Top Forex Swings in history

The foreign exchange industry exists whenever one currency is traded for another. It is by far the largest market in the world in terms of cash value traded, and includes trading between large banks, central banks, currency speculators, multinational corporations, governments, and other financial markets and institutions. The market is unique due to several factors including trading volume, the extreme liquidity of the market, geographical dispersion, the 24 hour trade day, the large number and variety of traders in the market and the variety of factors that affect exchange rates.

Among these factors that affect exchange rates is the news. This is one of the greatest advantages that the forex market has over all of the other markets; there is no such thing as insider trading. All a trader needs to do in the forex market is to stay abreast of the news, develop an opinion and apply that opinion to the markets. Some of the best currency trades in the world have been placed by investors following the news and taking advantage of the information given to them.

During the summer of 1992 there was wide spread speculation that England was going to be rejected from the European Monetary Union, which would severely hurt the English pound. George Soros, founder and head of one of the largest hedge funds in the world, The Quantum Fund, took advantage of England’s poor fortune, by placing a ten billion short position in the market. The Bank of England attempted to stabilize the pound’s value by intervening and depleting all of their foreign currency reserves. Despite their efforts, on September 16, 1992, known around the world as Black Wednesday, the fight was over and the pound plummeted. England was forced to withdraw from the European Monetary Union and in one day, Soros earned $1 billion. He is now known as the man who broke the Bank of England.

Stanley Druckenmiller, former money manager for George Soros, now runs Duquesne Capital which he founded in 1981. In 1989, he developed one of his greatest ideas. While working at George Soros’s Quantum Fund, Druckenmiller bought two billion German marks. He believed that due to the falling of the Berlin wall and the reunification of Germany, the deutschemark was set for a huge rally. That one idea made him a very rich man, with the deutschemark climbing enormously in value over the next few years. Druckenmiller’s exact profits on this investment remain unknown, but the Quantum Fund posted returns of over 60%.

Andy Krieger, once a star at Banker’s Trust before resigning to work for no other than Mr. George Soros, is best remembered in New Zealand. During the U.S. stock market crash of 1987, traders were buying up any currency that was appreciating against the dollar, the most popular being the New Zealand dollar or the “kiwi” as it is known in the currency market. Mr. Krieger, knowing that this rally could never last and believing that the kiwi was one of the most overvalued currencies in the market, shorted 200 million kiwi which is more than the entire money supply of New Zealand. The currency not surprisingly buckled under this pressure, allowing Kreiger to cover his positions and walk away with a huge profit. .

All of these trades have one common underlying factor. Each of these traders had an opinion that was based on pure economic, fundamental data. Due to markets being more efficient and traders being more regulated, it would be nearly impossible to replicate any of these trades, however it would be rather easy to replicate the foundation on which each and every one of these trades were based.

How to trade forex: Market Neutral Investing

The concept of market-neutral investing is relevant because pairs trading is a type of market-neutral strategy.

Joseph G. Nicholas, founder and chairman of HFR Group, wrote in his 2000 book “Market Neutral Investing: Long/Short Hedge Fund Strategies”: “Market-neutral investing refers to a group of investment strategies that seek to neutralize certain market risks by taking offsetting long and short positions in instruments with actual or theoretical relationships. These approaches seek to limit exposure to systemic changes in price caused by shifts in macroeconomic variables or market sentiment.”

Market-neutral investing is not a single strategy. Numerous market-neutral strategies include:

1. Convertible arbitrage


2. Equity hedge


3. Equity market neutral


4. Fixed-income arbitrage


5. Merger arbitrage


6. Mortgage-backed securities arbitrage


7. Relative value arbitrage


8. Statistical arbitrage (“StatArb”).

The various market-neutral strategies invest in different asset types; for instance, convertible arbitrage takes long positions in convertible securities and short positions in common stock. As another example, merger arbitrage takes long and short positions in the stocks of companies involved in mergers. Market-neutrality can be achieved either at the individual instruments level or at the portfolio level. While the strategies are very different, both in terms of assets and methodology, they all fall under the market-neutral umbrella. This is because each derives returns from the relationship between a long and a short component – either at the individual instruments level or at the portfolio level.

How market-neutral relates to pairs trading
Because one position is taken in conjunction with another position to reduce directional exposure, market-neutral strategies often provide a hedge against market risk. In this manner, exposure to the market is exchanged for exposure to the relationship between the long and short positions. This does not imply that market-neutral investing is risk-neutral or even risk-free (it is neither); however, the risks are different than those associated with directional, long-only investing. A market-neutral approach provides an alternative and uncorrelated source of returns when used as part of (but not as a substitute for) an overall investment strategy.

Pairs traders limit directional risk by going long on one stock (or other instrument) in a particular sector or industry, and pairing that trade with an equal-dollar-value (or dollar neutral) short position in a correlated stock (for example long $10,000 on stock A and short $10,000 on stock B), typically within the same sector or industry. Because it does not matter which direction the market moves, directional risk is mitigated. Profits depend on the difference in price change between the two instruments, regardless of the market’s direction, and are realized through a gain in the net position.

How to trade forex: pairs trading introduction

Pairs trading is a market-neutral trading strategy that matches a long position with a short position in a pair of highly correlated instruments such as two stocks, exchange-traded funds (ETFs), currencies, commodities or options. Pairs traders wait for weakness in the correlation, and then go long on the under-performer while simultaneously going short on the over-performer, closing the positions as the relationship returns to its statistical norm.

The strategy’s profit is derived from the difference in price change between the two instruments, rather than from the direction in which each moves. Therefore, a profit can be realized if the long position goes up more than the short, or the short position goes down more than the long (in a perfect situation, the long position will rise and the short position will fall, but this is not a requirement for making a profit). It is possible for pairs traders to profit during a variety of market conditions, including periods when the market goes up, down or sideways, and during periods of either low or high volatility.

Pairs trading’s origin is generally credited to a group of computer scientists, mathematicians and physicists assembled by Wall Street’s Morgan Stanley & Co. in the early to mid-1980s. The team, which included computer scientists Gerry Bamberger and David Shaw, and quant trader Nunzio Tartaglia, was brought together to study arbitrage opportunities in the equities markets, employing advanced statistical modeling and developing an automated trading program to exploit market imbalances.

Central to their research was the development of quantitative methods for identifying pairs of securities whose prices exhibited similar historical price movements, or that were highly correlated. While the team’s resulting black box was traded successfully in 1987 – the group made a reported $50 million profit for Morgan Stanley – the next two years of trading saw poor enough results that in 1989 the group disbanded.

Over the years, pairs trading has gained modest attention among individual, institutional and hedge fund traders as a market-neutral investment strategy. This is largely due to the advent of the Internet and advancements in trading technology. These two factors have helped level the playing field for individual investors, making real-time market data and powerful tools both available and affordable to more than just the institutional traders. True, the large hedge funds and institutional traders still have advantages (for example, robust proprietary systems and economies of scale). However, today’s market participants – whether retails traders or a team of highly-skilled mathematicians in a quant shop – have access to real-time financial market data, direct access trading platforms, advanced computer modeling and the ability to automate complex trading strategies.

Using technology - as well as drawing on fundamentals, probabilities, statistics and technical analysis - pairs traders attempt to identify relationships between two instruments, determine the direction of the relationship and execute trades based on the data presented. Here, we introduce pairs trading, market-neutral investments, arbitrage and provide an example of a pairs trade.

Why You Should Be Trading The Forex

Have you heard of the forex market before? The forex market is a term that is often used to describe the foreign exchange market. If you are unfamiliar with the forex or the foreign exchange market, you are urged to take the time to familiarize yourself with it. After a close examination, you will see that there are an unlimited number of reasons why you should be trading the forex, if you aren?t already doing so.

The foreign exchange market was first established in 1971. It revolves around the exchange or the trading of foreign currencies. Forex traders, or foreign exchange market participants, exchange one nation?s currency for another nation?s currency. The foreign exchange market grew in popularity as it was learned that the exchange rates for foreign currencies regularly floated or changed. This is where the potential of making a profit came in. Fast forward to today and a number of developments have helped to increase the popularity of the forex; developments that have made the forex the largest financial market in the world.

Now that you know the basics concerning the forex market, you may be wondering if it is right for you. What you may not know is that the forex has evolved overtime. As it was mentioned above, a number of developments had a profound impact on the foreign exchange market. One of those developments was forex brokerages, whom started opening to the general public in the 1990?s. With the assistance of brokers, many ?everyday? individuals saw an opportunity to trade the forex. For many, this was something that once was viewed as being out of their reach. Whether you are an experienced trader, such as someone who has dealt with the stock market on a daily basis, or even if you didn?t fully understand what the foreign exchange market was until today, you can still trade the forex. In fact, if properly executed, you may even be able to make a substantial profit doing so.

