Recently Forex trading has become one of the most widely spread activities for those who want to make money by trading the markets. The currency markets have many characteristics that make them very attractive to most traders. Mainly, the currency markets are high volume markets with a live trading activity that embraces most of the week and around the clock. Besides most trades are commission free, it offers a huge leverage (100 x 1) and forex is easily accessible by using an internet platform provided by the forex broker you decide to use.
But as simple as it may look when you first approach forex trading, the truth is that becoming profitable in trading is not easy. But before you get scared and decide to forget about forex trading, there is also one more truth: the markets are understandable and with the right knowledge and system you can become a profitable trader. Many people has achieved his goal of gaining a full time income from trading and you can too if you do things right.
There are many ways to lose money in the currency markets. For example you can ignore using “stops” in your trades and take huge risks thinking you have guessed the direction the market will turn next. Reality will show you that the turn of the market may take a long time to come and meanwhile it will cost you dearly. You can also use a “guessing system” to trade. This kind of approach, even with “stops” will result in making you a frustrated trader that will only keep losing more money than what you earn.
There is also a very important factor that can ruin your trades. This factor is “fear”. You can’t approach the markets with fear in your mind. You must be confident about what you are doing and how you will behave as your trade evolves with time. The best thing you can do in order to keep fear out of your trading is to have and understand a good and reliable forex trading system that will show you the way to a profitable trading career.
http://TrendForexSystemReview.googlepages.com
Article Source: http://EzineArticles.com/?expert=Adrian_Pablo
Sunday, October 28, 2007
Technical Analysis & Trends In Forex Trading
Everyone is talking about forex these days, and there are big reasons that explain this huge interest expressed by people all around the world who are willing to learn and enter the world of forex trading. Forex is a huge market with an almost continuous activity all year long, week after week, hour after hour and with the particular characteristic of showing highly marked trends, making it an easily tradable market if you know how to read those trends.
In order to correctly read the forex charts you need technical analysis; this is defined as the study of the price and trading history of a particular currency pair. T.A. stands in the opposite sidewalk to what’s known as fundamental analysis, which is defined as the study of the actual nature and characteristics of the stock or a particular currency in the case of forex. Although some investors combine the two types of analysis in making investment decisions, there are techniques originated from the exhaustive studying of past price charts and trading action during long trading periods that allow the use of only technical indicators in order to have profitable trades.
Technical analysis relies on the empirical evidence to assert that prices do trend. This assumption that prices must trend in the forex market evolution with time is the most important concept in technical analysis.
Technical analysis has many different methods and tools in its arsenal; they all share the characteristic of relying on the assumption that price patterns and trends exist in the markets. Of course, technical analysis is not 100% accurate, but a correct analysis by these methods and techniques will give results that are correct much more often than they are wrong. And this is the basis for building a profitable forex trading system.
If you want to learn more about Trend Trading in Forex and how to become profitable take the first step:
=>> http://TrendForexSystemReview.googlepages.com/
Article Source: http://EzineArticles.com/?expert=Adrian_Pablo
In order to correctly read the forex charts you need technical analysis; this is defined as the study of the price and trading history of a particular currency pair. T.A. stands in the opposite sidewalk to what’s known as fundamental analysis, which is defined as the study of the actual nature and characteristics of the stock or a particular currency in the case of forex. Although some investors combine the two types of analysis in making investment decisions, there are techniques originated from the exhaustive studying of past price charts and trading action during long trading periods that allow the use of only technical indicators in order to have profitable trades.
Technical analysis relies on the empirical evidence to assert that prices do trend. This assumption that prices must trend in the forex market evolution with time is the most important concept in technical analysis.
Technical analysis has many different methods and tools in its arsenal; they all share the characteristic of relying on the assumption that price patterns and trends exist in the markets. Of course, technical analysis is not 100% accurate, but a correct analysis by these methods and techniques will give results that are correct much more often than they are wrong. And this is the basis for building a profitable forex trading system.
If you want to learn more about Trend Trading in Forex and how to become profitable take the first step:
=>> http://TrendForexSystemReview.googlepages.com/
Article Source: http://EzineArticles.com/?expert=Adrian_Pablo
Free Forex Trading, The Best Way To Start A Successful Trading Career
The Forex market is known around the world by its high liquidity and high volume of transactions occurring during most of its long trading week. This makes the transactions conducted in this market highly profitable. But before anyone can enter the forex market and make some money he has to learn the ropes of the trade. But how do you do that? The answer is. By trading the forex for free.
Yes, it’s true, you can trade the forex markets for free and using the same state-of-the-art software packages that professional Forex traders use to help them make real-time, live currency trades. You will also experience the same dynamic market action and the same process of making decisions, reacting to charting patterns, and tracking the performance of your forex trading system the same way professional traders do. All this can be done even if you don't put any real money into your account. All this means that in the beginning every new forex trader needs to start Demo-Trading.
This will be of great help when you are new to forex trading. By placing demo trades, you will learn a lot about how Forex transactions work. This is a very important step for you in order to be able to learn how to become a trader. A demo account allows one to become familiar with trading procedures, such as placing Market, Limit, Stop, Orders without any risk. Of course all dollar losses or gains using a demo account are imaginary but, as mentioned above, the trading experience you acquire is not.
Making big gains in a demo-account does not guarantee profits in live trading; however, those who are not successful trading on paper rarely are successful when money is on the line.
Once you sign up for a demo account, you will need to try one of the charting packages from the broker you will be using. Any demo software you choose will do because they all have the necessary indicator tools you need. Once you have downloaded the software you can then set up your demo account and start drawing trendlines, marking support & resistance levels, monitoring moving averages, etc. Once you have a real trading system, you will already know how to place orders properly.
If you are interested in learning the methods to trade Forex successfully you can visit this site:
=>> http://www.1-forex.com
Article Source: http://EzineArticles.com/?expert=Adrian_Pablo
Yes, it’s true, you can trade the forex markets for free and using the same state-of-the-art software packages that professional Forex traders use to help them make real-time, live currency trades. You will also experience the same dynamic market action and the same process of making decisions, reacting to charting patterns, and tracking the performance of your forex trading system the same way professional traders do. All this can be done even if you don't put any real money into your account. All this means that in the beginning every new forex trader needs to start Demo-Trading.
This will be of great help when you are new to forex trading. By placing demo trades, you will learn a lot about how Forex transactions work. This is a very important step for you in order to be able to learn how to become a trader. A demo account allows one to become familiar with trading procedures, such as placing Market, Limit, Stop, Orders without any risk. Of course all dollar losses or gains using a demo account are imaginary but, as mentioned above, the trading experience you acquire is not.
Making big gains in a demo-account does not guarantee profits in live trading; however, those who are not successful trading on paper rarely are successful when money is on the line.
Once you sign up for a demo account, you will need to try one of the charting packages from the broker you will be using. Any demo software you choose will do because they all have the necessary indicator tools you need. Once you have downloaded the software you can then set up your demo account and start drawing trendlines, marking support & resistance levels, monitoring moving averages, etc. Once you have a real trading system, you will already know how to place orders properly.
If you are interested in learning the methods to trade Forex successfully you can visit this site:
=>> http://www.1-forex.com
Article Source: http://EzineArticles.com/?expert=Adrian_Pablo
Forex - Your First Live Trade
You have read and read about trading in the foreign exchange (FOREX) market. Ideally, you have even taken a course or two on the subject. As you look at your bank account balance, you are more motivated than ever as you contemplate its present condition versus the potential. Really, though, the only missing piece now is the reality of trading live. You want to jump right in, but instead you pause with cautious optimism as you wonder what to expect at the big moment. Here are some tips to help you cope.
Calm Your Emotions
Fear, indecisiveness, nervousness, uncertainty and loneliness-these are the emotions you want to avoid or, at least, put in the proper perspective. Are they normal? Absolutely! In fact, one or more of these can be viewed in a positive light as types of behavioral moderators. To be sure, a certain type of fear is healthy. For example, having a fear of getting out your account balance wiped out should remind you of the need to utilize proper risk management techniques and tools. Your indecisiveness may be a result of genuine confusion existing between the normal indicators you would rely on to show whether you should take a position or stay out of the market. If there is reasonable doubt, stay out. Overall, you should strive to be the balanced person you are designed to be as a means to being a well-balanced trader. This means that you need to get adequate rest, obtain proper nutrition, exercise and meditate to achieve and maintain the necessary balance and sanity successful trading will demand. A cold shower about 30 minutes prior to your trading activities should also help to soothe your nerves while catalyzing blood flow to your brain for better thought process.
