken steps to avoid them? Let's look at some foreign exchange risk management issues that may come up in your day-to-day foreign exchange transactions.
Unexpected corrections in currency exchange rates
Wild variations in foreign exchange rates
Volatile markets offering profit opportunities
Lost payments
Delayed confirmation of payments and receivables
Divergence between bank drafts received and the contract price
These are areas that every trader should cover both BEFORE and DURING a trade.
Exit the Forex market at profit targets
Take profit take orders, allow Forex traders to exit the Forex market at pre-determined profit targets. If you are short (sold) a currency pair, the system will only allow you to place a limit order below the current market price because this is the profit zone. Similarly, if you are long (bought) the currency pair, the system will only allow you to place a take profit order above the current market price. Take profit orders help create a disciplined trading methodology and make it possible for traders to walk away from the computer without continuously monitoring the market.
Control risk by capping losses
Stop/loss orders allow traders to set an exit point for a losing trade. If you are short a currency pair, the stop/loss order should be placed above the current market price. If you are long the currency pair, the stop/loss order should be placed below the current market price. Stop/loss orders help traders control risk by capping losses. Stop/loss orders are counter-intuitive because you do not want them to be hit; however, you will be happy that you placed them! When logic dictates, you can control greed.
Where should I place my stop and take profit orders?
As a general rule of thumb, traders should set stop/loss orders closer to the opening price than take profit orders. If this rule is followed, a trader needs to be right less than 50% of the time to be profitable. For example, a trader that uses a 30 pip stop/loss and 100-pip take profit orders, needs only to be right 1/3 of the time to make a profit. Where the trader places the stop and take profit will depend on how risk-adverse he is. Stop/loss orders should not be so tight that normal market volatility triggers the order. Similarly, take profit orders should reflect a realistic expectation of gains based on the market's trading activity and the length of time one wants to hold the position. In initially setting up and establishing the trade, the trader should look to change the stop loss and set it at a rate in the 'middle ground' where they are not overexposed to the trade, and at the same time, not too close to the market.
Trading foreign currencies is a demanding and potentially profitable opportunity for trained and experienced investors. However, before deciding to participate in the Forex market, you should soberly reflect on the desired result of your investment and your level of experience. Warning! Do not invest money you cannot afford to lose.
So, there is significant risk in any foreign exchange deal. Any transaction involving currencies involves risks including, but not limited to, the potential for changing political and/or economic conditions, that may substantially affect the price or liquidity of a currency.
Moreover, the leveraged nature of FX trading means that any market movement will have an equally proportional effect on your deposited funds. This may work against you as well as for you. The possibility exists that you could sustain a total loss of your initial margin funds and be required to deposit additional funds to maintain your position. If you fail to meet any margin call within the time prescribed, your position will be liquidated and you will be responsible for any resulting losses. 'Stop-loss' or 'limit' order strategies may lower an investor's exposure to risk.
Easy-Forex foreign exchange technology links around-the-clock to the world's foreign currency exchange trading floors to get the lowest foreign currency rates and to take every opportunity to make or settle a transaction.
Avoiding/lowering risk when trading Forex:
Trade like a technical analyst. Understanding the fundamentals behind an investment also requires understanding the technical analysis method. When your fundamental and technical signals point to the same direction, you have a good chance to have a successful trade, especially with good money management skills. Use simple support and resistance technical analysis, Fibonacci Retracement and reversal days. Be disciplined. Create a position and understand your reasons for having that position, and establish stop loss and profit taking levels. Discipline includes hitting your stops and not following the temptation to stay with a losing position that has gone through your stop/loss level. When you buy, buy high. When you sell, sell higher. Similarly, when you sell, sell low. When you buy, buy lower. Rule of thumb: In a bull market, be long or neutral - in a bear market, be short or neutral. If you forget this rule and trade against the trend, you will usually cause yourself to suffer psychological worries, and frequently, losses. And never add to a losing position. On Easy-Forex the trader can change their trade orders as many times as they wish free of charge, either as a stop loss or as a take profit. The trader can also close the trade manually without a stop loss or profit take order being hit. Many successful traders set their stop loss price beyond the rate at which they made the trade so that the worst that can happen is that they get stopped out and make a profit.
Currency markets are highly speculative and volatile in nature. Any currency can become very expensive or very cheap in relation to any or all other currencies in a matter of days, hours, or sometimes, in minutes. This unpredictable nature of the currencies is what attracts an investor to trade and invest in the currency market.
But ask yourself, "How much am I ready to lose?" When you terminated, closed or exited your position, did you understand the risks and taken steps to avoid them? Let's look at some foreign exchange risk management issues that may come up in your day-to-day foreign exchange transactions.
Unexpected corrections in currency exchange rates
Wild variations in foreign exchange rates
Volatile markets offering profit opportunities
Lost payments
Delayed confirmation of payments and receivables
Divergence between bank drafts received and the contract price
These are areas that every trader should cover both BEFORE and DURING a trade.
Exit the Forex market at profit targets
Take profit take orders, allow Forex traders to exit the Forex market at pre-determined profit targets. If you are short (sold) a currency pair, the system will only allow you to place a limit order below the current market price because this is the profit zone. Similarly, if you are long (bought) the currency pair, the system will only allow you to place a take profit order above the current market price. Take profit orders help create a disciplined trading methodology and make it possible for traders to walk away from the computer without continuously monitoring the market.
Control risk by capping losses
Stop/loss orders allow traders to set an exit point for a losing trade. If you are short a currency pair, the stop/loss order should be placed above the current market price. If you are long the currency pair, the stop/loss order should be placed below the current market price. Stop/loss orders help traders control risk by capping losses. Stop/loss orders are counter-intuitive because you do not want them to be hit; however, you will be happy that you placed them! When logic dictates, you can control greed.
Where should I place my stop and take profit orders?
As a general rule of thumb, traders should set stop/loss orders closer to the opening price than take profit orders. If this rule is followed, a trader needs to be right less than 50% of the time to be profitable. For example, a trader that uses a 30 pip stop/loss and 100-pip take profit orders, needs only to be right 1/3 of the time to make a profit. Where the trader places the stop and take profit will depend on how risk-adverse he is. Stop/loss orders should not be so tight that normal market volatility triggers the order. Similarly, take profit orders should reflect a realistic expectation of gains based on the market's trading activity and the length of time one wants to hold the position. In initially setting up and establishing the trade, the trader should look to change the stop loss and set it at a rate in the 'middle ground' where they are not overexposed to the trade, and at the same time, not too close to the market.
Trading foreign currencies is a demanding and potentially profitable opportunity for trained and experienced investors. However, before deciding to participate in the Forex market, you should soberly reflect on the desired result of your investment and your level of experience. Warning! Do not invest money you cannot afford to lose.
So, there is significant risk in any foreign exchange deal. Any transaction involving currencies involves risks including, but not limited to, the potential for changing political and/or economic conditions, that may substantially affect the price or liquidity of a currency.
Moreover, the leveraged nature of FX trading means that any market movement will have an equally proportional effect on your deposited funds. This may work against you as well as for you. The possibility exists that you could sustain a total loss of your initial margin funds and be required to deposit additional funds to maintain your position. If you fail to meet any margin call within the time prescribed, your position will be liquidated and you will be responsible for any resulting losses. 'Stop-loss' or 'limit' order strategies may lower an investor's exposure to risk.
Easy-Forex foreign exchange technology links around-the-clock to the world's foreign currency exchange trading floors to get the lowest foreign currency rates and to take every opportunity to make or settle a transaction.
Avoiding/lowering risk when trading Forex:
Trade like a technical analyst. Understanding the fundamentals behind an investment also requires understanding the technical analysis method. When your fundamental and technical signals point to the same direction, you have a good chance to have a successful trade, especially with good money management skills. Use simple support and resistance technical analysis, Fibonacci Retracement and reversal days. Be disciplined. Create a position and understand your reasons for having that position, and establish stop loss and profit taking levels. Discipline includes hitting your stops and not following the temptation to stay with a losing position that has gone through your stop/loss level. When you buy, buy high. When you sell, sell higher. Similarly, when you sell, sell low. When you buy, buy lower. Rule of thumb: In a bull market, be long or neutral - in a bear market, be short or neutral. If you forget this rule and trade against the trend, you will usually cause yourself to suffer psychological worries, and frequently, losses. And never add to a losing position. On Easy-Forex the trader can change their trade orders as many times as they wish free of charge, either as a stop loss or as a take profit. The trader can also close the trade manually without a stop loss or profit take order being hit. Many successful traders set their stop loss price beyond the rate at which they made the trade so that the worst that can happen is that they get stopped out and make a profit.
Forex candlestick chart patterns
This article provides insight into Candlestick patterns that can be extracted from Foreign exchange charts. A candlestick chart is a style of bar-chart used primarily to demonstrate price movements over a certain time period.
Doji
A name for candlesticks that provide information on their own and feature in a number of important patterns. Dojis form when the body of the candle is minimal as market's open and close are virtually equal.
Hammer
A price pattern in candlestick charting that occurs when the market trades significantly lower than its opening, but rallies later in the day to close either above or close to its opening price. This pattern forms a hammer-shaped candlestick.
Inverted hammer
A price pattern in candlestick charting that occurs when a security trades significantly higher after its opening, but gives up most of all of its intraday gain to close well off of its high. Gravestone - The market gaps open above the previous day's close in an uptrend. It rallies to a new high, then loses strength and closes near its low: a bearish change of momentum. Confirmation of the trend reversal would be an opening below the body of the Shooting Star on the next trading day. If the open and the close are identical, the indicator is considered a Gravestone Doji. The Gravestone Doji has a higher reliability associated with it than a Shooting Star.
Shooting star
A candlestick indicating a reversal. The previous day's candle has a very large body. On the day the shooting star occurs, the price (generally) opens higher than the previous day's close, then jumps well above the opening price during the day, but closes lower than the opening price.
Three white soldiers
Three white soldiers is a bullish reversal pattern that forms with three consecutive long white candlesticks. After a decline, the three white soldiers pattern signals a change in sentiment and reversal of trend from bearish to bullish. Further bullish confirmation is not required, but there is sometimes a test of support established by the reversal.
Three black crows
A bearish reversal pattern consisting of three consecutive black bodies where each day opens higher than the previous day's low, and closes near, but below, the previous low.
This information was provided
Doji
A name for candlesticks that provide information on their own and feature in a number of important patterns. Dojis form when the body of the candle is minimal as market's open and close are virtually equal.
Hammer
A price pattern in candlestick charting that occurs when the market trades significantly lower than its opening, but rallies later in the day to close either above or close to its opening price. This pattern forms a hammer-shaped candlestick.
Inverted hammer
A price pattern in candlestick charting that occurs when a security trades significantly higher after its opening, but gives up most of all of its intraday gain to close well off of its high. Gravestone - The market gaps open above the previous day's close in an uptrend. It rallies to a new high, then loses strength and closes near its low: a bearish change of momentum. Confirmation of the trend reversal would be an opening below the body of the Shooting Star on the next trading day. If the open and the close are identical, the indicator is considered a Gravestone Doji. The Gravestone Doji has a higher reliability associated with it than a Shooting Star.
Shooting star
A candlestick indicating a reversal. The previous day's candle has a very large body. On the day the shooting star occurs, the price (generally) opens higher than the previous day's close, then jumps well above the opening price during the day, but closes lower than the opening price.
Three white soldiers
Three white soldiers is a bullish reversal pattern that forms with three consecutive long white candlesticks. After a decline, the three white soldiers pattern signals a change in sentiment and reversal of trend from bearish to bullish. Further bullish confirmation is not required, but there is sometimes a test of support established by the reversal.
Three black crows
A bearish reversal pattern consisting of three consecutive black bodies where each day opens higher than the previous day's low, and closes near, but below, the previous low.
This information was provided
The explosion of the Euro market
The rapid development of the Eurodollar market, where US dollars are deposited in banks outside the US, was a major mechanism for speeding up Forex trading. Likewise, Euro markets are those where assets are deposited outside the currency of origin.
The Eurodollar market first came into being in the 1950s when the Soviet Union's oil revenue -- all in US dollars -- was being deposited outside the US in fear of being frozen by US regulators. This resulted in a vast offshore pool of dollars outside the control of US authorities. The US government therefore imposed laws to restrict dollar lending to foreigners. Euro markets then became particularly attractive because they had fewer regulations and offered higher yields. From the late 1980s onwards, US companies began to borrow offshore, finding Euro markets an advantageous place for holding excess liquidity, providing short-term loans and financing imports and exports.
London was and remains the principal offshore market. In the 1980s, it became the key center in the Eurodollar market when British banks began lending dollars as an alternative to pounds in order to maintain their leading position in global finance. London's convenient geographical location (operating during Asian and American markets) is also instrumental in preserving its dominance in the Euro market.
The Eurodollar market first came into being in the 1950s when the Soviet Union's oil revenue -- all in US dollars -- was being deposited outside the US in fear of being frozen by US regulators. This resulted in a vast offshore pool of dollars outside the control of US authorities. The US government therefore imposed laws to restrict dollar lending to foreigners. Euro markets then became particularly attractive because they had fewer regulations and offered higher yields. From the late 1980s onwards, US companies began to borrow offshore, finding Euro markets an advantageous place for holding excess liquidity, providing short-term loans and financing imports and exports.
London was and remains the principal offshore market. In the 1980s, it became the key center in the Eurodollar market when British banks began lending dollars as an alternative to pounds in order to maintain their leading position in global finance. London's convenient geographical location (operating during Asian and American markets) is also instrumental in preserving its dominance in the Euro market.
The History of the Forex Market
Prior to Bretton Woods, the gold exchange standard -- paramount between 1876 and World War I -- ruled over the international economic system. Under the gold exchange, currencies experienced a new era of stability because they were supported by the price of gold.
However, the gold exchange standard had a weakness of boom-bust patterns. As a country's economy strengthened, its imports would increase until the country ran down its gold reserves, which were required to support its currency. As a result, the money supply would diminish, interest rates escalate and economic activity slowed to the point of recession. Ultimately, prices of commodities would hit bottom, appearing attractive to other nations, who would rush in and amid a buying frenzy inject the economy with gold until it increased its money supply, driving down interest rates and restoring wealth into the economy. Such boom-bust patterns abounded throughout the gold standard until World War I temporarily discontinued trade flows and the free movement of gold.
The Bretton Woods Agreement, established in 1944, fixed national currencies against the dollar, and set the dollar at a rate of USD 35 per ounce of gold. The agreement was aimed at establishing international monetary steadiness by preventing money from taking flight across countries, and to curb speculation in the international currency market. Participating countries agreed to try to maintain the value of their currency within a narrow margin against the dollar and an equivalent rate of gold as needed. As a result, the dollar gained a premium position as a reference currency, reflecting the shift in global economic dominance from Europe to the USA. Countries were prohibited from devaluing their currency to benefit their foreign trade and were only allowed to devalue their currency by less than 10%. The great volume of international Forex trade led to massive movements of capital, which were generated by post-war construction during the 1950s, and this movement destabilized the foreign exchange rates established in Bretton Woods.
The year 1971 heralded the abandonment of the Bretton Woods in that the US dollar would no longer be exchangeable into gold. By 1973, the forces of supply and demand controlled major industrialized nations' currencies, which now floated more freely across nations. Prices were floated daily, with volumes, speed and price volatility all increasing throughout the 1970s, and new financial instruments, market deregulation and trade liberalization emerged.
The onset of computers and technology in the 1980s accelerated the pace of extending the market continuum for cross-border capital movements through Asian, European and American time zones. Transactions in foreign exchange increased intensively from nearly billion a day in the 1980s, to more than $1.9 trillion a day two decades later.
However, the gold exchange standard had a weakness of boom-bust patterns. As a country's economy strengthened, its imports would increase until the country ran down its gold reserves, which were required to support its currency. As a result, the money supply would diminish, interest rates escalate and economic activity slowed to the point of recession. Ultimately, prices of commodities would hit bottom, appearing attractive to other nations, who would rush in and amid a buying frenzy inject the economy with gold until it increased its money supply, driving down interest rates and restoring wealth into the economy. Such boom-bust patterns abounded throughout the gold standard until World War I temporarily discontinued trade flows and the free movement of gold.
The Bretton Woods Agreement, established in 1944, fixed national currencies against the dollar, and set the dollar at a rate of USD 35 per ounce of gold. The agreement was aimed at establishing international monetary steadiness by preventing money from taking flight across countries, and to curb speculation in the international currency market. Participating countries agreed to try to maintain the value of their currency within a narrow margin against the dollar and an equivalent rate of gold as needed. As a result, the dollar gained a premium position as a reference currency, reflecting the shift in global economic dominance from Europe to the USA. Countries were prohibited from devaluing their currency to benefit their foreign trade and were only allowed to devalue their currency by less than 10%. The great volume of international Forex trade led to massive movements of capital, which were generated by post-war construction during the 1950s, and this movement destabilized the foreign exchange rates established in Bretton Woods.