Unlike the stock market, the foreign exchange market is open for trading twenty-four hours a day, five days a week. The reason for this is because of market place locations; trading occurs in locations such as the United States, Switzerland, Hong Kong, Japan, and the United Kingdom. Due to different time zones, the forex market is open twenty-four hours a day. In fact, that twenty-four day ability to trade on the forex is just another one of the many reasons why you should be trading the forex, if you aren?t already doing so. Essentially, there is no exchange center or clearing house. Instead, forex traders and their brokers deal directly with other brokers, banks and interbanks.

In addition to the ability to trade whenever you have the time to do so or the ability to seek assistance from a forex market brokerage firm or broker, you should also be trading the forex because once you learn how the foreign exchange market works, trading may become a regular source added income for you. Before you go searching for a forex brokerage to work with, it is advised that you examine forex training courses. Forex training courses are typically offered by brokerage firms, but there are now a number of training courses that are being offered by those without hidden agendas. Many brokerage firms offer you free or discounted forex training courses, most of which are sub-standard, only with the hopes of acquiring you as a client. While the price is nice, you shouldn?t let a free or discounted training course choose your forex market broker or brokerage firm for you.

When searching for a forex training course or program, you are urged to examine Fxcenter.com. The goal of FxCenter.com is to prepare you for forex trading. As they are a training center, not a brokerage firm, you are given the utmost level of training and education available, without any hidden agendas. In fact, the one and only goal of FxCenter.com is to adequately prepare you for trading on the foreign exchange market. When doing this, FxCenter.com staff go by the belief that quality learning is better than rushed learning. For that reason, you will see that many training courses require at least a minimum of twenty hours worth of initial lessons. Completing each training course in phases that also includes live marketplace trading should help you feel comfortable trading on the foreign exchange market. This comfort will be critical when placing your own trades, and also helping you avoid some unnecessary risks.

Trading using stochastic indicator

Stochastic indicator technique

This time I want to share one of my trading strategy I have used for several years. And I've proven yourself by using only one indicator of this trade I always generate profit in accordance with my target. Trading strategy that I use only use 3 pieces of stochastic who can adapt to any timeframe. I usually always play scalping in TF 1 minute, with only 10 points TP and no SL. Stochastic its setting is as follows:

1. Stochastic 1 : 9,4,3
2. Stochastic 2 : 12,4,12
3. Stochastic 3 : 24,4,24

Setup:

Over Sold / Over Bought line standard level was at 20 and 80,simple moving average.

Order Entry:
By the time all the stochastic is in oversold level TF1M Entry Buy on Target 10 Pips

Sell ​​Entry:

By the time all the stochastic is in overbought level Entry TF1M Sell on target 10 Pips entries are really on Stoch Stoch 2 1 is used as a signal of intention to make the first entry at the open position when the movement of the chart will be in accordance with our wishes. Stoch an OS instance, Stoch 2 OB, OB Stoch 3 then we have to wait till OB Stoch 1, after an OB Stoch we open new short positions.. look after open sell chart will move according to our wishes ..

 



 

As long as I use this strategy I've pretty much making a profit, there may be differences if-agan agan all also use this strategy. Please also be shared to me so I can be smarter again.

Why You Need To Adopt A Forex Trading System To Make Money With Forex

Trading in currency can be very exciting and also very rewarding but before rushing in find out why you need to adopt a Forex trading system to make money with Forex. There isn?t one right system but you just need to have a system that you stick to so your strategies make sense.

Currency markets are different than stock markets and you will need to spend a little time determining what system works best for you which is why you need to adopt a Forex trading system.

You could adopt a Forex technical approach or a more fundamental approach. Both are successful trading systems but combining the two together results in a much more powerful trading system which is why you need to adopt a Forex trading system. You can plot a very specific trading course while having a look at the bigger picture.

There are many analytical tools that you can use and that is why you need to adopt a Forex trading system. In addition as you gain more experience you will get to better understand each of those tools and how to get the maximum benefit. You?ll suddenly be a pro at trading with Forex.

Consider watching for resistance levels which are prices that are much higher than where the currency generally trades. Just a couple more reasons why you need to adopt a Forex trading system. If a currency price manages to break through either the resistance level or the support level the prices usually continue in that direction. They are seen as bullish and usually continue on this trend.

Moving of averages is another Forex tool that you need. SMA is the simple moving average which shows the average price during a selected period of time which is usually either 7 or 14 days for which it is plotted against. Moving averages are commonly used to eliminate short term price fluctuations and to help give a clearer picture of how the currency prices will move. If you know when and why you need to adopt a Forex trading system you?ll be ahead of the game.

Fundamental analysis is also a helpful tool because it can be used to reinforce the indications that come from your technical analysis. Another reason why you need to adopt a Forex trading system What ever your trading system this is why you need to adopt a Forex trading system that works for you.

Copyright ? 2007 Joel Teo. All rights reserved. (You may publish this article in its entirety with the following author's information with live links only.)

How to be millionaire through forex

Who would not want to be a millionaire? Even a rich man who has money's billion dollars? But could it just be a worker to accomplish?

Millions of people presenting how to get rich quick strategy, but we have to wonder. How many of them are actually millions of millionaires? There is an old saying, "If you want to learn something, learn from someone who already did." The same goes for learning how to become rich.

If you have never seen a smart investor then there may be good reason why. Today's economic downturn has proven that the condition of disaster could happen but what a smart investor to do in these conditions. They realize that this is the right time to show the millions of ways to get rich during turbulent few times. There is no place in the free world from the Global Credit Crisis and nobody knows this better than Australia and America. Not that do not exist in China or Japan; remain, our focus is on two particular countries.

There are very good reasons why some investors took the adjective "smart" attached to their titles. This is mainly because they know how to make the right decisions at the right time; prove that they know how to become rich under the most adverse conditions made-up by the media. You see, the media often gives portray the image of "recession" "economic crisis" and "Global Credit Crisis", but smart investors do not believe the hype because they believe that the opportunity is breathing and breath as long as there is oxygen in the air, there is a chance .

Smart investors do not do anything spectacular during turbulent times; else besides, using the right strategy and sticking to iidak no decision smarter or more wise to make a smart investor with perfect preparation. They were able to survive the last of the innovative new storm. If you want to know how to get rich in such bad condition and follow the way smart investors.

Here is a prime example of why there is a smart investor in the world today. They are not afraid to take risks and they never take "NO" for an answer. And this is one sure fire way how to become rich under any conditions.

Well, forex is a business that has a chance to become rich, but of course the risk is also not less fierce. But if you are afraid to take risks and say "NO" to trading forex?

You will never be part of an opportunity to become a millionaire through forex, but may have a chance in other fields. Why not ... My only knock on the souls of the brave and intelligent potential investors seize opportunities. Forex is your chance ... Want to take this opportunity? Please learn through my humble blog, then realize your desire to become a millionaire by registering yourself with a real account ... good luck.

What kind of personality a forex trader?

The idea became the forex traders seem interesting. But unfortunately not everyone has a personality that is suitable for daily trading. Even those who succeed in other areas (even a related field), we often find they are not compatible with the daily trading. If you are a day trader in forex, you actually can make a flexible profession (that can be adapted to different styles), but there are some qualities that all day traders should have a special personality to be successful (profitable), and avoid "accidents" in trading process.

 

 

 

 

patience

What you are tired of hearing these words, each learning forex is constantly reminded by these words. But you must remember, patience must be invested as you instill the term profit in mind. Failure to impress on your personality, you have entered the area "warning". The more you appreciate the patience and analyze intelligently, will lead you to the safety of your account. We know, daily trading in trading a lot more to do his job by sitting quietly in front of the computer, wait at any time (a few minutes, hours or even days), only to be followed the next trade. Able to wait patiently is a necessity, if not, you will find yourself in a trade could take that are not part of the trading system, and most likely you are losing money.

Waited patiently not necessarily mean without doing anything, lots of things you can do while you wait for the next trade. You can join the group-group on facebook forex trader, you join the live trading room, where you can interact with other traders, a lot of benefits that will be found, although there are several other traders who play the game, or interact with friends friends in facebook or watching a movie, so leave it alone ..., for me is simple,forex trader does not need to think and talk about all day forex.

assertiveness

Deciding when to get in and out of the trading is one of the most basic functions of a day trader, and it is important that the decision was made ​​as efficient as possible. Be crucial for determining trade successfully, if not, you will just sit and watch your trades, especially you're floating ... stress! Being assertive does not mean you do something without control, and take the trades that you are not sure, but it means to act immediately when you find the right moment.

