Thursday, November 28, 2013

Examples of transactions in the forex

At this time we will learn how to trade or open position in the market on Metatrader charts. Well understood and practiced in your demo account ..

Press the F9 key to order in Metatrader, or CLICK 2x on its currency in the Market Watch screen

Suppose you want to open sell position on the EURO / USD

 



At 6 pm the position of EUR / USD at a price of "Bid / Ask = 1.3776/1.3778

Bid (Sell) = 1.3776, Ask (Buy) = 1.3778

explanation:
Symbol: the name of the currency to be traded
volume: the lot size is used, the standard account is 0.10 that means every price movement is worth $ 1.

0.2 if it's one point worth $ 2, and so on.
Stop loss is stopped automatically at prices so (that is loaded) to minus position.

Take Profit is stopped automatically at prices so (loaded) for the position plus. To fill, easy, that's no small arrow next to them for setting the price at our mengambilprofit automatically (if the price touched), before you have to click the first "copy as".
Clear the Comment wrote ah, no coment
Type: Well there are several options ...
Instant Execution was to take short positions or buy to live in love, just click what you'd like to buy or sell traded. Now it is under buy sell to the click as the "brush" profit or loss discard.
Pending Order that for the price of the message. Read wrote in a posting on this blog wrote it?
Multyple close biarin wrote it, do not need to be discussed. not important.

You will open a sell position for example,
(At that time we order pairs of the position of the Bid (Sell) at rate 1.3776), and afterwards in our portfolio will account directly (minus) -2 floating point spread because there is this difference. (the difference between his buy and sell prices)

Then after that in the hours of 7 pm position EUR / USD turns into:
Bid (Sell) = 1.3756, Ask (Buy) = 1.3758

In this example, we will get a profit of 1.3776 - 1.3758 = 18 pips / points

  • If we order the Bid (Sell), and then if its ask price (Buy) move down smaller than the original price of our Bid, then we will get the profit.

  • When you order with Ask (Buy), and then if its Bid (Sell) to move up beyond the original price of Ask us, then we will get the profit.

  •  But if otherwise it will Loss (or Floating Loss)


Floating prices is if we have not diclose position (diliquid to be realized) and still in a position to move the floating market.

Wednesday, November 27, 2013

Fundamental analysis and the term

Fundamental Analysis


In the next lesson, we learned menegenai fundamental analysis. Is it? Let us read ...

Fundamental analysis basically took the approach adjacent news or rumors circulating in the market, As we kethui with financial markets such as stocks and money markets are very sensitive denganberita being circulated in the market. So what happened to the FOREX market trading. It can even be said that the exchange rate moves are the news. In other words, market news is the driving emotion that resulted in changes in the balance point in the exchange rate.

If you are a layman, perhaps we are not too concerned with the rise in U.S. interest rates, for example. But tidakbagi a trader. Central Bank interest rate hike by the Fed (U.S. central bank) could mean stronger U.S. dollar to hundreds of points, which means that's where the money can be obtained. Or conversely, a loss may occur if action is not taken in accordance with the market.

That's why news / news greatly affect the investment portfolio of a forex trader, then it's time you also learn fundamental analysis.

There is a logical flow and economic laws that apply here. (Although sometimes it is not 100% effective in fact, fundamental analysis relates not only to the logical thinking of monetary policy or news coming out but also how the market reacts to the news aka the psychology of the market).

Glossary - Term Fundamental Analysis

If you do not know about this business, please read this page

Federal Open Market Committee (FOMC)


Institutions are part of the Federal Reserve (U.S. central bank), which sets interest rate policy and credit. The FOMC is the policy making body of the most important in the Federal Reserve system. Institutions that currently chaired by Ben Bernanke's usually periodically held eight meetings a year to decide
whether or not a change in monetary policy.

FOMC Minutes


Is the announcement from the Federal Reserve which describes meetings
held U.S. monetary policy making institutions before.

 Business Inventories


Inventory figures that have been produced but not yet sold. Is one component in the calculation of GDP, and may provide important clues about the direction of the economy in the future.

Consumer Price Index (CPI)


Is data that measures the average change in prices paid by consumers (in average) for a variety of goods and services (approximately 200 kinds of categories). CPI is an inflation indicator most commonly used and well regarded as an indicator of the effectiveness of government policy. The rising CPI indicates that rising inflation will lead to decline in bond prices and rising interest rates.

Unlike other indicators of inflation, which only cover items of local production, CPI also includes imported goods. The disadvantage was the small number of samples taken. The analysts usually focus more on the core (core) CPI, CPI variant that does not include the components of the change in price is the least stable. Core CPI assessed
more accurate in measuring the rate of inflation.

Consumer Confidance


This data measures the level of consumer optimism on the economic performance. On
Generally, Consumer Confidence will be high if low unemployment and high GDP.
Data (change) per month is considered to be no significant impact on the trend in
overall.

Durable Goods Orders


Data is to calculate the volume (in dollars) of orders and delivery of goods, including durable categories (items which benefit the age of 3 years or more).

Factory Orders


Data is to calculate the value (in dollars) orders (order) new durable goods (durables) and not durable (non-durable). These data provide a more complete report than data Durable Goods Orders are released a week or two earlier.
Goods orders data gives an idea of ​​just how sibukkah sector
industry in the next few months to fulfill the order. Automated so greater data rate means increasing levels of demand. This means that the economy will be getting better.

Domentic Gross Product (GDP)


GDP measures the market value of goods and services produced in a country, without
consider national companies that produce goods or services. GDP consists of four main components: consumption, investment, government purchases, and net total exports.

GDP released per quarter, this data shows the percentage rate of growth in the previous quarter. The GDP report is divided into three releases: 1) advanced - first release, 2) preliminary first-revision, and 3) final - the second and final revision. These revisions are usually significant effect on the market.

 Housing Starts & Building Permits


Housing starts are monthly data to calculate the amount of the construction of housing units
new per month. Most of the data collected from the Housing Starts number of applications and licenses (permits) for the construction of houses.

This data includes the main indicators. The importance of these data lies in its ability to trigger changes in economic conditions, changes in predicted growth rate.
The fall in the number of new housing units could slow the economy and encourage the
direction of recession. Conversely, an increase in the number of new housing units indicates
economic growth.

The monthly increase in more than forecast interpreted as an indication of rising inflationary pressures.

Institute for Supply Management (ISM)


Formerly known as the NAPM, effectively unchanged since January 2002.

Is an important survey on U.S. manufacturing activity conducted by the Institute forSupply Management (ISM). The report is usually issued on the first working day of each month, providing a detailed view of the beginning of the manufacturing sector prior to the issuance of another employment report.

This survey is known for its accuracy timeliness (time period) it, the breadth of information available, and the numbers listed on its headline is a function of six major components:
price paid, new orders, supplier deliveries, production, inventories, and employment. It should be noted, the three last components reflects the power supply (supply), while the three previous components reflect the strength of demand (request).

It can be seen how the relative trend between the two groups (supply and demand) illustrates the balance between the two forces, and it provides a view to the policies of the Federal Reserve.

Component price paid (Price Paid) is widely considered as components
involve an element of price pressures in the sector, the number of 50 or more indicates that the sector is expanding, while a reading below 50 indicates a contraction.

Industrial Production


Industrial Production is a monthly data that measures the total production of the entire plant,
mining, and public service companies (electricity, water, gas, transportation, etc.).
Manufacturing Production, the largest component of Industrial Production Data, can be predicted accurately from the total hours worked from the employment report. One of the biggest drawbacks
of these data is the inclusion of component production level of public services that can be greatly affected by the change (eg climate change).

Increase more than forecast this indicator is defined as the increase in the inflation rate, which in turn will cause a drop in bond prices and rising interest rates

Capacity Utilization


Capacity Utilization is complementary Industrial Production data. Capacity Utilization
calculate the rate of use of capital used in production processes
This data up and down in line with the business cycle. Rising levels of production will cause a rise in this data as well. However, the very high level of difficulty in compiling these data lead to less market trust level accuracy

The increase exceeded the estimates of these indicators are interpreted as rising inflation, which in turn will cause a drop in bond prices and rising interest rates.

Leading Indicators


Is a combination of several other economic indicators. This index is designed to get a signal about economic trends are more up-to-date (current) and consistent.

Money Supply


Data is to calculate the amount of money circulating in the economy. Is the sum of:

• The amount of money in circulation in the form of coins or paper

• The number of loans from banks, to individuals, companies and other banks

• The amount of money borrowed by the government.