The year 1971 heralded the abandonment of the Bretton Woods in that the US dollar would no longer be exchangeable into gold. By 1973, the forces of supply and demand controlled major industrialized nations' currencies, which now floated more freely across nations. Prices were floated daily, with volumes, speed and price volatility all increasing throughout the 1970s, and new financial instruments, market deregulation and trade liberalization emerged.
The onset of computers and technology in the 1980s accelerated the pace of extending the market continuum for cross-border capital movements through Asian, European and American time zones. Transactions in foreign exchange increased intensively from nearly billion a day in the 1980s, to more than $1.9 trillion a day two decades later.
An overview of the Forex market
An overview of the Forex market
The Forex market is a non-stop cash market where currencies of nations are traded, typically via brokers. Foreign currencies are constantly and simultaneously bought and sold across local and global markets and traders' investments increase or decrease in value based upon currency movements. Foreign exchange market conditions can change at any time in response to real-time events.
The main enticements of currency dealing to private investors and attractions for short-term Forex trading are:
24-hour trading, 5 days a week with non-stop access to global Forex dealers.
An enormous liquid market making it easy to trade most currencies.
Volatile markets offering profit opportunities.
Standard instruments for controlling risk exposure.
The ability to profit in rising or falling markets.
Leveraged trading with low margin requirements.
Many options for zero commission trading.
Forex trading
The investor's goal in Forex trading is to profit from foreign currency movements. Forex trading or currency trading is always done in currency pairs. For example, the exchange rate of EUR/USD on Aug 26th, 2003 was 1.0857. This number is also referred to as a "Forex rate" or just "rate" for short. If the investor had bought 1000 euros on that date, he would have paid 1085.70 U.S. dollars. One year later, the Forex rate was 1.2083, which means that the value of the euro (the numerator of the EUR/USD ratio) increased in relation to the U.S. dollar. The investor could now sell the 1000 euros in order to receive 1208.30 dollars. Therefore, the investor would have USD 122.60 more than what he had started one year earlier. However, to know if the investor made a good investment, one needs to compare this investment option to alternative investments. At the very minimum, the return on investment (ROI) should be compared to the return on a "risk-free" investment. One example of a risk-free investment is long-term U.S. government bonds since there is practically no chance for a default, i.e. the U.S. government going bankrupt or being unable or unwilling to pay its debt obligation.
When trading currencies, trade only when you expect the currency you are buying to increase in value relative to the currency you are selling. If the currency you are buying does increase in value, you must sell back the other currency in order to lock in a profit. An open trade (also called an open position) is a trade in which a trader has bought or sold a particular currency pair and has not yet sold or bought back the equivalent amount to close the position.
However, it is estimated that anywhere from 70%-90% of the FX market is speculative. In other words, the person or institution that bought or sold the currency has no plan to actually take delivery of the currency in the end; rather, they were solely speculating on the movement of that particular currency.
The Forex market is a non-stop cash market where currencies of nations are traded, typically via brokers. Foreign currencies are constantly and simultaneously bought and sold across local and global markets and traders' investments increase or decrease in value based upon currency movements. Foreign exchange market conditions can change at any time in response to real-time events.
The main enticements of currency dealing to private investors and attractions for short-term Forex trading are:
24-hour trading, 5 days a week with non-stop access to global Forex dealers.
An enormous liquid market making it easy to trade most currencies.
Volatile markets offering profit opportunities.
Standard instruments for controlling risk exposure.
The ability to profit in rising or falling markets.
Leveraged trading with low margin requirements.
Many options for zero commission trading.
Forex trading
The investor's goal in Forex trading is to profit from foreign currency movements. Forex trading or currency trading is always done in currency pairs. For example, the exchange rate of EUR/USD on Aug 26th, 2003 was 1.0857. This number is also referred to as a "Forex rate" or just "rate" for short. If the investor had bought 1000 euros on that date, he would have paid 1085.70 U.S. dollars. One year later, the Forex rate was 1.2083, which means that the value of the euro (the numerator of the EUR/USD ratio) increased in relation to the U.S. dollar. The investor could now sell the 1000 euros in order to receive 1208.30 dollars. Therefore, the investor would have USD 122.60 more than what he had started one year earlier. However, to know if the investor made a good investment, one needs to compare this investment option to alternative investments. At the very minimum, the return on investment (ROI) should be compared to the return on a "risk-free" investment. One example of a risk-free investment is long-term U.S. government bonds since there is practically no chance for a default, i.e. the U.S. government going bankrupt or being unable or unwilling to pay its debt obligation.
When trading currencies, trade only when you expect the currency you are buying to increase in value relative to the currency you are selling. If the currency you are buying does increase in value, you must sell back the other currency in order to lock in a profit. An open trade (also called an open position) is a trade in which a trader has bought or sold a particular currency pair and has not yet sold or bought back the equivalent amount to close the position.
However, it is estimated that anywhere from 70%-90% of the FX market is speculative. In other words, the person or institution that bought or sold the currency has no plan to actually take delivery of the currency in the end; rather, they were solely speculating on the movement of that particular currency.
Nov 10, 2009
Futures vs. Forex
Before you begin reading this let me first say that my intention is not to bash 4X market makers. My intention is to educate you on what you will be getting into if you decide to trade the spot 4X market with a 4X market maker vs. a regulated Futures broker. There is a HUGE difference in the two brokers and it could make or break you as a trader. Be careful in your decisions…
When I began learning how to trade the 4X in 2004 I thought that I had found an answer to all my problems. After all, I was hurt with at serious back injury and needed something I could do from home that wasn’t a scam. The 4X was an ideal solution to my problem…or at least that’s what the brokers wanted me to think…
To be honest, the Forex brokers have the best marketing of anything I have ever seen. You’ve seen it…
Massive liquidity compared to Futures
Higher leverage than Futures
Guaranteed no debit balance
Trade with any $$$ amount
Tighter spreads than Futures and Commission free trading
Earnings are not reported to the IRS
24 hour market
Free data feed, charts and easier technical analysis than Futures
The list goes on for the 4X marketing and I’m sure you’ve seen it all. I bought into it and began learning everything I could about the 4X without giving any other type of trading apparatus a 2nd glance. That was a mistake.
In this document I will spell out exactly what the Forex brokers, specifically the market makers, are not telling you and give the much sought after “TRUTH” about the 4X vs. Futures debate.
First off let me say that I still trade the 4X along side the futures market. The only currency pairs I trade in the spot 4X are the GBPJPY and the EURJPY. All other currencies are traded via the futures market. The main reasons for this is that the manipulation I have experienced with market makers and even some 4X brokers who claim to be ECNs is ridiculous. Since the GBPJPY and the EURJPY are extremely volatile I find that trading these 2 pairs alone in the spot 4X market is worth the risk. But every other currency pair I look at is usually based out of the Futures exchange.
Let’s start hitting these points one by one…
The 4X market has a massive amount of liquidity compared to the Futures market.
This one is true. I’ve seen it estimated that the 4X has a volume of anywhere form $1.5 to over $5 trillion daily. This is anywhere from 30-50 times larger than the US Stock Market. This is one advantage that the 4X does have over the Futures market and it is undeniable. But how much is this actually worth to you and me? Honesty, the largest amount I’ve ever traded per pip / tick is around $250. And that was a one time deal. Most traders that I know trade from 1 – 10 lots / contracts per trade. That’s not a large volume. If you have enough money in your account to trade more than that you either have enough money where you don’t need to trade for a living and you are a speculator or you are over leveraging yourself and are playing on dangerous ground.
The 4X market offers higher leverage than Futures
There is some truth to this but it works to the trades disadvantage rather than their advantage. I’ve seen 4X market makers offer up to 500:1 leverage. Let’s put this into perspective…
On US based currency pairs such as the USDJPY, at 100:1 leverage you can trade 1 standard contract for @ $1000 US in your account. Move this to 500:1 and you only need $200 to trade 1 standard contract. That seems great...to the novice trader who is looking for a quick way to make money.
In all honesty, this is how most market makers make money. Since they don’t push the orders through to the banks and take the other side of the trades themselves, they keep all the losses that the traders incur. So unless you are extremely sure of where price is going, using this amount of leverage is riskier than rolling dice at a casino. Right now, 1 contract of the USDJPY is worth @ $8.90. With a spread of 2 (which is what most brokers offer on the USDJPY) you have @ 20 pips of movement until your account is wiped out. At least at 100:1 you have at least 100 or more until this happens. I’ve seen no reputable broker that offers more than 200:1 in the spot 4X market.
Let’s contest this with Futures…
Futures brokers have a required amount per contract that fluctuates from daily rates to overnight rates which is roughly double the daily margin. In the above example, I spoke of the USDJPY. The futures equivalent is the JPY future, which is a near exact mirror image of the USDJPY.
The day trading margin is for trading during the US session, which is from @ 9:30 – 16:00 EST. The daily amount required to trade 1 JPY future contract on my futures broker, Open E Cry, is $1350 / contract. Also a contract is worth $10 and not $8.90. So you can see that the leverage is @ 80:1 and daily and drops to @ 40:1 for holding positions overnight. In the other documents in this package I suggest trading with Oanda and MB Trading. Oanda offers a max leverage of 50:1 and MB Trading offers 100:1. So you can see that for me, there is not a big difference in the 2 as far as leverage and margin are concerned.
And again, this is MAX leverage available. My rule is to use no more than @ 20:1 and usually 10:1 leverage on any trade. This is not really that big of a deal in terms of the 4X being better than the futures market.
Also, this is just on the currencies. Most futures brokers offer a $500 daily margin for the eminis. This is @ 200:1 leverage if calculated on a per contract basis and my CTS system works extremely well on the eminis, even when using high leverage. This is an advantage the futures market has over the 4x that I am taking advantage of…but I’ll get into that later.
Just an FYI for you…
Here is a link to my broker’s page on margins and offered contracts…
http://atcbrokers.com/futures_resources_margin.htm
Guaranteed no debit balance…
This is true for the most part. In trading futures you do have risk of loosing more in your account than you have. All of the 4X market makers I have seen guarantee that you cannot loose more than you have in your account.
Trade with any $$$ amount…
This is also true. In the 4X market you can trade mini and micro accounts. With Oanda you can trade pennies / pip if you like. In the futures market, the smallest account you can have is @ $2000. This allows you to trade with a $500 intraday margin. This is usually opened by people who want to try and trade the eminis
..
When I began learning how to trade the 4X in 2004 I thought that I had found an answer to all my problems. After all, I was hurt with at serious back injury and needed something I could do from home that wasn’t a scam. The 4X was an ideal solution to my problem…or at least that’s what the brokers wanted me to think…
To be honest, the Forex brokers have the best marketing of anything I have ever seen. You’ve seen it…
Massive liquidity compared to Futures
Higher leverage than Futures
Guaranteed no debit balance
Trade with any $$$ amount
Tighter spreads than Futures and Commission free trading
Earnings are not reported to the IRS
24 hour market
Free data feed, charts and easier technical analysis than Futures
The list goes on for the 4X marketing and I’m sure you’ve seen it all. I bought into it and began learning everything I could about the 4X without giving any other type of trading apparatus a 2nd glance. That was a mistake.
In this document I will spell out exactly what the Forex brokers, specifically the market makers, are not telling you and give the much sought after “TRUTH” about the 4X vs. Futures debate.
First off let me say that I still trade the 4X along side the futures market. The only currency pairs I trade in the spot 4X are the GBPJPY and the EURJPY. All other currencies are traded via the futures market. The main reasons for this is that the manipulation I have experienced with market makers and even some 4X brokers who claim to be ECNs is ridiculous. Since the GBPJPY and the EURJPY are extremely volatile I find that trading these 2 pairs alone in the spot 4X market is worth the risk. But every other currency pair I look at is usually based out of the Futures exchange.
Let’s start hitting these points one by one…
The 4X market has a massive amount of liquidity compared to the Futures market.
This one is true. I’ve seen it estimated that the 4X has a volume of anywhere form $1.5 to over $5 trillion daily. This is anywhere from 30-50 times larger than the US Stock Market. This is one advantage that the 4X does have over the Futures market and it is undeniable. But how much is this actually worth to you and me? Honesty, the largest amount I’ve ever traded per pip / tick is around $250. And that was a one time deal. Most traders that I know trade from 1 – 10 lots / contracts per trade. That’s not a large volume. If you have enough money in your account to trade more than that you either have enough money where you don’t need to trade for a living and you are a speculator or you are over leveraging yourself and are playing on dangerous ground.
The 4X market offers higher leverage than Futures
There is some truth to this but it works to the trades disadvantage rather than their advantage. I’ve seen 4X market makers offer up to 500:1 leverage. Let’s put this into perspective…
On US based currency pairs such as the USDJPY, at 100:1 leverage you can trade 1 standard contract for @ $1000 US in your account. Move this to 500:1 and you only need $200 to trade 1 standard contract. That seems great...to the novice trader who is looking for a quick way to make money.
In all honesty, this is how most market makers make money. Since they don’t push the orders through to the banks and take the other side of the trades themselves, they keep all the losses that the traders incur. So unless you are extremely sure of where price is going, using this amount of leverage is riskier than rolling dice at a casino. Right now, 1 contract of the USDJPY is worth @ $8.90. With a spread of 2 (which is what most brokers offer on the USDJPY) you have @ 20 pips of movement until your account is wiped out. At least at 100:1 you have at least 100 or more until this happens. I’ve seen no reputable broker that offers more than 200:1 in the spot 4X market.
Let’s contest this with Futures…
Futures brokers have a required amount per contract that fluctuates from daily rates to overnight rates which is roughly double the daily margin. In the above example, I spoke of the USDJPY. The futures equivalent is the JPY future, which is a near exact mirror image of the USDJPY.
The day trading margin is for trading during the US session, which is from @ 9:30 – 16:00 EST. The daily amount required to trade 1 JPY future contract on my futures broker, Open E Cry, is $1350 / contract. Also a contract is worth $10 and not $8.90. So you can see that the leverage is @ 80:1 and daily and drops to @ 40:1 for holding positions overnight. In the other documents in this package I suggest trading with Oanda and MB Trading. Oanda offers a max leverage of 50:1 and MB Trading offers 100:1. So you can see that for me, there is not a big difference in the 2 as far as leverage and margin are concerned.
And again, this is MAX leverage available. My rule is to use no more than @ 20:1 and usually 10:1 leverage on any trade. This is not really that big of a deal in terms of the 4X being better than the futures market.
Also, this is just on the currencies. Most futures brokers offer a $500 daily margin for the eminis. This is @ 200:1 leverage if calculated on a per contract basis and my CTS system works extremely well on the eminis, even when using high leverage. This is an advantage the futures market has over the 4x that I am taking advantage of…but I’ll get into that later.
Just an FYI for you…
Here is a link to my broker’s page on margins and offered contracts…
http://atcbrokers.com/futures_resources_margin.htm
Guaranteed no debit balance…
This is true for the most part. In trading futures you do have risk of loosing more in your account than you have. All of the 4X market makers I have seen guarantee that you cannot loose more than you have in your account.
Trade with any $$$ amount…
This is also true. In the 4X market you can trade mini and micro accounts. With Oanda you can trade pennies / pip if you like. In the futures market, the smallest account you can have is @ $2000. This allows you to trade with a $500 intraday margin. This is usually opened by people who want to try and trade the eminis
..
If you are planning to trade
If you are planning to trade in currency then you should know the different ways of reading the forex chart. Due to this reason you should try to gain the knowledge about reading the charts. If you know this then you would be able to earn huge profits in short duration of time. You would find that the experienced trader would always take the proper training before entering into the market of forex. If you are a learner then you should always start the trade with the nominal amount. You should no invest huge amount at a particular point of time.
If you want to learn the ways of reading the forex chart then you can purchase this software that would provide you required knowledge about the forex market. This software would aid you to keep the track of the money that you invest in this market and it would also keep the track of your time that you spend in this market. This software would help you to keep a track of the amount that you have invested in the firm. This software is handy. If you are interested to become a forex trading pro then you should try to take the maximum use of this software. If you use this software then you chart using this software then you would get the perfect knowledge about the forex trading that is offered by the forex market.
Currency trading market is considered to the largest market in the whole world and it one of the busiest markets. You would have problem of keeping the track of the forex market. You would be able to keep the track of the various trends that are prevailing in the market. if you are using the this software as a tool then you should study the changes that are taking place in the forex market. The knowledge that you have gain would aid you to trade in the market.
