Saturday, March 30, 2013

Forex Software Dramatically Reduces Risk

Why pick the stock market? Is everyone's memory so short that 1929 has been forgotten? Do these innocents want to get taken to the cleaners, playing an expert's game?

No. Times have changed here and the word is getting around. Millions of people had their first investment experience with war bonds, and found it good. The bonds were issued in denominations small enough for people to handle easily. There was no fluctuation in their price, so you could put them away and forget them. They grew in value steadily, and could be cashed without fuss or trouble. If these conditions could be duplicated in the stock market, investment might make very good sense.

Of course, in the market, price fluctuation was inevitable. Common stock could never have the stability of a Government obligation like the E-bond. Still, it had become a very respectable piece of merchandise. Workers learned that their union pension funds included large blocks of sound common stocks. And frequently the company they worked for offered them an opportunity to acquire its stock through one sort of monthly purchase plan or another. Various state commissions took a fresh look and decided that common stocks were safe enough to be incorporated in widows' and orphans' trust funds, traditionally the most conservative type of portfolio.

And, on top of everything else, common stocks in the rising post war market were paying off well. Interest on savings accounts was no more than 3?3? per cent. Stocks were paying at least 4, often 5, and in some instances 6 and 7. When they paid less than that, it was usually because their price had appreciated, which reduced the yield but pleasantly increased value. Nothing wrong with that either. There were nuts and raisins in the cake, as well: splits, stock dividends, extra cash returns.

Furthermore, the market was coming within the reach of the person of modest means. By monthly payments to a mu?tual fund one could acquire a pro rata share of a massive stock portfolio whose individual items would have been far too expensive to buy. And in 1954, the New York Stock Exchange pioneered the revolutionary Monthly Investment Plan (See Chapter 11) which permits purchase of fractions of shares of stock, regardless of price, on a regular, cumulative basis. Brokers awakened to the great untapped army of potential investors, smilingly invited the small account, and

spent thousands of man hours educating anyone who would listen in the essentials of common-stock investment.

But all of this would have had no effect if people had not begun to trust the market. This trust was a long time coming. The exchanges actually had been laboring mightily since the 1929 debacle to put their house in order and to persuade people of the honesty and sobriety of their operation.

But few listened except the professionals, the sophisticated traders, and the institutional buyers who didn't need to be told. Still, the effort went on. Federal and state regulations went into effect; floor procedures were tightened by the exchanges themselves to outlaw manipulation and sharp practice by insiders. By the time the postwar horde descended, the market had been swept clean and was ready to do business.

The people had cash. The merchandise was attractive. And the market place was open, aboveboard, and bright with sunlight. By this sequence, it appears, some 12,500,000 Americans have become investors.

This could be mirrored in Forex, where it is possible to obtain free software that can help predict future price movements with great accuracy, reducing risks for all investors.

Forex Seminars In Todays Market

Trading global currencies in a market that reaches a volume of nearly $2.5 trillion every day can?t be done successfully without a thorough understanding of the market. The Forex, with a 24-hour-a-day transaction period 46 times the size of all other futures markets combined, has potential for massive profitability.

The sheer volume of the market is favorable above all others due to its high liquidity, flexibility, and cost-effective transaction amounts. The average investor can trade alongside international bankers from the privacy of his or her personal computer.

In a world where currency trading courses abound, finding the right Forex seminars to fully understand the market are of utmost importance. The right course is the perfect solution for individual traders or institutions set on learning keys to Forex success. The only way to achieve financial stability and profitability on the market is through proper education, and Forex seminars can be the answer.

Forex seminars can be utilized on a variety of levels, from online Webinars to weekend on-site workshops or simple Podcasts. In some cases, a Forex professional trader can even visit institutions interested in a better understanding of the market their traders are investing in.

A comprehensive, educational workshop involves a few basic components: First, a course must teach the basics of the Forex market, from its history to its major growth in recent years. Without a basic understanding of the market investors are trading in, financial success is far from inevitable.

Even the most simple questions must be addressed: How does the Forex market work? What currencies should I trade? What technical indicators should I pay attention to? How do I identify trends? What type of entry and exit strategy should I follow?

For investors new to the market and for those who need a better understanding of where their money is going, the basics, the advantages of trading currencies and the use of leverage to magnify gains and losses is vital.

Second, a mastery of an individual?s online Forex trading platform must be met. For day traders and swing traders, a vague understanding of their platform is the beginning of extensive trading mistakes. The right Forex seminars can hold the keys to this oft-occurring trading error.

Another typical error for new traders is investing in the market without an identified system. The right Forex trading system helps traders understand when buying and selling is necessary and profitable. Trading based solely on feelings or emotions is an easy way to lose money in this industry.

Finally, the ability to understand and analyze Forex charts will always lead to greater profitability. Such charts illustrate everything happening in the market at any specified time. Thus, Forex seminars that apply a technical analysis of analyzing charts is a necessity.

Training Webinars, seminars and workshops should always be done by professional or veteran Forex investors. A one-time-only workshop will be of little help if the student can?t ask questions, refer back to the course at later dates or continue learning from further courses. Upon completion of a proper course, the opening of practice accounts or individual accounts with the investor?s own funds is the next step. With the right training, success on the Forex isn?t far away.

Friday, March 29, 2013

Forex Scam Or Legitimate Company? Six Ways You Can Decide

If you?re looking at trading in the foreign currency exchange market (commonly known as the forex) and you have the classic Pink Floyd tune ?Money? playing in your head, complete with the ?cha-ching? sound, you might want to read this article first. With all of the forex brokers out there, ready and willing to take your cash to help you make your first trade, it may be a little intimidating finding a broker that can help your profits grow and not walk away with your cash! To that end, as part of your forex training, here are a few tips that will help you in selecting a broker that you can trust and not end up with a proverbial ?bucket shop.?

1.?There is no risk!? Watch out for a company that claims that there is little or no risk in trading the commodities market. Any broker that is legitimate should tell you that there is ALWAYS risk! True, you can mitigate that risk with stop losses, sound trading techniques, and equity management, but there is always a risk involved in trading. If it sounds too good to be true, it usually is too good to be true!

2.?It?s in the background.? Check out the company?s background. If a company refuses to give you background information on their company or information about their customer?s experiences, beware! You may also want to check with the National Futures Association for any history of fines or deceptive trade practices by the company in question. Another excellent source of information is the Chicago Board of Trade. It?s there that you can check to see if the company is a registered ?futures commission merchant? (or FCM for short). Companies registered with these two organizations are more likely to be legitimate than those that are not. In addition, there is a lot of information that can be found with these two organizations that can help you further your forex training.

3.?Millions are offered for the taking!? If a company says that you will make fantastic amounts of money in a short time, run for cover! Like anything else in life, to be a good forex trader takes time, effort, and LOTS of study. There is no magic bullet that will have you makings thousands in just a week (unless you?re the scammer!).

4.?Be careful sending cash!? Use caution when sending cash over the internet. Make sure the entity you are sending money to has satisfied your background check and that they are registered to business in a country with strong legal remedies in case a problem arises. Be especially wary about sending money to countries that have reputations for high levels of corruption and bribery.

5.?Margins, Margins!? Use caution when trading on the margin. Depending on the broker, it may make you responsible for more money than you actually deposited! A key part of your forex training should teach you how margins work and your broker?s approach to them before you trade margins.

6.?Which bank?? Watch out if a company states that they are safe to work with because they trade in the ?interbank market.? To date, the interbank market is largely unregulated and is usually traded by central banks, multinational corporations and other big time players. A potential scam by a fraudulent currency trading firm may boast of good prices because they deal with the ?interbank market.? It is most often the case that only extremely large concerns deal with the interbank, and again, it is not regulated and is a loose conglomerate large business and governmental organizations and institutions.

Now that you have some of this forex training under your belt, there are a few other ways to evaluate a broker. They are: websites that compare brokerages, forex training courses, word of mouth, and finally, checking in with an experienced retail forex trader who has good trading strategies and deals with his or her broker on a regular basis. Doing all of these things can help you make a great choice in selecting a forex broker which, of course, will help you keep that great tune ?Money? playing in your head.

Thursday, March 28, 2013

Forex Profits by buying and selling at the same time?

This article is one of a series which looks at the advantages and weaknesses of trading using the hedged, grid trading system to trade volatile markets.

We will look at how money can be made by breaking a number of trading truths or principles; * cut your losses and let your profit run and * there is nothing to gained by entering into buy and sell deals at the same time.

The hedged grid trading system uses the principle that one should be able to cash in at a gain no matter which way the market moves. No stops are therefore required at all. The only way this is logically possible is that one would have a buy and sell active at the same time. Most traders will say that that is trading suicide but let?s take some to look at this more closely.

Let?s say that a trader enters the market with a buy and sell active when a currency is at a level of say 100. The price then moves to 200. The buy will then be positive by 100 and the sell will be negative by 100. At this point we start breaking trading rules. We cash in our positive buy and the gain of 100 goes to our account. The sell is now carrying a loss of -100.

The grid system requires one to make sure that cash in on any movement in the market. To do this one would again enter into a buy and a sell transaction. Now, for convenience, let?s assume that the price moves back to level 100.

