Master the art of trading forex

Is this the right time to invest in foreign currencies?

noreply@blogger.com (VIRENDRA SINGH DHAKAD) — Sat, 03 Sep 2011 11:36:00 +0000

Dear investor, if you are seeking for the golden opportunity to invest then this is the one for you. As you know that the forex market is totally different from the stock and the commodity market in terms of generating profits both the ways. Many of the foreign banks have collapsed in last months due to recession in the stock market and high price rise. Dollar has dropped down in its value. Many of you, who had invested in the stocks and commodities, might have lost your valuable savings. See, it is a simple fact that when the stock markets collapse then the investors are remained only with two options. One is that they sold their stocks in loss or the other one is that they can keep it for the long duration of time by just hopping for the recovery. But in both the cases, there is no surety that whether you will get your money back or not.

Now this is the time where you should learn to trade forex. Here, you can earn money both the ways. No matter, where the prices of stocks are going on. Just keep on following the news. If some currencies are going down then keep on selling them and buy the currencies which are moving up. It is much more simple then investing in the shares. So, stop worrying for your holdings. Come out of the stock market. Not million, not billion, but a trillion industry is waiting for you. Just go and grab the opportunities.

Facts you need to know about the U.S. Dollar

noreply@blogger.com (VIRENDRA SINGH DHAKAD) — Wed, 13 Jul 2011 07:18:00 +0000

U.S. Dollar does not need any introduction as it is the king of the foreign exchange. Forex trading is rapidly increasing. People are buying and selling currencies more frequently. Popularity of the U.S. Dollar is at the charm. In short we can focus on the following points.

1. The service sector in the United States is continuously increasing.

2. It is at the top most position in the world and acting as the world’s reserve currency.

3. The prices of U.S.D. are based on the hundreds of events taking place worldwide. It is driven in both directions (up and down) by these good or bad events

Largest Economy behind the U.S. Dollar (USD)

As we know that the United States is the biggest economy worldwide. But we should not ignore the present conditions where this economy is continuously moving under debt. And the effect of total national debt can be seen on the economical activities. We can say that in future, the impact of USD may decline if U.S. does not take a major action against its debt. But if we consider foreign exchange or the forex trading, it is the largest traded currency. The EUR/USD forms a strong pair which trades the largest volume in forex trading market.

Forces moving U.S. Dollar

The currency exchange rates are being predicted on the basis of various theories based on interest rates, price levels, GDP etc. But these factors alone are not capable of deciding the value of U.S. Dollar in the forex market. This is because of thousands of financial institutes, government bodies and the retail investors are continuously engaged in buying and selling the currencies in different parts of the world. So, we can say that the U.S. dollar is driven by the forces around the globe, some of them may be in its favor and some may not. These activities may include the political instability, conditions of the war, economical instability, import and exports and the forex trading in very large volumes.

Conclusion

The prices of foreign currencies are difficult to predict in forex trading market. You can focus both on the fundamentals and the economical news for the short period of time but I would like to suggest you to be more focused on the technical analysis on the basis of strong support and resistances including some technical indicators; if you are a serious forex trader. Forex trading is not your cup of tea if you don’t have a system or plan to execute in a proper way. Before trading U.S. Dollar or Euro in the forex market, you should have an entry and exit strategy. After completing writing on the forex trading basics, I will be guiding you to the deep chart analysis, and making entry and exit strategies. Till then you continue reading about these basic things of forex trading.

Facts about the Euro

noreply@blogger.com (VIRENDRA SINGH DHAKAD) — Mon, 11 Jul 2011 12:02:00 +0000

Introduction to the euro

The Euro is an exclusive currency in the global market. Forex trading is continuously increasing day by day. This is a very popular playground for the investors and the speculators. You might have read the benefits of trading forex. Thus you should be familiar with this special currency.

1. The euro is the second most traded currency in the forex market.

2. The euro alone is the authorized currency of 27 states, which are the members of European Union.

Forces behind the Euro

To be short and simple, GDP, current accounts, rate of inflation, trade balance, production and consumption of the European Union are the main factors which are responsible for the up and downs in the value of the euro.

Future in trading the Euro in forex

As I mentioned earlier; the euro is the second most active currency in the forex trading market. And the euro is continuously gaining strength day by day. In future; as a reserve currency this may be the stronger alternative to the dollar. The euro is not going to collapse due to its strong foundation and growth. Euro and USD thus forms a strong and highly active pair in foreign currency trading. So you should focus on EURUSD to bring out the heavy profits to your portfolio.

