Forex trading

An Introduction to Forex Trading

2009-08-29T09:09:00.000-07:00

I'm sure you've already heard of Forex trading. It is certainly one of the hottest topics around these days. But what exactly is it, and how can the average person make good money in Forex?

Forex, also called "FX", is short for foreign exchange. The foreign exchange doesn't get the big press like stocks, options, and commodities. But the foreign exchange is the biggest market in the world and it offers investors an incredible opportunity for profit.

When you trade on the foreign exchange, you don't trade in stocks or bonds, but in currency.
Simply put, Forex trading is just the buying of one currency and the selling of another. As exchange rates go up and down, you either make or lose money.

With Forex, you're not investing in a single company or even a group of companies. You're investing in the economy of nation. You are betting that the overall economic health of one nation will improve in relation to that of a second nation.

For example, let's say you are analyzing the US Dollar and the Japanese Yen. Your research seems to indicate that the US dollar is undervalued and is due for a rise in price, and at the same time you expect the Japanese Yen to lose value.
In this case you would execute a trade to buy US dollars and sell Japanese yen.
If you are correct and the exchange rate rises, you make a profit!

So its a cinch, right?
Well no, not really.
Currency prices can be incredibly difficult to forecast because there are so many factors that can contribute to a change in exchange rates. And you must remember that in currency trading you always trade in pairs. You buy one currency and sell another. So you can't just look at one nation's economy; you must look at two.

Of course, you do not have to limit yourself to only one pair of currencies. There are dozens of different currencies to choose from. But if you are just starting out, I suggest sticking to the seven major currencies:

USD - US Dollar

EUR - the Euro

GBP - British Pound

JPY - Japanese Yen

CHF - Swiss Franc

AUD - Australian Dollar

CAD - Canadian Dollar

Pakistan Open Market Forex Rates

2009-08-29T09:00:00.002-07:00

Aug 30 2009, 12:50 PST
Australian Dollar AUD 68.8 69.8
Bahrain Dinar BHD 218.25 221
Canadian Dollar CAD 75.3 76.3
China Yuan CNY 12 13.5
Danish Krone DKK 15.8 16.2
Euro EUR 118 119.5
Hong Kong Dollar HKD 10.55 10.9
Indian Rupee INR 1.7 1.8
Japanese Yen JPY 0.87 0.88
Kuwaiti Dinar KWD 284.4 287
Malaysian Ringgit MYR 23 24.5
NewZealand $ NZD 56.2 57.2
Norwegians Krone NOK 13.7 14.1
Omani Riyal OMR 213.85 217
Qatari Riyal QAR 22.6 22.9
Saudi Riyal SAR 21.92 22.12
Singapore Dollar SGD 56.9 57.9
Swedish Korona SEK 11.6 12
Swiss Franc CHF 77.6 78.6
Thai Bhat THB 2.4 2.6
U.A.E Dirham AED 22.42 22.62
UK Pound Sterling GBP 134 135.5
US Dollar USD 82.6 83

Fundamental Analysis: Introduction

2009-08-29T09:00:00.001-07:00

So, you want be a stock analyst? Perhaps not, but since you're reading this we'll assume that you at least want to understand stocks. Whether it's your burning desire to be a hotshot analyst on Wall Street or you just like to be hands-on with your own portfolio, you've come to the right spot.

Fundamental analysis is the cornerstone of investing. In fact, some would say that you aren't really investing if you aren't performing fundamental analysis.Because the subject is so broad, however, it's tough to know where to start. There are an endless number of investment strategies that are very different from each other, yet almost all use the fundamentals.

The goal of this tutorial is to provide a foundation for understanding fundamental analysis. It's geared primarily at new investors who don't know a balance sheet from an income statement.While you may not be a "stock-picker extraordinaire" by the end of this tutorial, you will have a much more solid grasp of the language and concepts behind security analysis and be able to use this to further your knowledge in other areas without feeling totally lost.

The biggest part of fundamental analysis involves delving into the financial statements. Also known as quantitative analysis, this involves looking at revenue, expenses, assets, liabilities and all the other financial aspects of a company. Fundamental analysts look at this information to gain insight on a company's future performance. A good part of this tutorial will be spent learning about the balance sheet, income statement, cash flow statement and how they all fit together.

But there is more than just number crunching when it comes to analyzing a company. This is where qualitative analysis comes in - the breakdown of all the intangible, difficult-to-measure aspects of a company. Finally, we'll wrap up the tutorial with an intro on valuation and point you in the direction of additional tutorials you might be interested in.

(Also, although it's not required, you might find it helpful to read our Investing 101 tutorial, as well as our tutorial on Stock Basics, before starting.)

Forex Tips to Increase Profits and Decrease Risk!

2009-08-29T08:57:00.000-07:00

If you have never considered sing Forex Options then you should. They can simply overcome the major problem most Forex traders face - getting stopped out by short term volatility... A Forex Option gives you unlimited profit potential and your risk is simply the price you paid for the option. This means, prices can go anywhere in the short term but so long as the option trades above the price you bought it at, in rising market or below in a falling market you make money. How many times have you been stopped out by short term volatility, only see the price go right back the way you thought they would, make thousands of dollars and your not in the trade? It happens to most traders! Picking the direction of the long term trend is easy; balancing the risk reward in the short term is the hard part. You want to be in the trend - but you don't want to have to worry about short term risk. Staying power is the key advantage Forex options give you.Options are a great tool to limit short term risk - but you need to use them correctly and here are two simple tips. 1. Always Buy at or in the Money Options. Never buy way out of the money options, as these are long shot bets. Sure the profit potential is bigger, if the strike price is hit but the key word here is "if"; out of the money options, are the equivalent of outsider bets and the outsider doesn't normally win!2. Get Time on your SideThe closer the option is to expiry, the more time decay plays a role in option value. Never buy options with less than 3 months to expiry, so you have plenty of time on your side. Options the Ultimate Risk Control Tool!Forex options are a powerful tool any Forex trader should look at to deal with volatility and gain staying power. The problem most of the time is not deciding where a currency will go long term but where to place your stop and options take care of this problem, by giving you staying power. If you don't know much about options, then make them part of your essential Forex education and add a valuable tool, to your armoury for bigger Forex profits.