The second sell has now gone positive by 100 and the second buy is carrying a loss of -100. According to the rules one would cash the sell in and another 100 will be added to your account. That brings the total cashed in at this point to 200.

Now the first sell that remained active has moved from level 200 where it was -100 to level 100 where it is now breaking even.

The 4 transactions added together now magically show a gain:- 1st buy cashed in +100, 2nd sell cashed in +100, 1st sell now breaking even and the 2nd buy is -100. This gives an overall a gain of 100 in total. We can liquidate all the transactions and have some champagne.

There are many, many other market movements that turn this strange ?buy and sell at the same time? activity into gains. These will be covered in future articles and are covered in a free grid trading course which is available at the expert-4x.com website for those traders whose curiosity has been aroused.

There will be more on the hedged grid trading articles to be issued regularly. Please watch this site.

Wednesday, March 27, 2013

Forex Price Charts

Word Count: 332

Summary: Technical analysts use different technical studies and interpret them to predict market direction or to generate buy and sell signals. By using charts in Forex technical analysis we can predict price movements.

Keywords: Forex, currency trading, forex courses, technical analysis, forex videos, finance

There are two kinds of Forex traders- the traders who use fundamental analysis and the traders who use technical analysis. I prefer the technical analysis, which ignores fundamental factors. Technical analysis is applied to the price action of the market. By using technical analysis traders can make short-term forecasts, which are very difficult with fundamental analysis, more suitable to making long-term forecasts.

Technical analysts use different technical studies and interpret them to predict market direction or to generate buy and sell signals. By using charts in Forex technical analysis we can predict price movements.

You might think that reading the charts is very difficult, but you must know that FOREX charts, as opposed to charts used for day trading stocks, are easier to interpret and use. The Forex charts are reflection of a country?s economy, which is slower moving and is more stable compared to the future and daily drama of company reports, Wall Street analysts and shareholder demands.

Currency charts have also the tendency to develop strong trends, and although the Forex market is volatile, it is more predictable than other markets. The good thing is that you have only a few currencies to analyze, not tens of thousands of stocks.

The complimentary charting software provided by good brokers is sufficient for predicting currencies pair?s movements, but you must learn to read the charts and you must learn how to interpret your technical studies.

As I mentioned the technical analysis in the Forex market is easier than in the other markets, but it still might seem a difficult task for new traders. There are a lot of different resources which are helpful in learning technical analysis. The easiest way is watching videos which explain it, and although the Forex video courses are usually expensive, you can find some cheaper video courses, too.

If you want to learn more about Forex and if you want to get access to high quality FREE Forex Videos go to: http://www.currencytradingmethod.com

Tuesday, March 26, 2013

Forex Pivot Point: What It Is And What It Does

Forex Pivot points are used by Forex investors and market traders to figure out the entrance and exit points for the Forex trading day. The trading activity for the previous day determines where these pivot points are set. This technique is generally used after you have determined the direction that the trend is going. Pivot points are used alongside some of the other technical analysis tools including MACD crossover, candlestick patterns, and moving average crossovers, to try and maximize investment and minimize loss by predicting the fluctuations of the market. Forex uses pivot points extremely well because of the fact that the majority of the currency pairs generally vary between these levels.

Pivot points are used by Forex market investors and traders to identify any important support and resistance levels. The pivot point and the associated support and resistance levels are specific areas at which the price movement direction can possibly change. Short term traders are the ones who find pivot points the most useful because they are looking to take advantage of any small price variations. However, both range bound traders and breakout traders also use pivot points in the Forex market. Reversal points are identified by pivot points to benefit range bound traders, and this helps them to minimize their risks. Pivot points are used by breakout traders to recognize any key levels which may need to be broken so the move will be classified as a real deal breakout.

To calculate the pivot points and the associated support and resistance levels, traders use the last open, high, low, and close, from the last trading session. The New York closing time of four in the afternoon is used as the close of the previous trading day by most Forex traders, because the Forex market is a twenty four hour a day market. The specific calculation for the pivot point is Pivot Point(PP) = (High + Low + Close) / 3.

Pivot points are an excellent technical analysis tool for Forex market traders and investors because of their simplicity. These pivot points, along with the associated support and resistance levels, are calculated by traders by the previous trading day's session specifics. The formula to calculate pivot points is simple and easy to use, and by utilizing pivot points along with other technical analysis tools, including moving average crossovers and candlestick patters, Forex market traders can predict specific areas of price movement in the market. This allows traders to minimize their risk while maximizing their profits.

Copyright ? 2007 Joel Teo. All rights reserved.

Monday, March 25, 2013

Forex News Trading Alchemy from Forex Signals to Consistent Profits

Forex currency trading has been a hot subject lately. Imagine a business with no employees, no customers, and no inventory; with possibility of reaping great profits every single month, week, or day. It is only you, lap-top computer, and your favorite sofa? Attractive? Sure, but the secret ingredient of success is missing in the formula.

It is estimated that only 5% of retail forex traders have consistently profitable currency trading system. It is usually based on deep understanding of economy (fundamental analysis), awareness of the patterns of market reaction on specific economic events (technical analysis), and proprietary set of "tools and instruments". Clearly, you want to jump in to get your feet wet in forex trading, but what if your toolbox is almost empty. One way to start is to follow professional trader guidance. It does not break your wallet to subscribe to quality forex trading signals (for instance, I offer them free), then test their consistency on your training account and finally apply these alerts for live trades.

I call this "forex news trading alchemy", loosely referring to the clandestine process of transmuting substances of no or little value into pure gold. Economy news that people watch on TV just to have something to chat with their friends later apparently aren't of great value. The very same news disturb currency market, providing possibilities to make money on the market movements and therefore become remarkably tangible. Training and experience is required to interpret news into the trading terms and the final product of such interpretation is called Forex Trading Alert or Signal.

High-quality FX trading signals provide final price projection based on the deviation between prior number, actual number and possible revision combined with support and resistance levels. Timing of the indicator is of crucial importance here as well as the same deviation may have completely different impact on the market. It is advisable to eventually get familiar with these forex technical terms; however generally you can follow the simplified summary explaining optimal trading strategy for this particular news event including entry and exit points and stop loss limit.

Following news trading signals is a good way to reap some profits, but more importantly it is extremely beneficial for the general forex trading education. The trader is able to observe elements of fundamental and technical analysis comprised into the signal that pertain to the certain economic situation. Live trade execution teaches various trading strategies besides educators agree that practice is by far the best way to increase the comprehension level and retain the knowledge. After trade follow up with step-by-step scrutiny is simply invaluable.

Remember, your goal is to establish your very own perfect business by making it into the five percent of successful forex traders. If you read this article, that means you already have computer with internet access. The only thing between you and your dream is that illusive secret ingredient of proper currency trading education. Try the alchemy of forex news trading to access that covert element.

Saturday, March 23, 2013

Forex Mini Accounts, Powerful Leverage from the Start

Leverage is essentially the amount used in a trade compared with the security deposit needed by the broker, for that trade. Forex offers the most leverage of any form of investing, which for most brokers, is 100:1, so if you put in $1000, the broker will make that $100 000 when you are trading.

So by investing $1000, you are able to control $100 000 worth of currency on the market. This is what allows traders to pull in such impressive incomes and is also the downfall of less experienced traders if you don?t manage your equity properly and use stop losses. I?m going to introduce you to mini account trading where you can get started and lose a number of times without losing any hair in the process. Regular, full-sized accounts require $5000 to $10000 to really start implementing an effective equity management plan, that is, you can only lose a few times before you?re out of the game if you don?t have that much money and as we all know, by trading intelligently, you can maximize the odds in your favour.

For someone who likes to stay completely out of debt, Forex is the best investment option; you can only lose what?s in your trading account and nothing more. In fact, if your open positions are risking more than you have in your account to pay for them, your brokerage software will automatically close them until you can afford the ?at risk? amount. Futures markets are prone to sudden and dramatic moves against which you can?t protect yourself and you?re liable for any resulting deficit in your account. You can lose more than what you have in your account and potentially everything you own!

Mini Account Benefits

For someone wanting to maximize profits and a few thousand to spend, a mini account may sound retarding (maybe that?s just me) but it actually offers more benefits than a regular account if you don?t have a lazy $5000 US to spend. The major benefit is that you win US $1 per pip instead of 8 or 10, and a $50 account will move about $10 000 at a time instead of a $1000 moving $100 000. Your leverage is 200:1 with a mini account and you still get all of the benefits of the latest trading software, charts, resources and tools without the pressure to make a win on every trade. Just remember by using an equity management plan, even if you lose 7 times in a row, you can still come out on top by minimizing loss and maximizing profit. Good traders know that the odds are stacked in their favour.

An account size of $2000 will get you well on your way with a mini account, considering you generally want to risk no more than 5% maximum on any given trade. Preferred ratio is 2% of your margin account.

You also can trade more than 1 lot at a time, to increase your returns as you grow in confidence. So as your account grow, so does your trading capacity and hence 2% of your account may be much more than the risk involved in a trade. There?s no maximum trade volume on the mini accounts.

Trading a mini account keeps you in the game without focusing too much on profit and loss. Trader may resist on closing out an unsuccessful trade in the hope that it will turn around or lock in profits too early rather than allowing profits to increase. With a mini account you can develop discipline needed to be successful and the confidence without anxiety or distractions associated with large profit and loss swings.