A trap for forex traders the most common is that they see a trade happening, but hesitated and then wait for the trades (waiting for confirmation that the trade will be a winning trade before they enter into it). It always generates an entry price that is not good because it would be "too late" and can transform into a profitable trade is detrimental to trade.

tranquility

Would you be calm in your trade? Tranquility for the trade is one of the most important personality trait for a day trader, but also one of the most difficult to put into practice. As a human, a natural reaction to a profit of trade is fun and joy But traders need to control these emotions daily. Instead they are being "negative" emotions will influence their trading decisions (particularly negative emotions). For example, the panic that occurred after the loss of trade that will probably make you take a new trade immediately in an effort to make the money back, even though it was not trading in accordance with your trading system.

Trade in Simulation

Trading in the simulation is a good way to practice patience, firmness, and your peace of over trading, without risking real money. After many hours, days, or weeks of simulation, you will have a good idea of how your personality and your emotions will affect your trading, but even then, there will still be an emotional response when you start live trading.

Ready to trade?

Principles of a successful trader

 



Here's my key to successful trading postingkan. You can be guided by the following items in your perdaganganforex run. Here's the explanation:

Desire

You have to make sacrifices in the short term to enjoy long-term success. To get out of financial trouble, you must be willing to delay, defer pleasure and expenditures for two-wheeled vehicles, buying cars and others. Precisely what you need now is a forex trading tools: Computer or Laptop with an internet connection. Be strong desire that you are able to have it. If you really want it, you will surely get it.

Decision

You have to make a decision, right now, to do whatever it takes to free financial support with forex. You must be willing to pay whatever and go further though to achieve your financial goals.
But REMEMBER! Do it only if it is able to bear the loss. Therefore do fresh trading with money that will not make you short of money in the event of a loss.

Determination

You must be determined to persist until you succeed, in spite of all the problems and obstacles that you will experience. No matter how many times you hit fall (lose), you should be ready to lift themselves up and move on. Determination and resilience are important qualities necessary for personal and financial success. Commit to be an expert in forex.

Make it a goal, make a plan and work better every day. Read books forex trading. Expand your forex knowledge, follow his seminars. Do not ever stop learning. Dedicate yourself to do perbaika-personal and professional improvement continuously. Never allow yourself to be satisfied with your current level of expertise

Dicipline

You have to discipline yourself to learn what you need to know to achieve financial goals. You have to discipline yourself to stick with a firm, no matter how many times you experience setbacks, disappointments and failures while. You have to discipline yourself with your system. If you've set a "no profit is better than to lose", you should not enter the market when you are in doubt with the current market situation.

If you've set a "target profit of 50 points". You should really stop when the target has been met. If you have set "I just follow the trend". Then you do not fight the market, but trying to understand the direction of the market, not just principled expects the rebounding market. The trend is your friend a phrase we often hear. However, sometimes we forget to hold these principles in our entering the FOREX market.

One lesson that can be drawn is that the role is a very important trend. Whose name should never TREND our opponents, because we ourselves shall perish. The trend is your friend, a phrase we often hear but sometimes we deny himself. Whatever our indicator if the opposite trend is clearly visible not we follow. We'll wait while indicators in line with the new trend we take an action. I am 1000% sure who would have destroyed the trend itself. If you have set "Do not Lose Money!" Then you have principled "I would use a good money management".

Trade with money planning discipline. Discipline with your system! Discipline to be patient! Discipline for not greedy! Discipline with the trend! Discipline with a time of market entry! Discipline with a profit! Discipline to turn off your computer!

Watiting

Remember, 95% of new traders are experiencing loss ...! Because on average they are not able to be patient in trading.

If you can:

• use only 10-20% of the margin / capital to trade at a time

• Waiting trend formed ripe for the vehicle you trade.

• Determine the risk of loss by putting Stoploss for every position that we open

• Establish goals and elakkan overly optimistic attitude / GReddy. Take profit target when wearing or at least switch the stop loss on the position in-profit (trailing stop)

• Not doing anything is the best way. If you are hesitant to enter the market. Better not to profit than to lose.

• Only trade based on what you see is not what you think the. Trade should follow the state of the field that occurred at that time. Too risky if we try to predict that the price will be so bullish / bearish.

• Waiting for the state, and so the opportunity market has really come. The key then the other, trading tunggui your own!

• Focus take one or two currency pairs advance to your master

• Always anticipate not forget cap by trading on Friday. There should not leave open trade on forex

• If you are in a position that continues to lose money, get out of the slump. Wait until it comes another chance to win.
THEN you can already be patient!

HOLD your appetite

Greed will appear on the amount of margin that you use in trading. Using a 10% margin that is normal. So when you start to use margin exceeds 10% then you have to be careful because it may have started pervasive greed in your heart :-) You can just calculate the 20% still safe ah kok, or 30% still safe anyway .. but it's greedy, greedy. Due to the use of large margin will produce a greater output either plus or minus.

Such ability can be easily killed by the movement of the market that no one can control it. Let's just use 20% margin with the ability to withstand the float 500 points. But when it reached 50 points only minus traders are nervous and cut loss (for a $ 1,000 capital loss that means cut $ 100), only 20% took the position again and floating 200 points for example ... that means it's $ 400, the remaining margin stayed $ 500 .. already looks like a loss, cutloss greatness, hedging scared back again .. mending well from the beginning so do not be greedy

Use only a 10% margin. After all, if you have $ 1000 with a 10% margin, if you can average 20 points, just one day, it means a month you get 20 x 20 days = 400 points aka $ 400 it was 40% a month. Rest assured that 40% is a remarkable result!

If the profit target has been reached, stop for a while until there is another opportunity for profitable trading back. Avoid greedy that it will be bomerang for yourself, because the market does not always favor us.
Do not be greedy, do not be greedy, hold your desire to want to get rich quick

Mintain your margin

The use of margin .. associated with appetite and capital management. If you have the discipline to put Stop Loss (SL) as 50 points (did study what SL is ideal?) Then you will never exceed 50 floating points. But if you are greedy and lose 50 points then you have the potential for large floating.

While floating it (10% margin) it means you are not able to take new positions until the positions are floating close! But maybe you do not want to miss an opportunity when no signal is good, then you open another 10% margin. Total has 20% margin. What if the second position is floating again? If both floating BUY it would be even greater.

If one another BUY SELL the total floating ... will not change, but in order to profit you must take the position again ... masihkah enough margin to take a new position? This is from the beginning you have to take into account. When things like this happen, then you will take action and so on and so on.

So there is a series of plans that you should obey all, the streak will be broken then the problem you are facing.

Why You Can Become Wealthy From Trading Forex

Forex Trading has long been touted as a method to financial freedom. Is Forex trading as difficult to become involved in as some might have you believe? Find out how and why you can become wealthy from trading Forex.

For those of you not familiar with Forex Trading the goal is to profit by moving foreign currencies around. It?s a method of investing in international market currencies and it?s all about why you can become wealthy from trading Forex.

As more and more people become familiar with how and why you can become wealthy from trading Forex, the popularity of it grows and more and more people jump on the bandwagon. It?s a very lucrative and exciting business that can bring wealth to those who get involved. And you can take part from the office, home, and from any country in the world.

There are no time constraints - buy and sell 24 hours a day. It?s all done electronically so there are no time constraints and it?s just another reason why you can become wealthy from trading Forex.

Forex Trading is both difficult and easy to get involved with. It takes a bit to get the hang of it, to understand that it really isn?t a game of chance and that there are some proven strategies and that?s why you can become wealthy from trading Forex.

What Forex requires is discipline, commitment, a choice of a trading system. As a trader you have to be able to cut your losses when they are small and when things are doing well you reap the profits. These are very important pointers when it comes to being a Forex trader and it is the secret to success and why you can become wealthy from trading Forex.

If you get in and out of trades in a short period you reduce your risks which is why many have turned it into a day trading event. There are time honored traditional strategies like swing trading and position trading both of which reduce your risk and that?s why you can become wealthy from trading Forex.

Cutting edge technologies with the internet allow you to view real time information and currency prices and it is all for free. Your dream of independence is just a few clicks away. You can make a full time income all from the comfort of your home. That?s why you can become wealthy from trading Forex.

Copyright ? 2007 Joel Teo. All rights reserved. (You may publish this article in its entirety with the following author's information with live links only.)

Minimize the loss in forex trading

If that loss is difficult to avoid, which is important at the end of the week or end of month profit results,be in withdrawl. But I've got tips, may be useful for you. Can be practiced. If I lie, forex tracker to be closed down :)

How do you manage your money and minimize the risk of loss in forex trading is playing a key role for you to become a successful Forex Trader....

