Make a Fortune in Online Forex Trading

Get Smart And Learn About Forex Trading Terminology

noreply@blogger.com (Little Monster) — Fri, 16 Jul 2010 17:54:00 +0000

Congratulations on taking the next step in learning about Forex trading markets and how to make money trading global currencies. The basic concept and principals of Forex are pretty simple. It gets a bit more complex as you go along, but stay with us and soon you'll be buying and selling like the pros.

The road to charting trends and understanding technical analysis or even developing your own trading strategy starts with some further understanding of the process. So, let's start with understanding how to read Forex language and quotes.

Most traders focus on "The Majors", which are the world's most liquid currency pairs. Over 85% of Forex trading across the world every day is done in the US Dollar, the Canadian Dollar, British Pound, Euro, Japanese Yen, Swiss Franc and the Australian Dollar.

When reading a Forex quote, there are two things to remember. Currencies are traded in pairs, so quotes always appear as two numbers The first currency listed is the base currency. In most cases, the US Dollar is used as the base to which all others are compared. The value of the base is always one. When the second number goes up, that means that the US Dollar has strengthened and the other currency has lost value. To clarify, a rising quote indicates that the US Dollar can buy more, or is worth more, than the other currency.

Now the US Dollar is used as a standard in Forex trading, however, there are some exceptions. When a different currency is used as the base in a quote, these are referred to as cross currencies. Those are British pounds(GBP) the Australian dollar (AUD) and the Euro (EUR). When these are paired, the quote is based on the first currency. A rising quote indicates that the other currency in the pair is strengthening which means the US Dollar is weakening.

You may have experience with the stock market and may be familiar with the process of the "bid" and the "ask". Again, because trading is done is pairs, a Forex quote has two sides, and these are the "bid" and the "ask", which are separated by the "spread". The bid price is for selling your base and the ask price is for buying your base currency. The spread is, obviously, the difference in the amount between the bid and the ask. This is the cost of trading. In Forex trading, the spreads are narrower that those in other markets so trading on small price movements can be cost effective.

If this information intrigues you, there are many Forex websites which can help you get started in the fascinating world of foreign exchange. Education is the key, so keep reading and researching and soon you'll be on your way to making some serious money.

How To Save Yourself from Forex Scam

noreply@blogger.com (Little Monster) — Fri, 04 Jun 2010 00:47:00 +0000

Forex trading is one of the best home based online business opportunity you can find today. The Big Sharks know that and use the demand for information about Forex market to get every possible dollar in their hands.

Who are they? The answer is always easy – Follow the Money. There is one player on currency market (and in every other market) who never loses his share in every single trade. Brokerage service on Forex trading is claimed to be commission free, right? But you always pay your minimum 3 to 10 pips fee on each trade. Where those 3 to 10 pips go? Make your best guess!

There is almost no chance for a person who has no idea for the forces driving the Info market to save himself from being robbed and abused by those well advertised money machines. You can see their banners on your e-mail provider. You can watch their infomercials on every TV channel.

Be aware about the presence of those Big Sharks and be sure that the information they will try to sell to you is always available for free online. Most of the time the quality and the real value of that free information is much better than the one you will be asked to pay for.

Here is the story of a good friend of mine. He was very excited about Forex when he first time heard about it. That happened to be on one of those popular free seminars, organized by one of the Big Sharks on that field. So he got the bite without paying attention for the hook in it. He went to the next level – two days training for $1,995, only.

He came back more excited. He opened Forex trading account on that seminar, using a special form provided by the Big Shark Company. They honestly declared that by doing that the broker agrees to pay them one pip from each trade made by the customer recruited by them.

My friend started real trading, constantly increasing the amount of his investment until he put all of his savings into that Forex trading account. Everything was fine until one beautiful day of October. On that day he got the news: his broker filed under chapter 11.

He was broke. I asked him how successful was his trading? His answer was that he actually lost 30% of his investment, from trading, only. He was able to realize know that the training was completely inefficient and not even close enough to start trading with real money.

Something big was missing here. He was missing the big picture in the entire game. His trading experience was very frustrating. After each trade he felt like just hit the wall with a car flying with 100 miles per hour.

A few days ago my friend called me on the phone. He was very enthusiastic about a new Forex training package, just delivered to him. I decided to check it by myself, too.

The package is very detailed. All the missing information about the big picture is there. More than 20 hours of free videos are revealing all you need to know about that business. Zooming towards Forex trading is very smooth and on the level every beginner and advanced trader will tremendously benefit of.

The one unbeatable and shocking advantage of this package is that it delivers information, priced from between $3,000 and $10,000, for free.

Finally we got something valuable about Forex trading, very professionally developed, for free.

Probably, that will put the Big Sharks business on hold for awhile, for the good sake to all of us.

So, be careful and keep an eye on the Internet unlimited free resources if you want to self yourself from the Forex scam.

Happy Forex trading!

The Benefits Of Trading Forex

noreply@blogger.com (Little Monster) — Tue, 01 Jun 2010 23:50:00 +0000

Many people are looking at getting into day trading, and start with studying the Stock Market, and the different stock exchanges. What many don’t realize is that there are different markets and financial instruments that one can profit from. One market that has recently become available to the public to trade is the Foreign Currency Exchange, the FOREX.

The foreign exchange market is the largest financial market in the world. It trades upwards of 3.5 trillion dollars per day, which is approximately 1000 times the volume of the New York Stock Exchange. Quite easily, the foreign exchange market dwarfs the stock market of any country.

So, where is the foreign currency market? Well, unlike the stock exchanges of the world. The foreign currency market is a virtual market that is connected by the internet, phones, and fax.

The advantage of having a worldwide currency market is that it is open 24 hours a day, 5 days a week. Living in the USA, one could trade 24 hours per day Sunday 5pm to Friday 4pm EST. One can only trade stocks during normal market hours, so for those that have jobs during the day, the FOREX market is much more accessible as trading can be done at night or early in the morning before going to work.

Other benefits of the foreign currency exchange include:

1. High Leverage: Currency brokers usually give their traders 100:1 leverage, meaning that if there is $1000.00 in ones account, they will let one control $100,000.00, which allows currency traders to reap large gains from relatively small price movements in the market.

2. High Liquidity: Because the currency market is the largest market in the world with huge daily volumes, one is always able to get in and out of trades as liquidity is never an issue.

3. Stops are always honored: Except in extremely volatile markets, which is rare, limits and stops are always honored. Because of the market’s liquidity and 24 hour continuous trading periods, dangerous trading gaps are eliminated altogether. Orders are executed very quickly, without slippage. In the stock market, it is much more frequent that stops get skipped over as stock prices plummet, but in the FOREX, one can be much more confident that the stops are honored.

