FOREX TRADING IS A BUSINESS - STEP AWAY YOUR FEAR & GREEDY

“How To” Start Trading The Forex Market?

2012-08-04T20:45:00.003-07:00

What is FOREX or Foreign Exchange? PART I

The foreign exchange market (also known as Forex or FX market) is the largest financial market in the world, with over $ 1.5 trillion daily change of ownership.

It's bigger than all capital Treasury and U.S. markets combined!

Unlike other financial markets that operate in a centralized location (ie stock exchange), the Forex market in the world has no central location. This is a global electronic network of banks, financial institutions and individual traders, all involved in buying and selling currencies. Another important feature of the Forex market is that it operates 24 hours a day, according to the opening and closing of financial centers in countries around the world, starting each day in Sydney, then Tokyo, London and New York . At any time, anywhere there are buyers and sellers so that the currency market the most liquid market in the world.

Traditionally, access to the forex market was made available to only large banks and other financial institutions. With advances in technology over the years, however, the Forex market is now available for everyone, managers of banks, individual traders trading retail accounts. The time to get involved in this exciting global market has never been better than now. Open an account and become an active player in the biggest market in the world.

The forex market is very different than trading currencies on the futures market, and much easier than trading stocks or commodities.

Whether consciously or not, you already have a role in the foreign exchange market. Just because you have money in your pocket makes you an investor in the currency, especially in the U.S. dollar. Taking into U.S. Dollars, you have not chosen to hold the currencies of other countries. Your purchases of stocks, bonds or other investments, and money in your bank account, investments, contributing greatly to the integrity of the value of their denominated currency ¨ the U.S. Dollar. Because the value of dollar fluctuations and fluctuations in exchange rates can change your investments resulting in value, your overall financial situation. In this context, it is not surprising that many investors took advantage of fluctuating exchange rates, volatility of the exchange market as a means to increase their capital.

Example: Suppose you have $ 1000 and bought Euros when the exchange rate was € 1.50 per dollar. You would then have 1500 Euros. The value of the euro against the U.S. dollar is then raised, you would sell (exchange) your Euros for dollars and dollars more than the beginning.

Example:

Maybe you will find:

EUR / USD last trade 1.5000 means
One euro is worth $ 1.50.

The first currency (in this example, the EURO) is the base currency as the currency and the second (/ USD) or as a counter variable.

The FOREX plays a vital role in the global economy and there will always be a huge need for currency exchange. International trade increases the increases in technology and communication. As long as there is international trade, it will be a foreign exchange market. The foreign exchange market must exist so a country like Germany can sell products in the U.S. and be able to receive Euros in exchange for U.S. dollars.

Risk Warning:

The risks of forex trading

Forex margin trading is an extremely risky form of investment and is only suitable for individuals and institutions, which provides potential losses. An account with a broker, you can exchange foreign currencies on a highly leveraged basis (up to 400 times your account equity). Funds in an account that is trading is the leverage may be completely lost if the item (s) in the account of the experience even a swing instead of a per cent of its value. Given the possibility of losing the entire investment, speculation in the foreign exchange market, the market will be undertaken with risk capital funds that if lost, will have no material financial impact on the well -be investors.

Currency Trading Success - Knowledge Is NOT the Key to Success

2008-01-01T04:11:00.000-08:00

by Kelly Price

It always amazes me that people say that you need to learn lots of knowledge to enjoy currency trading success and its simply not true - you have to get the right knowledge and forex education and that should only take A week or so. Here we will look at the education you need.

Currency trading is essentially simple - anyone can learn to be a trader, but the fact is 95% of traders lose - so why is it that if everyone can learn currency trading don't most succeed?

Most traders fail to understand this equation:

Robust Method + Traded with discipline = Currency Trading Success

Let's look at this equation in more detail...

It's a fact that simple systems beat complicated ones, as they are more robust in the face of ever changing market conditions.

A complicated one simply has too many elements and they break.

Keep It Simple!

People make the mistake of thinking the harder they work, the more money they will make - but you don't get paid for hours of input. In currency trading, you get paid for being RIGHT with your currency trading signal and that's it.

Simple systems also have the benefit of being easier to understand and from understanding comes in and this means they are easier to apply with discipline.

If you don't have the confidence to apply your system with discipline, you have no currency trading system at all!

Its discipline which most traders lack and this comes from sometimes working to hard or just as bad following someone else's trading system without understanding it.

Today we like to think we can simply follow an expert or throw knowledge at a problem to solve it but in forex trading this is not the way to succeed.

An Illustration
A story that always influenced my trading was when I read about the turtle experiment which took place in 1983.

The essence of the experiment was to prove that anyone could learn to trade and legendary trader Richard Dennis gathered a group of traders together from all walks of life of all ages and educational levels and taught them to trade in just 14 days

The result?
These traders went on to make Richard Dennis $100 million and become some of the most famous traders of all time.

This experiment proved that anyone could learn and the system was essentially simple - the key to its success was the rigid money management discipline that the traders used.

Currency trading is essentially simple and anyone can do it but most traders choose not to learn the right forex education or follow others.

If you want to enjoy currency trading success, keep in mind that it comes from understanding and self belief which give you the all important traits of confidence and discipline.

Is it really that simple?
It's a simple concept and totally correct and if you have the desire to enjoy currency trading success, you will learn the right education and win.

Good luck and good trading

Currency Trading System - Tips On Getting One for Profit

2008-01-01T04:07:00.001-08:00

by Kelly Price
There are numerous currency trading systems for sale online but 95% of them are junk. There are some good ones out there and they can make you great profits, so follow the tips below and find the best currency systems.

1. Real Track Records
The first point to make is that you should if possible get a system that has a real track record that means real dollars, real trading and audited.
This may not ensure future profitability but shows the logic is probably soundly based and that the vendor has had the confidence to trade it.

2. Simulated Hypothetical Track Records
Most currency trading systems don't come with a real track record but with a simulated or hypothetical one and you need to take these for what they are:
Designed in hindsight knowing the closing prices - there is nothing wrong with back testing but you must ensure the testing was done correctly.

This is the subject of the next point:

3. Beware OF Curve Fitting
Of course it's easy to make profits if you know the forex price data already and many vendors simply make track records up and bend the system to fit the data.

When you see a track record with huge gains and low drawdown the likelihood is the vendor has bent the system rules.

It is therefore a good idea to see the system rules - do not try and trade any system you do not know the logic of.

A good currency trading will have simple rules and simple logic.
If they do and the test is realistic then they can work in real time - if their curve fitted they won't work.

Clues to curve fitted systems are:
Lots of rules, unique rules for various trading conditions and different rules, for different currencies.

Curve fitting is the major reason most forex trading systems lose.
Many traders bend the system to fit the data - without realizing but many vendors do it on purpose. This is done to show track records which are simply too good to be true to appeal to the greed of buyers - these people are not traders their normally marketing organizations.
Keep in mind if you see a track record which looks to good to be true it probably is.

THE KEY TO FOREX SUCCESS...
They key to making money with a trading system is to follow it with discipline.
This means you MUST understand the logic it is based on to have confidence to trade it through inevitable losing periods, so you need to understand and agree with the logic.
If you don't have the discipline to follow your currency trading system, you don't have a system.
You will never follow a mechanical trading system unless you have confidence so make learning it part of your forex education.
If you follow the above tips and have realistic expectations from your currency trading system, you check the logic and you're happy with the performance and draw down then you can trade it for real and enjoy currency trading success for very little effort.

Money Management - A Forex Trader 'Must Have'!

2008-01-01T04:03:00.000-08:00

by Martin Hayne
Money Management - what's that? If this is your response to the title of this article, then either STOP trading forex until you have learnt about it or, if you are new, do not start yet! The chances are, if you trade without any Money Management rules, you will lose your capital investment faster than the time it takes to read this article!
Forex is a leveraged product, and if you over-leverage yourself, the truth is you could be staring at a blown account in no time at all!

Therefore, it should go without saying that disciplined Money Management is an important key to not just succeeding, but surviving in Forex trading. Sadly, the temptation of riches can wreak havoc with even the most disciplined people out there! In fact, the determination to succeed and be wealthy may just be the one thing that causes a person to relax their own Money Management rules! 'Speed up the path to the intended destination' will be the justification in their mind!

I know it, because I personally fell foul of just that! So certain that the trade I was going to put on could go in only one direction, I calculated that if I increased my trade size for this particular trade, I could then go on and move up legitimately to a larger trade size for all future trades (by legitimately, I mean according to my Money Management rules). Brilliant! I'm sure this is the type of risk these successful guys take every now and again. After all, you have to take bigger risks sometimes if you want to make it! Well, I'm pretty sure I don't have to tell you what happened next!!

So, here I was, now in a position where I now had to decrease the size of my future trades, to account for the huge hit I had just taken on that one trade. And not only that, to make matters worse, I exited the trade early because I did not want to take the 'full hit' of it reaching my pre-determined Stop Loss!

Yep! You've probably got the next bit too! The trade didn't make it to my intended Stop Loss, and actually would have been a successful trade if I had followed the rules of my strategy! I had just gone down the ladder several rungs in a 'calculated' attempt to move myself up a few rungs. It would now take several weeks of SUCCESSFUL trading to get back to the trade size I had been taking that day!

So, the first thing I did that day to cause such a hole in my account was throw away my Money Management rules. However, that wasn't all that followed! Through just that one act, I lost all sense of discipline, and also didn't follow my trade strategy. By exiting early, I hadn't given the trade a chance to succeed according to my entry and exit rules for that trade. Now, had I adhered to my money management rules, and applied my normal trade size, I would not have been concerned by the trade potentially hitting my Stop Loss, and therefore would have remained in the trade, and been in a position to record a successful outcome, and not a rather large losing one!

I tell this story not for entertainment value, but to share a lesson on how disciplined you have to be at all times in Forex Trading. My discipline here had succumbed to the emotions of greed and fear, and I paid dearly for it. What I'm telling you here is, if you allow just one area of your trading to 'relax' against your predetermined Trading Rules, no matter how valid you think your reasons are, there is a very high probability you will pay the price. You will likely need to break other rules too.