Plan Your Trade
If you have not yet received proper training in trading, you should not be trading at all. It has been stressed over and over again that education is foundational to successful trading. Proper training should have taught you how to plan your trades. This would include demonstrations as to how to derive your entry and exit points; how to set your limits, profit targets and stops; how to identify trends; how to get confirmations from certain indicators; how to avoid over-trading, how to set leverage; how to monitor margin, and, how to determine when and when not to trade. Once you have a solid grasp of these concepts, you are ready for your final step.
Trade Your Plan
The problem with many new traders is that they panic when something unfavorable arises during their trade. This can be avoided by having a sound trading plan prior to opening a position. If this is done, then there is no need to panic, since you have a rehearsed roadmap to guide you. Do not try to change the plan in the middle of the stream. Sometimes, of course, the unexpected does arise forcing you to think on your feet and act quickly. Again, your improvisation should not be overshadowed nor dictated by panic and irrationality. Try to determine exactly what the problem is and apply sound principles to correct it. You should try to cure the loneliness of this turmoil by simply contacting your trainer, mentor or other more experienced trader to help you out of the bind, if time allows. Generally speaking, however, you should try to stick as closely as possible to your initial trading plan for optimal results in the long run. Happy trading!
Sandy Robinson, J.D., Copyright 2007
If you are ready to change your future by stepping into the exciting world of trading FOREX, go to http://www.winningtradersassociation.com for more information. Author Sandy Robinson, J.D. is part of the Winning Traders Association, an educational organization founded by John Beiler, President. The organization consists of a network of committed trainers and motivated traders willing to provide support to those interested in trading foreign exchange. Many of the members work from home.
Article Source: http://EzineArticles.com/?expert=Sandy_Robinson,_J.D.
Calm Your Emotions
Fear, indecisiveness, nervousness, uncertainty and loneliness-these are the emotions you want to avoid or, at least, put in the proper perspective. Are they normal? Absolutely! In fact, one or more of these can be viewed in a positive light as types of behavioral moderators. To be sure, a certain type of fear is healthy. For example, having a fear of getting out your account balance wiped out should remind you of the need to utilize proper risk management techniques and tools. Your indecisiveness may be a result of genuine confusion existing between the normal indicators you would rely on to show whether you should take a position or stay out of the market. If there is reasonable doubt, stay out. Overall, you should strive to be the balanced person you are designed to be as a means to being a well-balanced trader. This means that you need to get adequate rest, obtain proper nutrition, exercise and meditate to achieve and maintain the necessary balance and sanity successful trading will demand. A cold shower about 30 minutes prior to your trading activities should also help to soothe your nerves while catalyzing blood flow to your brain for better thought process.
Plan Your Trade
If you have not yet received proper training in trading, you should not be trading at all. It has been stressed over and over again that education is foundational to successful trading. Proper training should have taught you how to plan your trades. This would include demonstrations as to how to derive your entry and exit points; how to set your limits, profit targets and stops; how to identify trends; how to get confirmations from certain indicators; how to avoid over-trading, how to set leverage; how to monitor margin, and, how to determine when and when not to trade. Once you have a solid grasp of these concepts, you are ready for your final step.
Trade Your Plan
The problem with many new traders is that they panic when something unfavorable arises during their trade. This can be avoided by having a sound trading plan prior to opening a position. If this is done, then there is no need to panic, since you have a rehearsed roadmap to guide you. Do not try to change the plan in the middle of the stream. Sometimes, of course, the unexpected does arise forcing you to think on your feet and act quickly. Again, your improvisation should not be overshadowed nor dictated by panic and irrationality. Try to determine exactly what the problem is and apply sound principles to correct it. You should try to cure the loneliness of this turmoil by simply contacting your trainer, mentor or other more experienced trader to help you out of the bind, if time allows. Generally speaking, however, you should try to stick as closely as possible to your initial trading plan for optimal results in the long run. Happy trading!
Sandy Robinson, J.D., Copyright 2007
If you are ready to change your future by stepping into the exciting world of trading FOREX, go to http://www.winningtradersassociation.com for more information. Author Sandy Robinson, J.D. is part of the Winning Traders Association, an educational organization founded by John Beiler, President. The organization consists of a network of committed trainers and motivated traders willing to provide support to those interested in trading foreign exchange. Many of the members work from home.
Article Source: http://EzineArticles.com/?expert=Sandy_Robinson,_J.D.
Forex Trading & The Proper Hours To Win
If you want to find an appreciable number of profitable trades when trading Forex you need to enter the forex market at the best period of time. This means you should enter when the activity, the volume of transactions, is the highest. All experienced traders focus on the hours when the currency markets tend to make their biggest moves, i.e., during the big market overlaps, which therefore, are usually the best times to trade.
Forex markets are open worldwide with the following schedule:
* New York Market trade times: 8am-4pm EST
* London Market trade times: 2am-12Noon EST
* Great Britain Market trade times: 3am-11am EST
* Tokyo Market trade times: 8pm-4am EST
* Australia Market trade times: 7pm-3am EST
Forex markets have also these timing characteristics:
* Forex Trading begins in New Zealand, followed by Australia, Asia, the Middle East, Europe, and America
* The US & UK account for more than 50% of the market transactions
* Forex Major markets: London, New York, Tokyo
* Nearly two-thirds of NY activity occurs in the morning hours while European markets are open.
From this timing facts, it is evident that at any given time, somebody somewhere in the world is buying and selling currencies. As one market closes a different market opens. Business hours overlap, and the exchange continues as day becomes night and night becomes day.
The great liquidity of Forex, combined with the fact that's traded 5.5 days a week around the world, offers every trader an exceptional independence and choices to trade Forex when you want to and not when the market wants you to do it. It’s a facts that trades always develop with relatively the same frequency, regardless of time. As long as the Forex market is open, there is about the same probability that you will find a trade, whenever your look for it.
Forex market volume of transactions remains high during the whole day, but peaks highest when the Asian market(including Australia & New Zealand), the European market and the U.S. market are open simultaneously. And these are the best trading hours you must target in order to find the highest possible amount of profitable trades.
During each trading day, the total Forex “volume” is determined by the number of markets that are open and the times each of these markets overlap one another.
Learn the best Forex strategies and Techniques that will keep you on the right side of the market:
=>> http://www.1-forex.com
Article Source: http://EzineArticles.com/?expert=Adrian_Pablo
Forex markets are open worldwide with the following schedule:
* New York Market trade times: 8am-4pm EST
* London Market trade times: 2am-12Noon EST
* Great Britain Market trade times: 3am-11am EST
* Tokyo Market trade times: 8pm-4am EST
* Australia Market trade times: 7pm-3am EST
Forex markets have also these timing characteristics:
* Forex Trading begins in New Zealand, followed by Australia, Asia, the Middle East, Europe, and America
* The US & UK account for more than 50% of the market transactions
* Forex Major markets: London, New York, Tokyo
* Nearly two-thirds of NY activity occurs in the morning hours while European markets are open.
From this timing facts, it is evident that at any given time, somebody somewhere in the world is buying and selling currencies. As one market closes a different market opens. Business hours overlap, and the exchange continues as day becomes night and night becomes day.
The great liquidity of Forex, combined with the fact that's traded 5.5 days a week around the world, offers every trader an exceptional independence and choices to trade Forex when you want to and not when the market wants you to do it. It’s a facts that trades always develop with relatively the same frequency, regardless of time. As long as the Forex market is open, there is about the same probability that you will find a trade, whenever your look for it.
Forex market volume of transactions remains high during the whole day, but peaks highest when the Asian market(including Australia & New Zealand), the European market and the U.S. market are open simultaneously. And these are the best trading hours you must target in order to find the highest possible amount of profitable trades.
During each trading day, the total Forex “volume” is determined by the number of markets that are open and the times each of these markets overlap one another.
Learn the best Forex strategies and Techniques that will keep you on the right side of the market:
=>> http://www.1-forex.com
Article Source: http://EzineArticles.com/?expert=Adrian_Pablo
Must Know Before Starting Forex Trading
Many people have heard about Forex trading, some have even made the effort and looked for information. Forex trading has a lot to offer the private trader. A successful Forex trader can earn a lot of money in a short period of time.Before you dive into the Forex world you should be aware of the following:
1. Forex trading is a risky business , it involves high leverage and you may lose money. Because of its complexity and the fact that most traders experience losses - sometimes it is compared to gambling. However Forex trading is not gambling, as you control your level of exposure via your ability to get out whenever it suits you to minimize your risk and make your investment safer.