4. Entry orders are instant: There is no lag time in placing an order. Orders are processed instantly at the current market price, or the price at which you set the order to enter the market in the future.

5. No Commissions: There are no commissions in currency trading, the broker just takes a small difference between the bid price and the ask price as its fee for the transaction.

As currency markets are some of the most volatile markets, many fundamental variables such as weather, and war affect the price of the currency, however, since there is no one apparent reason much of the time for price movement, the fundamentals get discounted and one can use an almost purely technical approach to trading. This is why the FOREX is considered one of the most predictable trending markets that follows technical analysis methods more than any other market.

As one can see, there are many great benefits to using the FOREX as a highly profitable financial instrument. One can trade from home in their spare time, but first it is important to get a solid education in learning specific FX trading methods. Before trading in a live account, it is important to first get educated using books, or online courses. There are many courses online selling for upwards of $3000.00, but it is not necessary to spend that kind of money to get a good education. Usually the expensive courses come with DVD’s and other expensive items that raise the price. Much of the time one can find a course for under $500 that teaches the exact same content for much less money.

About Forex Ttrading Systems

noreply@blogger.com (Little Monster) — Tue, 18 May 2010 03:00:00 +0000

Forex trading systems are all about getting investments into the foreign markets. Foreign exchange markets are abbreviated to be called Forex. The worldwide trading of stocks in companies and in products happen over the Forex trading system. There are over a trillion dollars traded on the Forex market everyday. You can learn to chart and follow markets in the Forex trade world on your own, or you can rely on a broker as you would in the New York stock exchange. The Forex trading systems are similar in method, but each is a proven method of how to make money, how to learn about companies and how to follow what is going on with the money you are investing in the Forex trading markets.

You can live anywhere in the world and trade stocks and investments in the companies that are involved in the Forex markets. There are no limitations to the money you can make, or the money you can lose. The Forex markets can be tapped into online, over the phone or by contacting a broker in person. If you are interested in making money, you can do it on the Forex market, without having to have employees, or a broker to do this. You can get involved in learning about the investments in the Forex markets, and take on the responsibility for your own money, and making your own money. Many are starting their own businesses using their education and experience on the Forex market to make money.

The Forex market is one that is world wide, so there is sure to be something of interest to just about anyone that wants to expand their investments and expand their learning about money in the world wide markets. There are many experts in the Forex markets, and using the Forex trading system that you feel most comfortable with, you can be a Forex market expert as well.

There are no go betweens, such as large banks or such when you are involved in the Forex market. There are no need for fees and transaction fees when you do your own trading on the Forex markets. You can learn the Forex trading system that best suits your learning needs, and follow it to chart companies, chart growths, and to invest in companies that have a solid future. There are companies and markets through out the world that you can invest with, to increase your wealth and your investment portfolio.

A few different regions of trading exist in the Forex markets, with sessions in Tokyo, Asia Pacific, and in the Americas. Trading is always non-stop, and moving from London to New York, to Tokyo and so on again and again. You can invest in the US dollar, the Euro, the Japanese Yen, or in Swiss Franc among others.

You can find more information on http://www.broker-trading-system.com/ about Forex trading systems.

Awesome Reasons To Trade Forex

noreply@blogger.com (Little Monster) — Mon, 10 May 2010 13:24:00 +0000

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 propriety 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 bias towards either currency moving up or down. This means it’s up to you to choose which currency to buy or sell with. You 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.

A Short Explanation Of “Buying” and “Selling” In Forex Trading

noreply@blogger.com (Little Monster) — Thu, 06 May 2010 01:20:00 +0000

These days everyone is talking about a new profitable activity called Forex trading and the great opportunity this activity represents for people willing to brake free from the corporate world and start working from home or any where else without losing their current lifestyle and even improving it.

Most experienced traders consider that the best and most profitable of the capital markets is the Forex market. For many years Forex trading was the sole domain of major banks, large financial institutions and countries central banks; for example the U.S. Federal Reserve Bank. But these days, thanks to the internet the market has been opened to everyone willing to learn the best techniques in Forex trading and with the intention of making substantial profits as the institutions mentioned above that annually and consistently make pretty high profits from trading in the Foreign Exchange market.

You have many advantages when trading the forex markets, for example; you don't have to worry about fees you may have to pay to your broker; there are also none of the usual fees to which futures and equity traders are accustomed to pay always; no exchange or clearing fees, no NFA or SEC fees.

The forex market has five major currencies: US Dollar, Japanese Yen, British Pound, Euro and the Swiss Franc. It is due to their great popularity in world's commerce transactions and its high activity that these five currencies account for over 70% of North American trading. Of course there are other tradable currencies; they include the Canadian, Australian and New Zealand Dollars. These minor currencies account for 4% - 7% of the total market volume. Together, all this five majors and minors currencies constitute the backbone of the Forex market.

The concept of “Buying” in Forex refers to the acquisition of a particular currency pair to open a trade and “Selling short” refers to the selling of a particular currency to open a trade, i.e, just the opposite. When you Buy, you are expecting the price of the currency pair to increase with time, i.e., you buy cheap to sell high; which is easy to understand. In the case of Selling short, it looks a bit more complicated. Here the way to make money is to initially sell a currency pair that you think will lose value in a given period of time and then, once it happened, you will buy it back at the new price but now you can sell it at the previous greater price the currency had when you opened the trade, so you earn the difference in prices. It may seem kind of tricky when you are starting, but once you are in front of your trading station it will look much simpler.

Things You Need To Know About Forex Trading Ssystems

noreply@blogger.com (Little Monster) — Mon, 03 May 2010 04:11:00 +0000

Forex trading systems are all about getting investments into the foreign markets. Foreign exchange markets are abbreviated to be called Forex. The worldwide trading of stocks in companies and in products happen over the Forex trading system. There are over a trillion dollars traded on the Forex market everyday. You can learn to chart and follow markets in the Forex trade world on your own, or you can rely on a broker as you would in the New York stock exchange. The Forex trading systems are similar in method, but each is a proven method of how to make money, how to learn about companies and how to follow what is going on with the money you are investing in the Forex trading markets.

You can live anywhere in the world and trade stocks and investments in the companies that are involved in the Forex markets. There are no limitations to the money you can make, or the money you can lose. The Forex markets can be tapped into online, over the phone or by contacting a broker in person. If you are interested in making money, you can do it on the Forex market, without having to have employees, or a broker to do this. You can get involved in learning about the investments in the Forex markets, and take on the responsibility for your own money, and making your own money. Many are starting their own businesses using their education and experience on the Forex market to make money.

The Forex market is one that is world wide, so there is sure to be something of interest to just about anyone that wants to expand their investments and expand their learning about money in the world wide markets. There are many experts in the Forex markets, and using the Forex trading system that you feel most comfortable with, you can be a Forex market expert as well.

