Forex : forex basic guide

Forex คืออะไร?

2008-04-19T07:38:00.001-07:00

Forex คืออะไร?

Forex ย่อมาจาก Foreign Exchange บางครั้งเรียกย่อว่า FX คือ อัตราแลกเปลี่ยนเงินตรา
Forex Market หรือ ตลาด Forex เป็นตลาดการเงินที่ใหญ่ที่สุดในโลก ด้วยมูลค่าการซื้อขายมากกว่า US$ 2 trillion (2 ล้านล้านดอลลาร์) ต่อวัน เป็นตลาดการเงิน ที่มีสภาพคล่องสูงมาก ตลาดเปิดทำการซื้อขาย 24 ชั่วโมง ตลอดวันทำการ โดยหยุดการซื้อขาย แค่วัน เสาร์-อาทิตย์เท่านั้น
การซื้อขายใน ตลาด Forex เป็นการซื้อขายค่าเงิน โดยซื้อเงินสกุลหนึ่ง ในขณะเดียวกัน ก็ขายเงินอีกสกุลหนึ่งออกไป หรือเป็นการจับคู่แลกเปลี่ยน ซื้อขายค่าสกุลเงินนั่นเอง ตัวอย่างเช่น เงินสกุลยูโร/ดอลลาร์สหรัฐฯ (EUR/USD) หรือ เงินสกุลดอลลาร์สหรัฐ/เยนญี่ปุ่น (USD/JPY) เป็นต้น

ค่าเงินสกุลต่างๆ ที่มีการแลกเปลี่ยนซื้อขายในตลาด Forex ที่สำคัญ มีดังนี้
การที่เราจะซื้อขายใน ตลาด Forex จะต้องเปิดบัญชีกับ Forex Broker เป็นโบรกเกอร์ทางอินเตอร์เน็ต เราสามารถเทรดออนไลน์ได้ ตลอด 24 ชั่วโมง ตั้งแต่เช้าวันจันทร์ ถึง คืนวันศุกร์ สำหรับมือใหม่ ยังไม่เคยเทรดเลย แนะนำลองเปิดบัญชีของ Marketiva ดูครับ มีเงินปลอมให้เล่น $20000 (เบิกเป็นเงินจริงไม่ได้ เอาไว้ฝึกเทรด) และมีเงินจริงให้ฟรีอีก $5 ดอลลาร์ หรือ โบรกเกอร์ที่แนะนำ คลิกที่นี่

ตารางเวลาเปิด-ปิดตลาด ของแต่ละโซน (ค่าเงิน)

ตลาดของแต่ละโซนจะเปิด-ปิด คาบเกี่ยวกันตลอดทั้งวัน ทำให้เราสามารถเทรดได้ 24 ช.ม. แต่ช่วงที่เหมาะแก่การเทรดคือช่วง ตลาดยูโร (EUR) เปิด ถึง หลังตลาดอเมริกา (USD) เปิด 4-5 ชม. คือแถบสีแดงด้านบน ประมาณเวลา 13.00 - 24.00 ตามเวลาไทย ปกติจะเป็นช่วงที่ตลาดผันผวน ราคามีการเปลี่ยนแปลงมากกว่าช่วงอื่น

การบริหารเงินจาก เงินฟรี $5 ให้ได้ $20480 ใน 1 ปี

บรรทัดที่ 4 จากรูปด้านบนที่ เป็น % พื้นสีม่วงอ่อน คือแผนการเทรด ว่าเราจะเทรดครั้งละกี่ % ของเงินทุน บรรทัดที่ 3 pip/day คือเป้าหมายจำนวนจุดที่เราต้องทำใน 1 วัน และ บรรทัดที่ 2 pip/month คือจำนวนจุดที่เราต้องทำใน 1 เดือน ถ้าทำตามแผนได้ทุกวันในเดือนที่ 13 เราจะได้ ยอด $20480
ตัวอย่าง ถ้าเราใช้แผนการลงทุนแบบ 20% (แถบสีเขียว) ในเดือนแรก เราจะลงทุนวันละ 1$ หากเราทำได้วันละ 25 จุดทุกวัน พอครบ 1 เดือน ได้ 500 จุด เราจะได้กำไร 100% ได้เงินทุนเพิ่มเป็น $10 พอเดือนที่ 2 ก็ลงเพิ่มเป็น ครั้งละ $2 ทำตามตารางแบบนี้ไปเรื่อยๆ เพิ่มขึ้น 100% หรือ 2 เท่าในทุกเดือน จนครบทุกเดือน ก็จะได้ยอดเงินตามเป้าหมาย
หากเราเลือก แผนลงทุนที่ใช้เทรดต่อครั้งด้วย % ลดลง เราก็ต้องทำ จุด ให้ได้มากขึ้นต่อวัน และในทางกลับกัน หากลงทุนด้วย % เพิ่มขึ้น เราก็ทำกำไรด้วย จุด ที่น้อยลง
อันนี้เป็นตัวอย่างแบบแผนการลงทุน อาจจะเห็นว่าง่ายๆ แต่จริงๆ เวลาเทรดจะไม่ง่ายแบบในตารางนี้นะครับ เราจะต้องฝึกฝน ศึกษาหาความรู้ เพื่อให้เราชำนาญ เทรดให้ได้ตามเป้าหมายที่กำหนด ซึ่งไม่ใช่เรื่องง่ายเลย แนะนำให้ลองฝึกจากเงินปลอมก่อนให้เข้าใจ จึงเริ่มเทรดด้วยเงินจริง

การลงทุนคือความเสี่ยง ยิ่งผลตอบแทนเยอะความเสี่ยง ก็ยิ่งเยอะตามไปด้วย จึงควรศึกษาให้เข้าใจก่อน การลงทุนครับ

1. ศึกษากราฟ รูปแบบราคา อินดิเคเตอร์ เพื่อหาแนวโน้มของราคา และสัญญาณในการเข้าเทรด การหาจังหวะปิดเพื่อทำกำไร เหล่านี้สามารถหาศึกษา ได้ตามเว็บต่างๆ ตามลิงค์ด้านขวามือครับ
2. ศึกษาหลักการบริหารเงินในบัญชี และบริหารความเสี่ยง
3. ขยันศึกษาหาความรู้เพิ่มเติมเสมอครับ

What is FOREX?

2008-04-19T07:36:00.001-07:00

What is FOREX?

FOREX (FOReign EXchange market) is an international foreign exchange market, where money is sold and bought freely. In its present condition FOREX was launched in the 1970s, when free exchange rates were introduced, and only the participants of the market determine the price of one currency against the other proceeding from supply and demand.

As far as the freedom from any external control and free competition are concerned, FOREX is a perfect market. It is also the biggest liquid financial market. According to various assessments, money masses in the market constitute from 1 to 1.5 trillion US dollars a day. (It is impossible to determine an absolutely exact number because trading is not centralized on an exchange.) Transactions are conducted all over the world via telecommunications 24 hours a day from 00:00 GMT on Monday to 10:00 pm GMT on Friday. Practically in every time zone (that is, in Frankfurt-on-Main, London, New York, Tokyo, Hong Kong, etc.) there are dealers who will quote currencies.

FOREX is a more objective market, because if some of its participants would like to change prices, for some manipulative purpose, they would have to operate with tens of billions dollars. That is why any influence by a single participants in the market is practically out of the question. The superior liquidity allows the traders to open and/or close positions within a few seconds. The time of keeping a position is arbitrary and has no limits: from several seconds to many years. It depends only on your trading strategies. Although the daily fluctuations of currencies are rather insignificant, you may use the credit lines, that are accessible even to currency speculators with small capitals ($ 1,000 - 5,000), where the profit may be impressive. (You can learn more about it in the section: The main principles of trading.)

The idea of marginal trading stems from the fact that in FOREX speculative interests can be satisfied without a real money supply. This decreases overhead expenses for transferring money and gives an opportunity to open positions with a small account in US dollars, buying and selling a lot of other currencies. That is, on can conduct transactions very quickly, getting a big profit, when the exchange rates go up or down. Many speculative transactions in the international financial markets are made on the principles of marginal trading.

Margin trading is trading with a borrowed capital. Marginal trading in an exchange market uses lots. 1 lot equals approximately $100,000, but to open it it is necessary to have only from 0.5% to 4% of the sum.

For example, you have analyzed the situation in the market and come to the conclusion that the pound will go up against the dollar. You open 1 lot for buying the pound (GBP) with the margin 1% (1:1000 leverage) at the price of 1.49889 and wait for the exchange rate to go up. Some time later your expectations become true. You close the position at 1.5050 and earn 61 pips (about $ 405). For the calculation of 1 pip click here.

Everyday fluctuations of currencies constitute about 100 to 150 pips, giving FX traders an opportunity to make money on these changes.

In FOREX, it's not obligatory to buy some currency first in order to sell it later. It's possible to open positions for buying and selling any currency without actually having it. Usually Internet-brokers establish the minimum deposit such as $ 2000, for working in the FOREX market, and grant a leverage of 1:100. That is, opening the position at $100,000, a trader invests $1,000 and receives $99.000 as a credit. The major currencies traded in FOREX, are Euro (EUR), Japanese yen (JPY), British Pound (GBP), and Swiss Franc (CHF). All of them are traded against the US dollar (USD).

In order to assess the situation in the market a trader has to be able to use fundamental and/or technical analysis, as well as to make decisions in the constantly changing current of information about political and economic character. Most small and medium players in financial markets use technical analysis. Technical analysis presupposes that all the information about the market and its further fluctuations is contained in the price chain. Any factor, that has some influence on the price, be it economic, political or psychological, has already been considered by the market and included in the price. The initial data for a technical analysis are prices: the highest and the lowest prices, the price of opening and closing within a certain period of time, and the volume of transactions.

A technical analysis is founded on three suppositions:

Movement of the market considers everything;
Movement of prices is purposeful;
History repeats itself.

That is, technical analysis is a statistical and mathematical analysis of previous quotes and a prognosis of coming prices.

A number of technical indicators have been installed into the PRO-CHARTS trading system. Analyzing the indicators one can come to the conclusion about further movements of the quoted currencies. For a more detailed description of the indicators, analyzing price charts and volumes of trading, click here.

Fundamental analysis is an analysis of current situations in the country of the currency, such as its economy, political events, and rumors. The country's economy depends on the rate of inflation and unemployment, on the interest rate of its Central Bank, and on tax policy. Political stability also influences the exchange rate. Policy of the Central Bank has a special role, as concentrated interventions or refusal from them greatly influence the exchange rate.

At the same time one should not consider fundamental analysis just as an analysis of the economic situation in the country itself. A far bigger role in the FOREX market belongs to the expectations of the market participants and their assessment of these expectations. Various prognoses and bulletins, issued by the participants, have a strong influence on the expectations. Very often an effect of the so-called self-filfilling prophecy occurs when market players raise or lower the exchange rates according to the prognosis. But a deep and thorough fundamental analysis is available only for big banks with a staff of professional analysts and constant access to a wide field of information.

In spite of these different approaches, both forms of analyses complement one another. Traders who act on the basis of a fundamental analysis, have to consider some technical characteristics of the market (the main rates of support, such as resistance and resale), and supporters of the technical approach to the market must track the main news (interest rates, important political events).

The main merits of the FOREX market are:

The biggest number of participants and the largest volumes of transactions;
Superior liquidity and speed of the market: transactions are conducted within a few seconds according to online quotes;
The market works 24 hours a day, every working days;
A trader can open a position for any period of time he wants;
No fees, except for the difference between buying and selling prices;
An opportunity to get a bigger profit that the invested sum;
Qualified work in the FOREX market can become your main professional activity;
You can make deals any time you like.

The Main Principles of Trading

In contrast to exchange transactions with real supply or real currency the participants of FOREX use trading with a margin deposit; i.e. marginal or leverage trading. In marginal trading, each transaction has two obligatory stages (they can be divided by period of time, which can be as long as you like): buying (selling) of currency at one price, and then selling (buying) it at another (or at the same) price. The first transaction is called opening the position, the second one, closing the position.

Opening a position, a trader furnishes a deposit sum from 0.5 to 4 per cent of the credit line, granted for the transaction. So, in order to buy or sell 100,000 US dollars for Japanese yens, you will not need the whole sum, but only from 500 to 2000 US dollars depending on your policy of controlling risks. When the position is closed, the deposit sum returns, and calculation of profits or losses is done. All the profit or losses caused by the change of currency rates is credited on your account.

Let's take a concrete example of getting a profit from the changing the rate of the Euro, from 0,9162 to 0,9292. If you have anticipated this change by using technical or fundamental analysis, you can buy the Euro cheaper for dollars, and then sell it back at a higher price. For example, if you choose leverage 1:100, then 99,000 dollars of the credit line, granted by the Internet broker, is added to 1000 dollars, and you buy the Euro at the price of 0.9162. As a result of this transaction we get: $ 100,000 / 0.9162 = Euro 109.146, 47.

When the rate changes (an average daily change of Euro is about 70 to 100 pips), you close the position and sell the Euro for dollars, but at the rate of 0.9292. You get 109,146. 47*0.9292 =101,418.89 dollars. Your profit is $ 1,418.89. The same transaction with leverage 1:200 would give you $2, 837.78 of profit, with leverage 1:50 the profit would be 709.45, with leverage 1:25 - 354.72.

We'd like to remind you that the higher the credit leverage, the higher is your profit if the fluctuation of the currency rate was anticipated correctly. However, if your anticipation was wrong, your losses will be bigger.

One cannot feel confident in the FOREX market without a thorough knowledge of the terms used there.

Foreign exchange quotes are a relation between currencies.

USDCHF - the cost of $1 in Swiss Francs.
USDJPY - the cost of $1 in Japanese yens.
EURUSD - the cost of Euro 1 in US dollars.
GBPUSD - the cost of 1 GBP in US dollars.

That is, quotes are expressed in the units of the second currency for a unit of the first one. For example, quote USDJPY 108,91 shows that $1 costs 108,91 Japanese yens. Quote EURUSD 0.9561 shows that 1 Euro costs 0.9561 US dollars.

The last figure in the quote is called "pip". The cost of the pip is different for every currency, and depends on the leverage and current quote.

The formula for calculating 1 pip is:

100,000/current quote without commas * K

where К=1 at leverage 1:100,
К=2 at leverage 1:200,
К=0,5 at leverage 1:50,
K=0,25 at leverage 1:25.

Examples:

USDJPY = 108.91 leverage 1:100
100.000 / 10891 х 1 = 9,18 USD

EURUSD = 0.9561 leverage1:200
100.000 / 9561 х 2 =20,92 USD

GBPUSD and EURUSD are direct quotes, i.e. when the chart goes up, GBP and EUR become more expensive, and when it goes down, the currencies become cheaper. USDCHF and USDJPY are backward quotes, and when the chart grows, prices on CHF and JPY fall, and when the chart goes down, the prices grow.

On direct quotes you buy according to ASK and sell according to BID. With backward quotes, you buy according to BID and sell according to ASK .

Trading in the FOREX market is realized in lots. When you open a position, you can choose the number of lots you want from 1 to 10. One lot equals $ 100,000. The deposit sum for one lot will vary from $500 to $2000, depending on the credit leverage you choose. Leverage is a financial mechanism that allows crediting speculative transactions with a small deposit. We give you an opportunity to choose a credit leverage in the range of 1:200 to 1:25.

In the course of trading you can fix your profit or cut off your losses according to the commands LIMIT and STOP that have been set up.

LIMIT is set up higher than the current meaning of the price.
STOP is set up lower than the current meaning of the price.

With these commands the positions is closed without additional orders when the price reaches the agreed level.

In the process of trading you can create pending positions, that will be activated when the price reaches the agreed level (open price). When creating and closing orders, a temporary delay occurs, and lasts for about 30 to 40 seconds. When you make an inquiry, you are given a real market price, which is the current price at the moment of proposal, not at the moment of inquiry.

The process of trading is described in detail in section Description of the Trade Terminal.

The main terms that characterize the account:

Deal, realization of 2 trade transactions, when currency is bought (sold), and then the reverse conversion is realized.
Balance, the sum on the account of a client after the last transaction is conducted.
Floating Profit, the current profit on open positions.
Floating storage, fee for postponement of an opened position over midnight GMT.
Equity = Balance + Floating + Floating storage.
Margin requirement, a necessary deposit sum calculated according to the formula
100,000 / K + 100,000 / K,
where K = leverage, and the number of items equals the number of open positions.
Percentage, index of an account.
Percentage = Equity / Margin Requirement. At Percentage lower than 50 % it's impossible to open new positions.
Margin call, condition of an account when all opened positions are closed by the Internet broker according to current quotes. It occurs at a Percentage lower than 10%.

Please note that contrary to the majority of other companies, in PRO-FOREX.com price levels of client's orders may differ from the current price only by 5 pips. However, very rarely are orders executed worse than requests, because of the high market volatility.

Foreign Exchange Markets

Participants of a foreign exchange market

The main participants of a foreign exchange market are:

Commercial banks
Exchange markets
Central banks
Firms that conduct foreign trade transactions
Investment funds
Broker companies
Private persons

Commercial banks conduct the main volume of exchange transactions. Other participants of the market have their accounts at the banks, conducting necessary conversion transactions. Banks accumulate (through transactions with the clients) the combined needs of the market in exchange conversions as well as in calling and distributing money, breaking with it into new banks. Besides satisfying clients' requests, banks can operate independently, using their own assets. In the end, a foreign exchange market is a market of interbank dealings, and when speaking about the exchange rates movement, one should bear in mind the existence of an interbank foreign exchange market. In international foreign exchange markets, international banks with the daily volume of transactions of billions dollars have the biggest influence. These are Barclays Bank, Citibank, Chase Manhatten Bank, Deutsche Bank, Swiss Bank Corporation, Union Bank of Switzerland, etc.

Exchange markets Contrary to stock markets and markets for terminal exchange dealings, exchange markets do not work in a definite building and they do not have definite business hours. Thanks to the development of telecommunications most of the leading financial institutions of the world use services of exchange markets directly and via mediators 24 hours a day. The biggest international exchange markets are the London, New York and Tokyo exchange markets. In some countries with transitional economies there are exchange markets for currency exchange by juristic persons and for forming a market exchange rate. The state usually regulates the exchange rate in an active manner, using the compactness of the exchange market.

Central banks control currency reserves, realize interventions that influence the exchange rate, and regulate the interest investment rate in the national currency. The central bank of the United States, the US Federal Reserve Bank, or "FED", has the greatest influence in the international exchange markets. It is followed by the central banks of Germany, (the Deutsche Bundesbank or BUBA) and of Great Britain (the Bank of England, nicknamed the "Old Lady").

Firms that conduct foreign trade transactions. Companies participating in international trade have a stable demand for foreign currency (importers) and supply (exporters). As a rule, these organizations do not have direct access to exchange markets, and they conduct their conversion and deposit transactions via commercial banks.

Investment funds. These companies, represented by various international investment, pension,and mutual funds, insurance companies, and trusts, realize the policy of diversified management of portfolio of assets by placing there money in securities of the governments and corporations of different countries. The world-know fund, Quantum, is owned by George Soros, and it executes successful exchange speculations. Big international corporations as Xerox, Nestle, General Motors a.o. that make foreign industrial investments (creating branches, joint ventures etc.), also are firms of this kind.

Broker companies bring together a buyer and a seller of foreign currency and conduct a conversion dealing between them. Broker companies take a broker's fee. As a rule, in the FOREX market there is no fee as a per cent from the sum of a transaction, or as a sum agreed in advance. Usually the dealers of broker companies quote currency with a spread, that includes their fee. A broker company, having the information about the asked rates, is a place where the real exchange rate is formed according to closed deals. Commersial banks get their information about the current exchange rate from broker companies. The biggest international broker companies are Lasser Marshall, Harlow Butler, Tullett and Tokio, Coutts, and Tradition.

Private persons. Natural persons realize a wide range of non-commercial transactions in the sphere of foreign tourism, transfers of salaries, pensions, royalties, buying and selling foreign currency. This is also the biggest group that realizes speculative exchange transactions.

The working hours of the markets

Exchange markets work all the time. Their work in the calendar twenty-four-hour period is started in the Far East, in New Zealand (Wellington), passing the time zones in Sydney, Tokyo, Hong Kong, Singapore, Moscow, Frankfurt-on-Main, London, then finishing the day in New York and Los Angeles. The count of time zones begins from the zero meridian in Greenwich near London, and the time itself is called Greenwich Mean Time (GMT). Depending on the season (summer or winter), the time in different financial centers of the globe will differ from the GMT.

The working day of exchange brokers of Western commercial banks starts, as a rule, at 7:30 am by local time. At 8:00 am the dealers are already closing deals. The morning hours are usually devoted to short analyses of events on the international exchange markets at the moment. The dealers use economic and technical analyses of the situation in the market, read analytical articles in newspapers, then exchange points of view and the latest rumors with each other and with dealers from other commercial banks. On the basis of various data, a picture of possible behavior of the exchange rate on the coming day is put together, with variants of all sorts of possible events.

By 8:00 am the market, consisting of individual dealers, will have worked out the tactics of its behavior, and it enters the operations of the international exchange market, giving a new and powerful impulse to the movement of the exchange rate. Various territorial markets can be given the following characteristics of an average typical activity during a 24 hour day.

Far East. Here the most active deals in the market are conversion transactions with the dollar to the Japanese yen, the dollar to Euro, Euro to yen, and the dollar to the Australian dollar. Very often fluctuations of exchange rates at that time are insignificant, but there are days when currencies, especially the dollar against the yen, make breath-taking flights. Especially so when the central bank of Japan makes an intervention. In Moscow its night and morning at that time, so till noon one can work with Tokyo, till mid-day with Singapore.

Western Europe. At 10:00 am Moscow time the market in the European financial centers of Zurich, Frankfurt-on-Main, Paris, Luxembourg are open. However, the really powerful movement of the exchange rate against the main currencies starts after 11:00 am Moscow time, when the London market is opened. This continues, as a rule, for 2 to 3 hours, after that the dealers of the European banks go to have lunch, and the activity of the market falls down a bit.

North America. The situation livens up with the opening of the New York market at 4:00 pm Moscow time, when dealers of American banks start working, and when European dealers come back from their lunch. Powers of European and American banks are about equal, that is why fluctuations of the rate do not go out of the limits of usual European fluctuations. Nevertheless, exchange dealers look forward to the opening of the New York market in order to receive fresh data about a possible movement of the rate (the more so if the European market has been sluggish). But when the European market is closed about 7p m or 8pm Moscow time, aggressive American banks, left alone on the "thin" market, are able to cause a sharp change of the exchange rate of the dollar against other currencies.

What is a FX speculator?

In modern conditions practically all financial transactions in the market are speculative by their nature, and there's nothing abnormal or criminal in it. One of the most vivid indices of markets' globalization is their daily volume of exchange transactions. Only in 10 major financial centers it increased from 206 billion dollars in 1986 to 967 billion dollars in 1992. According to the IMF, on the whole the volume is over 1 trillion dollars a day, and on some days it reaches 3 trillions. It is enough to say that the volume of gold and foreign exchange reserves of all developed countries was only 555.2 billion dollars in 1992, which is two times less than a daily volume of market transactions. According to some calculations, the volume of exchange transactions is 40 times bigger that the daily volume of foreign trade transactions. Therefore, most of the deals are caused not by a commercial necessity, but by financial reasons. And a financial transaction is always caused by the fact that money is looking for some profitable usage.

The international exchange system functioning in the world at the moment develops among people dealing with exchange and financial transactions: the so-called speculative psychology. In the world where exchange rates fluctuate for some per cent every week, where currencies, that are considered to be stable can lose 20 to 30 per cent of their cost during a few months, it's absolutely clear that the manager of a fund, trying to compensate for inevitable losses, has to use speculative operations. For example, a reasonable owner of dollars has to get rid of them very quickly and exchange them for Euro every time the expected fall of the dollar against Euro surpasses the difference between the profit from American notes and the profit from the respective German notes. For instance, if in the coming months the dollar is expected to fall against the Euro by 6%, and the profit from American notes is 6 per cent bigger than the profit from German notes, a speculator will probably decide to keep dollars. If the gap in the interest rates is less than the expected fall of the rate, the "running away from the dollar" begins.

Who are these speculators? An analysis shows that the main speculators acting in the market are institutional investors. Among them one can single out, first of all, official state institutions, and, secondly, private financial and other institutions. Thus according to the report of the "Group of Ten", state investors in Europe and Japan keep about 20 per cent of their assets in the form of foreign securities (in the USA only 7.5 per cent). However, the main feature of the 1980s was the growing international activity of private financial institutions: pension funds, insurance companies, and mutual funds. The Globalization of international financial markets is an objective process, reflecting the growing degree of economic relations in the world. It promotes a more effective distribution of financial resources.

Major world exchange markets:

AMEX - American Stock Exchange
BOVESPA - Sao Paulo Stock Exchange
CBOT - Chicago Board of Trade
CHX - Chicago Stock Exchange
CME - Chicago Mercantile Exchange
Commodities on the Web - List of the commodities
LIFFE - London International Financial Futures and Options Exchange
London Stock Exchange -London Stock Exchange
Nasdaq
NYMEX - New York Mercantile Exchange
NYSE - New York Stock Exchange
SBF - la Bourse de Paris
SES - Singapore Exchange
SET - Stock Exchange of Thailand
TSE - Tokyo Stock Exchange
TSE - Toronto Stock Exchange
LSEX - London Stock Exchange
CBOE - Chicago Board Options Exchange CBOE
PHLX - Philadelphia Stock Exchange

Other useful resourses

It's only natural that, for professional work as an FX trader, a mere wish alone and technical opportunity are not enough. A person may be very gifted, but first he should learn a craft with all its subtleties and peculiarities. It's also clear that our web-site can neither replace a pile of manuals nor present a huge amount of articles, online textbooks and other material, supplied by the Web.