2. Do not start trading unless you have money that you can afford losing. The worst thing to do is to trade with "Coward Money". When someone opens a real account and deposits money that can not be afforded the money will probably go down the drain as a result of the psychological element that comes into play.When trading you must be detached from your emotions. If you trade with money that you can not afford to lose you add a level of anxiety to your trading and that will disrupt your thinking and planning.
3. Forex trading is a profession like any other profession and therefore you must study and know what you are doing. There is plenty of information available on the Internet or in books.
4. Trading requires discipline and an organized system especially when talking about Forex trading. Every trader must have a plan and discipline in order to survive and earn a living. Before you start trading with real money you should study up as much as you can about trading. You may choose a fundamental or a more technical approach however keep in mind that you will have to constantly maintain your studies and develop your own system and approach towards trading.
5. Money management is very important in any kind of trading , especially in Forex trading where leverage is high. Sometimes you will have to make difficult decisions that may cost you some money in the short run but save you much more money down the road. Successful traders will often opt to cut losses and lose a small portion of their money instead of losing big sum of their money. There is no place for prayers, wishes or hopes in the world of professional trading - successful traders are detached from their feelings and remain impassive to the rises and falls of the market.
6. Like any other business, Forex trading requires forward planning. Before entering a trade you should analyze the market, charts and conditions. The successful trader plans trades and recognizes the precise moment of the entry, exit and stop loss points way before the trading even begins. The keys for long term success is analyzing planning, managing the trade strictly according to the plan.
For conclusion: Although trading is not for everyone , if you are serious in your decision to become a successful trader then it is possible. The thing that differentiates successful traders from the rest of people is their determination and desire to become successful. Successful traders never stop learning about the market and new systems.
Ziv Al has been active in stocks and Forex trading for the last few years.
If you want more excellent information about Forex you can find it in his site http://Forex-intro.info
Article Source: http://EzineArticles.com/?expert=Ziv_Al
1. Forex trading is a risky business , it involves high leverage and you may lose money. Because of its complexity and the fact that most traders experience losses - sometimes it is compared to gambling. However Forex trading is not gambling, as you control your level of exposure via your ability to get out whenever it suits you to minimize your risk and make your investment safer.
2. Do not start trading unless you have money that you can afford losing. The worst thing to do is to trade with "Coward Money". When someone opens a real account and deposits money that can not be afforded the money will probably go down the drain as a result of the psychological element that comes into play.When trading you must be detached from your emotions. If you trade with money that you can not afford to lose you add a level of anxiety to your trading and that will disrupt your thinking and planning.
3. Forex trading is a profession like any other profession and therefore you must study and know what you are doing. There is plenty of information available on the Internet or in books.
4. Trading requires discipline and an organized system especially when talking about Forex trading. Every trader must have a plan and discipline in order to survive and earn a living. Before you start trading with real money you should study up as much as you can about trading. You may choose a fundamental or a more technical approach however keep in mind that you will have to constantly maintain your studies and develop your own system and approach towards trading.
5. Money management is very important in any kind of trading , especially in Forex trading where leverage is high. Sometimes you will have to make difficult decisions that may cost you some money in the short run but save you much more money down the road. Successful traders will often opt to cut losses and lose a small portion of their money instead of losing big sum of their money. There is no place for prayers, wishes or hopes in the world of professional trading - successful traders are detached from their feelings and remain impassive to the rises and falls of the market.
6. Like any other business, Forex trading requires forward planning. Before entering a trade you should analyze the market, charts and conditions. The successful trader plans trades and recognizes the precise moment of the entry, exit and stop loss points way before the trading even begins. The keys for long term success is analyzing planning, managing the trade strictly according to the plan.
For conclusion: Although trading is not for everyone , if you are serious in your decision to become a successful trader then it is possible. The thing that differentiates successful traders from the rest of people is their determination and desire to become successful. Successful traders never stop learning about the market and new systems.
Ziv Al has been active in stocks and Forex trading for the last few years.
If you want more excellent information about Forex you can find it in his site http://Forex-intro.info
Article Source: http://EzineArticles.com/?expert=Ziv_Al
Saturday, October 27, 2007
Forex Markets & Its Trading Characteristics
There are a number of reasons why FOREX trading is such a great way of entering the capital markets. Among them we can find it’s easy accessibility thanks to the use of the internet, the fact that currency trading is all commission-free and also the low transaction costs involved.
There is one important characteristic about Forex that makes it what it is. This important characteristic is that there is not a single unified foreign exchange market in the world. Instead of this, due to the over-the-counter nature of currency markets, there exists a number of interconnected marketplaces, where many different currency instruments are traded. What this implies is that there is not a single dollar rate in the world, but different rates, depending on what bank or market maker you are asking a quotation to. In practice these rates are often very close as you can easily find on the web.
As a piece of general knowledge you must learn that the main forex trading centers are placed in New York, London, and Tokyo, but this doesn’t mean they are the only ones; there are other banks throughout the world that also participate. For example, as the Asian trading session ends, the European trading centers open, then the US session, and then the Asian centers open again. This kind of “continuos” market has the advantage that traders can react to news immediately, instead of waiting for the markets to open.
There are many factors that can influence the exchange rate of a particular currency. These rate fluctuations are usually caused by changes in inflation, GDP growth, interest rates, budget and trade deficits or surpluses, and other macroeconomic conditions f the country emitting the particular currency. Also major news that are released publicly can affect the prices of currencies; so many people have access to the same news at the same time that they can shake a currency price really hard.
According to a specialized study, the most heavily traded products on the spot market are: EUR/USD - 28 %, USD/JPY - 18 %, GBP/USD - 14 % and the US currency was involved in 89% of transactions, followed by the euro (37%), the yen (20%) and sterling (17%).
Forex Trading can make you real money if you learn the correct trading strategies. I particularly recommend you this one:
=>> http://TrendForexSystemReview.googlepages.com/
Article Source: http://EzineArticles.com/?expert=Adrian_Pablo
There is one important characteristic about Forex that makes it what it is. This important characteristic is that there is not a single unified foreign exchange market in the world. Instead of this, due to the over-the-counter nature of currency markets, there exists a number of interconnected marketplaces, where many different currency instruments are traded. What this implies is that there is not a single dollar rate in the world, but different rates, depending on what bank or market maker you are asking a quotation to. In practice these rates are often very close as you can easily find on the web.
As a piece of general knowledge you must learn that the main forex trading centers are placed in New York, London, and Tokyo, but this doesn’t mean they are the only ones; there are other banks throughout the world that also participate. For example, as the Asian trading session ends, the European trading centers open, then the US session, and then the Asian centers open again. This kind of “continuos” market has the advantage that traders can react to news immediately, instead of waiting for the markets to open.
There are many factors that can influence the exchange rate of a particular currency. These rate fluctuations are usually caused by changes in inflation, GDP growth, interest rates, budget and trade deficits or surpluses, and other macroeconomic conditions f the country emitting the particular currency. Also major news that are released publicly can affect the prices of currencies; so many people have access to the same news at the same time that they can shake a currency price really hard.
According to a specialized study, the most heavily traded products on the spot market are: EUR/USD - 28 %, USD/JPY - 18 %, GBP/USD - 14 % and the US currency was involved in 89% of transactions, followed by the euro (37%), the yen (20%) and sterling (17%).
Forex Trading can make you real money if you learn the correct trading strategies. I particularly recommend you this one:
=>> http://TrendForexSystemReview.googlepages.com/
Article Source: http://EzineArticles.com/?expert=Adrian_Pablo
Successful Forex Trading is Based on this Equation Understand It or Lose!
What moves currency prices? - Sounds an easy enough question but most currency traders have no idea and that's why 95% lose. Let's look at the equation for market movement and see how and why prices really move.
A simple equation for currency market movement is:
Supply and Demand Fundamentals + Investor Perception = Price
SIMPLE BUT ...
This equation is simple but its also deceptive - lets look at the equation in more detail.
Prices move in line with the long term fundamentals and that's why the longer term trends last for months or years because they reflect the health of the economy - the fundamentals.
The facts are there for us all to see but we all see the facts in our own way not logically or as group, but blurred by our greed, fear and opinions which we hold.
If you try and trade news stories you will lose as what may seem obvious to trade is already old news and discounted in the market price. In today's world of instant communications the facts are available in a split second at the click of a mouse.
Will Rogers once said " I only believe what I read in the papers" he was joking of course but its surprising how many people trade they see on the net TV or radio and are surprised when they lose!