Short Term Options Trading

2009-08-29T08:54:00.000-07:00

Many traders consider options and warrants to be long term trading markets (i.e. swing and position trading), but options and warrants can also be traded short term (i.e. day trading). Trading options short term is not dramatically different from trading any other market (e.g. futures, individual stocks, etc.), but there are a couple of options specifics that need to be taken into account.
My short term options trading article provides a discussion of short term options trading, and explains how various options and warrants trades can be used to make various underlying trades. Trading options and warrants short term is most suitable for stock index and individual stock traders, so even if you are not usually an options trader, trading options short term could be a useful addition to your trading.

How far can the dollar go down?

2009-08-29T08:50:00.000-07:00

Theoretically, the US Dollar can go to zero. While unlikely, it should be remembered that nearly every currency that has ever existed throughout history, eventually has a crash that destroys 90% of absolute value, or more.Won't foreign Central Banks support the dollar?Why should they? If you are hungry, and your 600 lb. neighbor (who is now so fat he can't even walk anymore he needs to use one of those little carts) missed a few meals, which happen to be 5x expensive as yours, would you finance his dessert? Of course not. You are thinking many things, but supporting his habit of overeating isn't one of them. The US consumes over 25% of the world's resources but produces less than 10%. Economists may not care for such a crude analogy, but the situation with the US Dollar is very, very simple, and should not be overcomplicated. The USD has been a reserve currency for the post WW2 world, but since Nixon abandon gold standard, the USD is backed by only the belief and faith in US Government. We are seeing a commodity boom, not because of a bubble in commodity asset prices, but because of a decline in the USD, the world's reserve currency in which many commodities (especially Oil and Gold) are priced. In any event, it's not likely that foreign central banks will bail out the dollar, because that would in effect make them eat a realized loss in their current account. Moderately wealthy nations cannot afford to take the loss of the US, the largest and wealthiest economy in the world. The US has been a financial big brother who have bailed out other failing economies but the US has no big brother to lean on, except maybe Russia, although that wouldn't go over too well in Washington. So if the US Defaults, who can come to the rescue?

Currency Trading Tutorial

2009-08-29T08:47:00.000-07:00

We have tested some of the most popular Forex automated trading software systems in the marketplace and below are the results of our tests.
If you are new to forex, then one of these tools would be an excellent way of teaching you the forex market. It will also save you the heartache of losing money when you first start out.
Graded On :
Easy To Use Software.
Accurate Forex Forecasting.
Easy To Setup.
Makes You Money.

Make Money Fast Online With Forex Day Trading

2009-08-29T08:45:00.000-07:00

Like any trading market, the forex market has long term investors and forex day trading investors. The high turnover of deals and ability to make money fast online is a huge lure to forex day trading and it something that not a lot of people can. When you really look into the market though, you will find that the high risk is something that not everyone can deal with and they go the route of long term forex trading.As we said, forex day trading is very risky, but it does have its advantages. With the high turnover of trades that you will be making, if you can turn profitable ones on a steady basis, you will find that you are just as profitable or more profitable than the long term trader. Your individual trades will not net the same profit, but when you put them all together against the one trade of the long term investor, you can end up way ahead.Going to sleep at night with all of your money out of the market is also something that a lot of the day traders will swear by. Win or lose for the day, your money is out and you know where you stand. There are plenty of things that can happen to the market overnight and you can sleep well knowing that they will not affect your position.As we stated the advantages, we also have to look into the disadvantage of forex day trading. When you break down the success of the traders who choose to go this route, you will find that most of them fail. In fact, it is estimated that about 80% of forex day traders are losing money. This is not so much the market as it is the trader though. Day trading is a special monster and needs its own intraday forex trading system. A lot of day traders think they can predict the future on trade on instinct instead of trends. Before you know it, they are standing in line looking for a government free lunch.Why many of these forex day traders fail is they make huge deals with leveraged accounts. All it really takes is one bad deal and you find yourself in the horrible position of having to pay back money that you lost when you didn't have it. It is these individuals that are making foolish move after foolish move and then they end up broke. Again, it's the trader looking for the quick fix that is the problem, not the forex market.In the end, you will have to be the one to decide if forex day trading is the niche that you want to get involved in with the forex market. This market presents a wonderful opportunity for you to make big money from home, you just have to decide which aspect of it your are going to take advantage of.

