FOR FOREX TRADER

Online Forex Trading - 4 Simple Tips to Make Money Fast

2009-12-16T16:00:00.000-08:00

Online Forex Trading - 4 Simple Tips to Make Money Fast
by Sacha Tarkovsky

Here are some simple tips to help you make money fast in online FOREX trading that are simple to do and will help you build wealth quickly.

So what do we mean by make money fast?

Here we are looking at tools that will help you make triple digit gains annually, which would put you up with the top traders and in the elite 5% who win consistently in online FOREX Trading.

We are assuming here that you know the basics of FOREX Trading so here are your tips:

1. Be realistic

We all want to be millionaires overnight but be realistic.

If you aim for gains consistently of 100% per annum your up there with the best traders in the world.

Don't be in too much of a hurry; if you are then you will wipe yourself out.

2. Accepting Risk

Most novice traders who trade FOREX try to restrict risk so much that they actually give themselves no chance of winning.

Their stops are to close and GUARANTEE they will lose.

Online FOREX Trading is all about taking calculated risks.

This means if you want to make money fast you should risk up to 10% of your equity per trade.

Many people will tell you to risk 2% but if you're a small trader trading $10,000 that's just $200!

This will simply guarantee you're stopped out most of the time.

3. Running profits

It's a fact that most traders simply cannot run profits.

Many traders are fantastic at picking market direction but lose because they take profits to early!

This is a major problem.

A trader gets a profit and gets excited, the bigger the profit becomes the more he is tempted to take it before it gets way - eventually, the trade is snatched and banked.

The trader makes a thousand dollars and then sees it run onto to make 15 - 20,000 or more and he's not in.

If you want to make money do not move stops to lock in profit quickly.

Make sure your stop is far enough back to take into account normal market volatility - You need to take short term swings in equity against you and focus on the longer term.

4. Trading Method

There are many different methods to make money in online FOREX Trading and if you are looking for a method that works well - then a breakout method looking for long term trends is ideal.

The advantage of using a breakout method is you have relatively low risk and great rewards.

5. Patience

If you are trading then you can't hurry the markets.

They will give you opportunities but they can't be forced and you can go weeks or months without seeing any.

Learn to be patient and only trade when your system tells you to.

To make money fast you must keep risk low but you must also run profits for all they are worth to emerge a long term winner.

Foreign exchange market From Wikipedia, the free encyclopedia

2009-12-12T14:32:00.000-08:00

Foreign exchange market

From Wikipedia, the free encyclopedia

Forex Trading – Five Keys to a Profitable Trading Strategy

2009-12-11T05:43:00.000-08:00

Forex Trading – Five Keys to a Profitable Trading Strategy

The Forex (Foreign Exchange Market) is among the largest financial markets in the world with turnover every single day estimated to run up to $3 trillion. And if you hope to unlock the riches in the Forex trading market, you’ll need to know what you’re doing. Here are five crucial keys you can use to build a profitable trading strategy.

Key One: Know your market.

The surest way to gain an advantage, maximize profits and minimize losses is to know the market and how it works… know it like the back of your hand. The Forex market was originally a playground for the big boys (and still is). Players include commercial banks, central banks and multinationals engaged in foreign trade, as well as giant investment funds, and broker companies. In addition, private individuals with very large capital assets are typical participants. But more and more smaller players are entering this market. If you want to be one of them, it is essential for you to know the territory and the rules. In other words, you absolutely must have a profitable trading strategy from the outset.

Assets in this market are highly liquid, and they can be converted from one currency to another literally at the speed of light over the Internet.

More traders engage in this business than in any other form of trading. Two big attractions, especially for individuals, are the lack of membership fees and the lure, always there in the background, of big, big profits.

Trading is done in pairs, with the most commonly traded currency pairs being the US Dollar / Japanese Yen, the Euro / US Dollar, and the Swiss Franc / US Dollar. In Forex trading, everything is intangible and virtual. No actual product is ever sold or bought, and no money changes hands until a trader cashes out the gains from his account. All activity consists of computer entries made on the value of one currency against another. Say, for example, you use US dollars to buy Euros, expecting that the Euro will go up. When its value rises, you can then sell those Euros for dollars, and this difference earns you a profit.

Key Two: Learn the language.

There are three concepts you need to know in the currency market. Pips refer to the increase of one hundredth of a percent of the value of the currency pair you are trading. In the amounts traded, each pip may typically have a value of $1 or $10. Volume is the quantity or amount of money being traded at one particular time in the market. Buying is the acquisition of a particular currency. A trader buys with the hopes that the price of the currency will increase. Selling is putting your bundle of currency out for someone else to purchase because you expect a possible decrease in its value.

There are also two different kinds of analysis usually used in currency trading – technical analysis and fundamental analysis. Technical analysis is usually used by small and medium players. Here, the analysis concentrates on patterns of price activity. In contrast, fundamental analysis is often used by larger companies and players who work with bigger investments. This type of analysis is more complex and looks at many other factors that can influence the value of a currency. With fundamental analysis, the investor carefully watches the situation in the currency’s issuing country, including such issues as political stability, tax policies, inflation rate and unemployment rate. These factors are known to affect currency value.

