Forex trading is easy to learn yet 95% of traders lose money. The reason for this is that forex trading is more about mindset than method. It's the mindset of the millionaire traders that sets them apart from the losing majority. In this article we will look at how to get the right mindset for currency trading success.
The minority of traders that make really big gains all make their money with different methods - but they all have a certain trait that set them apart.
Let's take a look at them.
Success comes from Within
If you think you can follow someone else and be successful your wrong - success comes from within and to be successful you need to accept responsibility for your destiny. You need to have a desire to succeed and a willingness to work smart to get the knowledge you need.
Now you need to understand this key equation:
Understanding = Confidence = Discipline
Most traders don't understand that - if you try and follow the herd, the news, a guru or mentor you will never have the inner belief in the trades. If you understand what you are doing, you will have confidence - and confidence is required to apply your system with discipline through losing periods.
Keep in mind this simple equation!
Simple Forex Trading Method + Applied with discipline = Forex success
If you don't have the confidence to apply your method with discipline, you have no system at all.
There are no secrets to forex trading that many people would have you believe - ALL The knowledge you need is available for you to learn but you need to learn the RIGHT knowledge and then apply it with confidence and discipline.
Most forex traders then that discipline is easy to acquire but it's not - as you are confronted with total responsibility for your actions.
You have to confront an all powerful being (the market) and only you can be wrong and it's all always right. You have to have the ability to create your own rules and have the discipline to apply them.
In 1983 legendary Richard Dennis taught a group of people who had never traded before a system in just 14 days and sent them off to trade.
The result?
They made over $100 million dollars in four years.
These traders were all taught the same system - but some scored far bigger gains than others and this is purely mindset as they had all been taught the same method.
You can learn forex trading and you can adopt the mindset of the millionaire traders but you need to do your homework, gain the right knowledge, to instill confidence and discipline will follow.
The big difference between the losing majority and the elite traders is a difference of mindset.
PROFESSIONAL FOREX TRADING COURSE and FREE ESSENTIAL TRADER PDFS
For free 2 x trading Pdf's with 90 of pages of essential info and an exclusive Currency Trading Course visit our website at: http://www.learncurrencytradingonline.com/index.html
Article Source: http://EzineArticles.com/?expert=Kelly_Price
Sunday, December 30, 2007
Mini Forex Trading - Profiting From Forex Trading Without A Lot of Cash
Mini forex trading is a way for people without a lot of money to trade the forex. It's also ideal for fthose brand new to forex trading.
Mini forex trading allows those new to forex trading to get a feel for it wihtout risking the amount of capital you would normally use when trading the forex.
So how can mini forex trading help you to make trading profits?
The reason for the 'mini' is obvious. The forex trading contracts are much smaller than the typical forex trading contracts. Mini contracts are about one tenth the size of a typical forex trading contract.
Mini forex trading is an advisable way to start trading the forex if you are staring with a small sum of money. You can test various forex trading systems without a lot o risk, keep good records on your trades and the result, and refine your trading techniques.
Then, as your trading improves and you build your portfolio, you can graduate from mini forex trading to larger, more typical forex trading contracts with confidence that you have a profitable trading system in place.
You can open a mini forex trading account with a lot less money, usually around $300 instead of the thousands required for a typical forex account. The high leverage available to forex traders still applies but you are obviously risking a lot less money in a mini forex account.
Keep in mind, your money is just as much at risk in a mini forex trading account as it is in a regular account. You just don't have as much at risk to lose. But you can still lose it all, and then some, due to the leverage options available.
This means that you need a trading system in place and you must adhere to that system with iron fisted discipline and not let emotion get in the way and cause you more problems and headaches.
Even in a mini forex account, you still need to know what you are doing and be familiar with various forex trading ideas and systems such as trade signals, proper chart points, targets, stop-loss and more.
With the right strategies in place, mini forex trading can be quite profitable but you need to do your homework before risking your money.
Learn more about forex trading tips and tactics for more profitable currency trades at http://www.forextradingtactics.com where Richard Pfaeltzer, an investor and freelance investing and success writer, contributes articles on forex and currency trading
Article Source: http://EzineArticles.com/?expert=Richard_Pfaeltzer
Mini forex trading allows those new to forex trading to get a feel for it wihtout risking the amount of capital you would normally use when trading the forex.
So how can mini forex trading help you to make trading profits?
The reason for the 'mini' is obvious. The forex trading contracts are much smaller than the typical forex trading contracts. Mini contracts are about one tenth the size of a typical forex trading contract.
Mini forex trading is an advisable way to start trading the forex if you are staring with a small sum of money. You can test various forex trading systems without a lot o risk, keep good records on your trades and the result, and refine your trading techniques.
Then, as your trading improves and you build your portfolio, you can graduate from mini forex trading to larger, more typical forex trading contracts with confidence that you have a profitable trading system in place.
You can open a mini forex trading account with a lot less money, usually around $300 instead of the thousands required for a typical forex account. The high leverage available to forex traders still applies but you are obviously risking a lot less money in a mini forex account.
Keep in mind, your money is just as much at risk in a mini forex trading account as it is in a regular account. You just don't have as much at risk to lose. But you can still lose it all, and then some, due to the leverage options available.
This means that you need a trading system in place and you must adhere to that system with iron fisted discipline and not let emotion get in the way and cause you more problems and headaches.
Even in a mini forex account, you still need to know what you are doing and be familiar with various forex trading ideas and systems such as trade signals, proper chart points, targets, stop-loss and more.
With the right strategies in place, mini forex trading can be quite profitable but you need to do your homework before risking your money.
Learn more about forex trading tips and tactics for more profitable currency trades at http://www.forextradingtactics.com where Richard Pfaeltzer, an investor and freelance investing and success writer, contributes articles on forex and currency trading
Article Source: http://EzineArticles.com/?expert=Richard_Pfaeltzer
Wednesday, December 26, 2007
Forex Market Offers Opportunity And Information
The forex market is what is called an international exchange currency market, where currencies are exchanged on a daily basis. There are five forex market centers around the world – New York, London, Tokyo, Frankfurt and Zurich. One does not need to be on the trading floor, so to speak to be involved in the forex market. Today, forex trading can be done from home on a computer.
The forex market itself is basically a worldwide connection of traders, who make investment moves based on the price of currencies, or their values relative to other currencies. These traders constantly negotiate prices with other traders resulting in the fluctuation or movement of a currency’s value. The value of a currency on the forex market also corresponds with supply. If there is greater demand for the Euro, let’s say, then there will be less supply of it on the forex market, which means, in time, it will make a Euro more valuable compared to let’s say the dollar. In short, in this forex market situation, one Euro would yield more dollars, subsequently weakening the dollar as well. Analyzing the forex market’s fluctuations allows investors to make predictions on how a currency will move in relation to another currency. They then can make predictions and buy and sell currency accordingly.
While some people view the forex market as a place to see what their exchange rate will be when they travel abroad, others view it as an opportunity to make great gains in their financial planning and future.
About The Author
Jay Monclif is an specialist in forex trading. He helped many entrepreneurs to get more for their money at http://www.forexadvise.info . Get more updated daily articles about Forex in his Broker forex site http://www.forexadvise.info.
The forex market itself is basically a worldwide connection of traders, who make investment moves based on the price of currencies, or their values relative to other currencies. These traders constantly negotiate prices with other traders resulting in the fluctuation or movement of a currency’s value. The value of a currency on the forex market also corresponds with supply. If there is greater demand for the Euro, let’s say, then there will be less supply of it on the forex market, which means, in time, it will make a Euro more valuable compared to let’s say the dollar. In short, in this forex market situation, one Euro would yield more dollars, subsequently weakening the dollar as well. Analyzing the forex market’s fluctuations allows investors to make predictions on how a currency will move in relation to another currency. They then can make predictions and buy and sell currency accordingly.
While some people view the forex market as a place to see what their exchange rate will be when they travel abroad, others view it as an opportunity to make great gains in their financial planning and future.
About The Author
Jay Monclif is an specialist in forex trading. He helped many entrepreneurs to get more for their money at http://www.forexadvise.info . Get more updated daily articles about Forex in his Broker forex site http://www.forexadvise.info.
Explosive Profits: 7 Reasons to Trade Forex
There are many money-making opportunities out there and we’ve been involved with quite a few, namely property marketing, web development, residential construction security, multi-level marketing businesses etc.
We’ve come to a few conclusions with the help of some well-known properity coaches.