Friday, March 22, 2013

Forex Market Vs. Stock Market ? Which Is Right For You?

You have probably traded stocks before, but have you ever traded currencies? Currency trading goes back thousands of years and was the first market used by nations, traders and merchants to facilitate the open market process. The trading of national currencies has its own market called the Forex, which is an abbreviation for The Foreign Currency Exchange Market. The Forex Market allows individuals, companies, banks, governments and nations to take advantage of currency fluctuations in the world market to profit from judging the correct direction a currency moves against another currency. Currencies are traded as currency pairs.

The Stock Market:

The stock market has been one of the more traditional ways to make a profit from an investment. You often hear how the stock market can make a person more money from an investment than just about any other market. While you can make double digit profits from the stock market, and it usually produces more of a return than CD?s or bonds, it is not always the easiest market to participate in. With tens of thousands of companies to choose from when investing, it can be downright daunting. Of course you can stick with mutual funds or index funds and make low double digit gains; it is still difficult to perfect a system that can make more than 10 to 15% on a yearly basis. The stock market can be complicated to say the least. Not only do you have to really do your homework, but you never know when a company will decide to go bankrupt or fold altogether. Penny stocks are notorious for losing people money. The large cap stocks are decidedly better, but we all know what happens when a rogue CEO gets in trouble? the company?s stock tanks. There is a lot of risk and uncertainty when trying to play individual stocks while going for 20 to 30% gains in short periods of time.

The Forex Market:

The Forex Market is a lot simpler and tame compared to the stock market. However, it can take more self education than the stock market since there aren?t as many TV and radio shows dedicated to Forex or FX Trading. Since the Forex Market is an over the counter (OTC) market, by definition it is an open, worldwide market with no central trading floor. If it were a market that had one central trading floor, it would be unable to be open 24 hours a day for traders. By definition and not by obligation, the Forex Market is open to everyone and it is open 24 hours a day, five days a week.

Forex Trading takes place with currency pairs, which are two currencies that are traded in relation to each other. Some currency pairs are more popular than others, so the need to learn all of them, and there aren?t that many, is not absolutely necessary. The key to trading Forex Markets is to develop a good strategy and stick to it. When you get to know a currency pair and your research points you to a certain position that you feel will make you a profit, you can then work that position all day and night if you wish. This allows for potentially much greater profits than you can find in the stock market. If you enjoy doing your own research and not simply following what everyone else does, then the Forex Market may be the perfect investment tool for you.

Forex Market History - Be A Part Of It

The Foreign Currency Exchange (Forex) Market enables investors to make trades between major world currencies in order to make a profit. The Forex is the epitome of all traded markets since it is the least complicated and allows for trading 24 hours a day five days a week. It is hard to beat this combination when the goal is to develop a good system, stick to it and make a profit. The simplicity of the Forex Market as compared to the thousands of possible investments in other markets, combined with a person?s ability to trade nonstop almost every day of the week, makes the Forex an ever increasing and desirable trading partner.

Pharaohs to the Middle Ages:

Foreign Exchange Markets have been alive and well since the Middle Ages. And even long before that, various currencies changed hands between regions and countries since money first originated during the time of the Pharaohs. It appears the Babylonians were the first to use paper bills and receipts which facilitated the exchange of currencies between third parties.

U.S. Centennial to World War I:

Between 1876 and World War I, Foreign Exchange Markets were very stable. This stability was created because everyone was on the Gold Exchange Standard. Currencies were now supported by gold prices! Unfortunately, the gold standard had one major problem. When countries would become prosperous, thus allowing their imports to increase, their gold reserves would run down. These were the same gold reserves used to support the country?s currency. One thing led to another and before long the country would go through a recession. Then its products would look attractive to other countries and the gold would start coming back in to fill the coffers. There was just too much boom and bust under the gold exchange standard. Something had to change.

Great Depression to Early 70?s:

Shortly after World War I, in the 1930?s, Foreign Exchange Markets became overly speculative, increasing volatility tenfold. Things were out of control and something had to eventually change. From the early 30?s till the early 70?s the Forex Market went through many changes, which can still be seen today. In fact it wasn?t until 1973 that the modern Forex Market as we know it today started.

In 1944, after World War II was over, the major governments across the world came together in Bretton Woods, New Hampshire to agree on a way to move forward with Foreign Currency Exchange so each country?s economy could maintain and renew itself in an orderly fashion on a regular basis. The Bretton Woods Accord was established to mesh currencies and the International Monetary Fund (IMF) in order to stabilize the world?s economies. The accord fixed the major world currencies against the Dollar at a rate of USD 35 for each ounce of gold. The accord was also established to keep the world currencies from fleeing across countries and to decrease the speculative end of the market.

Up until World War II, the Great British Pound (GBP) was the currency by which most all other currencies were measured. When the British fell victim to German Nazi counterfeiting during WW II, thus devaluing the Great British Pound, the U.S. Dollar became the standard by which other currencies were valued. In fact, the destruction to Europe during World War II allowed the U.S Dollar, which had become a failed currency during The Great Depression, to rise from the ashes and become the dominant world currency.

The Bretton Woods Accord didn?t last a long time, but it lasted until 1971, long enough to accomplish its mission, which was to re-establish monetary consistency and stability to post war Europe and Japan.

Present Day:

Our present day Forex Market, as we know it, began in 1973 when currencies were allowed to become part of a free-floating system since none of the agreements or accords were then in force. In 1978, the free-floating arrangement was officially required of all major currencies. All major currencies move independently of one another in today?s world. They are no longer tied to a particular accord. This can lead to increased speculation with central banks occasionally intervening to get currencies back to desired levels. Basically it is supply and demand for currencies that is the driving force today in the Forex Market.

If you are considering becoming involved in the first market ever established for profiting from currency fluctuations, you may want to consider the Forex Market. It is tried and true and was the first. It is also less complicated and has more liquidity than any other market. This is important when you are trying to develop a trading strategy for maximizing your profits.

Thursday, March 21, 2013

Forex Legend: George Soros And The British Pound

Anyone who trades forex would have heard of George Soros, the man who traded against the Bank of England and won. This story has been retold many times and is now stuff of legend. But now in 2007 when GBPUSD is over the 2.000 level from September 1992 once again, it is time to recall this legendary forex event. Remember September 19, Black Wednesday in 92, the day when the Bank of England withdrew and stopped pumping money to keep the sterling pound strong.

Events leading up to Black Wednesday as it was called: BoE joined the European ERM (Exchange Rate Mechanism), the predecessor to the EURO). This is when all the currencies locked at a fixed price range with 6% leeway. If the price goes below or above this range, the Bank of England must intervene and make sure the prices stay in this range. It's easier to understand the event if it's read in the chart on http://www.forexplane.com.

When it joined, the economies of the UK vs. the rest of countries in the MRE were not in sync. The UK's Domestic Interest Rate was too low compared to the rest of the stronger nations like Germany and France, which was much higher. This disparity was causing the fixed price range to unbuckle. With Germany enjoying a fairly healthy economy and UK entering it's economic recession, speculators saw this fixed price range in disequilibrium, seeing the pound so high compared to the Deutsche Mark while it's inflation and interest rising, they shorted in droves.

BoE refused to lower interest rates due to inflationary fears and cannot allow the GBP to be devalued according to the ERM policy. The event leadig to the yellow shaded area showed that BoE buying the Sterling Pounds to keep it high.

But the final blow-off came as it gets closer to the resistance area, George Soros and other speculators shorted even heavier, around $10 billion. Finally on that day at resistance, BoE announced they will no longer be part of the ERM and will not intervene with the currency and will let it float freely. On that news, the hard drop in the Pound can be seen on the chart: http://news.forexplane.com/Articles/GeorgeSoros/tabid/101/Default.aspx.

The following months, he and his investors made one of the biggest and rarest winnings in Wall Street history. After this event, he was the man who "broke the Bank of England." By judging the facts, Soros was lucky that BoE caved in before his $10 billion and other speculators run out as BoE has a much deeper pocket than anyone individual. This has to be remembered. Had BoE decided to continue intervening past the resistance, who knows what may have happened but certainly speculators who continue to short would have been with extremely heavy losses.

Using fundamentals (macro economic views) can be advantageous in recognizing the imbalances in the currency pairs but it must be a long term trade and with a very big account to withstand the corrections and even the wrong timing of the entries.

Any opinions, news, research, analyses, prices, or other information contained on these articles are provided as general market information and does not constitute investment advice. Forexplane.com will not accept liability or any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.

Wednesday, March 20, 2013

Forex Learning To Read Charts And Make Your Profits Explode

The first step in technical analysis is to learn to read the charts. Here are a few basic lessons to guide your early attempts.

When first analyzing a currency pair, look for the prevailing trend. Start with the long-term charts (monthly, weekly, and daily), going back for several years. Because these charts contain a greater amount of data, they provide a clearer picture of just what the currency pair is doing than the short-term charts (hour, half-hour, 15-minutes, or 5-minutes). The extra data also makes what the indicators are telling you more reliable.

Identifying the trend is simple: just look at the chart and decide if the graph is going more up than down, or more down than up. Trends can be steep or shallow, years long or weeks short. Practice identifying them, and finding the points where they change direction. The longest-term trend is the strongest, which is another reason for looking at those charts first.