How gold affects currencies and foreign exchange.

noreply@blogger.com (VIRENDRA SINGH DHAKAD) — Sun, 10 Jul 2011 07:19:00 +0000

Gold has a very prominent role as far as the investment world is considered. As we know that gold is no more used as the base for the currency prices but then also it has a wide impact on the prices of currencies.

1. The economy which import or export the gold is affected by its prices.

As we know that the value of currency of any country is directly proportional to its export and is inversely proportional to its import. As gold is a very precious metal. So when a country exports the gold or has got high reserves of gold to exports strengthen its currency and when it imports the gold then the value of its currency declines.

2. The value of a local currency is measured by the prices gold with few exceptions.

This is very true that gold has a relation with prices of local currencies, but it does not have an inverse impact as assumed by many people.

3. Is gold a currency?

Gold is not used as a currency but then also it acts as a currency in a free market system. We can say so as gold is bought and stored by the countries and many a times it is used as a method of direct payment.

4. Gold and the USD (U.S. Dollar)

Gold has always remained a strong relationship with the U.S. Dollar. For a long time it was assumed that these both are inversely related to each other as the Prices of U.S.D. tends to decline with an increase in the gold prices and vice-versa. This was all because of Bretton Woods System according to which U.S. government had promised to redeem U.S. dollars at a fixed gold rate and the system was dissolved in 1971 and United States remains a global power in 2010. But this is not always true. Always remember that gold is a universal commodity hence, the gold always reflects the global sentiment, not the sentiment of one country or the group of countries.

5. The conclusion

It should be noted that the gold should be treated as a currency in a free market system just like U.S. Dollar, Yen, and Euro etc. Always remember that the gold is forward-looking. So, you should not wait till a disaster strikes an economy. As I said, gold trades against the U.S. dollar, not always but most of the times. So keep an eye on the prices of gold and U.S.Dollar while trading forex or investing in the foreign currencies.

See this video to see how gold affects the forex market

Types of forex traders: What type of forex trader are you?

noreply@blogger.com (VIRENDRA SINGH DHAKAD) — Sat, 09 Jul 2011 10:19:00 +0000

There are many things which separate great trader from the good ones. These are the levels of their guts, intelligence, instincts, source of motivation. But still there is a factor which is the most important and is above these all and that is the timeframe on which a trader trades the foreign
exchange or the forex. Most of the common traders trade forex with a single time frame, but masters use the different time-lines to study the trends and execute their trades perfectly. Enter and exit strategies also depend on these time frames. Forex traders can be categorized in the categories given below:

1. Day trader
In simple words we can say that the trader whose trades lasts for a day. Day traders usually don’t want to hold their trades for more than a day, except few trades. They like to close all their open trades before the session is closed for the day. They trade the most volatile currency pairs using technical analysis on one, five or 15-minute charts. They spent long hours in front of their computer screens.

2. Swing trader

These are the second type of traders which trades for longer duration of time than that of day traders. These forex traders hold their positions for few hours to few days or sometimes even for a weak. These forex traders also prefer technical analysis over fundamental analysis. They take their positions by reading hourly, daily and weekly forex charts.

3. The position trader

Position traders are the third type of forex traders. They believe in long term capital gains. They don’t sit in front of the computer screens for long hours. They trade on the longest time frame among these three kind of forex traders. They are usually having long term plan. Their position on a single trade can last for some days, weeks, months or even years. They do take a look to technical forex charts but prefer the fundamental analysis to take the descisions. But it requires you to have big portfolios like a banker, a hedge fund manager or some financial body.

Now according to your portfolio, routines and the time you have decided to trade forex, you can ask yourself, what time frame is suitable for you?

Top 10 rules for trading forex (foreign exchange)

noreply@blogger.com (VIRENDRA SINGH DHAKAD) — Sat, 09 Jul 2011 08:26:00 +0000

1. Don’t trade with your real account until you start winning currency trading on your demo account.
2. Be logical, don’t be impulsive.
3. Trade forex with 2-3% of your equity per trade.
4. You should have a perfect Enter and Exit strategy.

5. Trade strong vs weak pairs.
6. Enter early at the pivot points.
7. Plan your trade and trade your plan.
8. Don’t, Move against the trend, Remember “trend is friend”
9. Risk Can Be Predetermined, but Reward Is Unpredictable
10.If your strategy is perfect and time tested and then also you are losing, then control your emotions of fear and greed.

Forex trading is an art which can be mastered by practice. So don’t give excuses, just keep on moving to win the battle. You can be the king of foreign currency market.

How to open a forex trading account?

noreply@blogger.com (VIRENDRA SINGH DHAKAD) — Thu, 30 Jun 2011 14:32:00 +0000

1. Choosing a good forex broker

In order to open a forex trading account, first off all you will need to choose a good forex broker. There are hundreds of forex brokers available on the internet, some of them are just frauds. You

need to investigate first. Search the internet and find more information about them as more as you can. When you are decided to open an account with a particular forex broker, you will need to follow these steps.