Of course, we do have some auxiliary materials: advice, FAQ, but still it is not enough if you are a newcomer in the FOREX market. That is why we present here a rather extensive list of references supplied other recourses available for reading and copying by the user of the Internet. If you can offer an interesting reference or an article, we'd be pleased to place it in this section.

ANALYSIS:

Accurate Forex Trading Signals - Forex Trading Signals/Alerts for Swing Traders.
Foreign Currency Exchange - Make your international payments with North America’s leading foreign exchange services provider including funds transfer, forward contracts, and currency risk management.
AceTrader - trade signals on the majors, updated six times/day. Trade signals with stops and profit objectives, plus in depth technical analysis and wave analysis.
K.B. Advisory Ltd - Daily FX forecasts and trade signals for professional FX traders.
Elliott Wave Analysis by A. Bezrodny - technical analysis using Elliott wave analysis for yen, swiss, and euro.
BBSP - technical analysis, commentary and trade signals for currencies and other sectors.
Dukascopy Analysis - advanced proprietary TA for all markets, emphasis on fx using quantum mechanics.
Forex Market Outlook - elliott wave analysis.
Penny Stocks Guide - Get important information about penny stocks that will help with your investment choices.
Currency Trading USA - Trade currencies online and get free training when you open a forex account. Sign up for a 30-day free trial of our online trading system today. Great for swing trading and day trading.
Forex Day Trading Online - Get free training on our award-winning, online currency trading system. Use our platform to learn how to day trade free for 30 days. Trading currencies requires a lot less money than trading stocks. See how well you do trading the forex market in 30 days.
Stock Market Charts - Get stock market quotes, live charts, news and other financial information at The Financials.
Go Forex - A one-stop forex trading shop. Includes a wide range of information and resources about foreign exchange trading.
The Official Forex Training Site - Free information about the forexmarket, forex news, etc.

FINANCIAL MAGAZINES:

Technical Analysis of Stocks &Commodities - a TA publication for the futures and stock mkts.
Treasury and Risk Management Magazine - a publication for the international risk manager.
Treasury Management International - ideal for corporate treasurers involved in fx, risk, trade, derivatives, etc.
Forex Grand Capitals - provides best market opportunities in forex signals and Forex trading, Forex training and Forex chat toward real strategic investment solutions. Forex for professionals exclusively.
Profit Loss - magazine for currency and derivatives.
Derivatives - a monthly magazine devoted to the u.s. derivative scene.
Derivatives Strategy - monthly magazine covering derivative issues in all major markets including fx.
Derivatives Week - over the counter (otc) derivatives and fx commentary.
ErivativesReview - online derivatives magazine covering all markets, otc and listed.
Euromoney Magazine - covering the European financial scene, including Fx.
Forex Trading Books - Traders Forum - the educational resources about currency trading for all levels of traders from novice to professional.

FINANCIAL SOFTWARE:

TradeStation by Omega Research - Imagine historically testing any idea you have for buying and selling, and revealing the results in seconds. Imagine if you could pinpoint the ones that could have worked (and those that wouldn't have) before you risk one penny on a trade. Now imagine being able to automate the real-time monitoring and execution of any strategy you ultimately select. In effect, to harness the power of your PC to identify and react to market opportunities (however your strategy defines them) more quickly and easily than you ever thought possible.
MetaStock by Equis International - The unparalleled market technical analysis software! Analyze market data in real time. Plan your own strategy to make money, regardless of upward or downward trending markets. Technical analysis has never been easier! MetaStock's incredibly intuitive drag-and-drop charting tools allow you to spend your time charting, without any confusing coding or programming. Powerful back-testing functions, over 100 preset indicators and easy formula customization give you unmatched control of your market trading strategy.

What is FOREX?

2008-04-19T07:35:00.001-07:00

What is FOREX?

FOREX(FOReign EXchange market) is an international foreign exchange market, where money is sold and bought freely. In its present condition FOREX was launched in the 1970s, when free exchange rates were introduced, and only the participants of the market determine the price of one currency against the other proceeding from supply and demand.

FOREXis a more objective market, because if some of its participants would like to change prices, for some manipulative purpose, they would have to operate with tens of billions dollars. That is why any influence by a single participants in the market is practically out of the question. The superior liquidity allows the traders to open and/or close positions within a few seconds. The time of keeping a position is arbitrary and has no limits: from several seconds to many years. It depends only on your trading strategies. Although the daily fluctuations of currencies are rather insignificant, you may use the credit lines, that are accessible even to currency speculators with small capitals ($ 1,000 - 5,000), where the profit may be impressive. (You can learn more about it in the section:

Margin tradingis trading with a borrowed capital. Marginal trading in an exchange market uses lots. 1 lot equals approximately $100,000, but to open it it is necessary to have only from 0.5% to 4% of the sum.

Everyday fluctuations of currencies constitute about 100 to 150 pips, giving FX traders an opportunity to make money on these changes.

In order to assess the situation in the market a trader has to be able to usefundamental and/or technical analysis, as well as to make decisions in the constantly changing current of information about political and economic character. Most small and medium players in financial markets usetechnical analysis. Technical analysis presupposes that all the information about the market and its further fluctuations is contained in the price chain. Any factor, that has some influence on the price, be it economic, political or psychological, has already been considered by the market and included in the price. The initial data for a technical analysis are prices: the highest and the lowest prices, the price of opening and closing within a certain period of time, and the volume of transactions.

Atechnical analysis is founded on three suppositions:

Movement of the market considers everything;
Movement of prices is purposeful;
History repeats itself.

That is, technical analysis is a statistical and mathematical analysis of previous quotes and a prognosis of coming prices.

Anumber of technical indicators have been installed into the PRO-CHARTS trading system. Analyzing the indicators one can come to the conclusion about further movements of the quoted currencies. For a more detailed description of the indicators, analyzing price charts and volumes of trading, click

Fundamental analysisis an analysis of current situations in the country of the currency, such as its economy, political events, and rumors. The country's economy depends on the rate of inflation and unemployment, on the interest rate of its Central Bank, and on tax policy. Political stability also influences the exchange rate. Policy of the Central Bank has a special role, as concentrated interventions or refusal from them greatly influence the exchange rate.

The main merits of the FOREX market are:

The biggest number of participants and the largest volumes of transactions;
Superior liquidity and speed of the market: transactions are conducted within a few seconds according to online quotes;
The market works 24 hours a day, every working days;
A trader can open a position for any period of time he wants;
No fees, except for the difference between buying and selling prices;
An opportunity to get a bigger profit that the invested sum;
Qualified work in the FOREX market can become your main professional activity;
You can make deals any time you like.

Developing A Sound Forex Trading System

2008-04-19T07:34:00.003-07:00

Developing A Sound Forex Trading System

By: Bret Freak

Before going head first into trading the forex market, you may want to consider whether or not your forex trading system is actually based on sound concepts that will make you money over the long term. The most important aspect of your forex trading system should be the expectancy it produces. The expectancy of your trading system will give you an idea of how much you could expect to make over a certain period of time. This is explained further below.

Although you should aim at producing a high expectancy trading system, you should also consider exactly what your system is made up of. Most traders would agree that your trading system shouldn’t just be composed of mainly ’lagging’ technical indicators, but rather include ‘leading’ indicators such as price action, and chart patterns.

The Mathematics Of A Trading System

The whole point of a forex trading system is to make you as much profits as possible while keeping your risk down to an absolute minimum. To determine whether or not your trading system does this, a few mathematical calculations can be made to determine how much your system will make on average, over a period of time. This is often referred to as the ‘Expectancy’ of a system.

To calculate the expectancy of your trading system, you will need to take into account the following:

1. How often is your system correct? 2. How much are your profits compared to your losses? 3. How often are you able to trade your system? And 4) What does it cost to trade?

The following is an example taking these factors into account to determine its expectancy. Assuming the following:

1. The system is correct 70% of the time. 2) On average your profits are 2 times the amount you loose (make 80 pips, loose 40 – assume spread cost is taken into account). 3) you are able to trade 3 times per week.

The formula to calculate expectancy is:
(probability of a win × average win) less the (probability of a loss × average loss) × opportunity

Using the above values we would conclude:
(0.70 × 80 pips) minus (0.30 × 40 pips) × 3
= 132 pips. This means you could expect to make on average 132 pips every week.

Combining Leading & Lagging Indicators

So why include leading indicators in your trading system? The fact is, leading indicators have more predictive power, and can predict market moves before they occur. Lagging indicators cannot do this, however they can still complement other leading indicators. Some well known leading indicators include: pivot points, chart patterns, fibonacci retracements, and candlestick patterns.

In fact candlesticks are probably one of the most powerful leading indicators, since you are observing price action itself. Traders around the world have found that candlesticks can add an extra dimension to their trading system. The reason for this can be largely contributed to Steve Nison’s book Japanese Candlestick Charting Techniques. Here is a quote from the book:

“If you are a seasoned technician, you will discover how joining Japanese candlesticks with your other technical tools can create a powerful synergy of techniques.”

Of course there are many different ways you can incorporate the use of leading indicators in your forex trading system. Here I have aimed at giving you a taste of what is possible. I also recommend that you check out investopedia’s lesson on how to develop a medium term forex trading system. This lesson also puts forward some interesting concepts which include combining leading indicators with other technical tools.

Conclusion

By including the use of leading indicators in your trading system, you will be able to add an edge to your system that will enable you to catch trends earlier, and hence make more money. And by understanding the basic mathematics involved in determining a trading systems profitability, you should be able to determine whether or not you have a good forex trading system.

Article Source: http://www.articlecafe.net

Making Money Through Forex Trading

2008-04-19T07:34:00.001-07:00

Making Money Through Forex Trading

By: Kip Goldhammer

There is loads of cash to make from foreign currency trading. And people are earning huge profits from it all the time. Every fluctuation in the currency markets poses an opportunity to earn money for someone who has a good grasp on foreign currency trading. There are several factors that influence the currency markets and sometimes there are big events (e.g. introduction of euro) too.

The forex trading system involves buying and selling foreign currency. Unlike the stock market there is no fixed market for the forex trading system. A good and effective forex trading system allows the traders to transact easily and provide more chances to increase the earnings. Forex, foreign exchange market, is a market place where a currency of one country is sold for another country's currency for some profit. Currencies are traded in pares, like, US Dollar and Japanese Yen or US Dollar and Euro.

Foreign exchange tradings are a great money making opportunity for those who know their way around, for newbie it's a dream world where they either fall hard, sail well or fly high, its not easy to be a successful trader in the forex trading system., it's a mix of luck and experience that must work to find success. There are a lot of companies and individuals over the internet and offline willing to help you earn money from the forex trading system but only a handful of these are true and can actually help.

Nowadays most of the calculations are done by easy to use software that need minimum input from the user. You will need help initially, and may take some time for you to get to know the forex trading system. The high degree off leverage can sweep you either way, in the forex trading system one has to assess the risk for self, think of the chance one may have individually or with the help of a broker and/ or signal provider one may have and the amount which one can safely risk without putting yourself into financial trouble. It's a law of nature, where there's potential to earn there' potential to loose so just be prepared before you dive in.

To make good profits from foreign currency trading, you need to keep a close eye on the foreign currency markets. You need to do your own analysis of foreign currency trading and you need to know what other people are thinking about the emerging trends in foreign currency markets. You also need to keep track of the news items that could move the foreign currency markets. Each fluctuation presents an earning opportunity. You need to time your moves well. You need to develop strategies and execute them well.

Article Source: http://www.articlecafe.net

The Elliott Wave Principle And Hurst Envelope Analysis Support Chart Patterns

2008-04-19T07:33:00.003-07:00

The Elliott Wave Principle And Hurst Envelope Analysis Support Chart Patterns

By: Bret Freak

Still wondering whether chart patterns are a valid form of analysis to trade the forex market? Well, just recently I have realized that both Elliott Wave, and. Hurst Envelope analysis support the validity of chart patterns, and even go as far to explaining why they occur! What’s interesting is the fact that both Elliott Wave & Hurst Envelope analysis are two very different analysis techniques, yet both explain exactly why these patterns continue to repeat time and time again.

Here is a quote from the Elliott Wave Principle on chart patterns:

“The Elliott Wave Principle not only supports the validity of chart analysis, but it can help the technician decide which formations are most likely of real significance” It goes onto explaining how chart patterns relate to Elliott Wave analysis and how you can use it in your trading.

And here is a quote from James Hurst’s book entitled: “Profit Magic of Stock Transaction Timing”

“If the “X” motivation concept is valid, it must be able to explain the existence and, reoccurrences of common chart patterns and, why they impart information to the investor.” And:

“The second purpose of the chapter is to show you how the price motion model can be used to resolve chart patterns. Such patterns can be used to determine which way and when price motion will go at pattern termination.”

Although the above may sound very confusing to those who haven’t read Hurst’s book, it’s still an interesting fact that the validity of chart patterns have been confirmed and supported by two very different market timing techniques. Now this brings us to another question: Can both Elliott Wave and Hurst Envelope analysis be somehow combined together to take chart analysis to a new level? Perhaps.

It’s not however my aim here to go into any details on how this may be achieved, but rather, allow those interested to follow up on this interesting idea themselves, and give those who are unsure if chart patterns are really a valid form of trading analysis, some confidence in their value in trading the forex market.

A Parting Comment:

Before you go out and buy a copy of Hurst’s book “Profit Magic of Stock Transaction Timing” I would like to warn you in advance that the content presented in this book can be at times hard to understand. And on top of this, the market timing technique Hurst presents in that book can be very time consuming. Since it involves manually drawing in “Envelopes” around price action. It is still however an interesting read, especially for those who are interested in how Hurst’s timing technique can be used to add accuracy to chart pattern recognition.

I believe the Majority of traders would be content on using the Elliott Wave Principle to further analyze chart patterns. Since it is more widely known than Hurst’s Envelope technique, and has more extensive information and education available on it than Hurst’s technique.

Conclusion

By understanding the Elliott Wave Principle, and Hurst Envelope analysis, you are able to take chart pattern recognition to a new level of accuracy, and therefore profitability. So, if you are the type of person who is interested in trading chart patterns more successfully you may be interested in doing some further research into Hurst Envelope analysis, and the Elliott Wave Principle.

Article Source: http://www.articlecafe.net

Understanding Foreign Currency Pairs

2008-04-19T07:33:00.001-07:00

Understanding Foreign Currency Pairs

By: Martin Chandra

Trading the forex market has many benefits over other financial markets, among the most important are: superior liquidity, 24hrs market, better execution, and others. Traders and investor see the forex market as a new speculation or diversifying opportunity because of these benefits.

Simply said, no other trading instrument comes even closely to forex market when it comes to liquidity, 24hr market environment and last but not the least, profit potential. Forex (currency) market is the largest (most liquid) financial market in the world, with an average daily volume of more than US$ 1.5 trillion, which is more than all of the global equity markets combined.

Foreign exchange market is where the currency of one nation is traded for that of another. Therefore, forex trading is always traded in pairs.

However, the way currencies are quoted against each other can initially seem a little confusing, especially for beginner. Basically, there are two rules of thumb - and three exceptions to the first rule.

Rule No. 1: All currency rate quotes are expressed as units per dollar. For example, the rate between the Japanesse yen (JPY) and the U.S. Dollar (USD) is expressed as 103.14 Japanese yen per dollar. The technical term for this is that USD is the "base currency" against which JPY is quoted.

A higher quote, such as 104.33, means that the dollar has appreciated in value compared to the yen, because it now takes more JPY to the same amount of USD. When charted, this means that a continuously stronger dollar will result in an uptrend on the chart. If you believe USD will continue to trend higher, which means JPY will trend lower, then you would sell JPY.

The exceptions to the first rule are the British poundsterling (GBP), European euro (EUR), and Australian dollar (AUD). These currencies are the base currencies against the USD. When rates between the USD and any of these currencies are charted, a continously stronger dollar will appear as a downtrend on the chary. If USD has appreciated relative to GBP from yesterday to today, today's quote between GBP and USD is lower than yesterday's quote. If you believe USD will continue to trend lower, and consequently GBP to trend higher, you should sell GBP.

Rule No. 2: All quote denominations are backwards with the base currency stated first. For example, the Swiss franc (CHF) and USD is denominated as USD/CHF. The quote between USD and EUR is denominated EUR/USD. Another example of denominations are USD/JPY, USD/CAD, GBP/USD, AUD/USD, etc.

Article Source: http://www.articlecafe.net

Forex Currency Trading System Possibilities

2008-04-19T07:32:00.001-07:00

Forex Currency Trading System Possibilities

By: Bret Freak

So many people continue to discuss the use of common technical indicators in trading systems, without realizing or perhaps just not bothering to look at more predictive trading tools that are available to trade the forex market.

And so the purpose of this article is to present to you a few alternatives to using lagging indicators and instead incorporate leading indicators in your system, and that means looking directly at price action which some refer to as trading naked.

What I’m about to explain here, is a number of analysis techniques which I have combined together giving you an idea of what is possible. Now just because I have combined the use of all four market timing techniques in this article, doesn’t mean you have to use them together in your trading system, rather incorporate the use of one or more of these tools in your own forex trading system to suit yourself.

The first thing to do, is to identify a main market move, then apply fibonacci retracement levels to that move. These fibonacci resistance levels will now act as a reference point. We will now refer to other tools to indicate a possible reversal around one of these resistance levels.

We now wait for a candlestick reversal signal to occur around one of the main fibonacci resistance levels to indicate a possible reversal trend. When you think about it, fibonacci and candlestick reversal patterns are a great combination of analysis tools to use. Think about it for a moment. Once you observe a natural level of resistance in the form of a fibonacci, and at the same time you notice a candlestick reversal signal occurring aroung this level, for example a shooting star pattern, it gives you added confidence that a change in trend to the downside may be about to occur.

This brings me to our third indicator which gives further indication of a reversal occuring. This third analysis technique is called Elliott Wave. Now it is not my purpose here to go into detail about the Elliott Wave Principle, but rather show you the possibility of the tools you could use in your forex trading system.

To give you an idea of what Elliott Wave is all about, I quote from the Elliott Wave Principle book:

“In the 1930’s, Ralph Nelson Elliott discovered that stock market prices trend and reverse in recognizable patterns, the patterns he discovered are repetitive in form but not necessarily in time of amplitude. Elliott isolated five such patterns or waves that recur in market data. He named, defined, and illustrated these patterns and their variations. He then described how they link together to form larger variations. He then described how they in turn link to form the same patterns of the next larger size and soon producing structured progression.”

And further on into the book it goes onto saying:

“The primary value of the wave principle is that it provides a context for market analysis.”

And that is exactly how you should use it in your own forex trading system, in context with your other indicators or tools such as Fibonacci retracements, and candlestick reversal patterns.

Now to the fourth and final market timing technique you could incorporate in your forex trading system, or use with the other technical tools I have presented here in this article. This last market timing technique is called the Delta Phenomenon. More information about this technique and all the others presented here in this article can be found on my website listed below.

Basically the Delta Phenomenon is a cyclic phenomenon that was observed to be common in all financial markets around the world. Here is a quote from the book:

“Once one discovers the number of points that repeat and where the repeat begins, he is able to predict where in time each of these points will occur as far in the future or the past as he may want to go.”

The interesting thing here is the fact that this sounds similar to the paragraph I read out of the Elliott Wave Principle book which stated that, Elliott Wave patterns are repetitive in form but not necessarily in time or amplitude. This is where the Delta Phenomenon could complement EW, since DP gives you an idea of the time period to expect a reversal.

I would also like to mention here that the delta phenomenon is one of those market timing techniques that can be incorporated with any trading system, and it’s definitely worth looking into further if you’re interested in increasing both profitability and accuracy in your forex trading system.

Conclusion

It is up to you which market timing techniques you choose to use in your trading system.
However you should be able to add an extra layer of both confidence and accuracy, by incorporating the use of any of these four market timing techniques in your own forex trading system.

Article Source: http://www.articlecafe.net

Elliott Wave Principle

2008-04-19T07:31:00.006-07:00

Elliott Wave Principle

By: Bret Freak

The chances are, you have probably heard of the Elliott Wave Principle, however without spending some time to carefully study this market timing technique, it can be a difficult principle to understand and apply. The Elliott Wave concept is a very interesting method of identifying cycles in the financial markets. Keeping in mind that it is not yet fully understood exactly why it works, this hasn’t stopped traders around the world from applying and profiting from this unique principle.

The Elliott wave principle or wave principle as some refer to it is a form of market timing that traders and investors use to forecast possible trends in the financial markets. Ralph Nelson Elliott developed a financial market model which he called The Wave Principle. Ralph published his views and ideas of how the market behaved in his book titled: The Wave Principle (1938). Elliott suggested that market movements unfold in specific patterns which he called waves. Today practitioners and traders refer to this principle as the Elliott Wave.

The best place to learn about the Elliott wave principle absolutely *FREE* is the Elliott Wave International website. I also suggest you get the Elliott Wave Principle book by Frost and Prechter, it only costs $29.00 USD plus shipping if you get it from Elliott Wave International, which is a small investment compared to what the Elliott Wave Principle is capable of achieving when used correctly.

To give you an idea as to what to expect from the book, here are some quotes from the Elliott Wave Principle Key to Market Behavior by A.J. Frost and Robert R. Jr. Prechter

“In this book, we have tried to produce a work that gives a complete treatment of the subject in a manner which we hope will succeed in introducing both experienced analysts and interested laymen to the fascinating field of Elliott. We trust our readers will be encouraged to do their own research by keeping a chart of hourly fluctuations of the Dow until they can say with enthusiasm, “I see it!” Once you grasp the Wave Principle, you will have at your command a new and fascinating approach to market analysis, and even beyond that, a mathematical philosophy that can be applied in other spheres of life. It will not be the answer to all your problems, but it will give you perspective and at the same time enable you to appreciate the strange psychology of human behavior, especially market behavior. Elliott’s concepts reflect a principle you can readily prove to yourself and evermore see the stock market in a new light.”

“In the 1930s, Ralph Nelson Elliott discovered that stock market prices trend and reverse in recognizable patterns. The patterns he discerned are repetitive in form but not necessarily in time or amplitude. Elliott isolated five such patterns, or “waves,” that recur in market price data. He named, defined and illustrated these patterns and their variations. He then described how they link together to form larger versions of themselves how they in turn link to form the same patterns of the next larger size, and so on, producing a structured progression. He called this phenomenon The Wave Principle.”

And further on down the page it goes on to say:

“The primary value of the Wave Principle is that it provides a context for market analysis.”

And:

“At times, its accuracy in identifying, and even anticipating, changes in direction is almost unbelievable.”

(Quotes taken from the Elliott Wave Principle Key to Market Behavior by A.J. Frost and Robert R. Jr. Prechter)

Conclusion

The Elliott Wave Principle is definitely a viable method of market timing. However as stated in the Elliott Wave Principle book, it should be used “In context” with your other technical tools. So consider the added accuracy and profitability that can be added to your own trading system with the help of the Elliott Wave Principle.

Article Source: http://www.articlecafe.net

How does the Forex market work?

2008-04-19T07:31:00.003-07:00

How does the Forex market work?

By: Andrew Daigle

The forex market is a huge international exchange where different currencies are traded, i.e. both bought and sold. It is estimated to be the largest financial market in the world, and is not governed by the rules of any one country. In addition to this, while it is open from Sunday to Friday, it is a 24 hour market and does not experience a daily closing like a traditional stock market. It is, thus, not regulated and there are no international panels to settle disputes nor are there any clearing houses to stand as guarantors of trades on the exchange. There is nothing more binding than a credit agreement between the buyer and seller in the forex market, and it works.

While this seems very nebulous to most stock market investors, forex traders are forced by competition and the need for cooperation to remain honest. There is no way for a trader to survive in the forex market unless he or she keeps up their end of the deal. Most countries will have their own body or association that serve to regulate the forex traders or brokers in that country and ensure that clients' rights are protected. This association will insist on its members accepting the decisions of their arbitration panel in case of disputes. In the United States, this organization is generally considered to be the National Futures Association or the NFA.

Another important aspect of the forex market to keep in mind is that on the market itself, there are no commissions, and thus it works on principal amount only. The so called forex brokers make money not by taking a commission from the trading parties, but by facilitating the trade itself and making their bit on the bid ask spread, i.e. the difference between the selling and buying prices. The implication is that they are not brokers in the traditional sense of the word, but more like forex traders themselves.

The single most attractive aspect of the forex market is that it is practically impossible for any investor, group of investors or financial institutions to misuse it. It is such a large market, with money flowing through it daily in estimated trillions of dollars, that no single entity, however large, can gain a statistically significant control over the forex market. This means that it is completely free of any influences, beyond the true fundamental driving forces that move it. The implication here is that this market offers every investor the same opportunity, regardless of size or influence, making it a free and fair market place, possibly the only one in the world. This aspect is very attractive to small investors in particular, since they are often the ones to suffer the most from stock market scams and fraudulent activity.

While these factors make the forex market more appealing to invest money on, it is also hard to make money on this market due to the fact that the forex trader has to always do better than the bid ask spread, which makes the opportunities for arbitrage profit limited. However, with no extra commissions and charges, the forex trader is left to enjoy every last bit of profit that he or she does make, once they are past the bid ask spread mark. Overall, the forex market is the place for a smart, vigilant and well trained investor.

Article Source: http://www.articlecafe.net

Is Forex Trading for Everyone?

2008-04-19T07:31:00.001-07:00

Is Forex Trading for Everyone?

By: David Stevenson

Successfully trading the Forex market requires you to have the discipline to follow some rules. If you can "stay the course" and follow your system, regardless of what the market is doing, you can make money trading Forex.

As with most forms of financial investing - stocks, futures, etc., there are risks. There are no crystal balls to show you what is going to happen next, so your exposure to these risks is largely controlled by your money management practices.

Casinos operate, normally with extensive profits, based entirely on risk management. They have learned how to take advantage of probability, which is the same concept traders rely upon, and turn the tables in their favor. They have learned that the longer they can keep a gambler in their facility, the better the odds they will end up with the gambler's money.