 

Let us focus on minimizing your Forex Trading Losses:

A Good Trade - Trading with the good. Patience is the key to forex trading. Create a demo account first, and practice your skills there. Only live trading when you are 100% sure of all trading conditions.

Follow the rhythm of trading

Follow your trading plan, systems, and strategies, and not try to change it, if it is making you uncomfortable. You also must know when to enter and exit market conditions. Do not stress yourself and get out of the market in a state minus, when it was in accordance with your trading sistemm. Follow your plan, set to stop loss and take profit.

Do not be Greedy

Fear and Greed will make you loss every time. Greed is the emotion and you must remain calm, to stay focused on practical trade. Emotional is Judi.

Keep your emotions

Calm in the trade better. Even with the best trading plans, systems and strategies, it will increasingly be awesome. Let the profit you get, cut your losses, and be sure to stay in your system and your strategy.

Measure Profit Pips

I find that rather than focusing on profit pips at $ s is much better. $ It makes emotional, strategic fixed pip. If you are not comfortable trading much larger sizes, do not do it. Proper money management and risk reward ratio is the key to a sweet surprise and shock will usually adjust to your comfort zone.

The Trend is Your Friend

According to some, the Forex market is a trend only 20% of the time. Make no mistake, identify trends or the lack of a trend, it is important, you want to do it at some period of time. But do not rely only on the trends, use of indicators, trendlines, and pivot points.

Set Goals

You know exactly how many pips you are targeting. How much better you will cease trading. How many bad trades you will ever take. Everyone has bad days and what I do is go for a walk, eat meatballs, a delicious air search or change the scenery in some of the things that make us stay away from Forex. You have a plan, follow, make sure it is a Smart Plan. Specific, measurable, achievable, realistic, and Timelined.

Economic Calendar

The forex market tends to be stable at about important economic news. This "noise" may actually be able to throw your profitperdagangan. Or it can help your trading. Either way, you have to stay on top of Forex Economic Calendar News by checking at least a day before the trade.

Set Conditions

When do you enter a trade? Out of the Trade? When you take take advantage or disadvantage? Hours, sessions, and what currency pair you trade in?

Managing Your Money

Only 5% at most risk. Combined. If you have a trade, should the amount of 5% or less. Some people use 3%. Again and you will have a harder time to rebuild your portfolio after a bad trade.

Know the risks and profit opportunities

How many pips are you willing to risk? Are you going to risk 200 pips to make 20? You want to take less risk than you are bound to make.

Practice Practice Practice

Open a demo account, test your system thoroughly, plans and strategies. And please do not change every day or hour, and stop looking for the holy grail. Your demo account balance after the first month of trading would provide a good indicator of how well you've done.

Well, thus minimizing loss tips for forex trading, may help :)

Why Trading The Forex Is A New Trend

The foreign exchange market, otherwise known as the forex, was first established in 1971. Despite being in existence for over 35 years, the forex just recently started to become a new and popular trend; a popular trend that many are hoping to become a part of.

Around the late 1990?s, the forex market reached a critical point in its history. It was then that forex brokerage firms first opened to the general public. This opening gave everyone the opportunity to trade the forex. Before that point, the foreign exchange market was only for large financial institutions, corporations (particularly those that did business overseas) and central banks. Since the opening of forex brokerage firms to the public, a large number of individuals, from all walks of life, have started trading the forex. This alone has made trading the forex one of today?s ?hottest? trends.

In conjunction with brokerage firms opening to the general public, the low-cost of trading on the foreign exchange market is just another one of many reason why trading the forex market is a new trend, especially among those who never imagined themselves trading. Although brokerage firms and brokers vary, you will find that a large number of forex brokers, in the United States, do not charge transaction fees. These transaction fees are also commonly referred to as commissions. The forex also has minimal trading requirements. This not only means that you can trade as often as you would like to, but it also means that you can trade with much less money than you would in other markets. This is great for those who are interested in experimenting with the forex market without risking large amounts of capital.

Another reason why forex trading is considered a new trend is because of around-the-clock trading. The foreign exchange market has markets all around the world. For instance, markets can be found in London, the United States, and Hong Kong. Due to different time zones, the forex is open for trading twenty-four hours a day, five days a week. In the Untied States and all around the world, many individuals work a traditional nine to five job. A nine to five job makes it difficult, if not impossible, to trade the stock market. With around the clock trading, time isn?t an issue with the forex. The ability to trade on your own schedule, whether it be early in the morning or late at night, is one of the many reasons why trading the forex market is being considered one of the ?hottest,? new trends today.

Of course, the ability to make money or yield a profit is the greatest reason as to why trading the forex is a new trend. The foreign exchange market or the forex involves the exchange of foreign currencies. With leveraging floating exchange rates, the potential to yield a profit is high. As previously mentioned, the forex market has very small trading minimums. That is why many individuals decide to test the forex market waters. To their surprise, many are able to make a small profit. That small profit often leads to more trades and the opportunity to yield even large profits. While there are risks associated with trading the forex, as with the stock market, many of the risks can be mitigated as long as you and other traders know what you are doing.

Speaking of knowing what you are doing, forex training courses are another one of the many reasons why forex trading is a new trend. Forex training courses, although they come in a number of different formats, are designed to educate hopeful traders, like you. Many training courses, such as the training courses offered by Fxcenter.com, rely on different approaches or phases, such as online forex training, onsite forex training, and live market training. Extensive training courses, similar to the ones offered by Fxcenter.com, are ideal as they allow you to examine and explore trading the forex at your own pace. With most forex training courses at least twenty-hours long, there is more than enough time to adequately familiarize yourself with forex trading. This familiarization is what gives many hopeful traders the confidence needed to trade the forex, which only further increases its popularity, making it a trend.

Since it is apparent to see that trading the forex is a new trend, are you capitalizing on that trend? If not, you are urged to examine trading the forex. After a close examination, you will not only see the many reasons as to why you should, but the many rewards of doing so.

Fatal Error When using Autotrading

Autotrading like Zulutrade system, MirrorTrader and Pipsbook is an excellent solution for the owners of capital who can not trade or do not have time for trading. Many people who use Zulutrade profitable (and other systems) with various signal providernya. But not a few others that are not profit for a variety of errors. Consider these things and solutions:

1. Risk is too big

Generally, because of luck too sure at 3 parties (you, signal providers, and others who follow the signal provider), you determine the amount lotsize optimistic approach. Ie the assumption of where the market is never bad, and SP never passed drawdown that had been passed during the strategy goes. So you use a drawdown that has occurred as a benchmark max loss. As a result, when the drawdown is passed (-meaning there is a greater drawdown). Then there was a disaster.

For example, the SP has a 1000 pips drawdown. You deposit $ 1000, then using 0.1 lot (max risk means 1000 pips = $ 1,000). This is a recipe for disaster. Ideally it should be maximum drawdown of 20% -30% of your capital, not 100%. If you do not like math, use a free calculator to determine the exact lot ZuluTrade Calculator - FXOptimax

2. Overconfidence

After a few weeks of SP that you follow consistently profit, most people start itching to mess up their own risk plan. "During this profit anyway, really small drawdown, gw aja naikin his lot until fixed.!!!! '

Throw away those thoughts, unless you balance plus (so in accordance with the risk plan), or your balance increases significantly because profit.

Selogis might think a basic odds with science is taught in high school. If an SP has an average 80% profit position, means that 1 out of 5 of his trade will loss. If you have a 10x profit in a row, then the loss will be even greater possibilities. So do not raise your risk by increasing the lot while being a great opportunity loss.

The film titled 21 could be a good reference for the application of science opportunities.

3. Perceiving excessive SP

The pilots usually fly on autopilot, except during take off and landing. But if the plane crash, the pilot will take over control of the plane. Likewise, if the trend is considered much too strong in a particular direction (the opposite direction of where you are), you can do hedging, or to close the position. But should the decision to hedge is based on logical analysis, instead of to fears or panic.

4. Capital is too small

If you do not have sufficient investable funds, do forex trading. You can not expect capital of $ 200 you can give a profit of $ 200/bulan, so you can retire from your job. Rational profit was about 100% a year with a risk that is "reasonable". And you need a $ 300 - $ 500 to trade 0.01 lot with a risk that is "reasonable" is. If you do not have a budget invest that much, so look for another job to raise capital. Zulutrade or other systems (the minimum tradenya 0.01 lot) is not for you that has a capital of only $ 100.

With funding of $ 100, you'll want to consider PAMM than autotrading.