2. Filling up the personal details form

Before trading forex through any broker you need to fill a form with personal details. This form can be provided online or you can download it offline from the source website of the forex broker. Fill this form accurately to proceed further which includes your full name, date of birth, email address, phone number, bank details, credit card number etc. (bank details can be asked latter by some brokers).

3. Submitting the proof of identity

Most of the good forex broker won’t allow you to trade foreign currencies until you submit the proof of your identity. This can be any card issued by the government of your country with photo proof and your full name on it.

4. Submitting the proof of address.

Proof of address is also required to be submitted to complete the process for forex trading. The best proof of address is your bank details, or the utility bill like water supply bill or electricity bill. Phone bill or bill of your mobile phone is not supported as the proof of address by good forex brokers.

5. Depositing the money to your forex trading account

When the identity of yours is confirmed then they will give you an account number and the password on your email address and over the phone number which you provided. You can deposit funds to your account through different means like, paypal, net banking, direct account transfer, bank cheque etc. depending on the service provided by your broker.

And the work is over now, you can start trading foreign currencies now through your real account. But still there is a suggestion for you to make you a better trader. You should first practice the whole thing by opening a free demo account.

Enjoy currency trading.

What is MetaTrader 4?

noreply@blogger.com (VIRENDRA SINGH DHAKAD) — Wed, 29 Jun 2011 14:35:00 +0000

Metatrader 4 is basically a trading platform, which has been developed for trading foreign currencies, options and the futures.

MetaTrader 4 is originally developed by metaquotes.com. This company was formed in 2002. This is such a platform which is programmable. This software comes with all the technical tools inbuilt insid

e it, which helps in trading and making the new strategies for the different styles of trading.

"MetaTrader 4" is availed by a large number of good forex brokers. This software alone is sufficient to to trade forex if you are having a validated forex trading account.

Along with the technical tools available in the metaTrader 4 it consists of the four chart windows which can be seen simultaneously so that you can see 4 different trades at the same time. This is the most exiting feature of the metaTrader 4.

A snapshot of metaTrader 4 is given below. This is how exactly metatrader 4 look like on your computer screen when you are logged in.

META TRADER 4 SCREENSHOT

Who is a forex broker?

noreply@blogger.com (VIRENDRA SINGH DHAKAD) — Sun, 26 Jun 2011 19:39:00 +0000

A forex broker is an intermediate between a forex trader and the foreign currency market. It is not possible for a retail trader to trade the giant forex market without a forex broker. It takes almost a negligible amount of
brokerage (its fees) in change of the services it provides us at the time of trading.
A forex broker provides us a trading plateform, where we can see the live currency quotes along with the fluctuations in the market, and we can analyse the market through forex trending charts. Secondly it makes it possible to execute our order of buy or sell in the market.
Along with these services, it provides us the security of our funds, execution of pending orders, stop loss and take profit limits execution etc.
Choosing a good forex broker in the forex market is a typical task. It took me nearly six months to me to find a good forex broker. All forex brokers have different pros and cons. You need to select the one for you which suits your style of trading.

Is Forex a Scam?

noreply@blogger.com (VIRENDRA SINGH DHAKAD) — Sat, 25 Jun 2011 21:48:00 +0000

This is a very general question which many people ask about forex. Most of the new traders are confused about the word forex.I don't know why? but they keep on asking silly questions about forex.
My dear friends, I ensure you that forex or foreign exchange is
not a scam at all. Forex is a genuine way of trading the currencies. Forex is an OTC ( over the counter sale) market. Here total volume of 1.9 trillion dollars is traded every day. This is a very volatile but interesting market. If you make yourself familiar to trends, then profits start to come to your pocket. Forex is nothing but the exchange of one currency in terms of other. And in forex market it is done online through a forex broker. I am trading forex for last two years. So choose your broker and start trading. For any query you can leave your comment below, I am always here to take care of yours.I wish you happy forex trading.

Foreign currency calculator or Currency Converters

noreply@blogger.com (VIRENDRA SINGH DHAKAD) — Wed, 08 Jun 2011 05:47:00 +0000

The price of foreign currencies keeps on changing every second. So we can’t rely on the simple calculator. To calculate the value of any currency in terms of other currency we need to use the foreign currency calculator of say foreign currency convertor
. It is a designed software which is updated every second with the live currency quotes, you just need to enter the base currency and the quoted currency only, and the currency calculator works for you. You may find these currency converters on most of the websites which are based on forex. You can find currency calculator on every page of this blog on the left side of the bottom. So use it for your convenience, whenever you want to check the different foreign currency rates. You can also see the live forex currency quotes at the bottom of the page for major currency pairs.