I would ask you to think about this....Your Trading Plan will have been created while in an environment of calm and rational thinking, based on information, knowledge and facts. When you are trading Forex, the environment is neither calm nor rational, and the only thing that can keep you trading calmly and rationally, is to be disciplined enough to follow the rules of your Trading Plan - and in that, Money Management will be clearly defined.

Your adherence to your Money Management rules, and the power of compounding will help move the odds of reaching your trading goals in your favour!

Remember that!..

The Great Things with Forex Mini Trading

2007-12-30T03:46:00.000-08:00

by George Peters

For most people, participating in any forex trading seem to entail or involve a huge startup capital, thus discouraging them from accepting any proposal to trade in forex. These people would remain trading shares and stocks, which they perceive are more viable for their financial capability. But, there is a very good option for people who want to be in forex trading but have little capital -- forex mini trading.

The great thing about this is that one can earn a lot of profit as well as set time for pleasure when participating in forex mini trading. This uses a different leverage calculation than regular forex trading, though both are more or less the same in features.
With regular forex trading, 100,000 currency units is the size of the currency lots. Forex mini trading, on the other hand, will only entail 10,000 currency units, or just a tenth of the currency lot of regular forex trading. This results in lesser risks if one stands to lose.
This is how forex mini trading can work for you:

1. It has a low minimum starting capital. It only takes $300 to start a forex mini account. This is, in fact, very affordable for people who want to get into forex trading. With this investment, one can have the potential of earning profits in a very short time.

2. You can get a high leverage of up to 200:1 in a forex mini account. A small margin deposit requirement of $50 per lot traded is given. A high leverage is a great way to achieve a huge profit in a short time, and this is evident in forex mini trading.

3. In forex trading, one pip is equal to one dollar. There is only a small amount of risk when one trades in pips. For example, if one has a 30-pip floating loss, this amounts to only $30 in losses, which is smaller than a $300 loss in a 100K account. This makes the trader more disciplined in his dealings.

4. You can start with smaller trade sizes. The contract size in forex mini trading is 10,000 units, which is only a tenth of the standard account. This allows less risk in trading. One can increase trading as he or she gains valuable experience. This would mean more profits in the future since one has acquired discipline in trading from the very beginning.

Though you may only be trading with a mini account, all the benefits associated will full-size forex trading account will be enjoyed by the trader. This includes the modern trading software, resources, charts and so much more. As mentioned above, forex mini trading is ideal for beginners to forex trading since they can develop discipline and rationality in trading as well as lessen their losses.

Make Money and Succeed in Forex Trading

2007-12-30T03:45:00.000-08:00

by Joon Trader

Make money and Succeed in Forex Trading
To a newbie learning Online Forex Trading, it looks very simple in the beginning. Take currency pair EURUSD for instance, if you bullish on Euro, simply place a Buy order. Bearish on EUR, just short it. So easy, you may ask? The truth about Forex Trading is that it is a professional activity that not many traders will succeed. This being the first article on my Blog, I will just go through a few very straight forward pointers on how to consistently generate Forex pips. In the world of Forex currency trading, many newbie traders believe that Forex trading software or system that contains rocket science is more likely able to make money. It may be true, but how many of us will be able to find such a system or methodology? Why not just spend time and money to learn systems or trading methods that are simple but works? In the Forex currency trading, the fact is simple systems just work best. Simple systems are more robust and easier to trade as you understand the logic and can therefore follow it with confidence when you are in a losing streak. I personally feel that it is much simpler to trade with the trends rather than the ranging market. For many successful traders, once they are happy with a system or methodology, they stick with it. Remember, you only make money trading Forex, and not having 100 systems or trading methodologies but trading none of them. In Forex trading, most traders succeeded primarily due to good money management. So long as your system or trading methodologies has a positive profit factor coupled with proper money management, you will succeed in the long run.

Secret To Financial Freedom!

2007-12-26T07:15:00.000-08:00

by Joon Trader
Financial freedom, secret of success from investment, real estate, stock market wealth, profit, investment, internet marketing, millionaire, income, security, opportunities, home-based business, money, cash, fortune!!
It has always been mankind dream and desire to seek Freedom - Freedom of thoughts, Freedom of speech, Freedom of belief, and Freedom of expression! Why then not Financial Freedom!
Wikipedia definition - "Financial freedom describes a well-planned lifestyle where one no longer is required to work for income to cover their expenses".

Rich Dad, Poor Dad series and other books on personal finance really got me interested and wondered why school and college didn't teach us how to be financially intelligence. Ultimately, whether all these books have been fictionalized or are real story are debatable. The important point here is that it advocates financial independence through investing, real estate, owning businesses, and other means of money generating and protection tactics.

Most of us are hunger and aspire to achieve financial freedom. When one's work in an organization without decision making capability. Management will dictate your financial well being. You will bear the consequence of management failure, within or beyond their control. It could be external macro factors such as - market environment, competition, government policies, act of god...... intentionally or unintentionally. You will bear the fruits of management mistake - retrenchment, down sizing, pay cut, and stagnant pay.

What happen next.....? You start to look for another job. Maybe this time round, your lady luck is shining, you manage to secure...wrong words to use, get a job working in a big blue chip company, maybe better, work as a civil servant with an iron rice bowl. In your minds, you must be saying - I have finally made it in life..... !! Do some souls searching - do you really make it? Your income from salary may or may not to be able to support your daily living expense. Or may be you are one of the million out there still struggling to pay mortgage loan, car loan, credit card, utility and telephone bill...bills that without ending.......!

Maybe you are very fortunate, able to find a job that the pay check exceeds your current living expense. Maybe you are one of the fortunate few that earn good income working in the top echelon of an organization. But ask yourself this question - Are you happy? Are you out of the everyday rat race? Are you out of the merciless office politics? Are you out of getting stuck in the daily morning traffic jams that never seem to subside?

It could be true that you like your job. Excellent....! But are you growing your money? Are you using the power of compounding to accumulate wealth so that when there is a day that you finally decided to quit your job, you have a mountain of wealth supporting you? It is only when you have reached that financial stage that you can proudly say, "I do what I love to do because I want to!!"

Financial freedom does not simply mean free of debt, debt is another expenses. As long as one passive investment income is able to cover all expenses, one is consider as financial free. This large enough "nest egg" passive investment should also be easily be liquidated if there a need. In simplified term, financial freedom is where one does not need to work for money, but let money works for you!!

"How do you achieve it?" It could be achieved by finding, learning and putting time, effort and money into building something (passive investment) that creates income profitably and consistently, long after you have 'completed the building'. There are many ways to build such money-making machine. It could be investment or trading of stock, forex, future, commodity or whatsoever financial instrument that can generate money. Internet marketing, MLM, business ventures and real estate ownership for rental/capital income are other forms of money-making vehicle.

The biggest obstacle to financial freedom is not everyone has the necessary skills, experience, know-how and money to build it. The key to wealth is to find something that suits one's ability and build it. The "money generating machine" may be more than one, it could be multiple machines. How big or how many machines you intend to build will greatly depend on one's desire, capital and risk tolerance level. Everyone is different. The important point is you must be the one in control of those decisions that affect your life!

Your chosen path to financial freedom will also greatly depend on your interest and the amount of money you have. It is true that you need money to generate money, but it is also true that you can create wealth with little money. Many wealthy men and women have proven that if there is a will, there is always a way!!

If you seriously want to achieve financial greatness, you must first eliminate all subconscious blocks you have towards money making. You must finally free your mind to create the wealth that you deserve!!

Forex Education - 6 Vital Tips for Novice Traders

2007-12-26T07:09:00.000-08:00

by Kelly Price
If you want to make money in currencies you need the right forex education and it's a fact any trader can learn forex trading and be successful but most fail to make money - this article will give you 6 tips so you can enjoy currency trading success.
Here are your forex tips in no order of importance but there all essential to your trading success.

1. Success Rests On Your Shoulders
No one else can make you rich you have to understand what you are doing to get the confidence to follow your path with discipline. If you don't understand what you are doing then your discipline will go as soon as you have some losses.
If you cannot follow a forex trading strategy with discipline you have no system.

2. Forex trading is NOT easy
Anyone can learn to trade but the really hard part is the mindset to succeed.
Do not believe anyone who tells you that it is and sells systems saying that you will make money every month or they can predict prices they can't.
There is a huge market for these systems and there mostly junk and come with a worthless simulated track record. As we said success comes from understanding what you are doing and self education is the key that will make you successful.
Forex trading is not easy and wouldn't expect it to be with the rewards to be had but the good news is - it's not that hard either.

3. Work Smart Not Hard
Most traders think the harder they work the more money they will make.
In many areas of life this is true but not in forex markets! You get paid for being right with your trading signal and that's it.
Work smart and learn the right knowledge and avoid all the common myths that most traders fall for which include:
- Day trading systems make money.
- You need to predict forex prices to win.
- The more complicated your trading strategy the more likely you are to win.
- Trading news stories is a great way to make money.
None of the above are true - there all myths we have covered even more in our other articles so look them up.

4. Use Forex Technical Analysis
It's simply the most time efficient and best way to trade.
You can learn it in around two weeks and then spend just 30 minutes a day executing your trading signals - and that's it. All you need to do is learn to act on the reality of price change and not predict.

5. Keep it Simple!
Simple currency trading systems work better than complicated ones, as they tend to be more robust.
Complicated systems fail in real time trading as they have too many elements to break.

6. Know Your Trading Edge
Your trading edge is something that will give you an advantage that will allow you to make profits when 95% of traders lose.
You must understand it and be confident that it will lead you to forex trading success.
If you don't know what it is you don't have one and its time to continue with your forex education until you do.
As you can see form the above your forex education is all about working smart not hard and getting the right knowledge and mindset to succeed. If you can learn currency trading the right way, a life changing income could be yours.

Forex Trading System - Tips for Building Your Own For Big Gains

2007-12-26T07:06:00.000-08:00

by Kelly Price

Many forex traders think they can't build a forex trading system but they can you can easily do it and within a week or two be ready to trade for big profits. Here we will look at a system that will work for anyone and how to build it.
There are many ways to trade forex but this is a simple system anyone can understand and use - it's timeless and it WORKS.