Many new or inexperienced Forex traders fall victim to the hype surrounding foreign exchange trading. The electronic trading platforms used by retail Forex traders today, with their ability to display hundreds of "indicators" and present price data instantly, confuse many traders and actually lure them into making poor trading decisions.

Like futures, Forex trading offers high leverage. The readily available leverage of up to 400:1 has destroyed many potential trading careers. New traders, unaccustomed to the volatile nature of Forex, often fall into the trap of over-leveraged positions, which easily wipe out trading accounts.

Forex generally has some of the most predictable trends of all the markets over the longer term. However, many traders lose sight of the long term picture and try to trade based upon shorter term price charts. They believe shorter trends offer easy opportunities for profit, when in truth, most seasoned traders won't even look at charts of less than 1 hour.

The volatility of Forex means that a tight stop-loss order will usually result in being stopped-out of many trades. Too many trades ending in this fashion result in your trading account being slowly eroded away. Traders need to keep their "real leverage" (amount of currency controlled divided by their actual account size) at 3:1 or less. This will allow you to relax your stop-loss settings and enjoy more successful trades.

In the currency market, you don't have to worry (normally) about countries going broke. Typically the prices move in large waves, and if you had deep enough pockets, you could wait for the price to recover to profitable levels. The reality is this process could take years, so money management is again key.

Another benefit of this huge market is it's liquid nature. It's trading volume of approximately 2 trillion dollars per day ensure there can be no insider activities. Even the largest of central banks lack sufficient funds to seriously sway the market. Market moving data is released for all to see at the same time. No one has advance information of pending releases.

In conclusion, trading the Forex currency market is no more difficult than the stocks or futures markets and in fact has several advantages. To trade profitably in the currency market, you need to stick to leverage of no more than 3% to 5% and think "longer term". The lower leverage will allow you to ride the fluctuations which are common to Forex, while enjoying the benefits of long term trending.

Article Source: http://www.articlecafe.net

10 Forex Trading Essentials

2008-04-19T07:30:00.003-07:00

10 Forex Trading Essentials

By: David Stevenson

These 10 Forex trading essentials are a high-level peek at the pitfalls that catch many traders. Compare your trading style with these simple fixes and if you are not employing some or all of them, you are placing yourself at a higher risk level.

1) Increase your time perspective - If you are not a well seasoned Forex trader, you shouldn't even look at a price chart of less than 60 minutes. The randomness of the normal transactions which occur in Forex will distort your judgment of the true picture. Use longer time frames, such as 60 minute, 4 hour and daily charts when planning your trades.

2) Reduce your position size to 5% Maximum - Having more than 3 to 5 percent of your trading capital on the table is a major no no. High leverage makes it very easy to get in away over your head. This combination snares many traders and can rapidly destroy your account. You need to have the ability to ride the volatility waves common in Forex.

3) Give your trade time to work - You can only use this option effectively if your position is sized safely... as per 2) above. Prices will fluctuate dramatically in Forex, and you need to be sure that a loss really is a loss before you close a trade that is moving against your plan. A 30 pip stop loss will often kick you out of a trade, just as it's about to turn in your direction. You need to allow for larger price swings... if you have determined the major price trend, be patient and let the odds work in your favor.

4) Reduce your dependence on technical indicators - Due to the fact that technical indicators get their data from past events, the reality is they have no ability to predict the future. Pro's that enjoy success using these indicators, often profit from the knowledge of how the masses are likely to react to this data, rather than the information itself. You need to determine the major trend (a simple moving average will show you this) and hop aboard. Use a longer time frame, as in 1). The largest players in Forex rely about 25% on technical indicators when making their trading decisions.

5) Trade only one or two currency pairs - And stick to the majors... not the crosses. Currency prices are driven primarily by fundamental data. In order to anticipate what is likely coming down the road, you need to follow some basic data for each of the countries involved. Trading too many currencies will make it difficult to keep up to date. There is equal opportunity to profit from each of the pairs, so wait until your experience level has matured and the information tends to sink in without as much effort on your part before you start to trade more currencies.

6) Average in and out of your trades - If your trading account is less than $50,000 have your broker enable mini-lots for your account. This will allow you to average in and out of your trades... a great way to add more flexibility to your account. If this applies to you and your broker doesn't offer mini lots, find a new broker... this is an important need to do.

7) Follow the data for your currency pair(s) - Know what data is pending for release. Volatility often increases dramatically when these releases occur. The safe strategy is to exit your positions prior to major releases... this is the way many of the larger accounts handle these situations. Data releases can often cause a change to the trend. Take them seriously.

8) Determine the trend and get aboard - As with any type of trading, the safest bet is to determine which way prices are trending, and then trade in that direction. You don't need anything fancy... a simple moving average on your candlestick chart is sufficient. Zoom your chart out to be sure you have the big picture. Compare where the price is now, relative to where is has been for a significant amount of time (at least a month). Use caution if the current price is near upper or lower extremes, as there may be a trend change once that extreme is reached.

9) Know when to take a profit - A winning position can quickly turn into a loser if you set your sights too high. Don't be afraid to take your profit - or a part of your profit at 20 or 30 pips. The price waves in Forex make it ideally suited to averaging into and out of positions by using multiple entry and exit points for each position. This is exactly where your mini lots can help! The benefit of spreading out your position is that your overall risk is reduced.

10) Stop listening to "Gurus" - Don't fall into the trap of believing everything, or even most things, you hear. The trading world is overflowing with gurus only too willing to offer their opinion on the future. It will only be an opinion, nothing more. They may seem to have convincing data, but trust your own brain. You need to weigh the economic data from your countries... that is what drives currency prices. The enormous size and nature of Forex ensure there is no insider information. You have access to the same data as everyone else in the game. In time, your own instinct will guide you to your goals, and that is what you need to trust.

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Which Indicators Should You Use In Your Forex Currency Trading System?

2008-04-19T07:30:00.001-07:00

Which Indicators Should You Use In Your Forex Currency Trading System?

By: Bret Freak

From reviewing a number of forex currency trading systems and methodologies available online, I have found that the majority are based on having a number of indicators pointing in the same direction giving you a what’s known as a ‘confluence’ of indicators which is much more likely to be an accurate signal.

However, it is not just any combination of technical/fundamental indicators. The well thought out systems available on the internet makes use of different types of indicators. For example they might first decide to observe some type of resistance level such as a fibonacci retracement level, a pivot point, or a double bottom. This provides the initial support area. From here they may look to price action, for example they may decide that their system requires a certain candlestick formation to occurm such as an evening star, or morning star formation. Alternatively, they may just wait for any candlestick reversal signal to occur around that area, to take the trade.

Some traders would be happy to take the trade with just those two criteria. Others may require additional indication that a change in trend is about to occur. For example, they may use a bearish Stochastic, or MACD signal to confirm the change in trend.

Another less used method of trading might be, to incorporate the use of support and resistance type indicators as mentioned above, they may decide to make use of cycles. I wont go too far into the subject of trading using cycles since it would go off topic, and my aim here is to introduce you to the possibilities, and what other traders are using in there forex trading systems. However, one method of cyclic analysis comes to mind, it’s called the Delta Phenomenon.

The Delta Phenomenon can tell you with great accuracy, WHEN in time a move is about to occur, as well as the DIRECTION. However, to increase your probabilities of being correct you should refer to the Elliott Wave Principle. The Wave Principle basically can give you the FORM of the wave, as well as the ability to predict its DIRECTION. So if you had indications from both the Elliott Wave Principle and Delta that a change in trend to the upside was about to occur, wouldn't you feel more confident in taking the trade? Of all the methods and systems I have reviewed and examined, I have never come across a methodology that made sense as much as the method I have briefly described above involving the use of both Delta and the Wave Principle.

Of course it is essential that you keep in mind other factors such as money management, and expectancy when developing and implementing your own forex trading system.

Conclusion

There is literally an endless mix of technical analysis techniques that you could use in your forex currency trading system. The one you choose largely depends on what you are comfortable with. Some prefer not to use market timing techniques that take some time to learn and implement, however if you have the time and patience to learn analysis techniques such as the Elliott Wave Principle, and the Delta Phenomenon, it might just be the ticket to your success.

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Forex Low Cost Options Available

2008-04-19T07:29:00.002-07:00

Forex Low Cost Options Available

By: Elboydny

This interesting article addresses some of the key issues regarding forex. A careful reading of this material could make a big difference in how you think about the forex market.

There are discount commission brokerages, charting resources, free news, and free analysis packages concerning Forex. This has become a downright scary situation in which securities regulators are in over their head. Many brokers have different types of accounts to suit the needs of individual investors. Ultimately a measure of market psychology is needed to achieve success.

By using several non-correlated systems. By using numerous automated strategies. You don't need much to get started with forex trading. Make sure that you accomplish your financial goals.

This has become a "trader's market" but only for the adroit. There are dealers who will quote currencies. Many brokers have found that their investors can benefit from following live trading accounts. It is true that they will tell you that a 1 or two pip spread exists on a specific currency pair. However some traders do forex-trading strategies that trade short term on the reactions to different news releases.

Be sure you are in touch with reality as far as your expectations and goals and other practical considerations. This trading method is so effective that your broker will think you can see the future. The majority of traders lose because they cannot control their emotions. Even though this market trades twenty four hours there are better times to trade.

Think about what you have read so far. Does it reinforce what you already know about forex? Or was there something completely new? What about the remaining paragraphs?

This means that by increasing your risk you can also maximize the dollar value of the position you open. Typically the minimum fees of an option trade range anywhere from fifteen dollars to $30 depending on your broker. This has become a strong correlation between a country's equity markets and its currency. Another advantage of the brokers market is that brokers might provide a larger selection of banks.

These rules have been researched and back tested and are then applied to a given market. Make sure that you are comfortable with the risks associated with your forex broker. Another advantage of dealing with a registered fcm is greater transparency of business practices. Additionally the system must be reliable and secure as digital signage can become a key point of contact with the customer. This trading method uses simple trader tools and does not require any costly traders software.

You don't know what point of the investing trend you are entering in. Ultimately a good trader fine tunes their trading system and see how the market reacts. The majority of traders make their decisions to buy or sell on impulse driven by emotions or opinion of others. Make sure you're ready to invest. Never lose more than your margin deposit, which is generally about 1%. There are many of forex systems sell online.

Knowing enough about forex trading to make solid, informed choices cuts down on the fear factor. If you apply what you've just learned about forex, you should have nothing to worry about and will make a lot of money.

Article Source: http://www.articlecafe.net

FOREX Currency Exchange Market - The Market that Makes NASDAQ Look Like a Lemonade Stand

2008-04-19T07:29:00.001-07:00

FOREX Currency Exchange Market - The Market that Makes NASDAQ Look Like a Lemonade Stand

By: JTK

Most people still have no clue. It’s not even listed in the financial section of most U.S. newspapers. Yet the Forex does more business in one day than all the stock markets in the world do in 60 days! That’s right – we’re talking between 1.8 – 2.2 Trillion dollars of business every day.

What is the FOREX, or FX for short? Both are acronyms for Foreign (Currency) Exchange. Up to the late 1990’s – this incredible market was the domain of the privileged: Central Banks, large financial institutions (Goldman Saks, etc), high net worth individuals, and governments. Today everyday people are now able to enter - and profit from - this incredible marketplace.

There are a bunch of benefits that make the Forex market a far superior investing &/or trading vehicle than any other financial instrument in the world. For example:

In the stock market – if you open an account with at least $25,000.00 – the Broker will allow you to purchase $50,000.00 worth of stocks. That is allowing you to Leverage your money on a 2:1 basis (2 to 1). Not bad right?

Well compare that to what many Forex Brokers are offering: 100:1, 200:1 and even 400:1 are available – even for starting balances of just $1,000.00. This means for every $1,000.00 of your money you bring to the table you can control up to $400,000.00 of currency! Now THAT’s what I call Leverage.

What’s important about Leverage? Using Other People’s Money (OPM) has been a major source of people & businesses generating wealth. Business loans, real estate loans, etc. Using the Forex to access large leverage rates offers gigantic opportunity for making money – and now the average Joe can get in on the action.

The fact is that banks and institutions like Goldman Saks have made a good portion of their profits from trading in the FOREX (there’s a reason the tallest buildings in every town are bank buildings).

The challenge in taking advantage of this market lies in the typical learning curve required to become a successful trader in the Financial Markets. This applies to whether you are trading Stocks, Options, Futures, or the Forex.

Training and Trade Recommendation services abound – but need to be scrutinized closely. Many charge thousands of dollars for software, training, or both. The point is – don’t get swept up in the excitement of the huge profits available in the market before doing your homework.

Contact me if you want to learn the other major benefits of trading the FOREX over stocks, options, etc – the differences will amaze you. If you are able to find just 20 minutes a week I can help you to enter and profit from this incredible market - even if you are a complete beginner to investing. If you can use a PC – then you are well on your way!

Article Source: http://www.articlecafe.net

Forex Practice Accounts - What are they really

2008-04-19T07:28:00.002-07:00

Forex Practice Accounts - What are they really

By: Matt Ellsworth

Forex test accounts allow you to trade the forex market while not putting your hard earned capital at risk. These accounts are often also called forex demo accounts, these accounts should be free - so if a forex broker is trying to charge you for one – just say I'll pass and look for another broker.

Most forex test accounts will work for roughly 30 days, some are longer and some are shorter it all depends based on the broker that you choose to open your test account with. We have found some forex brokers even let you continue to use the account for longer than the time frame that they say it the account is useable. However, other brokers will discontinue the account as soon as the time period is up.

Forex brokers offer forex test accounts to people as a way to get other people interested in their forex trading software and use their forex broker services. As a result - they will collect some basic information from you when you open your forex test account. Depending on the broker, they may call you and see how you are doing with the account and see if they can help you get started in a live account. Remember they get paid a commission only when you are making trades in a live forex account not the forex test account.

Our advice is to use a forex test account until you have tested your forex trading strategy and are comfortable trading the foreign currency market. There is nothing worse than making a mistake in a live account, especially when its something that you should have learned not to do in your test account. If you aren’t sure yet of how you are going to trade the foreign currency market and you are looking for a simple and easy to use system that will take about 15 minutes to use - you should check out FreedomRocks - it is an effective and easy to use forex trading system.

We have learned a lot using forex test accounts to test out different strategies and test new theories. Often times we will be running anywhere from 3 to 5 test accounts at the same time just to try out different forex strategies. Some brokers make it easy to have many accounts and other brokers make it impossible. The broker we use allows us to create new test accounts in just a few mouse clicks and they don’t care how many test accounts you have – as a result – it makes it a lot easier to test theories on their software as opposed to other forex brokers.

Even after you have been trading the forex market for a many years you will want to experiment and test out new methods of trading and that is what forex test accounts are great for. Test your new forex style without putting any money at risk in a test account.

Article Source: http://www.articlecafe.net

Understanding The Money Echange Rate Can Save You Money

2008-04-19T07:28:00.001-07:00

Understanding The Money Echange Rate Can Save You Money

By: Brian D. Jardine

Understanding the money exchange rates of the world makes purchasing overseas products, enjoying vacations and making business trips much easier. With all of the different currencies that countries have, whether it is from the Kenyan Shilling (KES) to the Euro (EUR) in France, all currency fall under a system of exchange. Since the world is filled with varying levels of economical statuses, there are some places that possess a higher value of currency than others.

Money exchange rates simply state how much one country's currency is worth in the units pertaining to another country. For instance, when traveling from the United States to Mexico you will want to know how much the dollar compares to the Mexico Pesos (MXN). While some countries will gladly accept the American dollar as payment, often, it is more advantageous for a traveler to exchange their dollars for the currency associated with their vacation destination.

The Affect of Currency Exchange Rates on Foreign Interaction

The currency exchange rates regarding foreign travel and buying products creates a system filled with ups and downs with room for comparison, especially when traveling to a foreign land. Money exchange booths and banks are scattered all over tourist destinations. You should understand that exchange rates can be rather mind-boggling and if you don't keep on top of this ever-changing system, you might get fooled into paying more for something than you should have.

This is because not all currency exchange locations offer the same rates. For example, large banks often present better rates than independent vendors and small-scale currency exchange booths. Doing a bit of home work upon arrival will help you to find the best rates in town.

If you enjoy buying goods from the Internet, knowing exchange rates come in handy. This allows you to decide whether or not you will receive a better deal once converting your currency. All of these details regarding a foreign purchase should be ironed out before completion since exchange rates are always changing. Often, currency exchange and foreign transactions are made easy with websites like Ebay, which posts both currency expectations for foreign purchases. For example, if a product costs AU $15.82, Ebay will make note that the final price in American dollars will be approximately US $12.07.

When exchanging currency in a foreign country, it is recommended not to go overboard unless you plan to spend a lot of money during your vacation. The more unused converted money you have, the more you stand to lose in the long run. This is because unused money will have to be converted into the currency of your country upon departure, which means you will most likely receive lower rates. For example, at the time this article was written, $100 United State Dollars equals $112.55 in Canadian Dollars, but $100 Canadian Dollars only equals to $85.65 United States Dollars.

Where Can You Locate Exchange Rates

When traveling, currency exchange rates and options are offered in grocery stores, airports, post offices and gift shops. As a tourist, you can avoid being taken advantage of as a clueless foreigner by calculating exchange rates on your own. This is when a currency calculator or converter will come in quite handy. On the market, there are many different models to choose from, including talking translators that double as a currency converter, pocket versions and currency converters thin as a credit card.

If you need to know the exchange rate for online shopping, there are several websites to look into. A few popular selections include: Yahoo Finance; Pacific Exchange Rate Service; ExchangeRate.com; and Knowingmoneymatters.com. These sites offer money exchange rates information, as well as convenient currency converters.

Article Source: http://www.articlecafe.net

Online FOREX Trading – Become a Successful Forex Trader in Two Weeks!

2008-04-19T07:27:00.000-07:00

Online FOREX Trading – Become a Successful Forex Trader in Two Weeks!

By: sacha tarkovsky

One of the most inspiring stories I ever read, was how legendary trader Richard Dennis taught 14 people who had never traded before, to trade successfully in just two weeks.

The result?

They traded and went on to make millions and become some of the most famous traders of all time.

So how was it done and can you do the same? Let’s find out.

Richard Dennis taught them three major points:

1. A simple method they could have confidence in.

2. Money management.

3. Applying the method with discipline.

His advice was very specific with no filler.

So, let’s look at what you need to learn.

1. Method

You need a method you have confidence in and it needs to be simple.

There is no correlation between how complicated a method is and how much money it makes.

In fact, the reverse is true.

A complicated method has more components to break and is less robust in the face of brutal market conditions.

Look up “technical analysis” on the net and learn specifically how and why it works and also the theory of “trading breakouts”

You should be using a long term trend following methodology looking for the big trends that produce the big profits and breakout trading is ideal for this.

If you want to win at online forex trading, you need to know about breakouts.

Base your methodology on it – It’s simple and it works.

Now you need to time entries.

Look at some indicators that are based on momentum and look up “stochastics” this is simply the best momentum indicator you can use.

2. Money Management

If you start with a “breakout method” and base your trading method on it, then stop placement is obvious.

If you only trade significant breaks your odds of success will be high.

3. Discipline

Is perhaps the hardest part of trading online forex.

You need to apply your method with rigid discipline otherwise you have no method at all.

Discipline is all about experience and even seasoned traders find it hard to keep executing a method when a string of losses occur.

However, you are part of the way there to having discipline, if you have devised your own method.

You know its logic and should be able to stay with it as you will have confidence in it to work.

All the material you need to get up and running is free and on the internet, but it’s worth reading a few books.

These are my favorites and will they inspire you.

1. Market Wizards and The New Market Wizards ( edit )

By Jack Shwager.

These are interviews with some of the top traders of all time including:

Richard Dennis and the turtles and many more – Packed with insight and very inspiring.

2. Trader Vic

By Victor Sperandeo.

A true trading legend, who shares with us his thoughts on trading, money management and trading psychology, a fantastic all round book.

By all means read a few more, but these three are my favorites from over 500 I have read.

Trading is Simple, yet people try and complicate it.

They think the more effort they put in the more they will get out – This is totally false.

Work smart not hard!

If you want to make money you need to work smart not hard and if you want a perfect example of this look at the turtles!

In just two weeks they all became great traders.

Maybe, you wont make as much money as them, but if you learn and do the above, you will have the basic platform to make big profits in online forex trading.

Finally, you will have done it all on your own and will have given yourself success, how satisfying is that?

Article Source: http://www.articlecafe.net

FOREX Brokers – What I learned as a Broker trading 5,000 clients

2008-04-19T07:26:00.000-07:00

FOREX Brokers – What I learned as a Broker trading 5,000 clients

By: sacha tarkovsky

I spent 10 years as a forex broker and traded thousands of clients, here I will give you a broker’s view of trading clients.

I will reveal who won, who lost, how we made money and how we treated them.

I joined as a rather green salesman and had no idea about the reality of forex and futures trading.

I was excited about joining an industry where millions were made and millions were lost by clients – It was very exciting!

The company

I was rather shocked at the reality which was:

Clients didn’t appear to win very often and the company based its balance sheet on commission to equity.

The view was that about 95% of clients would lose and they would do it all on their own, with no help from us.

The clients we liked (from a financial perspective) were the ones who made commission for the company and top of the list were:

Day traders:

They lasted for short periods, never won and made loads of money for the company.

If they believed it worked, let them get on with it and we would take the commission.

Shoot from the hip traders

The action men.

They loved the buzz, in and out all the time, trading the news and advice from gurus and with no discipline.

Again, they wiped themselves out and made us plenty of money.

The company did not dislike its clients.

We treated all clients well and did what a good broker should:

Help them with queries and made sure they got fast accurate executions.

We just let them do as they wanted and in most cases they lost – that’s simply the reality of trading.

The clients

We had clients from all walks of life, from retired people, to highly educated mathematicians and the few that did win surprised me.

The ones I personally hated were the ones I will refer to as “educated fools”

Cocky as anything and believed they had a divine right to win, because they were clever.

They would ignore my warnings, that they would not win with systems that were too complicated and tell me to mind my own business.

If I am honest, when they learned the reality of a wipe out, I felt a little inclination to say “told you so”, but never did.

Perhaps my favorite client was a retired lady, 81 years of age, who lived on a sheep farm in Australia.

A lovely lady and she taught me a few things, that I remember to this day.

She devised a system and showed it to me.

It was a simple buy and sell strategy and relied on holding big trends for months on end and you could learn it in a few hours.

Personally I thought it was to simple to work, but she built a $5,000 account to $39,000 in three months and had passed $100,000 in under a year.

She drew her charts by hand ( this was the late eighties) and didn’t have a TV and never read the papers.

Each day she would check her prices draw her charts and make her trades if she needed to.

A polite, humble trader, who was loved in the office by all.

We all had respect for the way she was our most profitable trader, even above some quite well known money managers.

We had many other clients.

Most lost and some won ( very few), but the ones who did win were humble, had simple systems, traded only when their systems told them to, had iron discipline and believed they were right.

This is just my experience.

I did trade a lot of people.

They from all walks of life and I learned very few won, but the ones who did, kept it simple, the ones who didn’t, had big ego’s, or liked excitement and traded with their emotions lost.

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Day Trading Systems – Consider This Question Before You Buy One!

2008-04-19T07:25:00.006-07:00

Day Trading Systems – Consider This Question Before You Buy One!

By: sacha tarkovsky

You will see day trading systems all over the net promising you huge gains but consider this key question before you buy one:

If the system makes such great gains, why does the vendor sell it for a few hundred dollars?

Of course, the answer is:

Because it doesn’t make money and the vendor is not stupid enough to trade it, when he can sell it to novice traders who are taken in by hyped up sales copy.

Day trading systems DONT work longer term and its one of the stupidest ways to trade online forex markets.

Don’t believe me?

Then ask any vendor selling a day trading system for a real time track record and see if you get one (let me know if you do)

What you will get is a hypothetical track record of great gains, but what use is this?

Hypothetical means it was done by the vendor knowing the closing prices, not risking real money!

Now if we al know tomorrows closing price today we would all be millionaires, but that’s not the reality of trading.

So why doesn’t day trading work?

1. Volatility in any daily or hourly period is random.

The period is to short and support and resistance levels are meaningless, so you cant trade of them – You may as well flip a coin.

So what happens?

Day traders constantly get stopped out and accumulate small losses as volatility can take prices anywhere in a daily period.

Do day traders ever win?

Occasionally they get lucky and win.

When they do they get obsessed with scalping a few points profit, or getting out at the end of the day, so they can never run profits to cover their huge amount of losses.

What happens – they get wiped out longer term.

There is no better way to lose your money than day trading!
Most day trading system vendors are:

Failed brokers, writers or salesmen and make their money from selling systems.

Of course they don’t trade themselves, as they don’t trust their systems to make money and would rather have the guaranteed income from selling the system it’s a lot less risky than trading it!

Day trading is a mugs game don’t fall for the hype look at the facts.

Article Source: http://www.articlecafe.net

Forex: Online Trading Safety: Why Some Trading Experts Risk Their Own Money When Teaching This Important Trading Tip

2008-04-19T07:25:00.003-07:00

Forex: Online Trading Safety: Why Some Trading Experts Risk Their Own Money When Teaching This Important Trading Tip

By: Jimmy Cox

Remember this important online trading safety tip: The markets will not keep your money safe. Though this is a well known fact, many people find it quite hard to understand. They believe that, no matter what, the market and GOOD FOREX will ALWAYS COME BACK, as though this were a law.

But, there`s no such law. A good online trading safety tips is to remember that forex don`t always come back, and neither do markets. If you want to think about the market in terms of laws of nature, the best one is the law of gravity, specifically:

++ What goes up must come down.

This is especially true for forex and sectors that have risen extremely quickly. You can protect your capital and your profits from this natural market law by setting stops.