Monetary experts believe that Money Supply is a good indicator for
predict the rate of inflation. However, the correlation becomes unreliable since financial liberalization in '80s.

Non-Farm Payrools (NFP)


The number of new workers from non-agricultural sectors that work either full-time or part-time who earn wages / salaries of more than 500 authorized private and public companies.
This index reflects the performance of the commercial and industrial sectors. The higher the value
indicates the high level of economic growth.

Producer Price Index (PPI)


Is a set of indices that calculate the rate of change in the selling price of goods and services in a period of time received by domestic producers. PPI was calculated based on three areas of production: industry, commodity, and production of intermediate goods.

In short, the PPI measures the rate of price change from the perspective of the seller.

Not as good as the CPI indicates inflation pressures. But because components include items that are in the process of production, as well as PPI can often estimate the CPI.

Purchasing Managers' Index (PMI)


PMI is a composite index of the five main indicators, which include the following elements: Order, Level Inventory, Production, Shipping, and Labor. The index number above 50 means expansion of industry experience, below 50 means contraction.

This index is considered as an important indicator and is considered the best indicator to measure the level of production. This index can also detect the pressure of inflation and industrial activity.

Productivity


Measuring changes in the quantity of goods and services produced per unit. Combining labor and capital inputs. Price unit of labor component is a useful indicator to measure the pressure on wages. The importance of productivity has grown in recent years since the Federal Reserve has started to pay attention to the trend growth and inflation.

Personal Consumption Expenditures - PCE


Approximately equal to the CPI, PCE was reported (more precisely a part of the Personal Income report) released by the Bureau of Economic Analysis of the Commerce Department. PCE measures the rate of price change of goods and services. Data components consist of household cash expenditures and credits for all kinds of good durable, non-durable, and services.

Retail Sales


These data to calculate the total receipts of retail stores, without including the component
expenditures for the services sector in it. Monthly data shows the percentage of
change from the previous month's data. Negative numbers indicate the number of sales decreased from the previous month's sales. Revision of the data that has been released can lead to significant price fluctuations.

Trade Balance


Trade balance is the net difference between the value of exports and imports of goods and services a country in a given period. A positive number indicates a surplus (exports exceed imports), negative indicates a deficit (imports exceed exports).

University of Michigan Consumer Sentiment Index


Is the result of a survey of consumer confidence conducted by the University of Michigan. Is an indicator of consumer confidence in America the most attention.

Consumer confidence is an important indicator for the business cycle because it presents important information about consumers' assessment of the current situation and expectations in the
future.

Survey data collected by mail questionnaire to 5,000 households across the country as a representative sample, approximately 3,500 of which responded. The questionnaire contains five questions: (1) rating business conditions in the household, (2) rating business conditions in six months, (3) the availability of jobs in the domestic environment, (4) availability of employment in the next six months, and (5) family income in the past six months.

Consumer Confidence is closely related to the unemployment rate, inflation, and
real income. Generally, consumer confidence high when low unemployment and high GDP growth rates.

Financial markets interpret this index as the increased number of indications will increase the level of consumer spending. The high level of spending in turn could trigger inflation.

 Unemployment Rate


Is the percentage of job seekers compared to the total population. Although it is the data
which is commonly known (as simple and there are political implications), Unemployment
Rate relatively less important for the market because it is considered less accurate (often late
signaling changes in economic trends).

Weekly Initial Jobless Claims


Is the average number of weekly new claims for unemployment benefits.
These data provide a report up-to-date, though also often wrongly, about the trends
economy, with an increase (decrease) in these data potentially indicate
slowdown (accelerated) growth rate of labor.

Due to be released weekly, this data can be very sensitive and volatile. Analysts more
selecting moving average per 4 weeks of data to get more accurate results.

Forex EA,How useful this thing?

Forex EA,forex expert advisorForex EA (Expert Advisor), it sounds cool and really cool ... He's just a software to help our trade, to transact and execute automatically. Steady ...! Well, so many kinds of these trading robots, including its strategy. Each robot also had a rule, the advantages and disadvantages. If we're lucky and observant rulenya again, in general, he is helping to achieve our profit. But that does not fit, instead of just spending our money.

Perhaps you've read books on forex, or read all about forex trading on the internet or you've gone to a seminar forex trading. This is something that interests you, something you want to commit time to it. Perhaps initially as a hobby and maybe one day for a living. Once you have this basic knowledge, where do you start?

 

1. I would recommend you buy a book about forex.


You will be able to understand what is forex, and the book answers many basic questions. In addition, you'll see information about reading charts and technical analysis. Read the book from cover to cover.

If you have an internet connection at home, you can learn forex in this blog. I have tried to use language that is easily understood by beginners who want to know about forex trading. Able to complement your forex books. Because if you only read the book forex, you will still be confused and not understand anything despite having read it through.

When you're done, go to step 2.

2. Download and install MetaTrader is free trade and charting platform.


You will be asked to open a demo account after installation. You can download Metatrader from several places. One such place is http://www.metaquotes.net/. Find aja item: download terminal. Start practicing with a Metatrader to learn what capabilities it has. You will not find a Metatrader book in a bookstore, but you will find an online manual on the internet. There is also a large user community about Metatrader. You can find one of these communities by Googling "metatrader forum."

3. Started to implement some of the things you learned from the technical analysis on charts.


Attracting some of the trendlines or add some indicators (in this blog post I have, just look for it on the label). Also practiced how to start putting some trades / transactions. Do not worry about how much you take the risk, or whether you will profit or loss. Practice familiar with the charts, practice placing trades. There are only two directions you can trade, buy (buy) or sell (sell) the currency pair. Try to concentrate only for consistency in the EUR / USD, GBP / USD, USD / CHF, or GBP / JPY (four pairs of the most popular.)

These three steps should be done for some time. Take the time to get used to practicing.

Tuesday, November 26, 2013

What is Bid,Ask dan Spread

Forex world is inseparable from the buy and sell (buy and sell). Each trader has the freedom to do any such action which he said was to make a profit. Buy also akin to the bid and is compared to short sell / offer.
Reading quotes is very easy. If we look at forex quote or price, usually always followed by the value of the bid and ask prices. Maybe some of you are just starting out in forex trading confused with the terms of this bid and ask.

In each pair, the price displayed is always followed by the value of the bid and ask prices. And if we open any position, the price offered is always followed by the value of the bid and ask anyway. So what the heck actually bid and ask it in forex trading?

Bid is the price that is given when we are going to buy (long transactions / buy) in a currency pair. While the ask is the opposite, namely that the price will be when we transact sales (short / sell) in a currency pair. Easy example:

GBP / USD at 1.6470 with a value of the bid and ask at 1.6473.

This is to inform you that if the purchase transaction, the price given is 1.6470. Whereas if we do sell transaction, the price given is 1.6473.

Well, the difference between bid and ask spread that is his name. In other words, forex spread is the difference did each currency pair when it traded in currency trading or foreign exchange (forex), to the position of selling and buying, which is determined by each Broker. So to say the amount of this spread to every broker is not always the same, although for the same currency pair. Forex traders, forex spreads are usually always looking for the smallest after finding reliable forex broker to invest as a forex trader.

Now we see that between the bid and ask is there within 3 pips (6473-6470 = 3). the distance between the bid and ask is what is called the SPREAD. Large spread of different in each pair, and for the same pair was given a spread can vary from one forex broker with other brokers. In addition, there are forex brokers who use the fixed spread, spread that does not change in any market condition. And some are using the system of floating spreads, where the spreads vary depending on market conditions.

Make sure you also pay attention to the magnitude spread of the forex broker you choose will be an additional consideration.

Typically, forex spread has been set by each broker and will not change unless the subsequent development of forex brokers feel the need to increase the spread. Although the spread is fixed or definite can be said, but the rules of each broker "is usually added" will increase the spread when there is a very strong fundamental issue affecting the market, where the rate of movement for the currency pair is very fast. For experienced traders, moment like this is a long-awaited moment, because not all the time can make a profit within a very short time, though to run out of capital is also very fast if done wrong in the open position.

When there is a change in spreads, for the forex trader who has made an open position at the beginning of this course is not a problem because the effect is not too large, unless the loss is in a position to spread the swelling is very painful. And for a trader who had come into the market, this spreads the swelling will be felt at all, especially coupled with the presence of a very small margin, or practically only able to resist movement under 100 points.