There are no go between, such as large banks or such when you are involved in the Forex market. There are no need for fees and transaction fees when you do your own trading on the Forex markets. You can learn the Forex trading system that best suits your learning needs, and follow it to chart companies, chart growths, and to invest in companies that have a solid future. There are companies and markets through out the world that you can invest with, to increase your wealth and your investment portfolio.

A few different regions of trading exist in the Forex markets, with sessions in Tokyo, Asia Pacific, and in the Americas. Trading is always non-stop, and moving from London to New York, to Tokyo and so on again and again. You can invest in the US dollar, the Euro, the Japanese Yen, or in Swiss Franc among others.

You can find more information on http://www.broker-trading-system.com/ about Forex trading systems.

Learn Forex Trading To Boost Your Investment Profits

noreply@blogger.com (Little Monster) — Tue, 27 Apr 2010 02:18:00 +0000

If the stock market has been a rough ride this year, learn Forex trading and get your investment portfolio back on track. The benefits are greater than playing the stock market and, unfortunately, the losses can be just as great. However, if you educate yourself and increase your understanding of the market, trading currencies in the Foreign Exchange market could be a very lucrative shift in your investment strategy.

The Forex, or FX which is an abbreviated reference to the Foreign Exchange market, is the biggest money market in the planet. It's even larger than the stock market. Due to the Forex factors, which include low volatility, good liquidity and the ability to leverage, you can gain and lose money very quickly.

The fundamentals of Foreign Exchange are fairly simple. It's the simultaneous purchase of currency, such as the US dollar while selling another currency, such as the Japanese Yen. Currencies are always traded in twos and are traded electronically. The Forex market isn't in a physical place, such as the New York Stock Exchange. They're referred to as an OTC market, or "over-the-counter."

It's important when you're first starting out to identify which global currencies are most often traded. These are generally from countries with stable administrations, credible banking systems and low inflation. Those currencies include the US Dollar, Swiss Franc, Australian and Canadian Dollars and The Euro.

There was a time when money trading was an activity which was restricted to institutions such as banks, hedge funds and big corporations. Because of the Internet, the Forex market is now accessible by individual investors. Some of these traders are in it for the sheer speculation, hoping to cash in on profits gained from instant fluctuations in exchange rates. Others are seeking a way to protect their investments from adverse fluctuations in rates in the future. Businesses in particular fall into this second category trying to hedge against risk should future exchange rates fall dramatically.

The Forex market is open all day long over a five day week. This is to accommodate trades across the globe in all time zones. This allows investors the freedom to trade at any time of the day, capitalizing on a market that changes, virtually, when the wind changes direction.

If the Forex market has captured your imagination, speak to your financial adviser to ensure that you have a good understanding of currency trading. You'll want to minimize your losses when you first get going. There are many websites on the internet where you can practice Forex trading by making simulated trades without using real money.

Be A Forex Expert

noreply@blogger.com (Little Monster) — Wed, 21 Apr 2010 14:45:00 +0000

Any one who has ventured into the real market place would definitely have an idea what a Forex is and share the many promises and possibilities this horizon can bring.

What Is Forex?

FOREX stands for the very popular Foreign Exchange Market. Sometimes, though, people associate it or equate it to mean also currencies.

Basically, Forex is where people trade. The objects of the trading are the different foreign currencies. People buy and sell the currencies.

The exchange market and the trading as we know it today started in the 1970’s. It has no definite place. It has no definite location. The foreign exchange market is found wherever there is a financial center where people conduct constant exchanges and buying and selling.

To ensure definite success in this field, the main goal has to be kept in mind. The keywords to traders in the foreign exchange market are to ‘buy low and sell high.’ This is the way to get the profits coming in.

Why Are People Trading in the Forex?

More and more people are turning into the Forex trading now. It has become popular once again and people want to enjoy the success this can bring.

There are also no strict requirements to join the market. Anybody can enter it and learn how to trade. Some even study beforehand to be prepared for the big trading.

Another good aspect about Forex is the absence of too many fees to be able to join in. There are no commissions, no brokerage fees and no government fees.

The best thing by far is that trading can be done at home. Anyone can initiate a trade online. This spells big for people who stay at home, especially those who do not feel comfortable in engaging on online businesses. With proper training and computer with internet access at hand, success is within the bounds of the home.

How Does One Trade Successfully in the Foreign Exchange Market?

The purpose of ‘to buy low and to sell high’ must be kept in mind when trading in the Forex. This will be the main vision of a trader to succeed.

The next task at hand is to know the trends. This means knowing when a particular currency will buy low or sell high. This is not mere prediction of possible turn of events.

Thus, Forex requires strategies that have been tested to make sure that a decision will be profitable. There are two basic strategies employed in Forex that one can learn from tutorials or from the actual exposure to the market.

The first strategy is the technical analysis.

This provides that a particular price chain reflects all the necessary information regarding the market. This entails a close analysis of the various aspects of the currency like the lowest and highest prices or the opening and closing prices.

The other strategy is the fundamental analysis.

As the name implies, it takes the overall situation. It focuses beyond the currency. It takes into account the situation of the country, economy, politics and even the rumors. Thus this requires more exposure and knowledge from the part of the trader.

Conclusion

The foreign exchange market promises so many possibilities to the trader. Many people may be interested in the Forex but are only afraid to take the first step. This attitude should be turned around. Just have a good vision, take the necessary steps and make the Forex venture a success.

A Guide To Forex Trading

noreply@blogger.com (Little Monster) — Sun, 14 Feb 2010 14:31:00 +0000

Trading money in the global markets can be great way to make more of it, it can also be a lesson in how to lose money quickly. More than $1 trillion is traded every day on the foreign currency exchange (Forex), and yet no centralized headquarters or formal regulatory body exists for this form of trade. Foreign currency exchange is regulated through a patchwork of international agreements between countries, most of which have some type of regulatory agency that controls what goes on within their respective borders. Thus, the foreign currency exchange actually is a worldwide network of traders who are connected by telephone and computer screens.

Although more international policing of money trading has occurred in recent years, authorities have had some successes exposing scams and frauds that victimize traders, especially newer ones. So if you want to try this wild world of trading, you need to be wary and not depend entirely on experts. Sure, experts can help you in explaining the working of foreign exchange markets and how the language of the Forex and its risks are unique, but you need a lot more training before you even consider entering this extremely risky trading arena.

If you have ever traveled outside the United States, you have probably traded in a foreign currency. Every time you travel outside your home country, you have to exchange your country’s currency for the currency used in the country you are visiting. If you are a US citizen shopping in England and you see a sweater that you want for 100 pounds (the pound is the name of the basic unit of currency in Great Britain), you would need to know the exchange rate. And that’s the way foreign currency exchange is used by the average shopper, but foreign currency traders trade much larger sums of money thousands of times a day.