1. Support and Resistance
All successful systems are based on the concept of support and resistance and these are levels that if broken are considered valid by the market participants. Generally you are looking for several tests preferably in two or more time periods that are widely spaced i.e. weeks or months between them.

2. Breakouts
One of the biggest myths of currency trading is you should buy "low or sell high" to make money - this is not the way to catch the big moves.
The majority of big moves start from new market highs or lows and you need to buy or sell the breakout. When these moves occur the supply and demand equation has gone in favour of the break and you need to go with it.
Most traders can't do this!
They want to buy or sell at a better price and wait for a pullback which never occurs and prices sail over the horizon and the trader never gets on board and misses a great move

3. Trade the Reality
Another myth is you have to predict where prices are going - well that's just hoping or guessing and you don't get rewarded for that in any venture let alone forex trading.
If you buy a breakout there is no hoping or guessing you are buying the reality of price change and have the odds on your side - and that's the only way to win.

4. Confirm Confirm Confirm
When a break occurs you need to decide whether it's a false break or a valid one and here you need to understand price momentum which should support the break.
If you don't know about momentum oscillators you need top learn (look up our other articles) and great ones for confirming a move are:
RSI The stochastic and the ADX Line

5. Stops
The stop on a breakout is obvious behind the breakout point and you then need to hold it back (don't trail too quickly) so that you are behind normal volatility and don't get stopped out to soon - when the trend is underway you can start to trail your stop up - don't move to quickly.

6. Patience
The big breakouts don't come that often only a few times in each currency per annum but you don't get rewarded for how often you trade your forex trading system - you get rewarded for being right.
If you trade the big breakouts you can be in on all the best trends and make huge profits and you will know most traders don't like buying or selling them - if you do then you can make a lot of money

Finally!
You may think that all sounds very simple and it is - but it works.
Do not confuse complicated trading strategies with success.
It's a fact that all the best forex trading systems are simple as they are very robust in the face of ever changing brutal market conditions.
A simple method with discipline can lead you to success with your forex trading system and the above system is simple to learn, easy to understand and can be applied in 30 minutes or less a day.

Become a Professional Currency Trader from Home Live the Dream!

2007-12-26T07:03:00.000-08:00

by Monica Hendrix

Many people want to become professional currency traders and work from home and pile up big profits but very few people achieve it for one simple reason - They do not understand two key points that all professional traders understand.
Before we go through these key points lets start with a rather inspiring story.
Back in 1983 legendary trader Richard Dennis decided to teach a group of people to trade who had never traded before. They were of all ages, both sexes and of varying levels of intelligence.
He then spent 14 days teaching them to trade and then gave them accounts.
The result?
They made over $100 million dollars and went on to become trading legends.
So Dennis proved the point - anyone can be taught to be a trader.
If anyone can learn why do 95% of traders lose?
There are two main reasons for this

1. Taking Responsibility
If you think that you can take advice from someone else and be successful your wrong. Only you can make yourself successful.
Today, to many people want to buck responsibility not do their homework and pass the buck when they lose - well that wont wash in forex trading your on your own.
If you understand this and have a desire to learn and want success, you will then be able to learn the correct way. Forex trading is not hard to learn - but you of course need to know the basics of what you are doing and have confidence in your forex trading strategy.
This is the real key to success - Understanding.
This leads to confidence which allows you to trade your method through inevitable periods of losses to eventual currency trading success - with discipline.

2. Discipline
When Dennis taught his students, he didn't just cover a method he spent considerable time on showing them the importance of executing it with discipline.
He knew what all successful traders know:
If you can't execute a method with discipline you really have no method at all.
Learning a method is not hard, becoming disciplined is - because you have to deal with your emotions and confront an all powerful being the market - where only you can be wrong and it's always right.
If you think discipline is easy, try trading and find out its not!
You have to have rock solid confidence in what you are doing and keep your emotions in check.
Understanding = Confidence = Discipline
Many traders look at forex trading and think it's easy but it requires unique skills such as the ability to construct and operate your rule system, ignore news stores, ignore the majority opinion and deal with the emotions of greed and fear.
The good news is:
If you take the time to understand and get confidence in your trading system the chances are you will be a disciplined trader and enjoy currency trading success.
They Did So Could You?
Dennis's group of students did it - and they should act as an inspiration to you as they showed it is possible and the rewards of trading can be life changing. Sure you might not become as rich as them, but there is NOTHING to stop you become a successful trader apart from yourself.

Currency Trading Books 3 You Must Read

2007-12-26T06:59:00.000-08:00

by Kelly Price

There are many currency books but here I have selected three that every trader should have in their library of books - if you are seasoned pro or novice trader these books are great forex education.

1. Market Wizards (Jack Schwager)
Schwager interviews 17 trading legends including Richard Dennis, Paul Tudor Jones, Ed Seykota, Marty Schwartz, Tom Baldwin and others. The traders interviewed are not just traders their super traders. There methods may all be different but there is something to learn from all of them,
One of the top-selling trading books of all-time and with good reason - if you can't learn from these guys then there really is no hope

2. What I Learned Losing a Million Dollars - (Jim Paul Brendan Moynihan)
This books focus is on losing and may seem an odd choice as essential reading but it is for this reason as it correctly states
There are many different ways to make money but only a few ways to lose it.
Part biography and part a lesson in money management - if you only thought money management was placing a stop you need this book.
One of the most unique trading books you will ever read.
It focuses on the fact that trading and investing are personal journeys; about finding out who you are, and then how to manage what you find and use this understanding to trade successfully.
The reason why most traders never make money is they don't understand that success comes from within and that trading is all about self knowledge not the method they are using.

3. The Way of the Turtle - (Curtis Faith)
While visiting a turtle farm, legendary trader Richard Dennis had a bet with his big pal and trading partner - Bill Eckhardt that traders were not born - they could be taught.
To settle the bet, they recruited a group of individuals from all walks of life, gave them accounts to trade, and trained them for 14 days and nicknamed them the Turtles.
The Turtles proved Dennis right and earned more than $100 million in less than four years. Here the most successful turtle Curtis Faith goes through the experiment in great depth offering his unique perspective on the experiment.
He explains why the Turtle Way works in today's markets and how to apply it. He also shares his wisdom on taking risks, choosing your own path, and learning from your trading mistakes.
So there you have 3 currency trading books that are essential forex education.
Keep in mind:
Currency trading is relatively easy to learn in terms of method the real problem is getting the right mindset and all the above books will give you a unique insight into getting the right mindset to succeed in currency trading.
Treat yourself and get these 3 currency trading books and learn from true market pro's.

How to Minimize Your Losses And Sky-Rocket Your Profits Trading Forex

2007-12-26T06:57:00.000-08:00

by Okafor Nwabueze
When you open your trading station software (provided to you for free by your broker, you will find there are two main ways to enter a market or, said in another way, there are two ways to place an initial order to buy or sell any currency pair.
(After we discuss the market and entry order, we'll discuss how to minimize your losses and sky-rocket your profits
Market Order - an order to buy or sell a currency pair at the market price the instant that the order is received and processed (within seconds of hitting the "OK" button on your screen). When a market order is placed, you are simply saying "I'll but or sell the currency pair at whatever price it is at when my order gets processed." Example: if you are looking to place an order for JPY (YEN) when the dealing price is 104.00/05, a market order will request to buy JPY at 104.00 or will request to sell JPY at 104.05 (of course, whether you buy or sell it is up to you and is chosen on the software drop down box. And, again, once you've made your selection, this order is placed with a single click and is executed almost instantly).
Entry Order - an order to buy or sell a currency pair when it reaches a certain price target. This can be any price in theory. You could set an entry order for the low price of a time period, or the high price of a time period. When you place an entry order to buy, for example, you are simply saying "I want to buy this currency pair at a certain price, if it never reaches that price, I don't want to purchase the pair."
Example: the current "real-time" quote for the EUR/USD is 1.3317. your analysis shows that IF the pair hits 1.3329 (a key resistance point) that there's a high-probability the pair will turnaround (retrace down) so you decide to place an entry order to sell the EUR/USD at 1.3327.
The entry order above shows you how you are fully-empowered to pick a price and place an order to sell at that price. If the market hits 1.3327...great, you now have an OPEN position and, as long as the EUR/USD pair keeps dropping and you close out (exit) your trade at a price lower than 1.3327, you make money.
And, if you don't get in the trade, via your entry order, don't worry. New trades are constantly developing and if your order entry doesn't get filled you can't lose any money. Learn not to be upset when an entry order isn't filled. You are saved most of the time anyway because the currency pair did the opposite of what you though and you would have lost money, most likely, if it did get filled. Remember, when orders are not filled, it means you never risked any money!
If you want to minimize your losses and sky-rocket your profits, I will recommend you enter the market via entry orders. It has been proven over and over again that you tend to accumulate more profits than losses when you entry the market via entry orders.

Foreign Exchange Trading - Ways of Managing Risk

2007-12-26T06:54:00.000-08:00

by Elaine Berry
There's no doubt - there is risk in any deal involving foreign exchange trading. Currencies are wildly volatile! They are affected by all sorts of factors and some of these factors are completely unpredictable. Big climatic or weather events like floods, earthquakes or tsunamis can have a massive impact on currency prices. Election results bringing changes in government; company collapses or takeovers; an unexpectedly good or bad set of government figures - all these can have a major effect. Remember the impact of 9/11 on currency prices throughout the world - nobody could have predicted that!
Because of this, there is one Golden Rule in Forex trading, as with all types of trading: NEVER trade with money you can't afford to lose.
But as you become more experienced in foreign exchange trading, you learn ways of reducing risk and avoiding large or frequent losses. Of course you will have losing trades. But you must learn ways of managing risk if you are going to be a successful Forex trader. · Make sure you understand the principles of technical and fundamental analysis. When the signals from both of these point in the same direction, you have the best chance of a successful trade. · Don't risk more than 2% of your margin account on any single trade. For example, if you have $400 in your margin account, 2% is $8, equal to an 8-pip move. · ALWAYS use stop-loss and take-profit orders. This is an absolutely fundamental rule. (A stop-loss order is placed below the current value of a currency pair if you are in a "long" trade - i.e. buying in expectation of a rise in value. You set the stop-loss order in case its value falls instead of rising. Conversely, the take-profit order is placed above the current market value of the pair. If the currency reaches that value, your order becomes an order to sell and this protects your profit.) · Be disciplined! And keep cool - don't be ruled by emotion, and DON'T get greedy. Never be tempted to stay with a long position that goes below your stop-loss order. You may have a "gut feeling" that it will come back up again, but gut feelings are something you just can't afford - at least, not until you are a VERY experienced trader.
Foreign exchange trading often looks difficult and technical. But the fact is, lots of people who barely got past third grade math manage to become very successful in foreign exchange trading. How? By learning simple rules like these and sticking to them. Forex trading can be so incredibly exciting, rewarding and profitable, it would be a pity to have a negative experience. Follow these rules and you won't need to.