If you want to install this software then you need to explore yourself to net. You can use different trends and pattern of the forex chart. You can use the special tools that can be generated in short duration of time. You can use this tool to examine the software that you are using. The forex charts would help the trader to take the decisions about the market in which you are dealing. Forex charting software would provide relief to the people that want to become successful and want to get the deal that they want. There are different methods that can help you to the knowledge that you want to have. This would help you to make the future predictions about the forex market. This would help in charting the different types of software. There are various types of software in the market. You need to select the software as per your needs and requirements. You need to be careful in selecting the software for your deal.
If you want to learn the ways of reading the forex chart then you can purchase this software that would provide you required knowledge about the forex market. This software would aid you to keep the track of the money that you invest in this market and it would also keep the track of your time that you spend in this market. This software would help you to keep a track of the amount that you have invested in the firm. This software is handy. If you are interested to become a forex trading pro then you should try to take the maximum use of this software. If you use this software then you chart using this software then you would get the perfect knowledge about the forex trading that is offered by the forex market.
Currency trading market is considered to the largest market in the whole world and it one of the busiest markets. You would have problem of keeping the track of the forex market. You would be able to keep the track of the various trends that are prevailing in the market. if you are using the this software as a tool then you should study the changes that are taking place in the forex market. The knowledge that you have gain would aid you to trade in the market.
If you want to install this software then you need to explore yourself to net. You can use different trends and pattern of the forex chart. You can use the special tools that can be generated in short duration of time. You can use this tool to examine the software that you are using. The forex charts would help the trader to take the decisions about the market in which you are dealing. Forex charting software would provide relief to the people that want to become successful and want to get the deal that they want. There are different methods that can help you to the knowledge that you want to have. This would help you to make the future predictions about the forex market. This would help in charting the different types of software. There are various types of software in the market. You need to select the software as per your needs and requirements. You need to be careful in selecting the software for your deal.
Oct 18, 2009
More Forex: learn trading
Posted by Trader
Do you imagine that some paid or free forex trading course.
Could you imagine that we could trade like machines do forex trading online? It could be perfect. If you decided to invest in forex, the trade would be 100% effective. Sadly, it’s impossible. So far, at least. Yet, though it’s humans who trade, it’s impossible to trade avoiding emotions. But it doesn’t mean that only if you are a human, you can not trade.
It happens so that most trading technologies combine some percent of chance to win and some percent of stress. The technologies that are most effective are the most stressful at the same time. Therefore it’s inevitable that you choose the one that provides you with the greatest chance to win and that is at the same time not impossible to handle the pressure. Choosing the right trading technique is much about individual characteristics. It means that the very same technology will be perfect for some traders, but will mean losses for the others. And it’s not obviously that a person who fails using some technology is doing something wrong.
So, what if it happens that you find the splitting deals trade most effective, but one day it brings you losses? Mathematically it makes no sense. Yet, if you take into account that you are a human being and your trade is influenced not by technology only, it’s getting clearer. If the technology doesn’t “fit” you, it will only bring you losses. If you do not take human factor into account, your long term strategy has no future.
Yet’ let us not be too enthusiastic about the former example. It’s common that the splitting deal trade is any way much more effective than other approaches. Yet, we just wanted to state that there is almost nothing absolute in trade. You should see the whole picture and be informed. And let nobody persuade you just by stating that something is scientifically approved. Think about logics and reasons for something.
Do you imagine that some paid or free forex trading course.
Could you imagine that we could trade like machines do forex trading online? It could be perfect. If you decided to invest in forex, the trade would be 100% effective. Sadly, it’s impossible. So far, at least. Yet, though it’s humans who trade, it’s impossible to trade avoiding emotions. But it doesn’t mean that only if you are a human, you can not trade.
It happens so that most trading technologies combine some percent of chance to win and some percent of stress. The technologies that are most effective are the most stressful at the same time. Therefore it’s inevitable that you choose the one that provides you with the greatest chance to win and that is at the same time not impossible to handle the pressure. Choosing the right trading technique is much about individual characteristics. It means that the very same technology will be perfect for some traders, but will mean losses for the others. And it’s not obviously that a person who fails using some technology is doing something wrong.
So, what if it happens that you find the splitting deals trade most effective, but one day it brings you losses? Mathematically it makes no sense. Yet, if you take into account that you are a human being and your trade is influenced not by technology only, it’s getting clearer. If the technology doesn’t “fit” you, it will only bring you losses. If you do not take human factor into account, your long term strategy has no future.
Yet’ let us not be too enthusiastic about the former example. It’s common that the splitting deal trade is any way much more effective than other approaches. Yet, we just wanted to state that there is almost nothing absolute in trade. You should see the whole picture and be informed. And let nobody persuade you just by stating that something is scientifically approved. Think about logics and reasons for something.
Realistic expectations of forex trading
Posted by Trader
Somebody may disagree with this article as it can fully destroy their unrealistic hopes and wishes.I have written the most part of this article long ago but couldn’t finally finish it because I thought that most people could accept it as very harsh and unpleasant. I am going to show you my attitude to the trade reality and invest in forex and some other my considerations.
Let’s take acquaintance as an example. At the first meeting with an unknown person you try to tell absolutely everything about yourself, including your deep secrets and “ill habits”. If you do like this, probably this person does not want to see you anymore. I don’t insist on lying but we are all the same under our skins so it’s better not to “tell” all the truth immediately.
The point is that I prefer to show the opposite side of trade without exaggerating unattractive facts. On the other hand, I should avoid anything that bear even a faint resemblance to the complaint. The problem is that showing, so-called, "negative side", I cannot counterbalance it with a "positive side". If I really give my preference to the negative side, especially before someone can draw its own conclusions on potential positive aspects, I can “scare” him at once.
According to my own teaching practice, it is impossible to learn something student who has left. Therefore, I couldn’t finish this article for a long time, considering that it will destroy so many illusions and put off the desire to carry out great investigation for realizing whether trade their cup of tea or not. As for me, I began with dreams and illusions, however have quickly found out that it was self-deception, but I continued independent studying, forming own vision which I am going to represent you.
In this article I am going to present you some of my ideas concerning expectations and business plans in general, about day trading forex without scaring people from trade as a whole. If your expectations are mostly based on the reality, instead of imaginations your chances of success will be much more above. I hope that it will not misdirect many people who search for information about trade and forex trading online but will help them to create realistic plans.
So let’s start our discussion. I will use S&P-mini contracts as an example. However, everything sad by me may be referred to any market tool, trading style and time scale as concepts remain the same.
I meet many people who say to me that are going to leave the work and to earn on their lives by trading in the financial markets finishing free forex trading courses first. They declare that can make, say, 40.000$ - 75.000$ per a year and want to replace this income with intra-day trade in contracts ES. They want to do it by trading in two contracts
Somebody may disagree with this article as it can fully destroy their unrealistic hopes and wishes.I have written the most part of this article long ago but couldn’t finally finish it because I thought that most people could accept it as very harsh and unpleasant. I am going to show you my attitude to the trade reality and invest in forex and some other my considerations.
Let’s take acquaintance as an example. At the first meeting with an unknown person you try to tell absolutely everything about yourself, including your deep secrets and “ill habits”. If you do like this, probably this person does not want to see you anymore. I don’t insist on lying but we are all the same under our skins so it’s better not to “tell” all the truth immediately.
The point is that I prefer to show the opposite side of trade without exaggerating unattractive facts. On the other hand, I should avoid anything that bear even a faint resemblance to the complaint. The problem is that showing, so-called, "negative side", I cannot counterbalance it with a "positive side". If I really give my preference to the negative side, especially before someone can draw its own conclusions on potential positive aspects, I can “scare” him at once.
According to my own teaching practice, it is impossible to learn something student who has left. Therefore, I couldn’t finish this article for a long time, considering that it will destroy so many illusions and put off the desire to carry out great investigation for realizing whether trade their cup of tea or not. As for me, I began with dreams and illusions, however have quickly found out that it was self-deception, but I continued independent studying, forming own vision which I am going to represent you.
In this article I am going to present you some of my ideas concerning expectations and business plans in general, about day trading forex without scaring people from trade as a whole. If your expectations are mostly based on the reality, instead of imaginations your chances of success will be much more above. I hope that it will not misdirect many people who search for information about trade and forex trading online but will help them to create realistic plans.
So let’s start our discussion. I will use S&P-mini contracts as an example. However, everything sad by me may be referred to any market tool, trading style and time scale as concepts remain the same.
I meet many people who say to me that are going to leave the work and to earn on their lives by trading in the financial markets finishing free forex trading courses first. They declare that can make, say, 40.000$ - 75.000$ per a year and want to replace this income with intra-day trade in contracts ES. They want to do it by trading in two contracts
Realistic expectations of forex trading
Posted by Trader
Somebody may disagree with this article as it can fully destroy their unrealistic hopes and wishes.I have written the most part of this article long ago but couldn’t finally finish it because I thought that most people could accept it as very harsh and unpleasant. I am going to show you my attitude to the trade reality and invest in forex and some other my considerations.
Let’s take acquaintance as an example. At the first meeting with an unknown person you try to tell absolutely everything about yourself, including your deep secrets and “ill habits”. If you do like this, probably this person does not want to see you anymore. I don’t insist on lying but we are all the same under our skins so it’s better not to “tell” all the truth immediately.
The point is that I prefer to show the opposite side of trade without exaggerating unattractive facts. On the other hand, I should avoid anything that bear even a faint resemblance to the complaint. The problem is that showing, so-called, "negative side", I cannot counterbalance it with a "positive side". If I really give my preference to the negative side, especially before someone can draw its own conclusions on potential positive aspects, I can “scare” him at once.
According to my own teaching practice, it is impossible to learn something student who has left. Therefore, I couldn’t finish this article for a long time, considering that it will destroy so many illusions and put off the desire to carry out great investigation for realizing whether trade their cup of tea or not. As for me, I began with dreams and illusions, however have quickly found out that it was self-deception, but I continued independent studying, forming own vision which I am going to represent you.
In this article I am going to present you some of my ideas concerning expectations and business plans in general, about day trading forex without scaring people from trade as a whole. If your expectations are mostly based on the reality, instead of imaginations your chances of success will be much more above. I hope that it will not misdirect many people who search for information about trade and forex trading online but will help them to create realistic plans.
So let’s start our discussion. I will use S&P-mini contracts as an example. However, everything sad by me may be referred to any market tool, trading style and time scale as concepts remain the same.
I meet many people who say to me that are going to leave the work and to earn on their lives by trading in the financial markets finishing free forex trading courses first. They declare that can make, say, 40.000$ - 75.000$ per a year and want to replace this income with intra-day trade in contracts ES. They want to do it by trading in two contracts
Somebody may disagree with this article as it can fully destroy their unrealistic hopes and wishes.I have written the most part of this article long ago but couldn’t finally finish it because I thought that most people could accept it as very harsh and unpleasant. I am going to show you my attitude to the trade reality and invest in forex and some other my considerations.
Let’s take acquaintance as an example. At the first meeting with an unknown person you try to tell absolutely everything about yourself, including your deep secrets and “ill habits”. If you do like this, probably this person does not want to see you anymore. I don’t insist on lying but we are all the same under our skins so it’s better not to “tell” all the truth immediately.
The point is that I prefer to show the opposite side of trade without exaggerating unattractive facts. On the other hand, I should avoid anything that bear even a faint resemblance to the complaint. The problem is that showing, so-called, "negative side", I cannot counterbalance it with a "positive side". If I really give my preference to the negative side, especially before someone can draw its own conclusions on potential positive aspects, I can “scare” him at once.
According to my own teaching practice, it is impossible to learn something student who has left. Therefore, I couldn’t finish this article for a long time, considering that it will destroy so many illusions and put off the desire to carry out great investigation for realizing whether trade their cup of tea or not. As for me, I began with dreams and illusions, however have quickly found out that it was self-deception, but I continued independent studying, forming own vision which I am going to represent you.
In this article I am going to present you some of my ideas concerning expectations and business plans in general, about day trading forex without scaring people from trade as a whole. If your expectations are mostly based on the reality, instead of imaginations your chances of success will be much more above. I hope that it will not misdirect many people who search for information about trade and forex trading online but will help them to create realistic plans.
So let’s start our discussion. I will use S&P-mini contracts as an example. However, everything sad by me may be referred to any market tool, trading style and time scale as concepts remain the same.
I meet many people who say to me that are going to leave the work and to earn on their lives by trading in the financial markets finishing free forex trading courses first. They declare that can make, say, 40.000$ - 75.000$ per a year and want to replace this income with intra-day trade in contracts ES. They want to do it by trading in two contracts
Ways to Read Forex Chart
If you are planning to trade in currency then you should know the different ways of reading the forex chart. Due to this reason you should try to gain the knowledge about reading the charts. If you know this then you would be able to earn huge profits in short duration of time.
You would find that the experienced trader would always take the proper training before entering into the market of forex. If you are a learner then you should always start the trade with the nominal amount. You should no invest huge amount at a particular point of time.
If you want to learn the ways of reading the forex chart then you can purchase this software that would provide you required knowledge about the forex market. This software would aid you to keep the track of the money that you invest in this market and it would also keep the track of your time that you spend in this market. This software would help you to keep a track of the amount that you have invested in the firm. This software is handy.
If you are interested to become a forex trading pro then you should try to take the maximum use of this software. If you use this software then you chart using this software then you would get the perfect knowledge about the forex trading that is offered by the forex market.Currency trading market is considered to the largest market in the whole world and it one of the busiest markets. You would have problem of keeping the track of the forex market. You would be able to keep the track of the various trends that are prevailing in the market.
if you are using the this software as a tool then you should study the changes that are taking place in the forex market. The knowledge that you have gain would aid you to trade in the market.
If you want to install this software then you need to explore yourself to net. You can use different trends and pattern of the forex chart. You can use the special tools that can be generated in short duration of time. You can use this tool to examine the software that you are using.
The forex charts would help the trader to take the decisions about the market in which you are dealing. Forex charting software would provide relief to the people that want to become successful and want to get the deal that they want. There are different methods that can help you to the knowledge that you want to have. This would help you to make the future predictions about the forex market. This would help in charting the different types of software.
There are various types of software in the market. You need to select the software as per your needs and requirements. You need to be careful in selecting the software for your deal.
You would find that the experienced trader would always take the proper training before entering into the market of forex. If you are a learner then you should always start the trade with the nominal amount. You should no invest huge amount at a particular point of time.
If you want to learn the ways of reading the forex chart then you can purchase this software that would provide you required knowledge about the forex market. This software would aid you to keep the track of the money that you invest in this market and it would also keep the track of your time that you spend in this market. This software would help you to keep a track of the amount that you have invested in the firm. This software is handy.
If you are interested to become a forex trading pro then you should try to take the maximum use of this software. If you use this software then you chart using this software then you would get the perfect knowledge about the forex trading that is offered by the forex market.Currency trading market is considered to the largest market in the whole world and it one of the busiest markets. You would have problem of keeping the track of the forex market. You would be able to keep the track of the various trends that are prevailing in the market.
if you are using the this software as a tool then you should study the changes that are taking place in the forex market. The knowledge that you have gain would aid you to trade in the market.
If you want to install this software then you need to explore yourself to net. You can use different trends and pattern of the forex chart. You can use the special tools that can be generated in short duration of time. You can use this tool to examine the software that you are using.
The forex charts would help the trader to take the decisions about the market in which you are dealing. Forex charting software would provide relief to the people that want to become successful and want to get the deal that they want. There are different methods that can help you to the knowledge that you want to have. This would help you to make the future predictions about the forex market. This would help in charting the different types of software.
There are various types of software in the market. You need to select the software as per your needs and requirements. You need to be careful in selecting the software for your deal.
Enhance your forex trading with an automated trading application
One of the differences between the stock market and the forex market is the vast trading that occurs on the forex market. The foreign exchange market(currency, forex, or FX) is where currency trading takes place. It is where banks and other official institutions facilitate the buying and selling of foreign currencies.
The forex trading market is a volatile industry. It is also a very lucrative market. However, to be a successful FX trader you need to educate yourself and have a long term plan. The lack of a forex trading strategy will guarantee failure. When starting out as a forex trader it is easy to abandon your plan or lack of a plan. A good forex trading education is a must.
Being well verse in the stock market will assist you with your forex trading. However, to enter into the foreign exchange market it is not necessary to have any prior trading experience. Some basic forex strategy systems are the fundamental analysis and the technical analysis. Fundamental analysis The fundamental analysis is performed on historical and present data, but with the goal of making financial forecast. The data used in this analysis is; money policy, government policy and economic indicators. Some examples are GDP, exports and imports. The analysis of this data is for a specific business cycle.