If you are someone who wants to be "professional traders", always doing the preparation when fundamental news will appear at least 15 or 30 minutes of the news will emerge, and begin to perform technical analysis as a supporter of fundamental analysis that will appear. Once the analysis is based on technical analysis is complete, just wait for the right moment to perform open position. If entered during fundamental news has not been revealed, it is usually spread forex still standard as set out previously.

One more is required when the upheaval of the market where the fundamental news has come down, it takes highly qualified internet connection in order to enter the market at that time. Since the number of forex traders who also perform open position at the same time, sometimes going delay in the open position, and of course this is very detrimental for a forex trader, forex spread because it could be covered already swollen and the desired point missed because of such delay.

Importance indicator in forex



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 moving 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 their 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 a great income and 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 determine the behavior of the price of the currency you want to invest on. The forex market.
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, 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.

With so many technical indicators to use, you will certainly find a combination that will work best for you. Do not ever get discouraged. When using technical indicators, you have to give yourself enough time in doing the analysis and studies. There are so many things to consider. 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, so you'll need all the help you can get. You can consult with a broker or online Forex trading tools if you want to learn more about this kind of trade. Internet is widely available and you can use it to your advantage. 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.

 

Monday, November 25, 2013

Risk management techniques (Switching management)

The explanation below is about risk management. Trading we must be saved when the market does not move as expected. This is just one of many forex trading strategies. Maybe you fit in with this system, you can use. Okey? His name Switching Management

Switching is done by closing the position change of direction we (cut loss) that are losing money because the price moves against our predictions and then open a new position following the price moves against the hope, gain the second position will be greater than the first position that is Cut Loss .

Case Example


Mr. X predict prices will rise from 1.2000 to 1.3000
So to get the benefits he decides to buy (Buy) is now at the price of 1.2000 with the hope that prices will go up so that he could sell at a higher price / cost advantage and get the difference.
But it turns out instead of rising prices, the opposite DOWN to 1.1700!
And after a re-analysis, Mr. X finds estimates that prices will rise turns out WRONG, according to Mr. Price. X instead of going up to 1.3000 but it will come down to 1.1000.

So what should he do


Rather than fight the market price and suffer losses and, therefore prices will drop even further from now, he decided ........
Closing her current position Buy losers (Buy at 1.2000, closed at 1.1700) and then open a new position at 1.1700 Sell (with the hope that prices will come down to 1.1000).

And it turns out the price continued to fall to 1.1000 so he had the advantage 700 points (1.1700 - 1.1000) greater than the loss in the first position previously closed at -300 points (1.1700 - 1.2000).
Then he closed the Sell position and receives a profit of 700-300 = 400 points.

If you are going to Switching a good idea to consider first, for that we have some suggestions that might be useful for you if you want to or prior to switching.

  • Perform SWITCHING by opening the second position opposite the first position only if losses exceed gains predicted first position to be closed.

  • If it turns out the price changes were consistent with the first prediction, then you will suffer a loss of 2 times, the first position and the second position was also

Swap in forex? what is it?

SWAP (or Rollover, or Overnight Interest, or Rate) is the interest to be charged or given to you if you have a position to stay.



Examples swap calculation is as follows: (please note that the interest rate used is the interest rate for example in 2005's):

Euro interest rate was 4.25%, and the USA was 3.5%. You have 1 lot EURUSD Sell position, meaning you sell 100,000 Euros, which means you borrow 100,000 Euros with interest 4.25% / year, and buy dollar where you earn interest of 3.5% / year. Then you will pay (4.25% -3.5%) or about 0.9 points EURUSD. The sum will produce 675 dollars / year, or about 1.85 dollars per day. Now 1.85 USD per night depending on the broker-will-be inflated in such a way that there is never the same positive swap, let alone greater than the negative swap 1 pair in the same broker.
For example: swap for long at broker A pip is +1.23, then swap it to sell more than a definite minus 1.23.

Swap from Friday to Monday (2 nights) are usually combined as Wednesday -> Thursday. In most brokers, it will swap multiplied by 3.

How to see the amount of swap in MT4:



  1. Right click on the pair in the market watch, then click symbol.

  2. Choose a pair that would be seen swapnya, and then click Properties

  3. You will see the swap long and short swaps, and swap type.


Swap long is the amount charged / given if the stay position is Buy
Swap short is the amount charged / given if the stay is a Sell position
Swap is a unit type. In the picture above his USD swap type, then swap one day for a Buy XAUUSD (Gold) for 1 lot is -3.52 USD (you will be charged 3.52 USD). Swap this type can in point, AUD, GBP, EUR, USD, etc.. Depending on the setting of each broker
Well, because in Islam is not allowed any flowers, brokers usually provide free-swap for Muslims. The position of the stay will not be charged or given swap.

Currency rate differences large enough to cause a major swap. For example buy AUDUSD will get a sizable swap, because interest rates are much higher than the AUD USD. Similarly, the AUDJPY. Noteworthy is that if you open a sell position or AUDJPY AUDUSD to days (90% for floating loss), swap sometimes feel too big.

Sunday, November 24, 2013

Secret of candlestick patterns



 

candle consists of a building OHCL (low height lid). Each candle reflects a war between buyers and sellers. Candlestick more likely to be used by traders other than as a bar chart or line chart. Each candle can easily tell about the prices during the session. There are several combinations of several candles that have a special meaning that can move the market in the same direction. Traders can also easily analyze the travel activity of the market and can predict what will happen next.

Is this legal? Yes, because of the analyst trader previously been studied and approved by millions of traders. So, if there is a combination candle what we call "bullish abandoned baby", once formed, everyone will know about it and will buy. Then there will be a white / green candle next. Why is there also a vendor? Due to the different time frames may be that they have to sell. And after he knew that he took a wrong step, he continued to sell, the hope that others will follow. Some of them also sell for a profit.

Edge pips is your chance to memorize all the combinations candle we prepared for you. All of them have high reliability. The next opportunity we will discuss about the right of the candle and duration.

Choosing the best time frame for trading



I want a little talk about the Time Frame. Many of us do not know how we're safe Time Frame for trading. How Time Frame which is not safe? As we know, the Candle at higher TF is a combination of movement of the TF that few candles lower.

Candle Height in H1 is different from the one candle high in H1 or M15.Candle could have the size to 100 pips even never reach 200 pips. Medium in M15 only reac
h a maximum of about 60 -70 pips. Errors take on TF H1 OP erosive floating candle would result in some swelling that occurs minus value. Example 4 floating candle H1 size minus 40 pips to 160 pips cause. While in TF M15 if floating candle size occur 4 to 15 pips, then the value of minus only be 60 pips.

This will affect the margin and equity security that we have. So use TF according to the power of capital and margin resilience that we have. If the stock just under $ 500, it's not safe to play on H1 or H4 especially in D1. One Candle D1 if one could take the position of minus 400 pips over a single candle, if resistance only 230 pips, we can MC in one candle.

In the chart the forex market platform, available time frame (Time Frame) that you can use to benchmark trading. All Forex charting platform offers a chart from 1 minute to weekly or even monthly period. So, the question often arises from the trader, which is the best time frame to analyze the currency pair and make profits in Forex?

If the answer to that question is me, then I will answer, "It depends on what kind of trader you are. If you are a day trader, then you must use the short time frame to capture a small trend in the Forex. If you are a swing trader, you have to use a larger time frame, in order to capture the best swing in the Forex.

The time frame for a day trader:


There is a choice of time frame (time frame) that can be used for the day trader. The most common are 1 minute, 5 minutes, 15 minutes or even 30 minutes. But for me, the frame time of 1 minute is not very good, because most of the frame period of 1 minute does not offer many opportunities. This time frame is too small to understand price movements and the difficulty of finding a good intraday trend. You will not be able to see the difference between the price was little and large.

5 minute time frame allows a reasonable time frame for the day trader. It also allows you to capture trade quickly with decent movement to take advantage.

Time frame 15 minutes is like 5 minutes, one of the best time frame for the day trader. It allows you to see clearly the difference between the trends are small and large. The time frame also allows you to hold the winner. Time frame 30 minutes can also be used for the day trader. However, time can only be used if you intend to continue in the trade of up to 6 or 8 hours.

The time frame for Swing Trader:


Time frames are most often used for the swing trader is a graph of 1 hour, 4 hour charts, and even the daily chart. Medium Time Frame 1 hour is a good time if you want to continue to trade for 1-2 days. It presents a good opportunity for this type of trading and allows you to trade preformance with good risk-reward (something that is almost impossible to do in such a small time frame chart 5 minutes or 1 minute).