If you could make money by trading the news a lot of traders would be rich and their not they lose.
It's a common investment fact that markets collapse when the fundamentals are most bullish and rally when their most bearish.
This is human psychology at work where prices have been pushed to far away from the fundamentals by the emotions of greed and fear.
You therefore need to see both sides of the equation we covered earlier.
This is where forex charts can help.
If you trade off forex charts you see the reality of price and only have to follow and act upon it. The fundamentals.
Forex technical analysis simply assumes that they will show up instantly in price action so you don't need to guess their impact - you can see it.
Investor Psychology
Forex charts also tell you how humans perceive the fundamentals as well.
All short term price spikes are due to human psychology and they don't last long and are quick and easy to spot on a forex chart.
While forex traders make mistakes about news and trading it, they also don't see the limitations of technical analysis and its strengths.
They assume that as human nature is constant, chart patterns can be predicted in advance with scientific accuracy - They can't.
If you try and predict with forex charts you will lose your equity quickly - on the other hand, if you get confirmation and trade with the odds you will win.
What is confirmation?
This means following moves AFTER they have occurred. Sure, you miss the start of the move but you can't catch that anyway, so don't try.
If you get just get a major chunk of the trend (60 - 70%) you will build big gains over the longer term. The forex markets are hard to trade but you can trade them and the rewards are massive for traders who trade them correctly.
If you use forex charts and simply follow and act on the confirmation of price changes without listening to opinions or trying to predict, then the equation we have looked at can make you a lot of money.
It sounds simple and in essence it is, but you need to get the right forex education, find the best technical tools and trade when high odds trades present themselves with confidence and discipline.
If you do the above you are well on your way to currency trading success and making big FX profits.
BECOME A PROFESSIONAL FOREX TRADER FROM HOME GRAB: 2 X CRITICAL PDFS AND MORE
For free 2 x trading Pdf's with 90 of pages of essential info and an exclusive Forex Trading Course visit our website at: http://www.learncurrencytradingonline.com/index.html
Article Source: http://EzineArticles.com/?expert=Kelly_Price
A simple equation for currency market movement is:
Supply and Demand Fundamentals + Investor Perception = Price
SIMPLE BUT ...
This equation is simple but its also deceptive - lets look at the equation in more detail.
Prices move in line with the long term fundamentals and that's why the longer term trends last for months or years because they reflect the health of the economy - the fundamentals.
The facts are there for us all to see but we all see the facts in our own way not logically or as group, but blurred by our greed, fear and opinions which we hold.
If you try and trade news stories you will lose as what may seem obvious to trade is already old news and discounted in the market price. In today's world of instant communications the facts are available in a split second at the click of a mouse.
Will Rogers once said " I only believe what I read in the papers" he was joking of course but its surprising how many people trade they see on the net TV or radio and are surprised when they lose!
If you could make money by trading the news a lot of traders would be rich and their not they lose.
It's a common investment fact that markets collapse when the fundamentals are most bullish and rally when their most bearish.
This is human psychology at work where prices have been pushed to far away from the fundamentals by the emotions of greed and fear.
You therefore need to see both sides of the equation we covered earlier.
This is where forex charts can help.
If you trade off forex charts you see the reality of price and only have to follow and act upon it. The fundamentals.
Forex technical analysis simply assumes that they will show up instantly in price action so you don't need to guess their impact - you can see it.
Investor Psychology
Forex charts also tell you how humans perceive the fundamentals as well.
All short term price spikes are due to human psychology and they don't last long and are quick and easy to spot on a forex chart.
While forex traders make mistakes about news and trading it, they also don't see the limitations of technical analysis and its strengths.
They assume that as human nature is constant, chart patterns can be predicted in advance with scientific accuracy - They can't.
If you try and predict with forex charts you will lose your equity quickly - on the other hand, if you get confirmation and trade with the odds you will win.
What is confirmation?
This means following moves AFTER they have occurred. Sure, you miss the start of the move but you can't catch that anyway, so don't try.
If you get just get a major chunk of the trend (60 - 70%) you will build big gains over the longer term. The forex markets are hard to trade but you can trade them and the rewards are massive for traders who trade them correctly.
If you use forex charts and simply follow and act on the confirmation of price changes without listening to opinions or trying to predict, then the equation we have looked at can make you a lot of money.
It sounds simple and in essence it is, but you need to get the right forex education, find the best technical tools and trade when high odds trades present themselves with confidence and discipline.
If you do the above you are well on your way to currency trading success and making big FX profits.
BECOME A PROFESSIONAL FOREX TRADER FROM HOME GRAB: 2 X CRITICAL PDFS AND MORE
For free 2 x trading Pdf's with 90 of pages of essential info and an exclusive Forex Trading Course visit our website at: http://www.learncurrencytradingonline.com/index.html
Article Source: http://EzineArticles.com/?expert=Kelly_Price
The Right Forex System Can Make You Rich
Whatever you think you should be doing in forex, the first thing you must consider when thinking about starting a profitable forex trading career is to find a forex system that will give you consistent gains. This means a system that will have a high percentage of successful trades over losing ones. No system is perfect, that’s true, but you will make money even with losing trades, as professionals do, if you do things right with your system. Lots of people earn a living trading the forex and you can do it too.
A key ingredient in your forex trading system must be to have the proper money management rule sin place before you start trading. Bad money management can sink your trading career at the very beginning. So be wise and plan ahead in your system.
Also you should have clear chart setups in order to have a wide and detailed view of the market at the moment you are trading. With your charts in place you should load your trading system with the correct logic of when to enter a trade and when to exit. In forex trading these two critical times often means lots of money inside or out of your pocket. Never use a system that doesn’t give you a clear logic for your trades.
It is always a plus if your system ha information of the best times of the day when to enter the markets and when you should better leave and take a brake. Forex trading session is all day but there are hours when the volume increases and trends show themselves more clearly. Taken note of this and considering when looking for a good forex trading system for you.
=>> http://5EMAsForexTradingSystem.googlepages.com/
Article Source: http://EzineArticles.com/?expert=Adrian_Pablo
A key ingredient in your forex trading system must be to have the proper money management rule sin place before you start trading. Bad money management can sink your trading career at the very beginning. So be wise and plan ahead in your system.
Also you should have clear chart setups in order to have a wide and detailed view of the market at the moment you are trading. With your charts in place you should load your trading system with the correct logic of when to enter a trade and when to exit. In forex trading these two critical times often means lots of money inside or out of your pocket. Never use a system that doesn’t give you a clear logic for your trades.
It is always a plus if your system ha information of the best times of the day when to enter the markets and when you should better leave and take a brake. Forex trading session is all day but there are hours when the volume increases and trends show themselves more clearly. Taken note of this and considering when looking for a good forex trading system for you.
=>> http://5EMAsForexTradingSystem.googlepages.com/
Article Source: http://EzineArticles.com/?expert=Adrian_Pablo
Using Percent R Indicator to Trade - Get Precise System
In his original work, Williams' method focused on 10 trading days to determine a market's trading range. Once the 10-day trading range was determined, he calculated where the current day's closing price fell within that range.
The %R study is similar to the Stochastic indicator, except that the Stochastic has internal smoothing and that the %R is plotted on an upside-down scale, with 0 at the top and 100 at the bottom. The %R oscillates between 0 and 100%. A value of 0% shows that the closing price is the same as the period high. Conversely, a value of 100% shows that the closing price is identical to the period low. The Williams indicator is designed to show the difference between the period high and today's closing price with the trading range of the specified period. The indicator therefore shows the relative situation of the closing price within the observation period.
The trading rules are simple. You sell when %R reaches 20% or lower (the market is overbought) and buy when it reaches 80% or higher (the market is oversold). However, as with all overbought/oversold indicators, it is wise to wait for the indicator price to change direction before initiating any trade.
Larry Williams defines the following trading rules for his %R: Buy when this percent reaches 100%, and five trading days have passed since 100% was last reached, and after which it again falls below 85/95%. Sell when %R reaches 0%, and five trading days have passed since 0% was last reached, and after which the Williams %R again rises to about 15/5%.
Visit his site at http://www.profitguideforex.com
Article Source: http://EzineArticles.com/?expert=Jack_Hoffen
The %R study is similar to the Stochastic indicator, except that the Stochastic has internal smoothing and that the %R is plotted on an upside-down scale, with 0 at the top and 100 at the bottom. The %R oscillates between 0 and 100%. A value of 0% shows that the closing price is the same as the period high. Conversely, a value of 100% shows that the closing price is identical to the period low. The Williams indicator is designed to show the difference between the period high and today's closing price with the trading range of the specified period. The indicator therefore shows the relative situation of the closing price within the observation period.