5. Does not account for commissions

If your broker charge 2 pips and your SP rata2 8 pips profit per trade. Then the commission will be worth 25%. If SP 100X and you follow trade 0.1 lot. Assuming a 80x profit 10 pips = 800 pips and 20x loss 20 pips = 400 pips, then your net profit is 400 pips, and the commission is 200 pips, aka half of your profits. Look for systems / broker as cheaply as possible, if necessary, its free!

That's all! Do not let trivial mistakes like this makes you much less loss MC

The simple forex strategy

Many are still asking me this forex strategy, through YM. In fact, in my blog I have a lot of posts about it. But no matter, for the extra would not hurt if I remind you to continue to study and reflect on my past strategies you practice in your trading.

1. Do not jump in trading forex for granted. You have to look at forex trading as something special, learn and work harder than most specialized professions. You need a lot of effort and time to get a good trade.

2. You should be aware of financial risks in forex trading. You should know that you can win and lose money in forex trading. Then you have to use smart money management skills.

3. You have to educate yourself first and build knowledge together with any profession, considering all it takes work. You respect and abide by all rules set earlier by the previous successful trader. You must understand the trade trends and why risky to trade against the trend.

4. You have to have patience and understand that it takes time to be successful. You do not see it as a get rich quick scheme. You should set up the mindset that invest a small amount first and build wealth.

5. You should know the importance of having a mentor like any profession. You must understand your own shortcomings as a novice and always seeking knowledge of experienced traders, you should also diligently read and read this blog (because a lot of knowledge and strategies profit) for you.

6. You need a proven trading strategy and trading only one currency (if you are a beginner). You do not jump from one strategy to another. You do not try to trade in many currencies at one time. The guarantee minus all the stress that  :)

7. You simply set aside the capital you are able and ready to lose. With the money you can lose, you do not feel any pressure while in the trade. You just follow a trading plan to execute your trades.

8. You record your trades. You review the winning and losing trades to understand your mistakes and how you can improve their trading results.

These figures are that 95% of traders will end up a loss, because they simply fail to plan and will not use the above traits. Make sure that you get the appropriate level of education and knowledge.

good luck :)

Why Learning The History Of Forex Can Help You Today

Back in the days when kings thought they had a divine right to rule, they often wanted more money than their parliaments granted them. But most parliamentary bodies didn?t consist of fools; they certainly knew better than to leave the powerful tool of taxation solely in the king?s hands.

Without being able to tax to his heart?s content, the king?s other financial weapon was to devalue his country?s currency: recall all gold and silver coinage, melt it down, then reissue it in a lighter weight or with base metals mixed in, pumping up the royal treasury with the extra. Because the currency was backed more by the citizens? confidence in the stability of their country than with anything else, many people never even noticed, and the king got his way in the end.

But sometimes people did notice, and sometimes they weren?t all that confident of the stability of their country, say, if a powerful enemy was threatening to invade. When that happened, often merchants refused to accept the devalued coinage in trade, demanding real gold or silver instead and rendering the king?s currency valueless. Such undermining of the currency could lead to a rapid collapse of the king?s government.

In the eighteenth and nineteenth centuries, the increasingly republican governments of the western world began basing their currencies, not on confidence in the government, but on gold. This prevented their rulers from devaluing the currency, but it had its own problems.

The gold standard lead to a cycle of boom and bust: a financially strong nation would import the goods its citizens wanted, leading to an outflow of capital until the money supplies shrank too far, in turn leading to higher interest rates and lower prices because nobody had enough money to buy anything. Then other countries would see the low prices and start importing the first nation?s goods, leading to an outflow of production but an inflow of money, pushing down interest rates and raising the standard of living again.

This boom-bust pattern continued in many western countries until World War I interfered with trade and stopped the flow of money across borders. The pattern resumed after the war and throughout the Roaring Twenties, until the 1929 stock market crash devalued the U.S. dollar and caused a worldwide depression. It was only relieved in the U.S. by the economic boom of World War II, when the production of war materials and the drafting of men into the military forces cured the problems of unemployment and high prices.

But although the Second World War eased economic ills in the U.S., it caused them in other countries, which had to purchase the war materials they couldn?t manufacture themselves. This led to an agreement known as the Bretton Woods Accord, signed in New Hampshire in 1944 and designed to create a stable post-war economy where the nations of the world could recover financially.

The Bretton Woods Accord ?pegged? the value of the major world currencies to the U.S. dollar, making it the benchmark that measured all other currencies. It also pegged the U.S. dollar to the price of gold at $35 per ounce, and it created the International Monetary Fund (IMF), a confederation of 185 nations around the world, dedicated to fostering economic stability and high employment.

For decades, the Bretton Woods Accord worked well. But in the early 1970s, international trade grew to such an extent that currency rates could no longer be contained. Finally, in 1973, President Richard Nixon allowed the U.S. dollar to be taken off the gold standard, and the complex arrangement of currency values was abandoned.

The major currencies of the world have come full circle: just like in the old days of kings, the currencies are controlled by the market forces of supply and demand, without being pegged to any other currency or to any precious metal. (Some of the smaller nations of the world prefer to peg their currency to that of their major trading partner, like some Caribbean nations with the United States.) This created the Forex market, where one currency can be traded against another with the expectation of earning profit from changes in their relative values.

At first only major commercial and central banks traded the Forex. But as it became better known, hedge funds, mutual funds, large international corporations, and some super-wealthy individuals discovered it. By the 1980s, about U.S. $70 billion per day was changing hands.

The explosion of the Internet and the rise in computer security systems brought Forex trading online. With trades able to be placed independently of any bank, there was no longer any need to wait for business hours, and traders began dealing across time zones and around the globe.

In 2000, the U.S. Congress passed the Commodity Futures Modernization Act, which opened the Forex to the average investor. Retail brokerages sprang up across the Internet. Today about U.S. $1.5 trillion is traded per day; 5% of that amount is currency conversion by travelers, banks, and international corporations. The remainder is trading for profit.

How good forex trading psychology?

Before entering the world of forex trading, worth taking the time to give attention to the psychology of trading FOREX. Although this may have nothing to do with all the technical requirements and skills necessary in investment, mental processes and behavior when you trade in. trade often determines success or failure.

Your emotions, feelings and thoughts opinion greatly affect your trading. And if you do not master such things or you could hardly do other than to use your intuition to determine your decisions when dealing with the assets, can lead to severe losses.

The issue is important psychology:

Trader can survive to let the minus and put stoploss dare not, for fear of losing the hope he would return. On the other hand, a bad trader can also close too early as soon as they saw a small profit because they fear that it not be allowed to profit at getting and the value of their assets will fall and result in losses.

Various reasons why individuals need to manage and maintain this fear of trading psychology, though difficult. Most likely the main problem comes from the lack of a mature plan on trading. That is why to plan and forex trading systems is very important before you try to invest your cash in one market.

A plan that fit perfectly can help you decide with logic. This is because the rules take into account special considerations that determine when to enter or exit a trade. In addition, the system can overcome the fear of losing to establish the level of risk that you are comfortable with.

There are some individuals who still fail even if they've succeeded. The reason for this is the lack of commitment or discipline to follow what has been set. The only reason there may be a fear of losing because there are some doubts about the effectiveness and profitability of the rules are followed.

You can control the psychology of trading to make sure your plan will work more or less in line with your expectations. You can do this with a micro account for back testing. This is a way to determine how well the rules you will do to a set of historical data.

Feelings and thoughts can make a profit or break you depending on your level of control. You can manage it by making sure that you are committed to a trading system that has been tried and tested. You will be satisfied with your trading. So, as a friend, I am always reminded that forex trading psychology is worth studying further.

Forex short term strategy

"People are not remembered by how few times they fail, but how often they succeed."
- Thomas Edison

Okey, I am sharing this post about strategies for short term profit. Let us together quickly succeed in the forex business.

This strategy uses two chart TIME FRAME 15-minute and 1-hour charts chart, and 200 period EMA and 4-bar slow stochastic. To identify trends you should look for situations where consistanctly priced above or below the moving averages on both charts.

Once the trends have been identified:

IF the market is more than 20 points above (for going long) or 20 points below (for going short) moving average.

Stochastic fast pass line / cross above the slow line Stochastic under 20 (for going long) or below the line crosses above the slow stochastic 80 (for going short).

If these conditions are met it means that the currency is currently in a short-term uptrend or a downtrend and has stopped or pulled back and ready to make a turn / turn.

Stop loss should be set 10 points below the 200 period MA on the 15 minute chart. for going short, place a stop 10 points above 200 - period moving average on the 15-minute chart.

Learn forex analysis

There are a novice trader to ask me, why forex headache after a long time huh? there is technical analysis, fundamental analysis, no news, no support resistance, there are bullish and bearish other crap. You also ask that? For the master trader, the seniors, just skip this article ...