Sedangka Time Frame 2 hour and 4 hour charts allow Time Frame for traders who want to hold a trade for a few days to 2 weeks. Time Frame allows you to capture the largest movement in the Forex.

Daily chart is intended for traders who want to continue in the trade for weeks and is suitable for an investor. This is a good time frame that allows you to know where the currency pair will move to the next week.

So, there are many options to choose frames from the use of Forex charts. Depending on the nature and type of a trader in the trading (day trader or swing trader), you can use different time frames to achieve your goals. We should remember that the time frame has advantages and disadvantages compared to the others.

If you're looking for a Time Frame your favorite, keep in mind that you have to use technical analysis in your trading.

Saturday, November 23, 2013

All About A Forex Quote

Forex Trading – All about a Forex Quote. The word FOREX is derived from the words “FOReign EXchange. Unlike other financial market in the world, Forex is open 24 hours every day where there is always a major financial center open where banks, dealers, hedge funds, corporations, individual investors and speculators are trading currencies.

The cumulative buy and sell of a currency causes the value of your Forex investment to move either up or down. There are numerous factors that cause the fluctuation of exchange rate. A country’s political, social and fundamental economic environment and their central banks fiscal policy, interest rate adjustment are some of the common factors. To have a better understanding how the currency exchange rate can affect the value of your Forex investment, this article will concentrate on the topic of Forex Quote.

Understanding-A-Forex-Quote

Currencies are traded in pairs and each currency has its own symbol. For the Euro dollar- it is EUR, Japanese Yen - it is JPY, for the Pounds Sterling - it is GBP, and for the Swiss Franc - it is CHF. Hence, EUR/USD would be Euro-Dollar pair. GBP/USD would be pounds Sterling-Dollar pair and USD/CHF would be Dollar-Swiss Franc pair and so on and so forth.


You will always see the USD quoted first with few exceptions such as Pounds Sterling, Euro Dollar, Australia Dollar (AUD) and New Zealand Dollar (NZD. The first currency quoted is called the base currency. This is not surprising as the U.S. dollar is regarded as the central currency of the Forex market and is involved in nearly 90% of all Forex transactions.

So how are these currency pairs quoted on the Forex market? You will see two numbers on all Forex quotes. The first number is called the bid and the second is known as the offer (or the ASK) price. Take for instance EURUSD, you will see 1.4625/1.4630. The first quote of 1.4625 is the bid price, the price where traders are prepared to buy Euro against the USD Dollar. The second number 1.4630 is the offer or ask price and it is the price traders are prepared to sell the Euro against the US Dollar. You will notice that there is a difference between the bid and the offer price. This difference is known as the spread. Based on the previous EUR/USD quote, you know that 1 Euro is equal 1.4625 US dollar.

The way profit is measured of a currency is by “pips” or point. PIP is the acronym for price interest point. If the EUR/USD moves from 1.4625 to 1.4655 that is 50 pips. A pip or 0.001 is the last decimal place of a currency quotation with the exception of the Japanese Yen and Yen cross rates. A price movement for the USD/JPY from 111.10 to 111.60 will be 50 pips.

The objective and goal for all Forex Traders are to profit from foreign currency movements. The rewards of trading Forex are immense and the amount of money you can earn can be life changing and ultimately leads you to achieve financial freedom. This requires continuous and adequate understanding and training in Forex education. This education may include understanding technical analysis, chart pattern and formation, trade management such as stop loss and profit target and money management. And if you invest and get the right Forex Trading knowledge, you can enjoy long term currency trading success.

Advantages Of Forex Trading

Forex Trading has many advantages as compared to stock or equity trading. Due to the current uncertainty of the stock market, many stock or equity traders are now thinking to trade the Forex market. Their main question and concerned was why trade the Forex market? What are the advantages of the Forex market as compared to the stock market? In this article, I will go through some of the advantages of Forex Trading.

24 Hour Global Market - The Forex market is truly a 24 Hour Global Market opens from Monday to Friday. The Forex market starts each trading day from Sydney, Tokyo, London, and finally to New York. Regardless of whether it is in the day or night, there are always market participants actively trading the Forex market. Forex traders can respond very quickly to any currency fluctuations or breaking news immediately unlike the stock and future market. The ECN's (Electronic Communication Networks) in stock and future market are relatively new products derived as an after hours extension to the regular trading hours. Many of these ECN's have ill liquidity and there is no guarantee that a trade will be executed, or at a fair price. Usually, stock or future market traders would have to wait until the real market opens the next morning in order to execute a trade at fair value.

Advantages Of Forex Trading


Liquidity – The Forex market is the largest and most liquid market in the world. According to a survey conducted by the Bank for International Settlements (BIS) in April 2007, average daily trading volume for the Forex market reached an all-time record high of US$3.2 Trillion. A 71% increase from US$1.9 Trillion that was traded in April 2004. This increase is due mainly to the participation of retail investors utilizing broker’s electronic trading platform. This tremendous turnover is more than all the world’s stock markets combined on any given day. With a daily trading volume larger than all stock market combined, this will ensure price stability. With such liquidity, Forex Trader can open or close a position without much difficulty and most importantly, will receive a fair market price.

Opportunity to Make Money in Both Direction – There is no such thing as “bull” or “bear” market in Forex. In Forex, it is of no concern whether the economy is booming or in a recession. For stock trading, profits are usually made when the economy is booming. But we all know that the economic cycle is cyclical – all things that go up must come down. This is not the case in Forex market. Regardless of how major economies are performing, currency exchange rates are always fluctuating, and this in turn will provide trading opportunity for traders to gain profit.

Simplicity – There are not many major currency pairs traded on the Forex market. Therefore, traders may have a better feel of price movement patterns and behavior. Where as in the stock market, there is literally thousands of stock to monitor and it is not easy to follow so many of them.

Small Trading Capital with High Profit Potential – Nowadays, the minimum amount needed to open a trading account is less than $300. Due to competition, some brokers may even accept much lesser amount. In Forex market, this small trading amount could potentially earn hundreds of dollars per week. In stock market, this may not be possible. Of course both market have potential to lose as well, but in the Forex market, traders can make good money with much lesser trading capital.

High Leverage of 100:1 - 100:1 leverage is commonly available from online Forex brokers. This is substantially exceeds the common 2:1 margin offered by equity brokers, and 15:1 in the futures market. Some brokers even offer higher leverage of 100:1. However, it is important to remember that while this type of leverage allows investors to maximize their profit potential, the potential for loss is equally great. Leverage is a double-edged sword and necessitates the use of proper money management. Without proper risk management, this high degree of leverage cans also lead to big losses as well as gains.

Demo Account – Forex Trading has a unique feature called “Demo Account” or simulate account. This “Demo Account” allows the trader to trade using real-time price on the broker’s trading platform with the exact interface and function as a real account. With this simulated account, Forex trader could gain real market experience in trading without risking any capital.

With Forex Trading unique advantages, its of little wonder that more and more retail investors are participating in the Forex market utilizing broker’s electronic trading platform that are widely and easily available.

Friday, November 22, 2013

Common Chart Indicators In The Forex Trading System

Common chart indicators in the Forex trading system are used by Forex traders as tools to help evaluate the market and minimize trading risks. There are several common charts that are read and evaluated by Forex traders to help them make knowledgeable trading decisions in the market. The charts include Bollinger Bands, MACD, Parabolic SAR, Stochastics, and Relative Strength Index, or RSI.

Bollinger Bands are common charts that are used to measure the volatility of the market. These bands act as mini resistance and support levels. Two trading strategies that involve the Bollinger Bands are the Bollinger Bounce and the Bollinger Squeeze. The Bollinger Bounce strategy goes with the idea that the price generally always returns to the center of the Bollinger Bands. The Bollinger Squeeze is a trading strategy that is utilized to catch breakouts early in the game. Bollinger Bands are best used in markets that are ranging.


 

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MACD is used to catch trends early on and can also help traders to spot trend reversals. The MACD is made up of two moving averages, one slow and one fast, and a histogram, which consists of vertical lines that measure the distance between the two averages. Because of the fact that the MACD uses so many moving averages, there is a lag involved.

Parabolic SAR is an indicator that spots trend reversals, and the SAR stands for Stop And Reversal. This common chart indicator is the easiest of them all to interpret, because this indicator only gives signals that are bullish or bearish. The candlestick chart is used with this indicator, and when the dots are above the candles it is a signal to sell. If the dots on the chart are below the candles, it is a signal for the trader to buy. This common chart indicator is used best in trending markets that consists of downturns and long rallies.