Tips For Choosing a Reputable Forex Broker

2009-08-29T08:43:00.000-07:00

Finding a Forex broker is a tough process to navigate through and for most people, the necessity of outside assistance is needed. Trying to trade in the Forex market without a broker could lead to devastating results for the normal trader. Similarly, hiring the wrong Forex broker can lead to the same result as trying to muddle through it alone. It is highly important that you be diligent in researching any prospective brokerage firms to handle your financial portfolio.A good Forex broker will supply you with clients that were successful and can attest to the specific broker's qualifications and success history. Put yourself in that position, would you testify to someone's strengths if they did a poor job for you? Client history testimony should be present in any prospective Forex broker and plentiful to indicate a solid background with trading. You can tentatively assess a lot from a Forex broker with a list of clients that will speak up for the brokerage firm or individual broker. It should be noted that all word of mouth testimony should be taken with a grain of salt and dissected to collect the pertinent information. Testimony should be used in your research to find a Forex broker but should not be the deciding factor.Another good morsel to test the reliability of any potential Forex broker is the amount of information, literature and lessons that they are willing to give to you. Most Forex brokers are of a high reputation and a solid background however, there are many out there that don't have a good history or no history and it is wise to steer clear of these brokers. You are trying to find a trusted financial advisor and settling for second best, just won't do. The more a potential Forex broker is willing to do for you in the area of helping you understand the Forex trading system, the better quality trader they will be for you.A good avenue to travel down when seeking a good Forex broker is to ask your acquaintances about Forex brokers and how they met. This can not only give you prospective referrals to great Forex brokers but will also equip you with ideas and resources that you may not have located. If you get a referral from friends, be sure to still research that specific broker and his qualifications before committing to any formal agreement.The other factor in finding a good Forex broker is the margin of return that is offered. A Forex trading margin used to influence your money and many Forex brokers offer different margins. Finding a Forex broker, who gives a margin of ten to one isn't a very good find so it's worth the time to reinvest in research. Remember that this industry is all about customer service and catering to the clients so if your prospective Forex broker doesn't return your calls within a reasonable time frame it would be advisable to keep searching.

Forex Glossary

2009-08-29T08:41:00.000-07:00

Here are some of the most common terms used in FOREX trading.
Ask Price – Sometimes called the Offer Price, this is the market price for traders to buy currencies. Ask Prices are shown on the right side of a quote – e.g. EUR/USD 1.1965 / 68 – means that one euro can be bought for 1.1968 UD dollars.
Bar Chart – A type of chart used in Technical Analysis. Each time division on the chart is displayed as a vertical bar which show the following information – the top of the bar is the high price, the bottom of the bar is the low price, the horizontal line on the left of the bar shows the opening price and the horizontal line on the right of bar shows the closing price.
Base Currency – is the first currency in a currency pair. A quote shows how much the base currency is worth in the quote (second) currency. For example, in the quote - USD/JPY 112.13 – US dollars are the base currency, with 1 US dollar being worth 112.13 Japanese yen.
Bid Price – is the price a trader can sell currencies. The Bid Price is shown on the left side of a quote - e.g. EUR/USD 1.1965 / 68 – means that one euro can be sold for 1.1965 UD dollars.
Bid/Ask Spread – is the difference between the bid price and the ask price in any currency quotation. The spread represents the broker's fee, and varies from broker to broker.
Broker – the intermediary between buyer and seller. Most FOREX brokers are associated with large financial institutions and earn money by setting a spread between bid and ask prices.
Candlestick Chart - A type of chart used in Technical Analysis. Each time division on the chart is displayed as a candlestick – a red or green vertical bar with extensions above and below the candlestick body. The top of the extension shows the highest price for the chart division and the bottom of the extension shows the lowest price. Red candlesticks indicate a lower closing price than opening price, and green candlesticks indicate the price is rising.
Cross Currency – A currency pair that does not include US dollars – e.g. EUR/GBP.
Currency Pair – Two currencies involved in a FOREX transaction – e.g. EUR/USD.
Economic Indicator – A statistical report issued by governments or academic institutions indicating economic conditions within a country.
First In First Out (FIFO) – refers to the order open orders are liquidated. The first orders to be liquidated are the first that were opened.
Foreign Exchange (FOREX, FX) – Simultaneously buying one currency and selling another.
Fundamental Analysis – Analysis of political and economic conditions that can affect currency prices.
Leverage or Margin – The ratio of the value of a transaction to the required deposit. A common margin for FOREX trading is 100:1 – you can trade currency worth 100 times the amount of your deposit.
Limit Order – An order to buy or sell when the price reaches a specified level.
Lot – The size of a FOREX transaction. Standard lots are worth about 100,000 US dollars.
Major Currency – The euro, German mark, Swiss franc, British pound, and the Japanese yen are the major currencies.
Minor Currency – The Canadian dollar, the Australian dollar, and the New Zealand dollar are the minor currencies.
One Cancels the Other (OCO) – Two orders placed simultaneously with instructions to cancel the second order on execution of the first.
Open Position – An active trade that has not been closed.
Pips or Points – The smallest unit a currency can be traded in.
Quote Currency – The second currency in a currency pair. In the currency pair USD/EUR the euro is the quote currency.
Rollover – Extending the settlement time of spot deals to the current delivery date. The cost of rollover is calculated using swap points based on interest rate differentials.
Technical Analysis – Analysis of historical market data to predict future movements in the market.
Tick – The minimum change in price.
Transaction Cost – The cost of a FOREX transaction – typically the spread between bid and ask prices.
Volatility – A statistical measure indicating the tendency of sharp price movements within a period of time.

Forex Signal Providers,

2009-08-29T08:38:00.000-07:00

Forex Signal provider is a professional trader who is dedicated to monitoring the market closely and is able to read the price action and can predict its future move. Based on this prediction, he can confidently generates entry signals and send it to his subscribers.
He apply his technical analysis experience 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.
What a signal provider do for you?
Most of forex signal providers works mostly on EUR/USD currency pair, this is may 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 signal provider generates an entry signal and send it to his subscribers, he only send 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 that 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. This make them can't take his responsibility for his trading decision, thus when the trade become a loser he 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, 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.
Final note:
As a trader, you should not relay completely on signal provider service. When you generate your own signals, you combine several trading indicators like trend lines, moving average, stochastic…etc, in order to get a high probable trade signal. Meanwhile, 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.