Key Three: Learn (or develop) a solid trading strategy.

The trading strategy you settle on should be closely matched to your personal characteristics, and thus, what kind of Forex trader you are. An ideal trading strategy would also prevent (or rather minimize) losses.

Your strategy should take into account the size of your transactions. Conducting a lot of different trades is generally more successful than lumping everything into one giant trade. This approach fosters discipline, and it also spreads out the risk, lowering the possibility that any one loss will wipe out a large chunk of your capital. The basis of any good trading strategy is a combination of discipline and smart money management.

Key Four: Get lots of practice at the beginning.

Be sure to do paper trading until you thoroughly understand how everything works. This is a great way to build your trading skills, learn how the market functions and get comfortable with the software and tools you’ll be using. Of course, paper trading cannot prepare you for the emotional ups and downs of watching big waves of money leaving your account or rolling into it. That only comes when your own actual money is on the line. However, paper trading will build the daily skill sets you’ll need for investing. A number of brokers offer trial accounts with free paper trading. Use one or more of them. They’ll give you practice and experience before you dive in and risk your own money.

Key Five: Choose a Forex dealer who is a good match for you.

Do your due diligence… check that they are registered and in good standing. And check their reputation around the industry. Stay very far away from any dealer whose investment schemes defy logic and just sound too good to be true. Often the dazzling, over-the-top offers and the breathless, hyped-up sales pages are plenty of warning. Always be sure to carefully vet any investment offer – and then sleep on it – before you get started.

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Forex trading may seem easy and manageable. But the emotional stress, the demands and challenges of being a Forex trader requires more than just the knowledge of the market. It requires more than just a keen and sensible head for business. It’s all about a game plan. And for that, you’ll definitely need a profitable trading strategy.

9-Step Guide for Choosing a Forex Broker

2009-12-11T05:38:00.000-08:00

9-Step Guide for Choosing a Forex Broker

If you’re new to Forex trading your first and most important goal is choosing a Forex broker to work with. And the 3 most basic characteristics you should check out first are: reputation, experience and track record. Obviously, there are also other important qualities, and we’ll get to those in a minute, but everything else depends on that 3-part foundation.

Finding a Forex Broker

The safest approach to choosing a Forex broker is to contact the authority or agency that licenses brokers in your area. (And an extra little side tip – be especially careful when checking the background of any broker who approaches you with some dazzling, over-the-top offer, or who guarantees you’re certain to have success and sure winnings.) Start cautiously… don’t allow yourself to be rushed into decisions. That’s how many beginners are taken advantage of: many scam artists specialize in preying on the inexperienced because they’re so eager to get started that they often throw caution and common sense aside.

1. Check Their Reputation

The Forex trading world is a fairly tight community. Use that fact for your protection. After you’ve done your initial research, work up a shortlist of 3 brokers you consider strong candidates. Then begin your due diligence. Research them online. Ask around for word-of-mouth opinions. And definitely contact governing authorities to check for a pattern of complaints in their history. Ask other traders about the experiences they’ve had with the brokers you’re considering. Ask friends and others with experience in Forex trading to recommend a reputable broker. Find out if they’re easy to deal with by first contacting their customer service desk with ALL the questions you have. If their answers are slow (or sketchy), it’s better to steer clear.

2. Check Their System of Safeguards

Don’t go near a Forex broker who has few safeguards for protecting you as a customer. Find out the name and contact information for their regulatory body. What protection does that organization provide – and is it hard to shake it loose? Are the funds of clients shielded from possible fraud or bankruptcy?

3. Do They Offer a Free Trial Account?

A very common introductory inducement is a free trial trading account. Basically they’re giving you “play money” to practice with. When choosing a Forex broker this trial account gives you an excellent opportunity to learn exactly how the system works and to see how you might profit or lose when you move on to using real money. Some brokers also offer training videos for beginners, or even send out an actual Forex broker to help you in person. The level of service the broker provides during your free trial is a good indicator of how you’ll be treated once you sign up as a customer. You’ll also learn how their system functions, meaning you’ll already know your way around before your own money hits the table.

4. Check Out the Extras They Offer

Most of the reputable and trustworthy brokers offer pretty much the same kinds of tools for you to work with. Some processing fees are a bit higher, some a bit lower. Some offer free trading advice while others offer the simulated trading mentioned above with a practice bankroll of $50,000 or so. Most reputable Forex brokers will also have basic lessons in online trading available. The training may come to you via email or by DVD. Also check to make sure they can provide customer service 24 hours a day.

5. How Secure Is Their Online Server?

One of the most crucial elements is security. Your Forex broker absolutely must provide a fully secure trading environment to keep your personal details private and the money you invest safe from theft.

6. Check for Hidden Charges

Are the Forex brokers you’re investigating totally upfront regarding costs? It’s a good idea to ask them specifically about hidden costs and also whether they offer special terms for more frequent trading. You have a right to expect – and receive – full transparency from your broker in all operations. When you’re choosing a Forex broker, any questions about costs, returns or other information should be met with prompt, understandable and honest answers. If they waffle, drop them.