A stop is an order you place to sell or buy a position you own if it hits a specified price. It`s called a stop because it stops you from losing any more money on the position. If you`ve sold short, you can place a stop order to buy to cover if the stock rises to a specified price. Stops are not complicated to use, and they are an integral part of trading success.

When we use the word STOP, we`re referring to a stop loss order. This is an order that directs your broker to sell a position you hold if the stock drops to a specified price. If you`ve sold short, you can place a stop loss buy to cover order to get out of the position if it rises to a specified price. Once the stop is triggered, it`s immediately executed as a market order.

Here`s an online trading safety example. Let`s say you buy a stock at 50 dollars a share. You have reason to think it will rise, but you also realize it`s a risky trade. You know that if the stock drops below 48.50, it means there`s trouble with the trade and you`ll want out. So, after buying the stock, you place another order: a stop sell order at 48.40.

This tells the broker that if there is market action at 48.40, or below, to sell your shares immediately in the form of a market order. They`ll be sold at the current bid, whatever that is. This will happen automatically, so you won`t have to watch the stock closely. It also means you won`t be tempted to hold on longer, hoping that the stock will go back up.

In general, there are two types of stop orders: stop loss and stop limit. However, some brokers use slightly different names for various order types, and may not offer all order types to their clients. I`ve already described the stop loss order.

A stop limit order is an order to sell a position at a specific price and no lower than that price, if the stock drops to that price or to buy to cover a stock sold short at a specific price and no higher than that price if it rises to that price. Once the stop is triggered, the order is executed only if it can be executed at the limit price or better, it becomes a limit order. In my opinion, you shouldn`t use stop limit orders, it needlessly increases your risk. If a stock`s price is dropping fast, chances are good that a stop limit order won`t execute at all.

Let`s say the stock from the earlier example does drop. It hits 48.40, and the stop is triggered. The stop order becomes a market order to sell. This means that it will execute immediately at the current bid price. The same principles apply to stops on short positions. If you sell a stock short at 13 dollars, expecting it to go down, you should place a buy to cover order at, say, 13.75. If the stock suddenly rises sharply, you`re protected and you can always re short the stock at its peak price later.

Let`s go back to the stock the trader bought for 50 dollars. If the stock is falling slowly, the market order may execute at 48.40, slightly lower, or even, occasionally, slightly higher. If it`s falling quickly, it could execute a little below 48.40. If the stock is falling very quickly, it could execute well below 48.40.

The possibility that they could be stopped out of a position far below the trigger price is one reason traders may avoid using stops. Although this could happen, it`s better than the alternative, to keep holding the position while it goes even lower. Besides, in most cases the position will be stopped out quite near the trigger price. In addition to fearing a bad execution price, some people are afraid that the position will start to go back up immediately after their stop sell order`s been executed.

A stock may occasionally bounce right at the point where you set your stop, as a random occurrence. But, the smart trader weighs this rare frustration against all the times he`ll save much more money by using stops to get out of losing positions. Think of it as the cost of insurance. Just don`t forget this last online trading safety tip; using stops as insurance will occasionally cost you a little, but it will save you many times more in the long run, and you don`t often get a chance to insure against a law of nature.

Article Source: http://www.articlecafe.net

Successful Forex Trading

2008-04-19T07:24:00.003-07:00

Successful Forex Trading

By: Martin Bottomley

Forex trading is fast becoming one of the easiest ways to earn large amounts of money on your investment. Then again, it can also be the easiest way to lose all of your money in a short period of time. That is, if you do not know what you are doing. The fact is that even seasoned traders make mistakes and only through the understanding of basic principles and the application of sound strategies can you be assured of earning money in the long run.

One of the most basic things that you have to understand about Forex trading is that there will always be losing streaks along with the winning ones. Having this fact in mind will keep you going during those times that you do not get a good deal. The best way to handle Forex trading is to have a reliable trading system coupled with a rigid money management system.

There are many different strategies employed in Forex trading today. What you should do is either adopt one of them or come up with your own. No matter which path you choose to take, the important thing is that your trading system has been proven or can be proven to be reliable. How would you know that your trading system is reliable?

It is quite simple, really. A reliable trading system is one which gives you more winning trades than losing ones. More than this, your winning trades should be – in general – of greater value than your losing trades. You do not need to be a rocket scientist to figure this one out. More wins with greater value equals profits. No matter how you come up with your trading system, the bottom line is that you get consistent results.

Once you have come up with your trading strategy, try it out first. You can do this by using a demo account before trading live. Using a demo account is advantageous as you will be doing exactly the same thing as live trading – without real money. This way, you can test your strategy and pick out the flaws f there are any.

If, after you have tested your strategy, you are confident that you are getting consistent results, you could go live. Your strategy should not stop there, though. Once you engage in live trading, you must take care to instill strict discipline when it comes to money management. Do not deviate from your strategy once it is put in place. This is perhaps the foremost reason for traders to suddenly lose everything. Always remember that you cannot win all the time and that losses are part of trading. If you have a strategy in place, do not scramble to recoup your losses outside the boundaries of your strategy. The trend is that winning will come soon after your losses.

One rule you should stick to is never trading with more than 2% of your account at risk on a single trade. Whether you win or lose, this percentage is going to get you the long term results that you are aiming for.

Article Source: http://www.articlecafe.net

Vital Factors In Forex Trading

2008-04-19T07:24:00.001-07:00

Vital Factors In Forex Trading

By: Kenneth Aikens

Imagine if you were a successful forex trading professional. You would feel very good knowing that you knew the three keys to lucrative forex trading that the vast majority of forex traders are not aware of. What are the three secrets? The three secrets are simply this. One, find a "Reliable Forex Trading System". But that is not enough, thousands of forex traders have good systems and still fail at forex trading. Two, trade your forex trading system with strict "Discipline". That's right most forex trader's lack the discipline that is required to be successful. Three, have an effective "Money Management" system in place when forex trading. Now that you know the three keys let's tackle the forex trading basics.

Do you know what Forex trading is. Forex trading is an alternative to the unpredictable nature and whims of the other markets. Forex trading is based on the movements of a set of currencies that are sold in currency pairs, where one currency is the base and one is the counter or quote currency. Forex trading is a very interesting method of trading simply because it allows people from all over the world the chance to trade and strike it rich in a market that has untold liquidity. Forex trading is best market for any lover of finance and for any person that prefers his money working for him.
Forex means the foreign currency exchange, and that today alone nearly $2 Trillion will be traded by banks, governments, corporations, trading partners and private and corporate speculators. Forex traders around the world are competing against other forex traders, banks, and institutional traders who are seeking the same potential rewards from their own trading activities. Forex traders frequently jump in and out of the market and closely monitor their positions throughout the day. Forex trading strategies are the key to successful online currency trading but how do you know which strategies to use and when to use them.
Comprehending technical analysis and, in particular, being able to interpret price charts is essential for any forex trader. Technical analysis is a method of forecasting price movements by looking at purely market-generated data. Technical analysis does not guarantee success, but a methodical application of its principles may improve your performance as a trader. The goal of technical analysis is to uncover the patterns given off in a current market by examining past market patterns, often designated as signals.
Once you engage in live trading, you must take care to instill strict discipline when it comes to money management. Your overall personal forex trading strategy should include three vital ingredients; the currency pair you decide to trade, what technical indicators you use for entry/exit plans and sound money management. Forex trading is a speculative endeavor that requires proper training, education, discipline, confidence, risk management and money management skills.
Learning is the key to any field and the field of forex trading is no different. The truth about forex trading is that, many people are earning small profits from trading while only few are successful with it. One of the most basic things that you have to understand about forex trading is that there will always be losing streaks along with the winning ones. The best way to handle forex trading is to have a reliable trading system coupled with a rigid money management system.

We end here but in conclusion I hope you the reader were able to discern the three main points of this article which were. A reliable forex trading system, discipline and a money management system. These three make up the financial trinity of all successful forex traders as well as would be successful forex traders. Implement these three principles and you will be well on your way to financial freedom courtesy of forex trading.

Article Source: http://www.articlecafe.net

The Global Spread Of Risk Aversion: NZD Heads South

2008-04-19T07:23:00.001-07:00

The Global Spread Of Risk Aversion: NZD Heads South

By: Murray Nickel

The Speculation Game:

As the credit squeeze takes hold in the US and the sub-prime/derivative markets unravel a swing towards risk aversion is rippling out across the globe.

While the USD is out of favor at the moment, it may return to its role of traditional safe haven if economic crises unfold in some of the many developing countries with impressively bubble-like stock markets.

Two other obvious and traditional safe havens are the Swiss Franc (CHF) and spot Gold (XAUUSD).

Way back in August 2005 in my article "The Silence Of A Bursting Bubble" I covered the impending slide in the US housing market, and the flow-on impact on the finance sector - see also "Is Banking Tanking?" from early December 2006. At the end of the August 2005 article I noted that if the Fed was fleet-of-foot in managing a recession, then the "speculative bug" might move on from housing into spot Gold and cause the 3rd bubble in a decade (after technology and housing):

"If the Fed is remarkably fleet-of-foot they may just be able to avoid a nasty recession . but would that just lead to a third bubble this decade? Gold at US$1000 an ounce? No that's NOT a forecast! All I can say for sure is we're in for some interesting times ahead."

If Gold does become a safe haven for investors as they flee from risky derivatives and Hedge Funds, then maybe a push well beyond the last spike to $730 per ounce is on the cards. Back in 2005 when spot Gold was at $430 per ounce a claim of potential for $1000 per ounce seemed outrageous - but now it doesn't feel quite so extreme. Yes, interesting times ahead indeed!

Of course, speculation is fueled by easy money, and a credit squeeze could kill off the speculative fervor for a long, long time. Well EVENTUALLY it probably will. But pockets of speculation should continue for a while yet - perhaps they'll be participated in by less and less of the worlds investors. Chinas stock market and spot Gold are two examples where speculation may continue and bubbles may form, but participation will be much narrower than in the technology or housing bubbles.

The Carry-trade Game:

While on the topic of speculation, here's how the carry-trade game works in the forex market:

Large, professional investors (apparently largely Japan-based) borrow Yen at 2-3% per annum, sell the Yen (JPY) and buy the New Zealand Dollar (NZD), earning 4-5% on their NZD holdings as interest rates in NZ are much higher than those in Japan.

He pockets the 2-3% rate differential. Meanwhile the combined buying activities of all these carry-trade speculators drives up the NZD (and down the JPY), so he pockets further gains. But if the NZD weakens, that 2-3% margin is quickly lost and our speculator friend is left frantically trying to close out (cover) all his short JPYNZD positions. To do this he buys JPY and sells NZD, which simply adds fuel to the fire and further accelerates the decline of the NZD.

When "risk-aversion" becomes the catch-phrase globally, speculative activities like forex carry-trades are soon abandoned in favor of "safe havens" like USD, spot Gold, or Swiss Francs (CHF).

Down Under For The NZD:

My TrendSensor trading systems generate buy and sell signals based on technical analysis of markets. My trading signal clients receive these signals and we currently have an open short position in NZDGBP. Add in the fundamental analysis on carry-trades covered above, and you have a pretty strong case for a short position in NZDGBP - or NZD vs any major currency for that matter.

In the last day NZDGBP has declined by 2.5% and nearly 100 points, so the NZD journey south is underway in impressive style.

If 100 points in a day is impressive, the prospect of a 900 point slide is simply mouth watering for a long-term forex trader. I anticipate NZDGBP forming a low in the 0.3000 to 0.3100 range. That's a long journey south from the recent 0.3929 high point.

This trade could last over five months and be one of those rare money-making trading opportunities that unfold 4-5 times a year and form the foundation of the long-term forex traders success. So it can pay to take a long-term perspective and give the market room to move as it zig-zags down. The alternative is to conduct a series of trades throughout the journey south. This can reduce trading risk, but may increase the risk of losing sight of the bigger picture during the perturbations encountered during the journey.

The complete article, including a technical chart and trading strategy for NZDGBP is available at www.TrendSensor.com/MarketBrief/

DISCLOSURE: I currently hold a short position in NZDGBP.

Article Source: http://www.articlecafe.net

Why Use Bollinger Bands In Forex Trading?

2008-04-19T07:22:00.002-07:00

Why Use Bollinger Bands In Forex Trading?

By: Kenneth Aikens

Imagine if you were a successful forex trading professional. You would feel very good knowing that you knew exactly how to diagnose your indicators on your forex trading platform. Bollinger Bands is one of many different technical indicators used by currency traders. Below we will take a look at how Bollinger Bands are used by professional forex traders.

Bollinger Bands are forex trading indicators that were first developed by John Bollinger during the 1980s. Bollinger Bands are one of the most powerful concepts available to the technically based investor, indicating whether prices are high or low on a relative basis. Bollinger Bands are based upon a simple moving average. The very popular Bollinger bands are actually a set of three horizontal lines. Bollinger Bands are plotted at standard deviation levels above and below a moving average. Bollinger Bands are a technical tool used to determine whether a currency pair is high or low relative to its recent trading history. The difference between Bollinger Bands and envelopes is envelopes are plotted at a fixed percentage above and below a moving average, whereas Bollinger Bands are plotted at standard deviation levels above and below a moving average.

The default setting for Bollinger bands is 20 and 2, which means the indicator takes the past 20 time periods into account and bases its calculations based on two standard deviations from the mean. Bollinger recommends using 20 for the number of periods in the moving average and using 2 standard deviations. Using the standard deviation ensures that the bands will react quickly to price movements and reflect periods of high and low volatility.

Bollinger Bands can also be used for identifying when trend reversals may occur. Trending patterns and continuation signals In general, during an upswing, the price will stay within the upper band and the central moving average. The bands will often remain tight as long as the trend is strong. A trend that hugs one band signals that the trend is strong and likely to continue. If the bands are close and then begin to widen, it may signify that the trend is weakening and may possibly be due for a reversal.

Bollinger created his bands at a time when many analysts did not understand that volatility was a dynamic variable that fluctuated and not a static one (like percentage based envelopes). It was John Bollinger that standardized the format by adding volatility as a key variable, using standard deviation as the way to set band width. The distinctive characteristic of Bollinger Bands is that the spacing between the bands varies based on the volatility of the prices. A narrow envelope indicates a lower amount of volatility while a wide envelope indicates a higher amount. High volatility levels can sometimes be used to time trend reversals, such as market tops and bottoms and low volatility levels are sometimes used to time the beginning of new upward price trends following periods of consolidation.

We end here but in conclusion I hope you the reader were able to discern the major features of Bollinger Bands. Acurately interpreting Bollinger Bands along with other powerful technical indicators will place you well on your way to financial freedom courtesy of currency trading.

Article Source: http://www.articlecafe.net

Why Use Bollinger Bands In Forex Trading?

2008-04-19T07:22:00.001-07:00

Why Use Bollinger Bands In Forex Trading?

By: Kenneth Aikens

Article Source: http://www.articlecafe.net

Day Trading - Why You Will NEVER Succeed

2008-04-19T07:21:00.004-07:00

Day Trading - Why You Will NEVER Succeed

By: monica hendrix

It constantly amazes me when I see people write about day trading and how you can make regular profits and beat the market. Try it and the market will beat you and take your equity. The reason you can’t win is:

All short term volatility is random.

This means that support and resistance levels in daily time frames are meaningless and you can’t use them to get the odds on your side.

If you see a day trading system advertised ask this simple question:

Can I see your real time track record of profits over 3 years?

I will tell you now you wont get one – you may get a hypothetical one (but that’s done knowing the closing prices!) so it’s worthless.

If there is no real time track record why would you buy any system?

Would you take driving lessons off someone who had never passed their driving test? Of course you wouldn’t but in forex trading when people buy day trading systems that’s exactly what they do!

It’s obvious that if these guys could really make money, they would keep quite and would be making themselves millions and not bother you for a few hundred dollars.

More novice traders pick day trading than any other method despite the fact that their GUARANTEED to lose.

The reason they do this is greed and they believe what their told, by so called gurus and mentors or who have never traded in their lives.

These vendors rely on hyped advertising copy to sell their systems – They win the client losses, pure and simple.

A Better Way to Trade

Is to forget day trading and either swing trade (look for trades lasting around a week) or follow long term trends that can last months or years.

Both will give you data where support and resistance levels can be traded with the odds on your side and the one you choose is a matter of personal preference.

Trading is an odds game, nothing more.

That doesn’t mean you can’t win you can and traders can and do make a lot of money if they trade with the odds on their side and that means avoiding day trading.

People buy day trading systems and believe the hype that achieving currency trading success is easy but they soon get a reality check, when they lose all their money.

Don’t fall into the trap of trying to day trade!

In conclusion, avoid day trading pick a method where you can get the odds on your side and do your homework.

Article Source: http://www.articlecafe.net

Forex Trading - Why If You Try and Predict Your Guaranteed To Lose!

2008-04-19T07:21:00.003-07:00

Forex Trading - Why If You Try and Predict Your Guaranteed To Lose!

By: monica hendrix

Many traders who trade forex markets think they need to predict what will happen to win but all this does is ensure they lose. 95% of forex traders lose and most try and predict forex prices so don’t join them.

You can win but you need to understand the fact below:

If you predict – you are hoping levels of support or resistance hold!

Now if you “hope” in any form of trading, kiss goodbye to your cash.

So how do you win? let’s find out.

Firstly, on the net you will see a lot of people saying their systems predict the future but this is marketing hype nothing more and never comes with any real track record to back up the claims.

These vendors will tell you markets move to a scientific formula, but of course this is not true – if it were:

We would all know the price in advance and there would be no market!

The fact that markets are unpredictable and based upon opinions makes a market move.

So first get out of your head all those scientific ideas that the far out crowd like to go on about like:

Elliot wave, Gann and Fibonacci numbers, cycles etc - they don’t work and if they did the person who discovered them, would be to busy making money to bother you.

The key to market success is to see trading as an odds game - similar to blackjack.

The successful blackjack player knows that if he plays when the odds are in his favour and increases his bet size accordingly when the right conditions present themselves he will lose some hands but over time he will win and win big.

It’s no coincidence that some of the top traders in the world came from the world of poker and blackjack – their success is simply down to playing the odds.

How Do You Get The Odds In Your Favour?

Its simple don’t predict or hope or predict trade with price momentum.

For example, if prices move toward support don’t hope it will hold – wait.

Look for price momentum to turn up above the level and trade with it.

There are two great indicators for measuring price momentum so learn them - there the stochastic and RSI and their covered in our other articles.

If you wait for price momentum to turn in your favour the odds go up dramatically in your favour and you can get the odds on your side.

Trading is an odds game and don’t let anyone tell you otherwise.

Good luck and good trading!

Article Source: http://www.articlecafe.net

Learn Forex Trading - Learn This Essential Fact First To Succeed

2008-04-19T07:21:00.001-07:00

Learn Forex Trading - Learn This Essential Fact First To Succeed

By: monica hendrix

In this article we are going to look at one essential fact you need to succeed when trading currencies. If you understand it, you can will be taking your first step to learning forex trading correctly and achieving forex trading success – the fact you must understand is:

The ratio of winners to losers hasn’t changed in 50 years - 95% lose and 5% win – So what you may say?

Well think about it:

The ratio of winners to losers has stayed the same and this is despite the increased power of computers in terms of data analysis and forex analysis programs, data analysis, better and more timely news sources and a huge amount of experts wanting to help you.

Doesn’t this fact strike you as odd?

All these advantages! Yet the bulk of traders still find their currency trading strategies lose.

Well there is a simple reason why and it’s an essential part of your forex education:

Forex trading is relatively simple and is as much mindset, as it is a good currency trading system, so learn the points below and you will be able learn forex trading correctly and succeed:

1. Simple systems work best

There is a temptation to devise complicated forex trading systems - after all computers can help you do it easily, but the fact is this will help you lose.

A complicated system has more elements to break – a simple system is best as it is more robust.

2. News is the enemy

Today there is a lot of news and it’s presented well - all those convincing arguments!

All great to hear or read but it will simply help you lose - news is discounted in seconds so it wont help you as the market looks to the future.

3. Volatility Has Increased

The volatility of currency trading has increased with faster communications.

This means you have sharper counter trend moves to deal with and the big challenge today is dealing with it – this has actually made currency trading success harder!

4. The myth of the expert

In today’s society we consult experts on everything, yet currency trading is one area an expert won’t help you.

The fact is success comes from within no one is going to give it you.

Many traders buy worthless e-books for hundred dollars or so and believe the hype and these guys can help – dream on.

They present great marketing copy and normally claim great success – with no substantiation whatsoever and never have a real track record to back up their claims, just a worthless simulated profit in hindsight.

If you want to win, ignore them and find your own way.

Trading the truth

The market price is always right, only you can be wrong and it moves as and when it wants to.

To win you have to create a set of rules to lead you to currency trading success, have confidence in them and the discipline to execute your trading signals.

Most people cant take responsibility for their actions, lose and blame the markets or others for their losses but in reality its their fault.

Most people simply dont have the mindset to win and thats as true today as 50 years ago.

You just need to learn forex trading the right way and this article has given you something to think about and a valuable bit of forex education.

Article Source: http://www.articlecafe.net

The Mindset Of The Successful Forex Trader

2008-04-19T07:20:00.003-07:00

The Mindset Of The Successful Forex Trader

By: monica hendrix

Forex trading can be learned by anyone, yet 95% lose all their money so what makes forex trading so hard? It's not learning the right information - it's doing so and executing it with the right mindset.

Let’s look at the traits of the really successful traders and what you can learn.

1. Acceptance of Responsibility

All successful traders rely on themselves and don’t believe anyone else can give it to them – so if you’re the type of guy who wants to try and follow a so called guru or buying an e-book and think you will win, then you’re going to lose.

If you accept responsibility and learn what you need to then this will give you the next vital character trait that you need to succeed.

2. Confidence

If you want to succeed, then you need to have to have confidence.

While this may sound obvious, many traders never acquire this trait. They follow gurus or mentors, and think that they can have confidence in them. However, this confidence soon evaporates when losses are encountered.

You won’t follow any method unless you have confidence and confidence is really a key to acquiring the next character trait:

3. Discipline. The key To Success

If you read any of the interviews with the world’s top traders, then you will find the word discipline mentioned all the time.

Discipline is vital to your forex trading success.

Lack of discipline is probably the major reason most forex traders fail to succeed.

You need to have the discipline to follow your method through losing periods, which will lead you to longer term success. Discipline is built on confidence, and without it you won’t succeed.

Keep in mind, that if you don’t have the discipline to follow your method, then you have no method at all!

If you have the above traits you will also be able to acquire to more which will lead you to currency trading success.

4. The Ability To Isolate Yourself

You must be able to rely only on yourself.

Don’t be tempted to discuss your trading with anyone, or give anyone else advice.

You will simply allow your emotions to get involved, and you need to keep them out of your trading to succeed.

5. Patience

Patience is a must in forex trading.

You need to not only have, the patience to wait for the right forex signals to come and not try and rush profits.

You must also have the patience to execute your trading system, through periods of inevitable losses.

The above 5 factors are key traits of all successful forex traders and give them the mindset to accept short term losses and stay disciplined to achieve overall currency trading success.

Confronting the Truth

The forex market forces you to confront truth.

Your opinion counts for nothing; the truth is the market price, no matter what you or anyone else thinks. The market is all powerful and always right and only you can be wrong.

This is why you have to create a framework or set of rules, that allows you to keep your emotions or weaknesses under control and allows you to deal with an unpredictable market and come out a winner.

This is why you cannot find market success through someone else. Traders need to find their own truth and work out how to confront the market - this is why you must do their own research and trust yourself.

If you cant do this and you believe all the people who tell you about how easy forex trading is you will lose your equity and lose it quickly.

Article Source: http://www.articlecafe.net

Forex Trading - Don't Underestimate Moving AveragesForex Trading - Don't Underestimate Moving Averages

2008-04-19T07:20:00.001-07:00

Forex Trading - Don't Underestimate Moving Averages

By: Kenneth Aikens

Picture yourself as a successful forex trading professional. You would feel very good knowing that you knew exactly how to diagnose your indicators on your currency trading platform. Moving averages is one of many different technical indicators used by forex traders. Below we will take a look at how moving averages are used by professional forex traders.

Moving averages are one of the most popular and easy to use tools available to the forex trader. While technical analysis is largely subjective, moving averages are mathematically precise and objective. One of the reasons moving averages are so popular is that they embody some of the most common stipulations of successful forex trading. Moving averages are extremely important for not only isolating trends, momentum, and support/resistance, but more importantly, for highlighting the underlying bias of the dominant trading cycles. Because the forex market is a spot market, moving averages are used to calculate the current average of prices, and can help traders make investment decisions on the spot.
Moving averages are a useful technical tool in a trending market. The reason for this is simple; they are considered by most analysts the most basic and core trend identifying indicators. It is designed to smooth out temporary price fluctuations and reveal the true path of the underlying trend. Moving averages may also act as support and resistance levels in a trending market. Some investors prefer simple moving averages over long time periods to identify long-term trend changes. When two moving averages are used together, the longer term moving average is used to help identify the trend, and the shorter one for timing purposes. When there is no trend, the moving averages are flat and are not of much use. Fortunately for forex traders the forex market is a trending market - a perfect market for utilizing moving averages.
There are five popular types of moving averages: simple, exponential, triangular, variable, and weighted. The two major types of moving averages are "simple" and "exponential". Simple moving averages are widely used, predominately because of its ease of computation. Simple moving averages apply equal weight to the prices. A simple moving average (SMA) is formed by finding the average price of a currency or commodity over a set number of periods of time.
Exponential moving averages (EMA) are by and large preferred when charting prices on the currency markets. Exponential moving averages reduce the lag by applying more weight to recent prices relative to older prices. The method for calculating the exponential moving average is fairly complicated. The important thing to remember is that the exponential moving average puts more weight on recent prices.
History has shown that when prices begin trading above the moving average line the market is becoming bullish and traders should be looking for buy entry points. When prices begin trading below the moving average line the market is becoming bearish and traders should look for an opportunity to sell. Investors typically buy when the price of currency pair rises above its moving average and sell when the it falls below its moving average.