Technical Analysis (Chart)

Technical analysis is a method of predicting price movements by taking into account the data that is solely market-generated. Using data from a particular market is most common in this type of information analyzed by a technician, even so will also store and carefully observe the volume and open interest in futures contracts.

Basics of technical analysis is often used by traders / brokers / Forex traders:

Trend, the currency price movement by showing a tendency toward movement - up, down, or flat.
• Bullish vs Bearish: Bullish, derived from the word 'Bull' or bulls, showed indications of price movements up to move up or Bearish, derived from the word 'Bear' or a bear, an indication of price movements to move down or down
• Support & Resistance: Support, the price area where it was found that it is difficult to penetrate the market price is lower. Resistance, the price area where it was found that it is difficult to penetrate the market price is higher.

Fundamental Analysis (News / News)

Headline analysis focuses on economic, social, political and war that could spur the existence of a demand and supply. A principal analyst at a variety of Macroeconomic indicators such as the list of goods delivery costs of economic growth, interest rates, inflation, and unemployment.

However, you will need to arrive at an appropriate method such as how best to translate this information into entry and exit points specified in the strategy Forex transactions.

Currency prices reflect the balance of demand and supply for currencies. Two major factors affecting supply and demand are interest rates and overall economic strength. The economic indicators such as GDP, foreign investment, and balance / trade balance reflect the general health of an economy, therefore, responsible for the underlying shifts in supply and demand for that currency.

For Forex traders, the news is all the things that makes a country tick. Of interest rates and central bank policy to natural disasters, the news is a dynamic mixture of separate plans, erratic behaviors and unforeseen events. Therefore, the best way to get the most influential news is to formulate a whole all the "Fundamentals" or any news.

Why Forex Training Courses Yield Better Profits

Are you interested in becoming an active trader in the world?s largest financial market? If you are, you will be looking to trade the foreign exchange market, also commonly referred to as the forex. In recent years, since the late 1990?s, brokerage firms have made it possible for ?everyday? individuals, just like you, to make money with the exchange or the trading of foreign currencies. Although brokerage firms do provide you with needed assistance, it is advised that you know the ins and outs of the forex yourself. That is why it is advised that you take a forex training course. In fact, the successful completion of a forex training course is likely to yield better profits.

When it comes to forex training courses, there are a large number of wannabe forex traders who wonder if it is really necessary to undergo training. Yes, you could start trading the forex market right away, but, when doing so, you will be taking a large risk. Although the foreign exchange market has been profitable to many traders, there are also those who have lost their hard earned money. To help ensure that you profit from the forex market, not suffer a loss, you are advised to closely examine forex training courses to reap their benefits.

By taking a forex training course, you may not only learn how to successfully trade the forex market, but you may also learn more about it. While you might not assume that the history of the foreign exchange market is important, it is. Familiarizing yourself with the history of the foreign exchange market will not only better help you understand how the forex came about, but it will also give you a better appreciation for the market and the ability to exchange foreign currencies. After all, the ability to exchange foreign currencies is what enables you to yield a profit.

Forex training course come in a number of different formats. When examining available courses, you will see that there are forex training courses that are designed for beginners. Beginners are those who are essentially completely unfamiliar with the forex market and forex trading. If you have a small amount of experience with the forex market or knowledge of how to start trading, an intermediate forex training course may be your best option. There are also several advanced courses to help experienced traders refine their skills. Whatever level of knowledge or experience you have, you should be able to find a forex training course that can help you increase your knowledge and wealth

One of the many aspects of a forex training course that may help to yield better profits is live market lessons. Live market lessons are, perhaps, the most essential phase of an effective forex training course. Live market lessons involve studying the foreign exchange market in real-time. This real-time learning is ideal because is allows you to examine situations on the forex that may arise, should you later decide to trade it. Being able to examine the forex market in real-time is training at its best. You can read a forex training course book or watch a video a hundred times, but never walk away with the knowledge or firsthand experience that comes along with live market lessons. Participating in a forex training course that includes a live market lesson is the surest way to yield better profits.

Currently, there are hundreds, if not thousands, of forex training courses available for you to choose from. What you may not know is that many of these training courses are offered by brokerage firms; brokerage firms that are looking to acquire you as a client. While it is true that any forex training course is better than no forex training course, why not get yourself the best? When searching for a forex training course, you are advised to examine Fxcenter.com. Fxcenter.com takes pride in being pure educators, not brokers. For you, this means better training. You will receive the highest level of forex training possible, as the goal is to educate you on the forex market, not acquire you as a client.

In short, to yield better profits, you are urged to examine forex training courses, particular the courses offered by Fxcenter.com. Why start trading the forex without the proper training and experience, especially when it is so easy to find a forex training course that can not only prepare you for trading, but help you yield better profits.

How to be a trader? (be a real trader)

Many people are interested to know more about FOREX trading. Do you want to know why? Well, Forex trading can help you earn a lot of money as long as you have the right strategies and trading information. However, with one false move, you can also lose big money.

To be a successful trader, you have to be serious with all your trading transactions.

Exchanges in the Forex market happen instantaneously,Single Forex trade should be done after carefully considering some factors.
Previously, only the world's biggest banks are allowed to trade openly. Things have changed greatly since the introduction of the internet. If you have an internet connection, you can already join in Forex trading. Many people are now actively involved in Forex trading, as the market is very liquid, liquid.

According to experienced traders, to trade in the Forex market is easy but for starters, might be a bit difficult. You see, there are a few things you need to consider.

Many traders lose their capital and according to statistics, these traders formed 90% of the number of traders in the Forex market. The other 10% is still split into two where 5% is the breakeven traders and other 5% are those traders who achieve a favorable outcome. The percentage of successful Forex traders is indeed very small compared with no success, because the fact is, many individuals are afraid to invest in the Forex market.

If you want to make huge profits, one way to do that is to join Forex trading. However, to consistently earn money, you have to increase the likelihood of engaging in trade.

Education is important if you want to succeed as a Forex trader. You must have sufficient knowledge of the market and every detail you can learn is very important. You can also learn many things in Forex trading. In fact, in any transaction that you make, you will certainly learn something you can use in your future exchanges.

As a Forex trader, you must have your own strategy or trading system. Many people find it difficult to follow the rules and guidelines and if you like it, the Forex market is not the place for you. You have to be very strict in following the design strategies or trading systems. This is the only way to earn more profits.

Aside from having your own trading system and strategies, you should be able to analyze and study the price behavior in the Forex market. Prices tend to change rather quickly and so you have to be ready all the time. Surprises in the Forex market is natural and you should be prepared for it. Do you still say forex is easy?

Why Forex Trading Is So Popular

The Forex market is often more appealing to people that like to live on the edge. There is more uncertainty by far and the rewards of knowing when to buy and sell can be immense.

For those of you who don?t know, the Forex stands for, Foreign Exchange Market. The Forex deals in all different types of currencies and pits them all against each other. For example: the English pound might be worth more than the American dollar but if there is a natural disaster or a nasty political event, then the pound could drop below the value of the American dollar and thus would make money for the individual who had bought the English pound, when they sell.

The people who trade on the Forex market are known as day traders. The reason for this is that the day trader buys at the beginning of the market for that day and then sells off all that he or she had bought by the end of the day. This type of trading is not for the inexperienced. There is potential to make a lot of money on the Forex market, but it takes a person knowledgeable in all the different facets of this slippery exchange to make money. A neophyte to this market can easily be wiped out in a matter of minutes!

The Forex market is also a liquid market with currencies exchanging hands moment to moment. Since transactions are handled electronically around the world, it only takes moments for funds to transfer to different accounts. It is easy to make some trades, watching news events in the country of the currency bought, and then sell it all, in order have money in your bank account by dinner time.

The Forex market is also open twenty-four hours a day since it encompasses the larger markets all over the world. Theoretically, a trader can work all day and all night. This makes the foreign exchange market very popular since people can trade any time they wish. A person can be trading on the Paris exchange until they close at which time the New York exchange is just opening up for the day. There are five major foreign exchange market around the world. They are New York, London, Frankfurt, Paris, Tokyo, and Zurich.

Many people like to invest in the Forex market since there is a lot of leverage available to the day trader. For instance, five thousand dollars can be leveraged to purchase five hundred thousand dollars through margins. What this means is that individual investors can trade with much more money than they actually have. However, one must be careful; it is quite easy to lose the money and thus has to pay much more than is actually in the bank account.

The Forex market is a challenging market to understand and can be hazardous to those not experienced in day trading. Nevertheless, for those who are experienced and can see the patterns of the market, it can be thrilling and extremely lucrative.