Mini Forex Trading - What You Should Know About Mini Forex Trading

2007-12-26T06:49:00.000-08:00

by Abhishek Agarwal
Forex is one of the greatest ways to make money over the net. And thanks to the versatility and easy access through broadband, and to the fact there are over sixty currencies being traded every day, it is one of the most profitable money schemes.

In olden days the foreign exchange trade was restricted to multinational corporations, and banks. But thanks to the net, it is now possible for the everyday person to enter the market on an individual basis.

This market is the biggest in the world and it has a daily turn over of over 1.9 trillion US dollars. Moreover, this market is open round the clock seven days a week, so you can trade at any time you please to.

There are 2 kinds of currency accounts: the forex account (regular) and the mini account. Right now we will discuss the mini version.

Mini forex trading
Smaller investors can get great leads in the market by starting off their new venture with mini Forex.These markets are open to investors with minimum experience.
Mini forex accounts allow the operator to deposit only $100 and control a currency position worth $ 10000. With the regular exchanges of news items the positions could become $ 100000. These accounts are thus a tenth of the scale of a normal account, thereby being inviting to new traders. They offer a beginner at trading a great chance to get into the business with a minimum capital investment.

Traders who do not have a lot of money and want to do business with just less than $ 10000 are advised to preferably go with mini forex accounts. Not only does this strategy allows them more flexibility in the implementation of various strategies, but also gives them a lengthier stay in the market without taking the risk of over spending.

You may think that's impossible to trade 10000 value of the currency with only a small deposit, but this is a reality in mini forex trade. That's thanks to what they call a leverage.
Leveager allows you to buy and sell more of a particular product than what your account and you can draw, letting you have great performance. Too much leverage is risky, so do be careful you don't over spend on it.

The advantages of mini foreign currency account are not really different from ordinary forex account. You always have the ability to have access to small spreads, and a free trade platform.
But, as mentioned earlier, the greatest advantage of the opening of account forex mini is that you don't have to spend as much in order to see the gains. You might see less money, but the potential gains are still attractive.

Mini Forex Trading - 11 Advantages Of Mini Forex Trading

2007-12-26T06:47:00.000-08:00

by Abhishek Agarwal
The forex industry has seen the entry of many traders with limited capital.Traders who are comparatively new to the online forex trading business are also able to sustain the risks involved.
The traders were exposed to the world of currency trading with not that high a risk with the development of Mini forex trading accounts that requires a minimum account size of $300. Also, the mini forex trading account holders can trade 1/10 currency lots instead of the entire currency lots.With smaller lot sizes, the traders are exposed to real life trading with comparitively lesser market and risk exposure because,the value of one mini pip is the same as one dollar.
The traders are exposed to the trading and are made aware of the reliability and the quality maintained in the trade practices and also the stability of the forex trading.Individuals who are wanting to develop their own strategy and build on their confidence in this particular industry will be benefited by mini forex account trading.
The advantage of mini forex trading is that, the traders in this segment have the liberty to enjoy the benefits that are applicable to the full size holders as well.

1. Mini forex trading uses the exact same state of art resources and tools as that of standard account.

2. The traders will continue to be exposed to the world's biggest liquid market.

3. Traders receive a complete free streaming, live and double sided quotes

4. It provides immediate fill reports

5. The trades are not commission based and the traders are able to check their accounts live.

6. Another important advantage in case of mini forex trading is that the traders are able to create a strategy on forex trades and they also improve their discipline and at the same time, not giving more importance to their profits and losses.

7. A trader can fixate on the fluctuations of his equity, if he can trade a full size currency of 100,000 units. This can be done by traders who have small balances.By doing so, the decision making capacity of the trader can get affected, as it is highly based on the emotions of the traders.

8. The traders usually do not close out those trades that do not result in profits, as they continue hoping that the market would infact favour them.It is the instinct of the traders to make immediate profits with the market movement, rather than maximising gains by allowing free flow of profits.

9. The training methods developed in case of mini forex trading, gaining the confidence of a particular trader who is successful, helps one to sustain the distractions, pressure and the anxiety in case of occurrence of any P&L swing.

10. It is not always necessary to use all currency units when starting a mini forex trading account. The lots can be utilized as and when required when a trader builds his confidence level, in order to increase his profits. The lot of 10,000 is available for a trader to customise the size per deal that might suit his needs and requirements.

11. Another good point in case of mini forex trading is that, a trader would not be too stressed out in case of a loss. It depends on the trader's ability to stick to his strategy and to maintain discipline in order to perform well in the future. For example, a loss of 50-pip on a position of 100,000 EUR/USD is the same as $500 loss, however, it would only be $50 in case of a 10,000 EUR/USD with respect to a mini account.
One has to have the guts and the will power to face losses in a forex trading industry;however,if one can perform making use of the platform that is similar to the standard account, why not go for mini forex which gives an individual it's unlimited benefits.

Forex Trading - 4 Important Guidelines For A Forex Trading Beginner!

2007-12-26T06:42:00.000-08:00

by Abhishek Agarwal
Luck is defined as our tendency to be happy or unhappy about persistent questions specified in some combination of circumstances. People often bank on good luck if they are not prepared on aspects of life where they should have been
Some say that the day trade on forex is a game only of chance where only luck can help you win. At the same time, others say that being prepared will help to avoid becoming too dependent on luck.

1. Being educated - Education is something that can not be withdrawn to you. This is a key personal attribute and important in your life. Therefore, if you wish to see success in the day trade forex industry, do spend time studying the market changes and its components.
There many ways to educate oneself regarding currencies day. You can also register for a seminar or a workshop. You could also see video tutorials, web sites on the topic, and talk to experienced stock brokers.

2. Learn to use the right software - You need to stay informed of the importance of tools that enable forex trading. An such tool is software. Two kinds of software are used in this industry namely (1), internet-based software, and (2) client based software.
When you select the right tool it always makes the job easier.You can then focus on strategies that may work for you.

3. Have a plan - Planning ahead makes things better if not perfect. When you have a plan you know which direction you are going, and not just with the wind.
Trading sometimes is a gamble, but with each bet lurks a strategy for you to win. Therefore, you need to plan. You must set guidelines and plan ahead for for:
a.Make your own business objectives modeled forex main objectives.
b.Settle on a sum of money which you will need as capital.
c.Establish your expected benefit from the trend - profits on the market.
d. Decide on measures to be taken when things aren't going well
e.Have different strategies for different situations, as the market can change face quickly.

4. Being controlled
Use your plan to incorporate discipline within you. Some people lose attention when they begin to make money. Others scrap their plans if they start to lose. Never let the emotion be a master of the mind, and stick to your guns even when things are not going too well. If the plan is right it will finally work.
When you fail, do reassess your plan but do not lose hope.
Many will tell you that the markets are all about luck, but it is not so all the time. A good plan can work wonders for your trade.

Online Forex - The Unlimited Possibilities Of Online Forex

2007-12-26T06:40:00.000-08:00

by Abhishek Agarwal
There are more than fifty currencies in use in our world, with four being the most commonly traded. People use them, in the form of cash bills, coins, checks, credit cards, bank cards, and other similar services, for different operations as they go about their daily lives.
With the introduction of online trading forex, you can now buy and sell money for free online through exchange brokers. Anyone inclusing part timers can benefit from foreign exchange market, which is open round the clock every day of the week.
Money has evolved through many different stages in the past. From the first silver traded as to the first uses of paper invoices and receipts, the journey of exchange modes has been a long one.
Since the arrival of an era of globalization, the major advances in technology helped bridge the gaps between one country and another. Globalization has changes almost every aspect of our lives..
In years gone by, when you had to exchange money you needed to be face to face with the other trader. But thanks to technology today, even the presence of currency notes is no longer necessary to make a trade. And that is exactly how the foreign exchange markets of today waor using the internet.
As mentioned earlier, the foreign exchange market is open round the clock and seven days a week, so it is also known as the twenty four hour Interbank market. It was initiated in seventies and, with its continued growth, it is regarded as a perfect market and the largest financial market in the world.
Foreign exchange online trading is a game of numbers, with players comprising banks, financers, speculators and investors), And like any other game, the person who is over greedy and focuses solely on possible outcomes is likely to suffer the greatest loss.

Play the Game well
You could choose from a vast number of currency pairs to trade with. To get a solid start, play with those that are already doing good at the start, just to be sure.
During the observing stages, don't forget to keep an eye on the value of the currency opposite to what you are trading with. Never forget that when one of the currencies is rising,it also means that the other is, in comparison falling. Be vigilant to price changes. The graphs and charts can provide good information for these.
However, since the Forex market is open round the clock, pinpoint the best time to buy or to sell a currency. Buy at a low price and sell on top. No doubt you will lose out at times, but thats a part of any game isn't it?
The key to success is to practice well, you need to be able to tell when you are on the right track and when you need to walk away. Different sources of the media like economic news papers, television programs and web sites are what can help you fine tune this skill.
The foreign exchange markets do not guarantee your riches. It is something that needs determination and planning, as do all trades.