We're finished but you're just beginning. Your next steps should be to continue to research various forex technical indicators. Open a forex demo account, practice trading with moving averages and other technical indicators. By doing this you will prepare yourself to become a successful forex trader.

Article Source: http://www.articlecafe.net

A Novice Forex Traders Guide To Fundamental Analysis

2008-04-19T07:19:00.001-07:00

A Novice Forex Traders Guide To Fundamental Analysis

By: monica hendrix

If you are new to forex trading you have access to a lot of fundamental analysis as the click of a mouse from banks brokers and news wires you can look at and trade upon it - let's look at forex fundamental analysis and how to use it.

A forex trader, who makes trades based upon fundamental analysis, will look at the supply and demand situation in relation to the currency studied, and try and predict the impact of the various factors on its movement and they include:

• Economic growth and economic policy

• Interest rate outlook

• Balance of payments

• Employment

• Trade deficit

• Political Factors

To name but a few but there is a problem when trying to use fundamental analysis:

The facts are there for all to see but price is ultimately decided by millions of different opinions such as you and me and we all draw our own conclusions from the facts and numbers. Furthermore all the news is available in seconds anywhere and this means it is discounted.

With human nature involved and the fact that fundamental analysis is quickly discounted it is almost impossible for the novice trader to execute trading signals on.

If you want a graphic example of how forex fundamental analysis won’t help you make money consider this fact:

The ratio of winners to losers is the same today as it was 50 years ago and this is despite better news more of it and faster communications. So if you are thinking of trading it think again.

A far easier way is to study charts and use technical analysis.

A technical approach takes into account both the supply and demand situation, as well as investor psychology. We can see the impact of both at once and reflected in the price.

Many traders don’t believe that technical analysis works, as it can’t take into account the fundamentals but this is not correct:

Technical analysis assumes that all known fundamentals are going to show up instantly in price action. Technical analysis therefore is simply a short cut way of taking into account the fundamentals and more importantly takes into account human psychology.

The equation for market movement is:

Supply and demand factors + Human perception (investor psychology) = Price action

So if you are thinking of trading using forex fundamental analysis, you can save yourself a lot of time and increase your chances of success, by taking a technical approach - that reflects ALL the factors that influence price and increase your odds of success.

With technical analysis you act on the reality of price - not opinions and therefore trade the truth and not what you or anyone else thinks it might be.

Article Source: http://www.articlecafe.net

Forex Trading - Support & Resistance Exposed

2008-04-19T07:18:00.002-07:00

Forex Trading - Support & Resistance Exposed

By: Kenneth Aikens

Would you like to know how to be a successful forex trader? Just imagine having the same knowledge that only 5% of all successful forex traders have. The difference between the haves and the have-nots in currency trading is the ability to consistently interpret technical indicators accurately. One technical indicator that many forex traders employ is support and resistance. But what is support and resistance and how is it used by forex traders?

Support and Resistance is the foundation of most of the top trading systems. Support and resistance levels represent pauses in the trend when investors reconsider all information. The idea of support and resistance is vital to understanding and interpreting the forex market. Support and resistance are basically price bands where the price will probably stop falling or rising respectively. Support and resistance are created because price has memory. Support and resistance are by far the most important forex trading technical indicator you will ever find, and the best forex trading option if you want to be on the right side of the market.

Support and resistance are like a floor and ceiling, with prices contained between them. Support like resistance is rarely a precise price; it is more often a relatively contained price range, frequently in the vicinity of past technical patterns. Support and resistance levels on bar and candlestick charts are a major component in the study of technical analysis. Support and resistance come in all varieties and strengths. The length of time that a support or resistance level exists helps to determine the strength or weakness of that level. When a level of support or resistance is penetrated, price tends to thrust forward sharply as the crowd notices the breakout and jumps in to buy or sell. When a level is penetrated but does not attract a crowd of buyers or sellers, it often falls back below the previous support or resistance.

Support

Support is defined as a price level below which it is supposedly difficult for a currency pair or market to fall. Additionally it is a price level at which a currency pair or other security stops falling at least temporarily, hence the name. Support represents the level at which buying pressure is strong enough to absorb and overcome selling pressure. Support defines that level where buyers are strong enough to keep price from falling further. Support lines turn into resistance and resistance lines turn into support.

Resistance

Resistance is the opposite of support and represents a price level or area over the market where selling pressure overcomes buying pressure and a price advance is turned back. Resistance defines that level where sellers are too strong to allow prices to raise further. By the time the price reaches the resistance level, it is believed that supply will overcome demand and prevent the price from rising above resistance.

So we have learned that: Understanding the concept and significance of support and resistance is important for profitable forex trading. One aspect of its unique quality is that support and resistance is defined as an area or a zone not a single price level. One of the basic precepts of support and resistance is that once a support level is violated it becomes a likely new resistance level and when a resistance level is penetrated it becomes a new support level.

We end here but in conclusion I hope you the reader were able to discern the major features of support and resistance. Accurately interpreting support and resistance along with other powerful technical indicators will place you well on your way to financial freedom courtesy of currency trading.

Article Source: http://www.articlecafe.net

Forex Education - Three Keys To Trading Success

2008-04-19T07:18:00.001-07:00

Forex Education - Three Keys To Trading Success

By: Kenneth Aikens

Picture yourself as a successful forex trading professional. You feel very good knowing that you know exactly how to diagnose the technical indicators on your forex trading platform. You also feel very good knowing you can implement sound money management along with the mental discipline all forex traders must have. Below we will take a look at why technical analysis, money management and trading psychology are the three keys to forex trading success.

Forex training is very important if you want to get into the world of forex trading. The reason that forex training is so vital is because the forex market is extremely competitive and volatile. Forex training is available via online courses, advanced trading workshops and one on one mentoring. The best place to get forex training is from someone who is already involved in forex trading. Quality forex training is the key to success. If you want to make money and become a successful forex trader the proper forex training is the key.
1. Technical Analysis
Technical analysis is one of the keys to success for a forex trader. If you are new to the study of technical analysis, you may be wondering just what technical analysis is. Technical analysis is the study of market action, primarily through the use of charts, for the purpose of forecasting future price trends. Another important foundation of technical analysis is that price movements are not random, but tend to trend in some direction most of the time. Technical traders use trading information such as previous prices and trading volume along with mathematical indicators to make their trading decisions. Although technical analysis is definitely no panacea, I think that it can be combined with fundamentals and money management to produce excellent results.
2. Money Management
In many ways, forex money management is looked at as a burdensome and highly unpleasant activity. Forex money management is part and parcel of any good trading system. The performance of a forex trading system, in terms of profits, drawdown, or any other parameter you would like to measure, depends on both the trading system itself and the money management rules it follows. Forex money management is one of the most important things you can learn before you actually begin making live trades. The practice or so called demo account will help you get acquainted with the world of online trading and find your own forex money management method. Taking the time to do research, learn good currency trading techniques and making yourself knowledgeable on matters of good forex money management is only going to pay off for you in spades in the end of it all. Besides knowing which currencies to trade and recognizing entry and exit signals, the successful trader has to manage his resources and integrate money management into his trading plan.
3. Trading Psychology
Trading psychology is one of the keys to investment success. Trading psychology is so important because day trading can be a very emotional business. Discipline comes into play when battling fear and greed. One of the basic tenets in day trading psychology is to know who you are fully and completely. In a trading business, one has to be in the right state of mind to support your discipline in this arena full of uncertainties. As we can see, without both a sound method and good discipline to implement it trading may not be successful.
Forex trading is a demanding and potentially profitable endeavor for trained and experienced investors. If you don’t get quality forex training, you are likely to lose money. However, having the proper amount of forex trading training is essential to anyone seriously looking into profiting from the forex market.

We're finished but you're just starting. Your next steps should be to discover and/or implement the ideas discussed in this article. Find a dependable forex trading system. Be disciplined. Implement a reliable money management system. Do these 3 things and you will be on the fast track to becoming a profitable forex trading pro.

Article Source: http://www.articlecafe.net

Finding The Right Forex Online Trading Platform

2008-04-19T07:17:00.002-07:00

Finding The Right Forex Online Trading Platform

By: George Peters

The foreign exchange market is huge; it's the largest once to date and it involves the exchanging of currencies as a business. Like the stock market, it's all about trading but it is different because the parties involved in the exchange usually do so directly, in person, on the phone or on the Internet. For an Internet exchange to be possible it is therefore wise to use a forex online trading platform and finding the right service is important. Are you looking for a site like this for your forex business? If you are looking, keep the following elements in mind.

A Test Program

When trying your hand at foreign exchange and a forex online trading platform, the first thing you want to look out for is a site that gives a proper demo of their services. This is one sure way for you to figure out how they handle your financial affairs. Not many services offer a demo account but the ones that do are usually the most successful. The demo account should give you live features of the actual trading platform and therefore a clear idea of how the system works and how it can work for you.

Rates

Changing currencies is all about the rates; it's the one thing that you are going to keep your eye on in the forex trading business. The forex online trading platform that you choose to use must have updated to-the-second data on exchange rates and they must be accessible at any time of the day at your convenience. The success of this system will definitely help you make up your mind about going for a particular online forex service.

Currencies Used

All major currencies are considered in forex trading. But this also involves some of the lesser known currencies as well. Find out how meticulous your web service is. A good forex online trading platform will be able to provide figures that cover the most number of currencies in the market and not just give you reports of the major ones.

No To Fees

The last thing you need is someone charging you a fee or a commission for the forex trading service. Some online services do the service without fees. Of course, these are the most dedicated and the ones you should be working with. The way this kind of forex online trading platform makes money is through buying and selling differences; nothing more.

Ask For Charts

If you like charts and use them heavily to help you translate your figures, find a forex online trading platform that can produce them. Documents like these can help make your operations smoother even though they are constantly being upgraded because it makes the whole experience easier. Services that can do this are both professional and dedicated to their work.

Pay Attention To The Service

The best advice is to be the judge of any number of forex online trading services. By looking at the way they handle things for you, how they approach your needs, and how effective their solutions are, you can come up with the best decision for your forex business. These are the best things to look out for when looking for a partner you can trust.

The business of foreign exchange is no joke and so your decision to find the best forex online trading platform shouldn't be a joke either. Use this guide to help you find the best qualities and weed out the liabilities of different online services. For a person going into the biggest trading business in the world, you can only strive for the best by using the best.

Article Source: http://www.articlecafe.net

How to Disappear... Again

2008-04-19T07:17:00.001-07:00

How to Disappear... Again

By: Frank Ahearn

My name is Frank M. Ahearn and if you read my other articles, you would know that I am in the business of teaching people how to disappear and be more private. I have updated some of the tools to disappearing and living a virtual life.

Email
Start by getting an email address, I always suggests www.hushmail.com or www.mail.com. When checking your mail it is wise to do from an internet café away from where you live.

Fax Service
I think one of the greatest internet tools are Jfax and Efax numbers offered by www.jfax.com and www.efax.com. You can have a voicemail box or fax number in every state and almost every country. How does it work, simple sign up and get virtual number anywhere you want. You give the number out as your voicemail or fax, your family, friend or clients contact you ate your new number in Aruba and that transmission is forwarded to your above www.hushmail.com address.

What is great about this service is you can fax from your laptop anywhere in the world.

Virtual Office
If you need a full-blown virtual office, I recommend www.onebox.com.

Cellular Phone Service
Before you buy, cell phones for international use understand, an international cell phone is classified as a GSM mobile phone that operates on the GSM 900 and GSM 1800 frequency. An international cell phone with the appropriate sim card will provide coverage in Europe, Asia, Africa and the Pacific Rim including Australia. A world cell phone with the GSM 1900 frequency will expand coverage to include the United States, Canada and a growing part of South America.

To stay out from under the radar I suggest a prepaid cell phone from www.telestial.com. For added security, I suggest using a prepaid international calling card to make calls on your prepaid phone. For added security, I suggest you change your cell number or dump your phone every so often.

I use several cell phones, one for out going calls and the other for incoming. I have the incoming cell phone forwarded to another prepaid cell phone.

Mail Drops
To have a physical mailing address I suggest www.executivemaildropservices.com as advertised on www.escapeartist.com. They offer other services like virtual phone numbers and faxes; however, I suggest not having all of your services with one company, just incase someone breaches your information.
.
How to Make Money
One of my clients who expatriated to Madrid, Spain makes great living selling watches on www.ebay.com. Never touching the merchandise and having the funds transferred immediately into his www.paypal.com account. My friend in Spain realized he had so much experience selling watches, he wrote an EBook about watches that tripled his income. Look at his site Classic Watch Company.

The internet is like the Wild West all over again, money to be made hand over fist. If you were a waiter, write that EBook How to Make Better Tips, if you were a taxi driver, write the EBook on Taxi Drivers Safety. Plenty of people are making money on E-book’s you can as well.

When you write that EBook send, it to www.escapeartist.com they are always looking for quality E-Books.

New Identities
New identities, if you are not a criminal you do not need a new identity. There are several reasons for not obtaining a new identity beside the legalities. You do not know whose identity you are obtaining, they could have fifty thousand dollars in IRS judgments and the IRS to satisfy the debt can seize your bank account.

The new identity you obtain can have a warrant for an arrest, or a registered sex offender that has to register with the police because of the Megan’s law. The idea of going to the cemetery and find a child who died at an early age and obtain their information, forget it, you missed the boat on this one - it will not work.

Taxes & Income
Get a good accountant, audit are not fun. I speak from experience.

Property
The laws are different from country to country, hire a local lawyer, one that was recommend from a good source. One of my clients in Central America paid $95,000.00 US for a condominium, what he did not learn until after the fact was the condominium was actually listed for 95,000.00 in the local currency, which made the property truly valued at 49k US. Buyers beware.

Passports
I tell my clients not to get one; however, it’s a personal choice. First Antilles Offshore offers several services from second passports to Residency Packages, check their site www.firstantilles.com.

IBC & Bank Accounts
International Business Corporations, setting up an IBC up is relatively easy, there are so many countries that offer a wide arrange of services. Take your time, determine the solvency of the bank and country, and understand the fees and structures.

When I opened my first IBC I never asked how long it took funds to clear, it turned out it was thirty days and caused me nothing but problems. Ask some very simples questions, things you would normally overlook. How long for funds to clear, cash and checks. What are the bank fees, some banks charge more then you would expect. How long does it take to wire transfer? The ATM card, what are the fees and the 24-hour spending limit.

Do not forget get a good accountant!

Relocation Companies
Some great companies assist people moving offshore, if you are going to Paris check out www.parlorparis.com a great site and service. Pick up some B-books about your destination and visit your location before moving or buying property.

Three Keys to Disappearing:

Misinformation is the art of taking every piece of data existing about you, deviating them and destroying them beyond recognition. Keep in mind your home phone number list every call you have ever made over a period of time, your cellular phone as well. Your frequent flyer account with an airline lists every trip you logged. Call up those companies and change your contact information on file.

Disinformation is the art of leaving a bogus trail. If you are looking to disappear, make tons of phone calls to realtors all over the country. Make small purchases on your credit card, perhaps a cheap airline ticket or a bus ticket to Iowa. The key is to have the person shadowing you look in places you are not.

Reformation is the art of getting from where you are to where you want to be and leave no trails.

Good luck on your travels and ventures.

Best,

Frank M. Ahearn
Privacy Expert
www.disappear.info

Article Source: http://www.articlecafe.net

It Is Important To Undergo Foreign Currency Trading Training Before Leaping Into The Market

2008-04-19T07:16:00.003-07:00

It Is Important To Undergo Foreign Currency Trading Training Before Leaping Into The Market

By: Donald Saunders

Despite the fact that the majority of people will be familiar with the term Forex trading, relatively few people understand precisely what it involves and will almost certainly feel that it is something for the 'big boys'. Well, this could not be farther from the case and a growing number of private individuals of quite modest means are trying their hand these days.

There are many hundreds of currencies around the world but not all are traded on the Forex or FX market which is mainly concerned with seven major currencies. Forex trading is the purchase and sale of these currencies in pairs so that you might for instance buy Euros by selling Australian Dollars. The idea is simply to buy a currency when it is at a low price and then sell it again once the price rises to make your profit. Naturally this sounds easy enough but, in the real world, it is not quite as easy as that and you will have to have a reasonable amount of knowledge before you venture into the market.

The Forex market is the largest financial market in the world and operates twenty four hours a day around the globe, which might go some way to explaining why such a large number of people are attracted to it. Years ago trading currencies was the territory of the major banks and financial institutions but now even private individuals can join the fray provided they do so through a broker.

Therefore, if you are considering getting in on the act then your starting point needs to be to seek out some training and either get yourself on a good training course or apprentice yourself to an experienced trader.

It is vital for you to understand how the currency market works before diving in as it is a volatile market with few if any boundaries and barriers and it is very easy to lose a fortune if you do not know what you are doing.

You must begin by understanding trading psychology since even the best traders will both make and lose money as the market moves and it can be a rough ride at times not simply in financial terms but also mentally.

You will also also to get to grips with the tools of the trade such as mapping and charting which are perfomed today using quite sophisticated software. As with the majority of software the results you get back depend very much on the data that you feed in and it will take time to learn how to use these tools.

Yet another very important aspect of trading is discipline and this is something that does not come naturally to most of people. It is very easy to find yourself getting carried away when you are trading profitably and to over-extend yourself only to come back to earth with a thud. Establishing your own rules and trading principles is essential for your financial success.

Should you be tempted to dive in with both feet then take a moment to have a good hard think before doing so. Very few beginners who attempt to go it alone without the requisite training succeed and, even if they do meet with success in the short term, they invariable run into difficulty before very long.

There is nothing better than a sound grounding in the principles of Forex trading and the confidence that it will give you will be reflected in the profits that you make.

Article Source: http://www.articlecafe.net

Forex: The Only True Global Market

2008-04-19T07:16:00.001-07:00

Forex: The Only True Global Market

By: Marcus Masters

Trading, whether it is stocks, commodities, or derivatives (like futures and options) can be a very lucrative business to be in.

With the decision to become a trader, you must also choose what type of market you will focus on and what instruments you will trade. Will it be shares of publicly traded companies, commodity future contracts like oil and gold, or currencies.

Most of the financial markets that exist in the world today are within the framework of a central exchange, and for that reason they are limited in their scope and daily trading volume. Every market except one, which is the foreign exchange currency market.

The foreign exchange (forex) market has no central exchange, and instead it exists only as a highly interconnected web of bank servers and individual brokers. The 'over the counter' type of trading tends to be much larger in scope than trading centered around a central exchange (such as the NYSE), and for the reason the forex market is hands down the largest financial market in the world with daily volume surpassing $2 Trillion USD.

The forex market is the only true global market that exists, as it is not based in one specific country and instead is created by the perpetual buying and selling of banks and financial institutions in every major city, 24 hours per day.

Unlike traditional exchange-based markets which have set times that they are open and closed, the forex market literally follows the span of daylight around the planet.

When you are a forex trader you need to be familiar with the term 'global trading day.' The global trading day begins with the London market open hours (about 3AM New York time) and continues across all the major cities and time zones.

There are three distinct times throughout the global trading day when there is the most trading activity (and consequently the most liquidity). These times are based around the open-hours of the three major cities in the world where the largest volume of forex activity takes place: London, New York, and Tokyo.

So what does this mean for you, the trader? Because the forex is a global market and there are no set open and closed times, it is possible to trade at any time during the day (except on weekends).

It also means that due to the level of daily trading volume, this market is very liquid and it is virtually impossible to get 'stuck' with an open position.

Because of these lucrative trading features, many firms and brokers have sprung up to cater to the large demand of forex market access. Many of these companies offer highly advanced trading platforms that feature very low commission trading and seamless market entry/exit.

All in all, forex trading is by far one of the coolest ways around to make money today, since all you really need is a broadband-enabled laptop and a funded trading account to make money from anywhere in the world.

Article Source: http://www.articlecafe.net

What is Online FOREX All About

2008-04-19T07:15:00.003-07:00

What is Online FOREX All About

By: caterpiller23

I am experienced in utilizing all available online charts, forex trading tools, signals, news, education, systems and training software. However, this is easier said than done as the skills of the Currency Trading Signal takes a long time to master. The reality is that not many people are ready to be entirely devoted to the perilous process of online forex trading.But, online currency trading is like life where you're got to learn from your wrong moves and keep moving on.This article will look at fundamental analysis and how it used in FOREX trading.

FOREX Signals, One of the disadvantages of FOREX trading is the time investment needed to monitor the markets for advantageous entry and exit points. There are lots of great Forex trading strategies and Forex trading systems but to say there's only one, would not be a true statement.Mainly major banks, international organizations and some other are doing well in currency trading.Basically, currency trading involves four main variables: currencies, exchange rate, time, and interest rate.You can start playing the currency trading market with real market conditions immediately.utilising quality and reputable forex trading software and forex trading systems ...24hr commission-free currency trading w/ real time execution and guaranteed fills.

Nevertheless, if you want to learn forex trading finding a good trading strategy is vital to becoming a pro in the forex market.Included are links to forex trading, margin brokers, forex analysis, forex charts, quotes, etc.thus if you up till now desire to get into this trading game, you better study Forex trading prior to you create trading Forex. There are many different market sectors that are involved with Forex trading.At its simplest, Forex trading is currency being traded for another currency.
There are no guarantees in Forex trading, and you don't want to get wiped out. Review online forex trading courses to start achieving your own financial goals with currency trading. Without these online tools and forex trading platforms, this format of investing would not be possible. Learning to read charts, trading tools, news and compile and use all of this information makes it much easier to develop a powerful forex trading strategy. Our will help you to understand forex trading including tutorials and tips on how to make money trading forex.

www.a-zforex.com, Our forex trading system is the ultimate in forex trading platform. This low cost forex trading system comes complete with free charts and free email support. So you must learn them and understand them if you'd like to become a forex trading ninja master! You can sign up for one of the demo accounts and practice your forex trading today. Prior to the initiation of your forex trading, you need to know how to read these charts and analyze them. This way you may acquire skills and a basic forex trading education, without any fees.

Conclusion:
There are a large number of forex trading software programs available to get you started in playing the field in Forex trading. Software programs that are either desktop based or web based can be used in your Forex trading. It is wise to learn your own patterns If you are in penny stocks, forex currency trading, or stock markets. Forex trading is intended for sophisticated investors and is not suitable for everyone.

Article Source: http://www.articlecafe.net

forex forex signal forex strategy system currency trading

2008-04-19T07:15:00.001-07:00

forex forex signal forex strategy system currency trading

By: Maco

Exchange of a nation’s currency for that of another is Foreign Exchange (FOREX). The foreign exchange market is a largest non-stop financial market in the world where currencies of different nations are traded. This Forex market is bigger than three times the aggregate amount of the US Equity and Treasury markets combined. This is not the traditional market as there is no physical location or central trading location. It is operated on a global network of banks, corporations and individuals trading one currency for another. Foreign exchange market conditions can change at any time in response to real-time events.
The purpose of investing in Forex trading is to earn profits from foreign currency movements. Forex trading is always done in currency pairs. Two currencies that make up an exchange rate are called currency pair. Investors who trade currency pairs need very fast buy and sell Forex signals. Without these Forex trading signals, it is difficult to decide market conditions in terms of entry or exit in the market. These Forex signals and trade alerts will indicate you for going out or coming into the market. Many Forex companies, who have been involved in this kind of business, have developed forex sms signal services. Several Forex signal providers got a "free test" also that is really beneficial.
Initial investors don’t go for in details; they often rely upon one or two technical signals to decide when to buy and when to sell a currency pair. When they get a good understanding of Forex market, they start to use Forex signal software to decide when to pick up a forex entry point and forex exit point. It is not very difficult to find a automatic Forex signal indicating when to buy and when to sell a currency. An investor should compare his investment to alternative options. It is wise to buy currency you expect an increase in value relative to the currency you are selling. In an open trade, a trader has bought or sold a particular currency pair and has not yet sold or bought back the equivalent amount to close the position
To gain high profits in a Forex trading, you should use a Multi-Target Exit Strategy. This strategy is based on providing the customers with multiple acquiring profit and stopping losses. This Forex trading strategy allows you to enter multiple Take Profit and Stop Loss levels. This Forex strategy also requires that the trader follows the trade in real time. A Forex trading strategy with a high profit percentage rewards you mentally also as it will boost you up for further trade and will make it enjoyable. A string of profits will increase your morale.
In Forex trading system, it’s not obligatory to buy some currency to sell it later. There are situations for buying and selling any currency without actually having it. Usually Internet-brokers establish the minimum deposit such as $ 2000, for working in the FOREX market, and grant a leverage of 1:100. The major currencies traded in FOREX, are Euro (EUR), Japanese yen (JPY), British Pound (GBP), and Swiss Franc (CHF). All of them are traded against the US dollar (USD). A technical analysis is also made that presumes all the information about the market and further fluctuations in prices. They too consider factors, economic, political or psychological. For more information on forex trading logon to-: http://www.connection2forex.com

Article Source: http://www.articlecafe.net

Understanding Tips On Forex Currency Exchange

2008-04-19T07:14:00.000-07:00

Understanding Tips On Forex Currency Exchange

By: John Spencer

Today forex currency trading is a form of trading that working men choose as this can be traded at your convenience, 24 hours a day. Trading here is done on the basis of trading of liquid currencies which are currencies of different countries that can back their currencies with commodities like gold and silver.

Forex trading became popular since it was backed by the large financial institutions.Forex trading is used to achieve profits by buying one currency against another and making a profit when the exchange rate goes in your favor.

The forex market reacts to several vvariables as the stock market does.When there is political or economic news coming out this can reflect on the strength of that particular currency causing major losses when you hold that currency when this happens.