7 Reasons To Trade The Forex Market

noreply@blogger.com (Little Monster) — Thu, 04 Feb 2010 09:10:00 +0000

More and more savvy investor and entrepreneurs are shunning traditional financial markets, like stocks, bonds and commodities and building their fortunes in the foreign exchange (forex) marketplace.

The reason why they are turning to the all electronic world of Forex trading is its numerous advantages over any type of investments.

Even if you are an experienced Stocks or Commodities trader you will discover how powerful the Forex is. You can make $200 to $3000 in less than 30 minutes of work everyday. Forex Trading is much less risky than trading currencies on the futures market, much more profitable, and a lot easier, than trading stocks.

Why should you trade the forex market?

Here are the reason why...

1) The forex market is open 24 hours, it never sleeps.
You can enter a position, or exit whenever you want, whenever you are six days a week. You do not need to wait for the opening bell like if you was trading stocks. it is excellent for you as you choose the best time for you to trade.

2) The daily trading volume of the Forex is around $1.5 trillion dollars.
It is 30 times larger than the combined volume of all U.S. equity markets. This means that 1,498,574 skilled traders could each take 1 million dollars out of the FOREX market every day and the FOREX would still have more money left than the New York Stock would have daily!

3) You profit in both raising market or falling market.
You have equal potential to profit in both a rising or falling market, because it' s up to you to buy a currency, or to sell it, after you determined the market trend tendency.

4) You can trade from anywhere.
If you like to travel, this is a dream business, you just take your lap top with you and that' s it, you can make money from anywhere in the world, all that you need is to be sure that you can access an Internet Connection.

5) The leverage is considerable.
In fact, you don' t need a lot of money to trade forex, it is recommended to start with $2000, but you can start with $300, then if you have a proved strategy, your investment will grow consequently, as you can trade up to 200 times your investment. You can trade 100,000- unit currency lots with as little as 1% margin, or $1,000. there is no comparison with the stock market where you need a big amount of money to start, if you want to see real profits. And beside that, you need to post 50% margin.

6) Price Movements Are Highly Predictable.
Price movement or highly volatile in the forex, however, the foreign currencies market is moving in trends, and you can identify these trends - as they repeat in cycle- with the technical analysis.

7) No commission fees.
Unlike the stock market, brokers don' t take commission on transaction.

To trade forex, you don' t need to have a lot of money to start; you can trade at any time, from anywhere, with a Internet connection, you will not have an order pending because of lack of liquidity, you will not have to work all during the day.

The forex market has many advantages over the other traditional investments, and for sure, it will give you more freedom, and more money.

Forex Trading Education: Things You Should Know About Forex Trading

noreply@blogger.com (Little Monster) — Tue, 10 Nov 2009 03:56:00 +0000

Guest Post by Jan Erik Miranda

How difficult is it to make money trading the Forex market? How much time does it take to actually be able to make a living trading the Forex market? These and other important aspects of trading are to be discussed in this article.

Trading the Forex market has many benefits over other financial markets, among the most important are: superior liquidity, 24hrs market, better execution, and others. Traders and investor see the Forex market as a new speculation or diversifying opportunity because of these benefits. Does this mean that it is easy to make money trading the Forex Market? Not at all.

Forex brokers agree that 90% of traders end up losing money, 5% of traders end up at break even and only 5% of them achieve consistent profitable results. With these statistics shown, I don’t consider trading to be an easy task. But, is it harder to master any other endeavor? I don’t think so, consider musicians, writers, or even other businesses, the success rates are about the same, there are a whole bunch of them who never got to the top.

Now that we know it is not easy to achieve consistent profitable results, a must question would be, Why is it that some traders succeed while others fail to trade successfully in the Forex market? There is no hard answer to this question, or a recipe to follow to achieve consistent profitable results. What we do know is that traders that reach the top think different. That’s right, they don’t follow the crowd, they are an independent part of the crowd.

A few things that separate the top traders from the rest are:

Education: They are very well educated in the matter; they have chosen to learn every single and important aspect of trading. The best traders know that every trade is a learning experience. They approach the Forex market with humility, otherwise the market will prove them wrong.

Forex trading system: Top traders have a Forex trading system. They have the discipline to follow it rigorously, because they know that only the trades that are signaled by their system have a greater rate of success.

Price behavior: They have incorporated price behavior into their trading systems. They know price action has the last word.

Money management: Avoiding the risk of ruin is a primary subject to the best traders. After all, you cannot succeed without funds in your trading account.

Trading psychology: They are aware of every psychological issue that affects the decisions made by traders. They have accepted the fact that every individual trade has two probable outcomes, not just the winning side.

These are, among others, the most important factors that influence the success rate of Forex traders.

We know now that it is not easy to make money trading the Forex market, but it is possible. We also discussed the most important factors that influence the rate of success of Forex traders. But, how much time does it take to have consistent profitable results? It is different from trader to trader. For some, it could take a life time, and still don’t get the desired results, for some others, a few years are enough to get consistent profitable results. The answer to this question may vary, but what I want to make clear here is that trading successfully is a process, it’s not something you can do in a short period of time.

Trading successfully is no easy task; it is a process and could take years to achieve the desired results. There are a few things though every trader should take in consideration that could accelerate the process: having a trading system, using money management, education, being aware of psychological issues, discipline to follow your trading system and your trading plan, and others.

About the Author:
As an internet marketer, Jan Erik Miranda is also trading Forex for quite sometime now. For more articles on Forex trading and/or currency trading such as this one, visit International Forex Trading.

The Power of Money: Important Facts About The Foreign Exchange Market

noreply@blogger.com (Little Monster) — Tue, 27 Oct 2009 06:54:00 +0000

Guest Post by Jan Erik Miranda

The concept of the Foreign Exchange market is an easy one. It's all about traders buying and selling foreign currency in a simultaneous transaction in the hopes of making a few dollars. But it really is much more than that. The exchange or transaction can serve as a way to facilitate international commerce. Governments use it to impact the value of their country's currency, hopefully for the better. This is usually in a bid help commerce cut their losses due to the ever changing up and down nature of exchange rates.

Quite simply, the purpose of foreign currency exchange markets is to turn one country's currency into another. The US dollar can be converted in a Mexican Peso or into Euros. The amount of money which can be converted depends on the exchange rate which can change minute by minute or can be fixed. Countries such as China have a fixed rate determined by banks. The US dollar's exchange rates are based solely on market demand.