Stochastics are common chart indicators that are used to indicate oversold and overbought conditions. When the moving average lines go above seventy it is an indication to the trader to sell because the market is overbought. When the lines are below thirty, traders are looking to buy because this means the market is oversold. Relative Strength Index, or RSI, is like stochastics because it indicates conditions of overbuying and overselling on the market.

Each common chart indicator has strengths and weaknesses. Smart traders use at least three or four of these indicators to gauge which way the market is going. Common chart indicators can be a valuable tool for Forex traders if they are analyzed correctly.

Copyright © 2007 Joel Teo. All rights reserved.

Discover Some Magic To Beat The Forex: The Elliott Wave Theory For Forex Markets

One of the best known and least understood theories of technical analysis in forex trading is the Elliot Wave Theory. Developed in the 1920s by Ralph Nelson Elliot as a method of predicting trends in the stock market, the Elliot Wave theory applies fractal mathematics to movements in the market to make predictions based on crowd behavior. In its essence, the Elliot Wave theory states that the market – in this case, the forex market – moves in a series of 5 swings upward and 3 swings back down, repeated perpetually. But if it were that simple, everyone would be making a killing by catching the wave and riding it until just before it crashes on the shore. Obviously, there’s a lot more to it.

One of the things that makes riding the Elliot Wave so tricky is timing – of all the major wave theories, it’s the only one that doesn’t put a time limit on the reactions and rebounds of the market. A single In fact, the theories of fractal mathematics makes it clear that there are multiple waves within waves within waves. Interpreting the data and finding the right curves and crests is a tricky process, which gives rise to the contention that you can put 20 experts on the Elliot Wave theory in one room and they will never reach an agreement on which way a stock – or in this case, a currency – is headed.


 Elliott Wave

Elliot Wave Basics

• Every action is followed by a reaction. It’s a standard rule of physics that applies to the crowd behavior on which the Elliot Wave theory is based. If prices drop, people will buy. When people buy, the demand increases and supply decreases driving prices back up. Nearly every system that uses trend analysis to predict the movements of the currency market is based on determining when those actions will cause reactions that make a trade profitable.

• There are five waves in the direction of the main trend followed by three corrective waves (a "5-3" move). The Elliot Wave theory is that market activity can be predicted as a series of five waves that move in one direction (the trend) followed by three ‘corrective’ waves that move the market back toward its starting point.

• A 5-3 move completes a cycle. And here’s where the theory begins to get truly complex. Like the mirror reflecting a mirror that reflects a mirror that reflects a mirror, the each 5-3 wave is not only complete in itself, it is a superset of a smaller series of waves, and a subset of a larger set of 5-3 waves – the next principle.

• This 5-3 move then becomes two subdivisions of the next higher 5-3 wave. In Elliot Wave notation, the 5 waves that fit the trend are labeled 1, 2, 3, 4 and 5 (impulses). The three correcting waves are called a, b and c (corrections). Each of these waves is made up of a 5-3 series of waves, and each of those is made up of a 5-3 series of waves. The 5-3 cycle that you’re studying is an impulse and correction in the next ascending 5-3 series.

• The underlying 5-3 pattern remains constant, though the time span of each may vary. A 5-3 wave may take decades to complete – or it may be over in minutes. Traders who are successful in using the Elliot Wavy theory to trade in the currency market say that the trick is timing trades to coincide with the beginning and end of impulse 3 to minimize your risk and maximize your profit.

Because the timing of each sequence of waves varies so much, using the Elliot Wave theory is very much a matter of interpretation. Identifying the best time to enter and leave a trade is dependent on being able to see and follow the pattern of larger and smaller waves, and to know when to trade and when to get out based on the patterns you identify.

The key is in interpreting the pattern correctly – in finding the right starting point. Once you learn to see the wave patterns and identify them correctly, say those who are experts, you’ll see how they apply in every facet of forex trading, and will be able to use those patterns to trigger your decisions whether you’re day trading or in it for the long haul.

Thursday, November 21, 2013

Broker Forex

A forex broker is defined as an individual, or a firm, that acts as a mediator, matching buyers & sellers for a fee or for the commission. A forex broker is also regularly employed to maintain & monitor the 24-hour Forex market place.

A forex broker is someone who engages in trading & investing online. In forex plenty of of them will be the investors in the forex & the traders will approach the market for the umpteenth time, but it will be first time for the investors & it can appear at times, daunting. This forces us to use the interactive forex brokers. Most of the people will be investing in the stocks & forex.

they can be sure that they will receive the highest level of service obtainable in the forex trading market. The forex broker offers customer support for different countries. they are present as a broker so as to clarify the concern they may have to regard the foreign currencies in trading. The interactive forex brokers can easily make a big success in trading.

The interactive forex brokers have plenty of years of experience in Forex online & all aspects of web trading. Forex Brokers tailor our accounts to suit our needs, taking into consideration our budget, requirements, & risk tolerance. The forex broker will understand the value of having the trust, direct access broker.


 introducing_broker_forex


web trading is now a role plenty of people take on as part of everyday life in every business not only for the forex broker. The web is playing a large role in forex trading. The broker forex maintains the high standard which is built in plenty of companies, which is based upon having guaranteed customer satisfaction & security, All the customers are issued with a bank guarantee.

In today's society, for a majority of investments there is now some level of money exchange or transaction to be made, for trading on the stock market, or any other market foreign exchange is always involved. This has created a diverse market in the forex broker. Most people already have some level of dealing with currencies. The worth of the money you save & invest is determined through the worth of another country's money.

A bank guarantee offers the customers security & peace of mind. Years of the roles of a Forex Broker in forex online trading have provided the forex market trading with the best online brokers & the lowest cost brokers. All the customer information is regarded as highly confidential by the forex brokers. A Forex Broker does not disclose such information to third parties. Most of the companies provide all their clients with a bank guarantee to ensure the return of the invested sum.

WAN MOHD HIRWANI WAN HUSSAIN has been helping people succeed in business for over 25 years. Visit his website and learn how to generate your own exclusive leads http://forex-trader-broker.blogspot.com/

Acquiring A Good Knowledge Of Forex

Trading has been in existence for many years. It's been there ever since man has learned to make a way of living. Before, people traded goods for other goods; or goods for services and vice versa. All of these things are necessary for survival. But now, trading is not mainly about goods or services, it is much more than that.

Forex trading is not new in the market; in fact, it has been there for many, many years now. A lot of people find forex trading as a worthwhile and lucrative venture.

Acquiring-Abundance-the-Spiritual-Way

Forex trading basically involves the buying and/or selling of different foreign currencies in the global market, often referred to as the FX market. Having a portfolio filled largely with bonds, mutual funds, and stocks is simply not enough. Why not include different foreign currencies in your portfolio, this way you can have money in all its different aspects.

The financial market operates twenty four hours a day. The usual trading day starts in Sydney, Australia, and other markets around the globe follows. New York is the last market that opens.


You can find a lot of different currencies in the world. Almost every country has its own currency, but with regards to forex trading, the trading of currencies is only done with what is popularly called the majors. These currencies are highly regarded as majors because they are economically stable compared to other foreign currencies.

The major currencies that are traded in the FX market are Euro, British Pound, Canadian Dollar, American Dollar, Australian Dollar, Japanese Yen, and Swiss Franc.

People who don’t know anything about forex trading may find the business a bit strange, because typically, currencies are used to buy goods and services, and not currencies. May be its time for you to familiarize yourself with forex trading and engage in one yourself. Besides, it is a shame if you don’t know what this particular business means.

Don’t be left out, now you can even do forex trading in your home. You don’t need to go to the actual FX market, as long as you have an internet connection. Choose from among the many software programs available in the market. You can instantly get alerts about the market condition, the prices, and other important information. This software can even tell you when to buy and/or sell and get an instant profit.

There are a lot of things to consider when you start trading. It would be best if you can do a little research and learn what the business is all about; you must understand the whole process to avoid major losses. Forex trading may be a great way to make money, but when done in the wrong way, it can get very expensive.

Forex currency trading is risky compared to stocks and bonds. But it is also a lucrative business because you can actually gain a lot within a split of a second or a few minutes.

If you’re an ordinary individual, you can also take part in forex trading. Don’t think that only large organizations or banks take part in this huge financial market. People from all walks of life can be involved in forex trading as long as they know how to properly do it.