Choosing the best trading indicators

The indicators for forex trading

Some people find Forex trading very difficult. The reason behind this is because they do not spend enough time to study the market trends and they did not do a thorough technical analysis.

Forex charts are very important and you need to know how these charts are developed. As you probably know by now, the Forex market is a fast-paced environment and you need to follow if you want to get a good profit. Technical analysis can definitely help you and so can market indicators.

The indicator is very useful especially when you want to perform transactions in the Forex market.

Technical indicators are very important in Forex trading. You can combine the indicators to create its very own trading strategies in order to identify market trends. As an effective trader, you should be able to identify the current or major trends, the short trends, and intermediate trends, if you can do this, you'll be able to hold a good position in the Forex market where you can earn big profits.

Because Forex markets change continuously, you need to establish criteria for the use of technical indicators. If you want to get the highest probability and accurate predictions, you should be able to combine the required indicators. Thus, you can define the behavior of the price of the currency you want to invest it.

Suppose that your assessment is correct, you should still consider other factors to get the maximum benefit from your trade. If you are, having a bad day in the Forex market, take your profits and stop trading for the moment. This is a smart decision because if you stay longer (hoping to regain your lost money), you may lose more than your investment. When the currency price moves in what is called a narrow range. Find another currency to trade with better profit potential.

With so many technical indicators to use, you will certainly find a combination that will work best for you. When using technical indicators, you have to give yourself enough time in doing the analysis and studies. There are so many things to consider and you get. You, the people who need to adjust to the fast-paced environment. Keep in mind that there are also a lot of traders out there who want to benefit. You have to follow the competition.

Technical analysis is not very easy to do and so you'll need all the help you can get. Educate yourself on a variety of technical indicators that you can use in identifying market trends. Successful Forex trading, you should learn about technical indicators.

Fundamental indicator

Once again my talking about fundamental analysis as part of forex inseparable. It is important to know the trader.

There are three fundamental indicators which play a very important role in influencing price movements in the forex market, namely:

1. JOC (Journal of Commerce)

Index JOC index covers 18 industrial raw materials (materials) that supply or support the initial stages of the process and manufacturing industries, construction, and energy production. This index is more sensitive than the other indexes, as this index indicates changes in the inflation rate will affect other indices.

2. Balance of Trade (Merchandise Trade Balance)

Merchandise trade balance is one of the most important economic indicators. The value of this indicator can trigger long-term changes in monetary policy and foreign policy. Trade Balance shows the net difference between exports and imports in an economy.

3. Indicator of Employment (Employment Indicators)

Employment Indicator is an indicator of significant economic importance in several aspects. Employment levels, naturally, can be a benchmark to measure how healthy a country's economic conditions. The unemployment rate is a lagging indicator. Characteristic features of these lagging indicators are very important to remember, especially during the recession (the economy), is when investors focus on the health and recovery of employment, employment being the last economic indicator to be noticed. When a decline in economic conditions that require termination of employment occurs, it takes quite a long time for a psychic to revive confidence in the managerial level, before increasing the number of workers.

The announcement of the general level of employment has significance in financial markets, especially for the foreign exchange market. In the foreign exchange market (forex), the data presented will actually affect the transition from decline to recovery of the economy. It can explain the importance of this indicator is that when an economy is in extreme conditions, this indicator shows the level of maturity in the business world. Decline in the unemployment rate reflects the stability of the business world.
* Www.forexfactory.com
any news given icon / sign of how the news affects the market. It was very helpful, especially traders who use the strategy of volatile

* Www.forexnews.com
News served 24 hours nonstop. The website will be easier for you to see an overview of how news and central banks affect the forex market.

* Www.fxstreet.com
Fairly comprehensive site that displays a list of news and analysis strategies

* Www.currencypro.com
Click on the "Today 's Market Research" and you will find the analysis that okay.

* Www.saxobank.com
Forex Trading Strategies Click to see the reviews they will price movement today. There are also some link analysis of several other sites that cooperate with saxobank

* Oanda news
Oanda itself gives aid analysis and news. They worked with 4Cast. The address may be accessed through the bs-trade FX platform in the 'analisys' and 'News'.

Why Are Currencies And Forex So Popular?

It is called a pip and its value is the equivalent of 0.0001 of a dollar, in most currency pairs, and it is the smallest increment on the Forex market. A pip in the Japanese Yen is 0.01. Now you might find yourself wondering what the Forex market actually is and why anyone would possibly think chasing pips was ever going to be a profitable endeavor. However, with almost $2 trillion dollars being exchanged on the Forex each and every day it is open (from Sunday through Friday, the market trades 24 hours a day), those pips can quickly add up to big profits?or big losses?really quick. This makes it one of the most exciting, volatile, and engaging markets in the investment world.

So what exactly is the Forex anyway? Well, the Forex is just a big market where corporations, nations, and investors can exchange money. For instance, if an American corporation wanted to fund their payroll account for an office in Paris, they would need to convert U.S. dollars into Euros. However, one U.S. dollar does not equal a Euro.

To convert the money, the business would need to buy Euros with dollars on the Forex. The USD/EUR currency pair is what the company would need to buy in order to raise the money for payroll. A typical transaction on the Forex is called a lot and is $100,000 and the USD is behind 90% of all trades on this volatile market. So, if the currency pair was valued at 1.2500USD, that means that the business would receive 80,000 Euros for every $100,000 lot of the USD/EUR currency pair at that exchange rate.

Now remember those pips? Although a pip is a very small number, the sheer size of the lot means that a 1 pip movement equals $10 ($100,000 X .0001). Thus, an investor can get in and out of a position very quickly if the price fluctuates by only a few pips and still make a profit (Forex scalping). It is very possible for a Forex trader to double their investment in a very short period of time?but they can lose it just as easily!

Until recently, retail Forex investors did not exist. Because of the size of the transactions, traders on the Forex used to be limited to large investment firms, central banks, etc. Now, however, a Forex investor can typically secure a position for as little as $1,000 (or 1/100th of the total transaction amount). However, because there are always interest charges associated with any leveraged position, that means that an investor can quickly lose their capital if things swing the wrong way.

Of course, no one has a crystal ball and can predict the future but Forex traders use a number of strategies to help them determine when to exit and enter positions. While profit potential is unlimited, stops are typically placed on orders to prevent unacceptable losses. No matter what investment strategy you choose to use when trading on the Forex?it is very wise to place stops on every order because the volatility of the market can sap a highly leveraged account very quickly.

Trading currencies on the Forex is so popular because the action is non-stop and the opportunity for profit is unlimited. However, because of the margins and volatility of the market itself, the Forex can make or break an investor quickly. New investors are highly encouraged to start out with mock accounts or even mini-lots ($10,000) in order to learn the market better before jumping in with both feet.

The Reasons For Becoming A Forex Traders

Foreign currency exchange market investors are currently offering many advantages. So many
forex traders scattered everywhere throughout this hemisphere. Not without reason, myself included them and also (in the future perhaps you) would have to have at least 5 reasons why we want to become world currency trader.

A Market Is Never Close

Many of the trading market in the world, located at the site and continue to operate within strict trading hours, often limited to only five or six hours a day between Monday and Friday .. However, the Forex market is open 24 hours a day.

This means that the merchant does not only take advantage of international events, but they also have the ability to set their own trading hours. If you prefer to work in the morning because it has a particular job, it does not matter, you can trade forex in the evening. Or vice versa. You can trade forex in the day when you have a busy work at night. Bottom line, you can choose to trade day, late at night or even in the middle of the night if you want.

Low Cost Trading

In many markets, like the stock market, traders do not only need to pay the spread (the difference between the buy and sell price of the stock), but also have to pay a commission to the broker the commission is usually small trades can be around $ 20 and this can be increased rapidly to more from $ 100 for a larger trade.

Since the foreign currency exchange market is an electronic market entirely eliminated many traditional trade costs and you can maximize your trading capital. Capital may adjust your economic circumstances. But the broker has set up a micro account and standard account. Where to micro account for you which is relatively small in the ability to invest in the forex accounts (ie under $ 100). While the standard account over it or use substantial funds. In addition, the highly liquid (liquid) from the global currency exchange market. So can profit easily thawed and directly transferred to the account belongs to us (LOCAL BANK).

Ability To Trade On High Leverage

In most of the markets in which a trader has the opportunity to trade on leverage offered is often very low. In the case of the stock market, for example, equity professional day traders will typically operate at about ten times leverage their capital. In the Forex market the contrary it is quite common to find that traders are permitted to trade one hundred and two hundred times their capital.

A downside of high leverage is that it can certainly lead to high losses and high profits. However, the foreign currency market, risk management so tightly controlled.