Often people with the income they desire don’t have the time to enjoy it. Those that have time don’t often have money. You don’t have to sacrifice your life-style to earn an above-average income. If you focus on the Forex for a few months you can make that dream a reality and create time and money to do what you REALLY want.
To earn a living money is given in exchange for a product or service rendered. It needs to be sold continuously otherwise your income stops abruptly unless it’s a repeat type of product or service.
Money is a medium of exchange. There’s no magical formula to possess it, you need to exchange something of value for it.
What if, you could have access to thousands of customers who are ready, willing and able to buy from you whenever you wanted? Wouldn’t it be great to avoid any hassles like money collection problems (just had a delayed payment from my web business), keeping difficult customers happy (we all know what that’s like), competition stealing your business without providing the same value etc.
All that is possible with Forex. You can also trade from anywhere. Take your laptop with you, find an internet connection and away you go.
Another advantage is that you don’t need experience to get started. Get a traditionally job involves accumulating specialized experience, having a well-polished resume and having the right contacts. With the right training course, you can get started straight away.
Here’s 7 more reasons to trade Forex:
1. It never closes. It’s open around the clock, worldwide. Trading positions open at Monday 7am, New Zealand time and close 5pm New York time on Friday. During this time, you can enter or exit the market whenever you like. It’s a continuous electronic currency exchange. This is great because you can trade whenever you have spare time.
2. Leverage. Standard $100 000 currency lots can be traded with as little as $1000. This is mainly because of the ease with which you can buy and sell, some brokers will leverage up to 200 times, so with $100 you can control a 200 000 unit currency position. It’s the best use of trading capital around, even banks lending on property investments don’t come close.
3. Accurately predict the outcomes. Currency prices generally repeat themselves in predictable cycles so you can see what the trends are. ‘Technical Analysis’ helps to see these trends and profit from them.
4. Low Transaction Cost. In other words, you mistakes won’t cost you a fortune. Good brokers won’ charge commissions to trade or maintain an account even if you have a mini account and trade small volumes.
5. Unlimited Earning Potential. Forex has a daily trading volume of over 1.5 trillion, the largest financial market in the world. It dwarfs the equities market (50 billion daily) and the futures market (30 billion).
6. You can make money in any market conditions. Each market is one currency against another, so when you buy in one, you’re selling in another so there’s no biase towards either currency moving up or down. This means it’s up to you to choose which currency to buy or sell with. Yu can make money going up or down.
7. Market transparency. This is an advantage in any business or trading environment. It means you can manage risk and execute orders within seconds. It’s highly efficient and allows you to avoid unexpected ‘surprises’.
I hope you’re now convinced that Forex is the best investment and income opportunity around.
To continue your journey of Forex Trading success and achieve enormous profits, visit http://www.wealthyforex.com. You’ll receive all of the resources you need to positively impact your future.
About The Author
Sorna Devadas
Born in Lithgow, Australia, completed a Bachelor of Computer Engineering Degree in 2001. Started building a website development business and after 3 years, now focuses on building own websites that make money. Love people, loves life and loves to help other people prosper. For complete resources for beginners and advanced internet marketers to profit online, visit http://www.internetwealthmentor.com.
dropv2003@yahoo.co.uk
We’ve come to a few conclusions with the help of some well-known properity coaches.
Often people with the income they desire don’t have the time to enjoy it. Those that have time don’t often have money. You don’t have to sacrifice your life-style to earn an above-average income. If you focus on the Forex for a few months you can make that dream a reality and create time and money to do what you REALLY want.
To earn a living money is given in exchange for a product or service rendered. It needs to be sold continuously otherwise your income stops abruptly unless it’s a repeat type of product or service.
Money is a medium of exchange. There’s no magical formula to possess it, you need to exchange something of value for it.
What if, you could have access to thousands of customers who are ready, willing and able to buy from you whenever you wanted? Wouldn’t it be great to avoid any hassles like money collection problems (just had a delayed payment from my web business), keeping difficult customers happy (we all know what that’s like), competition stealing your business without providing the same value etc.
All that is possible with Forex. You can also trade from anywhere. Take your laptop with you, find an internet connection and away you go.
Another advantage is that you don’t need experience to get started. Get a traditionally job involves accumulating specialized experience, having a well-polished resume and having the right contacts. With the right training course, you can get started straight away.
Here’s 7 more reasons to trade Forex:
1. It never closes. It’s open around the clock, worldwide. Trading positions open at Monday 7am, New Zealand time and close 5pm New York time on Friday. During this time, you can enter or exit the market whenever you like. It’s a continuous electronic currency exchange. This is great because you can trade whenever you have spare time.
2. Leverage. Standard $100 000 currency lots can be traded with as little as $1000. This is mainly because of the ease with which you can buy and sell, some brokers will leverage up to 200 times, so with $100 you can control a 200 000 unit currency position. It’s the best use of trading capital around, even banks lending on property investments don’t come close.
3. Accurately predict the outcomes. Currency prices generally repeat themselves in predictable cycles so you can see what the trends are. ‘Technical Analysis’ helps to see these trends and profit from them.
4. Low Transaction Cost. In other words, you mistakes won’t cost you a fortune. Good brokers won’ charge commissions to trade or maintain an account even if you have a mini account and trade small volumes.
5. Unlimited Earning Potential. Forex has a daily trading volume of over 1.5 trillion, the largest financial market in the world. It dwarfs the equities market (50 billion daily) and the futures market (30 billion).
6. You can make money in any market conditions. Each market is one currency against another, so when you buy in one, you’re selling in another so there’s no biase towards either currency moving up or down. This means it’s up to you to choose which currency to buy or sell with. Yu can make money going up or down.
7. Market transparency. This is an advantage in any business or trading environment. It means you can manage risk and execute orders within seconds. It’s highly efficient and allows you to avoid unexpected ‘surprises’.
I hope you’re now convinced that Forex is the best investment and income opportunity around.
To continue your journey of Forex Trading success and achieve enormous profits, visit http://www.wealthyforex.com. You’ll receive all of the resources you need to positively impact your future.
About The Author
Sorna Devadas
Born in Lithgow, Australia, completed a Bachelor of Computer Engineering Degree in 2001. Started building a website development business and after 3 years, now focuses on building own websites that make money. Love people, loves life and loves to help other people prosper. For complete resources for beginners and advanced internet marketers to profit online, visit http://www.internetwealthmentor.com.
dropv2003@yahoo.co.uk
Tuesday, December 25, 2007
Forex Avenue: The Road to Riches
In my continuing quest to provide visitors of my site with a large amount of options to chose from when considering working from home I have done some research on Forex trading. I first learned of Forex trading while pursuing my MBA program. For those of you who have never heard of this, Forex trading is the exchange of foreign currency.
I know I would have never even know this was an option for making money had I not found out in class. Most of the really big corporations have departments of people that do this for a living because it can be very lucrative if done correctly. The best news I have learned about this process of exchanging currencies is that many of the websites that you can sign up with to do this offer free trial accounts to help you learn before you invest your money into trying it. You won’t make any money in the trial accounts if you do well, it is just pretend money essentially but with the real market conditions. If you do well in the trial account you will know if this is something you want to try on your own.
Benefits to Forex trading are that is can be done 24/7 whereas the stock market is a business hours only exchange. It is 24/7 because it is done with countries around the world so clearly there are countries that are awake and working while we sleep. Another benefit is you are in control of the trading on your account. You do not need to hire a licensed broker to make your trades and charge you fees. Along those same lines, anyone who does any investing most likely knows that some funds require you to own then for a certain period of time or pay early withdrawal fees. You do not need to concern yourself with this either. One last benefit that I would like to point out is the fact that Forex is not really subject to the same kinds of swings in the market that stocks are subject to. Of course if you always buy and sell the same currencies then there will be market swings. But, because there are hundreds of currencies out there, there is always going to be something for you to make money on because while one currency is up in value another one is down and vice versa.
There are many resources available to someone interested in becoming involved in this type of training. The Federal Reserve Bank’s website is just one example of the information available, http://www.ny.frb.org/markets/foreignex.html. Here is another article that you will find helpful in starting out in this field. http://www.forex.com/pdf/pro2.pdf . I have also included one of the sites that does offer a free lesson. http://www.shareasale.com/r.cfm?b=44910&u=155496&m=8912 .
While there are many benefits to this type of training, as I mentioned above, there are certainly risks involved as well. There are risks with exchange rates, central banks in foreign countries, and risks involving interest rates and credit. Forex is quickly becoming a popular way to help diversify your investment portfolio. If you are good with understanding investing concepts and enjoy doing it this may be the home business opportunity for you. Just do your research and try to find one of the sites offering the free trial account to practice with and you are well on your way down the Road to Riches.