The trading rules are simple. You sell when %R reaches 20% or lower (the market is overbought) and buy when it reaches 80% or higher (the market is oversold). However, as with all overbought/oversold indicators, it is wise to wait for the indicator price to change direction before initiating any trade.
Larry Williams defines the following trading rules for his %R: Buy when this percent reaches 100%, and five trading days have passed since 100% was last reached, and after which it again falls below 85/95%. Sell when %R reaches 0%, and five trading days have passed since 0% was last reached, and after which the Williams %R again rises to about 15/5%.
Visit his site at http://www.profitguideforex.com
Article Source: http://EzineArticles.com/?expert=Jack_Hoffen
Forex Trading Machine, Is It For Real?
Trading the Forex markets has become one of the most popular activities among people from all walks in life but with the solid interest of gaining financial freedom away from the traditional environments of the office work.
But Forex trading is not always easy. You will need a good amount of knowledge related to how the currency markets behave in order to become a profitable forex trader. It is the dream of every trader to have a forex trading machine that would help them once the time to make a transcendental decision in the markets comes.
Now a days a veteran trader has been spreading the word about an original and quite revolutionary way to trade the forex markets. It is a system based on what is called Price Driven Forex Trading (PDFT).
He claims that this is at last that elusive Forex Trading Machine that has been dreamed by many traders for many years. PDFT is a system based in three trading strategies that are able to produce consistent and systematic profits for the trader that follows PDFT to the letter.
Many veteran traders agree that in order to be successful in the world of forex trading you must be original, innovative and different in your trading systems. And this is the basis of the Forex Trading Machine based on a different approach to currency trading, this is by the use of PDFT which is a method of trading the forex market without using any type of indicators, support or resistance levels, moving averages, pivots, oscillators, fibonacci, trend lines or any other trading tool you can think of. Price Driven Forex Trading only uses the price of the currency pair and a time element. Quite innovative I would say.
In short, the Forex Trading Machine is what every machine should be; this original trading system is 100% mechanical, this means it requires no discretion or interpretation. You will simply have to follow strict rules: if A = B then do C. That’s it.
Is the Forex Trading Machine for real this time?, I would say yes:
=> http://forextradingmachineguide.googlepages.com/
Article Source: http://EzineArticles.com/?expert=Adrian_Pablo
But Forex trading is not always easy. You will need a good amount of knowledge related to how the currency markets behave in order to become a profitable forex trader. It is the dream of every trader to have a forex trading machine that would help them once the time to make a transcendental decision in the markets comes.
Now a days a veteran trader has been spreading the word about an original and quite revolutionary way to trade the forex markets. It is a system based on what is called Price Driven Forex Trading (PDFT).
He claims that this is at last that elusive Forex Trading Machine that has been dreamed by many traders for many years. PDFT is a system based in three trading strategies that are able to produce consistent and systematic profits for the trader that follows PDFT to the letter.
Many veteran traders agree that in order to be successful in the world of forex trading you must be original, innovative and different in your trading systems. And this is the basis of the Forex Trading Machine based on a different approach to currency trading, this is by the use of PDFT which is a method of trading the forex market without using any type of indicators, support or resistance levels, moving averages, pivots, oscillators, fibonacci, trend lines or any other trading tool you can think of. Price Driven Forex Trading only uses the price of the currency pair and a time element. Quite innovative I would say.
In short, the Forex Trading Machine is what every machine should be; this original trading system is 100% mechanical, this means it requires no discretion or interpretation. You will simply have to follow strict rules: if A = B then do C. That’s it.
Is the Forex Trading Machine for real this time?, I would say yes:
=> http://forextradingmachineguide.googlepages.com/
Article Source: http://EzineArticles.com/?expert=Adrian_Pablo
How to Scalp Effectively in Forex Market
Scalping for small profits is one of the most popular strategies in Forex trading. Scalpers rely on trading regularly and taking consistent small profits. They usually liquidate their trades on the same day. However, the problem with this strategy is that it has the tendency to turn you into a compulsive gambler (especially for beginners). Why did I say that? There are various reasons for leading a new scalper into a compulsive gambler. When a trader turns into a compulsive gambler, he/she will be doom for failure. In this article we will take a quick look at the 2 common reasons for that and discuss on tips to scalp efficiently;
1. Addiction to Random Profits
Most newbie thought that they can make some quick profits by taking small profits in the Forex arena everyday. They enjoy the random rewards from the market, which may turn into an addiction. It is just like teaching your dog to perform a task and randomly rewarding it every time a task is done. In this way, there is no way your dog can know when it will be rewarded. As a result, there is no reason for your dog to quit doing the task, even without being rewarded for doing it.
2. Trading for Revenge
There is a common saying among scalpers; "Trade for today, not yesterday". Many newbie try to recoup their money back after their losses a few hours ago. They cannot swallow a loss or losses and became mesmerized with their fond memories of their past winnings. They keep thinking on how to win back their money, which tends to cloud their judgment on the market. They begin to fantasize opportunities in the market to enter a trade. This will eventually lead to their emotional attempt at revenge that is doomed to failure.
Tips to Scalp Efficiently
1. Determine the direction of the day by first looking at the daily chart.
2. Using candlestick studies, trendline or pivot points to enter a trade in the hourly chart.
3. For the above it must be use together with support and resistance.
4. Trading on continuous trend has a higher probability of success.
5. For contrarian trading, always enter at a better filled price or average your lot size to enter the trade
6. Scrape your trade if you do not feel comfortable after the point of entry or it takes too long for the trade to go in your direction.
7. Stop trading for the day if you have 3 losses in a row
Sebastian Sim
I'm a 31 year old Singaporean. Who started my trading journey since 2004. Now, I focus mainly in Stock Options, Forex and Unit Trusts(Mutual Funds) Investments. I've started a site The Trading Zone - a site about trading pyschology, Forex trading, investments and other topics that interests me from time to time.
http://sebastian-sim.blogspot.com
Article Source: http://EzineArticles.com/?expert=Sebastian_Sim
1. Addiction to Random Profits
Most newbie thought that they can make some quick profits by taking small profits in the Forex arena everyday. They enjoy the random rewards from the market, which may turn into an addiction. It is just like teaching your dog to perform a task and randomly rewarding it every time a task is done. In this way, there is no way your dog can know when it will be rewarded. As a result, there is no reason for your dog to quit doing the task, even without being rewarded for doing it.
2. Trading for Revenge
There is a common saying among scalpers; "Trade for today, not yesterday". Many newbie try to recoup their money back after their losses a few hours ago. They cannot swallow a loss or losses and became mesmerized with their fond memories of their past winnings. They keep thinking on how to win back their money, which tends to cloud their judgment on the market. They begin to fantasize opportunities in the market to enter a trade. This will eventually lead to their emotional attempt at revenge that is doomed to failure.
Tips to Scalp Efficiently
1. Determine the direction of the day by first looking at the daily chart.
2. Using candlestick studies, trendline or pivot points to enter a trade in the hourly chart.
3. For the above it must be use together with support and resistance.
4. Trading on continuous trend has a higher probability of success.
5. For contrarian trading, always enter at a better filled price or average your lot size to enter the trade
6. Scrape your trade if you do not feel comfortable after the point of entry or it takes too long for the trade to go in your direction.
7. Stop trading for the day if you have 3 losses in a row
Sebastian Sim
I'm a 31 year old Singaporean. Who started my trading journey since 2004. Now, I focus mainly in Stock Options, Forex and Unit Trusts(Mutual Funds) Investments. I've started a site The Trading Zone - a site about trading pyschology, Forex trading, investments and other topics that interests me from time to time.
http://sebastian-sim.blogspot.com
Article Source: http://EzineArticles.com/?expert=Sebastian_Sim
Forex Brokers & Online Trading
There is one important thing you will need to do before you start your Forex trading career. This is, you will need to set up an account with what is known in the trading world as a Forex Broker. Once you start your search for the perfect broker, you may feel there are too many of them who offer their services online. Deciding on a broker requires a little bit of research on your part. Experience and reputation are two good starting places for the selection process. do as much research as possible and ask in online forums for anyone who may have a first hand knowledge of the company.
A forex broker is an individual or a company that buys and sells the orders placed by the trader according to his decisions. The way brokers earn money is by charging a commission or a fee for their services.