Forex The Future Investment

2007-12-26T06:32:00.001-08:00

by: Mike Pachuta
There are many many advantages over the various other ways of investing. First of all it is a 24 hr market, except for weekends of course. You have the US market then the european and then the Asian. One of the great times to trade is during the over lapping periods. The USA and european overlap between 5am & 9am eastern and the Euro & Asian between 11pm & 1am eastern. Usually the busiest time and best to trade.
The is also the risk factor for the accounts. With futures and options you can get margin calls that can wipe you out. If you get caught in a bad trade not only do you lose the money in the account but you may have to come up with alot more from your pocket. It can be very risking. But not in Forex. Worst case senerio you could lose whats in you account. But you would have to do something really stupid. Like making a big trade on a Fundamental day and leave it alone. If market takes a bad move and you weren't there. OOOPS. But That wouldn't happen with a smarth trader.
Then there are the demo accounts which is an account where you can trade using all the right things, platform,charts,and information. But you are using play money, or what we call paper trading too.
Plus with Forex you have a mini account. Instead of needing thousands of dollars to get into it. You can open an account with as little as $300.00. Now of course you will be trading at 1 tenth of a trade. IN other words you controling 10,000 instead of 100,000.00 These are call lots. Which also means you will only risk 1 tenth too!
So if you would love to learn to do investing and not have near the risk you really need to take a closer look at Forex trading.

Forex Avenue: The Road to Riches

2007-12-26T06:29:00.000-08:00

by: Scott Bianchi
In my continuing quest to provide visitors of my site with a large amount of options to chose from when considering working from home I have done some research on Forex trading. I first learned of Forex trading while pursuing my MBA program. For those of you who have never heard of this, Forex trading is the exchange of foreign currency.
I know I would have never even know this was an option for making money had I not found out in class. Most of the really big corporations have departments of people that do this for a living because it can be very lucrative if done correctly. The best news I have learned about this process of exchanging currencies is that many of the websites that you can sign up with to do this offer free trial accounts to help you learn before you invest your money into trying it. You won’t make any money in the trial accounts if you do well, it is just pretend money essentially but with the real market conditions. If you do well in the trial account you will know if this is something you want to try on your own.
Benefits to Forex trading are that is can be done 24/7 whereas the stock market is a business hours only exchange. It is 24/7 because it is done with countries around the world so clearly there are countries that are awake and working while we sleep. Another benefit is you are in control of the trading on your account. You do not need to hire a licensed broker to make your trades and charge you fees. Along those same lines, anyone who does any investing most likely knows that some funds require you to own then for a certain period of time or pay early withdrawal fees. You do not need to concern yourself with this either. One last benefit that I would like to point out is the fact that Forex is not really subject to the same kinds of swings in the market that stocks are subject to. Of course if you always buy and sell the same currencies then there will be market swings. But, because there are hundreds of currencies out there, there is always going to be something for you to make money on because while one currency is up in value another one is down and vice versa.
There are many resources available to someone interested in becoming involved in this type of training. The Federal Reserve Bank’s website is just one example of the information available, http://www.ny.frb.org/markets/foreignex.html. Here is another article that you will find helpful in starting out in this field. http://www.forex.com/pdf/pro2.pdf . I have also included one of the sites that does offer a free lesson. http://www.shareasale.com/r.cfm?b=44910&u=155496&m=8912 .
While there are many benefits to this type of training, as I mentioned above, there are certainly risks involved as well. There are risks with exchange rates, central banks in foreign countries, and risks involving interest rates and credit. Forex is quickly becoming a popular way to help diversify your investment portfolio. If you are good with understanding investing concepts and enjoy doing it this may be the home business opportunity for you. Just do your research and try to find one of the sites offering the free trial account to practice with and you are well on your way down the Road to Riches.

Forex Trading: Calculating Profit And Loss In Foreign Currency Trading

2007-12-26T06:27:00.000-08:00

by: Gregory DeVictor
The foreign exchange market, or Forex market, is an around-the-clock cash market where the currencies of nations are bought and sold. Forex trading is always done in currency pairs. For example, you buy Euros, paying with U.S. Dollars, or you sell Canadian Dollars for Japanese Yen. The value of your Forex investment increases or decreases because of changes in the currency exchange rate or Forex rate. These changes can occur at any time, and often result from economic and political events. Using a hypothetical Forex investment, this article shows you how to calculate profit and loss in Forex trading.To understand how the exchange rate can affect the value of your Forex investment, you need to learn how to read a Forex quote. Forex quotes are always expressed in pairs. In the following example, your pair of currencies are the U.S. Dollar (USD) and the Canadian Dollar (CAD). The Forex quote, USD/CAD = 170.50, means that one U.S. Dollar is equal to 170.50 Canadian Dollars. The currency to the left of the "/" (USD in this example) is referred to as base currency and its value is always 1. The currency to the right of the "/" (CAD in this example) is referred to as the counter currency. In this example, one USD can buy 170.50 CAD, because it is the stronger of the two currencies. The U.S. Dollar is regarded as the central currency of the Forex market, and it is always treated as the base currency in any Forex quote where it is one of the pairs.Let's go now to our hypothetical Forex investment to show how you can profit or come up short in Forex trading. In this example, your pair of currencies are the U.S. Dollar and the Euro. The Forex rate of EUR/USD on August 26, 2003 was 1.0857, which means that one U.S. Dollar was equal to 1.0857 Euros, and was the weaker of the two currencies. If you had bought 1,000 Euros on that date, you would have paid $1,085.70.One year later, the Forex rate of EUR/USD was 1.2083, which means that the value of the Euro increased in relation to the USD. If you had sold the 1,000 Euros one year later, you would have received $1,208.30, which is $122.60 more than what you had started with one year earlier.Conversely, if the Forex rate one year later had been EUR/USD = 1.0576, the value of the Euro would have weakened in relation to the U.S. Dollar. If you had sold the 1,000 Euros at this Forex rate, you would have received $1,057.60, which is $28.10 less than what you had started out with one year earlier.As with stocks and mutual funds, there is risk in Forex trading. The risk results from fluctuations in the currency exchange market. Investments with a low level of risk (for example, long-term government bonds) often have a low return. Investments with a higher level of risk (for example, Forex trading) can have a higher return. To achieve your short-term and long-term financial goals, you need to balance security and risk to the comfort level that works best for you.

FOREX: What Is It And How Does It Work?

2007-12-26T06:25:00.000-08:00

by: Frederic Madore
The Foreign Exchange market, also referred to as the "FOREX" is the biggest and largest financial market in the world. It has a daily average turnover of US$1.9 trillion- just imagine that amount of money! Don't you want to join this trillion-dollar industry?
FOREX is the simultaneous buying of one currency and selling of another. Currencies are traded in pairs, for example Euro/US Dollar (EUR/USD) or US Dollar/Japanese Yen (USD/JPY). So basically, FOREX is trading.
There are two reasons to buy and sell currencies. About 5% of daily turnover is from companies and governments that buy or sell products and services in a foreign country or must convert profits made in foreign currencies into their domestic currency.
The other 95% is trading for profit, or what you call speculation. Investors frequently trade on information they believe to be superior and relevant, when in fact it is not and is fully discounted by the market.
On one side of each speculative stock trade is a participant who believes he has superior information and on the other side is another participant who believes his information is superior.
For speculators, the best trading opportunities are with the most commonly traded (and therefore most liquid- meaning its in cash or convertible to cash) currencies, called "the Majors." Today, more than 85% of all daily transactions involve trading of the Majors.
A true 24-hour market, FOREX trading begins each day in Sydney, and moves around the globe as the business day begins in each financial center, first to Tokyo, London, and New York. Unlike any other financial market, investors can respond to currency fluctuations caused by economic, social and political events at the time they occur - real time- day or night.
The FOREX market is considered an Over The Counter (OTC) or 'interbank' market. This is because the transactions are conducted between two counterparts over the telephone or via an electronic network. Trading is not centralized on an exchange compared to stocks and futures markets.

Understanding FOREX quotes
Reading a FOREX quote may seem a bit confusing at first. However, it's really quite simple if you remember two things: 1) The first currency listed first is the base currency and 2) the value of the base currency is always 1.
The US dollar is the centerpiece of the FOREX market and is normally considered the 'base' currency for quotes. In the "Majors", this includes USD/JPY, USD/CHF and USD/CAD. For these currencies and many others, quotes are expressed as a unit of $1 USD per the second currency quoted in the pair. For example, a quote of USD/JPY 110.01 means that one U.S. dollar is equal to 110.01 Japanese yen.
When the U.S. dollar is the base unit and a currency quote goes up, it means the dollar has appreciated in value and the other currency has weakened. If the USD/JPY quote we previously mentioned increases to 113.01, the dollar is stronger because it will now buy more yen than before.
The three exceptions to this rule are the British pound (GBP), the Australian dollar (AUD) and the Euro (EUR). In these cases, you might see a quote such as GBP/USD 1.7366, meaning that one British pound equals 1.7366 U.S. dollars.
In these three currency pairs, where the U.S. dollar is not the base rate, a rising quote means a weakening dollar, as it now takes more U.S. dollars to equal one pound, euro or Australian dollar.
In other words, if a currency quote goes higher, that increases the value of the base currency. A lower quote means the base currency is weakening.
Currency pairs that do not involve the U.S. dollar are called cross currencies, but the premise is the same. For example, a quote of EUR/JPY 127.95 signifies that one Euro is equal to 127.95 Japanese yen.
When trading FOREX you will often see a two-sided quote, consisting of a 'bid' and 'offer'. The 'bid' is the price at which you can sell the base currency (at the same time buying the counter currency). The 'ask' is the price at which you can buy the base currency (at the same time selling the counter currency).