Technical analysis Forex technical analysis is a security analysis technique that claims the ability to forecast the future direction of prices through the study of past market data, primarily price and volume. In its purest form, technical analysis considers only the actual price and volume behavior of the market or instrument. Technical analysts, sometimes called "chartists", may employ models and trading rules based on price and volume transformations.Before you dive head first into the forex market open up a demo account.
A forex demo account is a simulated account where you get virtual money of $25,000 to $1, 00,000. You get live quotes and bids that are part of real forex trade. Once you have master that are ready to take the plunge into the real thing open up a mini account. A mini account is a great stepping-stone to the big leagues of FX. It allows you to open up an account where the leverage is higher in comparison to standard accounts. With a mini account you are dealing with mini contracts. You can open up a mini account with $250.
When you are ready you can move onto a standard account The forex market welcomes traders 24 hours a day. Forex market opens on Sunday 5 pm EST (10:00 pm GMT), closes on Friday 5 pm EST (10:00 pm GMT). No matter what region of the world you live in you can trade on the forex. As one market is opening, another countries market is closing. This is the continual method of how the forex market trading occurs. An example of forex trades in the western region of the world is USD/EUR and USD/GBP. An example of a forex trade in the Asian Economic regions or the world is JPY/USD and JPY/GBP.
Technology is a beautiful thing. To be involved in these markets you don't have to be awake for every different time zone. Automated analytical forex software applications allow you trade during the middle of the night while you sleep. There are many, different type of automated forex software applications on the market. Some of the most commonly used applications are forex killer, auto- pilot and forex-funnel to mention a few. These applications are used by; professionals and beginners alike with no experience whatsoever. These applications can assist you with a forex trading strategies.
The forex trading market is a volatile industry. It is also a very lucrative market. However, to be a successful FX trader you need to educate yourself and have a long term plan. The lack of a forex trading strategy will guarantee failure. When starting out as a forex trader it is easy to abandon your plan or lack of a plan. A good forex trading education is a must.
Being well verse in the stock market will assist you with your forex trading. However, to enter into the foreign exchange market it is not necessary to have any prior trading experience. Some basic forex strategy systems are the fundamental analysis and the technical analysis. Fundamental analysis The fundamental analysis is performed on historical and present data, but with the goal of making financial forecast. The data used in this analysis is; money policy, government policy and economic indicators. Some examples are GDP, exports and imports. The analysis of this data is for a specific business cycle.
Technical analysis Forex technical analysis is a security analysis technique that claims the ability to forecast the future direction of prices through the study of past market data, primarily price and volume. In its purest form, technical analysis considers only the actual price and volume behavior of the market or instrument. Technical analysts, sometimes called "chartists", may employ models and trading rules based on price and volume transformations.Before you dive head first into the forex market open up a demo account.
A forex demo account is a simulated account where you get virtual money of $25,000 to $1, 00,000. You get live quotes and bids that are part of real forex trade. Once you have master that are ready to take the plunge into the real thing open up a mini account. A mini account is a great stepping-stone to the big leagues of FX. It allows you to open up an account where the leverage is higher in comparison to standard accounts. With a mini account you are dealing with mini contracts. You can open up a mini account with $250.
When you are ready you can move onto a standard account The forex market welcomes traders 24 hours a day. Forex market opens on Sunday 5 pm EST (10:00 pm GMT), closes on Friday 5 pm EST (10:00 pm GMT). No matter what region of the world you live in you can trade on the forex. As one market is opening, another countries market is closing. This is the continual method of how the forex market trading occurs. An example of forex trades in the western region of the world is USD/EUR and USD/GBP. An example of a forex trade in the Asian Economic regions or the world is JPY/USD and JPY/GBP.
Technology is a beautiful thing. To be involved in these markets you don't have to be awake for every different time zone. Automated analytical forex software applications allow you trade during the middle of the night while you sleep. There are many, different type of automated forex software applications on the market. Some of the most commonly used applications are forex killer, auto- pilot and forex-funnel to mention a few. These applications are used by; professionals and beginners alike with no experience whatsoever. These applications can assist you with a forex trading strategies.
what is forex
More than 100 million people in the world are looking for profitable investment.
We love talking investment because this is the energyless but high profit gain business.
Forex Trading is the world's largest financial market with an estimated daily average turnover between $1.5 trillion to $2.5 trillion that we cannot doubt. If we want to make profit from this investment, there are some related knowledges that we definitely need to know.
Use Future data to justify market trend.Pivot Program shows entry & exit signals.Familiar Chart Patterns and Trend lines.
how big dogs are doing?euro vs USD Tricks.
Be Smart to Filter Various Currency pairs.Confident to Control Up and Down Trendy.
Avoid Pitfalls of Dumb money.Intelligent stop loss strategies implementation.
We love talking investment because this is the energyless but high profit gain business.
Forex Trading is the world's largest financial market with an estimated daily average turnover between $1.5 trillion to $2.5 trillion that we cannot doubt. If we want to make profit from this investment, there are some related knowledges that we definitely need to know.
Use Future data to justify market trend.Pivot Program shows entry & exit signals.Familiar Chart Patterns and Trend lines.
how big dogs are doing?euro vs USD Tricks.
Be Smart to Filter Various Currency pairs.Confident to Control Up and Down Trendy.
Avoid Pitfalls of Dumb money.Intelligent stop loss strategies implementation.
How do I begin? Please give it to me SIMPLY.
1. The best advice on how to learn to trade profitably is to learn from experts with proven track records. Many learning styles are available to beginners at all levels: books, CDs, online courses, group seminars, even one-on-one mentors who will come right your home for a few days.
We outline our Forex-Trader picks in Learning Forex Trading. Learning to trade from experts is worth every penny and has saved us untold thousands in mistakes.We would not recommend starting forex trading without any training.
It is not hard to learn, nor difficult to trade successfully, but you must first provide yourself with a basic functioning knowledge of ’the game you’re in’.2. While you are learning you will need charting software to practice reading the Market.
Charting is an indispensable tool that shows you in real-time data what the market is doing moment by moment and also what the market has done in the past. As you learn to analyze these charts you can determine what trades to enter and exit, where to set your stop losses, limits etc. There are several good charting software services that you can subscribe to online monthly. See our Forex-Trader tested Charting Software picks in Tools of The Trade.3. Then, to perform your actual trades online you need a real-time ’trading platform’ to execute your ’buys’ and ’sells’ directly in the Foreign Currency Market.
You obtain a trading platform from a Forex Clearinghouse that is connected real-time to the interbank market. There are many good Clearinghouses (also confusingly called Brokerage Firms, Market Makers, etc.) that provide you with the trading platform to trade the funds in the account you have opened with them. Before you begin trading your ’real’ money, while you are learning, you will practice on your own ’demo account’ with play-money in it, which will be provided to you by the clearinghouse you plan to trade through. The contractual relationship you enter into with your Clearinghouse is a very important one because the Clearinghouse you choose determines many trading features and financial advantages to you both as a trader and as an investor.
Forex-Trader tested Clearinghouses are reviewed in Tools of The Trade.We have outlined a Getting Started path with uncomplicated steps. This is the path that we would take if we were beginning trading over again today with ’what we know now’. The products and services we mention in these steps are all ones that we have personally used for some time with consistent success. As always you are free to forge your own path, and if you do, happy hiking. There is a mountain of products and services try out, and if you find ones you like better we would love to compare notes with you.
We outline our Forex-Trader picks in Learning Forex Trading. Learning to trade from experts is worth every penny and has saved us untold thousands in mistakes.We would not recommend starting forex trading without any training.
It is not hard to learn, nor difficult to trade successfully, but you must first provide yourself with a basic functioning knowledge of ’the game you’re in’.2. While you are learning you will need charting software to practice reading the Market.
Charting is an indispensable tool that shows you in real-time data what the market is doing moment by moment and also what the market has done in the past. As you learn to analyze these charts you can determine what trades to enter and exit, where to set your stop losses, limits etc. There are several good charting software services that you can subscribe to online monthly. See our Forex-Trader tested Charting Software picks in Tools of The Trade.3. Then, to perform your actual trades online you need a real-time ’trading platform’ to execute your ’buys’ and ’sells’ directly in the Foreign Currency Market.
You obtain a trading platform from a Forex Clearinghouse that is connected real-time to the interbank market. There are many good Clearinghouses (also confusingly called Brokerage Firms, Market Makers, etc.) that provide you with the trading platform to trade the funds in the account you have opened with them. Before you begin trading your ’real’ money, while you are learning, you will practice on your own ’demo account’ with play-money in it, which will be provided to you by the clearinghouse you plan to trade through. The contractual relationship you enter into with your Clearinghouse is a very important one because the Clearinghouse you choose determines many trading features and financial advantages to you both as a trader and as an investor.
Forex-Trader tested Clearinghouses are reviewed in Tools of The Trade.We have outlined a Getting Started path with uncomplicated steps. This is the path that we would take if we were beginning trading over again today with ’what we know now’. The products and services we mention in these steps are all ones that we have personally used for some time with consistent success. As always you are free to forge your own path, and if you do, happy hiking. There is a mountain of products and services try out, and if you find ones you like better we would love to compare notes with you.
Forex Trading - TheSecret to Forex Profits p
There is one secret that will allow you to make big money in forex.
There is one thing, just one thing, that if you fall to do it, you've guaranteed yourself failure.That secret is to stay in the game. If you can get your capital to last long enough, you will be able to turn a profit. Most traders lose their account, and then start a new one. This is madness.You must stay in the game. You see, picking winners isn't so hard. You've done it. So have I. The real key is being able to outlast the losing trades. If you can, then you are using the secret to forex profits.So how do you outlast the bad trades?It's all about controlling your leverage. The broker may offer you 100:1 leverage. How much of it do you use?For example let's say you have a mini-account, and you've deposited $1000 dollars. You trade one mini lot of EUR/USD. That mini lot is worth $10,000. You only have $1000 in your account. Sure you've only used 10% of your margin. However, you're trading at 10 to 1 leverage. You're controlling $10,000 worth of currency, and you're doing it with $1000. $10,000 / $1000 = 10.Professional traders won't ever trade over 3 to 1. Rarely are they ever over 1 to 1.
Why?The smaller your leverage, the less you'll lose per bad trade.
The less you lose per bad trade, the more of them you can absorb.The more you can absorb, the more likely you are to outlast them, and that leads to forex profits. See?So, if you have a small account, ask several brokers if they offer micro lots (or fractional pips). That will allow you to trade like professional traders. Eventually, it will allow you to profit like one too.Do you want to learn more about how I trade? I have just completed my brand new guide, "Forex Trading - What Finally Worked For Me".
There is one thing, just one thing, that if you fall to do it, you've guaranteed yourself failure.That secret is to stay in the game. If you can get your capital to last long enough, you will be able to turn a profit. Most traders lose their account, and then start a new one. This is madness.You must stay in the game. You see, picking winners isn't so hard. You've done it. So have I. The real key is being able to outlast the losing trades. If you can, then you are using the secret to forex profits.So how do you outlast the bad trades?It's all about controlling your leverage. The broker may offer you 100:1 leverage. How much of it do you use?For example let's say you have a mini-account, and you've deposited $1000 dollars. You trade one mini lot of EUR/USD. That mini lot is worth $10,000. You only have $1000 in your account. Sure you've only used 10% of your margin. However, you're trading at 10 to 1 leverage. You're controlling $10,000 worth of currency, and you're doing it with $1000. $10,000 / $1000 = 10.Professional traders won't ever trade over 3 to 1. Rarely are they ever over 1 to 1.
Why?The smaller your leverage, the less you'll lose per bad trade.
The less you lose per bad trade, the more of them you can absorb.The more you can absorb, the more likely you are to outlast them, and that leads to forex profits. See?So, if you have a small account, ask several brokers if they offer micro lots (or fractional pips). That will allow you to trade like professional traders. Eventually, it will allow you to profit like one too.Do you want to learn more about how I trade? I have just completed my brand new guide, "Forex Trading - What Finally Worked For Me".
Learn Forex Trading Become Profitable
Learn Forex Trading Become Profitable TraderOur currency trading forex courses are awesome and the hard work to come out these forex training course are proven logical, powerful, robust and well presented methodology.
We have the great trader and mentor. The strategies that are being taught honestly in the course have paved & lighted the forex trading path & turned the dumb money into smart money.
The pivot point trading method is analagous to precision guidance system. The signal analysis method gives high level of accuracy and most of the traders truly learn from the concise and useful technical information.What are the Secrets in Forex Trading?More than 100 million people in the world are looking for profitable investment. We love talking investment because this is the energyless but high profit gain business. Forex Trading is the world's largest financial market with an estimated daily average turnover between $1.5 trillion to $2.5 trillion that we cannot doubt.
If we want to make profit from this investment, there are some related knowledges that we definitely need to know.Use Future data to justify market trend.Pivot Program shows entry & exit signals.Familiar Chart Patterns and Trend lines.how big dogs are doing?euro vs USD Tricks.Be Smart to Filter Various Currency pairs.Confident to Control Up and Down Trendy.Avoid Pitfalls of Dumb money.Intelligent stop loss strategies implementation.AIME methodologyHistory is your tips.Hedge currency Trades
We have the great trader and mentor. The strategies that are being taught honestly in the course have paved & lighted the forex trading path & turned the dumb money into smart money.
The pivot point trading method is analagous to precision guidance system. The signal analysis method gives high level of accuracy and most of the traders truly learn from the concise and useful technical information.What are the Secrets in Forex Trading?More than 100 million people in the world are looking for profitable investment. We love talking investment because this is the energyless but high profit gain business. Forex Trading is the world's largest financial market with an estimated daily average turnover between $1.5 trillion to $2.5 trillion that we cannot doubt.
If we want to make profit from this investment, there are some related knowledges that we definitely need to know.Use Future data to justify market trend.Pivot Program shows entry & exit signals.Familiar Chart Patterns and Trend lines.how big dogs are doing?euro vs USD Tricks.Be Smart to Filter Various Currency pairs.Confident to Control Up and Down Trendy.Avoid Pitfalls of Dumb money.Intelligent stop loss strategies implementation.AIME methodologyHistory is your tips.Hedge currency Trades
VARIOUS SECRETS AND RELATED ASPECTS OF FOREX TRADING
As said above also, the foreign exchange day trading is considered as one of the most profitable and attractive opportunities for investment as any person can easily do this while at home or office and from any corner of world.
For succeeding in the FOREX trading, a person is not required to do any online promotion etc nor there is any requirement of spending thousands of dollars for any type of internet promotion. The only requirement in the FOREX Day trading is the account that a person is required to open with any of the brokers. This account can be opened with any amount between $300 and $2000. After opening the account, a person is required to make trade. There are some secrets that have to be followed.
First secret about FOREX Day trading is that when the price of any currency goes low, the person should buy it. The person should constantly watch the price of the foreign exchange and when it goes up, he should sell it. This is how a person makes a profit. It is to be noted here that if a person carefully buys and sells foreign exchange, he can easily make about $500 to $1000 in just 3 or 4 hours by trading foreign currencies. The other secret of making good money in the foreign exchange market is that the more money a person puts in his FOREX day trading account, the more is the profit that he is likely to make. Thus, a person should try to put good amount in this FOREX day trading account.
It is to be noted here that a person can use $1 to control the investment of about $200 foreign currency investment. If a person does not wish to keep an eye on the foreign currency rates, he can also do that. A person can easily enter all his buy trades and the specific selling price at which he wants to sell the foreign currency.
Thus, the currencies would be automatically sold for the person. One of the secrets of FOREX day trading is that a person is not required to quit his job at the beginning of the FOREX trades. It is only after some years that a person should think of going exclusively for the FOREX day trading, when he has already made thousands of dollars. As far as proceeding for the day trading is concerned, a person can buy 3 or 4 different currencies in the morning on Internet by spending ten minutes only. A person can then specify the price at which he wishes to sell the currency and then, he can easily log off.
In evening, he can open his account to see for how much the currency has been sold. It is advised here that before a person goes for the foreign currency day trading, he must open the free trial demo FOREX day trading account for the practice purpose in order to learn the working and acquiring right skills. This allows a person to learn how he can prevent the losses in the FOREX day trading trades.
The FOREX or the FX market, as it is commonly called as, is basically the spot or cash market for the currency and thus, there is no future trading in it. The foreign exchange market is the OTC or Over the Counter market. It is also called as the Interbank market.
http://5affiliate.blogspot.com/ http://5affiliate.blogspot.com/
http://5federalcriminal.blogspot.com/
http://5adsense.blogspot.com/
http://foliady3.blogspot.com/
مرسلة بواسطة khaled mahmoud ali ahmed في 10:02 م 0 التعليقات
How To Choose A Forex Trading System
Choose the wrong system and you’ll be out of pocket for both the cost of the system and the cost of the trades that went wrong when you follow the trading system you’ve just bought.