Similarly, if there is an economical gain in the company through new routes or commodities involved in international trade, the cost of the currency exchange for their currency increases. This leaves you in a profit for your currency, than the previous day. And coincidently, inflation in the country proves to be profitable to you if you sell your currency at a high rate. This is because just like in the stock market, you have to buy low and sell high in the forex currency market.

Forex trading is usually done on a shorter timeframe.Because many things can happen in one day with the economy of a particular country that can cause panic and have an effect on the currency rate.A rumour can already be enough to make a move on the forex market to maximize profits or keep losses to a minimum.

That's why the success lies in understanding and keeping up with the movements in the forex markets to make you a succesfull trader.Closely monitoring of these forex markets is a necesaty when you want to become profitable.

If you intend to invest in forex currency in a large scale, it proves to be better that you work with a currency broker. Of course, if you are comfortable and are able to make the right decisions with the help of the bank that deals with foreign currency, it is quite okay to opt for this decision.

It is important that if you decide to use a currency broker to trade the forex markets that you seek enough information on them.The more experienced brokers have been out there quite some time.On the internet you can also find a lot of info on the forex market and the brokerage firms.Study the markets before making your first investment and puting your money on the line.

Article Source: http://www.articlecafe.net

Norman Oklahoma Real Estate

2008-04-19T07:11:00.001-07:00

Norman Oklahoma Real Estate

By: Andy Janko

"If you are looking for a place to raise a family, the many new construction homes in the community are sure to appeal, with their amenities and generous lots. Developments have been bustling in Norman since 1981, so there are also many previously owned homes with plenty of character and mature lots to choose from. Retirees may enjoy the historic properties in Norman, many of which are very well maintained and feature detailing not easily found in today’s homes.

Norman is a great market to consider if you are looking for a new home. Home to the Medieval Fair and Chocolate Festival as well as a number of other points and events of interest, Norman is a great place to live – whether you are retired, a professional, or raising young children.

Norman, Oklahoma is the largest city in Cleveland County, the third largest city in the state, and is conveniently located only 20 miles outside of downtown Oklahoma City. The city has more than 100 000 residents and about 20 000 students who reside in the city during the school year. As the employment and business center of Cleveland County, Norman offers many job and employment opportunities. If you are interested in the Norman real estate market, you may be pleasantly surprised to find a happy confluence between affordable, attractive homes and plenty of job and business opportunities that make affording that new home very plausible.

Norman is also a dynamic place where scientific research, technological innovation, and cultural events occur. Thanks to the University of Oklahoma, which is right in the city, many of the country’s best minds regularly visit the city for lectures and conferences as well as research. When you choose to buy Norman real estate, you will be buying property in a city that has a long tradition of intellectual diversity and exciting work.

The university boasts the very large and impressive Sam Noble Oklahoma Museum of Natural History and the Fred Jones, Jr. Museum of Art. The Jones Museum attracted national attention in 2001 when it was given the most significant collection of impressionist art ever given to be bestowed to an American university. This collection, the Weitzenhoffer Collection, contains stunning works by Cassatt, van Gogh, Gauguin, Renoir, and Pissarro, to name just a few. Residents of Norman can view the collection in campus and the collection has also attracted many impressive art scholars to the city as well. If you have always wanted to live in a place where art is important and thriving, Norman is an excellent choice.

Norman also offers many exciting housing options. The historic downtown area offers many beautiful older homes nestled on tree-lined streets close to the OU campus. The west side of Norman has been expanding recently, offering some newer development properties and luxury homes. In this area, the Brookhaven neighborhood has attracted the most attention, with attractive townhomes, apartments, and showcase estates available for discerning home buyers. The area close to the university is also seeing some infill developments. Norman was ranked at the 40th best place to live in 2006 by Money Magazine. This gave Norman the highest ranking of any Oklahoma City."

Article Source: http://www.articlecafe.net

Choosing a Forex Third Party Signal Provider

2008-04-19T07:10:00.000-07:00

Choosing a Forex Third Party Signal Provider

By: Tk

With the growing popularity and easy access to the foreign exchange (ForEx) market, more and more people are drawn to it as their financial vehicle of choice. Along with this popularity come all the extras. This includes all kinds of software, trading systems for sale, books, videos, and third party signal party providers. Today I’m going to touch on a few points when seeking out a third party forex signal provider.

Before we get into choosing a provider we need to have a good understanding of what a third party signal provider is. A signal provider is a trader or analyst that generates trades that in turn get placed on your account. You can have several signal providers trading your forex account or just one.

Like anything else, all third party signal providers are not created equal. At first glance a trader may look like a home run. That same trader may well end up completely torpedoing your entire account in one afternoon. To help make sure this doesn’t happen we’ll set down a few guidelines. These guidelines will give us something to look for when choosing our third party signal provider.

1. The first thing I look at is weather the trader is a winner or a loser. This may seem obvious to nearly everyone, but I often see losing signal providers with 50-100 people trading their signals.

2. The next thing I look at is how long they have been a winner. If a trader has been winning for a week that means nothing to me. I recommend that you don’t trade any signal provider with less than a few months of results to show you. Any one can place a few good trades one week and get lucky. If you are going to be trading this trader’s signals they need to be established.

3. Look at the max draw down. This is the largest peak to trough draw down in equity that the trader has historically had. Some traders refuse to take a loss. This causes them to hold on to losing trades forever or until they turn to a winner. Turning a loser into a winner sounds great, but it will eat up a huge chunk of margin and may never turn around. If it doesn’t turn in your direction, you will have your entire account destroyed by a trader that could have taken a 30 pip loss but held on until it was an 800 pip loss.

4. The first three are easy to look at. They will be displayed right on the main screen of signal providers to choose from. Once you get a few signal providers you are thinking of using, its time to dive a bit deeper into their history.

a. Look at their actual trades. Do they have a good win rate because they have opened a ton of trades all at the same time on the same currency pair? They may have 20 winners in a row. This looks great, but if you look a bit deeper you will see that its really only 1 winning trade places 20 times. Not as impressive is it?
b. Look at their draw down on individual trades. Do they let a trade go 300 pips against them and then close it out when it hits 5 pips of profit? This is a trader who lets their losses run out of control and cuts their winning trades short. It’s not a trader that you want in control of your money.
c. Do they add to losing positions? A trader who constantly adds to losing positions hoping it will turn for them is not someone you want trading your account.

5. Choose a signal provider that suits you. Some traders may provide larger returns over time, but take bigger risks leading to bigger draw downs. This might be OK with you. If you are more conservative and cannot stomach large drops in equity you probably should choose a more conservative trader.

These are just a few things to look for when choosing a third party signal provider to trade your forex account. You should always trade a demo account before opening a live account with real money. Remember it’s your account. In the end you choose the signal providers, and you are responsible for what happens.

Article Source: http://www.articlecafe.net

Advantages of Forex Trading

2008-04-19T06:58:00.000-07:00

Advantages of Forex Trading
By: Maco
Foreign exchange trading involves buying and selling different currencies. It works on the theory that is similar with share market. As we know that to make the profit, you have to buy at lower price and sell at higher price, or we can also sell at higher price first and buy at lower price. But its not as easy as it sounds. By studying certain market conditions, you can actually make profits in forex. All you have to do is to analyze the forex in a correct way and do the good trade.
Why to go for Foreign exchange trading? There is an option to invest in stock market also but here are a few important advantages of currency trading over stock market.

24-hour Trading
Forex trading is done on 24-hours basis. This market is open throughout day and night as somewhere in the world, there must be this buy and sell trading is going on. Traders involved in forex trading strategy can always get that first hand information and can act accordingly. The currency rate is actually run through telecommunication all over the network of banks 24 hours a day from 00:00 GMT on Monday to 10:00 pm GMT on Friday. There are ECNs (Electronic Communication Networks) which bring together buyers and sellers.
Greater Liquidity

There is a superior liquidity in the market as there are always buyers and sellers to purchase and sell foreign currencies. Forex trading market size is 50 times bigger than the New York Stock Exchange and liquidity of such large market ensures price stability. Forex trading stop orders could be carried out more simply. This makes Forex trading signal more liquid and permits Forex traders to take benefit of trading opportunities as they happen rather than waiting for the market to open the next day.

100:1 High Leverage in forex trading
100 to 1 leverage is commonly available from online forex dealers, which substantially exceeds the common 2:1 margin offered by equity brokers. This gives them a huge leverage in their trading and presents the potential for extraordinary profits with relative small investments. Leverage can also go the opposite way and may lead to huge losses if you are not careful.

Forex trading transactions have no commissions. Forex Brokers can earn money by fixing their own speculation between what a currency could be bought at and what it could be sold at. In difference, Forex traders have to pay a commission fee or brokerage fee for every futures transaction they come in to the view. The forex market is so large that no one individual, bank, fund or government body can influence it for a long period of time. In forex trading strategy, you can trade between seven currencies but not everyone trade in all.

There are certain trading signals that give indications to the trade. These forex signals are delivered by email, instant messenger or direct to your desktop. Some services even offer auto-trading, allowing you to auto-execute their trading signals direct into your broker account. For more about these forex,forex trading strategy,forex signal, visit: www. connection2forex.com
Article Source: http://www.articlecafe.net
www.connection2forex.com

โฟเร็ก คืออะไร : forex คืออะไร : การซื้อขายเงินตรา

2008-03-22T01:33:00.000-07:00

Forex คืออะไร?

Forex ย่อมาจาก Foreign Exchange บางครั้งเรียกย่อว่า FX คือ อัตราแลกเปลี่ยนเงินตรา
Forex Market หรือ ตลาด Forex เป็นตลาดการเงินที่ใหญ่ที่สุดในโลก ด้วยมูลค่าการซื้อขายมากกว่า US$ 2 trillion (2 ล้านล้านดอลลาร์) ต่อวัน เป็นตลาดการเงิน ที่มีสภาพคล่องสูงมาก ตลาดเปิดทำการซื้อขาย 24 ชั่วโมง ตลอดวันทำการ โดยหยุดการซื้อขาย แค่วัน เสาร์-อาทิตย์เท่านั้น
การซื้อขายใน ตลาด Forex เป็นการซื้อขายค่าเงิน โดยซื้อเงินสกุลหนึ่ง ในขณะเดียวกัน ก็ขายเงินอีกสกุลหนึ่งออกไป หรือเป็นการจับคู่แลกเปลี่ยน ซื้อขายค่าสกุลเงินนั่นเอง ตัวอย่างเช่น เงินสกุลยูโร/ดอลลาร์สหรัฐฯ (EUR/USD) หรือ เงินสกุลดอลลาร์สหรัฐ/เยนญี่ปุ่น (USD/JPY) เป็นต้น

ค่าเงินสกุลต่างๆ ที่มีการแลกเปลี่ยนซื้อขายในตลาด Forex ที่สำคัญ มีดังนี้

Symbol
ชื่อสกุลเงิน
ชื่อเรียก
ประเทศ
ตลาด เปิด-ปิด
USD
ดอลลาร์
Buck
สหรัฐอเมริกา 19.00-03.00
EUR
ยูโร
Fiber
สหภาพยุโรป 13.00-21.00
JPY
เยน
Yen
ญี่ปุ่น 06.00-14.00
GBP
ปอนด์
Cable
อังกฤษ 14.00-22.00
CHF
ฟรังซ์
Swissy
สวิสเซอร์แลนด์ 13.00-21.00
CAD
ดอลลาร์
Loonie
แคนาดา 19.00-03.00
AUD
ดอลลาร์
Aussie
ออสเตรเลีย 05.00-12.00
NZD
ดอลลาร์
Kiwi
นิวซีแลนด์ -

การที่เราจะซื้อขายใน ตลาด Forex จะต้องเปิดบัญชีกับ Forex Broker เป็นโบรกเกอร์ทางอินเตอร์เน็ต เราสามารถเทรดออนไลน์ได้ ตลอด 24 ชั่วโมง ตั้งแต่เช้าวันจันทร์ ถึง คืนวันศุกร์ สำหรับมือใหม่ ยังไม่เคยเทรดเลย แนะนำลองเปิดบัญชีของ Marketiva ดูครับ มีเงินปลอมให้เล่น $20000 (เบิกเป็นเงินจริงไม่ได้ เอาไว้ฝึกเทรด) และมีเงินจริงให้ฟรีอีก $5 ดอลลาร์ หรือ โบรกเกอร์ที่แนะนำ คลิกที่นี่

ตารางเวลาเปิด-ปิดตลาด ของแต่ละโซน (ค่าเงิน)

ตลาดของแต่ละโซนจะเปิด-ปิด คาบเกี่ยวกันตลอดทั้งวัน ทำให้เราสามารถเทรดได้ 24 ช.ม. แต่ช่วงที่เหมาะแก่การเทรดคือช่วง ตลาดยูโร (EUR) เปิด ถึง หลังตลาดอเมริกา (USD) เปิด 4-5 ชม. คือแถบสีแดงด้านบน ประมาณเวลา 13.00 - 24.00 ตามเวลาไทย ปกติจะเป็นช่วงที่ตลาดผันผวน ราคามีการเปลี่ยนแปลงมากกว่าช่วงอื่น

การบริหารเงินจาก เงินฟรี $5 ให้ได้ $20480 ใน 1 ปี

บรรทัดที่ 4 จากรูปด้านบนที่ เป็น % พื้นสีม่วงอ่อน คือแผนการเทรด ว่าเราจะเทรดครั้งละกี่ % ของเงินทุน บรรทัดที่ 3 pip/day คือเป้าหมายจำนวนจุดที่เราต้องทำใน 1 วัน และ บรรทัดที่ 2 pip/month คือจำนวนจุดที่เราต้องทำใน 1 เดือน ถ้าทำตามแผนได้ทุกวันในเดือนที่ 13 เราจะได้ ยอด $20480
ตัวอย่าง ถ้าเราใช้แผนการลงทุนแบบ 20% (แถบสีเขียว) ในเดือนแรก เราจะลงทุนวันละ 1$ หากเราทำได้วันละ 25 จุดทุกวัน พอครบ 1 เดือน ได้ 500 จุด เราจะได้กำไร 100% ได้เงินทุนเพิ่มเป็น $10 พอเดือนที่ 2 ก็ลงเพิ่มเป็น ครั้งละ $2 ทำตามตารางแบบนี้ไปเรื่อยๆ เพิ่มขึ้น 100% หรือ 2 เท่าในทุกเดือน จนครบทุกเดือน ก็จะได้ยอดเงินตามเป้าหมาย
หากเราเลือก แผนลงทุนที่ใช้เทรดต่อครั้งด้วย % ลดลง เราก็ต้องทำ จุด ให้ได้มากขึ้นต่อวัน และในทางกลับกัน หากลงทุนด้วย % เพิ่มขึ้น เราก็ทำกำไรด้วย จุด ที่น้อยลง
อันนี้เป็นตัวอย่างแบบแผนการลงทุน อาจจะเห็นว่าง่ายๆ แต่จริงๆ เวลาเทรดจะไม่ง่ายแบบในตารางนี้นะครับ เราจะต้องฝึกฝน ศึกษาหาความรู้ เพื่อให้เราชำนาญ เทรดให้ได้ตามเป้าหมายที่กำหนด ซึ่งไม่ใช่เรื่องง่ายเลย แนะนำให้ลองฝึกจากเงินปลอมก่อนให้เข้าใจ จึงเริ่มเทรดด้วยเงินจริง

การลงทุนคือความเสี่ยง ยิ่งผลตอบแทนเยอะความเสี่ยง ก็ยิ่งเยอะตามไปด้วย จึงควรศึกษาให้เข้าใจก่อน การลงทุนครับ

1. ศึกษากราฟ รูปแบบราคา อินดิเคเตอร์ เพื่อหาแนวโน้มของราคา และสัญญาณในการเข้าเทรด การหาจังหวะปิดเพื่อทำกำไร เหล่านี้สามารถหาศึกษา ได้ตามเว็บต่างๆ ตามลิงค์ด้านขวามือครับ
2. ศึกษาหลักการบริหารเงินในบัญชี และบริหารความเสี่ยง
3. ขยันศึกษาหาความรู้เพิ่มเติมเสมอครับ

Is Online Forex Trading for You?

2008-03-05T15:44:00.004-08:00

By: Gerald Greene
Forex trading is the Big Daddy of the investment world. Daily volume far surpasses that of all of the world's stock markets combined. Major participants include governments, corporations involved in international trade, banks and financial institutions, hedge funds, and large professional traders.

Until recently, trading forex was beyond the reach of the small to average private trader. However, the growth of the Internet and the rapid growth of online forex brokerage firms that target the smaller investor have changed that. Internet technology now allows online firms to provide the necessary forex data feeds and information flows directly to your computer, often free of charge.

Just a few years go the data feeds were too expensive except for those with deep pockets who were trading large sums of money.

The average trader/investor can now easily open an online forex account and trade alongside the big boys. But should he/she?

Despite the claims you may see on some FOREX web sites, FOREX is not risk-free. You are trading with substantial sums of money and there is always a possibility that trades will go against you.

There are software trading tools, however, that can minimize your risk, and with caution, and above all education, the FOREX trader can learn how to trade profitably while minimizing losses that are part of the business on the losing trades.

No one should trade forex without first doing a good bit of research and study. One of the best ways to become comfortable with the pricing, trading procedures, and software is to open an online trading practice account. Most online forex brokers offer free trading accounts where you can make trades with "paper money" and in addition access online lessons about how best to trade successfully.

Forex trading when properly done can be quite profitable. But it is a specialized business and is not for the lazy or fainthearted. You must devote some time to educate yourself about trading forex before placing real money at risk. Then you should start out by trading small. See how you do trading real money before ramping up to trading substantial positions.

While trading your practice account will quickly bring up your comfort level as to procedues and managing the software, you will soon find that trading real money and putting that money at risk is an entirely different psychological matter. Some traders will enjoy the challenge and some will not.

If you feel extremely uncomforable while trading then perhaps forex trading is not for you. Like any specialized business some folks will be suited for trading forex and some will not be. It's better to pass if you feel too confused or just don't want to work at it. It's far better to pass and save your money than feed the big alligator until the dent in your bank account forces you to stop.

You may also find that forex trading is not for you if you are too relaxed and trade like a madman. Profitable forex trading requires care in choosing low risk entry points and a lack of self discipline in following a well thought out trading strategy will lead only to losses.

In summary, forex is an exciting and potentially profitable business. However, before you can expect to trade well you must become well educated and follow a trading plan that will limit your trading to trades that have a high percentage of being winners.

Forex Tutorial - Start Right Here

2008-03-05T15:44:00.003-08:00

By: Michael Williams
If you are a beginner in the Forex market a great thing to look into would be a Forex tutorial. A Forex training is an excellent source in gaining knowledge about the inner workings of the Forex market. Through a good Forex tutorial a beginner can learn basic trading skills and techniques in order to learn how to chart the market properly. This is definitely something that is extremely important and useful for anyone choosing to become a Forex trader.

Not that long a go finding a foreign exchange tutorial was not that easy a thing to find. Finding a Forex training was next to impossible because accessibility to the Forex market was limited to banks and large financial institutions only. Online trading has opened the doors to many more, including individuals who benefit the most from having a tutorial.

Nowadays there are many places to look for a Forex tutorial. Not only are there individuals providing these services, but also organizations and institutions as well. They offer these services in many different ways, such as online and in a classroom. This allows those looking for a tutorial to find one that suits their needs the best.

A lot of those who use these tutorials like the advantage of online availability. This is allows them to get started in trading while still learning in their free time. As well as being able to do it any time, they can also take the Forex tutorial from wherever they want as well. The only disadvantage to these is the absence of one on one interaction between a student and teacher. Whether this is important to you or not, is up to you.

Every Forex training that is available however will come with some kind of disclaimer that they are only for knowledge. This means that they cannot guarantee any profits. This puts the onus on the reader to use the knowledge to the best of their abilities. It is a fair statement, because it does require skills to turn a profit properly, not just book knowledge.

Because the Forex market is in real time with instant decisions required of traders, Forex tutorials are not completely beneficial on their own. The trader in the Forex market also has to take into consideration market analysis, market intelligence and their understanding of market movement.

This however does not mean that a foreign exchange tutorial is not beneficial at all. They are definitely a great foundation to have in learning about the Forex market. So take a Forex tutorial, but remember you must have skills and experience to build upon what you may learn there.

Learn Forex Trading - How Can I Make It Work?

2008-03-05T15:44:00.001-08:00

By: Michael Williams
Once you have decided to enter the Forex market, you must decide how you will go about starting to learn Forex trading. Indeed when you do begin to know more on Forex trading you have three different ways to go about it. You can either join an online, or even one that isn't, Forex school, become an apprentice for a Forex trader or broker or go it alone and do it yourself. The last way to master Forex trading is probably not the best way, and indeed carries a lot of risk, especially for someone who is just beginning. This is because the Forex market is very volatile, which makes it even harder to learn Forex trading.

For someone just starting out, the first two ways mentioned are much safer. When you learn foreign exchange trading in these ways, you have the bonus of experienced instructors to benefit from. Especially with an apprenticeship the learning process can be had in real time. Learning like this can actually be the best way to learn Forex trading. This is because when you are able to actually see decisions and processes being made you can benefit more thoroughly then through the filtered and neat classroom experience.
For someone who has just begun Forex trading there are three main things they need to know. The first main idea or concept to be learned is what is called the process.

The process of the Forex market has to do with the fact that it is the largest market on the entire globe and is operated twenty-four hours a day. The process also includes the fact that all of the business is carried out in real time with no boundaries. Also what needs to be known about the process involves the fact that the trader has the option in either dealing in his or her national currency or in a foreign one. Remember when you begin to learn Forex trading and this aspect of it that there are no barriers, no entry points and you really need to make sure that you thoroughly have an understanding of it before jumping in.

Another aspect when you begin Forex trading is to learn about mapping or charting. Someone who is just starting out should begin to learn how to use the charting software available in order to properly map the market and how it moves. This information gathered by the software will better enable a trader with what they need to know to make better decisions and therefore earn better profits. A trader in combination with instinct to make better overall decisions as well as calculating the best times to buy or sell can use the software involved with charting.

The last thing that needs to be a part of the process when you start to learn Forex trading is called trading psychology. This aspect includes a trader learning to deal with his or her losses and if they happen to have a lot of them in a short period of time they should stop for a while. Something else that is part of trading psychology is that the trader needs to make sure they are not letting themselves get carried away in making too many trades just because of good profits.

In the end you must decide which way is the best for you personally to learn foreign exchange trading. Although most people would say that the best way is to learn while trading. A hand on approach when it comes time for you to learn Forex trading seems to be the one with the best benefits.

Forex Trading Education - Whats the ROI?

2008-03-05T15:43:00.003-08:00

By: Michael Williams
The traders that tend to do better in the Forex market are those who have undertaken some kind of Forex trading education. Jumping in blindly can be a big mistake in the high-risk world of the Forex market. This is because of decisions in the Forex market is made in real time and is usually made in seconds and Forex education can benefit the beginner immensely. This means that those traders who decide on Forex trading training are better equipped to handle the stress and demands than those who do not and rely solely on instinct and experience.

Those who are just beginning will benefit the most from foreign exchange education. This is because from FX education they will be able to learn market mechanics, how different software tools work, how to read a Forex chart, how a trade is closed and when the best time to make a bid is. The most important of these is learning about charting. Taking a class in forex trade is always the best route for a beginner in the Forex market.

Something else that should be learned and can be gleaned from a Forex trading education is why the Forex market is so volatile. Charting and learning about it can definitely help track the reasons that shifts happen in the market and can greatly increase the success of the trader who knows how to read them. Of course there are no guarantees but it can definitely decrease some of the risk.

Forex trading training should always first and foremost cover the basics. These basics include concepts such as margins, types of orders, bids, rollovers and leveraging. Of course Forex trading training should also cover technical and fundamental analysis. These are two types of market analysis that analyze key aspects from different perspectives. This area includes charting and how to read and make them correctly in order to conduct business with any measure of success. One last thing it should cover is trading psychology, which includes learning how to handle the psychological pressure that may occur in such a fast paced environment such as the Forex market. This can include building skills and habits such as discipline, patience, and commitment and risk management.

Forex trading education can also have an aspect to it that teaches the history of the market. Something else that is exceptionally beneficial in a Forex education is one that teaches the common mistakes that can be made and ways to avoid making them. These aspects should be a part of either an online class or one that is real life either way.

In the end having the advantage of a Forex trading education can make a difference. Whether or not you choose to benefit from it is up to you. But having a Forex education can help a beginner immensely and can also benefit those who are not and can make the difference in whether or not you turn a profit. This alone is enough to highly recommend a Forex trading training.

Forex Trading Strategy - Finding the Right One For You

2008-03-05T15:43:00.001-08:00

By: Michael Williams
The first thing someone needs when beginning in the Forex market is a well thought out Forex trading strategy. This is because those who do not have a good foreign exchange trading strategy usually end up failing miserably. Of course those who are also in it just for a quick buck, will invariably end up losing in the long run. Those without a clear trading strategy will either lose constantly or just break even.
A lot of times the Forex trading strategy will be different depending on different traders. This is because different kinds of traders needs require different kinds of forex trade strategies. A Forex trading strategy for a day trader will reflect their need to be concerned with day-to-day fluctuations than long-term data. This means that someone who is deciding to become a Forex trader needs to first decide what kind of Forex trader he or she are going to be. Once they decide which kind of trader they are going to be they will better be able to plan their trading strategy.

A very important aspect of every strategy is to be able to lessen any losses or eliminate them altogether. This part of the Forex trading strategy is one that needs to be followed strictly or it can make things a complete mess. Someone who is a day trader will most likely make smaller stops. On the other hand a swing trader will have stops that are less limited. These are both different kinds of foreign exchange trading strategies, but can both lessen losses immensely for either kind of trader.