Even if you?re scalping or day trading and don?t intend to hold a position longer than an hour, you?ll do better by trading in the same direction as the prevailing trend. So take the time to identify it on at least the daily charts before you begin. There?s an old trader?s saying: ?The trend is your friend.? It?s not a lie.

Once you?ve identified the trend in the long-term charts, compare that with what you see in the short-term charts. You?ll find that there can be any number of intermediate-term and short-term trends within the path set by the prevailing trend. The graph will waver up and down but overall it will follow the path set by the longest-term trend.

Next, find the support and resistance levels, which are the ?floor? and ?ceiling? points on the graph, respectively. These are key points on the chart where the price repeatedly refuses to break through, or just peeks through then gives up the fight. The price will go just so high or so low, but no further; it reaches that point then changes direction. The more times that happens, the stronger the support and resistance are.

Draw a straight line, either in your mind or on the chart, passing through most of the support points. Then draw another passing through most of the resistance points. This gives you a picture of the path the currency pair?s trend is following, called a price channel, and it?s a simple but powerful tool to help determine how that path will continue.

When support and resistance are strong, the graph of the currency pair seems to bounce along sideways between those two lines like a pinball. When this happens, the currency pair is said to be range-bound. As this happens 80% of the time, many people simply trade within channels, although this technique doesn?t deliver any jackpot profits.

These lines don?t have to be level. Sometimes the currency pair is trending up or down, but still moving within that channel. However it?s slanted, you can still trade within that range.

When a currency pair breaks out of a price channel, sometimes it falls back into the channel, and sometimes it gains momentum and keeps moving. This last is called a momentum market, and it?s the other way to trade the range: set an entry order for the price to break out, either above or below the channel, then sit back and let it ride.

Congratulations?you now understand the most important elements of basic technical analysis!

Tuesday, March 19, 2013

Forex Leading Indicators

Forex Leading Indicators

Derived from the words "foreign exchange," Forex is the largest financial market in the world. A highly liquid, voluminous market based on no specific fixed exchange, the forex is traded through financial institutions, dealers, brokers, banks and, most recently, private individuals. An up-and-coming endeavor for the smaller, personal investor, the forex market has only recently become accessible to such traders. In the past, large, required deposits counted out the small investors. But with the advent of internet trading and growing competition within the market, this type of trading is easily accessible for the average investor. Innovations in technology (ie: Internet, 24-hour trading and a global economy) have made it easier than ever to monitor the market and trade when necessary, but without proper forex training and education, private investors run a dangerous road.

Forex trading indicators abound, aiding investors in their search for optimum trading times and investing opportunities. Countless amounts of time and energy can be spent studying the latest indicators for keys to success in the market.

The average true range indicator measures the volatility of a given forex trading market, where high values indicate that currency trading prices are changing a large amount during the day. Trading bands, such as Bollinger Bands, are among the most popular technical indicators on the market today. In essence, they are lines drawn at certain intervals around a central moving average. They vary in distance from the moving average, once again based on volatility. Another widely used indicator, the Commodity Channel Index, determines how far the current price has been from the average price. High values translate to several days with higher than average prices, and vice versa for low values. But other expert forex investor says indicators might not be the ultimate key to success trading on this market. These traders state that although indicators are the buzz word today new traders should keep in mind that if there was a way to figure out the market, there would be no market. In other words, instead of trying to solve the market, you should approach trading with the correct mindset. How can I get involved, survive and then ultimately take a profit? These traders also say that the ultimate trading indicator, is simply put: price. All other indicators should follow. Success can only be obtained on the forex through proper training, practice, implementation of knowledge learned and repeating those steps consistently, he concluded.

With correct training and implementation of correct indicators, trading the forex can be ideal for private investors on many levels. First, it is easy to exchange most currencies based on the enormity of the market. Second, volatility of the market leads to large profits in a very short time. While this is a dangerous investment without a thorough understanding of the market, proper forex training will put any investor in the profit margin. Third, 24-hour-a-day trading, five days a week allows constant access to the forex via telephone, Internet or a broker.

Monday, March 18, 2013

Forex Is Like A Casino ? Playing Too Much Can Be Painful!

Forex Is Like A Casino ? Playing Too Much Can Be Painful!

Between 5 p.m. EST Sunday and 4 p.m. EST Friday, there are millions of Forex traders around the world trying to make a profit by predicting the future movement of currency exchange rates. With nearly 1.8 trillion dollars changing hands each and every day, the Forex is the largest and most fluid market in the world. Traded 24-hours a day and with investors having instant access to price changes via an Internet station, it is literally possible to watch one?s fortunes ebb and flow?one pip at a time!

A pip is equal to the smallest price increment that any currency can make. For the U.S. dollar and most major currencies, that amounts to 0.0001 (0.01 for the Japanese Yen). While it seems near impossible to make any money when dealing with such small numbers, the standard transaction unit on the Forex is $100,000 and is called a lot. Thus, the movement of just a few pips in either direction can turn into big profits or big losses?real fast!

In truth, playing the Forex is much safer than heading into a casino because the odds are not automatically stacked against you?but you can still lose your shirt if you over trade. Just like professional gamblers will tell you that playing against the casinos is a losing proposition?professional and successful Forex traders know that trading too often is simply stacking the odds against them.

For whatever reason, most of us are simply not going to risk $100,000 of our own money on something as volatile as the Forex. This is why the margin is such an important factor when thinking about buying and selling positions. Typically, an investor would need to put up $1,000 of their own money to buy a lot, or 1/100 of the total. Leveraging a position may be a practical necessity but it also means that the average investor is more at risk when it comes to price fluctuations. The more leveraged the position, the greater it will be affected by pip movements?up or down.

Making a profit in the Forex market boils down to knowing when to enter and exit a position?period. Investors place stops on orders to help limit losses and they need to rely on those stops to prevent them from losing too much?or bailing too soon! Investors who track the market every minute of the day and constantly monitor their positions are not only more likely to go crazy?they are also more likely to bail when the price starts to dip. So long as you have stops in place and are sticking with your investing strategy?be patient! At most, check the market at the close of each day and just hold to your strategy until the charts indicate otherwise.

It is difficult?almost impossible?not to worry about your investments so the natural impulse is to monitor them closely. However, the time to do your homework and put in the time is before acquiring a position?not after. Backtesting will help you find the best currency pairs for your investment tastes. Once you have the stops in place, check the charts and market once a day and let the investment ride. Losses are part of the game and your stops should protect you from losing more than you are comfortable with. Forex can make you a lot of money with moderate risk but it will become like a casino and the odds will turn against you if you play too often!

Sunday, March 17, 2013

Forex?how Can I Put The Odds In My Favor?

How does an investor set themselves up for success when thinking about a market as large and volatile as the Forex? Also known as the Foreign Exchange market, the Forex allows investors to speculate on the movement of currency exchange rates between different countries. It is impossible to accurately predict the movements of the market all the time but many of the top investors maintain that there are ways to increase your odds of anticipating market fluctuations and capitalizing from them. Here are just a few ways to enhance your chances for success with Forex technical trading:

1. Only trade at end of day 2. Avoid over-trading 3. Do not read FX reports 4. Backtest, backtest, backtest!

All investors are tempted to believe that they must constantly be ?in the know? or risk getting caught out of position. Thus, these dedicated investors may sit in front of a computer screen all day and monitor their investments for fluctuations. For those living in North America, the end of the business day is 5 p.m. EST or 2 p.m. on the West coast and this really is the best time to consider trading?and note the word consider!

At the end of the business day, there are two factors in your favor: First, traffic tends to be down so there are fewer chances for price fluctuations. Second, if you wait until the end of the business day, then you can look at information flowing in from the East to help guide your decisions.

Over-trading is basically like going back and back to a casino thinking your odds are actually improving?because they are not! Over-trading increases your chances of jumping into a position too late and getting burned or out of position too early and missing out on profits. Put stops in place that can safeguard you from losing more than you can afford?and then let them alone and relax!

Reading what someone else says about the outlook on the market is going to do one thing: cause you to question your strategy. None of us are going to get it right every time and no one can predict the future so reading those reports can only harm, not help, once you have purchased a position. If you are going to read those reports, do so before buying in?after that, just leave them be.

Investors buy and sell positions based upon their theory of the market and where a particular currency pair is headed. While you should not change your stops while already having a position, you can certainly continue to test your theory by backtesting. People capitalize in the Forex market by identifying trends and buying a position on that trend and riding it for as long as possible. Continuous backtesting helps investors hone their theory and better identify trends quickly and take advantage of them for profit.

The Forex market may be the largest and most volatile?but it also holds the greatest potential for profit. The few tips listed above will help ensure your success in Forex trading and they will greatly enhance your odds of success. Be sure to review them carefully!

Saturday, March 16, 2013

Forex Home Trader ? Facts You Need To Know About Trading Forex

Forex Home Trader ? Facts You Need To Know About Trading Forex

Forex trading (foreign exchange) become the latest trading activity for beginner traders. Some of them see this as an opportunity to earn a living by trading from home as a Forex Home Trader. The foreign exchange market also known as the ?Forex? is the trading between different currencies of different countries. This very liquid market only became available online for trading, to the individual private trader in last couple of years.