Make sure that you check out the various reviews and forums that are available online.
If you’re relying osing a Forex trading system should be a careful decision for you. on a review, make sure that it comes from a site that you can trust.
If the design of the site looks cheap and unprofessional and is littered with flashing adverts then it’s worth pressing the Back button fast!
Forums are probably a better bet as you’ll get lots of different opinions from the regular people who post. The better forums may even have a section devoted to systems, with a number of user reviews of each one.
Take the time to seek out this kind of advice. It will cost you time but almost certainly save you money.
http://5affiliate.blogspot.com/ http://5affiliate.blogspot.com/
http://5federalcriminal.blogspot.com/
http://5adsense.blogspot.com/
http://foliady3.blogspot.com/
مرسلة بواسطة khaled mahmoud ali ahmed في 09:50 م 0 التعليقات
Learn Forex Trading Become Profitable
Learn Forex Trading Become Profitable TraderOur currency trading forex courses are awesome and the hard work to come out these forex training course are proven logical, powerful, robust and well presented methodology.
We have the great trader and mentor. The strategies that are being taught honestly in the course have paved & lighted the forex trading path & turned the dumb money into smart money.
The pivot point trading method is analagous to precision guidance system. The signal analysis method gives high level of accuracy and most of the traders truly learn from the concise and useful technical information.What are the Secrets in Forex Trading?More than 100 million people in the world are looking for profitable investment. We love talking investment because this is the energyless but high profit gain business. Forex Trading is the world's largest financial market with an estimated daily average turnover between $1.5 trillion to $2.5 trillion that we cannot doubt.
If we want to make profit from this investment, there are some related knowledges that we definitely need to know.Use Future data to justify market trend.Pivot Program shows entry & exit signals.Familiar Chart Patterns and Trend lines.how big dogs are doing?euro vs USD Tricks.Be Smart to Filter Various Currency pairs.Confident to Control Up and Down Trendy.Avoid Pitfalls of Dumb money.Intelligent stop loss strategies implementation.AIME methodologyHistory is your tips.Hedge currency Trades
http://5affiliate.blogspot.com/ http://5affiliate.blogspot.com/
http://5federalcriminal.blogspot.com/
http://5adsense.blogspot.com/
http://foliady3.blogspot.com/
مرسلة بواسطة khaled mahmoud ali ahmed في 12:59 ص 0 التعليقات
04 مايو, 2009
Forex Trading - TheSecret to Forex Profits p
There is one secret that will allow you to make big money in forex.
There is one thing, just one thing, that if you fall to do it, you've guaranteed yourself failure.That secret is to stay in the game. If you can get your capital to last long enough, you will be able to turn a profit. Most traders lose their account, and then start a new one. This is madness.You must stay in the game. You see, picking winners isn't so hard. You've done it. So have I. The real key is being able to outlast the losing trades. If you can, then you are using the secret to forex profits.So how do you outlast the bad trades?It's all about controlling your leverage. The broker may offer you 100:1 leverage. How much of it do you use?For example let's say you have a mini-account, and you've deposited $1000 dollars. You trade one mini lot of EUR/USD. That mini lot is worth $10,000. You only have $1000 in your account. Sure you've only used 10% of your margin. However, you're trading at 10 to 1 leverage. You're controlling $10,000 worth of currency, and you're doing it with $1000. $10,000 / $1000 = 10.Professional traders won't ever trade over 3 to 1. Rarely are they ever over 1 to 1.
Why?The smaller your leverage, the less you'll lose per bad trade.
The less you lose per bad trade, the more of them you can absorb.The more you can absorb, the more likely you are to outlast them, and that leads to forex profits. See?So, if you have a small account, ask several brokers if they offer micro lots (or fractional pips). That will allow you to trade like professional traders. Eventually, it will allow you to profit like one too.Do you want to learn more about how I trade? I have just completed my brand new guide, "Forex Trading - What Finally Worked For Me".
http://5affiliate.blogspot.com/ http://5affiliate.blogspot.com/
http://5federalcriminal.blogspot.com/
http://5adsense.blogspot.com/
http://foliady3.blogspot.com/
مرسلة بواسطة khaled mahmoud ali ahmed في 10:52 م 0 التعليقات
How do I begin? Please give it to me SIMPLY.
1. The best advice on how to learn to trade profitably is to learn from experts with proven track records. Many learning styles are available to beginners at all levels: books, CDs, online courses, group seminars, even one-on-one mentors who will come right your home for a few days.
We outline our Forex-Trader picks in Learning Forex Trading. Learning to trade from experts is worth every penny and has saved us untold thousands in mistakes.We would not recommend starting forex trading without any training.
It is not hard to learn, nor difficult to trade successfully, but you must first provide yourself with a basic functioning knowledge of ’the game you’re in’.2. While you are learning you will need charting software to practice reading the Market.
Charting is an indispensable tool that shows you in real-time data what the market is doing moment by moment and also what the market has done in the past. As you learn to analyze these charts you can determine what trades to enter and exit, where to set your stop losses, limits etc. There are several good charting software services that you can subscribe to online monthly. See our Forex-Trader tested Charting Software picks in Tools of The Trade.3. Then, to perform your actual trades online you need a real-time ’trading platform’ to execute your ’buys’ and ’sells’ directly in the Foreign Currency Market.
You obtain a trading platform from a Forex Clearinghouse that is connected real-time to the interbank market. There are many good Clearinghouses (also confusingly called Brokerage Firms, Market Makers, etc.) that provide you with the trading platform to trade the funds in the account you have opened with them. Before you begin trading your ’real’ money, while you are learning, you will practice on your own ’demo account’ with play-money in it, which will be provided to you by the clearinghouse you plan to trade through. The contractual relationship you enter into with your Clearinghouse is a very important one because the Clearinghouse you choose determines many trading features and financial advantages to you both as a trader and as an investor.
Forex-Trader tested Clearinghouses are reviewed in Tools of The Trade.We have outlined a Getting Started path with uncomplicated steps. This is the path that we would take if we were beginning trading over again today with ’what we know now’. The products and services we mention in these steps are all ones that we have personally used for some time with consistent success. As always you are free to forge your own path, and if you do, happy hiking. There is a mountain of products and services try out, and if you find ones you like better we would love to compare notes with you.
http://5affiliate.blogspot.com/ http://5affiliate.blogspot.com/
http://5federalcriminal.blogspot.com/
http://5adsense.blogspot.com/
http://foliady3.blogspot.com/
مرسلة بواسطة khaled mahmoud ali ahmed في 10:51 م 0 التعليقات
what is forex
More than 100 million people in the world are looking for profitable investment.
We love talking investment because this is the energyless but high profit gain business.
Forex Trading is the world's largest financial market with an estimated daily average turnover between $1.5 trillion to $2.5 trillion that we cannot doubt. If we want to make profit from this investment, there are some related knowledges that we definitely need to know.
Use Future data to justify market trend.Pivot Program shows entry & exit signals.Familiar Chart Patterns and Trend lines.
how big dogs are doing?euro vs USD Tricks.
Be Smart to Filter Various Currency pairs.Confident to Control Up and Down Trendy.
Avoid Pitfalls of Dumb money.Intelligent stop loss strategies implementation.
http://5affiliate.blogspot.com/ http://5affiliate.blogspot.com/
http://5federalcriminal.blogspot.com/
http://5adsense.blogspot.com/
http://foliady3.blogspot.com/
مرسلة بواسطة khaled mahmoud ali ahmed في 10:50 م 0 التعليقات
يونيو 2009 أبريل 2009 الصفحة الرئيسية
الاشتراك في: الرسائل (Atom)
Blog Archive
▼ 2009 (25)
◄ يوليو (2)
Why should I learn Forex currency trading?
USD Holds Steady on Data
◄ يونيو (5)
Enhance your forex trading with an automated tradi...
Ways to Read Forex Chart
Realistic expectations of forex trading
Realistic expectations of forex trading
More Forex: learn trading
▼ مايو (16)
Attention Traders: Making a Trading Checklist
Top 10 Mistakes Traders Make
Trade the break-out, trade the bounce, or wait for...
Generally Right Vs. Precisely Wrong
Methods of Foreign Exchange Trading For Starters
Simple Successful FOREX Technical Analysis Basics
Types of Foreign Exchange Trading Education
The foreign exchange market
eToro Forex Platform
Learn How to Trade in Forex Market from the Basics...
VARIOUS SECRETS AND RELATED ASPECTS OF FOREX TRADI...
How To Choose A Forex Trading System
Learn Forex Trading Become Profitable
Forex Trading - TheSecret to Forex Profits p
How do I begin? Please give it to me SIMPLY.
what is forex
For succeeding in the FOREX trading, a person is not required to do any online promotion etc nor there is any requirement of spending thousands of dollars for any type of internet promotion. The only requirement in the FOREX Day trading is the account that a person is required to open with any of the brokers. This account can be opened with any amount between $300 and $2000. After opening the account, a person is required to make trade. There are some secrets that have to be followed.
First secret about FOREX Day trading is that when the price of any currency goes low, the person should buy it. The person should constantly watch the price of the foreign exchange and when it goes up, he should sell it. This is how a person makes a profit. It is to be noted here that if a person carefully buys and sells foreign exchange, he can easily make about $500 to $1000 in just 3 or 4 hours by trading foreign currencies. The other secret of making good money in the foreign exchange market is that the more money a person puts in his FOREX day trading account, the more is the profit that he is likely to make. Thus, a person should try to put good amount in this FOREX day trading account.
It is to be noted here that a person can use $1 to control the investment of about $200 foreign currency investment. If a person does not wish to keep an eye on the foreign currency rates, he can also do that. A person can easily enter all his buy trades and the specific selling price at which he wants to sell the foreign currency.
Thus, the currencies would be automatically sold for the person. One of the secrets of FOREX day trading is that a person is not required to quit his job at the beginning of the FOREX trades. It is only after some years that a person should think of going exclusively for the FOREX day trading, when he has already made thousands of dollars. As far as proceeding for the day trading is concerned, a person can buy 3 or 4 different currencies in the morning on Internet by spending ten minutes only. A person can then specify the price at which he wishes to sell the currency and then, he can easily log off.
In evening, he can open his account to see for how much the currency has been sold. It is advised here that before a person goes for the foreign currency day trading, he must open the free trial demo FOREX day trading account for the practice purpose in order to learn the working and acquiring right skills. This allows a person to learn how he can prevent the losses in the FOREX day trading trades.
The FOREX or the FX market, as it is commonly called as, is basically the spot or cash market for the currency and thus, there is no future trading in it. The foreign exchange market is the OTC or Over the Counter market. It is also called as the Interbank market.
http://5affiliate.blogspot.com/ http://5affiliate.blogspot.com/
http://5federalcriminal.blogspot.com/
http://5adsense.blogspot.com/
http://foliady3.blogspot.com/
مرسلة بواسطة khaled mahmoud ali ahmed في 10:02 م 0 التعليقات
How To Choose A Forex Trading System
Choose the wrong system and you’ll be out of pocket for both the cost of the system and the cost of the trades that went wrong when you follow the trading system you’ve just bought.
Make sure that you check out the various reviews and forums that are available online.
If you’re relying osing a Forex trading system should be a careful decision for you. on a review, make sure that it comes from a site that you can trust.
If the design of the site looks cheap and unprofessional and is littered with flashing adverts then it’s worth pressing the Back button fast!
Forums are probably a better bet as you’ll get lots of different opinions from the regular people who post. The better forums may even have a section devoted to systems, with a number of user reviews of each one.
Take the time to seek out this kind of advice. It will cost you time but almost certainly save you money.
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مرسلة بواسطة khaled mahmoud ali ahmed في 09:50 م 0 التعليقات
Learn Forex Trading Become Profitable
Learn Forex Trading Become Profitable TraderOur currency trading forex courses are awesome and the hard work to come out these forex training course are proven logical, powerful, robust and well presented methodology.
We have the great trader and mentor. The strategies that are being taught honestly in the course have paved & lighted the forex trading path & turned the dumb money into smart money.
The pivot point trading method is analagous to precision guidance system. The signal analysis method gives high level of accuracy and most of the traders truly learn from the concise and useful technical information.What are the Secrets in Forex Trading?More than 100 million people in the world are looking for profitable investment. We love talking investment because this is the energyless but high profit gain business. Forex Trading is the world's largest financial market with an estimated daily average turnover between $1.5 trillion to $2.5 trillion that we cannot doubt.
If we want to make profit from this investment, there are some related knowledges that we definitely need to know.Use Future data to justify market trend.Pivot Program shows entry & exit signals.Familiar Chart Patterns and Trend lines.how big dogs are doing?euro vs USD Tricks.Be Smart to Filter Various Currency pairs.Confident to Control Up and Down Trendy.Avoid Pitfalls of Dumb money.Intelligent stop loss strategies implementation.AIME methodologyHistory is your tips.Hedge currency Trades
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http://5adsense.blogspot.com/
http://foliady3.blogspot.com/
مرسلة بواسطة khaled mahmoud ali ahmed في 12:59 ص 0 التعليقات
04 مايو, 2009
Forex Trading - TheSecret to Forex Profits p
There is one secret that will allow you to make big money in forex.
There is one thing, just one thing, that if you fall to do it, you've guaranteed yourself failure.That secret is to stay in the game. If you can get your capital to last long enough, you will be able to turn a profit. Most traders lose their account, and then start a new one. This is madness.You must stay in the game. You see, picking winners isn't so hard. You've done it. So have I. The real key is being able to outlast the losing trades. If you can, then you are using the secret to forex profits.So how do you outlast the bad trades?It's all about controlling your leverage. The broker may offer you 100:1 leverage. How much of it do you use?For example let's say you have a mini-account, and you've deposited $1000 dollars. You trade one mini lot of EUR/USD. That mini lot is worth $10,000. You only have $1000 in your account. Sure you've only used 10% of your margin. However, you're trading at 10 to 1 leverage. You're controlling $10,000 worth of currency, and you're doing it with $1000. $10,000 / $1000 = 10.Professional traders won't ever trade over 3 to 1. Rarely are they ever over 1 to 1.
Why?The smaller your leverage, the less you'll lose per bad trade.
The less you lose per bad trade, the more of them you can absorb.The more you can absorb, the more likely you are to outlast them, and that leads to forex profits. See?So, if you have a small account, ask several brokers if they offer micro lots (or fractional pips). That will allow you to trade like professional traders. Eventually, it will allow you to profit like one too.Do you want to learn more about how I trade? I have just completed my brand new guide, "Forex Trading - What Finally Worked For Me".
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مرسلة بواسطة khaled mahmoud ali ahmed في 10:52 م 0 التعليقات
How do I begin? Please give it to me SIMPLY.
1. The best advice on how to learn to trade profitably is to learn from experts with proven track records. Many learning styles are available to beginners at all levels: books, CDs, online courses, group seminars, even one-on-one mentors who will come right your home for a few days.
We outline our Forex-Trader picks in Learning Forex Trading. Learning to trade from experts is worth every penny and has saved us untold thousands in mistakes.We would not recommend starting forex trading without any training.
It is not hard to learn, nor difficult to trade successfully, but you must first provide yourself with a basic functioning knowledge of ’the game you’re in’.2. While you are learning you will need charting software to practice reading the Market.
Charting is an indispensable tool that shows you in real-time data what the market is doing moment by moment and also what the market has done in the past. As you learn to analyze these charts you can determine what trades to enter and exit, where to set your stop losses, limits etc. There are several good charting software services that you can subscribe to online monthly. See our Forex-Trader tested Charting Software picks in Tools of The Trade.3. Then, to perform your actual trades online you need a real-time ’trading platform’ to execute your ’buys’ and ’sells’ directly in the Foreign Currency Market.
You obtain a trading platform from a Forex Clearinghouse that is connected real-time to the interbank market. There are many good Clearinghouses (also confusingly called Brokerage Firms, Market Makers, etc.) that provide you with the trading platform to trade the funds in the account you have opened with them. Before you begin trading your ’real’ money, while you are learning, you will practice on your own ’demo account’ with play-money in it, which will be provided to you by the clearinghouse you plan to trade through. The contractual relationship you enter into with your Clearinghouse is a very important one because the Clearinghouse you choose determines many trading features and financial advantages to you both as a trader and as an investor.