15 Major Day Trading Hints

2009-08-29T08:35:00.000-07:00

On the other hand, if you want to do day trading the following tips and guidelines are here to make you succeed:Who is day trader?A person who actively associate within stock market and buys and sells frequently in a day to make quick income is called a day trader.What are the following tips to succeed in day trading? Here are the 15 list of tips to guide you to succeed:1. Study the fundamentals of the system like the functioning of the market, schedule to buy and sell, which way the stocks will be operate, and the long and short calls.You consider also learn to take care of the profits while cutting down the losses.2. In view of excel in day trading is a time consuming process, apply the trading platform available on the trading websites before you actually start.3. Avoid the thought of making losses let you to scare. Use strategies like stop orders to reduce your losses.4. Do not worry, If you suffer some loss, as it is a portion of the process.5. Stop trading, once you have earned your expected profit. Do not hunger after more money and throw away your profit.6. Assuming that the market does not meet your expectations on each and every particular day, do not trade.7. During the time that your experience in day trading increases, you gain the ability to foreknow the direction in which the stock price moves. But avoid to go for the lowermost or the topmost stocks.8. If you find it crucial to decide in which way the market is going, do not trade but just paused and wait.9. Keep up a record of the results of the day trading. It give permission you to learn the things which are effective, as well as ineffective.10. Acquire some information about buying and selling tactics of successful day traders. These traders commonly sell when there is good news and buy when there is bad news.11. Being aloof and professional is the main characteristics of being trader and don't be emotional.12. Have confidence on your instincts as rely upon excessively on the analysis means skipping some good trading chances.13. Be trained and use most important strategies to trade.14. Concentrate and/or focus yourself only on a selected stocks. Sharpen your attention on various stocks will make it difficult for you to track the movement of each stock.15. Educate yourself in a new trading strategies daily and use them to your benefit.

The advantages of having a managed forex account

2009-08-29T08:34:00.000-07:00

Due to the forex market’s high liquidity, 24 hour trading and low start up-costs, many investors are intrigued by it. However, not all traders are able to learn the basics on how to trade currency. This can be because of conflicting time schedules or other job delegations. Investors who wish to participate in the forex market but don’t have the time or the know-how to do so still have ways to reap the benefits. Managed forex accounts are accounts that are managed by individuals that are part of a financial company, whom have the expertise and knowledge in the forex market. It is a live forex account funded by an investor, and traded by a company or a professional. This allows the investor to receive a reasonable profit margin without having to invest their time into doing it themselves. The company or individual hired by the investor to manage the forex account will take up the responsibility of analyzing and interpreting the market. As well as that, they are responsible for making recommendations to the investor as to which currency pairs should be bought or sold, in their opinion. Many companies and investment firms are part of the forex market. Most of these organizations have a high amount of experience in managing forex accounts. They provide close to 100% value for their services in the forex market. Due to these results, it gives the potential investor a high level of confidence in the company’s services. When these accounts are handled correctly by a professional currency representative, managed forex accounts allow for a better chance of a steady yearly return. One of the downsides of managed forex accounts is that whether the account is profitable or not, management fees are still charged by the organisations and professionals. For a beginner trader, with low experience and judgment of the market, it is recommended that they deal with a reputable company that has enough experience in managed forex accounts. This will allow the trader to rely on the years of experience that the organization has in making good and trustworthy business decisions. Many of the companies who handle managed forex accounts tend to have important insider information due to the close interaction with other financial institutions. This allows them to be aware of currency exchange rates and market changes promptly. This, in turn, will allow them to use the information to create a profit. Managed forex accounts hold many advantages. Firstly, it allows the investor to achieve a good rate of growth without having to go through research and spend time themselves. Secondly, they have the flexibility when it comes to withdrawing funds from the managed forex account. This is due to the very liquid nature of the forex market. This allows the manager of the investor’s account more opportunity to increase profits. Thus, if you are interested in the forex market, but don’t have the know-how of participating in it yourself, creating a managed forex account is recommended.

Forex Trading Education

2009-08-29T08:32:00.000-07:00

Forex trading education is for sure the best and only road to take when trading foreign exchange. As a trader or investor, you should thoroughly and effectively learn how the currency market tick. As you see and understand, currency trading is not about guessing over which currencies will rise and fall and where to lead investments of capital. More importantly, foreign exchange trading involved your money, which could grow and further accumulate on sound and effective investment techniques and strategies or deteriorate, deplete and be gone due to unwise and unprofitable trading practices.
There are many advantages of taking a proper forex trading education. First of all, currency trading is a dynamic market practice. That is the reason why you should understand the market better as well as all the influencing and affecting factors that dictate how the market behaves. Forex trading is a profitable, yet risky investment activity than can make or break an investor and a trader. Without basic market knowledge, it is important to make and implement sensitive and wise decisions, which are necessary when aiming to make the capital grow.
Forex trading education helps investors and traders get to know, pick and actually use functional and helpful tools and technologies for currency trading. There are many foreign exchange trading platforms and systems that are abounding in the market. Choosing the right and appropriate one always entails having the right knowledge and information about such an activity.
Currency trading is all about bidding and closing deals. As such, there is a need to learn and practice how to read various useful charts and documentary reports. There are published information, which could not be used and utilized appropriately if the user is not educated enough about the perks and risks associated to currency investment.
Surely, getting the knowledge and skill about correctly reading and interpreting forex charts and information is very important when aiming to progress in foreign exchange markets. As such, wise and patient people are always favored. Without the proper education and trading, how could anyone be able to protect and maintain his own investments and overall investment welfare.
Begin by learning elementary concepts about forex trading. Thus, such trading is always prioritized and recognized. It would be hard to imagine living without much savings for the future, especially for workers with limited access to cash and capital. Forex trading education is very popular these days especially for workers and immigrants who would endure being away from families and friends.