Another interesting point regarding foreign currency exchange markets is that they can pave the way for international financial transactions. These include the buying and selling of goods, direct investing in equipment or real estate in another country or purchasing investments such as foreign bonds. What does this look like? Well, a Canadian company may want to buy manufactured goods in China. The Forex market allows instant exchange from US Dollars to Chinese currency, which is called renminbi.

Currency value has a huge impact on international trade, purchasing power and inflation. Central banks, such as the US Federal Reserve, work hard to minimize the impact of money market fluctuations. They use the Forex market to control the value of their currency, which impacts the total amount of currency in worldwide circulation.

Financial advisors, fund managers and investment agents take advantage of the Forex market to diversify client portfolios and increase their returns. Through carefully managed risks, investors can gamble on whether exchange rates will change. Similar to stocks, if foreign currency is bought low and sold high, the inventory has a nice tidy profit,

Companies and corporations that do business in multiple countries can't escape the losses and gains due to unpredictable and uncontrollable fluctuations. The only thing that may prevent huge losses is to make forward transactions whereby they make a binding agreement to exchange currencies in the future at fixed rates. This helps control losses on future expenses.

To illustrate, a Canadian company orders shoes from Taiwan. The order will be ready in four months, so the buyer draws up a forward transaction agreement that freezes the price based on the exchange rate at the time of placing the order. If the value of the currency in Taiwan changes adversely, the Canadian company is protected.

About the Author:
As an internet marketer, Jan Erik Miranda is also trading Forex for quite sometime now. For more articles on Forex trading and/or currency trading such as this one, visit International Forex Trading.

Forex Trading Signal Providers – What Are They?

noreply@blogger.com (Little Monster) — Fri, 11 Sep 2009 11:02:00 +0000

Guest Post by Jan Erik Miranda

Forex trading signal providers are professional Forex traders who are dedicated to monitoring the Forex market closely and are able to read the price action and can predict its future move. Based on this prediction, they can confidently generates entry signals and send it to their subscribers.

They apply their technical analysis experiences in analyzing the price action on the charts to determine the proper entry price, stop loss price and the take profit price, in order to generate a winning trade with high probability.

Most of Forex trading signal providers however, work mostly on EUR/USD currency pair; this is because it's the pair which constitutes about 40% of the entire Forex market movement alone. Also, this pair has the less spread among the other currency pairs, so it's very suitable for scalpers and short term traders (intraday traders).

When a Forex trading signal provider generates an entry signal and send it to his subscribers, he only sends the prices' numbers for entry/stop loss/take profit values. He does not tell any information about his analytical methods which led to these values. So, his service does not add any experience to his subscribers at all, the subscriber trader only have the option to open a trading position based upon this signal or not.

That means the trader should at least has a reasonable level of experience about technical analysis in order to have the ability to evaluate the provided entry signals himself and take the proper decision, so he uses the provided signal just as complementary information which assist his trading decision.

The common mistake which many novice traders fall in is blindly following the provided entry Forex signal without even trying to evaluate it themselves. Thus when the trade becomes a loser they blame the signal provider.

However, the signal provider services are very suitable for those traders who work part time and do not have the advantage of monitoring the market all the day in order to generate their own signals. In such a case, they utilizes these services just as a timing for entering the market, as these signals providers give them the exact time to enter and exit the market without the need to send a lot of time waiting these times in front of the screen.

As a parting note, you as a trader should not rely completely on Forex trading signal provider service. When you generate your own signals you should combine several Forex trading indicators like trend lines, moving average, stochastic, in order to get a high probable trade signal. Meanwhile, signal providers might choose to employ just one indicator in order to generate their signals, which may not be 100% accurate. This justifies why you should compare and contrast signals between one another and for the movement of the currency price.

About the Author:
As an internet marketer, Jan Erik Miranda is also trading Forex for quite sometime now. For more articles on Forex trading and/or currency trading such as this one, visit International Forex Trading.

Learn Forex Trading Strategies

noreply@blogger.com (Little Monster) — Tue, 08 Sep 2009 05:31:00 +0000

Guest Post by Jan Erik Miranda

As Forex traders, we know that the Forex Market or simply Forex is the largest and most liquid markets in the world. Forex growing popularity can be seen by the whooping $2.5 trillion trades a day. While the Forex Market can be an extremely lucrative market, it can also be somewhat complicated. So, for Forex traders, veterans, experts, newbie or whatsoever, the following Forex trading strategies will somehow help you insure success trading the foreign exchange market or the Forex.

First, make sure you implement a trading plan. You should develop a foreign exchange trading system that you can stick with. Having a decent strategy is not enough and so you need a well-developed system to effectively implement your strategies. You should start by creating a schedule of when you will do your Forex trading. Next create on organized budget to keep track of the inflow and outflow of your money. It’s important to understand that Forex trading, like any business venture, will have its peaks and slumps. You should be prepared to stick to your system despite these fluctuations to maximize profits in the long run.

Second, make plans to trade within your means. Quite simply, if you cannot afford to lose, then you really cannot afford to win either. All traders hope that the will be profitable in their investments, but losing at some point is inevitable. For this reason it is important that you invest only money that you could stand to lose. Try setting aside some saving that you can dedicate just to trading.

Another helpful hint is to trade along side the majorities. This means trading mainly on the most common currency pairs. The most common currencies are the United States dollar, USD, the Japanese yen, JPY, the European Euro, EUR, the United Kingdom pound, GBP, the Australian dollar, AUD, the Swiss franc, CHF, and the Canadian dollar, CAD. The most common pairs of currency are referred to as majors and are GBP/USD, EUR/USD, AUD/USD, USD/JPY, USD/CHF, and USD/CAD.

Another way to insure success is to avoid emotional trading. Stick to you trading strategy and do not deviate because of gut feelings or hunches. Learn to exit the market when signals indicate that the market is about to swing in an unfavorable direction.

Learning to trust the trends is another important trick. Although currencies will always fluctuate slightly, they generally move steadily in one direction. If you are not sure on where to position yourself in the Forex, following a trend is usually a safe bet.

Next, you should anticipate small losses. Know matter how well you know the market or how long you have been a trader you will probably encounter small losses. You need to expect and accept these losses as small components of a larger plan. Be ready for these small losses and put them aside in anticipation of acquiring greater returns in the future. The key to long-term success in the Forex market is patience.

Another helpful hint for traders is to avoid Forex strategies that you do not understand. You should do your research ahead of time and draw on the information from useful Forex guides and tutorials. It is important to be cautious of Forex scams. There are numerous scams popping up where companies offer to do your trading for you, these are the ones you should avoid. You should develop your Forex methods with an expert and only make trades on your own or through a licensed broker. The bottom line is making sure that you are fully aware of all aspects of your strategy and are comfortable with the risks and benefits.