Another part of a good Forex trading strategy is to plan the size of transactions. This allows many different trades to be made at any time instead of just one huge transaction. This will lessen any loss, by dividing the trades, so not all are affected. This also brings in more discipline to the equation.

Following the trading strategy that you plan out requires discipline and following it to the letter, because the Forex market does not always lend itself to the best opportunities in trading. In the Forex market it is mostly about timing, if not all about timing. Understanding this and incorporating it into your strategy is how you will benefit the most from it.

A few other things that need to be incorporated into a good strategy is first of all acquiring accurate knowledge about the way it works, different things that can affect trade and what various software and services that are available to meet their needs for charting and such. One last thing that needs to be included of course is what other Forex traders are doing, allowing the strategy to be planned accordingly.

As you can see a lot needs to be looked at when entering the Forex market. Thoroughly and completely researching all these different aspects is an important way of preparing yourself to do so. Coming up with a Forex trading strategy that benefits the trader in the best way possible is definitely the way to go.

Forex Trading - Too Much of a Good Thing?

2008-03-05T15:42:00.000-08:00

By: Michael Williams
When entering the world of Forex trading, you are beginning to enter a market that is very unpredictable and sometimes volatile. In foreign exchange trading, all trade is conducted in real time and this is what can cause a lot of the risk. This can make trading somewhat of a challenge, even for those who have the benefit of experience on their side. In Forex trading there are a lot of factors and patterns that need to be looked at and analyzed before one makes a trade. This can be somewhat overwhelming and daunting to a beginner in Forex trading, but if time is taken to learn, it is well worth it.

In the early days of Forex trading only large banks of financial institutions participated in the Forex market. Now anyone can participate in FX trading. This has resulted in quite a bit of liquidity to the Forex market. The number of individuals, speculators, traders and brokers has greatly increased over the years.

There are no boundaries in foreign exchange trading and it is not affected by time zones. From Sydney, Australia to the United States, it basically just stays open all the time, never sleeping. Whether it is an individual or an organization there is always someone who can be found doing business with Forex at any time of day or night.

Part of Forex trading and its success is that there is no central location or headquarters. Every single market around the world is seamlessly connected from around the globe. London, New York and Tokyo are major locations when it comes to Forex and when all three are open at once, chaos ensues. Trades and the volume of currency and different kinds being used rises sharply at this time. Other than this, the Forex market is open and operating with many lulls and busy times all the time.

Those who conduct business using Forex, base their trades on certain parameters. A lot of the traders that have been involved in Forex trading will just follow instinct and past experience that they have picked up over the years. Those who are less of risk takers or not as experienced tend to use software that is available to track patterns and chart them, then base their decisions upon this information. These charts are great for figuring out the best times to buy or sell as well. Some of the traders will even use online brokerage firms; brokers or Forex research firms to help them find important information that will help guide them in trading.

In the end the world of Forex can indeed be overwhelming and confusing to newcomers. By understanding and learning about it the best way you can, it can become less so. When deciding to become part of Forex trading the best thing to do is to make sure you always look before you jump.

FOREX Software: A Critical Element for Success

2008-03-05T15:41:00.000-08:00

By: Steve Welker
In most cases when you sign up with a FOREX broker they will provide you with software to execute transactions as well as get market information. Since online trading has been around for quite some time now, the brokers have a pretty solid understanding of what the traders need from trading software. There are two primary classifications of software provided by the brokers; web based and client based.

One of the mandatory services needed by all FOREX software is real time market updates. Since the FOREX market is so fast paced and volatile traders must have data that is accurate to a few seconds to make decisions on when to enter and exit their positions. All brokers make claims that their software will remain updated with a minimum of delay but the reality is that there are a variety of factors that can delay the software displaying updated information.

The users internet connection speed as well as their geographical distance from the broker are probably the two primary issues that can affect the update time. If you wish to be successful trading FOREX it is highly recommended that you have a high speed internet connection and a fairly up to date computer. You might also consider selecting a broker relatively close to you; if you are trading from the US you might want to avoid a broker based out of Australia. During times of extreme market volatility this distance could cause a delay significant enough to cause issues with your trades.

Web Based or Client Based?

Web Based software is not actually installed on your computer it runs on the brokers web site. You only need to have a browser compatible with the software to access and use this software. Client based software is loaded directly on your computer; in most cases you are able to download the software from the brokers site and then install it. Web based software is rapidly growing in popularity as more and more brokers offer it. The primary advantages to web based software are convenience and security. With web based software you can log in to your account and get market updates and place trades from any computer with an internet connection. If you use client based software you are only able to make trades from the computer that you have the software installed on.

As well as being more convenient web based software also offers a higher level of security. During the actual transmission of data both web based and client based software encrypt the transmitted data with a high level encryption. On client software though there is the risk of data being stolen from the client pc by hackers or Trojans.

The most basic software packages will provide you with real time quotes and information as well as allowing you to enter and execute trades. Up to date quotes are provided for most currency pairs and the software will allow you to open or close a position at market prices. The software should also allow you to set up trades with limit orders and stop loss orders. More advanced packages will also offer charting capability that can show you many different viewpoints.

Any good broker will provide you with basic software free of charge just for using them as your broker. Many of your better brokers will offer an advanced version of their software for a fee. The advanced version will give you extra capabilities such as executing trades right from the chart and enhanced analytical ability.

Forex - Start To Learn About Online Stock Trading

2008-03-05T15:40:00.002-08:00

By: David Neehly
Traditionally, stock market games were only for people with money since only they could afford the fees of brokers who managed their stocks portfolio. However, with the advent of the Internet and online trading sites like Forex it is easier for the middle class individuals inclined towards business to invest in the stock market and reap some good benefits. Forex has made it possible for anyone to begin investing in stock market and earn money as a stock or currency trader.

However, it is the self-directed investors who can make the most of websites like Forex. It is not for the chicken-hearted. If you wish to invest you should be able to take some amount of risk. Forex is predominantly a currency trader, unlike other trading sites that trade in stocks. You get access to the foreign exchange market through an account that allows you to invest in one form of currency or another, and gain profits from the way currency values fluctuate.

Forex acts as a platform from where you can access the foreign exchange and make trades in the foreign currency market. It also helps you make wiser and better informed-decision through its various trade information and decision making tools. However, the point to be remembered here is that the website does not take any responsibility or liability for any losses you incur in the open market trading. Like most of the online trading website, Forex charges a commission or a flat rate for each transaction.

One of the tools available to users of Forex is the learning center. It is full of information about the foreign currency market. This section is written for people who are not familiar with the currency trade, and it is very helpful, as it explains how the market works and how to read the market.

Before you decide what to do you must learn how to watch the market, read quote board, understand the bid and ask and figure out the highs and lows of the market. These special tutorials add on to the knowledge you gain at the learning center and help you understand the working of Forex. This Forex trading section is a very good tool to understand the trends of trading in the foreign currency market.

Forex features a unique tool to get to know the foreign currency market and practice trading in it. The Forex website offers free practice account tool. Using this tool you can open a mock account stocked with practice money. You can read the quotes and the charts, and buy and sell. Then finally analyze your performance of how much money you made or lost. It is a good warm up before you actually foray into the market with actual money. It surely reduces the risk you would be taking.

Finally, it is very nice to have all of the charts and investing tools available on the Forex Web site. Once a member with an active account (which you can open with as little as $250), you have access to the advanced charts and tools offered by the site. Charts include real-time charting and research. Your Forex training will help you read the charts and make use of the research.

You can get direct access to the currency exchange market through Forex and also get some good tutorials on how to deal in the market and earn good money for a vacation or for retirement.

Tips For Profitable FOREX Trading

2008-03-05T15:40:00.001-08:00

By: Susan Jan
FOREX trading appeals to many traders for several reasons other than its potential for profitable trading:

1. FOREX trading offers a 24-hour market so that any trader can take advantage of profitable market conditions at any time.

2. The FOREX market is the most liquid market in the world so that traders can enter or exit the market whenever they want with minimal execution barriers or risk and no daily trading limit.

3. The FOREX market is always a good market. FOREX trading involves selling or buying one currency against another. In essence, a bull market or a bear market for a currency is defined in terms of the outlook for value against other currencies. If the outlook is positive, you get a bull market where a trader profits by buying the currency against other currencies.

4. The FOREX market is so large and has so many participants that no single trader, even a central bank, can control the market price for an extended period of time.

To be successful in FOREX trading you need experience, capital and a solid trading system. Keeping things simple can also help you better focus on your trading. Here are some tips that can help you during FOREX trading:

1. The first and last ticks are always the most expensive. Get in late and out early.

2. Never add money when you are losing.

3. When everyone else is in, then it is time for you to get out.

4. Always determine a stop and a profit objective before you enter a trade. Place stops that are based on market information, and not your account balance.

5. It is always easier to enter a losing trade.

6. News is only important when the market doesn't react in the direction of the news.

7. In a bull market, you never want to sell a dull market, in a bear market, you should certainly never buy a dull market.

8. There are times, due to a lack of liquidity, or excessive volatility, when you should not trade at all.

9. It helps to read yesterday's paper each day to learn from what the market did.

10. There are at least three types of markets such as up trending, range bound, and down trading, and you should have a different trading strategy for each.

11. Up market and down market patterns are always there, with one always been more dominant. Select trades that move along with the trend.

Forex Markets - How Do These Work?

2008-03-05T15:39:00.000-08:00

By: Michael Williams
There is so much talk about NASDAQ and NYSE, but how many people are aware of another similar market, called Forex Markets? Forex Market has ten times the average daily turnover of many similar global equity markets. Also, foreign exchange markets have thirty the times of the daily volume of NASDAQ and NYSE. Markets are also the most liquid market in the world with one of the highest turnovers ever recorded, estimated at $2 trillion in one day.

Foreign exchange markets, also known as FX or the foreign exchange is actually a decentralized market, commonly known as an Interbank or interdealer market. One of the main duties of FX Markets is to trade. Foreign banks, currency dealers and different Forex investors use the facility as a type of trading post. They use it to exchange foreign currencies, from all over the world. Of course for this to work in the best way, it has no centralized location. This is because all business is conducted online.
For a long time the main people that used Forex Markets were the banks. Recently though, FX Markets acquired the ability to leverage large positions with not very much available capital. This means that it is now a more liquid market and more easily accessible to smaller companies that would like to get involved as well.

From New Zealand, to Australia, to Asia, the Middle East, Europe and America, Forex Markets is open twenty-four hours a day. All the major markets, including London, New York, and Tokyo are part of it. Of course the United Kingdom and the United States account for over fifty percent of the turnover. When the time of day comes for all the major markets to overlap, trading can get pretty heavy.

Besides the major markets there are also five main currencies that are a part of Foreign exchange Markets. These currencies include the United States Dollar, the Euro, the Yen, the Franc and the British Pound. Each of these is traded in what are called pairs. In this particular market they are also called crosses, in what is known in the Forex Markets as the 'spot' market. A lot of this market is determined by supply and demand of certain major currencies and how they affect the current world market and its situations.

For those who have the money and the know how to survive on the world market, this market could be their best option. Being able to really read the current market and the world situation is definitely a plus when it comes to this market. If you have the need or the want to trade on the world market and are comfortable with what you know about it, Forex Markets are definitely the way to go.

Forex Exchange Rate - How Does It Get Calculated?

2008-03-05T15:35:00.003-08:00

By: Michael Williams
In the Forex market the value of two separate currencies and how they relate to one another is what is known as the Forex exchange rate. Usually the Forex rate is how much of one currency is needed to buy a unit of another. Knowing the basics regarding the Forex exchange can help you get started in understanding it even better.

Just to give you an example of how the Foreign exchange rate can work and to help you better understands it we can compare the United States dollar with the Japanese yen. Let's say that on a certain day the US dollar is able to buy one hundred and ten Japanese yens, this would indicate that the exchange rate for that day is 1:110 or a one to one hundred and ten ratio. This ratio in the exchange rate is also known as pairing. When you take it vice versa you can use it to indicate how many US dollars a single unit of Japanese yen can buy. Another term that is used in the Foreign exchange rate is 'cross rates'. This term however is only used when it does not involve US dollars; it is only used when relating two foreign currencies.

A few other terms used in the Forex exchange are pips or basis points, which are actually two terms used for the same thing. These terms are used to indicate Forex rates that are calculated up to four decimal points and whether or not these are negative or positive movements. An example of this would be if you were to exchange euros with yen at a value of 135.1030, but then the euro rate goes up to 135.1035, it is called a five-pip improvement.

In using the Forex exchange rate you are required to use two currencies and this means they are quoted as 'two tier' rates. Also in the Forex market its price basis is called a bid/ask. Using the previous ratio between the yen and the US dollar in the Forex market, if this trade is made it is called a ten pip 'spread' and is secured. This term means it indicates the difference between the buying and actual selling price.
A lot of things can change the spread and affect it. These things include market conditions and traders' instincts about the strength of certain currencies, which can fluctuate greatly from day to day. One thing you should remember however when it comes to the Forex is that only Forex traders who are licensed can access official quoted rates. This means therefore that smaller investors may not receive their currency at a very good rate, because they usually receive them from commercial banks.

One last thing concerning the Forex exchange rate is that it is independently determined. This is why it thrives so well, because solely buyers and sellers and their supply and demand of certain currencies determine it. In the end individual governments and banks cannot decide the values.

With the benefits and knowledge of how the Forex exchange works you can decide if entering the Forex market is the right move for you. But with all the advantages of Forex, why wouldn't you want to?

Online Currency Trading and the FOREX Market

2008-03-05T15:35:00.001-08:00

By:
Online currency trading takes on more than just a speculators or investors role in today's complex markets. If you are running a multi-company trading business, or even if you are 'just' a property investor, moving currencies around different exchanges at the right time can add quite a considerable amount to your bottom line.

As most property transactions are in many hundreds of thousands of dollars, a few points alteration on the exchange rate of the day could actually make or break the profitably of a deal.

However, many people regularly invest on the Foreign Exchange markets as a pure investment. Well, I say many, but actually FOREX is the largest market in the World, but it doesn't have an actual home.

There are a number of workshops available that are ideal if you're new to the Forex market and have some experience trading stocks or other products. Whether you're looking to diversify your portfolio, learn a new skill, or supplement your income, you'll find out if the Forex market is right for you. Have a look at forex.com for more information.

Online currency trading is all done through the Foreign Exchange or FOREX. It is the largest market in the world with about $1.9 trillion going into different hands everyday. Unlike all other financial markets on the planet, FOREX doesn't actually have an actual physical location.

That is because it is all done on the Internet and through banks with individuals trading their local currency for another. Or, if they have come back from a different country, then they might be changing from that currency into their home currency. Because FOREX is all based on the Internet, you can use online currency trading services to work within the market 24 hours a day.

But to be able to use the FOREX service, you have to sign yourself up to one of the many companies that offer these trading accounts to customers. You can open an account with any one of the hundreds of companies available; and then immediately begin trading currencies.

You will not want to use this service if you only exchange currency once a year, as you can do that at your local bank. Although this choice of account is available, large corporations mostly use online currency trading and they are the ones that will use this service the most.

However, in many cases, there are agencies available that you can sign up with ,that for a low percentage return will actually take care of all this for you.

For the really serious investor, there is a lot of money to be made, and often a lot of money held on risk. There is so much information that is now readily available, that with laptops and a wireless connection, anybody can trade basically anywhere in the world.

Also, on these online currency trading websites, you will get up to minute exchange rates from all over the world, so you will know the exact amount that you will get from your money. This also enables you to know the best time to use the online currency trading services. When the rates are just right for you, then that is when you can exchange your money.

However, it is important to note that some currency trading companies will need two days advance notice before you withdraw your money, so it is always wise to plan ahead if your goal is to make money with FOREX trading then use that money to pay bills or to pay for living expenses.

Have a look, you may well find that this is an interesting, and potentially, a very profitable new area of investing for you to look at.

Forex currency trading basics: what are you a bull or a bear

2008-03-05T15:34:00.001-08:00

By: terryt
Forex currency trading is booming around the world and is quickly becoming the preferred choice of many online and offline investors, but what is Forex and how can you get involved in this attractive new investment arena.

First of all lets explain what Forex actual stands for and what it involves.

Forex stands for Foreign Exchange and is the trading of one currency value at a given time in relation to another currency value, so you are trading in the market of money or cash.

The Forex market is also known as the bull market or spot market.

Similar to trading stocks where you buy a particular stock at a given price and then anticipate the value of that stock increasing in value so you can realise a profit on your investment, traders in the Forex buy and sell units of currency.

A unit of currency that you intend to trade in is called a “lot” and is equivalent to $10,000 in a mini traders account and $100,000 in a standard or 100k account.

When trading currencies you are required to open an account with the Forex broker and make an initial deposit into what is called a margin account, this is because you do not actually pay instantly for the full cash value of your currency but do deals by use a leverage of multiplication on the money you invest.

Movement of a currency value is measured in units called pips, for instance if the value of the British Pound against the Dollar was 1.8720 and it moved in the Forex market to a value of 1.8721 this would be a one pip movement.

A mini traders account usually works on a leverage of 10 to 1, whereas a standard traders account works on a leverage of 100 to 1, meaning that on a mini traders account for each pip move on your currency lot either upwards or downwards you would be either making a $1 profit or losing a $1 off your account balance.

In a standard account this same one pip movement would be either making you a $10 profit or a $10 loss.

The mini traders account is ideally suited for new or novice traders who want to try the Forex market and see if its investment potential is suitable for them.

An interesting aspect of the Forex market is that not only can you buy a lot of currency expecting it to rise in value but you can also sell a lot of currency first with the belief that it may fall in value, and as such you can then buy the equivalent to close the trade and realise a profit.

It should be realised that dealing in the Forex market is an investment strategy and markets can move violently in either direction, this gives the opportunity to make money but conversely you should be aware that you could lose money without proper Forex trading education and preparing a strict and sensible strategy.

How To Choose a Forex Trading System That Works and Suits You

2008-03-05T15:33:00.002-08:00

By: Bret Freak
There are so many different trading systems you could use to trade the forex market, some better suited to certain people than others. For example some people may find it easier to comprehend and take into account fundamental factors as opposed to looking at a screen covered in technical indicators, and vice-versa.

The first logical step in determining what type of trading system would best suit you is actually being aware and understand the widely known methods of analysis used in trading the currency market. Once you are aware of the tools that are available, you can generally tell what type of analysis suits you. For example some of the main technical analysis methods which are popular include:

• Pivot points

• Chart patterns

• Fibonacci retracements

• Candlestick patterns

And some fundamental factors which are widely used include analyzing:

• Interest rates

• Trade balances

• Unemployment rates

• Gross domestic product (GDP)

You may now actually be able to develop your own system by combining certain methods of analysis together, giving you a method which you are comfortable with. On the other hand you may decide that you would like to trade someone else’s system, either way, that brings us to the next step which is determining the profitability of a trading system.

Determining Profitability

Most people would think that back testing is the best way to determine a systems profitability. However back testing doesn’t always give you a true idea of how profitable a system is. The reason for this is because when you’re back testing your system on historical charts, you are only seeing the obvious setups which have occurred, and not always seeing the ones that are less obvious. These less obvious ones sometimes can produce losses, which is why back testing isn’t always the best method to implement.

A better method of determining profitability is by trading your system in real-time with a demo account. This would give you a true understanding of what your system is capable of. This would also allow you to familiarize yourself with your trading platform at the same time. When determining profitability you must look at it in terms of expectancy and opportunity.

Expectancy & Opportunity

These two factors together will be able to tell you what you could expect to make over a period of time. Expectancy is calculated with the following formula:
(Probability of winning × average win) – (Probability of losing × average loss)

This will give you a figure which is the average amount you can expect to make per trade. This shouldn’t be a negative amount, if it is you should look at some other method of trading since you cannot make money on a system that produces a negative expectancy. Obviously the higher this figure is the better. Now to the opportunity factor.

The opportunity factor is how often you are able to trade using your system. By multiplying your expectancy figure with your opportunity factor it will tell you how much you could expect to make over a period of time. The more opportunity you have to trade, the more money you should expect to make. This now brings us to the last component of a trading system, money management.

Money Management

Without proper money management you will end up as a statistic. In other words one of those 90%+ of traders who loose their money. Money management tells you how much of your account balance to risk per trade. The whole point of money management is to ensure your survival over the long term, and to preserve your capital.

The most common form of money management is the percent risk model which tells you not to risk more than x percent of your account balance on any one trade. A range between 1-3% is generally an accepted amount which has been a reliable percentage to use in order to make money in the long term.

Conclusion
By taking into consideration the above factors you will be able to determine if a trading system best suits you, and with some simple mathematical calculations you will be able to determine its profitability.

Hedge trading on the forex currency market

2008-03-05T15:33:00.001-08:00

By: terryt
Trading on the forex currency market can be a volatile yet exciting form of investment and certainly has the potential of bringing vast rewards if done so properly.

However it should be accepted that forex currency trading could also be a very risky investment as the market can swing both in an upward and downward movement in a split second depending on the market conditions.
Some people, and indeed institutions, try to control these volatile market swings by hedge trading their investments.

For instance it is possible with some forex trading systems to hold both a long and short position on a currency pair, which means that you have both bought a lot of currency with a view to profiting from the rise and the fall of a currency pair.

For example a currency pair could be the Great British Pound as related in value to the US Dollar or GBP/USD, and the rise in this market would be referred to as a long position as opposed to a fall in this currency market, which would be referred to as a short position.

In practice what this would mean is that either way the market moves you are gaining on one position while you lose the equivalent amount on the other position.

The net result of this on first sight would suggest that you cant particularly loss money but also you cant gain any money so how can this be of any particular use in an effort to successfully trade on the forex.

Well of course no money can be made until you close one of the positions, which would be the one that is losing money while leaving the other currency position open that is gaining profit to move further and gain you an overall profit.

You could for example close the losing position at a 20 pips loss and then close the profiting position at a 40 pips gain, giving you an overall profit of 20 pips.

Pips are the single value point movement of the currency and where the GBP/USD moves from 1.8800 to 1.8840 would be a 40 pips difference.

It should be remembered of course that a currency pair could well move in one direction and exceed your 20 pips level to close the position but then reverse in direction and never reach your targeted gain level of 40 pips so even hedge trading is not a guarantee of certain success.

The 20 pips loss level and 40 pips gain level are only used here as an example and if you use this method of trading you would be well advised to set your own levels that you feel are right and acceptable to your own currency trading experience and acceptable risk strategy.

All that can be said is that it does offer an alternative method of currency trading but should still be ventured into with predetermined loss limits and careful study of the currency market.

With most online forex currency trading sites a demo account can be opened first to help you experience what forex currency trading is all about and this is an ideal way to first get involved without any loss of real money.

How to choose a good quality forex broker

2008-03-05T15:31:00.000-08:00

By: Bret Freak
How to choose a good quality forex broker

After you are confident in the way you will go about trading the forex market, along with the money management rules you will implement, it might be time to find a good forex broker.

There are many brokers out there to choose from so, it is worth while doing some initial research before choosing a forex broker. Some things to look out for when choosing a forex broker include:

Low Spreads

The spread is the main way forex brokers generate their profits. The spread is the difference between the price at which you can buy a currency, and the price at which it can be sold at any particular point in time. When looking for a broker, keep an eye out on their spread costs. The less the spread, the more money you will save and the faster you will be making a profit in a trade.

Quality registered institution

In the United States, forex brokers should be registered as a Futures Commission Merchant (FCM) with the Commodity Futures Trading Commission (CFTC) http://www.cftc.gov. They should also be a member of the National Futures Association. You can verify the brokers CFTC registration and NFA membership status at http://www.nfa.futures.org/basicnet/. If the broker is not backed up by a reliable institution, don’t bother with them it’s not worth the risk.

A wide range of leverage options

Leverage is needed to trade currencies due to the fact that price movements are only fractions of a cent. In general, leverage is expressed as a ratio between the amount of capital you provide to the amount a forex broker will lend you. For example, take the example of the ratio of 200:1. What this means is that the forex broker will lend you 200 times the amount of money you provide. Just keep in mind the more leverage you use, the more risk there is in getting a margin call, however you also have the potential for larger profits and vice-versa. In general, when starting out with a small amount of capital, make sure that the forex broker you are using offers a wide range of leverage options. This will give you more control over the risk exposure you should be prepared to take.

A wide range of tools

The majority of the larger forex brokers offer a range of trading tools to their clients. Most brokers can provide you with real-time currency prices along with other various tools. Ensure that your forex broker provides all the tools you need to trade successfully. Other tools could include:

•Real-time currency price charting
•Technical analysis tools
•Fundamental analysis
commentarEconomic calendars

The good forex brokers offer two or more types of accounts. For example the smallest account size is known as a mini account. Mini accounts require you to provide at least say $500, and with that you are offered a high amount of leverage. Leverage is required to profit from such small amounts of trading capital. Standard accounts also have a minimum capital requirement, usually somewhere between $1,000 and $2,000. In the end it’s important to choose a broker that has the right leverage and services that suit your needs to go with the amount of capital you have dedicated to trading the currency market.

Customer Support
Forex is a 24-hour market; therefore 24-hour support is essential. Can you contact the firm by phone, email, chat, etc? Do the customer support representatives seem to know what their on about? The quality of customer support can vary considerably from broker to broker, so be sure to check it out before opening an account.
One thing you could do is contact a number of forex brokers to get a feel of how quickly they can respond to enquiries. If they don’t respond quickly, and with a reasonable answer don’t give them your business.
Miscellaneous

It’s a good idea to talk to other forex traders in an effort to find out who are the better forex brokers out there. As in any industry or business, there are some dodgy ones. Forex brokers are no exception. There are many forums on the internet these days that are dedicated to discussing all areas of forex trading, including the discussion of forex brokers. These are great resources you can use allowing you to find some valuable information that could just save you being ripped off by some unscrupulous forex broker.

Conclusion

By taking the time and effort to do some initial research, you will be able to choose a reliable forex broker. This might just save you a lot of stress and troubles you may encounter if you were to choose any old forex broker.