forex is a good teacher

2009-08-29T08:29:00.000-07:00

Nowadays there are a lot of people searching for alternative earnings. And lots of them choose Forex market for that purpose. At the same time lots are trying to answer the question: “What is Forex: work or game?!”
Many people come to Forex market with a desire of receiving fast and easy profit. But, after getting acquainted with the system of earnings, they understand, that it is impossible to get easy money on Forex - it is necessary to work hard constantly. And only at the expense of diligent and efficient work you can begin to earn.
When a person begins to understand that fact, he has 2 variants to choose from: either starting to get acquainted with Forex in detail or leaving it once and forever. Forex is not a nice place for cheapskates, only intellectual and hard-working people can become successful there.
So, Forex it not only a way of earning money, but also a way to raise your intellectual level. Every trader must be constantly informed about quotes, rates, etc. Quite a big amount of specialized literature is required too - traders read hundreds specialized books throughout their performance on the market.
It is also important to analyze past events on the market. The trader can learn to carry out the analysis of his past wins and losses. And constant working with elements of technical and fundamental analysis widens trader’s outlook and stimulate his interest in different spheres of science and technical. That helps him to build private strategy for successful trading.Without constant studying and improving your trading skills there won’t be any profits. Forex helps you to structure the thoughts. That means that you will learn how to combine and divide information and use for your purposes.
Another important fact is that Forex develops trader’s psychology. Remember, that you must always keep to a condition and not lose your temper in order not to lose your deposit. Every person working in the market Forex, must understand, that he can remain without profit if not taking into consideration some little details. And making a decision about opening a positions depends on trader’s ability to risk and at the same time keep the situation under the control. Therefore psychology of the player is one of the basic aspects of successful Forex trading.
As you see, all above-stated factors raise the general intellectual level of the trader. Ability of analyzing the situation, structuring the data, working out and using a strategy - all that can be helpful not only in the market, but also in everyday life.

Make a Living With FOREX

2009-08-29T08:26:00.000-07:00

Have you ever dreamed of owning your own business and making a living without having to work so hard for someone else? Do you feel under appreciated in your current job or like you work day in and day out just to make ends meet? Would you like to be able to own your own business, operate it from home and have more time for doing the things you enjoy?
Did you know that the FOREX can do that for you if you know how to invest properly? Many people are aware that the foreign exchange has a lot of potential for big money but they mistakenly think that they can ever achieve that. They think FOREX is only for the big-money investment firms that are experts in the area. But what if you could be an expert, too? What if you could learn the secrets to making millions on the foreign exchange without spending thousands of dollars and hours working at it?
We have a strategy that can help you make a living with FOREX. This proven-effective investment strategy is completely different from anything you have encountered before because it allows you to:
• Control your money with your own brokerage account and you place all of your own trades• Learn without confusing charts or graphs to read or any research required• Trade in currency pairs which always move in opposite directions• You rarely exit your position• Spend only a few minutes a week to manage a portfolio of any size• Select your interest rate. (Keep in mind the higher the rate the higher the risk.)• Balance your portfolio to earn varying rates of interest on your account.
The fact that you will be investing in countries that are so large they are not easily manipulated is one bonus to the FOREX as opposed to the regular stock market. You only have six major currencies to choose from instead of hundreds like with the stock market. There is a minimal transaction cost and you can join up for a mere $100.00 a month plus a one time fee of $25.00 for setting up the account.
There are even more reasons to try this great investment strategy and own your own business. It is easy and fast to set-up the trading account. It can be done within a couple of hours. Once your account is set-up you get to just relax and let it do all the work for you.
In time, you will be more confident in your trading abilities and you will see bigger and bigger profits. This is much better than spending countless hours trying to teach yourself how to trade successfully or better than relinquishing control to a professional trader that does everything for you. You are in complete control without all the hassles and you can truly enjoy your own business.
When I first started researching the Forex I learned that it would take months to learn and studying charts and graphs and a lot of money to get started. Something that a full time job would not allow me to do.
Then a good friend of mine introduced me to a forex investment strategy. He told me how easy it was to learn and how it required no formal training and that I could be up and running in less than 3 hours. He also told me that he was earning monthly what banks and mutual funds were earning yearly.
You can only imagine my skepticism. So I started doing some research on the company and the proprietary software they were using. I took a leap of faith and opened up a demo account, and to my surprise everything that they claimed was true. I can honestly say that I'm earning more a month than my mutual funds and my bank are earning a year. This company does truly care about people and that is rare in this industry. I opened up my Live account on April 10, 2007 and I'm doing very well.

Automated Forex Trading Software!