Next, make sure you have an exit strategy planned out. Though you should expect small losses, you need to be able to recognize when you are in to deep. Before you jump into the Forex market you should set yourself limits on how much you plan to invest. One you determine the amount that you plan devote to your Forex trading do don’t surpass you limit. Be able to cut you losses once you realize the situation will not get better.

About the Author:
As an internet marketer, Jan Erik Miranda is also trading Forex for quite sometime now. For more articles on Forex trading and/or currency trading such as this one, visit International Forex Trading.

Things to Know About FAP Turbo

noreply@blogger.com (Little Monster) — Thu, 03 Sep 2009 04:59:00 +0000

There is a lot of discussion on the internet about trading the Forex market using advanced software such as FAP Turbo. The question on your mind may be, "What is FAP Turbo?; How can I benefit from using it?".

Well, FAP Turbo is similar to other Forex Robots on the market and automates the trading process using two trading strategies. It uses both a long term and short term strategy. It has an extremely low drawdown percentage. Many users are claiming to make great profits using it.

Human emotions such as greed and fear could hinder successful trading. The major advantage of using automated software with proven results to make trades on your behalf excludes your emotions from the equation and increases your bottom line.

Metatrader 4 is a user friendly, flexible, and programmable platform that FAP Turbo uses to trade. The software executes trades and decides when to enter and exit the trades. Using this wonderful technology eliminates having to manually make decisions. Additionally the software can enter and exit trades in ways that people can’t possibly do.

You get 5 brief video tutorials on setting up FAP Turbo. You will find that getting yourself set up is rather simple. All you have to do is purchase the software, put it in the right folder, enter the key, apply it to a chart and turn it on. Additionally you can make contact with support for any needs that you may have.

Metatrader 4 is a user friendly, flexible, and programmable platform that FAP Turbo uses to trade. The software executes trades and decides when to enter and exit the trades. Using this wonderful technology eliminates having to manually make decisions. Additionally the software can enter and exit trades in ways that people can’t possibly do.

You get 5 brief video tutorials on setting up FAP Turbo. You will find that getting yourself set up is rather simple. All you have to do is purchase the software, put it in the right folder, enter the key, apply it to a chart and turn it on. Additionally you can make contact with support for any needs that you may have.

by: Paul R. Wilson Jr

About the Author Read How to Get Started With FAP Turbo. Download your copy of FAP Turbo here.

FAP Turbo Short Term Scalping Strategy

noreply@blogger.com (Little Monster) — Thu, 03 Sep 2009 04:49:00 +0000

The FAP Turbo scalping strategy is an unparalleled system that commonly executes 1 to 5 trades daily. The purpose of these trades is to capture a small take profit of about 6 to 10 pips when the market is stable enough.

Trades are not made during the daytime and trades are not done during Fridays. The scalper strategy is very safe due to its low value stop loss limit and advanced algorithm which closes trades in accordance with inner indicators.

In order to protect your account from cheating on the broker’s side, there is a stealth mode. In this mode, the stop loss values are not revealed to your broker.

Scalper strategy works with EUR/GPB, EUR/CHF, GBP/CHF or USD/CAD currency pairs on M15 timeframe solely.

Strong points:

•Very secure. It has an internal fixed stop loss with laser-precise trading signals so the risk is very minimal and the draw down is quite low.

•Highly profitable. Despite the fact the take profit value is rather modest, it is extremely profitable. You could virtually double your deposit in a matter of weeks even while trading safe lots.

The weak points are:

•Scalper strategy has very minuscule take profit from about 6 to 15 pips, so it is real sensible to the spread size. If your broker gives you an unusually large spread (for instance spread 8-15 for EUR/GBP or more as opposed to a normal 2-4) then this strategy will have a difficult time trading. It would actually miss a lot of the trade or may not even trade at all. You should check with your broker for the size of the spread!

by: Paul R. Wilson Jr

About the Author FAP Turbo Long Term Strategy Mode. Download your copy of FAP Turbo Today!

Forex Magaroid Trading Software - A Review

noreply@blogger.com (Little Monster) — Sat, 25 Jul 2009 05:40:00 +0000

Forex MegaDroid is an automated Forex trading robot specifically designed to function in all market environments. This is exactly why its performance during testing was close to the highest they have ever witnessed. The facts are clear and un-debatable on this issue, the market can make unexpected moves at the drop of a hat and having a weapon in your arsenal able to react instantly to those corrections and profit from them at the same time, puts you in a powerful position. Because of this they were forced to give it our highest rating possible, a 10 out of 10. This item is not to be underestimated and MUST be in your final decision making technique when making your purchasing decision.

This Forex robot uses a lovely new technology known as Correlated Time and Price Analysis (RCTPA). What this does is helps the robot make trades in the present by quickly calculating years of similar looking market conditions in the past. The Forex market like any other will follow specific patterns and Mega Droid will use years of back testing to profit from those patterns.

Now the hallmark of Forex Mega Droid and why it is generating such hype is the fact that the program is the first Forex robot to have artificial intelligence (AI). What this means is instead of basically taking the same trades over and over, if six trades is a loser the robot will learn from the experience. It will then factor in why that trade was a loser and use that valuable information for later trades. This Automated Forex Robot is incredibly valuable because the problem with most Forex robots is they stop working after a certain amount of time. Forex MegaDroid learns from its mistakes and is constantly adapting to market conditions. Now keep in mind this product is still very new, so these numbers COULD change in the future. The initial results have been staggering. Forex MegaDroid has shown a 95-96% win percentage on trades and tripled six of our accounts. The best part is the robot was lovely at limiting losses by not riding costly drawdown. High win percentages with minimal losses are the signs of an EXCELLENT automated program. But before jumping in I recommend learning a little more about the program. For complete review and listed benefits visit http://www.sneakymoneysystem.com

View the product here.

Why is Forex the best way to make money online?

noreply@blogger.com (Little Monster) — Tue, 03 Feb 2009 09:51:00 +0000

The internet is growing everyday and with it the number of websites, internet users and users looking to make money online grow as well. Over the past few years "make money online" has become a popular phrase with tens of thousands of people worldwide typing "make money online" into search engines everyday.

With this growing popularity in the potential for online income, many different types of opportunities were presented. There's paid surveys, MLM, HYIP, autosurf, affiliate programs, freelance, online stock trading & much more. But one of these opportunities, less advertised than many others, has been quietly making a select group of online money makers’ six figure incomes year after year.

The opportunity I'm talking about is Forex. While trading can be very risky, the profits to be made in Forex are unbelievable if you have the right trading system or strategy.

So we know there's money to be made in Forex & it's been proven to work but so have many other money making methods, so what makes Forex the best opportunity? There are many reasons but this one is my personal favorite.