7. Compare Several Free Trial Offers

Actually using a number of different free trial offers is one of the best ways to compare the look and feel of each Forex broker’s online trading platform. Is it a good fit? Is one of the interfaces more logical-seeming or more comfortable than the others? Check to see which you’d prefer using long-term. Some websites even offer charts comparing the features between larger brokers so you can instantly see which services are offered and how their operations differ.

8. Are They Far Away or Local?

Your safest choice is to choose a Forex broker in your local area. That way, you and your broker are both close to the authorities you’d be contacting for help if anything went wrong. Another factor is the currency your broker uses – is it the same as your local currency? An offshore broker would be denominating all transactions in their local currency, which could involve extra fees and affect your returns.

9. Is Their Trading Platform a Good Fit for You?

Another vitally important factor to consider when choosing your Forex broker is the trading platform they use. This includes the currency pairs offered and their typical spread (difference between bid price and asking price). Once you’ve opened and used practice accounts with a few brokers, you’ll have enough experience to judge which platform is the best fit for you.

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Remember, the broker you select is the person who will stand beside you in any success or failure you have. Don’t opt for failure before you even begin by choosing a bad broker with a disreputable or dishonest record. Thoroughly research all the brokers on your shortlist and be sure to spend some time with their practice accounts. This ensures that, when choosing a Forex broker, you’ll know how they operate before you ever spend a penny.

7 Sensible Tips to Cut Losses in Forex Trading

2009-12-11T05:33:00.000-08:00

7 Sensible Tips to Cut Losses in Forex Trading

I’ve got some bad news for you and some good news. The bad news is, losses in Forex trading are unavoidable. Even the smartest, most experienced traders in the world have losses. That’s because volatility in the markets makes it next to impossible to predict with 100% accuracy. But there’s also some good news – you can cut losses in Forex trading.

It’s true that you can’t totally eliminate losses, but you can minimize them. You can take intelligent measures to protect yourself. Then, as soon as a loss strikes, you can shift away and avoid the full impact. And that’s what we’ll talk about here – how to cut losses in Forex trading and minimize their impact when they do occur so that they never get a chance to bleed you dry.

Here are 7 sensible things you can do to cut your losses in Forex trading before they happen.

Tip 1. Lose Your Fear of Experiencing Losses

Losses are simply part of the ups and downs of any market, and it’s important to accept this idea so that you can begin to factor it into your planning and your trading strategy. Reckless Forex traders who deny this reality tend to have more losses than profits

Tip 2. Never Hang on to a Losing Position

As soon as it’s clear you’re in a losing position, get out and move on. Never let your failing trades die a slow death, and never try to bring them back to life with “just a little more money.” Kill ‘em off quick. Then treat each one as a learning experience by reviewing what went wrong and decide how to avoid a repeat.

Tip 3. Have Your Broker Close Losing Positions

Issue standard instructions to your broker that all losing positions must be closed. There is never a good reason to let losses waste perfectly good money. A reliable broker will make the margin calls necessary to stop your losses, thus protecting your account from being drained.

What is a margin call?

When you open a trading position, you can designate part of your deposit as a collateral deposit – your margin – which will be set aside to be protected. On a $3,000 account, for example, your margin might be set at $750. You will use the $2,250 to trade, and if your losses ever reach that level, the broker will close your position, thus protecting you from losing the remaining balance. This prevents your account from going into negative figures, which you would be required to repay.

Tip 4. Caution Is Just Good Sense

Especially when you’re just beginning, trade only with the market trends. Newbie traders don’t yet have the experience or the judgment to predict how prices will move. Even veteran traders experience more losses when trying to predict trends. Try to find the wave of an upward trend and ride it when it’s already underway, then exit trading when it begins to turn negative. That may sound boring, but it’s much, much safer.

Tip 5. Loyalty Is a Bad Thing in Forex Trading

When it comes to trades, a loser is a loser is a loser. Loyalty to a particular trade, or falling in love with it, is very unwise. No trade you ever make will be loyal to you, and it’s important to understand this at the gut level. Forex trading is a volatile and fickle environment, with positions shifting constantly. What brings you success one day might drop you cold the next. In fact, it has been said that Forex trading is the world’s worst place for emotions because they cloud your judgment. It’s simple, dump the failures and ride your successes – and only your successes.

Tip 6. This Is Not the Place to Get Rich Quick

Ignore stories of overnight millionaires. They’re usually apocryphal. Success in Forex trading requires you to minimize any loss that occurs and to behave as you would with any business. Plan on being in business long term, and discard stories of making it big overnight (somebody’s usually trying to sell you something when you hear one of those stories). Jumping into Forex trading like a gung-ho warrior is setting yourself up to lose big and fast. The real, consistent winners are the ones who use common sense, patience and a businesslike attitude.

Tip 7. You’re the Only One Responsible

If you try to rely on advice from strangers (and possible sharks), it’s not their responsibility when you lose. It’s yours, and yours alone. Invest the time necessary to learn what’s needed to keep your losses in Forex trading as small as possible. Use every trade, whether loss or gain, to increase your knowledge.

This also means, of course, that it’s your responsibility – and only yours – both when things go wrong and when they go right. Since you’re going to end up with both the blame and the credit for results, it’s a good idea to work toward more good trades, more profits and more security. Once you accept all responsibility, you’re no longer a victim. When the market doesn’t go your way, you never need to look for somebody to blame. You simply dust yourself off, learn something from the situation, make adjustments, and go try it again.