What Is Foreign Currency Exchange?

noreply@blogger.com (VIRENDRA SINGH DHAKAD) — Tue, 07 Jun 2011 18:55:00 +0000

Foreign currency exchange is nothing but the exchange of one currency by paying for it in terms of some other currency. The currency which do not belong to your own country can be said to be a foreign currency. But if we talk about foreign currency trading,

it doesn’t make any sense. You can say that all currencies which are listed in forex market are termed as foreign currencies, which can either be purchased or sale to generate profits.

If you want to understand the term foreign currency exchange in an easy way than you can, review your experience when you went to a world tour and required some foreign currency. You may remember that you had paid few dollars to get some pounds, or you paid in Yen to get some dollars. Similar is the foreign currency market where the currencies are exchanged and this is called foreign currency exchanged in simple words. The world has given it a special name that is forex. And the trading of foreign currencies is termed as forex trading.

This was just the basic idea to make you understand the foreign currency exchange if you are new to foreign currency exchange or forex trading. You can visit the other posts on the left side of the blog ,if you want to learn the basics of foreing exchange trading in detail.

My Personal Experience Of Trading Forex

noreply@blogger.com (VIRENDRA SINGH DHAKAD) — Sun, 29 May 2011 06:08:00 +0000

This would be a great pleasure for me to share my experience of forex on with you .I am trading forex for last two years. I spent 8 hours a day with including 4-5 hours of analyzing forex trends and patterns and what I learned is really priceless.
These past two years gave a new direction to my life. Most of the people even don’t have any Idea about forex. You would be surprised to know that 90% of investors and traders are wasting their time and money as well. But what about the rest 10%, they are trading stocks and foreign currencies for profit only. Then what is the difference between those two kind of traders, one who loses every time and the other who keeps on increasing their wealth from the same source. Its just the knowledge, experience, believe and their attitude. These are the factors which separate them from the crowd .I am also trading forex for part time income and in future trying to trade it fulltime. As slowly I am getting confidence of what I am doing.

When I started two years back I lost 100$ within 4 days of trading with my first Forex account. The reason was the insufficient knowledge of Forex. But it gave me a different angle to think. I thought that if I can lost 100 $ within four days it means that there may be a day when I can earn 100 $ in four days too when odds are in my favour. And from that day I never turned back I started searching for the right things and played hit and trail with many strategies to learn to earn profits from the market. But all this I tried with Demo accounts.

After one and a half year I opened a real account with a good broker. You will be surprised to know that for past six months I have been able to get average 20% profit per month on my equity (capital) .This seems to be small but you will be surprised to know that If I am able to get it consistently than it can make me a millionaire within 5 years starting from 500$ only. As getting 20% per month simply means that I can double my equity at each five month. You can see the simple calculation below:

Starting Equity= 500$ (8 NOV 2010)
after 5 months=1000$ (mission accomplished 28 April 2011)
after 10 months =2000$ (target , 30 sep 2011, work in progress. )
after 15 months =4000$
after 20 months =8000$
after 25 months =16000$
after 30 months =32000$
after 35 months =64000$
after 40 months =128000$
after 45 months =256000$
after 50 months =512000$
after 55 months =1024000$
after 60 months =2048000$

Knowledge is the key to success, and even fate can be changed by believe and hard work. I started believing this thing two years ago and never turned back. And now my destiny seems to be very close to me. Dear friend you can also get rich if you believe you can. And Forex trading will be a child play for you starts learning the things. And starting from the beginning I will make you all the tools needed to be a professional trader at single platform. If you are really hungry for the riches then I will feed you to the best of my knowledge. Forex can reward you with a great wealth but don’t forget that forex is a very risky as well. No one, not even I can provide you guarantee for the profits from the forex but I can assure you If you believe yourself then you should start learning the things, only good knowledge of trends and market moves can provide you with the same. And I am here to make you learn technical as well as fundamental analysis of Forex.

Master the art of trading forex: Base currency and quoted currency in Forex

noreply@blogger.com (VIRENDRA SINGH DHAKAD) — Wed, 25 May 2011 13:16:00 +0000

Master the art of trading forex: Base currency and quoted currency in Forex

Base currency and quoted currency in Forex

noreply@blogger.com (VIRENDRA SINGH DHAKAD) — Wed, 25 May 2011 13:16:00 +0000

As we all know that in Forex one currency is traded against the other. So, the currency trading is done in pairs. And these pairs consist of two currencies one is Base currency and the other is Quote currency which are defined below.