2009-08-29T08:25:00.000-07:00

For people who have little or no experience in forex trading, still want to enter the field, automated forex trading software is best advised as it is a system that works according to the investment plans of the trader.
For investors who do not have much money to invest automated software helps a lot in making investment decisions. It helps in closing good deals and the trader can rely up on the system to prevent losses. Forex trading has become a lot easier with the coming of automated software.
Software like these are generated by people with a lot of experience in the industry thus the software is reliable for its work and quality and traders who have no idea of how to work in the forex market can take advantage of the software.
The program does the work on its own and you are left with no worries at all. It makes and finalizes deals on its own and keeps you updated on the market situation leaving you with ample time at your hands. Forex trading software is useful for not only a novice but an established trader and broker to know the market position. The software signals them on when a good deal is available and they do not have to worry and keep an eye on the deals.
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A trader can search for the best forex trading software online, as they are all available on the internet. He has to look for the software that is best suited to his requirements and trade methods. The software is quite easy to operate and the trader can accrue immeasurable profits with the use of the software for trading.
Trader can also download forex trading software which again is readily available on the internet. The software can also be found on the forex market online. The best forex software would be the one that comes with guidelines for usage and is very user-friendly.
Once a trader has found the apt forex software online, he is required to learn how it works and once the learning process is over it is very easy for the trader to trade online. All the work is done by the automated software and trader can indulge into other business activities at the same time. A trader can also go with cheap forex trading software, and it being cheap does not mean it is not good. It can work equally well and produce excellent results for the trader. So working with an automated forex trading software makes the trader's task quite easy which would otherwise require tedious trading effort on the part of the investor.

How is the forex spot rate calculated

2009-08-29T08:20:00.000-07:00

The forex spot rate is determined by supply and demand. Banks all over the world are buying and selling different currencies to accommodate their customers’ requirements for trade or to exchange one currency into another. For example, an American bank receives a deposit from a German bank on behalf of their client who wants to buy something from a company in America. The German client has to pay the American supplier in dollars. The German client has euros and these euros need to be exchanged then for dollars. The German buyer will instruct his bank to exchange the euros to dollars and transfer the money to the U.S. supplier. If the bank doesn't have a supply of dollars, it will buy the dollars from another bank and sell euros. The sum total of all banks selling dollars and all banks buying dollars creates a supply and demand for U.S. Dollars. If the demand for dollars increases then the dollar will appreciate against other currencies. If the demand drops then the dollar depreciates against the other currencies. The rates are set by all the participating banks bidding and offering currencies all day long amongst each other. This is the interbank system and is the way currencies are traded and the way exchange rates are determined.

Simulated forex trading

2009-08-29T08:17:00.000-07:00

As I was browsing the net, I found an article in ezinearticle site about simulated forex trading and I was kinda curious about this.. So here's some information about this:
Simulated Forex trading is the best opportunity that beginner Forex traders have to practice their Forex skills. This article will go into detail discussing what simulated Forex trading is and why beginners must try simulated forex trading before they risk their own money. Keep reading to get access to a $100,000.00 simulated Forex trading account of your own!
Simulated Forex trading is practicing Forex trading without risking any of your own money. This is an ideal way for beginner Forex traders to perfect their Forex knowledge before taking the next step of trading on Forex with their own money.
Simulated Forex trading allows the trader to make trades just like you would in a real Forex market with your own money.
With simulated forex trading the beginner Forex trader gets the full functionality of an online Forex broker at zero risk to the Forex trader.
Simulated Forex trading involves the same real charts and live price data as would occur if trading live. Simulated Forex trading will give beginner Forex traders, or traders needing to improve their self-confidence, the same fundamental Forex experience as if you were in the live "real" Forex market by allowing the Forex trader to gat the same live Forex streaming data used by successful, professional Forex traders.
Simulated Forex Trading allows the Forex trader to keep their emotions at bay. While you won't feel your pulse racing as it would if you were risking tens of thousands of dollars, it gives Forex traders a fantastic starting ground to practice their Forex fundamentals before taking it into the real world and putting their hard-earned money at risk.
Simulated Forex trading allows beginner Forex traders to learn the fundamentals of Forex money management and to perfect their Forex technical analysis skills, which are one of the most critical fundamentals of every Forex trader.
I would strongly discourage any beginner Forex trader starting out with their own money. To do so is virtual financial suicide. I suggest you start simulated Forex trading immediately. Make sure that the simulated Forex trading account has access to a reasonable amount of money to play trade with. At least $75,000 is the ideal. Keep reading to get access to a $100,000.00 simulated Forex trading account.

Big players only see big numbers

2009-08-29T08:14:00.000-07:00

I am typing this from my pc. It a bit of a mess now, the new house still needs a little work and I am not feeling well lately. Maybe its the change in climate. This week I am going to talk about numbers only. Forex is after all based on numbers. Example, I have a long position on GBPUSD @ 1.4700 with a profit of 320 pips at the moment and still holding. What I am going to say is big players only see big number. The do not see the last 2 digit. The last 2 digit is for scalpers. Big players only see the 1st 3 or 4 digit only. So if a bank wants to buy or hedge a currency they will give an instruction to buy at 1.47. Thats it. Simple yet people fails to see it.So what happens at 1.47? The price will bounce of or hover around it but things arent always what they appear to be. What happen is price will have a range between 1.46 - 1.48. That is almost 200 pips wide range. Imagine what happen to your 50 or 100 pip SL?? Now you know why people lose money even though they have the right direction. These big players have big money they dont mind to stand few hundreds negative pips coz in the end they will profit big time. What they do is they will have a standing order to trade at certain level. Because the total amount of order, the market cannot fill the order in 1 transaction and so price will hover or bounce of a certain level. This is where double top or bottom appear. Behind it is the action of filling orders by these big players. Example EJ currently have a top of 1.34 and a bottom of 1.30. Big players are playing the game here. At the moment EJ is climbing and there is a big possibility that it will reach 1.34 again. I have a standing order to buy EJ at 1.30. If it hits there is a very big chance for 400 pips gain. Only time will tell.