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There is no profit in dwelling on your losses, but there is a great deal of profit in learning from them. Losses happen and that’s that. But you can cut losses in Forex trading. Learn what you can from them, understand what happened, then move on. Remember, the more quickly you move on, the more quickly you’ll have a chance to recover those losses and move firmly into profit.

The Forex Trading Beginner

2009-12-11T05:32:00.001-08:00

The Forex Trading Beginner

In its simplest terms, Forex trading is swapping one handful of money for another handful of money. The good news is, if you, as a Forex trading beginner, do it right, you’ll actually make a profit from it. You literally buy one currency and sell another, guided by which transaction seems most likely to be profitable for you.

The currencies of countries all over the world are constantly changing in value, moving up and down in relation to each other. This goes on all day, every day, throughout the year. The direction a currency moves is influenced by the political, economic (and even weather) events in that country. If there is a “secret” for the Forex trading beginner… it is to keep yourself informed about these movements and to learn when is the most profitable time to buy a specific currency and when you should sell.

Before Forex Trading – A Brief History

In earliest times, before money even existed, exchanging one thing for another thing was the normal way to trade. Today we call this bartering, and it began with daily necessities – my fish for your corn, my spices for your fabric – and it gradually grew too complicated for swapping one kind of goods for another. Eventually, people found it simpler to use jewels and precious metals like silver and gold to symbolize their goods. Even later, civilizations found that they needed some kind of standardized system, so money (coins) were invented. But as trade continued to grow, even coins became too bulky and heavy, so scrip, or paper money was developed.

Now, fast forward through history and it gradually became useful to actually trade the currencies themselves. The relative values of those currencies came to depend on increasingly intangible factors such as the size of their countries’ economies and how politically stable each country was.

Now enter currency trading. For the Forex trading beginner, it can all be pretty confusing with the constant barrage of numbers coming at you from every direction. Until you get past this early confusion, it’s very wise to use a broker for your Forex trading. Unless you’re a licensed plumber or electrician, for example, you probably wouldn’t tackle your own home remodeling projects. And you certainly wouldn’t do your own brain surgery, no matter how qualified you are. Likewise, instead of just jumping in and learning Forex trading by trial and error, it would be good to put yourself into the hands of a good reputable broker who can teach you how it all works.

What’s the Appeal of Forex Trading?

Currency trading can seem like a game to those with a little discretionary cash to risk. But remember, it is very easy for beginners (actually for anyone) to lose more money than they gain, so never play with more than you can afford to lose (because that could easily happen). The Forex market is really a lot of different currency markets in various countries distributed all around the world, so at least one of those markets is open (and often several) at any one time, 24 hours a day. This means that Forex trading goes on constantly round the clock, Monday through Friday, and Forex dealers are always available to help you invest.

What is the Risk?

A country’s currency can, without warning, suddenly rise or fall, triggered by events happening within that country. Such events can include (but are not limited to) the outbreak of war, a change of administrations, hurricane, earthquake, or any other disaster that could impact communication, transportation and crops or resources. This illustrates just how volatile the currencies market actually is. You never know what might come next, so this morning’s investment could turn good or bad within minutes, depending on an amazing range of events.

While risk scares many people away from Forex trading, this very same risk actually appeals to others. It may be like sitting at a giant slot machine, and instead of just 3 pictures to line up, the Forex trading beginner could have 20 of them. Or 50.

However, currency trading is not a 100% random gamble. Many ways to measure, quantify and analyze have been developed, and this tends to partially equalize the odds for the careful investor. This makes it a little more of a numbers and logic game. Mastering these methods of analyzing takes experience, but without that experience, a beginning investor could very quickly lose both savings and self confidence.

Vulnerable to Scams

Anywhere there’s money, you’ll find scams. That’s one of the facts of life. Since Forex trading offers at least the potential to make a million dollars from an initial investment of $1,000, it sounds like a very sweet deal to the Forex trading beginner. But this is exactly how over-excited, under-cautious new investors get swept away by stories of amazing riches. Clever scammers know this, so they use the impatience and naivety of newcomers to separate them from their money.

Remember – it is written that a fool and his money are soon parted. It doesn’t say he can’t get money… just that he won’t keep it long.

Low Entry Requirements

The initial deposits required for entering are quite small, so it’s easy to start playing the currencies market. And thanks to the low margin requirements, even small-time Mom-and-Pop investors can get into the game without putting their entire life savings at risk. At the same time, however, it can all feel just a bit TOO easy, and if an investor has a run of good returns at the beginning, he may be tempted to risk more than he can really afford.

What Is Bought and Sold?

All Forex trading is done with pairs of currencies. You simultaneously buy one currency and sell the other. The most commonly traded currency pairs are the Euro and US dollar, the US dollar and Japanese yen, the US dollar and Swiss franc, and the British pound and US dollar.

As with any new activity, especially an activity that involves a degree of financial risk, you should start by taking only baby steps. The safest way to begin Forex trading is to study, practice and gain an understanding of how things are done before you put money into the game.