Forex-Trader tested Clearinghouses are reviewed in Tools of The Trade.We have outlined a Getting Started path with uncomplicated steps. This is the path that we would take if we were beginning trading over again today with ’what we know now’. The products and services we mention in these steps are all ones that we have personally used for some time with consistent success. As always you are free to forge your own path, and if you do, happy hiking. There is a mountain of products and services try out, and if you find ones you like better we would love to compare notes with you.
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http://foliady3.blogspot.com/
مرسلة بواسطة khaled mahmoud ali ahmed في 10:51 م 0 التعليقات
what is forex
More than 100 million people in the world are looking for profitable investment.
We love talking investment because this is the energyless but high profit gain business.
Forex Trading is the world's largest financial market with an estimated daily average turnover between $1.5 trillion to $2.5 trillion that we cannot doubt. If we want to make profit from this investment, there are some related knowledges that we definitely need to know.
Use Future data to justify market trend.Pivot Program shows entry & exit signals.Familiar Chart Patterns and Trend lines.
how big dogs are doing?euro vs USD Tricks.
Be Smart to Filter Various Currency pairs.Confident to Control Up and Down Trendy.
Avoid Pitfalls of Dumb money.Intelligent stop loss strategies implementation.
http://5affiliate.blogspot.com/ http://5affiliate.blogspot.com/
http://5federalcriminal.blogspot.com/
http://5adsense.blogspot.com/
http://foliady3.blogspot.com/
مرسلة بواسطة khaled mahmoud ali ahmed في 10:50 م 0 التعليقات
يونيو 2009 أبريل 2009 الصفحة الرئيسية
الاشتراك في: الرسائل (Atom)
Blog Archive
▼ 2009 (25)
◄ يوليو (2)
Why should I learn Forex currency trading?
USD Holds Steady on Data
◄ يونيو (5)
Enhance your forex trading with an automated tradi...
Ways to Read Forex Chart
Realistic expectations of forex trading
Realistic expectations of forex trading
More Forex: learn trading
▼ مايو (16)
Attention Traders: Making a Trading Checklist
Top 10 Mistakes Traders Make
Trade the break-out, trade the bounce, or wait for...
Generally Right Vs. Precisely Wrong
Methods of Foreign Exchange Trading For Starters
Simple Successful FOREX Technical Analysis Basics
Types of Foreign Exchange Trading Education
The foreign exchange market
eToro Forex Platform
Learn How to Trade in Forex Market from the Basics...
VARIOUS SECRETS AND RELATED ASPECTS OF FOREX TRADI...
How To Choose A Forex Trading System
Learn Forex Trading Become Profitable
Forex Trading - TheSecret to Forex Profits p
How do I begin? Please give it to me SIMPLY.
what is forex
Learn How to Trade in Forex Market from the Basics
Forex trading is well known as a lucrative way to make money online.
It has become an essential part for investor’s portfolio as you can gain thousands in minutes by trading currencies. For those who are new to the forex trading, Forex means Foreign Exchange Market where it involves buying and selling the different currencies of the world. Profits are made through the difference of selling and buying price - you earn when you buy-low and sell-high.
Forex market is a 24-hour market. The trade begins each day in Sydney, and moves around the globe to Tokyo, London, and then New York. Unlike any other financial market, investors can respond to money-value fluctuations caused by economic, social and political events at the time they occur - day or night. Major currencies traded nowadays are U.S. dollars, Australian Dollars, Japanese Yens, British Pounds, Swiss Francs, Canadian Dollars, and the Euro Dollars.
In the past, small speculators are not allowed to trade Forex freely as it is now. The minimum required business sizes are large and the financial requirements for trading foreign currencies are strict.
Only huge multi-national cooperation and banks are able to fit into the business. In fact, large international banks are still the main players in currency exchange market. Deutsche Bank is one of the top currency traders; along with other major banks like UBS, Citi Group, HSBC, Barclays, J. P. Morgan Chase, Coldman Sachs, ABN Amro, Morgan Stanley, and Merril Lynch; these banks are said to be responsible for more than 70% trades in currency market. Forex trade is not open to the publics until year 1998, where big sized inter-bank units are sliced into smaller pieces and offered to individual traders.
It is simple to get started in Forex trading, an funded Forex account and a computer connected to the Internet is more than enough to get started. However, to start trading and become a successful Forex trader are totally different. Trading Forex is a high risks game and traders should always follow certain principals, listed below are a few of must-do’s when trading in Forex market.
1. Educate yourself before trading in Forex market
As in any trading markets, building up your trading skills and knowledge is the very first step that you must take. To further your learning in Forex trading, seminars, workshops, video tutorials, online learning, or even books are handful to help us learn from the professional.
2. Having a trading plans
A good trading plan is needed no matter you are a beginner or an expert in Forex trading. The Forex market itself is just a vehicle, to go to your desired destination, which is to gain profit and achieve financial freedom in our case, you have to drive your vehicle with maps and navigations. How much do you want to earn from the trades? How much you can afford to lose if things go wrong? What is the amount of capital you are putting in? Answer the questions to yourself when you are setting your trading plan. If you fail to plan, you are indeed plan to fail.
3. Mature mindsets and discipline trading
Trading Forex with discipline is very important. Success in Forex trading could not be achieved by only plotting out the best trading plan. It is also depends on implementing the trading plan. Be disciplined, trade according to your plan and never trade with your emotion. Greed will stop you from taking profit at predetermined level; while fear will stop you from making the nice kill in the market.
Without a doubt, Forex is getting more and more popular. There are less restrictions in FOREX market. No limited market access, no liquidity issues-after market hours, zero commission fees, low capital requirements, and no restrictions on short selling. However, the risks in Forex trading should not be taken for granted. As you can always trade in margin, you might lose a lot more than you can afford if you don’t plan your investment wisely. Seminars, e-Books, Internet, papers, plus video courses are all you need first before getting involved in the market.
It has become an essential part for investor’s portfolio as you can gain thousands in minutes by trading currencies. For those who are new to the forex trading, Forex means Foreign Exchange Market where it involves buying and selling the different currencies of the world. Profits are made through the difference of selling and buying price - you earn when you buy-low and sell-high.
Forex market is a 24-hour market. The trade begins each day in Sydney, and moves around the globe to Tokyo, London, and then New York. Unlike any other financial market, investors can respond to money-value fluctuations caused by economic, social and political events at the time they occur - day or night. Major currencies traded nowadays are U.S. dollars, Australian Dollars, Japanese Yens, British Pounds, Swiss Francs, Canadian Dollars, and the Euro Dollars.
In the past, small speculators are not allowed to trade Forex freely as it is now. The minimum required business sizes are large and the financial requirements for trading foreign currencies are strict.
Only huge multi-national cooperation and banks are able to fit into the business. In fact, large international banks are still the main players in currency exchange market. Deutsche Bank is one of the top currency traders; along with other major banks like UBS, Citi Group, HSBC, Barclays, J. P. Morgan Chase, Coldman Sachs, ABN Amro, Morgan Stanley, and Merril Lynch; these banks are said to be responsible for more than 70% trades in currency market. Forex trade is not open to the publics until year 1998, where big sized inter-bank units are sliced into smaller pieces and offered to individual traders.
It is simple to get started in Forex trading, an funded Forex account and a computer connected to the Internet is more than enough to get started. However, to start trading and become a successful Forex trader are totally different. Trading Forex is a high risks game and traders should always follow certain principals, listed below are a few of must-do’s when trading in Forex market.
1. Educate yourself before trading in Forex market
As in any trading markets, building up your trading skills and knowledge is the very first step that you must take. To further your learning in Forex trading, seminars, workshops, video tutorials, online learning, or even books are handful to help us learn from the professional.
2. Having a trading plans
A good trading plan is needed no matter you are a beginner or an expert in Forex trading. The Forex market itself is just a vehicle, to go to your desired destination, which is to gain profit and achieve financial freedom in our case, you have to drive your vehicle with maps and navigations. How much do you want to earn from the trades? How much you can afford to lose if things go wrong? What is the amount of capital you are putting in? Answer the questions to yourself when you are setting your trading plan. If you fail to plan, you are indeed plan to fail.
3. Mature mindsets and discipline trading
Trading Forex with discipline is very important. Success in Forex trading could not be achieved by only plotting out the best trading plan. It is also depends on implementing the trading plan. Be disciplined, trade according to your plan and never trade with your emotion. Greed will stop you from taking profit at predetermined level; while fear will stop you from making the nice kill in the market.
Without a doubt, Forex is getting more and more popular. There are less restrictions in FOREX market. No limited market access, no liquidity issues-after market hours, zero commission fees, low capital requirements, and no restrictions on short selling. However, the risks in Forex trading should not be taken for granted. As you can always trade in margin, you might lose a lot more than you can afford if you don’t plan your investment wisely. Seminars, e-Books, Internet, papers, plus video courses are all you need first before getting involved in the market.
eToro Forex Platform
etoro offers of the most innovative Forex trading platforms on the on-line market. eToro Forex platform allows beginner traders to start trading almost without a traditional Forex learning:
Minimum deposit — $50.
Up to $1,000 bonus upon your first deposit.
All trades are displayed visually in your platform.
Observe trades in real-time in several convenient ways.
Unlimited virtual money is offered if you want to improve your skills.
Demo trading shares the same functionality as the real trading.
Regular contests on both real and demo accounts.
Prizes and bonuses for the most valued customers.
Forum and real-time chat are available for the traders to discuss and share their success.
Effective support team to answer all your questions.
Muslim-friendly accounts are available.
Multilingual site to offer a quality service to the international clients.
Live news feeds to point out the best opportunities for the Forex trading.
Real money orders are executed in a real-time mode, without delays and requotes.
WebMoney, Moneybookers, Wire transfer, PayPal and credit cards are accepted to handle the funds transfers.
1:100, 1:200 and 1:400 leverage to control your risks more accurately.
Webtrader.
Commodities trading (gold, silver and oil).
Demo and real championships with cash prizes
Minimum deposit — $50.
Up to $1,000 bonus upon your first deposit.
All trades are displayed visually in your platform.
Observe trades in real-time in several convenient ways.
Unlimited virtual money is offered if you want to improve your skills.
Demo trading shares the same functionality as the real trading.
Regular contests on both real and demo accounts.
Prizes and bonuses for the most valued customers.
Forum and real-time chat are available for the traders to discuss and share their success.
Effective support team to answer all your questions.
Muslim-friendly accounts are available.
Multilingual site to offer a quality service to the international clients.
Live news feeds to point out the best opportunities for the Forex trading.
Real money orders are executed in a real-time mode, without delays and requotes.
WebMoney, Moneybookers, Wire transfer, PayPal and credit cards are accepted to handle the funds transfers.
1:100, 1:200 and 1:400 leverage to control your risks more accurately.
Webtrader.
Commodities trading (gold, silver and oil).
Demo and real championships with cash prizes
The foreign exchange market
There are four elements which must be present in any good financial market, whether you are trading in the stock, bond, futures, currency market or any other market. These four elements are liquidity, transparency, low trading costs and market trends.
Liquidity
There are always two sides to a trade, a purchase and a sale, and in its simplest form liquidity refers to the ease with which traders can buy and sell. To be truly liquid traders must also be able to trade in substantial volume without this having any marked effect on prices.
If a market lacks liquidity then traders will often encounter delays in meeting orders to buy, frequently leading to a significant variation between the price when an order is placed and when it is executed. In addition, it may be hard to sell in a market that is not sufficiently liquid.
Fortunately the currency exchange market (especially when trading in major world currencies such as the USD and GBP) is extremely liquid and a huge number of trades are conducted each day on the Forex money market with a trading volume that far exceeds that of other markets.
Transparency .
A market is said to possess transparency when traders can access accurate information at all stages of the trading process.
Information is the key to many things in life and the world's various markets are no exception. There are many examples, especially in the world stock markets, of companies and individuals which have run into difficulty because the parties to a trade did not have access to accurate information.
The foreign currency exchange market is without doubt the world's most transparent market and this is especially true when it comes to pricing.
Low Trading Costs .
Markets carry trading costs which inevitably lower a trader's profits or increase his losses. However, when a market can keep its trading costs low it becomes attractive to traders and encourages both an increased number of trades and an greater trading volume.
The absence of commission and other usual trading costs, together with the tight spread of prices, in currency trading mean that trading costs in the Forex market are kept very low.
Liquidity
There are always two sides to a trade, a purchase and a sale, and in its simplest form liquidity refers to the ease with which traders can buy and sell. To be truly liquid traders must also be able to trade in substantial volume without this having any marked effect on prices.
If a market lacks liquidity then traders will often encounter delays in meeting orders to buy, frequently leading to a significant variation between the price when an order is placed and when it is executed. In addition, it may be hard to sell in a market that is not sufficiently liquid.
Fortunately the currency exchange market (especially when trading in major world currencies such as the USD and GBP) is extremely liquid and a huge number of trades are conducted each day on the Forex money market with a trading volume that far exceeds that of other markets.
Transparency .
A market is said to possess transparency when traders can access accurate information at all stages of the trading process.
Information is the key to many things in life and the world's various markets are no exception. There are many examples, especially in the world stock markets, of companies and individuals which have run into difficulty because the parties to a trade did not have access to accurate information.
The foreign currency exchange market is without doubt the world's most transparent market and this is especially true when it comes to pricing.
Low Trading Costs .
Markets carry trading costs which inevitably lower a trader's profits or increase his losses. However, when a market can keep its trading costs low it becomes attractive to traders and encourages both an increased number of trades and an greater trading volume.
The absence of commission and other usual trading costs, together with the tight spread of prices, in currency trading mean that trading costs in the Forex market are kept very low.
Types of Foreign Exchange Trading Education
tting a foreign exchange trading education is very important. You need to understand that the foreign currency trading game changes every time. It is very dynamic and things can change faster than you think they will. The best you can do is to keep yourself abreast of the latest in the trading field.
Learning about the ins and outs of forex is also one efficient way of gaining experience in it. It's not enough that you trade and face so many other business professionals. It's also great to get a third party perspective on how things work.Knowing more about the currency trading game is easier when you know the theories and the technicalities that surround it. You can choose to enroll into a specific course or you can also do some self-studying through the internet as well. Either way, choose the learning method which you think will suit you best.Foreign Exchange Trading Education for FreeSo you want to know how to learn about forex the free way? All you need is lots of time and patience to scan the internet.
You can take advantage of article directories and search for relevant articles talking about forex. However, do not expect that you will get plenty of information from these articles. Most of those published in article directories are practical reads. If you want a quick fix of forex then that's the best place to be. But if you want to learn about everything technical and in-depth, you can try visiting forex sites set up by organizations in the trade. You can also check out websites of financial institutions.Being a member of forum sites is also a great way to learn about forex. Most of the entrepreneurs who dabble in foreign currency trading are more than happy to inform people about their experiences and give insights on growing market trends. Forums are also a great venue for meeting like-minded people in terms of business.
You can also start threads in such forums about the different things you would like to learn about forex that you are yet to fully understand.Considering a Formal Forex CourseIf you find that you want a more cohesive approach to learning about forex, then you can also opt to enroll in some short courses. There are lots of distance learning modules being offered online so you can conveniently learn about forex depending when you can sit down and focus on it. Some experts also hold workshops for forex trading. These last for a few days and may give out certificates upon accomplishing the said workshop.Just make sure that you have the budget and the time for this type of foreign exchange trading education. Consider this method as a surefire investment in the game.
Learning about forex through a systematized course allows you to start from the most basic up to the complex parts of forex trading. This method also helps you focus more since there is a point person who tracks your progress
Learning about the ins and outs of forex is also one efficient way of gaining experience in it. It's not enough that you trade and face so many other business professionals. It's also great to get a third party perspective on how things work.Knowing more about the currency trading game is easier when you know the theories and the technicalities that surround it. You can choose to enroll into a specific course or you can also do some self-studying through the internet as well. Either way, choose the learning method which you think will suit you best.Foreign Exchange Trading Education for FreeSo you want to know how to learn about forex the free way? All you need is lots of time and patience to scan the internet.
You can take advantage of article directories and search for relevant articles talking about forex. However, do not expect that you will get plenty of information from these articles. Most of those published in article directories are practical reads. If you want a quick fix of forex then that's the best place to be. But if you want to learn about everything technical and in-depth, you can try visiting forex sites set up by organizations in the trade. You can also check out websites of financial institutions.Being a member of forum sites is also a great way to learn about forex. Most of the entrepreneurs who dabble in foreign currency trading are more than happy to inform people about their experiences and give insights on growing market trends. Forums are also a great venue for meeting like-minded people in terms of business.