Forex scam

2009-08-29T08:13:00.000-07:00

A forex (or foreign exchange) scam is any trading scheme used to defraud traders by convincing them that they can expect to gain a high profit by trading in the foreign exchange market. Currency trading "has become the fraud du jour" as of early 2008, according to Michael Dunn of the U.S. Commodity Futures Trading Commission. [1] But "the market has long been plagued by swindlers preying on the gullible," according to the New York Times [2]. "The average individual foreign-exchange-trading victim loses about $15,000, according to CFTC records" according to The Wall Street Journal. [3] The North American Securities Administrators Association says that "off-exchange forex trading by retail investors is at best extremely risky, and at worst, outright fraud." [4]
“In a typical case, investors may be promised tens of thousands of dollars in profits in just a few weeks or months, with an initial investment of only $5,000. Often, the investor’s money is never actually placed in the market through a legitimate dealer, but simply diverted – stolen – for the personal benefit of the con artists.”[5]
In August, 2008 the CFTC set up a special task force to deal with growing foreign exchange fraud.”[6]
The forex market is a zero-sum game [7] , meaning that whatever one trader gains, another loses, except that brokerage commissions and other transaction costs are subtracted from the results of all traders, technically making forex a "negative-sum" game.
These scams might include churning of customer accounts for the purpose of generating commissions, selling software that is supposed to guide the customer to large profits, [8] improperly managed "managed accounts", [9] false advertising, [10] Ponzi schemes and outright fraud. [4] [11] It also refers to any retail forex broker who indicates that trading foreign exchange is a low risk, high profit investment. [12]
The U.S. Commodity Futures Trading Commission (CFTC), which loosely regulates the foreign exchange market in the United States, has noted an increase in the amount of unscrupulous activity in the non-bank foreign exchange industry.[13]
An official of the National Futures Association was quoted [14] as saying, "Retail forex trading has increased dramatically over the past few years. Unfortunately, the amount of forex fraud has also increased dramatically..." Between 2001 and 2006 the U.S. Commodity Futures Trading Commission has prosecuted more than 80 cases involving the defrauding of more than 23,000 customers who lost $350 million. From 2001 to 2007, about 26,000 people lost $460 million in forex frauds. [1] CNN quoted Godfried De Vidts, President of the Financial Markets Association, a European body, as saying, "Banks have a duty to protect their customers and they should make sure customers understand what they are doing. Now if people go online, on non-bank portals, how is this control being done?"

Fundamental review of the week from 01.06. year to 05.06.2009

2009-08-29T08:08:00.000-07:00

The week begins with retail sales in Australia in April. The sector enjoyed solid sales in recent months as the combination of fiscal and monetary incentives "otduha 'consumer portfolios. Over the past months, signs of improving the overall consumer confidence also support retail. By continuing incentives (in the form of fiscal variations) during April, and total disappearance of the speculator market during this period we expect a new sound-percent increase in sales for the month. Later PMI index of European countries and the euro will show whether improvements in the Old Continent and may lead to new "bichi movement in favor of the euro. The main index of U.S. consumer spending for April will also be removed - the capacity and extend the recession reduced price to a point of deterioration and inflation pressure down during the next 12 months. But it is proven that this will show a little more slowly in the data, based on inflation, which has stabilized recently. Manufacturing index recovered from 28-year bottomed in 32.9 in 40.1 Dkemvri it for April, which was the lowest for the past 18 years, if the last 6 months were never happen.On Tuesday the Swiss GDP may help to "rally" in the franc and the pair dollar / Frank down to below 1.0400, if any improvement in the Swiss economy. Mortgage loans approved in the UK 11:30 will give us a clearer picture of England and if there is resurgence in the credit sector. Pounds are expected to be extremely volatile on its main krosove. Unemployment rate of the euro is expected to increase compared to the previous period, which may slow down upward movement of the euro against the dollar, but we assume that this will be only short-term correction in favor of the state currency. Unsold U.S. homes go 17:00 on Tuesday and will reveal whether there is a chance the U.S. construction sector to show any effect.On Wednesday morning PMI index released by the European countries and we suggest that management's confidence in the sector has improved, and if so, to support the euro in the news. Then the UK also exports its PMI index, and decrease it may weaken pounds short. U.S. ISM index afternoon - the decline in services is no longer so sharp, even refund is quite sharp. Shows continued improvement for profits, but we see that the ISM is less important for obrashtaemostta inventory and probably more frustrating than production data.Thursday, we expect highly volatile session for the main doubles as removal of the decisions of the Central Bank interest rates in the euro area, UK and Canada then. ECB will not surprise us, and levels are expected to remain unchanged to 1.00 percent, but there is little chance for reduction of 25 basis points to 0.75 percent and if this happens will quickly lead over euro 1.5000 against the dollar. Predvaritelniet studies show that the interest of England will also remain unchanged since the British economy shows signs of improvement and the government prefers to maintain a 0.5%. Canada to suggest that because the strong Canadian dollar against major opponents.On Friday will be removed from the CPI and the Swiss can support Frank during the morning session. Later that day Zaetostta in non-agricultural sector for the month of May and the unemployment rate (9.2 percent expected) are expected to be exported. Like most recent statistics, wages seem to be prepared to show improvement. Weekly initial jobless claims to step back slightly from recent peaks and indicators of labor market improve. But levels continue to grow and the level of unemployment nearing 10 percent. We believe that these figures reflect more on the demand in the economy and will be too slow to improve it will continue to be key challenges for households and politicians.