You must consider that a serious forex broker will need to be associated with a large financial institution such as a bank in order to provide the amount of funds necessary for what is known as margin trading. In the United States a broker must be registered as a Futures Commission Merchant (FCM) and also with the Commodity Futures Trading Commission (CFTC). These credentials will ensure you have peace of mind, knowing that you have protection against any case of fraud and abusive trade practices.
What you’ll always want will be to find a broker who executes orders quickly and with minimum slippage. All reputable online forex brokers will offer automatic execution once you place your orders and will let you know their policies regarding slippage. A good broker should be able to tell you how much slippage can be expected in both normal and volatile markets.
You should always be skeptical when looking for a good forex broker. Always examine any suspicious claims made about high returns and low margins, especially if the broker company is vague about the risk involved in the transactions and are unwilling or unable to disclose financial information on the strength of their company. Low margins may sound competitive, but in reality this is because the broker is speculating against you and relying on the low margin to stop out your gains.
Learn these great Forex trading strategies and become a profitable trader.
=> http://www.1-forex.com
Article Source: http://EzineArticles.com/?expert=Adrian_Pablo
A forex broker is an individual or a company that buys and sells the orders placed by the trader according to his decisions. The way brokers earn money is by charging a commission or a fee for their services.
You must consider that a serious forex broker will need to be associated with a large financial institution such as a bank in order to provide the amount of funds necessary for what is known as margin trading. In the United States a broker must be registered as a Futures Commission Merchant (FCM) and also with the Commodity Futures Trading Commission (CFTC). These credentials will ensure you have peace of mind, knowing that you have protection against any case of fraud and abusive trade practices.
What you’ll always want will be to find a broker who executes orders quickly and with minimum slippage. All reputable online forex brokers will offer automatic execution once you place your orders and will let you know their policies regarding slippage. A good broker should be able to tell you how much slippage can be expected in both normal and volatile markets.
You should always be skeptical when looking for a good forex broker. Always examine any suspicious claims made about high returns and low margins, especially if the broker company is vague about the risk involved in the transactions and are unwilling or unable to disclose financial information on the strength of their company. Low margins may sound competitive, but in reality this is because the broker is speculating against you and relying on the low margin to stop out your gains.
Learn these great Forex trading strategies and become a profitable trader.
=> http://www.1-forex.com
Article Source: http://EzineArticles.com/?expert=Adrian_Pablo
Friday, October 26, 2007
A Short Explanation Of "Buying" and "Selling" In Forex Trading
These days everyone is talking about a new profitable activity called Forex trading and the great opportunity this activity represents for people willing to brake free from the corporate world and start working from home or any where else without losing their current lifestyle and even improving it.
Most experienced traders consider that the best and most profitable of the capital markets is the Forex market. For many years Forex trading was the sole domain of major banks, large financial institutions and countries central banks; for example the U.S. Federal Reserve Bank. But these days, thanks to the internet the market has been opened to everyone willing to learn the best techniques in forex trading and with the intention of making substantial profits as the institutions mentioned above that annually and consistently make pretty high profits from trading in the Foreign Exchange market.
You have many advantages when trading the forex markets, for example; you don’t have to worry about fees you may have to pay to your broker; there are also none of the usual fees to which futures and equity traders are accustomed to pay always; no exchange or clearing fees, no NFA or SEC fees.
The forex market has five major currencies: US Dollar, Japanese Yen, British Pound, Euro and the Swiss Franc. It is due to their great popularity in world’s commerce transactions and its high activity that these five currencies account for over 70% of North American trading. Of course there are other tradable currencies; they include the Canadian, Australian and New Zealand Dollars. These minor currencies account for 4% - 7% of the total market volume. Together, all this five majors and minors currencies constitute the backbone of the Forex market.
The concept of “Buying” in Forex refers to the acquisition of a particular currency pair to open a trade and “Selling short” refers to the selling of a particular currency to open a trade, i.e, just the opposite. When you Buy, you are expecting the price of the currency pair to increase with time, i.e., you buy cheap to sell high; which is easy to understand. In the case of Selling short, it looks a bit more complicated. Here the way to make money is to initially sell a currency pair that you think will lose value in a given period of time and then, once it happened, you will buy it back at the new price but now you can sell it at the previous greater price the currency had when you opened the trade, so you earn the difference in prices. It may seem kind of tricky when you are starting, but once you are in front of your trading station it will look much simpler.
Only a handful of Traders know how to trade the Forex Market and make a profit consistently. You can become one of them.
=> http://ForexTradingMachineGuide.googlepages.com
Article Source: http://EzineArticles.com/?expert=Adrian_Pablo
Most experienced traders consider that the best and most profitable of the capital markets is the Forex market. For many years Forex trading was the sole domain of major banks, large financial institutions and countries central banks; for example the U.S. Federal Reserve Bank. But these days, thanks to the internet the market has been opened to everyone willing to learn the best techniques in forex trading and with the intention of making substantial profits as the institutions mentioned above that annually and consistently make pretty high profits from trading in the Foreign Exchange market.
You have many advantages when trading the forex markets, for example; you don’t have to worry about fees you may have to pay to your broker; there are also none of the usual fees to which futures and equity traders are accustomed to pay always; no exchange or clearing fees, no NFA or SEC fees.
The forex market has five major currencies: US Dollar, Japanese Yen, British Pound, Euro and the Swiss Franc. It is due to their great popularity in world’s commerce transactions and its high activity that these five currencies account for over 70% of North American trading. Of course there are other tradable currencies; they include the Canadian, Australian and New Zealand Dollars. These minor currencies account for 4% - 7% of the total market volume. Together, all this five majors and minors currencies constitute the backbone of the Forex market.
The concept of “Buying” in Forex refers to the acquisition of a particular currency pair to open a trade and “Selling short” refers to the selling of a particular currency to open a trade, i.e, just the opposite. When you Buy, you are expecting the price of the currency pair to increase with time, i.e., you buy cheap to sell high; which is easy to understand. In the case of Selling short, it looks a bit more complicated. Here the way to make money is to initially sell a currency pair that you think will lose value in a given period of time and then, once it happened, you will buy it back at the new price but now you can sell it at the previous greater price the currency had when you opened the trade, so you earn the difference in prices. It may seem kind of tricky when you are starting, but once you are in front of your trading station it will look much simpler.
Only a handful of Traders know how to trade the Forex Market and make a profit consistently. You can become one of them.
=> http://ForexTradingMachineGuide.googlepages.com
Article Source: http://EzineArticles.com/?expert=Adrian_Pablo
Online Forex Trading
All you need is the Internet, some time - and you're doing online Forex trading. That is why Forex will rank the top choice for you if you are an Internet marketer and wish to create a newer source of income-to create personal wealth within a short period of time. If you are new to the world of technology, internet or online trading, it would be recommendable that you considered taking an online Forex trading class.
The market does not have one specific place of trade like many of the other markets do, for this reason alone is why Internet, fax, or telephone performs most of the trade. You can easily learn all the basics of trading for free by just doing a simple Internet search on the terms; Forex trading or currency trading. The Crucial Key For Internet Marketers Moving Into Trading: It is crucial that you get this understanding at the very onset, if you are an Internet marketer wishing to move into Forex trading, shares or commodities trading.
A computer with Internet access, a funded Forex account with foreign currency exchange broker, and a trading system should be sufficient to get things started. If you take a peek at some of the Forex chat forums on the Internet, you will see enthusiastic newbie traders making the same mistake. A computer with Internet access, a funded online account with foreign currency exchange broker, and a trading system should be sufficient to get things started.
With the ease of Internet access, transaction in Forex can be done in anytime regardless on your location. There are also many courses on the Internet, just be careful when choosing which ones to purchase. On the Internet, you can come across numerous games and simulations while learning the techniques involved in Forex trading.
In the Forex world, order execution is all-electronic and because you'll be trading via an Internet-based platform, instantaneous execution is routine. The market is open 24 hours, can be accessed anywhere in the world with an Internet connection, and can be the ultimate tool for building wealth.
Soli Katirhttp://www.solikatir.com/Forex-Enterprise.html Learn how to have a legit online business that puts real money into your bank account.
Article Source: http://EzineArticles.com/?expert=Soli_Kator
The market does not have one specific place of trade like many of the other markets do, for this reason alone is why Internet, fax, or telephone performs most of the trade. You can easily learn all the basics of trading for free by just doing a simple Internet search on the terms; Forex trading or currency trading. The Crucial Key For Internet Marketers Moving Into Trading: It is crucial that you get this understanding at the very onset, if you are an Internet marketer wishing to move into Forex trading, shares or commodities trading.