Your FOREX Trading Philosophy

2007-12-26T06:22:00.000-08:00

by: Ron King
"Easy money" is the allure that captivates many beginning FOREX traders. FOREX websites offer "risk-free" trading, "high returns", "low investment." These claims have a grain of truth in them, but the reality of FOREX is a bit more complex.
Mistakes Of The Beginning Trader
There are 2 common mistakes that many beginner traders make: trading without a strategy and letting emotions rule their decisions. After opening a FOREX account it may be tempting to dive right in and start trading. Watching the movements of EUR/USD for example, you may feel that you are letting an opportunity pass you by if you don't enter the market immediately. You buy and watch the market move against you. You panic and sell, only to see the market recover.
This kind of undisciplined approach to FOREX is guaranteed to lose money. FOREX traders must have a rational trading strategy and not make trading decisions in the heat of the moment.
Understanding Market Movements
To make rational trading decisions, the FOREX trader must be well educated in market movements. He must be able to apply technical studies to charts and plot out entry and exit points. He must take advantage of the various types of orders to minimize his risk and maximize his profit.
The first step in becoming a successful FOREX trader is to understand the market and the forces behind it. Who trades FOREX and why? This will allow you to identify successful trading strategies and use them.
Accountability
There are 5 major groups of investors who participate in FOREX: governments, banks, corporations, investment funds, and traders. Each group has its own objectives, but 1 thing all groups except traders have in common is external control. Every organization has rules and guidelines for trading currencies and can be held accountable for their trading decisions. Individual traders, on the other hand, are accountable only to themselves.
Large organizations and educated traders approach the FOREX with strategies, and if you hope to succeed as a FOREX trader you must follow suit.
Money Management
Money management is an integral part of any trading strategy. Besides knowing which currencies to trade and how to recognize entry and exit signals, the successful trader has to manage his resources and integrate money management into his trading plan.
There are various strategies for money management. Many rely on the calculation of core equity -- your starting balance minus the money used in open positions.
Core Equity And Limited Risk
When entering a position try to limit your risk to 1% to 3% of each trade. This means that if you are trading a standard FOREX lot of $100,000 you should limit your risk to $1,000 to $3,000. You do this with a stop loss order 100 pips (1 pip = $10) above or below your entry position.
As your core equity rises or falls, adjust the dollar amount of your risk. With a starting balance of $10,000 and 1 open position, your core equity is $9000. If you wish to add a second open position, your core equity would fall to $8000 and you should limit your risk to $900. Risk in a third position should be limited to $800.
Greater Profit, Greater Risk
You should also raise your risk level as your core equity rises. After $5,000 profit, your core equity is now $15,000. You could raise your risk to $1,500 per transaction. Alternatively, you could risk more from the profit than from the original starting balance. Some traders may risk up to 5% against their realized profits ($5,000 on a $100,000 lot) for greater profit potential.
These are the kinds of strategic tactics that allow a beginner to get a foothold on profitable trading in FOREX.

Why You Should Have A Credit Card In Your Own Name

2007-12-26T06:16:00.000-08:00

by: Joseph Kenny
If you have ever been asked by your wife, husband, child or friend to have someone else as an authorised signatory to you, i.e. a supplemental signatory, on your credit card account you no doubt gave this some serious thought. If you agreed to the request, the following are some reason why you should have a credit card in your own name and they have a credit card in their own name.
Credit History
Possibly the main reason why you should have a credit card in your own name is the effect it has on your credit history.
In short, you have had to manage your financial affairs very astutely in order to gain a sufficient credit worthiness to apply for, and be approved, a credit card. Conversely, any supplemental signatory to you on your credit card doesn’t have to do anything – as the card is relying on your credit history to determine the risk of the third person. This may sound a little harsh, but if you think about it you are the one who is responsible for repaying the card, so why shouldn’t they rely on your ability to repay rather than some third person who has no obligation to repay them if there is an outstanding debt?
Now, you may well be thinking: “That’s not a problem, I’ll control their spending.” And, you may even be able to manage that feat. But, here’s another reason why you should have a credit card in your name and they should have a credit card in their name. Throughout the time that they are supplemental signatories to you on your credit card account, they are not enhancing their own credit worthiness – nor are they affecting their credit rating. So, even if they are good supplemental signatories and never spend money on your card without first seeking and getting your approval, it has no positive affect on their credit history. On the other hand, if they were to have a credit card in their own name, and were good and managed their account well, all of this would add lots of brownie points to their credit history!
Lose - Lose Situation
The reason why having a supplemental signatory on your credit card account is a lose-lose situation is not only because you take on the financial risk that they will behave themselves, but also they have no upside if they behave well. Also, keep in mind that if your supplemental cardholder runs amok and spends, spends, spends, it is your credit history that is being affected, not theirs!
What Does This Mean?
It means that you could work years building up the perfect credit history and rating only to have it all torn down overnight by someone else. So, if you don’t want that to happen, make sure have these good reasons why you should have a credit card in your own name only the next time someone asks you if they can become a supplemental signatory on your credit card account.

Forex Glossary

2007-11-23T16:27:00.001-08:00

A ~
Account
Semua catatan pembukuan yg menyangkut berbagai transaksi dari seorang nasabah, termasuk saldo kredit atau debit, floating loss/profit, dan nilai buku riil.
Account Balance
Selisih antara debit dan kredit dalam suatu rekening. Jika debitnya lebih besar dari kredit, maka rekening tersebut dikatakan memiliki saldo negative. Dalam istilah lain, itu disebut deficit. Sementara yg sebaliknya disebut surplus.
Account Statement
Laporan berkala yg menjelaskan status dari berbagai transaksi beli/jual sekuritas/kontrak mata uang seorang nasabah.
Ask Price (Harga Beli)
Harga penawaran penjelasan suatu kontrak mata uang/saham.
Automatic Trading SystemPelaksanaan transaksi dilakukan menggunakan kemajuan teknologi computer sehingga setiap pihak yg ingin melakukan transaksi cukup memasukkan order ke dalam media computer tersebut, tanpa harus saling bertemu secara langsung.
Agreement
Kontrak perjanjian antara nasabah dan pialang yg menyangkut masalah regulasi transaksi dan investasi.
Averaging
Melakukan transaksi dengan posisi yg sama pada saat dalam keadaan floating loss ataupun floating profit, di mana posisi pertama dibiarkan terbuka dan kita masuk lagi dengan transaksi kedua.

B ~
Balance
Dana real yg ada pada account.
Balance of Trade
Nilai dari ekspor dikurangi impor suatu Negara.
Bar Charts
Diagram batang. Jenis grafik itu menunjukkan harga pembukaan, penutupan tertinggi, dan terendah dari suatu mata uang atau saham. Perubahan-perubahan nilainya terjadi dari waktu ke waktu. Biasanya dipakai oleh kalangan dealer/trader mata uang/sekuritas untuk melakukan forecasting, atau perkiraan harga yg mungkin muncul di masa yg akan datang. Pada analisis bar charts itu dikenal pula berbagai macam pola (chart pattern) yg menggambarkan suatu kondisi kumpulan harga pada masa tertentu untuk kemudian diantisipasi gerakan harga selanjutnya menurut pola yg sudah pernah terjadi di masa lampau.
Base Currency
Dalam pengertian umum, hal itu menjelaskan sebuah mata uang yg dimiliki oleh seorang investor dalam neracanya. Dalam pasar valas dollar AS dinamai base currency untuk diperdagangkan dengan berbagai mata uang lainnya. Dihitung setiap satu dollar AS per mata uang pasangannya. Pengecualian system base currency itu adalah terhadap euro, poundsterling, Australian dollar, dan berbagai mata uang yg diletakkan di muka dollar AS pada kuotasinya, yg menandakan mata uang tersebut menjadi direct currency atau mata uang utama.
Bear Market
Satu kondisi dimana harga di pasar terus menurun.
Bearish
Istilah praktisi pasar uang/saham yg menunjukkan trend harga yg menurun.
Bid Rate (Harga Jual)
Harga yg dikehendaki oleh trader untuk membeli sebuah mata uang tertentu.
Bid/Ask SpreadPerbedaan harga beli dan jual pada suatu waktu tertentu. Jarak/perbedaan harga beli dan jual itu sering dijadikan indikasi likuiditas pasar. Artinya, jika spread semakin berkurang, maka semakin tinggi likuiditas keadaan pasar saat itu.
Bottom Price
Harga terendah yg terjadi dalam rentang waktu tertentu.
Broker
Pialang. Perantara antara pembeli dengan penjual sekuritas/produk pasar uang. Pialang biasanya mengenakan komisi untuk setiap transaksi dari nasabahnya.
Brokerage Fee
Komisi yg harus dibayar kepada pialang/broker karena telah melakukan suatu transaksi.
Bull Market
Istilah yg dipakai oleh praktisi pasar uang untuk menunjukkan trend harga yg sedang naik.

C ~
Cable
Istilah lain yg dialamatkan para trader valas global untuk sebuah nilai tukar STERLING/DOLLAR. Disebut demikian dikarenakan awalnya nilai tukar tersebut memang ditransmisikan lewat sebuah kabel pengirim (transatlantic cable) yg dimulai pada pertengahan 1800.
Candlestick ChartSebuah jenis grafik yg mengindikasikan kisaran transaksi pada suatu mata uang/saham. Berisi informasi mengenai harga Pembukaan, Tertinggi, Terendah, dan Penutupan. Jika harga penutupan berada di atas harga pembukaan, maka jenis Candle kosong. Sebaliknya, jika harga penutupan berada di bawah harga pembukaan (harga turun), maka Candle akan berisi. Pola analisis itu diperkenalkan pertama kali oleh para pedagang komoditas di Jepang pada awal abad 18-an.
Central BankBank pusat suatu Negara, di Indonesia Bank Indonesia, US adalah Federal Reserve, Jerman adalah BundesBank, dll.
ChartistSeseorang yg menggunakan chart dan grafik, serta membuat interpretasi trend data/sejarah pergerakan harga untuk menentukan trend dan membuat prediksi di masa yg akan datang. Sering disebut juga sebagai Pialang Teknikal.
Clearing
Proses penyelesaian dari sebuah transaksi.
CollateralSesuatu kecenderungan dalam keamanan sebuah pinjaman atau sebagai garansi dari pelaksanaan. (Sesuatu yg diberikan untuk mengamankan pinjaman atau sebagai garansi atas pelaksanaan).
Commission
Biaya komisi yg dibebankan oleh seorang broker terhadap investornya.
Confirmation
Bentuk konfirmasi, baik dalam bentuk rekaman maupun dokumen yg mengindikasikan telah terjadinya sebuah transaksi dari satu pihak atau pihak tertentu yg bersangkutan dengan jumlah, satuan, dan waktu transaksi tesebut dilakukan.
ContractStandar dari satuan transaksi. Biasanya juga merupakan minimal satuan kontrak transaksi.
Cross RateNilai tukar suatu atau beberapa mata uang yg tidak menjadi patokan standar Negara di mana mata uang tersebut diperdagangkan. Contohnya adalah, di Indonesia atau di Amerika Serikat transaksi mata uang EUR/JPY akan disebut sebagai transaksi cross rate. Sementara itu, untuk Negara kawasan zona Euro dan Jepang, kedua mata uang disebut mata uang primer yg diperdagangkan.
Currency
Sebuah mata uang yg dilegalkan oleh sebuah negara yg dimonitor langsung oleh bank sentralnya dan digunakan sebagai alat transaksi resmi negara tersebut.
Currency Risk
Peluang resiko yg mungkin ada dalam sebuah perubahan harga saat ini ataupun di masa yg akan datang.
Cut Loss
Tindakan di mana kita melakukan likuidasi posisi dalam keadaan rugi. Hal ini dilakukan untuk menghindari kerugian yg lebih besar. Biasanya cut loss ini dilakukan pada kisaran kerugian 30 point sampai 50 point.