Do your homework, look for a course, or dig into online Forex market websites. Never even think about using a broker or trader who isn’t backed up by a reputable company. The Forex trading beginner may find it all very thrilling, but it can also be disastrous at times. Approach it the smart way. Start small, be cautious and gradually build up your experience.

Forex Trading – How to be Successful

2009-12-11T04:13:00.000-08:00

Forex Trading – How to be Successful

If you think that knowing the mechanics of Forex trading is all you’ll need to build a success, you’ll be disappointed. The know-how you need involves more than just learning a set of mechanical skills. To truly master this rich and constantly changing market, it’s also necessary to understand some of the background involved in currency trading before you’ll ever begin to earn big money.

Simply knowing how to trade currencies and being familiar with the major currencies traded (US dollar, Euro, Japanese Yen, etc.) is only a start. It’s also essential to really grasp when to trade and which currencies to trade.

You Need an Edge

In other words you need to develop a number of trading strategies. So, what are typical Forex trading strategies? Below are a few money making strategies to help guide you when trading.

If correctly used, these strategies can earn you very large sums of money relatively quickly. And to get the most from these suggestions, you must first “get” that Forex trading is very unlike stock trading, meaning that the strategies will be quite different. So if you have experience with stocks, you’re going to have to partly unlearn what you already know.

The first strategy is the leverage trading strategy. In the leverage strategy, you as a currency investor borrow money to power up your earning potential.

Long Odds

This strategy makes it possible for you to leverage your money at a 1:100 ratio. Be aware, though, that there’s risk here. This is why you should learn to use stop loss orders to minimize the risk as well as to minimize losses. The leverage strategy is one of the most commonly used strategies among Forex traders for maximizing profits.

Stop It!

Next is the stop loss order strategy. As a Forex trader, you will select a predetermined point in the trade beyond which you will not trade. You’ll use this strategy to minimize both your risk and your losses. This strategy can sometimes backfire on you, however. For example, if the value of the currency rises higher than you expected, the stop loss order can interrupt what would have been an even more profitable trade.

Of course it’s up to you to decide if you will be using this strategy. Hint: the risk in NOT using it is almost always greater than the risk if you DO use it.

Wait – There’s More

Here are a couple of other tips to remember for earning good profits in the market:

The first and the last ticks are usually the most expensive. The rule of thumb is to get in a little late and to get out a bit early.

Never ever throw more money into a losing position. If you’re losing, simply get out – right now – and go find another trade.

Bet with, not against. Select trades that move in the same direction as the prevailing trend. This minimizes the risk of losing money while maximizing your chances of profits.

Seeing Into the Future

A number of tools are available to guide your decisions when trading in the Forex market. One is Forex charts. Charts are probably the most important tool you can use to visualize market trends and project the most likely future value of a currency. Although charts aren’t 100% accurate, you can use them as a guide to grasping what’s happening in the market.

You’ll need to learn how to read the different charts involved in the Forex market. There are daily charts, hourly charts, 15 minute charts… and even 5 minute charts when you want a really closeup look at the action. You can compare the data in each of the charts to spot potentially profitable market trends.

This can also help you minimize the risk when trading currencies. Learning how to read charts effectively and rapidly will put you well on your way to success as a Forex trader.

Keep these strategies and tips in mind and you’ll stand a better chance of minimizing the risks in trading and maximizing your profit potential. Depending on your skills and how you apply your strategies, you really can make large profits in the Forex market.

And the Big One

Ironically, however, to be a truly successful Forex trader, you must first accept the fact that sometimes you’re going to lose money. The trick is to take it in stride, as a normal part of Forex trading. Master that “trick” and you’ll never get discouraged when it happens.

Analyze any mistakes you make, think how you’ll avoid it happening again. Then get back in, recoup your losses, and go right on trading.

Online Forex Trading Tips

2009-12-11T03:49:00.000-08:00

Online Forex Trading Tips

Online Forex trading covers lots of forms with an incredibly wide specificity. In fact there is one general solution, and no matter what system you choose, it has to be customized to your needs and business specifics. Guidelines make the investment process smoother and allow for a smooth course of any online Forex trading system. Here is what you can do to improve your online Forex trading.

Investors usually have two options when choosing online Forex trading: to work on their own, with the help of some tools, or to get professional account management in collaboration with a dealer or a brokerage firm. If you have solid Forex knowledge, you may try your hand at transactions independently, but if you are a beginner, you should search for a reliable company that can help you place the money well. The market offers no guarantees, and that profit and loss are the two sides of the same coin.

When you add to losing positions, your trade can abruptly come to a halt. Do not continue to spend money on a position on which you have already lost some money. Small losses can become huge losses if you don’t know when to stop. Awareness of where you stand on the market and a profound understanding of foreign exchange mechanisms will allow you to keep your online Forex trading within profitable limits.

When do you take your profits? Decisions ought to be based on market information. If the variables are too expensive for you, do not trade, and most of all avoid descending trends for investments. Market changes direction very often and tides cannot be anticipated unless you have incredible luck. Therefore, online Forex trading involves both assumed risks and facts.