You can also start threads in such forums about the different things you would like to learn about forex that you are yet to fully understand.Considering a Formal Forex CourseIf you find that you want a more cohesive approach to learning about forex, then you can also opt to enroll in some short courses. There are lots of distance learning modules being offered online so you can conveniently learn about forex depending when you can sit down and focus on it. Some experts also hold workshops for forex trading. These last for a few days and may give out certificates upon accomplishing the said workshop.Just make sure that you have the budget and the time for this type of foreign exchange trading education. Consider this method as a surefire investment in the game.
Learning about forex through a systematized course allows you to start from the most basic up to the complex parts of forex trading. This method also helps you focus more since there is a point person who tracks your progress
Simple Successful FOREX Technical Analysis Basics
What are the most simple things you studied or knew in technical analysis that you can use in FOREX trading?, of course most will answer this without even thinking about it, trend lines, resistance and support points and moving averages. The more professional traders will think more about it and would answer Yes, trend lines, resistance and support points and moving averages but who can use them alone successfully in trading FOREX?". Here it is my turn to answer, trend lines, resistance and support points and moving averages are the best simplest ways to achieve success trading FOREX and keep in the positive area always. Just to make it simple we need first to state the definition of these tools and later to know how to use and apply them to our chart in order to succeed and build a real FOREX fortune.
1. Trend Line : Trend line is the line that we can draw between two or more price tops or bottoms on a chart whatever was the type of the chart linear, bars or candlesticks", this line itself which could be an uptrend line which is being drawn between bottoms in a bullish market and it becomes a good support if the price goes south again or a downtrend line which is being drawn between price tops on the chart when market is down and it considered as a resistance when the price turns to up direction. Note: The line which touches more tops or bottoms is more stronger and the signal produced by it is more reliable.
2. Trend Channel : A trend channel is the space between two lines, the trend line and a parallel line to it which is always drawn on the opposite side of the trend line so it is drawn between tops in an up trend direction or through bottoms in a bearish price movement. The trend channel requires some conditions to give an accurate signal, the most important are: to be a wide channel, more wider more reliable and to last more longer.
3. Moving Average : Moving average is a mathematical average of set of prices we can say that a simple moving average (SMA) with value of 5 and applied to close is the sum of close prices for 5 moving bars on the chart divided to 5 (eg. the average of Friday is the sum of the previous 5 days week" on a daily chart divided to 5, while Thursday's average is the sum of the 5 days before divided to 5 and so, the moving average is the line which passes through these averages points", the most important condition for its reliability is its value, more greater value more reliable moving average. Note:
I suggest using more than one moving average, 2 or 3 are acceptable. 4. Support And Resistance Points :
Support points are the price points were tested more than two times when price was going south and it could not pass it, support points are completely the opposite. These points are being used to measure the probability of price turning at mean points, these points can be decided by using pivot points, fibonacci rates....etc." Note :
The more times price touches a point and turn its direction the more stronger it is. How can we apply this to chart and get money, I'll summarize this in the following chart image, it explains itself, it's a chart for GBP/JPY, signal return was 1000+ pips in 2 days:
Three moving averages were going south, trend line was broken price in green circle" a good support point 23.6% fibonacci was nearly broken", strong signal, yes? For the chart please visit MoneyTec The best resource for FOREX trading is MoneyTec, - Active Traders Community Forum, Chat. MoneyTec is an online trading community that promotes mature, intelligent & respectful discussion in a positive & safe environment for everyone.
1. Trend Line : Trend line is the line that we can draw between two or more price tops or bottoms on a chart whatever was the type of the chart linear, bars or candlesticks", this line itself which could be an uptrend line which is being drawn between bottoms in a bullish market and it becomes a good support if the price goes south again or a downtrend line which is being drawn between price tops on the chart when market is down and it considered as a resistance when the price turns to up direction. Note: The line which touches more tops or bottoms is more stronger and the signal produced by it is more reliable.
2. Trend Channel : A trend channel is the space between two lines, the trend line and a parallel line to it which is always drawn on the opposite side of the trend line so it is drawn between tops in an up trend direction or through bottoms in a bearish price movement. The trend channel requires some conditions to give an accurate signal, the most important are: to be a wide channel, more wider more reliable and to last more longer.
3. Moving Average : Moving average is a mathematical average of set of prices we can say that a simple moving average (SMA) with value of 5 and applied to close is the sum of close prices for 5 moving bars on the chart divided to 5 (eg. the average of Friday is the sum of the previous 5 days week" on a daily chart divided to 5, while Thursday's average is the sum of the 5 days before divided to 5 and so, the moving average is the line which passes through these averages points", the most important condition for its reliability is its value, more greater value more reliable moving average. Note:
I suggest using more than one moving average, 2 or 3 are acceptable. 4. Support And Resistance Points :
Support points are the price points were tested more than two times when price was going south and it could not pass it, support points are completely the opposite. These points are being used to measure the probability of price turning at mean points, these points can be decided by using pivot points, fibonacci rates....etc." Note :
The more times price touches a point and turn its direction the more stronger it is. How can we apply this to chart and get money, I'll summarize this in the following chart image, it explains itself, it's a chart for GBP/JPY, signal return was 1000+ pips in 2 days:
Three moving averages were going south, trend line was broken price in green circle" a good support point 23.6% fibonacci was nearly broken", strong signal, yes? For the chart please visit MoneyTec The best resource for FOREX trading is MoneyTec, - Active Traders Community Forum, Chat. MoneyTec is an online trading community that promotes mature, intelligent & respectful discussion in a positive & safe environment for everyone.
Methods of Foreign Exchange Trading For Starters
If you want to get around some real foreign exchange trading for starters, knowing the trade methods themselves is your best bet.
Foreign currency trading is not just a mere gesture of giving out currencies as the other party needs it. Methods are necessary to control the success of the business flow. There are different types of transaction processes which you can use according to your level of comfort.
1. Spot Currency Trading - This accounts for most of the exchanges happening in the foreign currency trading business. Spot currency trading usually involves two currency traders. What happens here is that the buyer ends up calling the seller. But at the beginning of the transaction, the buyer will not yet reveal his intention to purchase any currencies offered by the seller. The seller will proceed to entertain the inquiries of the buyer and in the process informs the currency rates. Should the buyer feel comfortable with the said rates, both parties may reach a decision to transact business with each other.
2. Forward Trading - This method involves a more long term investment. The essence of forward trading is that the agreement to make the trade is finalized days or even years before the actual day of exchange. So in here, both parties (the buyer and the seller) would agree to exchange their currencies for a specified date in the future regardless of the rates that their currencies may have by then.
This type of trading is often done between big companies. It also has two different types:* Swap - This is the most common type of forward trading. In here, both the buyer and the seller agree to make currency exchanges for a specified period of time. Then their roles will eventually swap after the said period of initial exchange.* Future - This is the forward trading used by most big companies. In future trading, a contract is drafted for the exchange with emphasis on the maturity rates.
3. Option Trading - This type of method is perhaps a flexible tool considered in our foreign exchange trading for starters. This is because option trading is the extended version of forward trading. Forward trading sort of binds involved parties to make the specified transaction. But with option trading, the involved parties only obtain the rights to buy the currency at the agreed upon date or during the duration that lapses. In here, the strike price is what's crucial as this is the rate agreed upon in terms of buying and selling.Although these methods of foreign exchange trading for starters may be promising, it is still important to note that all of them come with their own particular risks. After all, foreign currency trading is a volatile and dynamic type of business.
These methods come with their own brand of advantages and disadvantages so it is imperative that when you use them, you fully understand their capacity first. Currency trading is a very fluid business and these methods may also provide different risks for different transactions.
Foreign currency trading is not just a mere gesture of giving out currencies as the other party needs it. Methods are necessary to control the success of the business flow. There are different types of transaction processes which you can use according to your level of comfort.
1. Spot Currency Trading - This accounts for most of the exchanges happening in the foreign currency trading business. Spot currency trading usually involves two currency traders. What happens here is that the buyer ends up calling the seller. But at the beginning of the transaction, the buyer will not yet reveal his intention to purchase any currencies offered by the seller. The seller will proceed to entertain the inquiries of the buyer and in the process informs the currency rates. Should the buyer feel comfortable with the said rates, both parties may reach a decision to transact business with each other.
2. Forward Trading - This method involves a more long term investment. The essence of forward trading is that the agreement to make the trade is finalized days or even years before the actual day of exchange. So in here, both parties (the buyer and the seller) would agree to exchange their currencies for a specified date in the future regardless of the rates that their currencies may have by then.
This type of trading is often done between big companies. It also has two different types:* Swap - This is the most common type of forward trading. In here, both the buyer and the seller agree to make currency exchanges for a specified period of time. Then their roles will eventually swap after the said period of initial exchange.* Future - This is the forward trading used by most big companies. In future trading, a contract is drafted for the exchange with emphasis on the maturity rates.
3. Option Trading - This type of method is perhaps a flexible tool considered in our foreign exchange trading for starters. This is because option trading is the extended version of forward trading. Forward trading sort of binds involved parties to make the specified transaction. But with option trading, the involved parties only obtain the rights to buy the currency at the agreed upon date or during the duration that lapses. In here, the strike price is what's crucial as this is the rate agreed upon in terms of buying and selling.Although these methods of foreign exchange trading for starters may be promising, it is still important to note that all of them come with their own particular risks. After all, foreign currency trading is a volatile and dynamic type of business.
These methods come with their own brand of advantages and disadvantages so it is imperative that when you use them, you fully understand their capacity first. Currency trading is a very fluid business and these methods may also provide different risks for different transactions.
Generally Right Vs. Precisely Wrong
Written by BKTraderFX
As traders we all spend an inordinate amount of time obsessing about our trade entries. We shop brokers to make sure that we get the lowest spread possible. We put on limit orders to assure ourselves of not paying a tenth of a pip more than we intend to. And, we become livid when we top tick or bottom tick an entry watching price move against us the moment we put on a trade.
In the end all this worry is an incredible waste of time and energy.
As anyone who has traded for a while will tell you, success in trading depends far more on exits rather than on entries. Don't get me wrong, I am in no way proposing that entries should be random. The single most important aspect of any trade is proper selection - which K is reminding me as I write this, is entry in its more primal form.
True that, but what I am talking about has more to do with our endless obsession on the right PRICE rather than the right TRADE. Ultimately it is always much better to be generally right rather than precisely wrong. The EUR/GBP long which we put on a few weeks ago was a perfect example of this dynamic at play. No sooner had I hit the buy button then the pair slipped 10 points against us. However in the grand scheme of things this mistake was minuscule at worst. We went on to bank 75 points of profit and the pair went on for another 300 point run after that.
Clearly getting the trade right, rather than the price right is much more important to our long term success as traders. No matter how much we want to engineer a perfect solution, trading at its core will always be a sloppy, sentiment driven, imprecise enterprise. All we can do is get the probabilities on our side. For more examples of sloppy entries but relatively disciplined exits lets take a look at my daytrading this week
As traders we all spend an inordinate amount of time obsessing about our trade entries. We shop brokers to make sure that we get the lowest spread possible. We put on limit orders to assure ourselves of not paying a tenth of a pip more than we intend to. And, we become livid when we top tick or bottom tick an entry watching price move against us the moment we put on a trade.
In the end all this worry is an incredible waste of time and energy.
As anyone who has traded for a while will tell you, success in trading depends far more on exits rather than on entries. Don't get me wrong, I am in no way proposing that entries should be random. The single most important aspect of any trade is proper selection - which K is reminding me as I write this, is entry in its more primal form.
True that, but what I am talking about has more to do with our endless obsession on the right PRICE rather than the right TRADE. Ultimately it is always much better to be generally right rather than precisely wrong. The EUR/GBP long which we put on a few weeks ago was a perfect example of this dynamic at play. No sooner had I hit the buy button then the pair slipped 10 points against us. However in the grand scheme of things this mistake was minuscule at worst. We went on to bank 75 points of profit and the pair went on for another 300 point run after that.
Clearly getting the trade right, rather than the price right is much more important to our long term success as traders. No matter how much we want to engineer a perfect solution, trading at its core will always be a sloppy, sentiment driven, imprecise enterprise. All we can do is get the probabilities on our side. For more examples of sloppy entries but relatively disciplined exits lets take a look at my daytrading this week
Trade the break-out, trade the bounce, or wait for a perfect signal
Written by TheLFB-Forex.com
Trading the bounce from a recent price reversal that is hitting major support, will more times than not be more reliable than trading the break-outs to new highs. Contrarian trading the bounce tends to create more trades you are already in as the new break-out occurs at the other end; you are then selling as others are looking to buy the new breakout. No point trying to plow a new field when we can follow the lines that we just saw set, the task is so much easier when we are retracing moves that recently happened, the resistance is lighter.
Look for a move back to a main support area (previous session low, main pivot point area, daily Simple Moving Average etc), wait for the market to show that the price has held, look for confirmation from other cross pairs that are moving in the same direction as your proposed trade, and get in before the Perfect Signal has formed. The art of contrarian trading is to not over-leverage the positions, and look to be buying the overall direction of the daily chart trend, after a pull-back rather than as a new break-out.
This leads on to looking for Perfect Signals;
how many trades set up that when the Perfect Signal comes, (everything aligns, trade gets taken), they suddenly reverse the moment that you get in? By waiting for too much confirmation or not having a plan in place that allows for disciplined Contrarian Trading a Perfect Signal to enter will most times fail. It has become Perfect by having already moved from a Contrarian bounce off a major price point.
Contrarian Trading;
taking bounces off Trend-lines, Pivot Point lines, SMA's, whatever they are that can be justified at a major Price Point, but it is harder to do, needs more discipline, and has far more fear attached to it for new traders than just waiting for the Perfect Signal. However, if it is properly planned and taught it is the easiest way to trade because it is following the overall trend. The 4 Hour and 60 Minute charts are key, Pivot Point lines help dramatically.
The Perfect Signal then becomes to a Contrarian Trader their signal to exit, along with the other Pro traders. Hence the reasons for the reversal just after those looking for the perfect signal have jumped in.
It is Trading with the overall Trend, but only after a pull-back to a pre-determined price point. Trend, discipline, plan, and open mind; Contrarian Trading.
Written by TheLFB Trade Team, © 2007-2008 LFB Services, LLC. All rights reserved. http://www.TheLFB-Forex.com
Trading the bounce from a recent price reversal that is hitting major support, will more times than not be more reliable than trading the break-outs to new highs. Contrarian trading the bounce tends to create more trades you are already in as the new break-out occurs at the other end; you are then selling as others are looking to buy the new breakout. No point trying to plow a new field when we can follow the lines that we just saw set, the task is so much easier when we are retracing moves that recently happened, the resistance is lighter.
Look for a move back to a main support area (previous session low, main pivot point area, daily Simple Moving Average etc), wait for the market to show that the price has held, look for confirmation from other cross pairs that are moving in the same direction as your proposed trade, and get in before the Perfect Signal has formed. The art of contrarian trading is to not over-leverage the positions, and look to be buying the overall direction of the daily chart trend, after a pull-back rather than as a new break-out.
This leads on to looking for Perfect Signals;
how many trades set up that when the Perfect Signal comes, (everything aligns, trade gets taken), they suddenly reverse the moment that you get in? By waiting for too much confirmation or not having a plan in place that allows for disciplined Contrarian Trading a Perfect Signal to enter will most times fail. It has become Perfect by having already moved from a Contrarian bounce off a major price point.
Contrarian Trading;
taking bounces off Trend-lines, Pivot Point lines, SMA's, whatever they are that can be justified at a major Price Point, but it is harder to do, needs more discipline, and has far more fear attached to it for new traders than just waiting for the Perfect Signal. However, if it is properly planned and taught it is the easiest way to trade because it is following the overall trend. The 4 Hour and 60 Minute charts are key, Pivot Point lines help dramatically.
The Perfect Signal then becomes to a Contrarian Trader their signal to exit, along with the other Pro traders. Hence the reasons for the reversal just after those looking for the perfect signal have jumped in.
It is Trading with the overall Trend, but only after a pull-back to a pre-determined price point. Trend, discipline, plan, and open mind; Contrarian Trading.
Written by TheLFB Trade Team, © 2007-2008 LFB Services, LLC. All rights reserved. http://www.TheLFB-Forex.com
Top 10 Mistakes Traders Make
Achieving success in futures trading requires avoiding numerous pitfalls as much, or more, than it does seeking out and executing winning trades. In fact, most professional traders will tell you that it's not any specific trading methodologies that make traders successful, but instead it's the overall rules to which those traders strictly adhere that keep them "in the game" long enough to achieve success.
Following are 10 of the more prevalent mistakes I believe traders make in futures trading. This list is in no particular order of importance.