A computer with Internet access, a funded Forex account with foreign currency exchange broker, and a trading system should be sufficient to get things started. If you take a peek at some of the Forex chat forums on the Internet, you will see enthusiastic newbie traders making the same mistake. A computer with Internet access, a funded online account with foreign currency exchange broker, and a trading system should be sufficient to get things started.
With the ease of Internet access, transaction in Forex can be done in anytime regardless on your location. There are also many courses on the Internet, just be careful when choosing which ones to purchase. On the Internet, you can come across numerous games and simulations while learning the techniques involved in Forex trading.
In the Forex world, order execution is all-electronic and because you'll be trading via an Internet-based platform, instantaneous execution is routine. The market is open 24 hours, can be accessed anywhere in the world with an Internet connection, and can be the ultimate tool for building wealth.
Soli Katirhttp://www.solikatir.com/Forex-Enterprise.html Learn how to have a legit online business that puts real money into your bank account.
Article Source: http://EzineArticles.com/?expert=Soli_Kator
Advice for the Beginner Forex Trader
Trading the financial markets is one of the most competitive fields in existence today.
I recently received an email from an FX Power Course graduate who was doing all the things necessary to become a profitable trader. He was showing the right amount of patience in waiting for the solid setups. The risk:reward ratio used was acceptable for his style of trading and all of the trades were in the direction of the daily trend. He was keeping a log of his thoughts as he entered and exited a trade and also just trading one mini lot at a time.
So after six months of trading, he emailed to say that he was frustrated in that he was only a break even trader. In response, I emailed back congratulating him on his excellent results. After six months of live trading, this trader had not made any money and I was congratulating him. What was I thinking? I think that in any field it takes time to become a professional.
Nobody would think that you could become a professional golfer or a doctor after six months of preparation and trading is no different. It is difficult to become a consistently profitable trader and most new traders will quit before they reach that status. Whether they quit because of a lack of interest, running out of money to play with or just didn't realize how much work it was to become a trader, you have to pay proper respect to what it is you are trying to do.
You are competing against traders who have been profitable for years and work all day to maintain their edge. Becoming profitable is achievable, but we have to earn that right. We want to start out easy by getting a feel for trading and that means practicing in a demo account first. However, the real lessons start when you open a live account and begin to trade you own money. When there is real money on the line, a 10 pip move against you feels different than it would in a demo account.
This is why we should start out small, trading one mini lot at a time until we feel comfortable about what we are doing. With time, you will find that trading with real money becomes easier, but you should learn to walk before you start trying to run with the professionals. Then after six months of live trading, if you find yourself at break even, pat yourself on the back as you are on your way to being a profitable trader.
Tom Long is an instructor of http://www.fxcm.com, a forex trading training site
Article Source: http://EzineArticles.com/?expert=Tom_Long
I recently received an email from an FX Power Course graduate who was doing all the things necessary to become a profitable trader. He was showing the right amount of patience in waiting for the solid setups. The risk:reward ratio used was acceptable for his style of trading and all of the trades were in the direction of the daily trend. He was keeping a log of his thoughts as he entered and exited a trade and also just trading one mini lot at a time.
So after six months of trading, he emailed to say that he was frustrated in that he was only a break even trader. In response, I emailed back congratulating him on his excellent results. After six months of live trading, this trader had not made any money and I was congratulating him. What was I thinking? I think that in any field it takes time to become a professional.
Nobody would think that you could become a professional golfer or a doctor after six months of preparation and trading is no different. It is difficult to become a consistently profitable trader and most new traders will quit before they reach that status. Whether they quit because of a lack of interest, running out of money to play with or just didn't realize how much work it was to become a trader, you have to pay proper respect to what it is you are trying to do.
You are competing against traders who have been profitable for years and work all day to maintain their edge. Becoming profitable is achievable, but we have to earn that right. We want to start out easy by getting a feel for trading and that means practicing in a demo account first. However, the real lessons start when you open a live account and begin to trade you own money. When there is real money on the line, a 10 pip move against you feels different than it would in a demo account.
This is why we should start out small, trading one mini lot at a time until we feel comfortable about what we are doing. With time, you will find that trading with real money becomes easier, but you should learn to walk before you start trying to run with the professionals. Then after six months of live trading, if you find yourself at break even, pat yourself on the back as you are on your way to being a profitable trader.
Tom Long is an instructor of http://www.fxcm.com, a forex trading training site
Article Source: http://EzineArticles.com/?expert=Tom_Long
The Key To Success in Online Forex Trading
In our highly connected world today, trading the foreign exchange (forex) market over the internet is one of the coolest ways in the world that I know of to make a living.
Anybody who tells you that forex trading is a quick and easy path to riches either A: is a total moron and is trying to make a quick buck selling erroneous information, or B: has a vested interest in seeing you fail as a trader.
However, anybody who tells you that it is impossible to make alot of money through forex trading is also sorely mistaken. Yes, it is possible to make a large, almost obsenely large, amount of money through trading the forex market using only a laptop, but it is not easy to get to a point where you can consistently place profitable trades.
I could go on and on about how sucessful forex trading takes time, education, emotional control, and experience, but there is one single thing that I have found is much more important than all of these things if you want to have a successful forex career. And that one thing is...
.......... (Wait for it) ..........
Your MINDSET, and how you perceive trading the forex market.
This is the hardest part for most people to truly understand and use with their own trading, but if you can fully harness and implement the following information into your forex trading, you will experience unprecedented success and you will become one of those people who can travel anywhere in the world and answer to nobody.
(Just as a sidenote, if you do get to this point, I recommend checking out something called an 'economic citizenship program,' where you can become a citizen of a place like Panama by investing in certain organizations. You can get a new passport so that you can go anywhere in the world, anytime you want, and no longer answer to a draconian government that seeks hegemonic control over its citizens.)
The problem is... most people who have had difficulty with their forex trading view the market and their trading platform only as a way to make money, and they become emotionally attached to the money in their trading account and subsequently, each trade that they make with this money.
The key to success in online forex trading is to view your trading platform as a GAME that you play, where the objective is to collect or capture pips. The more pips you gather, the better you are at this forex game.
Now this is easy to say, but it can be different when you are really at your computer making those trades. The one thing I must empahsize is that when you adopt this new mentality and you view forex as only a 'pip collecting game,' the biggest change that you make is that you are now completely emotionally detached from your trading. For this reason, you can view your winning or losing trades from an objective, outside perspective, and it will be easier for you to devise a winning strategy since you are no longer blinded by emotion.
---Exercises For Developing The Proper Forex Mindset---
There are two things that I recommend doing if you want to slowly change your perception to where forex trading is nothing more than a game where you win by getting pips (and few games in the world can be as profitable as this one).
First, I will introduce to you something that I call 'risk capital.' In short, risk capital is money that you would like to grow, but if you lost it then it would not have a big impact on your financial situation. You want to make sure that the only money that you ever put into a live trading account is risk capital, which is just extra disposable income that you do not need to pay the bills.
Second, you want to make extensive use of trading demo accounts. If you already have a broker or a trading platform that you prefer and are comfortable with, the best thing to do is to open at least one demo account with this same broker.
As you should see, trading your demo account will look and feel EXACTLY the same way as your live account will. The only difference it is not big deal if you lose money in your demo account, since it isn't real. What you want to do is get to the same point after trading your demo account that you feel the same way about your live trading account, where it is no big deal if you lose money.
Spend enough time trading your demo account on the same platform that you trade your live account on, and your subconscious mind and a part of your brain called the visual cortex will begin to associate seeing this forex trading platform with 'Oh, a demo account. No big deal, its just fake money after all.'
This is where you want to get, and it will become nothing more than a game for you. It just so happens, though, that this game will fund your next month long trip to Monaco, and will elevate you to the status of a High-Net Worth Individual (net worth exceeding $30 million USD) and beyond. I suppose it is ironic that the less you care about how much money you are making, the more you are actually positioned to make.
Godspeed.
My name is Marcus Masters, and I hope you can use this and other information to make a ridiculous amount of money in forex. Read more about successful forex trading at http://www.Forex-Prosperity.com
Article Source: http://EzineArticles.com/?expert=Marcus_Masters
Anybody who tells you that forex trading is a quick and easy path to riches either A: is a total moron and is trying to make a quick buck selling erroneous information, or B: has a vested interest in seeing you fail as a trader.
However, anybody who tells you that it is impossible to make alot of money through forex trading is also sorely mistaken. Yes, it is possible to make a large, almost obsenely large, amount of money through trading the forex market using only a laptop, but it is not easy to get to a point where you can consistently place profitable trades.