The next thing to do is to find the right system that works best for you. Again, do a bit of research; and you can take advantage of trial versions which are free of charge. Look for customer testimonials; and after carefully considering all the factors involved, you can choose one system that you can make use in your trade.

Another thing is to get a good broker who can effectively help you in your currency trading and together you can devise a strategy. And who knows, you might be the next person to earn a lot of money in the FX market.

If you think you can make it big in the forex market, make sure that you use all the available resources around you to be able to learn about the business. After you have gained knowledge about forex trading, and were able to devise an effective strategy, you are free to start currency trading as soon as possible.

Wednesday, November 20, 2013

Enhance your forex trade with official-forex-trading-system

Forex trade is a part of stock exchange market business that decides the fate of various industries. Given the amount of risk currency trading caries, it makes it an extremely volatile industry. However, if you are a novice who decides to jump into forex trade, make sure you are well versed in the intricacies of the stock exchange along with the trade policies in order to benefit with forex deals. In order to provide you the best forex strategy system, official-forex-trading-system mechanical trading algorithm that provides trading alerts for two denominations of currencies such as USD/EUR and USD/GBP in the West Economic region in the morning.

In the night, the alerts are based upon JPY/USD and JPY/GBP according to Asian Economic region pairs. With the help of official-forex-trading-system, you can avail the facility of short and long day trading positions. Some of the highlights of forex trading signal include two alerts, along with news dives market action that reads and analyses the business forecast in a n east way. You can trade the safest trading system according to the current market condition in consonance with the market as well as country news.


 Enhance your forex trade with official-forex-trading-system

With official-forex-trading-system, you avail the day trading system where positions are opened and closed in the same day. Official-forex-trading-system gives you the option to choose from 3 kinds of accounts such as:

Mini account: As a novice trader, it is best to open such type of account where the leverage is higher in comparison to standard account where you deal with mini contracts. You can start off such an account with $250.

Standard account: If you already have an experience currency trading, you can go forth with Standard account where you trade full contacts. However, in such an account, the leverage is lower in comparison to deposit. You can start this account with $2500.

Demo account: This is a simulated account where you get virtual money of $25,000 to $1, 00,000. You get live quotes and bids that are part of real forex trade.

With official-forex-trading-system, you are saved from brokerage and commissions. In order to maximize your trade profits, it is better to use your risk funds or risk capitals. The advantage of such a mechanical system helps in advanced orders with profit target and stop loss. As a privileged member of official-forex-trading-system, you get daily forex alerts.

As a forex trading signal, official-forex-trading-system helps in boosting your trade in an easy and hassle free. Irrespective of being a novice or a seasoned forex trader, you can improve upon your forex trading with official-forex-trading-system. It is a fool proof system that helps clients from entry till exit with the help of encrypted and secure servers and database. Forex trading was never easy before with the arrival of official-forex-trading-system. This helps you in managing your forex business in a systematic way.

You can subscribe the services of official-forex-trading-system on monthly, quarterly, semi annual as well as annual subscription. For more information about official-forex-trading-system, log on to http://www.official-forex-trading-system.com

Essential Training For Forex Traders

In the world’s largest financial market where exchanges reach up to trillions of dollars each day, many people would really want to participate in this market. Aside from being the largest financial market in the world, Forex is also the most liquid market in the world where trades are done 24 hours a day.

A lot of traders have become very rich trading in the Forex market. And, many people who trade in the Forex market everyday have found a great way to replace their day jobs. Some even became millionaires almost overnight by just trading in this financial market.

Trading in the Forex market can be very attractive. However, you should also know that there have been people who suffered extreme financial losses in the Forex market. It is true that the Forex market offers a very good money-making opportunity to a lot of people, but it also has its risks.

It is a fact that people who didn’t have the right knowledge and skills trading in the Forex market suffered huge financial losses and some even went into debt. So, before you enter the Forex market, it is essential that you should have the necessary knowledge and skills as a Forex trader in order to minimize the risk of losing money and maximize the potential of making money.


 Essential Training For Forex Traders

Many people who were successful in the Forex market have went through a Forex trading course to get the knowledge and skills needed to successfully trade in this very liquid and very large financial market.

In a Forex trading course, you will learn about when it is the right time to buy or sell, chart the movements, spot market trends and also know how to use the different trading platforms available in the Forex market.

You will also be familiarized with the terminologies used in the Forex market. Even the basic knowledge about trading in the Forex market can be a great help with your money-making venture in the world’s largest market.

There are different Forex trading courses available, all you need to do is choose one that suits your needs as a trader. There are crash courses where all the basic things about Forex will be taught to you in a short period of time, full time online courses, where you will learn all about Forex through the internet and there are also full time real life classroom courses where you can learn the ropes about Forex in a real classroom with a live professor.

You can also become an apprentice. However, in order to learn a lot about Forex as an apprentice, you need to make sure that you have a seasoned Forex trader who can share a lot of things to you about the Forex market.

Here are some of the basic things you should look for in a Forex trading course in order for you to get the sufficient knowledge about Forex trading:

•Margins •Leveraging •Types of orders •Major currencies

A good Forex trading course will also explain a lot about the fundamental and technical analysis of charts. As a trader, knowing how to analyze a chart is an essential skill that you should have. So, when you are looking for a Forex trading course, you should look for a course that offers fundamental and technical analysis instruction.

Stress plays a vital part in Forex traders. Knowing how to deal with stress is also a skill that you should develop. A good Forex trading course should teach you how to deal with stress and trade effectively and efficiently.

As much as possible, you should look for a Forex trading course that offer actual trading systems where students can trade real money on the Forex market or at least trade on dummy accounts in a simulated Forex market. This hands-on experience will greatly benefit you. Besides, the best way to learn about anything is by actually experiencing it. Live trading and simulations should be offered in a Forex trading course.

So, if you plan on getting involved in the Forex market, consider finding all these things in a Forex trading course. Developing the right knowledge and skills in trading in the world’s largest and most liquid market in the world will definitely help you make it to the top and achieve your dreams as a Forex trader.

Tuesday, November 19, 2013

Bold Insights On The Euro's Performance In The Forex Markets

" A smooth sea never made a skillful mariner!" - Quote by an Addicted forex Trader

The forex, also designated the foreign trade market is the largest and greatest liquid exchange market in the planet. Unlike the stock exchange, the forex does not suffer a specified trading location or termination period. Instead, over $2 trillion are traded and sold every day. The forex never closes and exchange takes place twenty-four hours a day along the business week.

There are currently six significant currency pairs that are utilized and traded each day on the forex. These six pairs explain for up to 90 percent of the selling bustle each and every day. These embrace the euro and the US dollar (EUR/USD), the Japanese yen and the US dollar (JPY/USD), the US dollar and the Swiss Franc (USD/CHF), the Australian dollar and the US dollar (AUD/USD), the British pound and the US dollar (GBP/USD) and the US dollar and the Canadian dollar (USD/CAD).

Bold Insights On The Euro’s Performance In The Forex Markets


Each of these currencies operates a bit differently in the forex and fluctuates a little on a regular basis. The Euro is extremely vital in the foreign exchange currency. It does not simply stand for one country, but a sum of twelve countries in Europe. The countries that are members of the European Union and identify the Euro as currency are Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain, and Sweden. Out of the fifteen members of the European Union, just two do not respect the euro as the authorized currency. These are Denmark and the United Kingdom. Sweden recently began using the euro in 2005.

Currently the euro is comparative to the US dollar and is worth around 90 cents to the dollar. In 1999, all of the European countries locked the cost of their own currencies in reference to the euro. This implies that all of the currencies were valued round the same as the euro. These countries before long began using the euro as their money so that the currency could be utilized across the region and utilized immune from the demand for obtaining variant forms of currency. This change helped bloster the euro and become a more accepted form of currency.

The use of a unified currency across myriad countries has both advantages and disadvantages in connection to the forex. One of the notable advantage of the euro is that the barter rate is lowered, thereby making investment across environs easier. There are risks in the changes in the cost of the currency. This implies that companies see it risky to import or export beyond their currency domain and that yield could be lowered. Using a broad form of currency eliminates this worry. It creates a additional gamble free import and export room, which once relies thoroughly on intra-European exports.

Additional advantage of numerous countries using the euro is that it eliminates the demand for adjusting fees. When a individual or corporation has the requirement to exchange money, there is a fee desired. Many financial institutions levy assorted manner of percentage for adjustment and while it is a relative small amount, it adds up. Multiple changes add up all across Europe. Dropping these fees saves the economy in the long run.