About The Author
Scott Bianchi operates www.best-internet-bargains.com. He writes on a variety of topics. If you would like to be added to his distribution list for his new articles when they are published just send an email to articles@bestinternetbargains.com.
Forex Trading: Calculating Profit And Loss In Foreign Currency Trading
The foreign exchange market, or Forex market, is an around-the-clock cash market where the currencies of nations are bought and sold. Forex trading is always done in currency pairs. For example, you buy Euros, paying with U.S. Dollars, or you sell Canadian Dollars for Japanese Yen. The value of your Forex investment increases or decreases because of changes in the currency exchange rate or Forex rate. These changes can occur at any time, and often result from economic and political events. Using a hypothetical Forex investment, this article shows you how to calculate profit and loss in Forex trading.
To understand how the exchange rate can affect the value of your Forex investment, you need to learn how to read a Forex quote. Forex quotes are always expressed in pairs. In the following example, your pair of currencies are the U.S. Dollar (USD) and the Canadian Dollar (CAD). The Forex quote, USD/CAD = 170.50, means that one U.S. Dollar is equal to 170.50 Canadian Dollars. The currency to the left of the "/" (USD in this example) is referred to as base currency and its value is always 1. The currency to the right of the "/" (CAD in this example) is referred to as the counter currency. In this example, one USD can buy 170.50 CAD, because it is the stronger of the two currencies. The U.S. Dollar is regarded as the central currency of the Forex market, and it is always treated as the base currency in any Forex quote where it is one of the pairs.
Let's go now to our hypothetical Forex investment to show how you can profit or come up short in Forex trading. In this example, your pair of currencies are the U.S. Dollar and the Euro. The Forex rate of EUR/USD on August 26, 2003 was 1.0857, which means that one U.S. Dollar was equal to 1.0857 Euros, and was the weaker of the two currencies. If you had bought 1,000 Euros on that date, you would have paid $1,085.70.
One year later, the Forex rate of EUR/USD was 1.2083, which means that the value of the Euro increased in relation to the USD. If you had sold the 1,000 Euros one year later, you would have received $1,208.30, which is $122.60 more than what you had started with one year earlier.
Conversely, if the Forex rate one year later had been EUR/USD = 1.0576, the value of the Euro would have weakened in relation to the U.S. Dollar. If you had sold the 1,000 Euros at this Forex rate, you would have received $1,057.60, which is $28.10 less than what you had started out with one year earlier.
As with stocks and mutual funds, there is risk in Forex trading. The risk results from fluctuations in the currency exchange market. Investments with a low level of risk (for example, long-term government bonds) often have a low return. Investments with a higher level of risk (for example, Forex trading) can have a higher return. To achieve your short-term and long-term financial goals, you need to balance security and risk to the comfort level that works best for you.
To understand how the exchange rate can affect the value of your Forex investment, you need to learn how to read a Forex quote. Forex quotes are always expressed in pairs. In the following example, your pair of currencies are the U.S. Dollar (USD) and the Canadian Dollar (CAD). The Forex quote, USD/CAD = 170.50, means that one U.S. Dollar is equal to 170.50 Canadian Dollars. The currency to the left of the "/" (USD in this example) is referred to as base currency and its value is always 1. The currency to the right of the "/" (CAD in this example) is referred to as the counter currency. In this example, one USD can buy 170.50 CAD, because it is the stronger of the two currencies. The U.S. Dollar is regarded as the central currency of the Forex market, and it is always treated as the base currency in any Forex quote where it is one of the pairs.
Let's go now to our hypothetical Forex investment to show how you can profit or come up short in Forex trading. In this example, your pair of currencies are the U.S. Dollar and the Euro. The Forex rate of EUR/USD on August 26, 2003 was 1.0857, which means that one U.S. Dollar was equal to 1.0857 Euros, and was the weaker of the two currencies. If you had bought 1,000 Euros on that date, you would have paid $1,085.70.
One year later, the Forex rate of EUR/USD was 1.2083, which means that the value of the Euro increased in relation to the USD. If you had sold the 1,000 Euros one year later, you would have received $1,208.30, which is $122.60 more than what you had started with one year earlier.
Conversely, if the Forex rate one year later had been EUR/USD = 1.0576, the value of the Euro would have weakened in relation to the U.S. Dollar. If you had sold the 1,000 Euros at this Forex rate, you would have received $1,057.60, which is $28.10 less than what you had started out with one year earlier.
As with stocks and mutual funds, there is risk in Forex trading. The risk results from fluctuations in the currency exchange market. Investments with a low level of risk (for example, long-term government bonds) often have a low return. Investments with a higher level of risk (for example, Forex trading) can have a higher return. To achieve your short-term and long-term financial goals, you need to balance security and risk to the comfort level that works best for you.
About The Author
Gregory DeVictor is a consultant who has been developing and marketing web sites since 1999. Learn what you need to know to get started in Forex trading and how to develop a successful Forex trading system at: http://www.forex-trading-system.nameMonday, December 24, 2007
Forex Brokers - The Perfect Service for Novice Traders
If you are considering trading with a forex broker, here is news of a service that is great for seeing if you have what it takes and is much more realistic than a demo account. If you are interested in trading and worried about the risk, then these accounts look a great way to get started.
A protected account introduces potential traders to the lucrative world of currency trading - but unlike a demo account, allows them to feel what trading is really like with limited risk.
For a set period they get to trade as much as they like with a set leverage and can even trade with a negative balance at the end of the set period - any profits the trader keeps any losses the broker covers.
Low Initial Deposit
These accounts can be traded with a small amount and the only risk is the initial deposit and unlike a real trading account, if you go debit you still can trade for the period the account is set up for.
Leverage and Low Risk
At any point during the two-week period, a trader may control up to 100 times his initial deposit, regardless of the actual balance in the Protected Account. The trader may make as many trades as desired, 24 hours a day, using any currency pair.
At The End of The Period - clients Takes Any Profits Broker Covers Any Losses.
Positions are closed automatically at the end of a set period normally after two weeks.
If there is a positive balance, it will be transferred to the forex trader's regular account. If there is a negative balance, the broker covers it.
Getting the Feel Of Trading With Limited Risk
A regular demo account, though a very useful tool, for learning a trading platform or the basics of trading does not simulate the feeling of trading real money.
A Protected Account acts as a step up between a demo account and a real one, providing an authentic trading experience, with managed risk which many traders want, so they can test their skills before opening a full trading account.
Any trader will tell you that trading with money on the line is totally different to trading a demo account, as your emotions are involved, discipline needs to be kept and this is why 90% of traders who win with a demo account lose real time. A protected account lets traders feel what its like to trade for real, with a small risk, unlimited trades and limited risk in the period which is a great way to see if currency trading is for you.
MORE ON PROTECTED ACCOUNTS AND BEST BROKER SERVICES + FREE ESSENTIAL TRADING GUIDES
For more on Protected Limited Risk Forex Accounts and some essential trading guides visit our website at: http://www.learncurrencytradingonline.com/index.html
Article Source: http://EzineArticles.com/?expert=Kelly_Price
A protected account introduces potential traders to the lucrative world of currency trading - but unlike a demo account, allows them to feel what trading is really like with limited risk.
For a set period they get to trade as much as they like with a set leverage and can even trade with a negative balance at the end of the set period - any profits the trader keeps any losses the broker covers.
Low Initial Deposit
These accounts can be traded with a small amount and the only risk is the initial deposit and unlike a real trading account, if you go debit you still can trade for the period the account is set up for.
Leverage and Low Risk
At any point during the two-week period, a trader may control up to 100 times his initial deposit, regardless of the actual balance in the Protected Account. The trader may make as many trades as desired, 24 hours a day, using any currency pair.
At The End of The Period - clients Takes Any Profits Broker Covers Any Losses.
Positions are closed automatically at the end of a set period normally after two weeks.
If there is a positive balance, it will be transferred to the forex trader's regular account. If there is a negative balance, the broker covers it.
Getting the Feel Of Trading With Limited Risk
A regular demo account, though a very useful tool, for learning a trading platform or the basics of trading does not simulate the feeling of trading real money.
A Protected Account acts as a step up between a demo account and a real one, providing an authentic trading experience, with managed risk which many traders want, so they can test their skills before opening a full trading account.
Any trader will tell you that trading with money on the line is totally different to trading a demo account, as your emotions are involved, discipline needs to be kept and this is why 90% of traders who win with a demo account lose real time. A protected account lets traders feel what its like to trade for real, with a small risk, unlimited trades and limited risk in the period which is a great way to see if currency trading is for you.