Every currency has it own three-letter symbol that will represent that country of the currency that is being traded. For example, the Japanese Jen is the JPY and the United Stated dollar is USD. So you will note that these currencies are always quoted as USD/JPN

These trades are facilitated through a Forex broker, with whom you will sign up, in order to get your own online trading account. It is strongly advised that you first sign up for a ?Demo? trading account where you can trade currencies in a simulated environment ? so none of your own funds will be used in ?real time?. This type of account is excellent for developing your own trading strategy and for you to get the feel for the markets; it also prepares you for trading your own funds in a ?Live? account. Warning! The degree of discomfort in trading in ?Demo? mode varies greatly from ?Live? trading as there is quite a difference between trading ?cyber money? and trading your own funds ?Real time?. Sign up for various ?Demo? accounts at various brokers and test drive their online trading software or trading platforms ? make sure that you start trading with the software you are most comfortable with, it is only in you own interest!

Be very aware of the following: You can lose some or all your funds in trading the Forex market! This market is extremely fast and some times very volatile! ? ensure that you complete at least a comprehensive Forex trading course and try to enlist the help of a seasoned Forex trader that you can use as a mentor, before starting to trade actively in the market. To lose a lot of money in a trade when the market goes against you is not easy, you must be mentally strong to absorb you losses and have the drive to learn out of your mistakes!

Ensure that the broker or Forex Company which you decide to trade through is fully authorized to deal in Forex. In the United States, numerous rigid new laws and regulations regarding the trade of Forex for US citizens are being implemented. If you are searching the internet for a Forex broker, ensure that you read the ?fine print? on their brochure, proposal or website ? make sure that your company or broker is legal.

Before entering any trade make sure that you did your homework, did you do Fundamental analysis of the markets ? take a look at your economic calendar, what are the other countries doing? Will there be announcements that will influence the currency you are going to trade? Did you decide where your entry and exit point will be? Do not forget to set your stop loss! Otherwise your trade can be disastrous for you if the market turns against you and you don?t get out of your trade in time.

Remember that by preparing yourself well before entering any trade in Forex, can only benefit your own pocket, so be informed and enjoy Forex Trading!

Friday, March 15, 2013

Forex Forecasts - You Never Know What You Will Benefit From

Forex Forecasts - You Never Know What You Will Benefit From

Possible risks and profits to be made can always be predicted if traders would only have more accurate forex forecast to base their trade and decisions upon. Forex forecasts are only one way of keeping up with the volatile forex market. Success will depend the most in knowing what and who will affect the rate changes.

The forex market has already been through a lot of ups and downs that even fortune tellers would have difficulty guessing what will be its next movement. Making a forex forecast can be helpful but can also be too risky. Besides, doing it is not that easy also.

In forex forecasts, nothing specific is given. The traders are not made to hope high and expect more. If you have seen or heard a forex forecast, be sure to check on some projected rate fluctuations whenever and wherever possible so you would have an idea it the forex forecast shows a likely possibility to be true or not.

Staying in touch and up-to-date with the latest news and happenings around the globe and information about the forex currency can help traders determine when is the best time to buy, sell and stay away from a particular market. All these things are important in the performance of your trade. Take note of some forex forecasts if only to serve as guide whenever you are in a situation that you find hard to make a decision upon.

How can one benefit from forex forecasts?

There are some companies that are offering forex forecast information as a subscription that traders can avail of. For those who do not have enough patience and browse for information in the internet, this forex forecast information would be their alternative.

No one said that there is a 100% accuracy in these forex forecasts. And no one told traders that they should also believe them 100%. If you want to have more degree of accuracy in the forex forecast, you could always find one with the most accurate percentage rate.

You could look for something or someone that offers free information or a trail period for you to test the degree of their ability to give accurate forecast about the forex market. There are also some sites that send out forex forecast to emails that you may want to try out just so you will choice to choose from if you decide to avail the services of some of them.

Relying only on one forex forecast is not the thing to do. You should at least have some more choices in the process of making an investment decision. Try to get more forex forecast from sources that are rampant online and offline so you would not stick to just one.

The thing to remember is that your investments are your future and you have already worked too hard to just let it all down the drain. Do not put the future of your forex trade into the hands of only person. Try to get several forex forecast and choose the best one that you think has great ounces of accuracy up their sleeves.

Before putting the future of your investments into the hands of those offering forex forecasts, make it a point to check out the latest that is happening in the forex trading and see if the trend is likely to go with what the predictions are telling about.

If you think more about it, people doing forex forecasts would not be out there giving bad forecasts because their reputation is the one at stake there. They surely would not want to ruin the image they have by giving false predictions about things that they know people will listen to, would they?

Like they say, traders should not believe all that is written in forex forecasts. Some but not all. There are still decisions to be made that will be based upon the trader itself and no amount or accuracy of forex forecasts can make that decision for them.

Just to be on the right side of things, always make sure and do your own research that will back up the forex forecast you actually think is going to work. You never know what it will lead to?

Wednesday, March 13, 2013

Forex For The Future

Forex For The Future

A non-geographical, existential market, the foreign exchange market exists wherever one currency is traded for another. Far and above the largest market in the world, the $2 billion traded every day includes trading between large banks, individual investors, corporations, governments and various other institutions.

Established in 1971, Forex trading has only recently become an individually traded market. Until the present time, only major institutions could trade on this market. Retail traders are currently a small, but constantly growing, part of the Forex.

Ten years ago, the Wall Street Journal estimated the daily trading volume in the forex market to be in excess of $1 trillion. Today that figure has grown to exceed $1.8 trillion a day. Based on the Bretton Woods Agreement of 1945 aimed to stabilize international currencies and prevent money fleeing across nations, the U.S. dollar became fixed at a rate of $35 per ounce of gold.

Thus, the gold standard was formed and Forex trading became a possibility. But only in 1971, when the Bretton Woods Agreement was abandoned, was the Forex market established. By 1973, major currencies became free to the push of supply and demand. The power of speculators came to be.

With the advent of technological innovations like computers in the 1980?s, money was soon able to be traded across time zones. Within minutes, like never before, massive amounts of currency could be exchanged. Today, London holds the world?s largest international financial center and the major site for Forex trading.

The interbank market is beneficial for both the major commercial turnovers and large amounts of purely speculative trading that takes place on an everyday basis. Some large banks trade billions of dollars daily. While some of that trading is on behalf of the bank?s customers, much is for the bank?s own account. Until recently, brokers on the market did most of the business of trading for a small fee, but now individual investor?s can jump in on their own.

The benefits of individual investors gaining hands-on access to Forex trading really came to be when the large inter-bank units began to offer small traders the opportunity to buy or sell smaller units (or lots) on their own.

At present, the Forex market is appealing because of its massive trading volume, extreme liquidity, the number and variety of traders in the market, long trading hours, factors that affect the currency exchange rates and the geographical dispersion of the market.

Between April 2005 and April 2006, Forex trading increase by 38 percent and has more than doubled since 2001. This can be attributed to the increasing importance of foreign currency exchange as an asset and an increase in fund management assets. Also, the vast array of execution venues, like Internet trading platforms, has also made it easier for retail traders to trade.

In May 2006, a European exchange survey company found the top 10 investors in the Forex market were mostly American banks such as Bank of American and JP Morgan Chase, as well as international investors like Deutsch Bank and Barclays Capital.

Trading on the foreign exchange market is up and coming as an investment opportunity and solution for people, companies and institutions worldwide.

Forex For Beginners ? Making Money From Currency Trading

FOREX stands for Foreign Exchange and it stems from the international financial market. That is, the Forex market, the place where currencies of different countries are bought and sold in a similar manner to the buying and selling of share market in the ASX, Australian Stock Exchange.

Forex market started in the 1970?s and that is when floating of currencies and free exchange rates began. Like share prices, it is the people who traded in the Forex market that affects the prices of the currencies traded in accordance to the law of supply and demand. Hence, if the market force dictates, e.g. if the US Federal Reserve decides to raise interest rates to curb inflation while Australia Reserve Bank have the interest rate on hold, that should stimulate a change in exchange rate. One should therefore see interest rate effect with the US $ worth more in value than AUD when this happens.

The amount of money traded daily in the Forex market is uniquely enormous. The rate of exchange makes Forex the single most liquid financial market with currency traded amounting from 1 to 1.5 trillion US dollars per day. Owing to this enormity, it is not possible for the Forex market to be manipulated externally. Hence, no single trader or even any financial institution trading in it has the wealth to influence the price of any currency in its favour.

The Forex is so fluid and so much exchange at such a fast pace that it is just impossible for anyone to affect the market of any one major currency. The sheer liquidity of the Forex market with so many exchange taking place, enable the traders to open and close position within seconds. This is because there are always willing buyers and sellers available at any one time since the collective exchange of the various world Forex centers is considered open for 24 hours as it spans across different time zone.

Forex is naturally unique compared to the stock market which is normally associated with long term investments. In currency trade, a minute change in prices of a currency generate situation that permits investors to apply all sorts of strategies to their advantage. However, there are also long term hedge investors involved in Forex and also short term investors that make use of credit lines to seek large gains over a short period.