Retail forex

2009-08-29T08:01:00.000-07:00

In financial markets, the retail forex (retail off-exchange currency trading or retail FX) market is a subset of the larger foreign exchange market. This "market has long been plagued by swindlers preying on the gullible," according to The New York Times [1]. Whilst there may be a number of fully regulated, reputable international companies that provide a highly transparent and honest service, it's commonly thought that about 90% of all retail FX traders lose money. [2] [3]
It is now possible to trade cash FX, or forex (short for Foreign Exchange[4] (FX)) or currencies around the clock with hundreds of foreign exchange brokers through trading platforms. The reason that the business is so profitable is because in many cases brokers are taking the opposite side of the trade, and therefore turning client capital directly into broker profit as the average account loses money. Some brokers provide a matching service, charging a commission instead of taking the opposite site of the trade and "netting the spread", as it is referred to within the forex "industry."
Recently forex brokers have become increasingly regulated. Minimum capital requirements of US$20m now apply in the US, as well as stringent requirements now in Germany and the United Kingdom. Switzerland now requires forex brokers to become a bank before conducting FX brokerage business from Switzerland.[citation needed]
Algorithmic (automated) trading has become increasingly popular in the FX market, with a number of popular packages allowing the customer to program his own rules.[citation needed]
The most traded of the "major" currencies is the pair known as the EUR/USD, due to its size, median volatility and relatively low "spread", referring to the difference between the bid and the ask price. This is usually measured in "pips", normally 1/100 of a full point.[citation needed]
According to the October 2008 issue of e-Forex Magazine, the retail FX market is seeing continued explosive growth despite, and perhaps because of, losses in other markets like global equities in 2008.

Foreign exchange market

2009-08-29T07:57:00.001-07:00

The foreign exchange market (currency, forex, or FX) trades currencies. It lets banks and other institutions easily buy and sell currencies. [1]
The purpose of the foreign exchange market is to help international trade and investment. A foreign exchange market helps businesses convert one currency to another. For example, it permits a U.S. business to import European goods and pay Euros, even though the business's income is in U.S. dollars.
In a typical foreign exchange transaction a party purchases a quantity of one currency by paying a quantity of another currency. The modern foreign exchange market started forming during the 1970s when countries gradually switched to floating exchange rates from the previous exchange rate regime, which remained fixed as per the Bretton Woods system.
The foreign exchange market is unique because of
· its trading volumes,
· the extreme liquidity of the market,
· its geographical dispersion,
· its long trading hours: 24 hours a day except on weekends (from 22:00 UTC on Sunday until 22:00 UTC Friday),
· the variety of factors that affect exchange rates.
· the low margins of profit compared with other markets of fixed income (but profits can be high due to very large trading volumes)the use of leverage Main foreign exchange market turnover, 1988 - 2007, measured in billions of USD.
As such, it has been referred to as the market closest to the ideal perfect competition, notwithstanding market manipulation by central banks. According to the Bank for International Settlements,[2] average daily turnover in global foreign exchange markets is estimated at $3.98 trillion. Trading in the world's main financial markets accounted for $3.21 trillion of this. This approximately $3.21 trillion in main foreign exchange market turnover was broken down as follows:
· $1.005 trillion in spot transactions
· $362 billion in outright forwards
· $1.714 trillion in foreign exchange swaps
· $129 billion estimated gaps in reporting

Trading Robots - Forex Made Easy?

2009-08-29T07:56:00.002-07:00

You want more money. Not just a little bit more, a few extra dollars here and there, you want a lot. Enough to quit your job, and live the life you want. Supposing that you did find a way to achieve that, what would you do?
If you went to sleep tonight, and woke up tomorrow to find all your bills paid off, and cute girl from the bank knocking on your door telling that somehow a billion dollars was deposited into your checking account, what would you do?
How would you spend the day? What would you tell your friends? Would you still to work, content with the knowledge that now you could leave anytime you wanted to, able to enjoy it more knowing that you were now doing it out of love, rather than need? Or would you hire an expert team of covert demolition technicians to quietly go in and destroy the place before anybody showed up?
Well, believe it or not, there are plenty of ways to make truckloads of cash. Others have been doing it, why not you? (And some of these ways are even legal!)
One way that more and more people have been discovering is the Forex currency market. Yea I know, I know. The Forex is filled with horrible risk that can reach into your secret financial hiding places and make you homeless within seconds.
But it doesn't have to be that way. Sure, if you plop down a couple thousand, and then check back in a couple weeks to see how you are doing, it will almost certainly be gone.
But there are ways to make sure that doesn't happen. By watching the markets closely, and developing a solid strategy, coupled with unbreakable stop loss and profit target rules, it can actually be much easier than you think to make money in Forex.
The trick is to develop trading rules, and stick to them. With a stop loss of three or four percent, and a profit target of twenty or thirty percent, you only need to make one profitable trade out of four to make money. Please note that this is completely different than other "buy and hold" strategies. You need to be nimble, and get in and out as quickly as a navy seal.
One way that many people are discovering makes this incredibly easy is using trading robots. Once you set your conditions, and decide on your stop loss and profit target, the robot does the rest. It removes the emotions, namely fear and greed, which can get in the way of a successful trade.
Once you eliminate those two, you are halfway to an automatic profit system in Forex. The other half is being able to pull the trigger, another reason why people like using trading robots so much. They can take all of the guesswork out of trading, minimizing your time, and maximizing your profits.