I could go on and on about how sucessful forex trading takes time, education, emotional control, and experience, but there is one single thing that I have found is much more important than all of these things if you want to have a successful forex career. And that one thing is...
.......... (Wait for it) ..........
Your MINDSET, and how you perceive trading the forex market.
This is the hardest part for most people to truly understand and use with their own trading, but if you can fully harness and implement the following information into your forex trading, you will experience unprecedented success and you will become one of those people who can travel anywhere in the world and answer to nobody.
(Just as a sidenote, if you do get to this point, I recommend checking out something called an 'economic citizenship program,' where you can become a citizen of a place like Panama by investing in certain organizations. You can get a new passport so that you can go anywhere in the world, anytime you want, and no longer answer to a draconian government that seeks hegemonic control over its citizens.)
The problem is... most people who have had difficulty with their forex trading view the market and their trading platform only as a way to make money, and they become emotionally attached to the money in their trading account and subsequently, each trade that they make with this money.
The key to success in online forex trading is to view your trading platform as a GAME that you play, where the objective is to collect or capture pips. The more pips you gather, the better you are at this forex game.
Now this is easy to say, but it can be different when you are really at your computer making those trades. The one thing I must empahsize is that when you adopt this new mentality and you view forex as only a 'pip collecting game,' the biggest change that you make is that you are now completely emotionally detached from your trading. For this reason, you can view your winning or losing trades from an objective, outside perspective, and it will be easier for you to devise a winning strategy since you are no longer blinded by emotion.
---Exercises For Developing The Proper Forex Mindset---
There are two things that I recommend doing if you want to slowly change your perception to where forex trading is nothing more than a game where you win by getting pips (and few games in the world can be as profitable as this one).
First, I will introduce to you something that I call 'risk capital.' In short, risk capital is money that you would like to grow, but if you lost it then it would not have a big impact on your financial situation. You want to make sure that the only money that you ever put into a live trading account is risk capital, which is just extra disposable income that you do not need to pay the bills.
Second, you want to make extensive use of trading demo accounts. If you already have a broker or a trading platform that you prefer and are comfortable with, the best thing to do is to open at least one demo account with this same broker.
As you should see, trading your demo account will look and feel EXACTLY the same way as your live account will. The only difference it is not big deal if you lose money in your demo account, since it isn't real. What you want to do is get to the same point after trading your demo account that you feel the same way about your live trading account, where it is no big deal if you lose money.
Spend enough time trading your demo account on the same platform that you trade your live account on, and your subconscious mind and a part of your brain called the visual cortex will begin to associate seeing this forex trading platform with 'Oh, a demo account. No big deal, its just fake money after all.'
This is where you want to get, and it will become nothing more than a game for you. It just so happens, though, that this game will fund your next month long trip to Monaco, and will elevate you to the status of a High-Net Worth Individual (net worth exceeding $30 million USD) and beyond. I suppose it is ironic that the less you care about how much money you are making, the more you are actually positioned to make.
Godspeed.
My name is Marcus Masters, and I hope you can use this and other information to make a ridiculous amount of money in forex. Read more about successful forex trading at http://www.Forex-Prosperity.com
Article Source: http://EzineArticles.com/?expert=Marcus_Masters
Basics of Forex Trading
This article gives an introduction about the basics of trading Forex online, a brief explanation of the markets and the major benefits of trading forex online. Foreign exchange or forex are all terms used to describe the trading of the world's many currencies. The forex market is the largest market in the world, with trades amounting to more than 1.5 trillion dollars every day. The foreign exchange market has no central clearing house or exchange and is considered an over-the-counter (OTC) market. Forex traders are generating incredible wealth day after day from the comfort of their home. Foreign exchange is normally traded on margin. A relatively small deposit can control much larger positions in the market.
Forex trading takes place directly between the two counterparts necessary to make a transaction, whether over the telephone or on electronic brokerage networks all over the world. This is a trade that includes simultaneous buying of one currency and selling of another one. There are two reasons to buy and sell currencies. About 5% of daily turnover is from companies, and governments that buy or sell products and services in a foreign country must convert profits made in foreign currencies into their domestic currency. The other 95% is trading for profit, or speculation. The currency combination used in the trade is called a cross (for example, the Euro/US Dollar, or the GB Pound/Japanese Yen.).
The market is called the spot market because trades are settled immediately, or "on the spot". One of the major benefits of trading forex is the opportunity to trade 24 hours a day from Sunday evening (20:00 GMT) to Friday evening (22:00 GMT). Unlike stock trading, currency trading on the Forex market is not cut short at the "close" of each day's trading. The benefit of Forex being a 24 hour a day market is that there are little or no gaps in the market, meaning there is no chance that prices will close one day and reopen the next day. The fact that forex is often traded without commissions makes it very attractive as an investment opportunity for investors who want to deal on a frequent basis.
Since the market is always moving, there are always trading opportunities, whether a currency is strengthening or weakening in relation to another currency. When you trade currencies, they literally work against each other. Different currencies pay different interest rates. The interest rate differential doesn't usually affect trade considerations unless you plan on holding a position with a large differential for a long period of time. This is one of the main driving forces behind foreign exchange trends. You can have both a positive and a negative interest rate differential, so it may work for or against you when you make a trade. It is inherently attractive to be a buyer of a currency that pays a high interest rate while being short a currency that has a low interest rate. Fortunately, there are no daily limits on foreign exchange trading and no restrictions on trading hours other than the weekend. This means that there will nearly always be an opportunity to react to moves in the main currency markets and a low risk of getting caught without the opportunity of getting out.
A forex trading method with a high winning percentage is rewarding psychologically, keeps your morale high and is enjoyable to trade. A string of profits will build your confidence. Losses have to be kept small and wins should be larger than losses. You can make big money working only a few hours a day or week on your computer. You can trade from anywhere in the world where there is an internet connection.
Andrew Daigle is the owner, creator and author of many successful websites including ForexBoost, a free Forex educational site to learn Forex trading strategies and a ForexBoost blog for keeping online Forex trading records.
Article Source: http://EzineArticles.com/?expert=Andrew_Daigle
Forex trading takes place directly between the two counterparts necessary to make a transaction, whether over the telephone or on electronic brokerage networks all over the world. This is a trade that includes simultaneous buying of one currency and selling of another one. There are two reasons to buy and sell currencies. About 5% of daily turnover is from companies, and governments that buy or sell products and services in a foreign country must convert profits made in foreign currencies into their domestic currency. The other 95% is trading for profit, or speculation. The currency combination used in the trade is called a cross (for example, the Euro/US Dollar, or the GB Pound/Japanese Yen.).
The market is called the spot market because trades are settled immediately, or "on the spot". One of the major benefits of trading forex is the opportunity to trade 24 hours a day from Sunday evening (20:00 GMT) to Friday evening (22:00 GMT). Unlike stock trading, currency trading on the Forex market is not cut short at the "close" of each day's trading. The benefit of Forex being a 24 hour a day market is that there are little or no gaps in the market, meaning there is no chance that prices will close one day and reopen the next day. The fact that forex is often traded without commissions makes it very attractive as an investment opportunity for investors who want to deal on a frequent basis.
Since the market is always moving, there are always trading opportunities, whether a currency is strengthening or weakening in relation to another currency. When you trade currencies, they literally work against each other. Different currencies pay different interest rates. The interest rate differential doesn't usually affect trade considerations unless you plan on holding a position with a large differential for a long period of time. This is one of the main driving forces behind foreign exchange trends. You can have both a positive and a negative interest rate differential, so it may work for or against you when you make a trade. It is inherently attractive to be a buyer of a currency that pays a high interest rate while being short a currency that has a low interest rate. Fortunately, there are no daily limits on foreign exchange trading and no restrictions on trading hours other than the weekend. This means that there will nearly always be an opportunity to react to moves in the main currency markets and a low risk of getting caught without the opportunity of getting out.
A forex trading method with a high winning percentage is rewarding psychologically, keeps your morale high and is enjoyable to trade. A string of profits will build your confidence. Losses have to be kept small and wins should be larger than losses. You can make big money working only a few hours a day or week on your computer. You can trade from anywhere in the world where there is an internet connection.
Andrew Daigle is the owner, creator and author of many successful websites including ForexBoost, a free Forex educational site to learn Forex trading strategies and a ForexBoost blog for keeping online Forex trading records.
Article Source: http://EzineArticles.com/?expert=Andrew_Daigle
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