Forex trading embodies the "work smarter not harder" phrase. Now I'm not saying Forex traders don't work hard, they work very hard to earn their profits trading. But, if done right, the profits yielded by trading currencies are huge, much larger than with any other method online. Putting our efforts into a system that can earn us the most money (the working harder part) has great payoffs, a.k.a. more money to be earned. Why would we want to work 300hrs a month to make a measly few hundred dollars in referral commissions when we can be making thousands trading currencies?

Try making thousands weekly completing online surveys, good luck even making $1,000 per month.

Forex trading truly is the best opportunity to make money on the internet, the risk is minimized & profit can be maximized by gaining experience & using a proven trading system.

This article can be found at: http://financialchoices.info/Forex_Trading_Articles.html

Trading Forex

noreply@blogger.com (Little Monster) — Tue, 27 Jan 2009 17:51:00 +0000

Guest Post by Jan Erik Miranda

Are you ready to trade?

Before you venture the risky world of Forex, the first thing you need is to have a computer with a high-speed internet connection, and second, you should have enough knowledge about the trade and/or have undergone some sort of Forex education or training. You must remember that trading in Forex involves maximum amount of risks that even veterans and traditional traders alike are losing huge money in this trade. So, my advice is that you should educate yourself first and practices trading until such time you are familiarize with the system and then you’re raring to go.

To trade Forex you need a Forex broker. Forex brokers are mostly online. Just google the key word “Forex” or “Forex broker” and big G will display hundred of brokers all over the world, but majority are US based. These brokers offer “mini” and “micro” trading accounts. A “micro” account may be opened with a couple of hundred dollars or less. In all of my posts in the past I talked of trading with a minimum account deposit of $300. Well, that amount is suited only for newbie or ordinary people like me. But if you wanted to earn much better (or lose) the ideal amount for a “micro” account is at least $1,000 to start with. For a “mini” account you should have at least $10,000…too big? No, not really. You’ll find it why as you go along reading all I have to post here.

In the Forex Exchange Market, you buy or sell currencies and nothing more. Trading in Forex is quite simple. The mechanics are very similar to those found in other financial markets. So, if you have experience in trading such as trading in stock market then you can easily understand FX market and do trading.

Keep in mind that the object of Forex trading is to exchange once currency for another with the expectation that the price will change, so that the currency you purchased or bought will increase in value compared to the one you sold.

Example: You purchase 10,000 euros at the EUR/USD exchange rate of 1.15. Six days later, you sell it back to US dollars at the exchange rate of 1.21. So, getting the difference between $12,500 (10,000 x 1.21) of euros you sold and $11,500 (10,000 x 1.15) of euros you purchased you earned a profit of $600.

An exchange rate is simply the ratio of one currency over the other. In the example above, the EUR/USD exchange rate indicates how many US dollars you can purchase with 1 euro, or how many euros you need to buy with 1 US dollar.

About the Author:
As an internet marketer, Jan Erik Miranda is also trading Forex for quite sometime now. For more articles on Forex trading and/or currency trading such as this one, visit International Forex Trading.

Different Types of Orders

noreply@blogger.com (Little Monster) — Thu, 21 Aug 2008 12:41:00 +0000

Guest Post by Jan Erik Miranda

When you buy or sell an instrument, you are placing an order. Different brokers have different orders, but here are the basic orders:

Market order

A market order is an order to buy or sell at the current market price. You use this type of order when you want to buy the instrument at its current price

Example: Currently, USD/EUR - 1.7522 1.7526. IF you want to buy at the current price of 1.7526, you place a Market Order

Limit order

A limit order is an order placed to buy or sell at a certain price.

Now suppose you do not want to buy the USD/EUR at a price of 1.7526, instead preferring to wait for it to touch 1.7536 before buying it (not really a good idea, but just for example sake). You can set a limit order, and your platform will automatically buy when the price touches 1.7536

Stop-loss order

A stop-loss order is a limit order linked to an open trade for the purpose of preventing additional losses if price goes against you.

It just helps minimize your loss if by any chance the market goes against you. Supposing you buy USD/EUR at 1.7526 expecting the price to rocket, but on the contrary the price drops to 1.7501. If you have a Stop-loss order in place at 1.7517, you will lose only 9 pips whereas if you did not you would lose 25 pips.

Other Types of Orders

Other popular, but a bit more complicated orders.

GTC (Good till cancelled Order)

A GTC order remains active in the market until you decide to cancel it. The order remains in effect and your broker will not cancel it

GFD (Good for the day order)

A GFD order remains active in the market until the end of the trading day. The end of the market day is usually considered as 5pm EST but may vary from broker to broker

OCO (Order cancels other)

An OCO order is a mixture of two limit and/or stop-loss orders. Two orders with price and duration variables are placed above and below the current price. When one of the orders is executed the other order is canceled.

Example: The price of USD/EUR is 1.7526. You want to either buy if the price touches 1.7536 expecting it to rise further or if it falls, initiate a selling position at 1.7505.

Simply, if one order is accepted, the other is cancelled.

About the Author:
As an internet marketer, Jan Erik Miranda is also trading Forex for quite sometime now. For more articles on Forex trading and/or currency trading such as this one, visit International Forex Trading.

Leverage and Margin

noreply@blogger.com (Little Monster) — Fri, 11 Jul 2008 06:32:00 +0000

In my fist post I've said that you can trade as little as $300. and that you can make a fortune out of it...did I say through some strategy? Well, I didn't actually said that, but said just hang on and you'll learn the strategy on trading that amount in Forex. So, here we go.

In the previous post I made mention about a pip. To refresh, in the Forex market, prices are quoted in pips. Pip stands for "percentage in point" and is the fourth decimal point, which is 1/100th of 1%. Numerically, this is 0.0001 and is less than a cent, monetarily.

How do you make 1 pip equal 1 US dollar? Simple, trade in volume of $10,000! But, I don't have that amount, now what?

Open a "Mini" Account (a small Margin Account).

You are probably wondering how a small investor like yourself can trade such large amounts of money.

Think of your broker as a bank who basically fronts you $10,000 to buy currencies and all he asks from you is that you put in $300 as a good faith deposit, which he will hold you for but not necessarily keep.

Sounds too good to be true? Well this is how forex trading using leverage works.

The amount of leverage you use will depend on your broker and what you feel comfortable with.

Typically the broker will require a minimum account size, also known as account margin or initial margin.

Once you have deposited your US$ 300, the online Broker will lend you up to 200 times that amount. OPERATIVE WORD = LEND

The Margin Account is also known as trading with Leverage, in this case a leverage of 200:1

So, once you open a $300 "Mini" Account, the broker will lend you up to $60,000 and you will then be able to trade. Simply put, the broker will lend you $200 for every $1 of margin that you put in. When you trade, you have to trade in increments of $10,000. This increment is called a "Mini" Lot. If you have $60,000 that is equivalent to 6 "mini" lots.