Real Time

Currency trading transactions immediately executed in real-time by using the price at which the company will buy or sell the currency quoted. In almost all cases, this means that the price you see and the price you pay is the same.

It is not often the case in other markets where there are quite often put a delay between the command and the command was executed during which time the price will often move against you.

Two Opportunities To Profit

Equity markets go up and down following the trend (cycling between Bull and Bear markets), but cycling the Forex market does not experience this from the structural bias in the market.

World currency trading always involves two currencies, so if you are disappointed in one currency then you go up on the other side. Therefore there is always the potential to make a profit whether the market goes up or down.

We can gain an advantage in trade, whether the market is up or going down. His way is by analyzing a currency pair which will naek or down, and take the difference of his trade.
If you believe the currency will be stronger (up) please make buy position, and wait for the price to rise, do closed (sell) when the currency exceeds the price of your purchase before.

If you believe the currency will weaken (down) do sell position, wait for price drops, do closed (buy) when the currency was under selling price you earlier.

As the example is this:
Opening of Euro 1.1750 / 1.1753, the euro will analyze your kid into position 1.1770/1.1767, then open a position when the price buy it (then you buy at position 1.1753), and when the position changed to 1.1770/1.1773, do the closed position / sell currency (in the position 1.1770)
Then you can profit in two occasions.

Choose currency pair in forex

Forex trading market has become the largest financial market in the world today and online currency trading is now one of the fastest growing investments. There are many ways to find information on forex trading and online currency trading but finding the best forex traders can be difficult if you do not know where to look.

With the growing popularity of forex trading and the information publicly available on the internet finding the best forex traders is no longer as difficult as it might be. Currency analytical reports are now available to the public online and you can even access live data if you know where to look. Finding the best forex traders has become easier and more people are starting to reap the benefits.

What Are the Best Forex Traders

Forex traders are currencies that are traded by investors and the best forex traders are the currencies to make profits for their investors. Currencies fluctuate constantly and keep up to date with the state of these currencies used to be extremely difficult for small time investors.

It is a combination of the EUR / USD, USD / JPY, USD / CHF, and GBP / USD. Changing this combination constantly and knowing where these forex traders stand will allow you to make a profit that you choose from your forex trading.

Forex trading, your forex training and education programs are available to anyone who wants to make money from this extremely lucrative system and most of these programs are designed with beginners in mind explaining all the technical language simple easy to follow terms.

Trading forex can help you change your future, why not invest in right now?

If you are new to Forex trading you need to understand to understand that Forex trading has risks that can spend your capital. So before you start trading Forex, it helps if you understand all the risks that exist. Here are some additional tips that you can make a material consideration in your Forex trading ...

 

Understand foreign exchange risk.

Each investment must contain a risk. You should be well aware of these risks. We do not just focus on the lucrative profits from this trade, but also perhatikah the following:

• If you lack knowledge of the character of the movement of a currency market, then you will be faced with the risk of losing your money. Try to identify and study the first character of the movement of the currency you want traded. My advice to beginners is trying to learn first character of the USD / JPY. Why? because of my experience, the USD / JPY it has karkater a smooth, slowly but surely, with daily movements can be measured between 50-100 pips (points), and if there is movement tremendous least about 200-300 pips. To move more than 300 pips is both extremely rare. When that happens, it can be ascertained due to fundamental factors (news) is very meaningful, such as interest rates rise, natural disasters, Inflation Rate.

• If you are in a position of market entry, then you will be dealing with your own psychological. It can also cause you spent your money. This could be because you are not careful and observant when you enter the Forex market. Is conscientious and observant when you enter the Forex market. Understand exactly how your Forex software penggunana properly. Set Number of LOT and Forex currency you want traded. Take BUY position when the market at the lowest price and SELL when the market's highest diharga (you can learn it by using some existing graph indicator).

•  If you are in a position to fight the Forex market. Well, you should follow the trend that is happening, but just the opposite. Remember! we just took the opportunity with huge potential in the Forex market, not we who determine the Forex market. So, do not blame the forex market is not friendly to you, but it is you who have to adjust the market.

Accept Responsibility.

You MUST READY accept any responsibility for your actions in Forex transactions. If you menglami transaction errors, then you should be ready to anticipate quickly so that the error can be corrected to be an opportunity that generates return / profit.

Work Smart not Hard Work.

All you need is to multiply all the information about the Forex transaction.

You can continue to learn all the basic techniques and advanced available from the internet as well as the experiences of the seniors Forex Trader you trust. In Forex there is no "cum laude", but it is how you can "survive" in a Forex transaction to your life can be better for it.

KISS (Keep It Simple Stupid).

Set your system is simple in Forex transactions. There are so many Forex indicators are there, you just select the line with the "style" of your trading. The simple system sometimes gives better than the system with a level of complexity that can make you confused.

Be Patient.

Be patient and do not rush in making your Forex trading decisions. Forex market movements Up and Down, in which case you are just waiting for the right time to be entry level achieving your target price can be achieved with the maximum.

Use Leverage more realistic.

If you have a stock that is not too big, it's good when you start trading Forex Forex Brokers that have higher leverage. Because then, meaning you only need a small capital to start trading Forex. But Remember! with high leverage, your capital is to be small, but the movement is the same per pointnya. Be careful!

Must be Realistic! Well, it is sometimes hard to do by Forex traders. Do not be afraid to make a mistake or take a loss. Forget your ego and Make Money! If you are able to generate profits 50% -100% of your capital over the past year, it has become a wonderful thing is not it? From that experience, you can slowly increase your own profit targets. Learn by Process! Learn from your own experience process because all the risks and responsibilities is not on others.

Believe me ...!

Why A Dummy Account Is The Forex Traders Best Friend

To succeed as a Forex trader you will find the use of a dummy account invaluable.

Just like any other investments, you should never start investing in currencies without knowing what you are doing. With a good knowledge of Forex trading, you will be confident that you are on the right road to making some good profits.

As you probably already know, Forex stands for foreign exchange or the simultaneous exchange of a pair of foreign currency to another pair of foreign currency.

Initially you will need to gain knowledge of the Forex market background. It is important to you find out about the market changes that affect currencies so that you can make the best decisions.

Next you will need to study risk control. It is important that you understand the risks involved in Forex trading. You need not to over invest or be overconfident at the thrill of opportunity of making huge money. Also on this part, you will learn how you will cut potential losses or getting out of a deal before your losses reach and even exceed your limits. It is natural that you will lose money when you start Forex trading. It is the most crucial part of your Forex trading education because it will determine whether you will end up making your way to riches or lose a lot of your money.

One of the best ways to start is to practice Forex transactions using a demo account and virtual money.

Through this way, you will be able to get the grip of your trading account before getting into real trading transactions.

With a Forex demo account, there is no risk involved yet the nature is just as realistic as the real Forex trade. Moreover, your Forex trading education will also let you know whether you are ready to do the real thing or you need more practice. Only then will you be able to start and manage a real Forex trading account.

There are different free sites that allow you to open free Forex demo accounts and download free software to practice your Forex system and trading. There are also free e-books where you can read essential information about the Forex market and its attributes.

It is a good idea to use a dummy account and gain experience from Forex forums until you are confident that you have a reasonable chance of success.

Move from demo to live trading

We must learn from scratch. Everyone must start somewhere. Without training new traders will soon lose most of their trade. Once they experience a loss and fear and pain, she was crying ... Trade currencies without preparation would only meet with destruction. They would destroy their trade. So the first order in an effort to avoid the fear and pain of trading is to get an education. Not only technical education to know when to enter and exit trades, but education in understanding yourself as a trader, trading the physiological side.

 

One of the fundamental law of trade is the use of strategy and stick to a trading system. That means you can use the trading system and to test the test on your system, at least 100 trades / transactions. Once you know the result, if your system can work or not, or you may not be consistent on your system, chances are there here.

If you manage to do a demo with a run like that, it's time you should use the same criteria and procedures are the same on every trade you live. There are no exceptions.

In most traders Demo profit here, it's Because of the psychological trader "not play". He also felt the trade was made ​​safe Because there is nothing to fear Because there are no losers and no real money. But if you do not do it, you also lose the experiment to see the which works if you are trading real money. This is one reason That 80-90% of new traders fail: They do not learn how to trade before They attempt to Become Wealthy. It is one thing for sure if you want to succeed at trading, you need to study and practice. If you do not learn how to trade before you start trading with money you'll have a lot of fear and pain.

Can you conquer your fear when live trading? Like when you are demo trading? Should be!

Once you have developed the skills to follow a mechanical system. Knowing how to choose a high probability trades, set stops, and manage the trade, where to move, then you're ready to move to the next step. You are ready to open a live account. This is where you will find losing real money and have to admit that you are wrong on this trade.