When evaluating at the forex and the way the euro performs, it is crucially vital to recall that using one form of currency creates a deeper monetary market. This implies that the European markets are much more liquid than in the past. There The idea that it will create a deeper financial market implies it will act upon they way the consumers expend the currency all across the region. This will in turn, prompt to increased amounts of money that is played out on the stock market.

Now that the euro has become one of the biggest currencies in the planet, trading for it and with it will increase on the forex. The forex is customarily bedevilled by the US dollar, but the euro is forcing a hefty stand. The use of this currency all about the European countries is delightful in numerous ways and it is thoroughly established all over the globe. Both businesses and individuals gain from the use of the euro in these countries ,free of the fret of having to switch the money as much as in the past.

This information was a culmination from many different places and resources. You should never just believe one resource and you should study a subject from a few different perspectives.

Achieving Maximum Success In Forex Trading

Many people who enter the forex field are unaware of how crucial a proper forex trading training is. Relying o intuition is only enough to get you by minimally. If you do not know how to analyze the market properly and manipulate it, you will not be able to succeed in forex trading. Just like any other endeavor in life, you need to learn the trade before you begin practicing it. Trying to trade in the forex system without learning the system first, would be like trying to play any game without knowing the rules and objective beforehand. It just doesn’t make sense.

There are a few elements in forex learning that help the forex trader succeed in the market. The first element is discussing the forex market in depth. There are three elementary concepts a forex trader must know when devising a proper forex trading system for his personal trading needs. He needs to learn money management, risk and execution. These three elements are essential to trading properly. If applied correctly, a trader may use his system to minimize his risk in the market and maximize his profit. He must first devise a system though, based on the three fundamentals.

Achieving Maximum Success In Forex Trading


In order to do so, he needs to learn about the fundamentals from an experienced forex trader or reliable forex source. The system is an equation and if mastered can bring in lots of money to the trader. Managing money refers to knowing what a trader may invest and what he may not. The biggest financial risk is investing more than your account can cover. A trader should not be conducting deals with amounts that can put his account into a negative balance. Professional traders advise to begin with small investments and stop loss order strategies to ensure that the trader does not get wiped out after his or her first trade.

The forex learning classes all talk about this concept and explain how to manage your money properly.

The second element studied is market levels and their analysis. Since the market is very unpredictable at times and values can change suddenly and instantly, the professionals teach traders about price behavior and discipline in trading. They discuss the fact that buying a currency at a low value and then selling it when its value increases is not the only concept essential in trading. There is a lot more involved. The third element discussed in forex trading classes or courses is detachment.

It is very important for traders to know how to set their emotions aside when trading in the forex market. To always follow your mind and head and not let your emotions mislead you. Basically the psychology of forex trading and the correct way to approach it. Not to behave impulsively in trading because it can lead to catastrophic disasters. To always think before you jump. The fourth and last concept is method.

Monday, November 18, 2013

Benefits Of Using Forex Software

As the Internet grows in popularity, more and more individuals are learning about the benefits of trading currencies on the Forex market. In recent years, Forex trading has become known as a great way of investing money. But if you do decide that you want part of the action, you should do some quick research on the Forex software packages on the market. They can help you trade easily and from the comfort of your home and office.


One great benefit about Forex software is that it can perform many tasks for you, and keep you up-to-date on the values of the currencies you are trading. If you had to do these tasks manually, you would have to spend many hours fiddling with newspaper reports, charts and graphs. But with the push of a button, you can know how and when to trade. With a general knowledge of where the currency is heading, you can allow your trades to run, or stop them as your position reverses.


Benefits Of Using Forex Software


But not only does Forex trading software allow you to manage your funds, it also provides you with the opportunity to withdraw or deposit money into your Forex account when you need to. This means you can leave your money in an interest bearing account until you are ready to trade. This way, you earn interest on your money and avoid having extra money sitting idly in your trading account.



 


Also if you want you can set up the Forex software so when the currency drops to a certain level or has reached a specified value, then it will automatically sell it for you. By doing this you are not only minimizing your risks, but it also means that you do not need to keep a constant watch and control over your profits.


However the best way of ensuring the software you are buying is right for your needs is to test it before you start investing your hard earn money. A good Forex software package will allow you to practice with the software using play money while you learn. Then once you are comfortable with trading, you can deposit some of your money into a trading account and start trading. It is best if you practice as much as possible before. This way you will be ready for any losses that may occur in the beginning. From the start it is best if you only invest small amounts of money when trading until you feel more confident with the software.


Forex software comes either as a desktop or Internet based package. The Internet software systems have several advantages over the desktop versions. One of these advantages is that you do not need to deal with maintenance issues. The software seller often looks after these technical goings-on. Security is another issue you don't have to concern yourself with.


The seller will already have in place more security measures than you can afford on a desktop version. The systems offer data encryption on a secure server and will therefore protect you for hackers and thieves. Plus, Internet based systems offer you more convenience than a desktop model. You can check your account no matter where you are in the world. All you need to do is key in your login and password information. You can then view your currency trading account in a secured environment.

Easy To Follow and Profitable FOREX Signaling Service

Over a short period of time, the foreign exchange market has managed to become the world's largest financial market. Until recently, only large trading houses could utilize the potential of the FOREX market, but the widespread use of the internet and other communication devices have opened up the FOREX arena not just to small and medium traders, but also to individual investors. Needless to say, a large number of individual investors have jumped into the FOREX trading business and are busy making profits online while trading from their personal computers. In fact, you can also start trading in FOREX through one of the many easy to follow & profitable FOREX signaling services that are available on line.


 Easy To Follow Profitable FOREX Signaling Service

A number of FOREX brokers and traders are offering individuals trading platforms through their online trading portals that combine FOREX signaling services along with trading options. You can become a member of one of these easy to follow & profitable FOREX signaling services and starts making money through FOREX trading. However, it is advised that you try to gain some background knowledge and information about FOREX trading and signal interpretation and action before putting loads of your hard earned money into FOREX trading, for while the profits in this business can be humungous, the losses can also be devastating. As a beginner, you should first find a FOREX signaling and trading platform that you understand well and start trading with small amounts, gradually increasing your risks as you understand the market better.

The best easy to follow and profitable FOREX signaling services is Prosignal-forex.com . These services are easy to understand for beginners and show real and honest results. No matter what service you use, you should try to learn as much about the trade as possible so that you understand the nuances of signaling. Another thing to keep in mind is to try out a service before signing up. Most portals allow users a "demo" or free use of their service for a certain period of time when they can decide whether they want to sign up or not. Sign up with a service only when you get the hang of it and when you are sure that you can handle your transactions well. It is a good idea to begin your subscription when the month begins, so that you can compare your results with that posted by the service that you are using. And even if you think that you do understand everything, it is a good idea to play safe with small sums of money till you start making constant profits.

Sunday, November 17, 2013

Comparing The Forex With Investing In Insurance

Investing in Forex is more risky but the gains that can be achieved are a lot larger than insurance, although insurance is a very good long term investment.

While there are innumerable kinds of life insurance available, they can be simplified into two general types: those that insure against death only and those that not only insure against death but make a provision for savings in addition to insuring. The first type is called term insurance.

It pays off only in the event of death. While it is worth nothing to the individual himself, since he never gets his hands on any of the money that went to pay the premiums, it does generally provide the maximum death benefits per dollar of premiums at the younger ages. Its sole purpose is to insure against death. As its name implies, it is written for a term—1, 5, 10, 20, 25 or 30 years—and if the term expires before the insured dies, that is that. There are no more premiums due and he gets nothing from the insurance company except the right to renew the policy for a longer term and/or the right to convert the policy to permanent insurance without a medical examination.

Comparing The Forex With Investing In Insurance


Policies other than term insurance cost more than term insurance initially and the additional premium provides essentially one thing savings for the person insured. Now the main question to answer from an investor's point of view is, "What do I get for this additional premium in the way of a return on my money?"

If a ten-year term policy is purchased the average net cost per $1,000 is $3.91 per year, and if a 20-year term policy is purchased the average net cost is $3.82. It gradually goes down according to the length of the policy, but if term insurance were bought each year, for just one year, the annual rate would be higher with each renewal since the older a person is the greater the likelihood of his death.