1. Failure to have a trading plan in place before a trade is executed. A trader with no specific plan of action in place upon entry into a futures trade does not know, among other things, when or where he or she will exit the trade, or about how much money may be made or lost. Traders with no pre-determined trading plan are flying by the seat of their pants, and that's usually a recipe for a "crash and burn."
2. Inadequate trading assets or improper money management. It does not take a fortune to trade futures markets with success. Traders with less than $5,000 in their trading accounts can and do trade futures successfully. And, traders with $50,000 or more in their trading accounts can and do lose it all in a heartbeat. Part of trading success boils down to proper money management and not gunning for those highly risky "home-run" type trades that involve too much trading capital at one time.
3. Expectations that are too high, too soon. Beginning futures traders that expect to quit their "day job" and make a good living trading futures in their first few years of trading are usually disappointed. You don't become a successful doctor or lawyer or business owner in the first couple years of the practice. It takes hard work and perseverance to achieve success in any field of endeavor--and trading futures is no different. Futures trading is not the easy, "get-rich-quick" scheme that a few unsavory characters make it out to be.
4. Failure to use protective stops. Using protective buy stops or sell stops upon entering a trade provide a trader with a good idea of about how much money he or she is risking on that particular trade, should it turn out to be a loser. Protective stops are a good money-management tool, but are not perfect. There are no perfect money-management tools in futures trading.
5. Lack of "patience" and "discipline." While these two virtues are over-worked and very often mentioned when determining what unsuccessful traders lack, not many will argue with their merits. Indeed. Don't trade just for the sake of trading or just because you haven't traded for a while. Let those very good trading "set-ups" come to you, and then act upon them in a prudent way. The market will do what the market wants to do--and nobody can force the market's hand.
6. Trading against the trend--or trying to pick tops and bottoms in markets. It's human nature to want to buy low and sell high (or sell high and buy low for short-side traders). Unfortunately, that's not at all a proven means of making profits in futures trading. Top pickers and bottom-pickers usually are trading against the trend, which is a major mistake.
7. Letting losing positions ride too long. Most successful traders will not sit on a losing position very long at all. They'll set a tight protective stop, and if it's hit they'll take their losses (usually minimal) and then move on to the next potential trading set up. Traders who sit on a losing trade, "hoping" that the market will soon turn around in their favor, are usually doomed.
8. "Over-trading." Trading too many markets at one time is a mistake--especially if you are racking up losses. If trading losses are piling up, it's time to cut back on trading, even though there is the temptation to make more trades to recover the recently lost trading assets. It takes keen focus and concentration to be a successful futures trader. Having "too many irons in the fire" at one time is a mistake.
9. Failure to accept complete responsibility for your own actions. When you have a losing trade or are in a losing streak, don't blame your broker or someone else. You are the one who is responsible for your own success or failure in trading. You make the trading decisions. If you feel you are not in firm control of your own trading, then why do you feel that way? You should make immediate changes that put you in firm control of your own trading destiny.
10. Not getting a bigger-picture perspective on a market. One can look at a daily bar chart and get a shorter-term perspective on a market trend. But a look at the longer-term weekly or monthly chart for that same market can reveal a completely different perspective.
It is prudent to examine longer-term charts, for that bigger-picture perspective, when contemplating a trade.
Jim WyckoffTradingEducation.com
Following are 10 of the more prevalent mistakes I believe traders make in futures trading. This list is in no particular order of importance.
1. Failure to have a trading plan in place before a trade is executed. A trader with no specific plan of action in place upon entry into a futures trade does not know, among other things, when or where he or she will exit the trade, or about how much money may be made or lost. Traders with no pre-determined trading plan are flying by the seat of their pants, and that's usually a recipe for a "crash and burn."
2. Inadequate trading assets or improper money management. It does not take a fortune to trade futures markets with success. Traders with less than $5,000 in their trading accounts can and do trade futures successfully. And, traders with $50,000 or more in their trading accounts can and do lose it all in a heartbeat. Part of trading success boils down to proper money management and not gunning for those highly risky "home-run" type trades that involve too much trading capital at one time.
3. Expectations that are too high, too soon. Beginning futures traders that expect to quit their "day job" and make a good living trading futures in their first few years of trading are usually disappointed. You don't become a successful doctor or lawyer or business owner in the first couple years of the practice. It takes hard work and perseverance to achieve success in any field of endeavor--and trading futures is no different. Futures trading is not the easy, "get-rich-quick" scheme that a few unsavory characters make it out to be.
4. Failure to use protective stops. Using protective buy stops or sell stops upon entering a trade provide a trader with a good idea of about how much money he or she is risking on that particular trade, should it turn out to be a loser. Protective stops are a good money-management tool, but are not perfect. There are no perfect money-management tools in futures trading.
5. Lack of "patience" and "discipline." While these two virtues are over-worked and very often mentioned when determining what unsuccessful traders lack, not many will argue with their merits. Indeed. Don't trade just for the sake of trading or just because you haven't traded for a while. Let those very good trading "set-ups" come to you, and then act upon them in a prudent way. The market will do what the market wants to do--and nobody can force the market's hand.
6. Trading against the trend--or trying to pick tops and bottoms in markets. It's human nature to want to buy low and sell high (or sell high and buy low for short-side traders). Unfortunately, that's not at all a proven means of making profits in futures trading. Top pickers and bottom-pickers usually are trading against the trend, which is a major mistake.
7. Letting losing positions ride too long. Most successful traders will not sit on a losing position very long at all. They'll set a tight protective stop, and if it's hit they'll take their losses (usually minimal) and then move on to the next potential trading set up. Traders who sit on a losing trade, "hoping" that the market will soon turn around in their favor, are usually doomed.
8. "Over-trading." Trading too many markets at one time is a mistake--especially if you are racking up losses. If trading losses are piling up, it's time to cut back on trading, even though there is the temptation to make more trades to recover the recently lost trading assets. It takes keen focus and concentration to be a successful futures trader. Having "too many irons in the fire" at one time is a mistake.
9. Failure to accept complete responsibility for your own actions. When you have a losing trade or are in a losing streak, don't blame your broker or someone else. You are the one who is responsible for your own success or failure in trading. You make the trading decisions. If you feel you are not in firm control of your own trading, then why do you feel that way? You should make immediate changes that put you in firm control of your own trading destiny.
10. Not getting a bigger-picture perspective on a market. One can look at a daily bar chart and get a shorter-term perspective on a market trend. But a look at the longer-term weekly or monthly chart for that same market can reveal a completely different perspective.
It is prudent to examine longer-term charts, for that bigger-picture perspective, when contemplating a trade.
Jim WyckoffTradingEducation.com
Attention Traders: Making a Trading Checklist
A lot of email has come in from readers asking me how to improve upon "pulling the trigger" to enter a trade. How many traders out there have ever pondered a potential trade for so long that once they actually got ready to execute it, they then got cold feet due to concern they had missed the move?
Some traders are reluctant to put on a position because they are torn between what they perceive as conflicting market factors. Here's a typical quote from such a trader: "The moving averages are positive, the market is trending higher, but the RSI shows the market as being way overbought. What should I do?"
A "Trading Checklist" of prioritized criteria not only will help you decide when to execute a trade, but will also help you identify potential winning trades. You'd be surprised how a visual checklist can resolve uncertainty in your mind.
What kind of stuff should a trader put on a Trading Checklist? That depends on the individual trader. Each trader should have his or her own set of criteria that helps determine a market to trade and the direction to trade it--including when to get in.
(As an aside, I like to compare my trading criteria to a bunch of tools in a toolbox. The more tools I have at my disposal, the better. Also, there are different tools for different tasks. However, there are some basic tools that I think are more important than the others and that are a must for the toolbox.
In trading terms, the more you know about chart patterns, technical indicators, fundamental factors, etc., the more tools you will have in your "trading toolbox" and at your disposal when trading the markets.)
Back to the checklist:
You'll want to put your most important trading tools on the checklist, and in order of importance.
At the top of my Trading Checklist is: "Are daily, weekly and monthly bar charts in agreement?" A very important position- trading tenet for me is that shorter-term and longer-term charts must agree on the trend of the market. If the daily and weekly charts are bullish, but the monthly is bearish, there's a good chance I'll pass on the trading opportunity.
So if my very first (and most important) objective on my Trading Checklist is not met, then I really don't need to go any farther down the list. I'll look for another trading opportunity.
However, if the last item (least important) on your Trading Checklist does not meet your objective, but the big majority of the other objectives on your list are met, then you may make the trade anyway. It's entirely possible that all of your trading tools on the list may not give you the proper signal to trade the market, but it's still a good trading opportunity.
Every trader should have at least a few trading "tools" that help determine a trading opportunity. Listing those tools on paper, in order of importance, and then examining that list when deciding each trade should make easier the sometimes difficult task of "pulling the trigger."
Jim WyckoffTradingEducation.com
Some traders are reluctant to put on a position because they are torn between what they perceive as conflicting market factors. Here's a typical quote from such a trader: "The moving averages are positive, the market is trending higher, but the RSI shows the market as being way overbought. What should I do?"
A "Trading Checklist" of prioritized criteria not only will help you decide when to execute a trade, but will also help you identify potential winning trades. You'd be surprised how a visual checklist can resolve uncertainty in your mind.
What kind of stuff should a trader put on a Trading Checklist? That depends on the individual trader. Each trader should have his or her own set of criteria that helps determine a market to trade and the direction to trade it--including when to get in.
(As an aside, I like to compare my trading criteria to a bunch of tools in a toolbox. The more tools I have at my disposal, the better. Also, there are different tools for different tasks. However, there are some basic tools that I think are more important than the others and that are a must for the toolbox.
In trading terms, the more you know about chart patterns, technical indicators, fundamental factors, etc., the more tools you will have in your "trading toolbox" and at your disposal when trading the markets.)
Back to the checklist:
You'll want to put your most important trading tools on the checklist, and in order of importance.
At the top of my Trading Checklist is: "Are daily, weekly and monthly bar charts in agreement?" A very important position- trading tenet for me is that shorter-term and longer-term charts must agree on the trend of the market. If the daily and weekly charts are bullish, but the monthly is bearish, there's a good chance I'll pass on the trading opportunity.
So if my very first (and most important) objective on my Trading Checklist is not met, then I really don't need to go any farther down the list. I'll look for another trading opportunity.
However, if the last item (least important) on your Trading Checklist does not meet your objective, but the big majority of the other objectives on your list are met, then you may make the trade anyway. It's entirely possible that all of your trading tools on the list may not give you the proper signal to trade the market, but it's still a good trading opportunity.
Every trader should have at least a few trading "tools" that help determine a trading opportunity. Listing those tools on paper, in order of importance, and then examining that list when deciding each trade should make easier the sometimes difficult task of "pulling the trigger."
Jim WyckoffTradingEducation.com
Why should I learn Forex currency trading?
Why should I learn Forex currency trading
By reaching to our website, I think you are already aware that Forex trading is a good way to make money at home. More over, I bet you knew someone, or would have heard of someone, who's already making tons of good money in FX trading.
But what you wouldn't know is that 7 out of 10 traders keep losing money in Forex market! That's right, 70% of individual FX traders keep losing their hard-earned money in the market; while the rest of the 30% work freely at home and earn millions annually)
Wonder what differs between the losing 70% and the winning 30%?
Forex trading skills and the trading system! If you want to work less than 20 hours a day at home, if you want to make millions by trading freely at home, if you want to have financial freedom by trading Forex; you better LEARN Forex trading before you start trading Forex. Forex market is definitely not a
game for newbie and you need to brush up your skills be
fore getting your hands wet
By reaching to our website, I think you are already aware that Forex trading is a good way to make money at home. More over, I bet you knew someone, or would have heard of someone, who's already making tons of good money in FX trading.
But what you wouldn't know is that 7 out of 10 traders keep losing money in Forex market! That's right, 70% of individual FX traders keep losing their hard-earned money in the market; while the rest of the 30% work freely at home and earn millions annually)
Wonder what differs between the losing 70% and the winning 30%?
Forex trading skills and the trading system! If you want to work less than 20 hours a day at home, if you want to make millions by trading freely at home, if you want to have financial freedom by trading Forex; you better LEARN Forex trading before you start trading Forex. Forex market is definitely not a
game for newbie and you need to brush up your skills be
fore getting your hands wet
The Forex market
The Forex market (which is sometimes referred to as the FX market and for which the full title is The Foreign Exchange Market) was established as we know it today in 1971 following the demise of fixed currency exchanges. Forex currency trading is conducted around the clock, 5 days a week, and daily currency trades are worth in the region of $1.9 trillion US dollars. This means that the Forex the largest market in the world and puts the major stock markets very firmly into second place.
A world-wide market established to facilitate the buying and selling of currency, the Forex market involves large organizations, such as central governments, commercial companies and international commercial banks as well as smaller players such as brokerage houses and individual brokers.
There is no set location for the market (although there are major trading centers around the world in a number of cities such as London, Frankfurt, New York and Tokyo) but it is essentially an 'over-the-counter' market with the vast majority of trading being conducted by telephone and on the internet.
The exchange of currencies is a central element in supporting global trade and, as the major currencies such as the US dollar (USD), the British pound (GBP), the Euro (EUR), the Japanes yen (JPY) and others move against each other and the foreign currency exchange rate for any given pair of currencies changes, there is the opportunity to make money from currency exchanges.
The major players in the market take advantage of this by buying and selling in deals which often run into many millions of dollars, but the smaller players are also extremely active and often trade in deals of as low as one hundred thousand dollars. And, by trading on the back on the smaller players, individuals can get into the market with a lot less than that!
The fact that even small players can join this market means that, as long as you are prepared to take the time to understand the currency markets and to learn the skills of Forex trading, then, with a little bit of capital to invest, it is possible to enjoy an excellent income from online currency trading.
Despite the fact that you cannot trade on your own and will have to use the services of a Forex broker, you certainly don't need a fortune and many Forex brokers will now allow you to open an online Forex mini account with as little as $250.
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The Forex market is a technical market and it does takes a while to come to grips with the basic principles underlying the currency markets, to develop the necessary skills in the use of some of the 'tools of the trade' (like technical and fundamental analysis tools) and to learn Forex currency trading online.
Despite this, you do not have to be an expert in the currency markets to profit from them. As long as you take the time to learn foreign exchange currency trading and put in a bit of effort it is quite easy to gain enough of an understanding to begin making money through Foreign trading online.
Foreign currency trading provides an excellent opportunity for the small investor to make money but learning to trade Forex is essential before heading out into the market.
Through a large and growing collection of articles covering everything from the history of foreign currency trading to fundamental and technical analysis, psychology and strategies, tools and software we aim to help you learn to day trade Forex
quickly and easily.
A world-wide market established to facilitate the buying and selling of currency, the Forex market involves large organizations, such as central governments, commercial companies and international commercial banks as well as smaller players such as brokerage houses and individual brokers.
There is no set location for the market (although there are major trading centers around the world in a number of cities such as London, Frankfurt, New York and Tokyo) but it is essentially an 'over-the-counter' market with the vast majority of trading being conducted by telephone and on the internet.
The exchange of currencies is a central element in supporting global trade and, as the major currencies such as the US dollar (USD), the British pound (GBP), the Euro (EUR), the Japanes yen (JPY) and others move against each other and the foreign currency exchange rate for any given pair of currencies changes, there is the opportunity to make money from currency exchanges.
The major players in the market take advantage of this by buying and selling in deals which often run into many millions of dollars, but the smaller players are also extremely active and often trade in deals of as low as one hundred thousand dollars. And, by trading on the back on the smaller players, individuals can get into the market with a lot less than that!
The fact that even small players can join this market means that, as long as you are prepared to take the time to understand the currency markets and to learn the skills of Forex trading, then, with a little bit of capital to invest, it is possible to enjoy an excellent income from online currency trading.
Despite the fact that you cannot trade on your own and will have to use the services of a Forex broker, you certainly don't need a fortune and many Forex brokers will now allow you to open an online Forex mini account with as little as $250.
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The Forex market is a technical market and it does takes a while to come to grips with the basic principles underlying the currency markets, to develop the necessary skills in the use of some of the 'tools of the trade' (like technical and fundamental analysis tools) and to learn Forex currency trading online.
Despite this, you do not have to be an expert in the currency markets to profit from them. As long as you take the time to learn foreign exchange currency trading and put in a bit of effort it is quite easy to gain enough of an understanding to begin making money through Foreign trading online.
Foreign currency trading provides an excellent opportunity for the small investor to make money but learning to trade Forex is essential before heading out into the market.
Through a large and growing collection of articles covering everything from the history of foreign currency trading to fundamental and technical analysis, psychology and strategies, tools and software we aim to help you learn to day trade Forex
quickly and easily.
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