Killer Forex Trading Strategy for Beginners

2008-03-05T15:26:00.000-08:00

By: Chris Robertson
If you've just begun trading Forex, you probably want all the help you can get. Though Forex trading can be very lucrative, you'll want a Forex winning system that will work for you. There are several Forex killer systems available just as there are in marketing, sales, and other forms of business. You must find the Forex strategy that works for you, and develop good trading habits for long-term success. Here's a brief Forex winning guide for getting started.

Develop a Forex Trading System that You Can Stick With

Not only do you need a Forex strategy - you also need a system. You can have the best strategy in the world, but if you don't do it systematically, you could lose. Create a schedule of when you will do your Forex trading. Then, create a budget to manage your money coming in and going out. Just like operating any business, you'll have good and bad times. Stay with your Forex trading strategy through up-times and slumps for the best results.

Develop a Forex Trading Plan in Advance

Before the Forex market opens, you should already have a plan as to how you will trade. Don't get caught up in the moment. Carefully plan your investment as if you were making a big decision such as buying a home or a car. Even if the Forex trading amount seems small, treat it as if it were a million dollars. It could turn into that amount one day.

Expect Small Losses

If you plan to do Forex trading for the long haul, expect and accept small losses. They will occur no matter how well you know the market. A Forex winning system is one where you are prepared to accept the small losses in hopes of acquiring something greater in the future.

Be Patient

Remember, steady and slow is the key to any long-term Forex success. Don't sit staring at the quotes all day long! Take a break, enjoy life, and don't see a loss as the end of the world.

Avoid Forex Trading Strategies You Don't Understand

When developing a Forex winning strategy, avoid using methods you don't fully understand. Use helpful Forex guides and tutorials, but beware of Forex scams. There are many out there today - especially email scams. Be leery of companies who want to do your Forex trading for you. Develop a plan with the help of Forex experts, but please do your own trading or choose a reputable broker.

Develop an Exit Plan

Know when it's time to take your money and run! Don't hope for the best when all evidence points toward the worse. It's better to exit your trading with some of your money than to lose it all in a risky trade. Before you begin trading, set limits on how much you will invest - and stick with your limits.

Use this quick Forex guide to develop a strategy that works well for you. Forex trading doesn't have to be stressful. You can realize Forex trading success sooner than you think!

Using Fibonacci In Your Forex Trading System

2008-03-05T01:37:00.003-08:00

By: Bret Freak
Fibonacci retracement analysis is a very widely known and used technical analysis tool, used by traders to mainly calculate possible targets for entry and exit points, and in determining potential levels of support and resistance. The thought behind Fibonacci retracements suggests that the price of whatever currency or market you’re observing will often retrace a certain percentage of a previous move, and find support or resistance at the main Fibonacci levels before continuing in its original direction.

What makes this particular indicator superior to most, is that it’s known as a ‘leading’ indicator, not lagging. In other words it has predictive powers, unlike other technical indicators that are informative of change in trend, after it has already occurred, fibonacci retracement levels show you possible turning points before they occur.

These levels are formed by drawing a trend line between two extreme levels (high & low) of a main market move, then dividing the vertical distance by the main Fibonacci ratios of 23.6%, 38.2%, 50%, 61.8%, 78.6% and 100%.

The majority of good charting packages have the ability to do this automatically for you. For example in Metatrader, all you have to do is this: First you choose a main market move, select the Fibonacci button (the one that has a couple of horizontal lines on it, along with the letter “F”), hold your mouse button down, and drag the line from the bottom of the main move, to the most recent top (for uptrends). In market moves that are moving downwards you would apply the Fibonacci tool starting at the peak of the move. Metatrader then automatically draws in horizontal lines at the main Fibonacci retracement levels.

You may have heard of a famous trader by the name of William. D. Gann who implemented fibonacci levels in his trading, he also mentions them throughout his books and courses. Of all the levels he talked about, he put the greatest significance on the 50% retracement level. He even went as far as to saying: “you can make a fortune trading this one level alone”. (How to Make Profits in Commodities). Hearing this from such a widely known and very successful trader shouldn’t be taken lightheartedly. Although this book was about trading commodities, many traders use the same principals today, in markets around the world, including the forex market.

How can Fibonacci retracement levels be used?

So the question now is, can you trade forex based on Fibonacci levels alone? The fact is that it is very hard to determine at which Fibonacci retracement level prices will retrace. That’s why forex trading systems that use Fibonacci also incorporate the use of other indicators, or price action. For example, if you were to observe that two other indicators are indicating a reversal, while price is near the 61.8% retracement level, this may give you extra confidence that a change in trend is about to occur.

Or alternatively, you could observe a candlestick reversal pattern occurring at a key fibonacci retracement level. For example if a shooting star was formed at a 61.8% retracement level, this would indicate that prices have reached a natural resistance level, and price action is telling you it’s time for a reversal.

Conclusion

Just like pivot points, Fibonacci retracement levels can act as a very helpful guide in determining possible reversal points. But, keep in mind that this is just a tool, and shouldn’t be used alone. By combining the power of fibonacci retracement levels, along with your other technical tools, you should be able to develop a sound forex trading system and add confidence to execute a trade.

Forex Makes Online Currency Trading Easier Than Ever!

2008-03-05T01:37:00.001-08:00

By: Belinda Kadar
Gone are the days when stock market was limited to the rich who paid brokers to manage their portfolios. Thanks to online investing, now there is a multitude of business savvy middle class individuals who indulge in the trading game. Web sites like Forex offer opportunities to nearly anyone to start investing in the stock market and earn money as a stock or currency trader.

Forex is not a place for the weak hearted ones. Only those who wish to take a certain degree of risk in order to earn big bucks must trade at Forex. It is a website used by the investors, mainly currency traders to play the game at the foreign exchange. You get access to the Foreign Exchange through an account from where you can invest in one form of currency or another whichever you feel is lucrative. In the process you make money off the currency values fluctuations.

While the main point of Forex is to allow access to the foreign currency market and allow you to make trades, the Web site does provide many tools to help you make better-informed decisions. That said, it is important to realize that trading Web sites will not take responsibility for losses, and most of them charge commission or charge a flat rate for each transaction.

Forex has a learning center for users. It provides exhaustive information about the foreign currency market. It is particularly useful for people who are not familiar with the currency trade. It helps them by explaining how the market works and how to read the market.

Another more advanced tool is the Forex trading section. This builds on the knowledge gained from the learning center and helps you learn specifically how to use Forex. In addition, Forex offers tools such as tutorials on how to read the quote board, how to understand bid and ask, and the method to figure out the high and low. The training is comprehensive enough to help you watch and understand the market trends and decide what to do.

Forex features a unique tool to get to know the foreign currency market and practice trading in it. The Forex website offers free practice account tool. Using this tool you can open a mock account stocked with practice money. You can read the quotes and the charts, and buy and sell. Then finally analyze your performance of how much money you made or lost. It is a good warm up before you actually foray into the market with actual money. It surely reduces the risk you would be taking.

The Forex website makes available all the charts and investing tools to the investor along with comprehensive real-time charting and research to get on with the investment process. The training tools at the Forex help you better understand and use the charts and the research. You can set up an account with Forex with amount as little as $250 in your account and once you become member of the website you get access to more advanced charts and tools to foray in the market.

If you are looking to learn how to trade better and earn money for a vacation, or even for retirement, you can do so with the help of Forex and its direct access to the currency exchange.

Quality Forex training is the key to success.

2008-03-05T01:36:00.003-08:00

By: Andrew Norman
Quality Forex training is the key to success for any budding Forex trader. But sometimes I think Forex training is too regulated then at other times I think that there isn't enough oversight. The reason that Forex training is so important and vital is because the Forex market is extremely competitive, volatile and fragile. Training is an essential step to become an experienced trader. Forex training is in demand as many people look for ways to profit from the currency trading marketplace.
Some things to consider when looking for free Forex training. Many websites offer a free demo account and free Forex trading System training. You can get free, live Forex training over the web from professional traders. Go to one of these websites and try a free practice account and learn how currency trading works.
Choosing which of the many Forex courses you want to take is not an easy task. There are literally hundreds of courses and materials out there for proper Forex training. Some training courses are specifically designed for home study use. But is it necessary for new Forex traders to study more about Forex trading courses or just join a Forex training program. The good news is that lots of courses will show you winning entry techniques and you should take the time to find and digest as many training courses as you can before you begin. Due to this fact, more and more people are either enrolling into FOREX courses or purchasing different kind of books regarding FOREX trading. Online education courses are a great way to learn and there are many to chose from on the internet today.
Without the proper preparation and expertise, a trader's chances of succeeding are reduced. With the correct training and mentoring a new trader can then intelligently develop a strategy that is suitable for him. Get to know the tools of the trade, as well as what will be expected of you to become a successful trader. If you'd like to learn how to become a successful Forex trader, consider a professional Forex mentoring course. With this kind of one on one assistance, a new trader can acquire and improve their necessary professional trading skills. With a little research, you can learn how to avoid common Forex trader mistakes and how to learn to move on. Have you heard the wise saying that a trader who fails to plan, plans to fail.
You may ask, “Do I have what it takes to be a currency trader” ask yourself do you have the drive and tenacity to succeed . I can tell you that as a well trained currency trader you can earn average profits of 5% to 25% or more per month. As a competent Forex trader you must study and understand daily foreign exchange rates. Becoming a successful trader will take work and a little stress, but the rewards are great. But I would say that fear and greed are, without a doubt, the enemies of the successful Forex trader and proper training is very important if you seriously want to get into the world of Forex trading.

So to sum it up quality Forex training is the key to success. The reason that Forex training is so important and vital is because the Forex market is extremely competitive, volatile and fragile. Forex training is essential to become an experienced trader. Forex training is very much in great demand as many people are looking for ways to profit from the currency trading marketplace. Training is widely available on the internet, including online courses, advanced trading workshops, books and more. If you search the internet you'll discover a lot of companies offering Forex training along with some great free Forex resources.

Developing A Sound Forex Trading System

2008-03-05T01:36:00.001-08:00

By: Bret Freak
Before going head first into trading the forex market, you may want to consider whether or not your forex trading system is actually based on sound concepts that will make you money over the long term. The most important aspect of your forex trading system should be the expectancy it produces. The expectancy of your trading system will give you an idea of how much you could expect to make over a certain period of time. This is explained further below.

Although you should aim at producing a high expectancy trading system, you should also consider exactly what your system is made up of. Most traders would agree that your trading system shouldn’t just be composed of mainly ’lagging’ technical indicators, but rather include ‘leading’ indicators such as price action, and chart patterns.

The Mathematics Of A Trading System

The whole point of a forex trading system is to make you as much profits as possible while keeping your risk down to an absolute minimum. To determine whether or not your trading system does this, a few mathematical calculations can be made to determine how much your system will make on average, over a period of time. This is often referred to as the ‘Expectancy’ of a system.

To calculate the expectancy of your trading system, you will need to take into account the following:

1. How often is your system correct? 2. How much are your profits compared to your losses? 3. How often are you able to trade your system? And 4) What does it cost to trade?

The following is an example taking these factors into account to determine its expectancy. Assuming the following:

1. The system is correct 70% of the time. 2) On average your profits are 2 times the amount you loose (make 80 pips, loose 40 – assume spread cost is taken into account). 3) you are able to trade 3 times per week.

The formula to calculate expectancy is:
(probability of a win × average win) less the (probability of a loss × average loss) × opportunity

Using the above values we would conclude:
(0.70 × 80 pips) minus (0.30 × 40 pips) × 3
= 132 pips. This means you could expect to make on average 132 pips every week.

Combining Leading & Lagging Indicators

So why include leading indicators in your trading system? The fact is, leading indicators have more predictive power, and can predict market moves before they occur. Lagging indicators cannot do this, however they can still complement other leading indicators. Some well known leading indicators include: pivot points, chart patterns, fibonacci retracements, and candlestick patterns.

In fact candlesticks are probably one of the most powerful leading indicators, since you are observing price action itself. Traders around the world have found that candlesticks can add an extra dimension to their trading system. The reason for this can be largely contributed to Steve Nison’s book Japanese Candlestick Charting Techniques. Here is a quote from the book:

“If you are a seasoned technician, you will discover how joining Japanese candlesticks with your other technical tools can create a powerful synergy of techniques.”

Of course there are many different ways you can incorporate the use of leading indicators in your forex trading system. Here I have aimed at giving you a taste of what is possible. I also recommend that you check out investopedia’s lesson on how to develop a medium term forex trading system. This lesson also puts forward some interesting concepts which include combining leading indicators with other technical tools.

Conclusion

By including the use of leading indicators in your trading system, you will be able to add an edge to your system that will enable you to catch trends earlier, and hence make more money. And by understanding the basic mathematics involved in determining a trading systems profitability, you should be able to determine whether or not you have a good forex trading system.

Making Money Through Forex Trading

2008-03-05T01:35:00.002-08:00

By: Kip Goldhammer
There is loads of cash to make from foreign currency trading. And people are earning huge profits from it all the time. Every fluctuation in the currency markets poses an opportunity to earn money for someone who has a good grasp on foreign currency trading. There are several factors that influence the currency markets and sometimes there are big events (e.g. introduction of euro) too.

The forex trading system involves buying and selling foreign currency. Unlike the stock market there is no fixed market for the forex trading system. A good and effective forex trading system allows the traders to transact easily and provide more chances to increase the earnings. Forex, foreign exchange market, is a market place where a currency of one country is sold for another country's currency for some profit. Currencies are traded in pares, like, US Dollar and Japanese Yen or US Dollar and Euro.

Foreign exchange tradings are a great money making opportunity for those who know their way around, for newbie it's a dream world where they either fall hard, sail well or fly high, its not easy to be a successful trader in the forex trading system., it's a mix of luck and experience that must work to find success. There are a lot of companies and individuals over the internet and offline willing to help you earn money from the forex trading system but only a handful of these are true and can actually help.

Nowadays most of the calculations are done by easy to use software that need minimum input from the user. You will need help initially, and may take some time for you to get to know the forex trading system. The high degree off leverage can sweep you either way, in the forex trading system one has to assess the risk for self, think of the chance one may have individually or with the help of a broker and/ or signal provider one may have and the amount which one can safely risk without putting yourself into financial trouble. It's a law of nature, where there's potential to earn there' potential to loose so just be prepared before you dive in.

To make good profits from foreign currency trading, you need to keep a close eye on the foreign currency markets. You need to do your own analysis of foreign currency trading and you need to know what other people are thinking about the emerging trends in foreign currency markets. You also need to keep track of the news items that could move the foreign currency markets. Each fluctuation presents an earning opportunity. You need to time your moves well. You need to develop strategies and execute them well.

The Elliott Wave Principle And Hurst Envelope Analysis Support Chart Patterns

2008-03-05T01:35:00.001-08:00

By: Bret Freak
Still wondering whether chart patterns are a valid form of analysis to trade the forex market? Well, just recently I have realized that both Elliott Wave, and. Hurst Envelope analysis support the validity of chart patterns, and even go as far to explaining why they occur! What’s interesting is the fact that both Elliott Wave & Hurst Envelope analysis are two very different analysis techniques, yet both explain exactly why these patterns continue to repeat time and time again.

Here is a quote from the Elliott Wave Principle on chart patterns:

“The Elliott Wave Principle not only supports the validity of chart analysis, but it can help the technician decide which formations are most likely of real significance” It goes onto explaining how chart patterns relate to Elliott Wave analysis and how you can use it in your trading.

And here is a quote from James Hurst’s book entitled: “Profit Magic of Stock Transaction Timing”

“If the “X” motivation concept is valid, it must be able to explain the existence and, reoccurrences of common chart patterns and, why they impart information to the investor.” And:

“The second purpose of the chapter is to show you how the price motion model can be used to resolve chart patterns. Such patterns can be used to determine which way and when price motion will go at pattern termination.”

Although the above may sound very confusing to those who haven’t read Hurst’s book, it’s still an interesting fact that the validity of chart patterns have been confirmed and supported by two very different market timing techniques. Now this brings us to another question: Can both Elliott Wave and Hurst Envelope analysis be somehow combined together to take chart analysis to a new level? Perhaps.

It’s not however my aim here to go into any details on how this may be achieved, but rather, allow those interested to follow up on this interesting idea themselves, and give those who are unsure if chart patterns are really a valid form of trading analysis, some confidence in their value in trading the forex market.

A Parting Comment:

Before you go out and buy a copy of Hurst’s book “Profit Magic of Stock Transaction Timing” I would like to warn you in advance that the content presented in this book can be at times hard to understand. And on top of this, the market timing technique Hurst presents in that book can be very time consuming. Since it involves manually drawing in “Envelopes” around price action. It is still however an interesting read, especially for those who are interested in how Hurst’s timing technique can be used to add accuracy to chart pattern recognition.

I believe the Majority of traders would be content on using the Elliott Wave Principle to further analyze chart patterns. Since it is more widely known than Hurst’s Envelope technique, and has more extensive information and education available on it than Hurst’s technique.

Conclusion

By understanding the Elliott Wave Principle, and Hurst Envelope analysis, you are able to take chart pattern recognition to a new level of accuracy, and therefore profitability. So, if you are the type of person who is interested in trading chart patterns more successfully you may be interested in doing some further research into Hurst Envelope analysis, and the Elliott Wave Principle.

Understanding Foreign Currency Pairs

2008-03-05T01:34:00.001-08:00

By: Martin Chandra
Trading the forex market has many benefits over other financial markets, among the most important are: superior liquidity, 24hrs market, better execution, and others. Traders and investor see the forex market as a new speculation or diversifying opportunity because of these benefits.

Simply said, no other trading instrument comes even closely to forex market when it comes to liquidity, 24hr market environment and last but not the least, profit potential. Forex (currency) market is the largest (most liquid) financial market in the world, with an average daily volume of more than US$ 1.5 trillion, which is more than all of the global equity markets combined.

Foreign exchange market is where the currency of one nation is traded for that of another. Therefore, forex trading is always traded in pairs.

However, the way currencies are quoted against each other can initially seem a little confusing, especially for beginner. Basically, there are two rules of thumb - and three exceptions to the first rule.

Rule No. 1: All currency rate quotes are expressed as units per dollar. For example, the rate between the Japanesse yen (JPY) and the U.S. Dollar (USD) is expressed as 103.14 Japanese yen per dollar. The technical term for this is that USD is the "base currency" against which JPY is quoted.

A higher quote, such as 104.33, means that the dollar has appreciated in value compared to the yen, because it now takes more JPY to the same amount of USD. When charted, this means that a continuously stronger dollar will result in an uptrend on the chart. If you believe USD will continue to trend higher, which means JPY will trend lower, then you would sell JPY.

The exceptions to the first rule are the British poundsterling (GBP), European euro (EUR), and Australian dollar (AUD). These currencies are the base currencies against the USD. When rates between the USD and any of these currencies are charted, a continously stronger dollar will appear as a downtrend on the chary. If USD has appreciated relative to GBP from yesterday to today, today's quote between GBP and USD is lower than yesterday's quote. If you believe USD will continue to trend lower, and consequently GBP to trend higher, you should sell GBP.

Rule No. 2: All quote denominations are backwards with the base currency stated first. For example, the Swiss franc (CHF) and USD is denominated as USD/CHF. The quote between USD and EUR is denominated EUR/USD. Another example of denominations are USD/JPY, USD/CAD, GBP/USD, AUD/USD, etc.

Forex Currency Trading System Possibilities

2008-03-05T01:33:00.004-08:00

By: Bret Freak
So many people continue to discuss the use of common technical indicators in trading systems, without realizing or perhaps just not bothering to look at more predictive trading tools that are available to trade the forex market.

And so the purpose of this article is to present to you a few alternatives to using lagging indicators and instead incorporate leading indicators in your system, and that means looking directly at price action which some refer to as trading naked.

What I’m about to explain here, is a number of analysis techniques which I have combined together giving you an idea of what is possible. Now just because I have combined the use of all four market timing techniques in this article, doesn’t mean you have to use them together in your trading system, rather incorporate the use of one or more of these tools in your own forex trading system to suit yourself.

The first thing to do, is to identify a main market move, then apply fibonacci retracement levels to that move. These fibonacci resistance levels will now act as a reference point. We will now refer to other tools to indicate a possible reversal around one of these resistance levels.

We now wait for a candlestick reversal signal to occur around one of the main fibonacci resistance levels to indicate a possible reversal trend. When you think about it, fibonacci and candlestick reversal patterns are a great combination of analysis tools to use. Think about it for a moment. Once you observe a natural level of resistance in the form of a fibonacci, and at the same time you notice a candlestick reversal signal occurring aroung this level, for example a shooting star pattern, it gives you added confidence that a change in trend to the downside may be about to occur.

This brings me to our third indicator which gives further indication of a reversal occuring. This third analysis technique is called Elliott Wave. Now it is not my purpose here to go into detail about the Elliott Wave Principle, but rather show you the possibility of the tools you could use in your forex trading system.

To give you an idea of what Elliott Wave is all about, I quote from the Elliott Wave Principle book:

“In the 1930’s, Ralph Nelson Elliott discovered that stock market prices trend and reverse in recognizable patterns, the patterns he discovered are repetitive in form but not necessarily in time of amplitude. Elliott isolated five such patterns or waves that recur in market data. He named, defined, and illustrated these patterns and their variations. He then described how they link together to form larger variations. He then described how they in turn link to form the same patterns of the next larger size and soon producing structured progression.”

And further on into the book it goes onto saying:

“The primary value of the wave principle is that it provides a context for market analysis.”

And that is exactly how you should use it in your own forex trading system, in context with your other indicators or tools such as Fibonacci retracements, and candlestick reversal patterns.

Now to the fourth and final market timing technique you could incorporate in your forex trading system, or use with the other technical tools I have presented here in this article. This last market timing technique is called the Delta Phenomenon. More information about this technique and all the others presented here in this article can be found on my website listed below.

Basically the Delta Phenomenon is a cyclic phenomenon that was observed to be common in all financial markets around the world. Here is a quote from the book:

“Once one discovers the number of points that repeat and where the repeat begins, he is able to predict where in time each of these points will occur as far in the future or the past as he may want to go.”

The interesting thing here is the fact that this sounds similar to the paragraph I read out of the Elliott Wave Principle book which stated that, Elliott Wave patterns are repetitive in form but not necessarily in time or amplitude. This is where the Delta Phenomenon could complement EW, since DP gives you an idea of the time period to expect a reversal.

I would also like to mention here that the delta phenomenon is one of those market timing techniques that can be incorporated with any trading system, and it’s definitely worth looking into further if you’re interested in increasing both profitability and accuracy in your forex trading system.

Conclusion

It is up to you which market timing techniques you choose to use in your trading system.
However you should be able to add an extra layer of both confidence and accuracy, by incorporating the use of any of these four market timing techniques in your own forex trading system.

Elliott Wave Principle

2008-03-05T01:33:00.001-08:00

By: Bret Freak
The chances are, you have probably heard of the Elliott Wave Principle, however without spending some time to carefully study this market timing technique, it can be a difficult principle to understand and apply. The Elliott Wave concept is a very interesting method of identifying cycles in the financial markets. Keeping in mind that it is not yet fully understood exactly why it works, this hasn’t stopped traders around the world from applying and profiting from this unique principle.

The Elliott wave principle or wave principle as some refer to it is a form of market timing that traders and investors use to forecast possible trends in the financial markets. Ralph Nelson Elliott developed a financial market model which he called The Wave Principle. Ralph published his views and ideas of how the market behaved in his book titled: The Wave Principle (1938). Elliott suggested that market movements unfold in specific patterns which he called waves. Today practitioners and traders refer to this principle as the Elliott Wave.

The best place to learn about the Elliott wave principle absolutely *FREE* is the Elliott Wave International website. I also suggest you get the Elliott Wave Principle book by Frost and Prechter, it only costs $29.00 USD plus shipping if you get it from Elliott Wave International, which is a small investment compared to what the Elliott Wave Principle is capable of achieving when used correctly.

To give you an idea as to what to expect from the book, here are some quotes from the Elliott Wave Principle Key to Market Behavior by A.J. Frost and Robert R. Jr. Prechter

“In this book, we have tried to produce a work that gives a complete treatment of the subject in a manner which we hope will succeed in introducing both experienced analysts and interested laymen to the fascinating field of Elliott. We trust our readers will be encouraged to do their own research by keeping a chart of hourly fluctuations of the Dow until they can say with enthusiasm, “I see it!” Once you grasp the Wave Principle, you will have at your command a new and fascinating approach to market analysis, and even beyond that, a mathematical philosophy that can be applied in other spheres of life. It will not be the answer to all your problems, but it will give you perspective and at the same time enable you to appreciate the strange psychology of human behavior, especially market behavior. Elliott’s concepts reflect a principle you can readily prove to yourself and evermore see the stock market in a new light.”

“In the 1930s, Ralph Nelson Elliott discovered that stock market prices trend and reverse in recognizable patterns. The patterns he discerned are repetitive in form but not necessarily in time or amplitude. Elliott isolated five such patterns, or “waves,” that recur in market price data. He named, defined and illustrated these patterns and their variations. He then described how they link together to form larger versions of themselves how they in turn link to form the same patterns of the next larger size, and so on, producing a structured progression. He called this phenomenon The Wave Principle.”

And further on down the page it goes on to say:

“The primary value of the Wave Principle is that it provides a context for market analysis.”

And:

“At times, its accuracy in identifying, and even anticipating, changes in direction is almost unbelievable.”

(Quotes taken from the Elliott Wave Principle Key to Market Behavior by A.J. Frost and Robert R. Jr. Prechter)

Conclusion

The Elliott Wave Principle is definitely a viable method of market timing. However as stated in the Elliott Wave Principle book, it should be used “In context” with your other technical tools. So consider the added accuracy and profitability that can be added to your own trading system with the help of the Elliott Wave Principle.