MORE ON PROTECTED ACCOUNTS AND BEST BROKER SERVICES + FREE ESSENTIAL TRADING GUIDES
For more on Protected Limited Risk Forex Accounts and some essential trading guides visit our website at: http://www.learncurrencytradingonline.com/index.html
Article Source: http://EzineArticles.com/?expert=Kelly_Price
Forex Training - Pretending to Do It, Or Doing It For Real?
Most people who have embarked on foreign exchange trading get hooked! Almost all agree that it's one of the most exciting, if not THE most exciting, forms of trading you can be involved in. Indeed it can give you a real buzz! So can motor-racing or ski-ing. But you wouldn't get in a racing car and start on a Formula One circuit without a few driving lessons first. And it's certainly an idea to get a few ski-ing lessons before embarking on the ski-slopes.
Like ski-ing or driving, foreign exchange trading can be dangerous if you don't know what you're doing. But in this case, the danger is to your finances.
So how do you obtain Forex training? The best idea is look for those Forex trading systems that provide one-to-one Forex training.
Some provide Forex training in the form of a demo account. The idea of a demo account is that you carry out all the trading moves, without using real money. So once you have your real account, you know how to do all these things - drawing trendlines, marking support and resistance levels, monitoring moving averages etc. Plus you can make your mistakes in placing orders to trade without losing money.
However, there is some doubt as to whether using a demo account is really the best way of learning foreign exchange trading. You really don't have the same attitude to your trades if you are just using play money. One of the most important lessons - if not THE most important - in foreign exchange trading is to be ruled by reason and discipline, not feelings, excitement or greed. When reason and discipline go out of the window, that is when you find yourself losing. This is a hard lesson you really have to learn, and without consequences you don't learn it.
A better way to obtain Forex training is to find one of the Forex trading systems that enable you to start trading with a small amount of money, and at the same time provide one-on-one training as you do it. This way you learn the basics of the foreign exchange market, the terminology of trading, and how to develop successful trading strategies. If you make a wrong decision - which everybody does - you will lose money and this will teach you not to make that particular move again! But the money you lose will just be a small amount.
Basically, you only learn to do something by actually doing it, not by reading about it or pretending to do it. The most effective type of Forex training is hands-on experience. And don't forget - you never stop learning. However experienced you are at foreign exchange trading, you can always learn something new - and make a profit at the same time!
To find one of the best Forex trading systems for hands-on training, come and visit http://www.bizwrite.co.uk/Forex/forexindex.html
Article Source: http://EzineArticles.com/?expert=Elaine_Berry
Like ski-ing or driving, foreign exchange trading can be dangerous if you don't know what you're doing. But in this case, the danger is to your finances.
So how do you obtain Forex training? The best idea is look for those Forex trading systems that provide one-to-one Forex training.
Some provide Forex training in the form of a demo account. The idea of a demo account is that you carry out all the trading moves, without using real money. So once you have your real account, you know how to do all these things - drawing trendlines, marking support and resistance levels, monitoring moving averages etc. Plus you can make your mistakes in placing orders to trade without losing money.
However, there is some doubt as to whether using a demo account is really the best way of learning foreign exchange trading. You really don't have the same attitude to your trades if you are just using play money. One of the most important lessons - if not THE most important - in foreign exchange trading is to be ruled by reason and discipline, not feelings, excitement or greed. When reason and discipline go out of the window, that is when you find yourself losing. This is a hard lesson you really have to learn, and without consequences you don't learn it.
A better way to obtain Forex training is to find one of the Forex trading systems that enable you to start trading with a small amount of money, and at the same time provide one-on-one training as you do it. This way you learn the basics of the foreign exchange market, the terminology of trading, and how to develop successful trading strategies. If you make a wrong decision - which everybody does - you will lose money and this will teach you not to make that particular move again! But the money you lose will just be a small amount.
Basically, you only learn to do something by actually doing it, not by reading about it or pretending to do it. The most effective type of Forex training is hands-on experience. And don't forget - you never stop learning. However experienced you are at foreign exchange trading, you can always learn something new - and make a profit at the same time!
To find one of the best Forex trading systems for hands-on training, come and visit http://www.bizwrite.co.uk/Forex/forexindex.html
Article Source: http://EzineArticles.com/?expert=Elaine_Berry
Why Forex Trading Beats Stock Market Trading
The main reason why forex trading beats stock market trading is amount of options to invest in, in that there are fewer options to invest in foreign exchange, and therefore fewer key players that can be predicted to influence the market. Further to this it is the basic nature through which the foreign exchange interacts - it is less prone to unpredictable swings than with stock trading. This article will detail the major reasons why forex trading beats stock market trading.
The foreign exchange market is over 30 years old. It is not one that is based on value's of businesses, but rather values of currency. For this reason there are much fewer units which trader's can invest in. Currently there are approximately 4 major currency players, and 34 second tier currencies which have some bearing on market activity. Currently the number of different stock issues on the NASDAQ and New York Stock Exchange totals approximately 8000. You do the math, would you rather be analysing the performance of 38 products or 8000?
Currency exchange is truly a 24 hour marketplace- as the sun rises in one location, it is setting in another. The forex market certainly does have peaks and troughs like the stock market, however it does not relate to the 'bull vs bear' mentality which is rife on the stock market. This essentially means the marketplace is divided up by investor's who believe the market value will increase, and by investors who believe the value will dive. A major difference with foreign exchange is that when one currency suffers, this causes another currency to profit. This clearly makes it easier to make stable predictions within the forex.
A major advantage to invest in the forex market is that interest rates have little bearing upon performance of the marketplace. Interest rates have a highly significant influence on stock trading, yet it can have the opposite influence on the currency trading market- it can in fact improve it!
One does not require a brokerage firm to trade in forex - in fact there are many successful individual traders's profiting consistently from foreign exchange. Many of these trader's will confess that the key to their success lies in their ability to interpret data and statistics of the foreign exchange market, and further to this efficiently manage this data and know how to exploit it for profit. Forex trading software such as the Forex Killer System has truly levelled the playing field, and gives individual trader's an edge in the currency trading market place. Software platforms are generally not as effective when interpreting stock trading data, as the volume of products is too high to constantly make winning predictions.
Conclusion
As mentioned the main reason why forex trading beats stock market trading is due to the volume of investment options. The currency trading market has a manageable amount of variable which can be predicted and acted upon in a simpler fashion than with the stock market. Being able to predict market swings and act upon them with precise timing is the key to success in any form of investment.
Want to learn an amazing breakthrough forex trading system which will help skyrocket your trading profits? Please visit:
http://www.forextradingsoftwarereview.com/Forex_Killer.html
Article Source: http://EzineArticles.com/?expert=Peter_C_Johnson
The foreign exchange market is over 30 years old. It is not one that is based on value's of businesses, but rather values of currency. For this reason there are much fewer units which trader's can invest in. Currently there are approximately 4 major currency players, and 34 second tier currencies which have some bearing on market activity. Currently the number of different stock issues on the NASDAQ and New York Stock Exchange totals approximately 8000. You do the math, would you rather be analysing the performance of 38 products or 8000?
Currency exchange is truly a 24 hour marketplace- as the sun rises in one location, it is setting in another. The forex market certainly does have peaks and troughs like the stock market, however it does not relate to the 'bull vs bear' mentality which is rife on the stock market. This essentially means the marketplace is divided up by investor's who believe the market value will increase, and by investors who believe the value will dive. A major difference with foreign exchange is that when one currency suffers, this causes another currency to profit. This clearly makes it easier to make stable predictions within the forex.
A major advantage to invest in the forex market is that interest rates have little bearing upon performance of the marketplace. Interest rates have a highly significant influence on stock trading, yet it can have the opposite influence on the currency trading market- it can in fact improve it!
One does not require a brokerage firm to trade in forex - in fact there are many successful individual traders's profiting consistently from foreign exchange. Many of these trader's will confess that the key to their success lies in their ability to interpret data and statistics of the foreign exchange market, and further to this efficiently manage this data and know how to exploit it for profit. Forex trading software such as the Forex Killer System has truly levelled the playing field, and gives individual trader's an edge in the currency trading market place. Software platforms are generally not as effective when interpreting stock trading data, as the volume of products is too high to constantly make winning predictions.
Conclusion
As mentioned the main reason why forex trading beats stock market trading is due to the volume of investment options. The currency trading market has a manageable amount of variable which can be predicted and acted upon in a simpler fashion than with the stock market. Being able to predict market swings and act upon them with precise timing is the key to success in any form of investment.