HOW FOREX WORKS

Unlike NYSE (New York Stock Exchange) or ASX (Australian Stock Exchange), there is no central marketplace for Forex. Instead the exchange takes place over the counter 5 days a week on a 24 hour basis, via satellite, among major financial centers in London, Paris, Tokyo, New York, Sydney, Hong Kong, Frankfurt, Singapore and Zurich. Dealers, including online ones, around the globe are always available to quote any major currency.

MARGINAL TRADING

Marginal trading is like using a credit card and it is like borrowing money to trade currency. This encourages investors to take additional risk by opening a bigger trading position with less out-of-the pocket money and relying more on borrowed capital that is provided by the brokering company.

Marginal trading in the Forex market is traded in lots of which 1 lot is about 100,000 of unit currency. The margin requires to hold that $100,000 position is 1.0% of $100,000 and that is equivalent to a personal capital outlay of $1000 (i.e. taken from 100,000 x 0.01) while the balance of $99,000 is covered by the broker.

If the currency traded increases in value you make the difference when you close your trading position. You capital outlay and profit gained minus any transaction cost from the trade are credited into your margin account.

INVESTMENT STRATEGIES: TECHNICAL & FUNDAMENTAL ANALYSIS

Of course, one cannot just trade without any knowledge of the currency market. To be successful in Forex trading one has to be analytical and this is what all experts do. They do what we call Technical and Fundamental Analysis.

Technical analysis is associated with studying data gathered on all the fluctuations of the various currency prices over time. From the data, chart patterns are formed and movement of the currency prices can be observed for trading decisions to be made.

The behaviour patterns of each currency prices are the reflection of all factors in the market place such as an event, overbought and oversold situation, interest rates, etc. Most of these patterns in chart forms are instantly provided by the brokerage firm you trade from.

Fundamental analysis is an event based analysis like political situation, rumours, economy, interest rate setting by central or reserve bank of the country concern, news on tax policy, GDP, country?s economic performance, political unrest, natural disaster, employment or unemployment figure announcement, etc. Value of a currency can also be influenced by expectation, anticipations and perceptions of the participants in Forex trading, i.e. it could be driven by sentiment of these Forex participants.

MAKE MONEY WITH CURRENCY ON FOREX

To profit out of Forext tading one need sheer diligence and trading experience and getting familiar with Technical and Fundamental analysis to place once trade. Anyone who participates in it should have equal opportunity since it is one market that is so liquid and rapid moving that it is impossible to be influenced by anyone person or fund management.

Tuesday, March 12, 2013

Forex Expert Advisors--Living Up To The Hype?

Forex Expert Advisors--Living Up To The Hype?

As the Forex market gets more and more attention with the deficit of the dollar looming, so are the Expert Advisors that drive the more powerful players of the Forex game.

Why do 90% of forex traders lose? Traders are humans and like all humans, we suffer from greed. Like all humans, in crucial moments (or market conditions) we lack confidence, we have fear of what might happen and most importantly, we are usually (90% of the time) - inconsistent.

Taking this into consideration, 90% of traders WILL LOSE MONEY IN FOREX. They will consistantly give away their money to the other 10%. This, together with the illusion of

becoming millionaires overnight trading some "guru's" trading system from an ebook, is what keeps the Forex market a great business for Forex brokers and the so called guru's.

An Expert Advisor is a "robot". Robots beat humans at chess and they beat humans at trading. An EA robot will watch the market for you, placing trades under certain

parameters (strategies), avoiding the fear, greed, lack of confidence and inconsistency which characterises most traders.

The Expert Advisor has a plan. It sticks to it no matter what, no matter how ugly or uncertain the market looks. It has no greed and will be running 24 hours a day for you.

Some quick highlights of the Kiss Trading System:

* Requires no technical indicators * Uses a "Set and Forget" strategy to free up your time * Makes only 1 trade per day at the same exact time * Requires only 3 minutes per day (or less) * Is fully automated with a metatrader Expert Advisor (EA) * No losing month for over one year * Averages +75 to +150 pips per month * Average returns of 5-25% per month

For more information on this topic visit www.ForexPips.net

Monday, March 11, 2013

Forex Education: You?ll Be Sorry If You Don?t

Forex Education:  You?ll Be Sorry If You Don?t

Forex educating is not something that anyone is smart enough to do without. Forex education, whether you are brand new to the currency markets or have been trading for years, should be ongoing. You?ll simply never know enough to stay ahead of the game, and should accept before you start that you?ll have to keep learning as long as you keep trading. It?s a small price to pay, after all, for the potential returns that the Forex market offers to its savvy players.

And the advent of both electronic trading and the Internet have taken Forex education out of the hands of the financial movers and shakers, and made digital stock and currency trading as accessible to the masses as online banking. Anyone with a personal computer, Internet access, and the ability to read can get a sound Forex education.

A Look Back

A hundred years ago, even though the currency trading market was far from new, it was stable. Speculation in currencies was unheard of, and news traveled slowly. Deteriorating economic conditions in one part of the globe did not have nearly the same catastrophic effect on worldwide markets as they sometimes have today, and the relative value of international currencies simply did not fluctuate on a daily basis.

The Forex Today

But with the introduction of the Euro, and its relationship to the US dollar, the Forex market saw explosive growth. As more and more people turned to currency trading as a part of their investment portfolios, Forex education became more and more essential.

Anyone who decides to begin trading currency without spending some time on Forex education is almost guaranteed a quick and bloody exit. There are so many aspects of Forex trading which should be at least understood, if not mastered, before an investor begins trading that those who fail to study them will soon be lunch for those who know what they are doing.

Learning to read currency charts and technical analysis, at the very least, will provide minimal Forex education, but very minimal. Getting into Forex trading without Forex education is akin to deciding to take a raft trip down the Amazon without a map of South America, and a compass. It?s a jungle out there.

Leverage

Both the enormous size and liquidity of the Forex market have attracted millions of players who think they can bet the trends, which are usually pronounced. Another almost irresistible enticement which the Forex trading offers is its huge leverage ratios; Forex brokers will allow their clients to be leveraged by as much a 100:1.

And with that enormous leverage ratio, or course, comes enormous risk. For those who have not taken the time to work on their Forex education and understand what risk management is all about, being so highly leveraged will find them on a roller coaster of profits and losses. By treating themselves to some Forex education, they would realize that even the best, most seasoned Forex traders take it on the chin from time to time. For more info see http://www.e-forextradingsystem.com/Articles/Forex_Online_Trading.php on Forex Online Trading.

The most important lesson in Forex education? Never play the Forex market with money that is not risk capital. That way, if you lose, you?ll live to fight another day.

Sunday, March 10, 2013

Forex E-Book Of Trading Strategies

Forex E-Book Of Trading Strategies

With Forex trading, you can be in charge of your finances. It has the reputation for being the largest market in the world, and the cost at the beginning is also low. This industry is tuned to several billions of dollars, and there is the opportunity to earn a lot of money by a few hours. All one needs to do this, is the determination and an Internet connection.

When it comes to Forex trades, one must keep growing with learning about methods to make more money. There are excellent Forex e-books that deal with trading strategies, and which are highly informative for the growth of an individual in this industry. There are several Forex trading strategies that are available in the e-book, which will take individuals to greater heights.

The e-book states several methods that can be followed, and not one of them has false claims. Each one has been proved, and the methods will allow you to maintain a consistent trading record. This e-book can be vouched for, because a professional team has taken effort into researching the best ways to optimize the trading strategies.

If you are the one who has lost money in this business, and needs professional help with what you want, there is no better place to look for plans, other than this Forex e-book. In any business, one needs determination and focus to succeed, and so it is with this one. The loss must not stop you from trying these strategies to get where you want to get.

With the help of this e-book, you will be able to understand when and how to enter the market, and also when you need to find exits. This has to be done at the time, when you think you are about to lose money. These Forex trading strategies have been coined in such a way, that a trader needs to spend only a few hours gaining access to success.

Not only is the e-book charted out with simple steps, it is also a moral boost for those who have lost money. It allows the trader to understand the market better. Once these strategies are understood, one can make sure that he is never going to lose money in this business again. Once you understand the methods, you will also know when you need to enter a trade.

This way, you will not be left out from the crowd.

Saturday, March 9, 2013

Forex Currency Trading System ? Choosing The Best System For You

Forex Currency Trading System ? Choosing The Best System For You

OK, you've decided that you want to trade on the Forex currency market. You've decided that you need a system to help you navigate your way through things and help you to make a profit. But how do you make sure that you choose the best Forex currency trading system for your needs?

Sure, you could rely on the sales pitch on the sites of the various software vendors. But you really need to do some more research. This is a big decision and choosing the wrong system could affect the profits you make from your currency dealings.

The sales site will give you a features list. That's a good start. Check through the features and see whether there's anything missing. Check them against the features shown on other sites ? that's when you will start to notice subtle differences in the various system offerings.

Next, see if you can get access to a demo version of the systems you are interested in. Some of the sites will ask for your email and other details before they will let you have access to a demonstration. That's OK ? there is legislation to protect you from being bombarded by emails forever.

Make sure that you will be undisturbed when you take your demo or tour of the system. This needs your full concentration!

Go through all the different things on offer. Decide whether you like the layout of the screen as well as the depth of information available. Maybe the system has different modes so that as you get more proficient, you can turn on extra details and features that would only confuse you when you are just starting out.

Do this for each of the different systems that you are interested in.