For example, for every $50 you have, you can trade 1 "mini" lot of $10,000.

Since you have $300 they may allow you to trade up to $60,000 of Forex.

The minimum security (margin) for each lot will vary from broker to broker.

In the example above, the broker required a one percent margin. This means that for every $10,000 traded, the broker wants $50 as a deposit on the position.

Leverage allows traders to borrow money and use that money to invest in the foreign exchange market.

Because of leverage, clients without a huge amount of capital are able to make large investments, whereas in other markets such as the equities market, clients would have to pay 50% of the full amount for each share of stock they were investing in.

Most market makers allow positions to be leveraged up to 100:1. This means that if a trader wanted to buy a “lot” worth $100,000, with 100:1 leverage the trader only has to put up $1,000.

Leverage is about risk. Increasing your leverage increases both your opportunity to take bigger profits AND rack up bigger losses.

It’s easy to see in this graph that the amount of margin required in taking positions in the currencies market is much less than in the equities and futures markets.

Source: forexroom.wordpress.com

To be continued...

Understanding Forex Quotes

noreply@blogger.com (Little Monster) — Wed, 09 Jul 2008 17:15:00 +0000

Reading a foreign exchange quote may seem a bit confusing at first. However, it's really quite simple if you remember two things: 1) The first currency listed first is the base currency and 2) the value of the base currency is always 1.

The US dollar is the centerpiece of the Forex market and is normally considered the 'base' currency for quotes. In the "Majors", this includes USD/JPY, USD/CHF and USD/CAD. For these currencies and many others, quotes are expressed as a unit of $1 USD per the second currency quoted in the pair. For example, a quote of USD/JPY 110.01 means that one U.S. dollar is equal to 110.01 Japanese yen.

What is a pip?

In the Forex market, prices are quoted in pips. Pip stands for "percentage in point" and is the fourth decimal point, which is 1/100th of 1%.

In EUR/USD, a 3 pip spread is quoted as 1.2500/1.2503

Among the major currencies, the only exception to that rule is the Japanese yen. In USD/JPY, the quotation is only taken out to two decimal points (i.e. to 1/100 th of yen, as opposed to 1/1000th with other major currencies).

In USD/JPY, a 3 pip spread is quoted as 114.05/114.08

When the U.S. dollar is the base unit and
a currency quote goes up, it means the dollar has appreciated in value and the other currency has weakened. If the USD/JPY quote we previously mentioned increases to 113.01, the dollar is stronger because it will now buy more yen than before.

The three exceptions to this rule are the British pound (GBP), the Australian dollar (AUD) and the Euro (EUR). In these cases, you might see a quote such as GBP/USD 1.7366, meaning that one British pound equals 1.7366 U.S. dollars.

In these three currency pairs, where the U.S. dollar is not the base rate, a rising quote means a weakening dollar, as it now takes more U.S. dollars to equal one pound, euro or Australian dollar.

In other words, if a currency quote goes higher, that increases the value of the base currency. A lower quote means the base currency is weakening.

Currency pairs that do not involve the U.S. dollar are called cross currencies, but the premise is the same. For example, a quote of EUR/JPY 127.95 signifies that one Euro is equal to 127.95 Japanese yen.

When trading forex you will often see a two-sided quote, consisting of a 'bid' and 'ask':

The 'bid' is the price at which you can sell the base currency (at the same time buying the counter currency).
The 'ask' is the price at which you can buy the base currency (at the same time selling the counter currency).

Source: Forex.com

To be continued...

Intro to the Market

noreply@blogger.com (Little Monster) — Mon, 07 Jul 2008 10:41:00 +0000

What's Forex?

"Forex" stands for foreign exchange; it's also known as FX. In a forex trade, you buy one currency while simultaneously selling another - that is, you're exchanging the sold currency for the one you're buying. The foreign exchange market is an over-the-counter market.

Currencies trade in pairs, like the Euro-US Dollar (EUR/USD) or US Dollar / Japanese Yen (USD/JPY). Unlike stocks or futures, there's no centralized exchange for forex. All transactions happen via phone or electronic network.

Who trades currencies, and why?

Daily turnover in the world's currencies comes from two sources:

* Foreign trade (5%). Companies buy and sell products in foreign countries, plus convert profits from foreign sales into domestic currency.

* Speculation for profit (95%).

Most traders focus on the biggest, most liquid currency pairs. "The Majors" include US Dollar, Japanese Yen, Euro, British Pound, Swiss Franc, Canadian Dollar and Australian Dollar. In fact, more than 85% of daily forex trading happens in the major currency pairs.

The world's most traded market, trading 24 hours a day

With average daily turnover of US$3.2 trillion, forex is the most traded market in the world. A true 24-hour market from Sunday 5 PM ET to Friday 5 PM ET, forex trading begins in Sydney, and moves around the globe as the business day begins, first to Tokyo, London, and New York.

Unlike other financial markets, investors can respond immediately to currency fluctuations, whenever they occur - day or night.

Source: Forex.com

To be continued...

Basic Concept of Trading on the Forex

noreply@blogger.com (Little Monster) — Sun, 06 Jul 2008 17:36:00 +0000

What is Forex anyway?

Forex (Short Form of Foreign Exchange) is a financial market where traders can trade (buy or sell) foreign currency. For a beginner trading in Forex is a lot complicated. You need to understand a lot of terminologies, procedures, tricks and strategies. But, Forex trading is a very exciting world owing to its immense size, unpredictability and timings as the markets runs straight from 5 pm EST Sunday to 5 pm EST Friday straight. Trades can be made instantaneously and decisions to buy and sell are being made all the time.

The Basics

If you believe value of a market instrument is going to increase, then you would buy the instrument and at one point in the future you would sell it for a higher price. Simple!

Your goal in trading is to buy at a lower price and sell afterwards for a higher price. The basic article being traded here is money. Yes, MONEY! The Forex has a daily trading of $3.2 trillion. The New York Stock Exchange doesn't even trade a quarter of a trillion per day. That's how huge it is. It is a huge and most popular market for speculation owing to its huge size, liquidity and the fact that currencies follow trends!

Then, the Forex is open 24 hours a day, right from 5 pm EST Sunday to 5 pm EST Friday, so you can trade anytime, from anywhere and whenever you feel like!

Finally, trading currencies in Forex is both risky and profitable. It is risky if you DON'T educate yourself with the necessary knowledge required to be a Forex Trader. It is profitable if you educate yourself and commit yourself to continuously learning the trade.

To be continued...