D ~
Daily Trade
Transaksi yg dilakukan dalam jangka pendek, di mana transaksi jual dan beli dilakukan dalam satu hari atau saat itu juga.
Dealer
Seorang individu yg betindak melakukan berbagai transaksi keuangan untuk dan atas nama satu principal tertentu atau konterparti. Biasanya, principal tertentu mengambil satu posisi yg berharap akan bisa memetik keuntungan dari selisih harga transaksi tersebut dari konterpartinya. Hal yg lain dilakukan oleh seorang broker biasanya menjadi perantara transaksi tertentu dari individual atau korporasi, baik untuk transaksi jual maupun beli dengan mendapatkan komisi transaksi.
Deficit
Sebuah kondisi negative pada suatu neraca perdagangan/pembiayaan.
Deposito
Simpanan yg waktu pengambilannya dapat dilakukan pada limit waktu tertentu yg sudah disepakati.
Depreciation
Satu kondisi di mana nilai mata uang mengalami kejatuhan.
Derivative
Suatu kontrak yg nilainya berubah mengikuti perubahan harga (mata uang), yg termasuk kelompok usaha derivative adalah valas, futures, securitas, dll.
Down Trend
Adalah keadaan di mana trend mata uang sedang bergerak turun.

E ~
Economic Indicator
Indikator ekonomi suatu negara berdasarkan hasil survey badan statistik atau badan ekonomi. Biasanya akan dikeluarkan per satu minggu dalam bentuk forecast atau perkiraan.
End of Day Order (EOD)
Order yg aktif sampai akhir hari kerja, biasanya pada pukul 17.00 (05.00 PM).
Euro
Mata uang utama zona Eropa (kecuali Inggris).
European Monetary Union (EMU)
Tujuan utama EMU adalah menjadi lembaga pelaksana kebijakan satu mata uang (single European currency) dengan nama EURO mulai tahun 2002. Pada tanggal 1 Januari 1999 transisi dimulai. Anggota EMU adalah Germany, France, Belgium, Luxemburg, Austria, Finland, Ireland, The Netherlands, Italy, Spain, dan Portugal.
Entry Order
Sebuah perintah beli atau jual mata uang pada level harga tertentu.

F ~
Federal Reserve (Fed)
Bank Central Amerika.
Flat/Square
Suatu kondisi impas, istilah yg digunakan oleh broker atau Delaer. Misalnya, anda posisi long $5000 dan short $5000.
Floating Loss
Keadaan di mana nasabah dalam keadaan rugi sementara posisi transaksi belum ditutup.
Floor Broker
Orang yg selalu berada di Pit, Ring, atau tempat lain yg disediakan di lantai bursa untuk bertemu dengan orang-orang yg terlibat di dalam transaksi perdagangan berjangka komoditi untuk orang lain dan harus taat pada peraturan bursa komoditi.
Forex
Foreign Exchange yaitu perdagangan mata uang asing dengan mata uang asing lainnya dalam satuan kontrak, yg tidak melibatkan fisik secara langsung melainkan hanya nilainya saja. Perdagangan atau transaksi ini menggunakan margin sebagai jaminan transaksi.
Forward
Nilai tukar yg sudah ditentukan sebelumnya untuk kontrak pertukaran mata uang asing pada tanggal yg sudah disetujui di masa mendatang, yg ditentukan berdasarkan perbedaan nilai suku bunga di antara kedua negara yg bersangkutan.
Forward Points
Pips yg ditambahkan atau dikurangkan dari nilai tukar terkini untunk menghitung nilai forward. Fundamental Analysis
Analsis berdasarkan berita atau isu seputar kegiatan ekonomi suatu negara.
Futures Contract
Sebuah kewajiban untuk bertukar barang atau alat pada harga yg telah ditetapkan di masa yg akan datang. Perbedaan utama antara Future dan Forward adalah bahwa Future secara khusus diperdagangkan melalui pertukaran (Exchange – Traded Contacts/ETC), sedangkan Forward dianggap sebagai kontrak Over The Counter (OTC). OTC adalah kontrak apa saja yg TIDAK diperdagangkan dalam sebuah pertukaran.
Futures TradingPerdagangan berjangka.

G ~
Good Till Cancelled Order (GTC)
Order ini akan terus ada sampai bisa terpenuhi atau dibatalkan.
Gross Profit
Keuntungan, yg belum dikurangi dengan biaya-biaya lainnya.
Guaranteed Limit Risk
Garansi atau batasan resiko yg akan dialami oleh investor.

H ~
High Risk
Tingkat resiko yg dialami di kemudian hari yg sangat tinggi.
High Return
Tingkat keuntungan yg akan dialami sangat tinggi.
Hedge
Posisi atau kombinasi beberapa posisi yg ada untuk mengamankan suatu harga atau meminimalkan pergerakan harga.

I ~
Industrial ProductionMerupakan standar perhitungan. Output industri-industri di Amerika Serikat, dikurangi sektor listrik dan gas. Outputnya dinyatakan dalam prosentase.
Inflation
Suatu kondisi ekonomi di mana harga-harga barang konsumen bergerak naik, mengikis daya beli masyarakat.
Initial MarginMargin awal yg dibutuhkan untuk membuka suatu posisi, margin dibutuhkan untuk memberikan garansi bagi broker.
Injection
Adalah penambahan dana yg dilakukan oleh nasabah akibat dari margin yg tersedia tidak mencukupi untuk melakukan transaksi atau menahan suatu posisi terbuka.
Interbank Rates
Nilai tukar mata uang asing di mana bank internasional besar mengikuti nilai tukar bank internasional besar lainnya.
Interest Rate
Dalam perdagangan mata uang nilai bunga (interest rate) ditentukan dengan perbedaan antara interest rate base currency dan quote currency. Interest rate hanya dikenai pada posisi yg over night. Besarnya interest rate ditentukan oleh BBJ setiap bulan.

L ~Leading Indicators
Indikator yg dapat memprediksi pergerakan harga di masa yg akan datang.
Leverage
Merujuk pada margin trading atau gearing. Menggunakan dana kredit untuk meningkatkan kekuatan beli/jual.
Limit Profit
Sebuah perintah beli atau jual mata uang pada level harga tertentu pada saat posisi sudah untung.
Liquidation
Penutupan suatu posisi karena syarat-syarat yg terpenuhi atau interverensi dari Trader.
Liquidity
Kemampuan pasar untuk menerima transaksi yg besar dengan pengaruh yg sangat kecil atau justru tidak ada pengaruh terhadap stabilitas harga.
Locking
Tindakan ini sering dilakukan pada saat kita dalam keadaan floating loss. Untuk mengurangi kerugian yg lebih besar atau mempertahankan keuntungan, kita kunci kerugian atau keuntungan tersebut dengan posisi yg berlawanan dengan posisi pertama. Sistem ini sering juga disebut dengan hedging position.
Long Position
Sebuah posisi yg meningkat jika nilai pasar meningkat.
Lot
Satuan hitung untuk menyatakan besarnya transaksi. Transaksi minimal yg bisa dilakukan adalah satu lot. Dalam investasi forex satu lot bernilai USD 10,000 untuk nilai kontrak kecil dan USD 100,000 untuk nilai kontrak besar.

M ~
Margin
Dana yg dibutuhkan untuk mempertahankan (atau membuka) posisi (bisa satu atau beberapa posisi).
Margin Call
Permintaan broker untuk dana segar (atau aksi tertentu) untuk mempertahankan posisi aktif yg ada, atau jika tidak, maka senua posisi aktif akan dilikuidasi.
Maintenance Margin
Biasa disebut minimum margin, adalah margin yg harus dijaga atau dipelihara oleh investor dalam melakukan transaksi yg umumnya sekitar 75-80% dari margin awal.
Market Order
Perintah untuk membeli atau menjual pada tingkat harga tertentu.
Market RiskTerbuka terhadap perubahan dalam harga pasar.

N ~Necessary Margin
Jaminan yg dibutuhkan dalam satu lot transaksi.
Non-Farm Payrolls
Merupakan perhitungan jumlah atas tenaga kerja bukan pertanian yg bertambah atau berkurang dalam suatu periode waktu tertentu, biasanya tiap bulan. Data ini merupakan salah satu indicator paling penting bagi pengukuran trend ekonomi suatu negara.

O ~Offer
Tingkat harga yg ditawarkan oleh dealer untuk suatu nilai jual mata uang.
Offseting Transaction
Suatu perdagangan dengan yg bersedia membatalkan atau mengganti kerugian atas beberapa atau semua resiko pasar dari posisi terbuka.
One Cancels the Other Order (OCO)
Didesain untuk 2 order, di mana bila salah satu dijalankan, yg lain secara otomatis akan dibatalkan (cancel).
Open OrderSebuah order yg akan dijalankan bila harga bergerak memenuhi syarat yg ditetapkan. Biasanya disebut “Good until Cancelled Orders”.
Open Position
Sebuah posisi yg belum dieksekusi.
Over The Counter (OTC)
Digunakan untuk menggambarkan transaksi yg tidak dilakukan melalui “exchange”.
Overnight
Sebuah posisi yg terus aktif sampai hari berikutnya (bermalam).