Chances are, one system will stand out as being the one for you.

But don't open your wallet yet!

Go back to your favorite search engine and check what other people have said about the system. You're looking for negatives and positives. Ideally, you should be able to find reviews on some forum sites where you can go back over time. You may get a sense of how well supported the system is and how often it is updated. When there are bugs, how fast do they get fixed?

Once you've got all this information, you should be ready to take the plunge and start making cash on the Forex markets.

Friday, March 8, 2013

Forex Currency Trading Online: 5 Steps To Avoid The Common Tragedy

Just like you, every single person that enters Forex currency trading online does so with the sincere intention of making money. Every one, including you. There isn't a single one that intends to lose money, yet the statistic of 90% losing their money is very real.

This is a very sad tragedy that good people experience everyday. The problem isn't that people lack the intelligence or ability, nor is currency trading online impossible to master. It is that they skip steps in their development.

Forex currency trading online offers a very real and very achievable opportunity for those that will simply follow the proper steps to reach their goal of consistent profits and approach the matter in a sensible manner. There are several components to a trader?s development in becoming the confident trader that produces consistent profits.

Gaps in a trader?s education will have to be filled before the end-goal is achieved, just like price gaps as in the markets.

The primary reason that the statistic in currency trading online exists is because those that lose money don't focus on developing themselves and their Forex currency trading online business. They choose to focus almost exclusively on making money right now. Thus the gaps cause them to lose their money before they?ve filled their educational and developmental gaps.

Second-wave traders are people that have blown out their account, or come close enough to realize this, and subsequently take a more business-like and realistic approach to their currency trading online.

So that they can have better chances of success the second (or third) time around, they pay attention to the fact that they missed some steps and now consciously pursue them. They don't want to repeat the vicious cycle of regular and repeated large losses that they experienced as first-wave traders.

There are five steps to avoid the tragedy so commonly found in Forex currency trading online.

Step 1. Develop a thorough understanding of currency trading online. This means what the markets are really about, what drives them, how to read a price chart, how to properly plan trades, how to identify good setups, entries, exits, etc. The basics are essential to master.

Step 2. Seek out the mistakes made by others. There are over 39 different mistakes commonly made by traders. This means that there are numerous opportunities to lose money in currency trading online.

If you don?t make yourself aware of mistakes made by others, then that leaves you open to making them yourself ? and you'll pay the price when you make them. Learn from the mistakes of others and save both money and regret.

Step 3. You've heard that you should treat your trading like the business that it is. The problem is that if you haven't run a business before you may not know how to go about it. Any endeavor engaged on a regular basis for profit is a business. Even the government looks at it this way.

The more structured a business is, such as your currency trading online, and the more it includes sensible formalities such as reporting, the more consistent it will become. This is the end goal of most traders ? consistent profits ? so treating it as a business will surely help in achieving that goal. There are resources available on sites such as YouTube, so seek them out.

Step 4. In addition to having a system for selecting and placing trades, you should systemize what you do in your currency trading online. This goes right along with treating your trading as a business, but in more detail and from more of an operational perspective.

Systemizing what you do will bring repeatability and predictability to your activity, and this is desirable in trading as well.

Step 5. Manage your your emotions as they are often the cause of large losses and missed profits, even for veteran traders. It is not necessary to try to be a inhuman and ?turn off? your emotions.

By educating yourself on the psychology of trading to have an understanding of how your emotions play into your decision-making process and what factors affect your currency trading online, this will again help you achieve the goal of consistency.

Forex currency trading online presents a tremendous opportunity for people that will simply approach the endeavor from a business like and long term perspective. Most who enter currency trading online, do so very ignorant of what it takes and this is quite understandable, as it is something totally new to them.

Educate yourself and seek out the developmental resources to help you through these five steps to ensure that you give yourself the best chances of realizing what currency trading online has to offer. Make sure you give yourself a happy ending.

Thursday, March 7, 2013

Forex Currency Trading Explained

Forex Currency Trading Explained

FOREX MARKET HOURS At 7:00 pm Sunday, New York time, trading begins as markets open in Tokyo, Japan. Next, Singapore and Hong Kong open at 9:00 pm EST, followed by the European markets in Frankfurt (2:00 am), and then London (3:00 am). By 4:00 am, the European markets are in full swing, and Asia has concluded their trading day. The U.S. markets open first in New York around 8:00 am Monday, as Europe winds down. Australia will take over around 5:00 pm, and by 7:00 pm Tokyo is ready to re-open.

All times are quoted in Eastern Standard Time (New York).

FX or Forex, currency trading is the trading of one currency against another. In terms of trading volume, the currency exchange market is the world's largest market, with daily trading volumes in excess of $1.5 trillion US dollars. This is orders of magnitude larger than the bond or stock markets. The New York Stock Exchange, for example, has a daily trading volume of approximately $50 billion.

Currencies are traded for hedging and speculative purposes. Various market participants such as individuals, corporations, and institutions trade forex for one or both reasons.

Corporate treasurers, private individuals and investors have currency exposures during the the regular course of business. The FXTrade Platform is an ideal platform to hedge any such exposure. An investor, who has bought a European stock and expects the EUR exchange rate to decline, can hedge his currency exposure by selling the EUR against the USD.

Currency markets are ideally suited for speculative trading. The foreign exchange market has a daily volume in excess of 1.5 trillion USD, which is 50 times the size of the transaction volume of all the equity markets taken together. This makes the foreign exchange market, by far, the most liquid and efficient financial market of the world. Thanks to its efficiency, there is little or no slippage of market price for the execution of even large buy and sell orders. Traders are able to take advantage of intra-day volatility thanks to the low spreads and enter positions for short time periods, such as minutes and hours. Unlike equity trading, where restrictions limit a trader's ability to profit from a market down turn, there are no such constraints on currency trading. Currency traders can take advantage of both up and down trends thus increasing their profit potential.

The most commonly traded currencies are: USD, EUR, JPY, GBP, CHF, CAD and AUD.

The most commonly traded currency pair is EUR/USD.

Forex Symbol Guide Symbol Currency Pair Trading Terminology GBP/USD British Pound / US Dollar "Cable" EUR/USD Euro / US Dollar "Euro" USD/JPY US Dollar / Japanese Yen "Dollar Yen" USD/CHF US Dollar / Swiss Franc "Dollar Swiss", or "Swissy" USD/CAD US Dollar / Canadian Dollar "Dollar Canada" AUD/USD Australian Dollar / US Dollar "Aussie Dollar" EUR/GBP Euro / British Pound "Euro Sterling" EUR/JPY Euro / Japanese Yen "Euro Yen" EUR/CHF Euro / Swiss Franc "Euro Swiss" GBP/CHF British Pound / Swiss Franc "Sterling Swiss" GBP/JPY British Pound / Japanese Yen "Sterling Yen" CHF/JPY Swiss Franc / Japanese Yen "Swiss Yen" NZD/USD New Zealand Dollar / US Dollar "New Zealand Dollar" or "Kiwi" USD/ZAR US Dollar / South African Rand "Dollar Zar" or "South African Rand" GLD/USD Spot Gold "Gold" SLV/USD Spot Silver "Silver"

CURRENCY PAIRS All currencies are assigned an International Standards Organization (ISO) code abbreviation. In currency trading, these codes are often used to express which specific currencies make up a currency pair. For example, USD/JPY refers to two currencies: the US Dollar and the Japanese Yen.

SPOT FOREX Spot foreign exchange is always traded as one currency in relation to another. So a trader who believes that the dollar will rise in relation to the Euro, would sell EUR/USD. That is, sell Euros and buy US dollars. The following is guide for quoting conventions:

What does it mean to be "long" or "short" a currency? Being long means buying a currency. Being short means selling a currency. If a trader goes long USD/JPY, he or she buys US Dollars and sells Japanese Yen. Buying a currency is synonymous with taking a long position in that currency. A trader takes a long position in a currency if he or she believes it will appreciate in value. If a trader goes short USD/JPY, he or she sells US Dollars and buys Japanese Yen. Selling a currency is synonymous with shorting that currency. A trader would short a currency if he or she believes it will depreciate in value.

CURRENCY TRADING: BUYING AND SELLING CURRENCIES All Forex trades result in the buying of one currency and the selling of another (currency trading), simultaneously.

Buying ("going long") the currency pair implies buying the first, base currency and selling an equivalent amount of the second, quote currency (to pay for the base currency). It is not necessary to own the quote currency prior to selling, as it is sold short. A trader buys a currency pair if he/she believes the base currency will go up relative to the quote currency, or equivalently that the corresponding exchange rate will go up.

Selling ("going short") the currency pair implies selling the first, base currency, and buying the second, quote currency. A trader sells a currency pair if he/she believes the base currency will go down relative to the quote currency, or equivalently, that the quote currency will go up relative to the base currency.

An open trade or position is one in which a trader has either bought or sold one currency pair and has not sold or bought back an adequate amount of that currency pair to effectively close the trade. When a trader has an open trade or position, he/she stands to profit or lose from fluctuations in the price of that currency pair.

Forex is the backbone of all international capital transactions. Compared to the slim profit margins rendered in other areas of commercial banking, huge profits are generally produced in a matter of minutes form minor currency market movements. Some banks generate 60% of their profits from trading currency aggressively.