Base currency:

Base currency has two properties

Base currency is the first currency which is quoted in the currency pair
It is always quoted as one against the quoted currency

For example: if 1EUR/USD is quoted as 1.5020/1.5023 it means that you can either buy one Euro by paying 1.5023 or you will receive 1.5020 for each Euro you sell.

Quoted Currency:

Quoted currency has two properties

Quoted currency is the second currency which is quoted in the Forex currency pair
It is always having two prices which are fluctuating at the currency market price; which are Ask Price and Bid Price.

For example: 1Eur/USD quoted as 1.2350/1.2353. These two prices (bid and ask) are of the quoted currency for one unit of base currency.

Significance of Base currency and Quoted Currency while trading:

Now you are familiar with Base currency and quoted Currency in Forex market. Now the question is; how this information will help you while trading? Simple is the answer, Always remember that all the deals you make or you can say the orders of selling or buying a currency you place in the market, it is the base currency which is taken in account. For example if you place a buy order on a currency pair EUR/USD it means that you are buying EUR (Euro), similarly if you place a sell order on EUR/USD simply means that you are selling Euro. And in both the cases EUR is the base currency. Don’t bother about the orders for quoted currency; an opposite order is automatically placed by your broker, which you need not to consider.

Master the art of trading forex: What are Ask price, Bid Price, Spread and Pips in Forex?

noreply@blogger.com (VIRENDRA SINGH DHAKAD) — Wed, 25 May 2011 13:03:00 +0000

Master the art of trading forex: What are Ask price, Bid Price, Spread and Pips in Forex?

What are Ask price, Bid Price, Spread and Pips in Forex?

noreply@blogger.com (VIRENDRA SINGH DHAKAD) — Wed, 25 May 2011 13:03:00 +0000

What is Ask price in Forex?

This is the price of the base currency (in terms of quoted currency) at which an investor is going to buy the currency price. In simple words we can say that this is the price at which we buy base currency by paying in quoted currency.

For example: there is a pair EUR/USD, the ask price is quoted as 1.4362 simply means that
you need to pay 1.4362 US Dollar for purchasing one Euro.

What is Bid Price in Forex?

This is the price of the base currency at which we are going to sell the base currency (by taking quoted currency). This is just opposite to ask price. In other words we can say that this is the price at which we sell base currency, for which some other person (any online trader) pay us in quoted currency.

For example: if the bid price for EUR/USD is 1.4359 then it means that we can sell each Euro for 1.4359 US dollar.

Tip: Always remember that, Bid Price is always few pips less than the Ask Price or Ask price > Bid price.

Now there may be a question in your mind that why there is a difference between Ask price and Bid Price? Why Ask Price is greater than the Bid price? For this you need to have the knowledge of Spread, so as given below.

What is spread in Forex?

Spread is the difference between the ask price and the bid price of a currency pair. This difference is different for different currency pairs.

These differences (spread) of few point or pips between ask price and bid price is basically created by the Forex brokers which keep these pips as their fees. Or in other words we can say that this is the brokerage which a broker takes from its trader while buying or selling a currency.

For example: If BID/ASK for EUR/USD is 1.4050/1.4053. It means that the spread is 3 pips (1.4053-1.4050).

Tip: The lower is the Spread the higher is the benefit for us (as a trader).

Now you should know that what these points or pips are? In order to clear the topic read below.

What is a PIP in Forex?

PIP is the abbreviation for percentage in points (or price interest point). In currency market this term is used to reflect the smallest change in the price of a currency. Pips are also referred as points or ticks.

In other words you can say that this is the smallest move which a price of currency takes in either direction.

For few currencies it is calculated as fourth point after the decimal but for few currencies it is also calculated as second point after the decimal

For example: if the price of the currency pair EUR/USD moves from 1.4100 to 1.4125 simply means that it has risen by 25 pips. But for USD/JPY if price moves from 110.20 to 110.50 means that price had moved by 30 pips

Tip: All currency pairs are quoted with 4 decimal points except the pairs with JPY as the quoted currency (second currency in pair) like EUR/JPY, USD/JPY and GBP/JPY etc.

Tip2: One pip is worth 10 $ for all currency pairs with USD as quoted currency for a standard lot.

Major Currency pairs in Forex and Forex Currency Crosses.

noreply@blogger.com (VIRENDRA SINGH DHAKAD) — Wed, 25 May 2011 12:57:00 +0000

Before entering the Forex market you should know, which currency you have to trade and why? And most important are the timings to trade them as Forex Market is open 24 hours a day but then also there are few sessions when there is high liquidity in the market, which increases your chance maximize the profits trading those breakouts in the forex market.