You may sometimes make poor decisions. Some days are better for online Forex trading than others. Maybe you don’t have enough money in the account, or when you don’t have the time for a careful analysis of the indicators. Furthermore, adapt to sudden changes as the right way to keep losses minimum. Moreover, the rest of the markets are different from online Forex trading, and you should not try to use the same rules for different markets.

Making the transition from Paper Trading to Real currency trading

2009-12-11T03:35:00.001-08:00

Making the transition from Paper Trading to Real currency trading

Assuming that you are feeling you’re ready to delve into the forex market, take a step backwards at the moment and think this through fully : have you got all the knowledge that you need? Have you got all the tools that you need? Have you at least gathered some experience with paper trading?

If you answered ‘yes’ to all 3 of the questions that we just posed, then you almost certainly are prepared to start trading in reality.

However even though you’ve taken each preparatory step possible, the truth is that there is more to come and the real educational process starts from the moment you make your first trade onwards.

For one thing, you’re now basically dealing with real cash. Your money. And that is going to prove to feel different from back when you were just making paper trades with virtual cash. Now you are truly going to be risking something valuable to you, and you are sure to probably feel a touch nervous.

Honestly talking, feeling apprehensive isn’t bad, as long as you be careful not to let it hamper your decision making process. If your apprehensiveness just makes you extra-careful, that’s’s fine. But if you find that you are ‘chickening out’ of making trades that you knew were good but did not wish to take a risk on, then you’re going to finish up having plenty of regrets.

Also, now that you are essentially trading cash of your own, when you do make a loss the frustration factor is also going to be amplified tenfold. Once again, frustration in itself isn’t a bad thing, and can often help you to ensure that you’re not making the same mistake twice.

However if you let each loss that you make get to you, you will quickly find that you’re at your wits end and everything that seemed to be so straightforward while you were paper trading suddenly winds up feeling that much more complex.

All noted and done, the core point that we are driving at is this : Paper trading and real foreign exchange trading are 2 different ball games. Sure, paper trading is an important preparation vis the talents that you require to play the foreign exchange market, but it remains just like a simulation, and doesn’t compare to the real thing.

But because you’ve gone through that simulation, you need to have the talents you need right there with you, and the one thing that is standing in your way is getting used to the feelings and pitfalls that come as part and parcel of trading for real .

Trust yourself and the experience that you have built up while you were paper trading. Imagine as though you were still doing that, and remember how successful you were at it. Then, try your best to match exactly what you were doing formerly.

Sure, you may still fail here and there, but in the longer term the actual mechanisms of the trades are no different, and so, sooner or later, you will find yourself beginning to profit just like you probably did in the paper trading run.

Once you’ve accomplished that, you would have successfully made the transition!

Forex software system

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An overview into modern Forex software systems and the Easy-Forex Trading Platform

Foreign Exchange (Forex) software is designed to allow end users to trade currencies online in a real time, secure, private and efficient manner.

The major issues that a foreign exchange software platform should address are:

•Real-time- providing constantly up-to-date exchange rates in increments of a few seconds. These rates, in contrast to traditional bank rates, are actual, tradable Forex quotes. Once you decide to trade on a currency you can "lock" in a rate and this will be the actual rate at which the transaction will take place.

•Security, privacy and data integrity- for any user performing financial transactions over the Internet, this is a main issue. This point is further emphasized with Forex trading software, where the amounts traded may be significant. Forex trading software must be designed with the highest level of data security, integrity and privacy. Most systems use at least one layer of at least 64-bit SSL encryption, as well as various data backup and recovery methods and procedures.

•24x7 availability - providing updated Forex quotes 24x7 and allowing a trade any time of the week.

Web-based versus downloaded Forex softwareForex software comes in two main forms - web-based and client-side Forex software:

Web-based Forex software systemWeb-based Forex software means that all the operations are performed on the vendor's website, pending user verification. That means that users are offered a familiar, web-based interface, to perform their desired operations. The advantages of such a system are:

•No need to download and install proprietary software

•Log in anywhere, anytime. A web-based system allows instant access to a user account, from any Internet connected computer.

•Familiar and friendly, web-based user interface.

Client side Forex software systemClient-side Forex software is a program that a user downloads and installs to gain access to the Forex markets. The software communicates with the vendor's server offering Forex services.

Easy-Forex Trading PlatformEasy-Forex

offers a web-based Forex trading system. We believe in making foreign exchange easy, thus we offer a friendly, fast, secure, no-download, web-based Forex system to allow even the novice Forex investor easy access to the Forex markets.

With regard to our backend, Easy-Forex has two different server farms in different locations to ensure backup and recovery. Each server farm uses load-balancing software to balance the load handled by each node and to ensure an immediate, real time response to any user operation.

We accept credit cards, pending approval by the credit card company. Please read more about the robustness of our system in the sections describing the security and real-time aspects of our Forex software.

3 unchanging rules in currency trading

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Forex trading is always based on ever changing scenarios of world currencies. Hence, each day is always a new day for forex trading. However, there are 3 unchanging rules in currency trading which we should always remember for success.

The first rule is to do forex trading based on trends. Many experts compare trading trends to the intermittent waves of the sea - it is always impractical to go against them, there's too much added risks, and we'll never know when a big one would topple our boat. The same goes for the currency market. Whether we decide to invest long or short term it's always best to do so based on the current trend.