Want to learn an amazing breakthrough forex trading system which will help skyrocket your trading profits? Please visit:
http://www.forextradingsoftwarereview.com/Forex_Killer.html
Article Source: http://EzineArticles.com/?expert=Peter_C_Johnson
Thursday, December 13, 2007
Forex Trading - Trading the Forex for Profits
Forex trading is the trading of different types of foreign currencies, sometimes just called currency trading.
While forex trading used to be limited to large banks and institutional traders, advancements in technology have allowed smaller traders to be able to benefit from forex trading as well, via the different online trading platforms now available.
About 85% of daily forex trading involves currency trading of the major currencies of the world, usually four major currency pairs. Currency trading usually involves the US dollar against the Japanese Yen, the British pound against the US dollar, the US dollar against the Swiss franc and the Euro against the US dollar.
Here's how those look in the forex trading market: USD/JPY, GBP/USD, USD/CHF, EUR/USD.
The idea behind profiting from forex trading is taking a position in a currency that you believe will appreciate against the currency it is paired against.
The FOREX is a world wid market, meaning it is basically open 24 hours a day. This eliminates the gaps you see almost every morning with tradional stocks. The FOREX market trades approximately $1.2 trillion every day, making it very easy to get in and out of your positions quickly.
Although the large majority of the focus in the investing world is on stocks and bonds, the currenty market is the oldest and largest financial market in the world.
So why trade the FOREX market?
* The FOREX market is open 24 hours a day
* The FOREX market is extremely liquid making it very easy to get in and out of various trading positions quickly
* The FOREX market is highly leveraged. While a margin account for trading stocks has a leverage of 2 (50% margin requirement) the FOREX market can have a leverage ratio of 400. Keep in mind that while this makes your upside potential a lot greater it also makes your downside risk a lot greater as well.
* The FOREX market is always a bull market because currencies are paired off against one another, which means there is always currency that is going up.
FOREX trading is a fantastic alternative to trading commodities and futures. Remember, though, that there is still a lot of risk and you need to educate yourself before starting to trade the FOREX market.
Learn more about forex trading tips and tactics for more profitable currency trades at http://www.forextradingtactics.com where Richard Pfaeltzer, an investor and freelance investing and success writer, contributes articles on forex and currency trading
Article Source: http://EzineArticles.com/?expert=Richard_Pfaeltzer
While forex trading used to be limited to large banks and institutional traders, advancements in technology have allowed smaller traders to be able to benefit from forex trading as well, via the different online trading platforms now available.
About 85% of daily forex trading involves currency trading of the major currencies of the world, usually four major currency pairs. Currency trading usually involves the US dollar against the Japanese Yen, the British pound against the US dollar, the US dollar against the Swiss franc and the Euro against the US dollar.
Here's how those look in the forex trading market: USD/JPY, GBP/USD, USD/CHF, EUR/USD.
The idea behind profiting from forex trading is taking a position in a currency that you believe will appreciate against the currency it is paired against.
The FOREX is a world wid market, meaning it is basically open 24 hours a day. This eliminates the gaps you see almost every morning with tradional stocks. The FOREX market trades approximately $1.2 trillion every day, making it very easy to get in and out of your positions quickly.
Although the large majority of the focus in the investing world is on stocks and bonds, the currenty market is the oldest and largest financial market in the world.
So why trade the FOREX market?
* The FOREX market is open 24 hours a day
* The FOREX market is extremely liquid making it very easy to get in and out of various trading positions quickly
* The FOREX market is highly leveraged. While a margin account for trading stocks has a leverage of 2 (50% margin requirement) the FOREX market can have a leverage ratio of 400. Keep in mind that while this makes your upside potential a lot greater it also makes your downside risk a lot greater as well.
* The FOREX market is always a bull market because currencies are paired off against one another, which means there is always currency that is going up.
FOREX trading is a fantastic alternative to trading commodities and futures. Remember, though, that there is still a lot of risk and you need to educate yourself before starting to trade the FOREX market.
Learn more about forex trading tips and tactics for more profitable currency trades at http://www.forextradingtactics.com where Richard Pfaeltzer, an investor and freelance investing and success writer, contributes articles on forex and currency trading
Article Source: http://EzineArticles.com/?expert=Richard_Pfaeltzer
Major Forex Indicators
Certain financial indicators have a history of moving the financial markets when the actual numbers don't match consensus. This article explain what some of the better financial indicators are and the ones traders should pay close attention to when trading the forex market.
APICS Survey - The APICS survey provides detailed information of the manufacturing sector. This survey is less well known than the ISM, but can also suggest trends in production. The diffusion index does not move in tandem with the ISM index each month, but sometimes the two do move in the same direction. Since manufacturing is a major sector of economy, investors can get a feel for the general economic backdrop for several investments. These surveys also play an important role in learning forex trading.
Business Inventories - The degree of inventories in relation to sales is an important signal of the near-term direction of production activity. Investors need to monitor the economy closely because it usually dictates how various types of investments will perform. Growing inventories can be an indication of business optimism that sales will be growing in the coming months. By looking at the proportion of inventories to sales, investors can see whether production demands will expand or contract in the near future. The business inventory data provide a valuable forward-looking tool for traversing the economy and it is greatly used while making forex trading strategies.
Chain Stores Sales - It is monthly sales volumes from department, chain, discount and apparel stores. Sales are reported by the individual retailers. Chain store sales are an indicator of retail sales and consumer spending results. Consumer spending accounts for two-thirds of the economy, so if you know what consumers are up to, you will have a pretty good grip on where the economy is headed. Sales are reported as a change from the same month a year ago. It is significant to know how strong sales actually were a year ago to make sense of this year's sales. In addition, sales are normally reported for "comparable stores" in case of company mergers.
Construction Spending - Data are available in nominal and real (inflation-adjusted) dollars. Because of their forex trading strategies, businesses only put money into construction of new factories or offices when they are sure that demand is strong enough to justify the expansion. The same goes for individuals making the investment in a home. That's why construction spending is a good indicator of the economy's momentum.
Consumer Confidence - It is study of consumer attitudes concerning both the present position as well as expectations regarding economic conditions conducted by The Conference Board. The level of consumer confidence is directly related to the intensity of consumer spending. Consumer spending accounts for two-thirds of the economy, so the markets are always dying to know what consumers are up to and how they might act in the near future. The more confident consumers are about the economy and their own personal finances, the more likely they are to spend. With this in mind, it's easy to see how this index of consumer attitudes gives insight to the way of the economy. Changes in consumer confidence and retail sales don't move in tandem month by month.
Consumer Price Index (CPI) - It is measure of the average price level of a fixed basket of goods and services purchased by consumers. Monthly changes in the CPI represent the inflation rate. The CPI is the most followed indicator of inflation in the United States, some forex training institutes also keeps record of it for training purpose. Inflation is a general increase in the cost of goods and services. The relationship between inflation and interest rates is the key to understanding how data like the CPI influence the markets. By tracking the trends in inflation, whether high or low, ascending or descending, investors can anticipate how different types of investments will perform.
Current account - It is a measure of the country's international trade balance in goods, services and unilateral transfers. The level of the current account, as well as the trends in exports and imports, are followed as indicators of trends in foreign trade. U.S. trade with foreign countries hold significant clues to economic trends here and abroad. According to forex training experts this data can directly affect all the financial markets, and particularly the foreign exchange value of the dollar.
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 Squidoo for keeping online Forex trading records.
Article Source: http://EzineArticles.com/?expert=Andrew_Daigle
APICS Survey - The APICS survey provides detailed information of the manufacturing sector. This survey is less well known than the ISM, but can also suggest trends in production. The diffusion index does not move in tandem with the ISM index each month, but sometimes the two do move in the same direction. Since manufacturing is a major sector of economy, investors can get a feel for the general economic backdrop for several investments. These surveys also play an important role in learning forex trading.
Business Inventories - The degree of inventories in relation to sales is an important signal of the near-term direction of production activity. Investors need to monitor the economy closely because it usually dictates how various types of investments will perform. Growing inventories can be an indication of business optimism that sales will be growing in the coming months. By looking at the proportion of inventories to sales, investors can see whether production demands will expand or contract in the near future. The business inventory data provide a valuable forward-looking tool for traversing the economy and it is greatly used while making forex trading strategies.