Major Currencies and Major Currency Pairs

There are eight major currencies in Forex market. They are called majors as they are responsible for approximate 85 % of the
total transaction per day. Now you will be eager to know about them. These eight currencies are:

1. USD : US Dollar

2. EUR : Euro

3. GBP : Great Britain Pound

4. JPY : Japanese Yen

5. CAD : Canadian Dollar

6. CHF : Swiss Franc

7. NZD : New Zealand Dollar

8. AUD : Australian Dollar

As you know foreign currencies are traded in pairs. It simply means that buying of one currency means the selling of other currency at the same time. As you are familiar with forex major currencies, now I am going to tell you the 18 major currency pairs which are formed by these major currencies. Entire 24 Forex market revolves around these 18 pairs which are as following:

USD/CAD  EUR/JPY 

EUR/USD  EUR/CHF  

USD/CHF  EUR/GBP 

GBP/USD   AUD/CAD 

NZD/USD   GBP/CHF 

AUD/USD  GBP/JPY  

USD/JPY  CHF/JPY 

EUR/CAD  AUD/JPY  

EUR/AUD  AUD/NZD

What are Forex Currency Crosses?

Basically, All these 18 pairs mentioned above are Categorized in 3 groups.

1. Where USD (US dollar) is acting as a quoted Currency, it means it is the second currency in pair. For example: EUR/USD, AUD/USD etc.

2. Where USD is acting as a base currency, which simply means those pairs where USD is the first currency. For example: USD/CHF, USD/CAD etc.

3. Where USD is absent in the pair, and these pairs are known as the Forex Currency Crosses. For example: EUR/CAD, AUD/NZD etc.

You should always keep in mind these three categories while trading because; the pip (profit in percentage) value is calculated in the different manner for different categories. I think this information, mentioned above will give you the exact idea of Major currency pairs in Forex alias Forex Majors and Currency Crosses.

Master the art of trading forex: What is Forex? An introduction to Forex history and background along with Forex basics.

noreply@blogger.com (VIRENDRA SINGH DHAKAD) — Wed, 25 May 2011 12:50:00 +0000

Master the art of trading forex: What is Forex? An introduction to Forex history and background along with Forex basics.

What is Forex? An introduction to Forex history and background along with Forex basics.

noreply@blogger.com (VIRENDRA SINGH DHAKAD) — Wed, 25 May 2011 12:49:00 +0000

What is Forex? Forex history and background of Forex

Before you start learning about anything you must be familiar with the history and the background of that particular thing. As you want to learn Forex you must have the knowledge of what Forex actually is? How did it emerge? And how is it regulated and traded worldwide?

currency in earlier times

Forex simply means Foreign- Exchange. Forex, also known as Fx is the world’s largest market today. Forex is a very old concept of trading which continued for centuries with the
commercial activities. Before the existence of paper notes, the goods were exchanged with the other goods, this is how people trade in earlier time. This system of exchanging goods was known as Barter system. But there were limitations of this system which forced men to bring up some common base so that the valuation of goods could be done in terms of it. In many countries, feathers, teeth and metals served this purpose. Later on coins and currency notes came into existence, and the business of exchanging goods in terms of metal (gold) and currencies started.

Before the World War 1, most of the central banks of were agreed to put gold as convertible to their currencies. But in 1931, removal of gold standard caused a serious problem as gold faced a great depression. And from 1931 to 1971 there came many up and downs in the forex market. In between in july 1944, After world war II came to an end, the Bretton Woods agreement was proposed which helped in protecting local national interests. This agreement resulted in fixed exchange rates. It fixed per ounce of gold at 35 $ and also fixed other currencies with US dollar on a permanent basis.

introduction of paper notes to exchange

But in 1970’s the Bretton Woods was collapsed as due to increasing pressure on US dollar due to heavy US budget and trade deficits, dollar was no longer the sole of international currency. For the last two decades, restrictions and the pressure on capital flow is removed in most of the countries which has left the market forces free to adjust their selves.

currency at present: online forex trading

Now the investors and financial institutions have got a new ground to play.The fx market was initially working under the central banks and governments bodies but later on the other financial bodies also became the part of it and then forex became the largest financial market of the World. Now there is no central body which controls forex

Above is the history of the forex but at present 2.9 trillion dollars is traded every day in forex market, which is a great opportunity to the individual investors and traders to connect to the unlimited source of wealth in order to earn millions and billions of dollars in minimal time. Now the technology has made it easy for you to trade forex online. I think my experience of two years would serve a purpose for you, so if you are ready to learn then next article is for you.