Hence, many forex trading experts recommend on studying how to read currency trends. A trend is when a specific pattern of gains or losses becomes apparent in the forex market as currency developments unfold during the day. Each day has a definite and different trend in forex trading; sometimes, trends even differ at different times of the day. Trends can suddenly change from the pattern emerging in the morning from the one in the afternoon.

The second unchanging rule is to always limit losses. This may be easier said than done, especially when forex trading is known to be volatile. Remember that about a trillion traders around the globe invest in the currency market daily and no single force or power on earth can influence or monopolize such market. But we may lessen the probability of losses if we carefully lay out a plan and stick to it.

Most experts will tell us the importance of entry and exit plans in forex trading. Other professional traders insist that we should zero in on exit rather than entry strategies. Entry allows good positioning; exit determines profitability both from the previous and coming forex investment. The point is to have a plan. We may adjust accordingly as the trading progresses, but everything should be proceeding systematically. Mobilize investments where gains are and withdraw from where the losses are.

Third and last rule, we must be aware of where the resistance and support are in the forex trading processes. Trading prices fluctuate due to supports and resistances and buying and selling trends. The key here is to maximize earnings during resistance and minimize losses during support.

These three rules are always decisive in forex trading. We should take note of them as we go through the rigors and complexities of currency trading.

Forex trading strategy #1 (Fast moving averages crossover)

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Forex trading strategy #1

(Fast moving averages crossover)

Trading systems based on fast moving averages are quite

easy to follow.

Let's take a look at this simple system.

Currency pairs: ANY

Time frame chart: 1 hour or 15 minute chart.

Indicators: 10 EMA, 25 EMA, 50 EMA.

Entry rules: When 10 EMA goes through 25 EMA and continues

through 50 EMA, BUY/SELL in the direction of 10 EMA once it

clearly makes it through 50 EMA. (Just wait for the current price bar to close on the

opposite site of 50 EMA. This waiting helps to avoid false signals).

Exit rules:

option1: exit when 10 EMA crosses 25 EMA again.

option2: exit when 10 EMA returns and touches 50 EMA (again it is suggested to wait

until the current price bar after so called “touch” has been closed on the opposite side

of 50 EMA).

Advantages: it is easy to use, and it gives very good results when the market is

trending, during big price break-outs and big price moves.

Disadvantages: Fast moving average indicator is a follow-up indicator or it is

also called lagging indicator, which means it does not predict the future market

directions, but rather reflects current situation on the market. This characteristic

makes it vulnerable. First, because it can change its signals any time, second –

you need to watch it all the time, third - when market trades sideways

(does not trending) with very little fluctuation in price it can give many

false signals, so it is not suggested to use it during such period

Trading Methods, Techniques and Ideas

2009-12-10T11:08:00.000-08:00

Dear Friends

I'm glad to open a new section of our website dedicated to trading methods, techniques and ideas.

HERE me and my team, and hopefully you as well, will besharing our favorite trading methods, for example, the best method to exit a trade, the best method to filter trading signals, a favorite method to identify ranging markets, a favorite entry method etc.

As you can see, it is all about splitting a trading process into distinctive parts and perfecting each part separately.

Creating a complete system takes time, focusing on one part of it is much easier and, in fact, oftentimes is more effective; and that's what we'll be doing here!

I hope to make this page one of you favorite pages and see you among our regular visitors and active participants

Discover How You Can Make $1000 To $2000 Per Day On Autopilot With My FREE Forex Money System - ForexRich

2009-12-10T09:43:00.000-08:00

Discover How You Can Make $1000 To $2000 Per Day On Autopilot With My FREE Forex Money System - ForexRich

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It's really the single greatest (and by far the EASIEST!) thing in the World to do!

What's Forex Market?

Markets are places to trade goods, the same goes with Forex. The Forex goods are the currency of various countries,

You buy Euro, paying with US dollars, or you sell Japanese Yens for Canidian dollars. That's all. All you need is a computer and internet connection, you can trade currencies from anywhere of the world, even a 13 year old kid can learn how to trade in Forex market in 10 minutes.

And What's ForexRich?

ForexRich is a system that I develop to automate the process of making big money with Forex .

With this system, you can start making money online immdiately and make $1000 to $2000 per day on autopilot!

Many people don't know where to start to make money with Forex, so I developed the system to automate the process of making big money with Forex in a very short period of time.

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How to Profit Trading Forex

2009-12-10T09:14:00.000-08:00

How to Profit Trading Forex

Basic yet important things every trader should know.

If you hear from anyone that making money in Forex is easy, do not believe it. It is a myth. The truth is – being profitable in Forex requires a lot of work, dedication, practice, more than a good discipline, sharp knowledge of money management and understanding of the psychology of the currency market. Not so little and therefore not so easy...

Trading Forex was never about gambling

Trading is not a gambling by guessing where the price will move, although there are many traders (mostly beginners) that are exactly gambling... Trading currencies on the Forex market requires logical and analytical calculations based either on fundamental or technical analysis of price moves.