Chain Stores Sales - It is monthly sales volumes from department, chain, discount and apparel stores. Sales are reported by the individual retailers. Chain store sales are an indicator of retail sales and consumer spending results. Consumer spending accounts for two-thirds of the economy, so if you know what consumers are up to, you will have a pretty good grip on where the economy is headed. Sales are reported as a change from the same month a year ago. It is significant to know how strong sales actually were a year ago to make sense of this year's sales. In addition, sales are normally reported for "comparable stores" in case of company mergers.
Construction Spending - Data are available in nominal and real (inflation-adjusted) dollars. Because of their forex trading strategies, businesses only put money into construction of new factories or offices when they are sure that demand is strong enough to justify the expansion. The same goes for individuals making the investment in a home. That's why construction spending is a good indicator of the economy's momentum.
Consumer Confidence - It is study of consumer attitudes concerning both the present position as well as expectations regarding economic conditions conducted by The Conference Board. The level of consumer confidence is directly related to the intensity of consumer spending. Consumer spending accounts for two-thirds of the economy, so the markets are always dying to know what consumers are up to and how they might act in the near future. The more confident consumers are about the economy and their own personal finances, the more likely they are to spend. With this in mind, it's easy to see how this index of consumer attitudes gives insight to the way of the economy. Changes in consumer confidence and retail sales don't move in tandem month by month.
Consumer Price Index (CPI) - It is measure of the average price level of a fixed basket of goods and services purchased by consumers. Monthly changes in the CPI represent the inflation rate. The CPI is the most followed indicator of inflation in the United States, some forex training institutes also keeps record of it for training purpose. Inflation is a general increase in the cost of goods and services. The relationship between inflation and interest rates is the key to understanding how data like the CPI influence the markets. By tracking the trends in inflation, whether high or low, ascending or descending, investors can anticipate how different types of investments will perform.
Current account - It is a measure of the country's international trade balance in goods, services and unilateral transfers. The level of the current account, as well as the trends in exports and imports, are followed as indicators of trends in foreign trade. U.S. trade with foreign countries hold significant clues to economic trends here and abroad. According to forex training experts this data can directly affect all the financial markets, and particularly the foreign exchange value of the dollar.
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 Squidoo for keeping online Forex trading records.
Article Source: http://EzineArticles.com/?expert=Andrew_Daigle
Sunday, December 9, 2007
Forex Traders, Currency Exchange Interest Rates and Market Inefficiency - The Carry Trade
Forex Traders, Currency Exchange Interest Rates and Market Inefficiency: The Carry Trade
Forex traders have multiple - it could almost be said infinite - strategies to trade the forex market and to take advantage of market The "carry trade" is a forex strategy that plays on the fact that different nations, being able to attract a higher flux of capital, and having different level of economical and industrial development, offer different interest rates, some higher than others. As we saw in Currency Trading and The Forex Capital Markets, this fact, representing market inefficiency, is in turn a trading advantage that can be exploited by forex traders.
The carry trade involve buying a currency of a Country that has a high interest rate and selling a currency of another Country that, on the other hand, has a lower interest rate. Forex traders are thus able to profit in two ways: -- Earn the difference in the spread (the difference between the two interest rates) of the two currencies, and -- Earn form capital appreciation
Usually the spread in interest rates is not very large and can be expected to be in the order of 3% to 4%; however, it should be regarded from the broader perspective of the leverage offered by forex and by the lower risk that, at least compared to other forex trading strategies, this system entails. In fact, when factoring in 20:1 or even higher leverage ratios (some forex traders can trade these currency exchange rate inefficiencies with up to 200:1 leverage).
As we noted below, the carry trade can profit from two sources; however, capital appreciation can work against the forex trader; in fact, if capital depreciate, the forex trader will be losing money on this part of the trade, and at the end of the day it is the sum of the two streams (difference in interest rate spread and capital appreciation/depreciation) that will give the verdict as to whether the overall forex trade was successful or not. Forex traders performing this type of strategy are obviously looking to earn both yield from the interest rates spread and the appreciation of the currency pairs: it is thus crucial to determine in which Countries (that is, which markets) carry trades will Produce the higher returns with a level of risk in line with the returns expected by the currency trader. This is indeed very difficult to answer; certainly, the forex market is driven by fundamental for a large extent, but it is the psychology of people and their swings in mood that most drives the forex markets. Investing in a Country that pays high interest rates is riskier that investing in a country that pays lower interest rates because a developing country, thirsty for capitals and money will want to attract the resources it needs by encouraging investors and forex traders with higher returns for their money. However, such a country has intrinsically a higher risk profile and ultimately it is the forex trader that must be willing to take its chances after carefully evaluating the multiple factors coming into the picture.
If you have a genuine interest in currency trading, or you are a forex trader willing to know what resources are available to you to start trading in the currency exchange market, you may want to visit http://www.onlineforextradingsite.com
Article Source: http://EzineArticles.com/?expert=Gui_Tru
Forex traders have multiple - it could almost be said infinite - strategies to trade the forex market and to take advantage of market The "carry trade" is a forex strategy that plays on the fact that different nations, being able to attract a higher flux of capital, and having different level of economical and industrial development, offer different interest rates, some higher than others. As we saw in Currency Trading and The Forex Capital Markets, this fact, representing market inefficiency, is in turn a trading advantage that can be exploited by forex traders.
The carry trade involve buying a currency of a Country that has a high interest rate and selling a currency of another Country that, on the other hand, has a lower interest rate. Forex traders are thus able to profit in two ways: -- Earn the difference in the spread (the difference between the two interest rates) of the two currencies, and -- Earn form capital appreciation
Usually the spread in interest rates is not very large and can be expected to be in the order of 3% to 4%; however, it should be regarded from the broader perspective of the leverage offered by forex and by the lower risk that, at least compared to other forex trading strategies, this system entails. In fact, when factoring in 20:1 or even higher leverage ratios (some forex traders can trade these currency exchange rate inefficiencies with up to 200:1 leverage).
As we noted below, the carry trade can profit from two sources; however, capital appreciation can work against the forex trader; in fact, if capital depreciate, the forex trader will be losing money on this part of the trade, and at the end of the day it is the sum of the two streams (difference in interest rate spread and capital appreciation/depreciation) that will give the verdict as to whether the overall forex trade was successful or not. Forex traders performing this type of strategy are obviously looking to earn both yield from the interest rates spread and the appreciation of the currency pairs: it is thus crucial to determine in which Countries (that is, which markets) carry trades will Produce the higher returns with a level of risk in line with the returns expected by the currency trader. This is indeed very difficult to answer; certainly, the forex market is driven by fundamental for a large extent, but it is the psychology of people and their swings in mood that most drives the forex markets. Investing in a Country that pays high interest rates is riskier that investing in a country that pays lower interest rates because a developing country, thirsty for capitals and money will want to attract the resources it needs by encouraging investors and forex traders with higher returns for their money. However, such a country has intrinsically a higher risk profile and ultimately it is the forex trader that must be willing to take its chances after carefully evaluating the multiple factors coming into the picture.
If you have a genuine interest in currency trading, or you are a forex trader willing to know what resources are available to you to start trading in the currency exchange market, you may want to visit http://www.onlineforextradingsite.com
Article Source: http://EzineArticles.com/?expert=Gui_Tru
All About Forex Trading
Forex trading, short for foreign exchange trading, involves the buying and selling of the many currencies of the world. It does not operate via a central exchange site, like traditional stock market trading, and may, thus, fully function a 24-hour basis.
When compared to other exchanges, the trading market is the largest in the world, even beating the New York Stock Exchange (NYSE) by over a hundredfold, in terms of daily trading volume, most of which are conducted by private entities and individuals.
Because of the absence of a central exchange, trading happens between two parties directly. Buyers and sellers communicate and trade via the phone, the Internet or other communications networks worldwide.
In addition, trading forex is also speculative, meaning, they are based on expectations on whether a certain currency would rise or fall, depending on current market conditions. It is risky business, but the returns have often proved themselves worth the risk.
Basic forex trading
Forex trading involves the buying and selling of two currencies at the same time. This combination is often dubbed a cross, because it occurs between two moneys; for instance, the US dollar/Japanese Yen. The highest traded currencies in forex are the US dollar, the euro, the Japanese yen and the UK pound - the "majors".
Trading normally occurs in the spot market, which is the largest because of its volume. Here, trades are made and completed directly and on the spot. You don't have to wait too long to settle.
Advantages of forex trading
1. No 4pm trade closing time.
When you're trading forex, you have 24-hours to do so from Sunday night to Friday night. This opportunity allows you to retract your moves and react immediately when a currency suddenly goes up or down. Breaking news are vital to trading.