What are the benefits of trading Forex Market; Stock Markets vs Forex market

noreply@blogger.com (VIRENDRA SINGH DHAKAD) — Wed, 25 May 2011 12:14:00 +0000

Before starting any business we try to find out the benefits of it. Below are the top most benefits of trading Forex market. This will clear the picture of the potential of this market in front of you. And this is an answer to those who keeps on asking, why I should trade Forex market if I am already a stock trader. So here we go now
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24 hour trading; trade on your schedule

Unlike stock markets, Forex market is open 24 hours a day, continuously for five days a week. It opens on Sunday at 5 pm ET (Eastern-Time) and closes its session on Friday at 5 pm ET. Forex trading begins each day from Sydney and it moves around the globe through Tokyo, London and then New York. Since the market is open for 24 hours, so an investor needs not to worry about the timings of trading every day. You can choose the best time for your trading according to your schedule. But it will be more beneficial for you to know about the different time zones and the heavy trading hours when the big economical markets collide.

1.9 trillion dollar per day, Forex is world’s largest traded market, High liquidity, Always moving.

At the Forex a very high volume of approximately 2 trillion dollar is traded every day so it helps in maintaining price stability in all market conditions. You can say that the market is having High liquidity so there is surety for continuous moves of the market every second. So in highly volatile markets also, an individual trader need not to fear to enter if its execution of trade is done at right position.85% Forex market is traded with major currency pairs. You also need not to think that which currency to trade, you can choose one of seven major currency pairs.

Very high Leverage of up to 400:1

It simply means you can start Forex trading with a very small capital or equity. Many good brokers provide you the opportunity to start Forex trading with an account of 50$ only. No other market except Forex can give you this opportunity to trade with this much of leverage. Only Forex provide you with a leverage of up to 400:1 for trading any pair of currency. This means that if you invest 100$ you can buy or sell, 40000$. But it is advised not to use the full leverage provided by your broker. Because on one hand it has the high potential of reward but on the other risk is also high. So it will be better for you learn the proper use of you leverage depending upon the equity and the risk level. Generally using 20% leverage is used by professional traders

Very Low transaction costs

Transaction cost is the money which your broker keeps in its pocket on the name of brokerage; no matter you gain or lose money. You might have seen that while buying or selling stocks your stock-broker charge you with a big amount of transaction cost. But in Forex market due to high liquidity and quick price movements, most of the Forex brokers charges almost zero transaction costs.

Earn equally in rising and falling markets, No short selling restriction

You might have seen that when the rates of a particular stock increases then an investor is very happy if he is owning few shares of that particular company but what if the stock market goes down. He starts screaming and praying for the prices to go up as he is losing money and he can’t do anything as he hope that the prices will rise and if it does not happen he lost his stocks or sell them in loss. Some smart investors try to short the stocks but that is prohibited by most of the stock brokers, hence they don’t have other option rather than losing money. But in Forex market the story is different .Here you can buy the currency in rising market and sell the currency in falling market. And the profit is equal in both the direction. And there is no restriction on short selling by any of the Forex broker.

Direct dealing from live currency quotes

The entire Forex brokers provide you with the live currency quotes every second, which you can see online on your computer screen. After Analyzing the market conditions and trend you can place order at the price seen to you.

Trade execution and confirmation takes place instantly

Time is the most important factor in our life. There is a well said that time is more important than money. If you are dealing online then live currency quotes will be in front of you and whatever the order you place (buy or sell) it should be executed instantly so that you don’t miss the opportunity to pick the profits. At FX market you can have the surety for the instant execution of your trade. Where as in stock markets you need to make a call to your broker for the confirmation which takes few minutes of yours and you miss the opportunity.

Profit and loss analysis is easy

Before placing order or entering into the Forex market you can pre decide your profit and loses and can place stop lose or take profit limits. While your positions are open, their current status of loss and profit percentage is always in front of you. And you can also analyze the profit and losses of your closed deals also.

Market information is accessible all the time

Getting information is easy but getting information at right time is very crucial. It makes a world of difference between a trader and a professional trader because they pay thousand of dollar per year to the firms which provide them with timely news and data relevant to their trades. And a professional trader is able to convert these data into millions of dollar. You might be surprising but it is all true. Now while trading Forex market you need not to worry about it, because if you are internet savvy then there are hundreds of firm which give access to market information before it effects the market. This market information includes real time currency quotes, international news which may affect the value of currencies, government-issues, economic data release of nations such as USA, Europe, Japan, China, Australia, GDP reports, experts views and analysis and chart patterns etc.