Making money in Forex requires a set of rules

Making money starts with a plan to make money. Such plan is of enormous importance when it comes to trading foreign currencies. But, besides creating a plan, a trader needs constantly follow it. How often trader brake his rules will affect how much money he will make trading Forex. Sounds simple: create and follow... However, there is a real challenge when trader follows the rules but rules fail to make money... it happens inevitably for every trading system known. If system had proven to be successful, sticking to the trading plan and firmly following the rules even when losing money will eventually yield profitable outcome. Having strong trading discipline and taking losses when necessary is a sign of serious trading approach.

Succeeding in Forex by using money management

To profit in Forex sticking to a set of rules is not enough. Good money management is also needed. Knowledge of how much to trade per each open position and where and when to stop – is what separates successful trader from bankrupt trader. Many beginner traders over-leverage themselves being attracted by big and promising leverages offered by Forex brokers. The truth is that a big leverage is not only about a big win, but also when it comes to be so – a big loss. Leverage higher than 1:20 will not attract serious investors.

Know your losses, before counting profits

Opening a new trading position must be first of all about how much money may be lost and then what would be the profits. Good money management implies that trader is expecting to win at least twice as much as he could lose on each trade. This way being right only 50% of the time will still make trading profitable.
Using good money management in Forex trading is hundred times more important than having any great trading system itself.

Forex traders' mind

And last but not least is trader’s psychology. Going in profit or losing money always create psychological challenge for trader to act responsively. Not being greedy and also cutting losses short is the key to this game.
Trading Forex you need to accept losses. They are inevitable and occur in any money involving operations. Therefore, instead of battling losses trader needs to accurately analyze unfavorable situations and take lessons from losing trades.
Every experienced trader would also suggest – there must be no attempts for revenge when losing money. Trying to return your money at any cost will put a trader in deeper troubles. Instead, the trader should return to trading rules and honestly analyze own mistakes, accept that the market was not in his favor and try to improve the trading plan for future success.

Successful traders are learners, what about you?

And finally, even successful traders are constant learners. Up-to-date knowledge about Forex market opportunities is what also makes them continuously profitable in their trading career.

Would you like to find out what online research we have done recently?
Check out.

Happy learning and trading!

What is FOREX?

2009-12-10T08:08:00.000-08:00

What is FOREX?

Submitted by Edward Revy on January 28, 2007 - 08:06.

The term “FOREX” stands for Foreign Exchange

FOREX (or FX as a short abbreviation) is a global currency exchange market where foreign currencies from all over the world are bought and sold for profit.

FOREX is the largest and most liquid market in the world

Forex is the largest and most liquid market in the world where trillions of dollars exchanges take place every day. That’s an enormous money flow. No stock market exchange in the world come close to these numbers.

Currencies in the Forex market are traded 24 hours a day 7 days a week. Market literally follows the sun around the world. Trading moves from major banking centers of the United States to Australia and New Zealand, then to the Far East, gets to Europe and finally returns back to the States.

Trading FOREX is all about exchanging currencies

Trading on Foreign exchange market simply means buying of one currency and selling another at the same time. In other words, the currency of one country is exchanged for currency of another country at the current exchange rates.

Foreign currencies are always traded in pairs - EUR/USD, GBP/USD, EUR/JPY etc. Around 70% of all transactions made with major currencies like U.S. dollar, Australian Dollar, British Pound, Swiss Franc and Japanese Yen.

Nowadays FOREX is available to small investors

While in the past Forex market was not available to small investors (individuals) due to large minimum transaction sizes, today Forex brokers are able to break those large sizes into a smaller unit lots and thus offer small investors an opportunity to buy or sell currencies side by side with regular core Forex market investors such as large banks, central banks, multinational corporations, hedge funds and other financial institutions.

Being incompetent in FOREX can be expensive

Forex market is huge and plunging into trading without knowing its rules, will be equal to swimming in the pool with ocean sharks. The dominant Forex players such as banks and hedge funds have a power to influence market moves and currencies exchange rates. For inexperienced traders investing own money in such game is as risky and uncertain as gambling. It could turn into a million fortune only in a couple of weeks or become a disaster for those who was ignorant in learning.

Forex brokers offer very big leverage to individual investors. A trader can trade at huge leverage as much as 300 to 1, meaning that for every dollar trader puts in for trading he can trade $300. For example, having an account equal to $1,000 trader can trade as much as $300,000.
It is a huge opportunity, but it also is very dangerous. No experienced trader will ever trade with such big leverage unless he has a really strong argument for a particular trade, and even after that it is an enormous risk.

Is trading FOREX profitable?

Trading in the Forex market is profitable, but only for 5% out of all beginner traders who start trading Forex. New traders need to learn the basics of trading well, and practice a lot on demo accounts before going real.

Like in every business, when trading money in Forex, trader gets paid depending on his knowledge and trading experience.

Watch a video: "What is the FOREX market?"

It tells in simple words what Forex market is, describes why people choose to trade Forex,
and what are advantages and disadvantages of trading Forex.
*The video "What is Forex" is brought by a third party.
We do not promote or try to recommend any products mentioned in the video.

IN the name of ALLAH

2009-12-03T09:54:00.000-08:00

IN the name of ALLAH