2. Very liquid.
It is easy to convert your trades to cash in the market, especially if yours involves one of the majors. The high liquidity helps ensure that spreads are narrow and prices are stable throughout the period.
3. Strong potential for profits
This is particularly true with falling currencies. Because trading involves two currencies, when one rises, the other naturally falls. When a currency depreciates, it could be the perfect time to buy into it so that you can sell it for a hefty profit when it's its turn to appreciate.
4. The higher the currency's liquidity level, the cheaper it is to trade it.
This is why most forex trading patrons opt to trade majors, because they have the highest liquidity. In addition, trading is also more attractive to some money movers because of the absence of a commission. Thus, currencies are actually traded for their real merits and not because they come with misleading incentives.
There's a lot more to learn about trading and the above merely scratches the surface. To be able to further understand what forex trading is and how it can help you grow your coffers, it is advised that you speak to an expert who more likely has all the answers to your questions. Or, yet, ask somebody who's already had experience with forex trading.
Our mission at the Options University is to provide investors around the world with the very best in options education and tools, empowering them to use options for greater profit protection and less risk. To learn more on the options trading strategies for safer investing and bigger profits, please visit our blog at http://www.options-university.biz/blog/ for free trading tips and video e-Course.
Article Source: http://EzineArticles.com/?expert=Cornel_C.T._Tanady
When compared to other exchanges, the trading market is the largest in the world, even beating the New York Stock Exchange (NYSE) by over a hundredfold, in terms of daily trading volume, most of which are conducted by private entities and individuals.
Because of the absence of a central exchange, trading happens between two parties directly. Buyers and sellers communicate and trade via the phone, the Internet or other communications networks worldwide.
In addition, trading forex is also speculative, meaning, they are based on expectations on whether a certain currency would rise or fall, depending on current market conditions. It is risky business, but the returns have often proved themselves worth the risk.
Basic forex trading
Forex trading involves the buying and selling of two currencies at the same time. This combination is often dubbed a cross, because it occurs between two moneys; for instance, the US dollar/Japanese Yen. The highest traded currencies in forex are the US dollar, the euro, the Japanese yen and the UK pound - the "majors".
Trading normally occurs in the spot market, which is the largest because of its volume. Here, trades are made and completed directly and on the spot. You don't have to wait too long to settle.
Advantages of forex trading
1. No 4pm trade closing time.
When you're trading forex, you have 24-hours to do so from Sunday night to Friday night. This opportunity allows you to retract your moves and react immediately when a currency suddenly goes up or down. Breaking news are vital to trading.
2. Very liquid.
It is easy to convert your trades to cash in the market, especially if yours involves one of the majors. The high liquidity helps ensure that spreads are narrow and prices are stable throughout the period.
3. Strong potential for profits
This is particularly true with falling currencies. Because trading involves two currencies, when one rises, the other naturally falls. When a currency depreciates, it could be the perfect time to buy into it so that you can sell it for a hefty profit when it's its turn to appreciate.
4. The higher the currency's liquidity level, the cheaper it is to trade it.
This is why most forex trading patrons opt to trade majors, because they have the highest liquidity. In addition, trading is also more attractive to some money movers because of the absence of a commission. Thus, currencies are actually traded for their real merits and not because they come with misleading incentives.
There's a lot more to learn about trading and the above merely scratches the surface. To be able to further understand what forex trading is and how it can help you grow your coffers, it is advised that you speak to an expert who more likely has all the answers to your questions. Or, yet, ask somebody who's already had experience with forex trading.
Our mission at the Options University is to provide investors around the world with the very best in options education and tools, empowering them to use options for greater profit protection and less risk. To learn more on the options trading strategies for safer investing and bigger profits, please visit our blog at http://www.options-university.biz/blog/ for free trading tips and video e-Course.
Article Source: http://EzineArticles.com/?expert=Cornel_C.T._Tanady
Friday, December 7, 2007
A Simple Forex Trading System Can Protect Your Investment
Forex Trading Systems are very popular as a method of investing money to make more money. They work like momentum players in the market. It is software that implements a method of trading that uses objective entry and exit criteria based on parameters that have been validated by historical testing on quantifiable data. Simple systems are actually similar to that of stock market trading systems in any country, but on a huge scale, that involves currency trading all over the world, in practically any country.
There are hundreds of simple forex trading systems out there on the internet willing to sell you an eBook or a forex strategy to make you 1000's of pips profit per month. Forex Trading Systems that are based on logical, scientifically-sound, and well-tested concepts have been working extremely well and will continue to do so for many, many years to come. They will teach you money management strategies that can skyrocket your profits.
Software is available to help you manage every aspect of the trades. You can purchase currency and set a price at which to sell and it should give you exact buy and sell signals. Simple Forex trading system software is easier to understand, apply and have confidence in which leads to the discipline to follow your currency trading system to long term currency trading success.
These are the best way for anyone to invest in the foreign exchange market. There are trading systems that are ideal for every type of forex trader. Easy to use, informative and beneficial are the key factors to consider before putting your foot into the trading pool. Simple Forex trading systems are big business. Invest in the right one and you can make big currency profits and get the cost you paid back many times over.
Author is an investor who has discovered a source of secrets to successful forex trading. Go now to http://forex-helper.blogspot.com/ for more information.
Article Source: http://EzineArticles.com/?expert=Brent_Kokenge
There are hundreds of simple forex trading systems out there on the internet willing to sell you an eBook or a forex strategy to make you 1000's of pips profit per month. Forex Trading Systems that are based on logical, scientifically-sound, and well-tested concepts have been working extremely well and will continue to do so for many, many years to come. They will teach you money management strategies that can skyrocket your profits.
Software is available to help you manage every aspect of the trades. You can purchase currency and set a price at which to sell and it should give you exact buy and sell signals. Simple Forex trading system software is easier to understand, apply and have confidence in which leads to the discipline to follow your currency trading system to long term currency trading success.
These are the best way for anyone to invest in the foreign exchange market. There are trading systems that are ideal for every type of forex trader. Easy to use, informative and beneficial are the key factors to consider before putting your foot into the trading pool. Simple Forex trading systems are big business. Invest in the right one and you can make big currency profits and get the cost you paid back many times over.
Author is an investor who has discovered a source of secrets to successful forex trading. Go now to http://forex-helper.blogspot.com/ for more information.
Article Source: http://EzineArticles.com/?expert=Brent_Kokenge
Wednesday, December 5, 2007
Forex Trading Strategy
The foreign exchange (currency or forex or FX) market exists wherever one currency is traded for another. It is by far the largest financial market in the world, and includes trading between large banks, central banks, currency speculators, multinationals, governments, and other financial markets and institutions. The average daily trade in the global forex and related markets currently is over US$ 3 trillion. Retail traders (individuals) are a small fraction of this market and may only participate indirectly through brokers or banks, and are subject to forex scams.
The foreign exchange market is unique because of:
ª its trading volumes,
ª the extreme liquidity of the market,
ª the large number of, and variety of, traders in the market,
ª its geographical dispersion,
ª its long trading hours: 24 hours a day (except on weekends),
ª the variety of factors that affect exchange rates.
ª the low margins of profit compared with other markets of fixed income (but profits can be high due to very large trading volumes)
While forex has been traded since the beginning of financial markets, on-line retail trading has only been active since about 1996 . From the 1970s, larger retail traders could trade FX contracts at the Chicago Mercantile Exchange.
By 1996 on-line retail forex trading became practical. Internet-based market makers would take the opposite side of retail trader's trades. These companies also created online trading platforms that provided a quick way for individuals to buy and sell on the forex spot market.
In online currency exchange, few or no transactions actually lead to physical delivery to the client; all positions will eventually be closed. The market makers offer high amounts of leverage. While up to 4:1 leverage is available in equities and 20:1 in Futures, it is common to have 100:1 leverage in currencies.]. In the typical 100:1 scenario, the client absorbs all risks associated with controlling a position worth 100 times his capital.
Currencies are quoted in pairs i.e. EUR/USD (euro vs. United States dollar). Currency prices can only fluctuate relative to another currency, so they are traded in pairs. Take two of the most common currency pairs, the EUR/USD (the price for euros in US dollars) and the GBP/USD (the price for the British pound in US dollars).
The idea of margin (leverage) and floating loss is another important trading concept and is perhaps best understood using an example. Most retail Forex market makers permit 100:1 leverage, but also, crucially, require you to have a certain amount of money in your account to protect against a critical loss point.