P ~
Physic TradingPerdagangan yg melibatkan fisik dari perdagangan tersebut. Tempat perdagangan tersebut biasanya di suatu tempat di mana penjual dan pembeli saling mengetahui/kenal.
PipsDigit yg ditambahkan atau dikurangkan dari tempat decimal keempat, misalnya 0.0001. Juga disebut points.
Political Risk
Perubahan kebijakan pemerintah yg akan memiliki efek yg tidak diinginkan pada posisi investor.
Position
Penahanan total yg diterima bersih atas sebuah mata uang yg diberikan.
Price Transparency
Menggambarkan kuotasi di mana setiap partisipan pasar memiliki akses yg sama.
Producer Price Index (PPI Output)
Indeks ini mengukur perubahan harga dari bahan-bahan mentah yg digunakan dalam proses industri manufaktur. Indeks yg lebih rendah lebih disukai oleh industri manufaktur (juga bagi perekonomian) apabila ditinjau dari segi biaya produksi yg harus dilaksanakan.
Producer Price Index (PPI Output)
Indeks ini mengukur level perubahan harga pada barang-barang setengah jadi dan barang jadi yg dihasilkan manufaktur. Indeks yg lebih rendah mencerminkan biaya produksi dan/atau upah pekerja yg lebih rendah pula sehingga dapat membantu mengatasi inflasi. Indeks yg lebih tinggi memberikan indikasi meningkatnya tekanan inflasi.

R ~
Rate
Harga satu mata uang terhadap mata uang yg lain, biasanya digunakan untuk tujuan perjanjian.
Relative Strength Index (RSI)Studi analisis yg memneri sinyal apabila RSI mendekati 20% atau sama dengan atau lebih kecil yg biasa disebut oversold maka lebih baik untuk open position buy. Apabila RSI mendekati 80% atau sama dengan atau lebih kecil, yg dikenal sebagai overbought maka lebih baik untuk open position sell.
ResistanceSebuah istilah yg digunakan dalam analisis teknikal yg mengindikasikan tingkat nilai tertentu yg dengan hasil kesimpulannya orang akan menjual.
Retail Sales
Data ini mencerminkan jumlah penjualan keseluruhan dari pengecer hingga ke konsumen akhir dari barang-barang yg diperdagangkan. Jumlah keseluruhan tersebut juga menunjukkan tingkat permintaan di dalam suatu negara.
Revaluation
Sebuah nilai tukar yg naik bagi sebuah mata uang sebagai hasil dari intervensi bank central. Kebalikan dari devaluasi.
Risk
Terbuka terhadap perubahan yg tidak menentu, sering digunakan dengan konotasi negative dari perubahan yg merugikan.
Risk Management
Penggunaan analisis financial dan teknik trading untuk mengurangi dan atau mengontrol berbagai macam resiko.
Roll-Over
Proses di mana sebuah persetujuan perjanjian dimajukan ke tanggal nilai lain. Biaya dari proses itu didasarkan pada perbedaan suku bunga dari kedua Negara.

S ~
Settlement
Mengakhiri perdagangan antar pialang yg bertindak sebagai agen atau antara pialang dengan pelanggan atau kliennya. Suatu perdagangan diselesaikan apabila pelanggan sudah membayar pialang untuk surat berharga yg dibelinya, atau apabila pelanggan menyerahkan surat berharga yg sudah dijual dan pelanggan menerima hasil penjualannya.
Short Position
Posisi jual.
Sideway
Adalah keadaan di mana trend mata uang bergerak cenderung turun naik antara support dan resistant dalam satu periode tertentu. Ini disebabkan adanya market yg libur terutama market Amerika Serikat.
Spot Price
Nilai pasar terkini. Transaksi settlement atau spot biasanya terjadi dalam 2 hari kerja.
Spread
Perbedaan harga antara harga jual dan harga beli.
Sterling
Kata lain dari mata uang Pound Inggris.
Stochastic
Studi analisis yg member sinyal apabila Stochastic mendekati 0-20% sama dengan atau lebih kecil maka lebih baik untuk posisi buy. Apabila Stochastic mendekati 80% sama dengan atau lebih kecil maka lebih baik untuk open position sell. Apabila di tengah-tengah lihat historical sebelumnya.
Stop Loss Order
Limit order yg digunakan untuk membatasi kerugian. Merupakan salah satu alat risk management.
Support Levels
Sebuah teknik yg digunakan dalam analisis teknikal yg mengindikasikan nilai spesifik teratas atau terbawah di mana nilai tukar yg diberikan akan mengoreksi dirinya sendiri secara otomatis. Kebalikan dari resistance.
Swap
Sebuah swap mata uang adalah transaksi yg simultan pada jumlah tertentu yg diberikan kepada sebuah mata uang yg levelnya ditentukan kemudian.
Switching
Tindakan di mana kita melakukan likuidasi posisi pada posisi pertama, dan masuk kembali pada posisi yg berlawanan dari posisi pertama tadi.

T ~
Technical Analysis
Sebuah upaya peninjauan atau analisis harga sebuah mata uang mempergunakan data statistic seperti harga yg telah terjadi, harga rata-rata, volume, dll.
Tomorrow Next (Tom/Next)
Jenis transaksi pembelian atau penjualan dari sebuah mata uang untuk penyerahan sehari sesudahnya.
Trader Orders
Perintah untuk membeli atau menjual mata uang pada posisi tertentu dalam kisaran harga tertentu.
Transaction CostBiaya transaksi financial yg dibutuhkan.
Transaction Date
Tanggal transaksi.
Turnover
Total nilai uang (volume) dalam seluruh transaksi keuangan pada suatu waktu.
Two Ways Transaction
Transaksi dua arah.
Two-Way Price
Ketika nilai bid dan offer dipakai untuk transaksi mata uang.

U ~
Unemployment Rate (Tingkat Pengangguran)
Tingkat presentase tenaga kerja produktif yg tidak mendapatkan pekerjaan.
Uptick
Sebuah nilai kuotasi baru yg ditentukan lebih tinggi dari nilai kuotasi yg sebelumnya.
Uptrend
Adalah keadaan di mana trend mata uang sedang bergerak naik. Kita dapat membuka transaksi dengan beli (buy), dan kemudian menutup posisi dengan jual (sell).
US Prime Rate
Suku bunga pinjaman yg diberikan oleh bank komersial kepada konsumen komersil utamanya. Jenis suku bunga lainnya biasanya tergantung dari jenis suku bunga ini, yg dalam banyak hal tidak selalu bergantung pada trend-trend di masa lalu dan trend-trend potensial di masa depan.

V ~
Value Date
Tanggal yg ditentukan oleh sebuah perusahaan pialang untuk kebutuhan suatu transaksi atau pembayaran jatuh tempo. Dalam keadaaan normal, biasanya dibutuhkan waktu dua hari kerja. Dikenal juga dengan istilah Tanggal Jatuh Tempo.
Variation Margin
Dana yg harus diminta seorang broker pada kliennya untuk kebutuhan posisi di pasar mata uang yg ingin dipertahankan oleh kliennya tersebut.
Volatility (Vol)Sebuah metode statistic yg mengukur pergerakan harga di pasar dalam satu periode waktu tertentu.

W ~
Whipsaw
Istilah lainnya untuk sebuah kondisi pasar yg memiliki tingkat volatilitas harga yg tinggi, di mana sebuah mata uang bergerak sangat cepat pada satu arah, dan kemudian diikuti oleh pembalikan harga dalam seketika.

Y ~
Yard
Istilah lainnya untuk satu milyar.

Tip Seputar Money Management

2007-11-23T16:25:00.000-08:00

1. Atur resiko setiap transaksi pada 2%
Bisa lebih besar (sampai 5%) untuk account di bawah $5000. Pengaturan resiko dapat dilakukan melalui mekanisme stop loss, yg akan dibahas pada poin ke-2.

2. Selalu gunakan Stop Loss
Mekanisme penggunaan Stop Loss.
a. Posisi stop loss menyesuaikan dengan time frame yang anda pakai, akan semakin besar interval stop loss yang anda pasang.
b. Interval stop loss minimal adalah sebesar channel yg terbentuk atau sebesar nilai resiko per transaksi yg telah anda tentukan sebelumnya.
c. Jangan mengubah nilai stop loss dengan alasan apapun, sekalipun pergerakan harga mendekati nilai stop loss.

3. Never Over TradeHal yg perlu diperhatikan adalah bahwa setiap transaksi membutuhkan margin deposit dan setiap margin akan mengambil sebagian account. Bijaksanalah dalam menggunakan margin, jangan sampai anda melakukan transaksi beberapa posisi sekaligus (overtrading) karena hal tersebut akan sangat membahayakan modal anda.

4. Never let a profit run into a lossGunakan trailing stop untuk mengamankan posisi anda, jangan sampai keuntungan yg ada di depan mata berubah menjadi kerugian. Berhati-hatilah agar posisi anda tetap tidak terkena trailing stop, berikan tempat agar Chart bisa bergerak naik turun.

5. Cut your lossesAnda yg menggunakan mental stop loss segeralah keluar dari posisi bila telah mencapai resiko yg anda perbolehkan terjadi. Jangan berharap Chart akan berbalik ke arah yg anda inginkan dan mengembalikan kerugian yg telah timbul.

6. Always go with the trend

7. No position is a position too
Tidak setiap waktu anda harus mengambil posisi. Ada saatnya dimana anda perlu mengamati. Tidak mengambil posisi juga sebuah posisi.

8. Pisahkan Account Anda
Jika account anda mulai bertambah karena system yg mulai bekerja dengan baik, jangan lupa pisahkan account asli anda dengan hasil keuntungan.