If he waits until he gets to age 55 the cost of term insurance rises tremendously. A five-year term policy at age 55 costs $21.85 per $1,000 and a ten-year policy $23.26. Term insurance usually may be maintained only until the insured is age 65. Thus, if a man kept term insurance to age 65, but died at age 66, his beneficiaries would get nothing and all of the premiums he had paid for this insurance would go down the drain.

These policies all provide nothing in the way of savings and there is no return on your money that you, the insured, will ever get. Your beneficiaries will get the face of the policy at your demise.

In contrast to term insurance there is permanent insurance. This is insurance that may be kept as long as the insured wishes to keep it. If the insured lives, he has built up a substantial cash value in his policy which he may take in cash or as income or which he may leave with the insurance company as "paid up" insurance.

The most popular form of permanent life insurance is convertible whole life insurance, sometimes called ordinary life or straight life.

Convertible life requires the lowest premium of all permanent insurance plans. Premiums may be paid on this policy as long as the insured lives or for a shorter period of time depending upon the objective of the insured.

Permanent insurance has a level annual premium for the duration of the premium paying period. The annual premiums in the early policy years are in excess of the actual premium needed to cover the risk. The excess premium is called the reserve and it is this reserve, together with interest earned on the reserve plus future earnings, which provide the cash needed to pay death claims in the later years.

If we consider that the 20-year term rate is the pure cost of insurance, and that the difference between this rate and the straight life rate represents the savings element of his premiums, you determine this savings element by subtracting $3.82 from $17.70, which equals $13.88. Over 20 years this savings element amounts to $277.60. For this total of $277.60 put in in premiums, $403.94 was collected—a profit of $126.34 over 20 years, or $6.31 per year.

The $277.60 was not put in all at once, but over a period of 20 years. Nothing was invested at the beginning of the 20-year period, and in the twentieth year the whole sum was invested, so that the average investment for the period was halfway between nothing and $277.60—$138.80. The return on this figure is the true return, and $6.31 per year on $138.80 is a little under 5%.

Let us consider the Retirement Income policy at 65, bought by a person 25 years old. Over a period of 40 years, he puts in $30.92, the annual premium, times 40, or $1,236.80. If the average net cost of the pure insurance feature is assumed at $7.79 per annum and the cost is subtracted from the total annual premium of $30.92, we get the investment in the savings element of the insurance, $23.13 times 40, or $925.20. For these invested savings the insured gets back $2,326.81 at age 65-40 years later-a profit of $1,401.61.

If we use the same reasoning in regard to the average amount invested over the period (one half of $925.20), we arrive at an investment of $462.60. The profit or return per year is determined by dividing the total profit of $1,401.61 by 40 years and we get $35 per year. This $35 represents a return on the investment of $462.60, or 7½% per year.

How good an investment is this $462.60 that grows to $2,326.81 in 40 years? It is almost identical with an investment of $462.60 which returns 4% per year if the 4% is left in the investment to be compounded annually. The discrepancy between the 7½% per year and the 4% is explained by compounding.

The 4% compounded is not a bad yield. It is roughly equal to the return of an insured building and loan association in the year 1962, but not as good as the better yielding ones.

Now the characteristic of the Retirement Income policy is that premium payments end at age 65. The insured is now entitled to $2,326.81 if he left his dividends in.

Further, the insured can have his $1,597 (due him if he took his dividends out) paid to him and/or his heirs at the rate of about $10.00 per month for 157 months (a full refund). If he is still living at the end of the 157 months, the insured would continue to receive $10.00 per month for the balance of his lifetime.

If desired, an alternate amount or alternate type of annuity could be selected.

In addition to the guaranteed amounts, there would, of course, be dividend income payable each month in accordance with the company practice. The present income dividend is about 10% extra per month.

All of the above income would be tax-favored as compared to ordinary investment income.

The income or annuity return per $1,000 of accumulated cash in the insurance policy is guaranteed by contract as of the date of issue for future delivery. It is interesting to note that the cost of an annuity at 65 has been increased seven times in the last 20 years as the science of geriatrics has prolonged life.

There is one type of policy which represents the savings element alone and does not provide the insurance element. This is the annuity. You make a cash payment early in life, or periodic payments throughout your life, in order to get an income when you retire or pass a certain age.

At age 25, for an annual premium of $100 for 40 years, you can get (a) $8,201.47 in cash at age 65 or (b) monthly payments of $51.34 for the rest of your life.

You have invested in 40 years 40 times $100 or $4,000, and at age 65 this has grown to $8,201.47. It has better than doubled.

To find the average annual return, we determine the profit ($8,201.47 less $4,000) which equals $4,201.47 and divide this by 40 to get an annual profit of $105.

The average investment is halfway between zero and $4,000 and is equal to $2,000. The annual return is thus $105 divided by $2,000, or 5¼%. This represents considerably less than 4% compounded annually.

If the option of $51.34 per month is selected instead of the sum total of $8,201.47, it takes between 13 and 14 years to exhaust the total, and if you live longer than this number of years, you have come out ahead.

Most other policies provide savings, and the return on these savings is what we are concerned with here. While the yield on the savings is low it must be pointed out that by entering into an insurance contract the insured is forced to save what he might otherwise spend. A second advantage in buying policies other than term policies is that if the insured falls on hard times these policies are worth something in cash to help tide him over; and if he can't keep up the premiums there is a cash reserve to pay premiums for awhile. If term insurance premiums cannot be met the policy lapses.

One insurance company took what it considered to be a typical year as regards death claims and determined what the insured's family got back in relation to what was paid. It determined that the average insured who was paid off that year collected $1.75 for every $1.00 put into premiums, and the average number of years each policy had been in force at the time of death was 22.6. The return was 4% per year, and the insurance company points out that the 4% return was tax free in that no income tax was taken out either as the policy went along or when final payment was made. This 4% equals 8% in income for a person in the 50% tax bracket.

The return on the savings element of life insurance can be determined by reference to the attached table. The major types of policy have been compared for ages 25, 40 and 55 as to annual premium, value of the policy in cash at different ages and monthly payments which can be received from age 65 to the end of one's life.

Two of the greatest benefits of life insurance depend on: (1) inheritance taxes and (2) the uncertainty as to when the insured will die. These factors are not related directly to return on investment but cannot be minimized in any consideration of life insurance.

Long term it is very difficult to lose money if not impossible and the returns can be good.

The Forex is more risky but you can limit your risk by using good Forex software.

Currency Forex Trading: Betting The Ups And Downs

Total the amount of money involved in a day’s trading on the US stock and Treasury Bills markets by three, and you’ll still have less than a third of the amount of money which exchanges hands on the currency Forex--foreign exchange--market. The currency Forex market is where the money of one country--US dollars, for instance—is exchanged for that of another, like Japanese yen.

But unlike the world’s other economic markets, currency Forex trading is not centralized. There is no Wall Street or Throgmorton Street with an historic exchange building; Currency Forex trading exists only over telephone wires and Internet connections.

But exist it does; and it involve a global network of financial institutions, individuals, and banks all working around the clock and unhampered by international borders. Time and physical distance have no meaning in the currency Forex market.


 Currency Forex Trading: Betting The Ups And Downs

At one time currency Forex trading was the domain of banks that held large amounts of money in various currencies so that they could participate in global investment and business opportunities. Individuals could participate in currency Forex trading only by going through their banks. But when exchange rates became unregulated the volume of currency Forex trading began to mushroom.

What Is Currency Forex Trading?

When either a private corporation or government wishes to either buy or sell products or services in another country, it has to engage in “bartering” its national currency against the currency of the country where it wishes to do business. There are also large numbers of investment firms who trade the currency Forex market as a more speculative part of their portfolios. For more info see http://www.e-forextradingsystem.com/ on e-Forex Trading.

And even individuals can participate in trading the currency Forex market, provided they have sufficient risk capital and are willing to do the homework necessary to master the art of currency Forex trading, which can be extremely complicated.

Currency Forex Trading At Home

Many individuals are drawn to the currency Forex market because they see it as a lucrative business which can be run from the convenience of their homes. All that is required is a personal computer with an Internet connection and a workstation organized with to create a minimum of distractions. They see the currency Forex market as both inflation and deflation proof, and a way to make money regardless of the worldwide economic situation.

Investors make or lose money when trading the currency Forex market depending on the fluctuations of the currency exchange rates. All currencies are constantly appreciating or depreciating in value when compared to one another, and it is up to the individual investor to understand how conditions around the globe will increase of decrease currency values before risking his or her money trading those currencies.