Trading volume has been growing at a rate of 25% per year since the mid-1980s and therefore it is not difficult to accept the notion that the currency market is one of the world fastest growing industries. What used to require days to accomplish in Europe or Asia now oly takes a few minutes. Needless to say, technology has changed everything and millions of Dollars are moved from one currency into another every second of every day by major banks through computers and for the average investor, with the touch of a computer key.

Foreign exchange is the backbone of all international capital transactions. Compared to the slim profit margins rendered in other areas of commercial banking, huge profits are generally produced in a matter of minutes from minor currency options market movements. Some banks generate up to 60% of their profits from trading currency aggressively.

Transactions in foreign currencies take place when one country's currency is purchased (exchanged) with another country's currency. The price agreed upon or negotiated for the currency purchased is referred to as the foreign exchange rate. Major commercial banks in the money market centers throughout the world are responsible for the majority of foreign currencies bought and sold.

Trading volume has been growing at a rate of 25% per year since the mid-1980s and therefore it is not difficult to accept the notion that the currency options is the world\'s fastest growing industry. What used to require days to accomplish in Europe or Asia now only takes a few minutes. Needless to say, technology has changed everything and millions of Dollars are moved from one currency into another every second of every day by major banks through computers and for the average investor, with the touch of a phone.

FOREX BASICS - What's a PIP A "pip" is the smallest increment in any currency pair. In EUR/USD, a movement from .8951 to .8952 is one pip, so a pip is .0001. In USD/JPY, a movement from 130.45 to 130.46 is one pip, so a pip is .01.

CALCULATING THE WORTH OF A PIP How much in dollars is this movement worth, for example, per 10,000 Euros in EUR/USD? How much is one pip worth per 10,000 Dollars in USD/JPY? We will refer to the size, in this case 10,000 units of the base currency, as the "Notional Amount". The formula for calculating a pip value is therefore:

(one pip, with proper decimal placement / currency exchange rate) x (Notional Amount)

Using USD/JPY as an example, this yields:

(.01/130.46) x USD 10,000 = $0.77 or 77 cents per pip

Using EUR/USD as an example, we have:

(.0001/.8942) x EUR 10,000 = EUR 1.1183

But we want the pip value in USD, so we then must multiply EUR 1.1183 x (EUR/USD exchange rate): EUR 1.1183 x .8942 = $1.00

This is in fact a phenomenon you will see with any currency in which the currency is quoted first (such as EUR/USD or GBP/USD): the pip value is always $1.00 per 10,000 currency units. This is why pip (or "tick") values in currency futures, where the currency is quoted first, are always fixed.

Approximate pip values for the major currencies are as follows, per 10,000 units of the base currency:

USD/JPY: 1 pip = $.77 (i.e. a change from 130.45 to 130.46 is worth about $.77 per $10,000)

EUR/USD: 1 pip = $1.00 (.8941 to .8942 is worth $1.00 per 10,000 Euros)

GBP/USD: 1 pip = $1.00 (1.4765 to 1.4766 is worth $1.00 per 10,000 Pounds)

USD/CHF: 1 pip = $.59 (1.6855 to 1.6866 is worth $.59 per $10,000)

Spread The spread is the difference between the price that you can sell currency at ( Bid) and the price you can buy currency at ( Ask). The spread on majors is usually 3 pips under normal market conditions.

Market Hours The spot Forex market is unique to any other market in the world; trading 24-hours a day. Somewhere around the world a financial center is open for business and banks and other institutions exchange currencies every hour of the day and night, only stopping briefly on the weekend. Foreign exchange markets follow the sun around the world, giving traders the flexibility of determining their trading day and the ability to take advantage of global economic events.

FOREX or The Foreign exchange rate market is an international market where various currency exchange transactions take place; this is in the shape of simultaneously buying one currency and selling another. The most commonly traded currencies are referred to as ?Majors?; over 85% of daily transactions on Forex trading involve the Majors. These seven currencies are the US Currency (Dollar, USD), Japanese Yen (JPY), Euro (EUR), British Pound (GBP), Swiss Franc (CHF), Canadian Dollar (CAD) and Australian Dollar (AUD). The Forex system in operation today was established in the 1970s when free currency exchange rates were introduced, this period also saw the US Dollar overtake the British Pound as the benchmark currency. Prior to this and in particular during World War II, exchange rate remained more stable.

Forex trading in simplest terms is the buying of one currency and the selling of another. Forex trading, also referred to, as ?FX? is open to corporations, small businesses, commercial banks, investment funds and private individuals, it is the largest financial market in the world averaging a daily turnover of over $1 trillion dollars, making it a diverse and exciting market. It is a 24-hour market enabling it to accommodate constant changing world currency exchange rates . According to New York time, trading begins at 2.15pm on Sunday in Sydney and Singapore and progresses through to Tokyo at 7pm, London at 2am and reaches New York at 8am. This leaves investors free to respond to global political, economic and social events when they take place, day or night.

Unlike trading on the stock market, the forex market is not conducted by a central exchange, but on the ?interbank? market, which is thought of as an OTC (over the counter) market. Trading takes place directly between the two counterparts necessary to make a trade, whether over the telephone or on electronic networks all over the world. The main centres for trading are Sydney, Tokyo, London, Frankfurt and New York. This worldwide distribution of trading centres means that the forex market is a 24-hour market.

Wednesday, March 6, 2013

Forex Currency Trading - The Basics

Forex Currency Trading - The Basics

Forex is the name given to the foreign exchange market, where international currencies are bought and sold. Due to the development of free exchange rates, the market began in the 1970s and has become the world's largest financial market with a daily turnover of US$1.9 trillion. To put that into perspective, that's over thirty times the daily turnover of the rest of the US equity markets combined.

Unlike normal stock markets which are traded on exchanges that are located in a specific place, Forex currency exchange takes place via an Over The Counter (OTC) or interbank market. This means that transactions are conducted electronically between brokers.

Thanks to this and global time zones, Forex is a genuine 24 hour financial market. The day begins in Australia and moves around the globe as each of the leading financial markets open in Tokyo, London and New York. So it's always possible to find someone who is willing to buy or sell international currencies. This gives investors the chance to respond to price changes caused by a variety of economic, social and political events at any time of the day or night.

There are two main reasons for trading currency on Forex. Approximately 5% of Forex trades are undertaken by multinational companies and governments who buy or sell products and services in a foreign country and have to convert their profits into their domestic currency. Forex allows them to hedge (or protect) their profits so that in the even of a dramatic currency fluctuation, their profits won't be reduced.

However, the other 95% of Forex activity is due to people or organizations trading for short term profit. Forex allows you to trade virtually any currency, although in practice most activity (85% of total turnover) relates to the major currencies which include the US Dollar, the Euro, the Japanese Yen, the Swiss Franc, the British Pound, the Australian Dollar and the Canadian Dollar.

Trading on the Forex exchange involves simultaneously buying one currency and selling another. For example, if you buy USD/EUR, that means you buy the US Dollar and sell an equivalent value of the Euro. Closing you position involves buying the Euro and selling the US Dollar.

The price of all currencies traded on Forex are influenced by the laws of supply and demand. If the demand for a currency outstrips the supply, the price rises. Alternatively, if supply is greater than demand, the price of a currency will fall.

Forex trading has a number of significant advantages that make it an extremely attractive form of speculation.

First, due to its size and lack of exchange controls, it's almost impossible for any person or organization (including central banks and governments) to significantly influence prices for an extended period of time. This means that you can enter the market secure in the knowledge that your investment is competing on a level playing field with every other investor around the world.

Second, due to the vast size of the market, the liquidity is excellent. So unlike the position with many stocks and shares where you might find it hard to sell certain investments, you can open and close Forex trades almost instantly as there are always scores of international buyers and sellers.

Third, it's relatively easy and cheap to get started trading Forex. All you need is an internet connection, a broker and perhaps $500 - $1000 to open a trading account. Once you've got these things you can trade 24 hours a day from Sunday afternoon through to Friday evening. And thanks to the availability of information on the internet it's possible to find all the data that you need for the purposes of analysis and decision making.

Fourth, it's possible to make substantial short term gains with relatively little capital thanks to the number of daily fluctuations in currency prices and the ability to leverage your capital (often up to 100 times) thanks to margin trading.

However, due to rapid fluctuation of currency prices and marginal trading, Forex trading carries significant risks, so caution must be required when deciding which trades to make.

When it comes to decision making, there are two basic Forex trading strategies, technical analysis and fundamental analysis.

Technical analysis relys upon using price charts, trend lines, support/resistance levels, highest price, lowest price, transaction volumes and various other mathematical formulae to identify trading opportunities. This is based upon the belief that everything that may influence the price of a currency has been considered by the market and factored into the current price.

Crucially, technical analysts don't try to defeat the market. The are content to predict short term, minor fluctuations using patterns from the recent past and the belief that history will repeat itself. The main disadvantage of the method is that all the results are purely historic and cannot always be relied upon as an accurate guide to the future.

Fundamental analysis looks at wider factors such as the national economy of the currency, the political stability, employment figures, industry figures, interest rates, tax policy and a wide range of other economic indicators. However, before basing your investment decisions on these factors alone, it's important to consider both technical analysis and the fact that market expectations can influence the price of a currency as much as reality.