So my dear friends, I think these reasons are more than sufficient to start trading Forex. The risk vs. reward ratio is very high. If you are wasting your time and money searching and trying online businesses and getting nothing out of it, then stop yourself before it is too late and start learning Forex as soon as possible. This is the best online business to start with. The most important thing about Forex is that it is basically a science to analyze the trends and market conditions, and if you are like challenges and thrill then this playground is for you, start investing your valuable time to increase its value further. And just like phoenix, raise yourself from the ashes and bring yourself to the top of the world. The last word to say is “never stop learning and commit your mistakes before they became a tornado”.

Master the art of trading forex: My experience of trading Forex

noreply@blogger.com (VIRENDRA SINGH DHAKAD) — Wed, 25 May 2011 11:18:00 +0000

Master the art of trading forex: My experience of trading Forex

My experience of trading Forex

noreply@blogger.com (VIRENDRA SINGH DHAKAD) — Wed, 25 May 2011 11:10:00 +0000

This would be a great pleasure for me to share my experience of forex on Hubpages .I am trading forex for last two years. I spent 8 hours a day with including 4-5 hours of analyzing forex trends and patterns and what I learned is really priceless. These past two years gave a new direction to my life. Most of the people even don’t have any Idea about forex. You would be surprised to know that 90% of investors and traders are wasting their time and money as well. But what about the rest 10%, they are trading
stocks and foreign currencies for profit only. Then what is the difference between those two kind of traders, one who loses every time and the other who keeps on increasing their wealth from the same source. Its just the knowledge, experience, believe and their attitude. These are the factors which separate them from the crowd .I am also trading forex for part time income and in future trying to trade it full time. As slowly I am getting confidence of what I am doing.

	When I started two years back I lost 100$ within 4 days of trading with my first Forex account. The reason was the insufficient knowledge of Forex. But it gave me a different angle to think. I thought that if I can lost 100 $ within four days it means that there may be a day when I can earn 100 $ in four days too when odds are in my favour. And from that day I never turned back I started searching for the right things and played hit and trail with many strategies to learn to earn profits from the market. But all this I tried with Demo accounts.
MY FIRST STEP IN FOREX

I STARTED LEARNING THE THINGS DEEPLY

Starting Equity= 500$ (8 NOV 2010)
after 5 months=1000$ (mission accomplished 28 April 2011)
after 10 months =2000$ (target , 30 Sep 2011 )
after 15 months =4000$
after 20 months =8000$
after 25 months =16000$
after 30 months =32000$
after 35 months =64000$
after 40 months =128000$
after 45 months =256000$
after 50 months =512000$
after 55 months =1024000$
after 60 months =2048000$

You start learning the things. And starting from the beginning I will make you all the tools needed to be a professional trader at single platform. If you are really hungry for the riches then I will feed you to the best of my knowledge. Forex can reward you with a great wealth but don’t forget that forex is a very risky as well. No one, not even I can provide you guarantee for the profits from the forex but I can assure you If you believe yourself then you should start learning the things, only good knowledge of trends and market moves can provide you with the same. And I am here to make you learn technical as well as fundamental analysis of Forex.

And the result will be in front of you. This is what you will get after being a good learner. So don't remain a beginner. Starting becoming a pro.


ALWAYS SEE YOUR CAPITAL GROWING

Always feel free to share your views. You can also share your Forex strategy, if its not working properly. I would be glad to provide you with the right approach. Your comments are always welcome.

Master the art of trading forex: About this Blog

noreply@blogger.com (VIRENDRA SINGH DHAKAD) — Tue, 24 May 2011 10:47:00 +0000

Master the art of trading forex: About this Blog

About this Blog

noreply@blogger.com (VIRENDRA SINGH DHAKAD) — Sun, 15 May 2011 15:30:00 +0000

My dear friends, The aim of creating this blog is very simple and direct. It will help you in two ways, one is that whatever knowledge you will get here is written by a trader (me) with having 2 years of experience in forex trading. And secondly you will get only what you need to learn Forex so that you can trade it to earn your living. Yes it is very true that if you are eager to learn than you can trade forex to generate profits constantly
. You might have seen many sites and spam content about a very sensitive topic that is none other than Foreign Exchange (Forex). These spams and over estimated things are shown by differnt forex brokers in order to get more number of investors.

I think any one can be a professional forex trader. I also didn't believe the previous line when I lost my first hundred dollars. But I didn't quit trading and continued learning things which not only returned my 100 dollars but also made me to earn hundreds of dollars continuously month after month.

No one can guarantee you for the profits in Forex, not even me. This is only you who have to believe in yourself and learn the things in a proper way ,which I also did for two years. But yes I can provide you with the best material which made this possible for me. I hope for your best. Happy Forex trading. These are articles which are based on my personal research and trading and are now opened for you. So wishing you profitable trading in advance