For example, if a $100,000 position is held in Eur/USD on 100:1 leverage, the trader has to put up $1,000 to control the position. However, in the event of a declining value of your positions, Forex market makers, mindful of the fast nature of forex price swings and the amplifying effect of leverage, typically do not allow their traders to go negative and make up the difference at a later date. In order to make sure the trader does not lose more money than is held in the account, forex market makers typically employ automatic systems to close out positions when clients run out of margin (the amount of money in their account not tied to a position). If the trader has $2,000 in his account, and he is buying a $100,000 lot of EUR/USD, he has $1,000 of his $2,000 tied up in margin, with $1,000 left to allow his position to fluctuate downward without being closed out. A good Forex Trading Strategy is useful if one want to succeed in the market.
To review one strategy, see my blog http://www.forex-trading-strategy-ronald.blogspot.com
Article Source: http://EzineArticles.com/?expert=Ronald_Hopman
The foreign exchange market is unique because of:
ª its trading volumes,
ª the extreme liquidity of the market,
ª the large number of, and variety of, traders in the market,
ª its geographical dispersion,
ª its long trading hours: 24 hours a day (except on weekends),
ª the variety of factors that affect exchange rates.
ª the low margins of profit compared with other markets of fixed income (but profits can be high due to very large trading volumes)
While forex has been traded since the beginning of financial markets, on-line retail trading has only been active since about 1996 . From the 1970s, larger retail traders could trade FX contracts at the Chicago Mercantile Exchange.
By 1996 on-line retail forex trading became practical. Internet-based market makers would take the opposite side of retail trader's trades. These companies also created online trading platforms that provided a quick way for individuals to buy and sell on the forex spot market.
In online currency exchange, few or no transactions actually lead to physical delivery to the client; all positions will eventually be closed. The market makers offer high amounts of leverage. While up to 4:1 leverage is available in equities and 20:1 in Futures, it is common to have 100:1 leverage in currencies.]. In the typical 100:1 scenario, the client absorbs all risks associated with controlling a position worth 100 times his capital.
Currencies are quoted in pairs i.e. EUR/USD (euro vs. United States dollar). Currency prices can only fluctuate relative to another currency, so they are traded in pairs. Take two of the most common currency pairs, the EUR/USD (the price for euros in US dollars) and the GBP/USD (the price for the British pound in US dollars).
The idea of margin (leverage) and floating loss is another important trading concept and is perhaps best understood using an example. Most retail Forex market makers permit 100:1 leverage, but also, crucially, require you to have a certain amount of money in your account to protect against a critical loss point.
For example, if a $100,000 position is held in Eur/USD on 100:1 leverage, the trader has to put up $1,000 to control the position. However, in the event of a declining value of your positions, Forex market makers, mindful of the fast nature of forex price swings and the amplifying effect of leverage, typically do not allow their traders to go negative and make up the difference at a later date. In order to make sure the trader does not lose more money than is held in the account, forex market makers typically employ automatic systems to close out positions when clients run out of margin (the amount of money in their account not tied to a position). If the trader has $2,000 in his account, and he is buying a $100,000 lot of EUR/USD, he has $1,000 of his $2,000 tied up in margin, with $1,000 left to allow his position to fluctuate downward without being closed out. A good Forex Trading Strategy is useful if one want to succeed in the market.
To review one strategy, see my blog http://www.forex-trading-strategy-ronald.blogspot.com
Article Source: http://EzineArticles.com/?expert=Ronald_Hopman
Forex News - Why Most Traders Use It In The Wrong Way and Lose!
It's a fact that today is forex news sources are better than ever and its delivered quicker yet the ratio of losers to winners in forex trading remains the same as it did 50 years ago 95% lose and only 5% lose. The news can be useful but you need to know how to use it.
First let's look at a simple equation:
Forex Fundamentals (supply and demand news) + Investor Psychology = Price
The facts are there for all of us to see but assessing the impact of the news is hard because humans (millions of them) all motivated differently see the facts but they all draw their own personal conclusions from them and that's the price.
If it were easy to trade by following the news then there would be a lot more winners than there actually are. Will Rogers once said:
"I only believe what I see in the papers"
Of course he was making a joke but I am amazed by how many traders think that because a story appears on Reuters or another newswire, they can trade it - you can't.
The fact is that humans always push prices top far up or down, as their emotions come into play and most major tops are formed when the news is most bullish and vice versa in a bear market.
It's a fact that prices generally move in line with the long term fundamentals but prices spike to far from fair value up or down along the way and history shows us these spikes don't last.
You can spot them easily on a forex chart and trade them for profit.
There is a well know saying:
"If you can hold onto your head when everyone around you is losing theirs, you probably haven't heard the news"
In forex trading this means you sit back in a detached fashion and look at your forex charts and when you see a price spike you start to question the news.
For example - the euro spiked to 1.50 recently and everyone said that the dollar was finished - yet its rallied and will probably rally further.
Why?
Because all the news stories have been discounted: Interest rate cuts, the sub prime mortgage crisis, the US will slip into recession etc and things can only get better and people also didn't pay attention to GDP which is robust.
The dollar was simply oversold and rallied, when the news was at its most bearish.
This doesn't just happen in forex, it happens in any market.
I read a great story about oil going to $160.00 dollars a barrel and that $100.00 a barrel was sustainable.
Well - there is no shortage of oil.
Global demand is actually falling and the true value of oil is in the $70 - 80 region. When people said $100 a barrel was a forgone conclusion - it was time to sell.
The fact is we are not creatures of logic, we are creatures of emotion.
Humans are also pack animals, we like to be with the crowd and the news reflects this.
The facts are the crowd never wins.
If you look at a forex chart and you see a piece of bullish news that fails to rally a market or a bearish piece of news that doesn't cause a market to fall - that is telling you to look at your charts and look for a contrary trade.
Forex news can be useful - but not in the way that many traders think.
The above are just a couple of examples, of how you can use forex news (or any market news) to generate contrary trades, enjoy currency trading success and join the elite winning minority.
NEW! 2 X FREE ESSENTIAL TRADER PDFSAND - PROFESSIONAL TRADING COURSE
For 2 free trading Pdf's with essential trading 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
First let's look at a simple equation:
Forex Fundamentals (supply and demand news) + Investor Psychology = Price
The facts are there for all of us to see but assessing the impact of the news is hard because humans (millions of them) all motivated differently see the facts but they all draw their own personal conclusions from them and that's the price.
If it were easy to trade by following the news then there would be a lot more winners than there actually are. Will Rogers once said:
"I only believe what I see in the papers"
Of course he was making a joke but I am amazed by how many traders think that because a story appears on Reuters or another newswire, they can trade it - you can't.
The fact is that humans always push prices top far up or down, as their emotions come into play and most major tops are formed when the news is most bullish and vice versa in a bear market.
It's a fact that prices generally move in line with the long term fundamentals but prices spike to far from fair value up or down along the way and history shows us these spikes don't last.
You can spot them easily on a forex chart and trade them for profit.
There is a well know saying:
"If you can hold onto your head when everyone around you is losing theirs, you probably haven't heard the news"
In forex trading this means you sit back in a detached fashion and look at your forex charts and when you see a price spike you start to question the news.
For example - the euro spiked to 1.50 recently and everyone said that the dollar was finished - yet its rallied and will probably rally further.
Why?
Because all the news stories have been discounted: Interest rate cuts, the sub prime mortgage crisis, the US will slip into recession etc and things can only get better and people also didn't pay attention to GDP which is robust.
The dollar was simply oversold and rallied, when the news was at its most bearish.
This doesn't just happen in forex, it happens in any market.
I read a great story about oil going to $160.00 dollars a barrel and that $100.00 a barrel was sustainable.
Well - there is no shortage of oil.
Global demand is actually falling and the true value of oil is in the $70 - 80 region. When people said $100 a barrel was a forgone conclusion - it was time to sell.
The fact is we are not creatures of logic, we are creatures of emotion.
Humans are also pack animals, we like to be with the crowd and the news reflects this.
The facts are the crowd never wins.
If you look at a forex chart and you see a piece of bullish news that fails to rally a market or a bearish piece of news that doesn't cause a market to fall - that is telling you to look at your charts and look for a contrary trade.
Forex news can be useful - but not in the way that many traders think.
The above are just a couple of examples, of how you can use forex news (or any market news) to generate contrary trades, enjoy currency trading success and join the elite winning minority.
NEW! 2 X FREE ESSENTIAL TRADER PDFSAND - PROFESSIONAL TRADING COURSE
For 2 free trading Pdf's with essential trading 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
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