How to Trade Currency
So you want to know how to trade currency. All you are doing when you trade currency is trading a particular country's form of money for another's. For example, if you happen to be in the US and you took a jaunt to Mexico, you could switch your US Dollars for Mexican Pesos. When you do that you have just traded currency. However, in order for this to transpire, a system has to exist to churn out this trade fast and simple. That system is the Foreign Exchange Market or Forex Market for short and it is open 24 hours a day, 365 days a year.
Now the big deal about how to trade currency that the value of each country's money is not equal. The currency value of one nation is always going to be higher or lower than that of another and that value is always in flux. That being the case, if the cash that you are holding in your hand right now goes up in value opposed to another nation's currency, you can trade it for that other currency and make a profit. For instance, if you decide to get a Euro (EUR) with US Dollars (USD) and the present rate of exchange is 1.2500, $1.25 gets you one Euro. Now if the rate of the Euro goes up to 1.5000, the Euro is now valued at $1.50 in US Dollars. At this point, you can switch that Euro back for US money and produce 25 cents profit. Thatbasically, is how to trade currency. This is what international banks have always done to render billions every year. Lately, due to advancements in technology and the internet, that ability has been given to the private investor as well.
When you look at a Forex chart you will notice a currency pair like this: EUR/USD. The first currency listed is the more expensive of the two and is identified as the "base" currency. The second currency is the lower value and is known as the "counter" or "quote" currency. Next to the currency pair, a five-digit value is presented like this: EUR/USD = 1.6000. That means that every Euro is worth $1.60 in US Dollars. When there is a movement in the currency, that movement is known as a "PIP" which is an acronym for for Price Interest Point. The trick is to purchase a currency when it is low and trade it when it is high. That's fundamentally how to trade currency.
When you exchange currency via a broker, you leverage more money than you really have. Apparently, exchanging substantial amounts of money like this can be exceptionally profitable but it is also just as perilous. One minute movement in the wrong direction may possibly burn up everything you have invested in it in one day. That is why it is imperative to study how to trade currency the correct way before you actually start doing it from veteran, winning traders and then practicing on a demo account before you actually start laying out your own cash.
Alpari Uk - How To Get Monthy Rebate On Your Forex Trading With Alpari Posted By: Douglas Smith
Alpari Uk is one of the most established and trustable Forex Brokers on the market. Alpari Uk is regulated under the Financial Services Authority. With Alpari Uk you can trade with the Metatrader 4 trading platform. This trading platform is among the most widely used platforms in forex trading. It has several advantages. For example, by using so called Expert Advisors you can trade forex automatically even when you sleep. Forex Megadroid, FAP Turbo and Forex Shocker is among the most popular Expert Advisors that you can use if use Alpari Uk. Alpari Uk makes money on spreads and commissions. When your turnover is very large, your broker make a lot of money from your trading. Is there a way to get a discount or cashback on all this money your broker is making from your trading?
Yes there is! Take a look at the following calculation example:
Assume that you open an account with Alpari Uk, which offers 0.42 pip discount per roundtrip lot traded. One pip equals about $10 on average if you trade EURUSD, EURCHF and EURGBP. Lets say that you deposit $2000 on the account. Our estimate is that you will turn over about 20 Lots per $1000 per month on your account when using FAPTurbo and Megadroid. Assume that your turnover is 100 lots per month on your $5000 account.
Your monthly cash rebate during the first month would then be:
0.42 x 10 x 100 = USD 420
Your annual ROI would then be (420x12/5000) about 100% per year, only from the cash rebates.
This is a very conservative figure since it does not take any compounding at all into regard and assumes zero growth from expert advisors. Assuming a monthly growth rate of 20% you could make $6000 per year from this program only. The good thing with this program is that you make money bas on your volume, not only on your win rate.
It is 100% free to sign up and your spreads or commission remains the same after joining this program so there is really no reason why not to join. It is simply just money waiting to be collected by you!
Alpari Uk is not the only broker that is connected to Cashback Forex. You can also claim a cashback from the following brokers: Alpari UK, Avafx, Dukascopy, Etoro, FXCBS, FXCM, FXDD, Fxopen, Fx Pro, GallantFX, Go Markets, Liteforex, Marketiva, Tadawul FX, X Forex
If you are a forex trader, sign up for this program today and start to take advantage of the cashback system and get some money back from the brokers.
To learn more about this program and to sign up, please go to the link below.
Alpari Uk Cashback Program: http://www.goarticles.com/cgi-bin/showa.cgi?C=2377957
Avoid This One Deadly Mistake To Become A Successful Forex Trader Posted By: Paul Lum
Ah yes, this one mistake will eat you alive. It will empty your forex trading account. It will break your spirit like no other trading mistakes will. This is the very same mistake that every trader would have made at least once in his or her trading experience. But if you can avoid this costly mistake, half your battle for successful forex trading is won.
So what is this monster of a mistake?
It is over-leveraging a trade and not cutting its loss when it begins to go the wrong way, instead letting the loss snowball into something out of control. Just making this mistake one time... yes one single time, will make you doubt if you could ever recover your losses or even damage your psyche and cause you to abandon forex trading altogether.
If you have been trading, you will know exactly what I am talking about. If you're about to begin learning forex trading, you would probably have heard about the dangers of trading - losing your capital in double quick time.
And this is exactly the danger you've been hearing about trading that even the most professional traders are susceptible to making.
The truth is that you DO NOT have to make this mistake of suffering a mega loss on a single trade. But due to human nature, greed, fear and so forth, overcoming these "mental barriers" can be challenging for many.
With that said, do not let that discourage you. Because if you are determined to succeed at forex trading, you will persevere and overcome this problem eventually. And thereafter you will find that making money from forex trading isn't difficult at all.
Forex Trading - Do You Want To Ride The Money Wave? Posted By: Paul Lum
"Ride the wave. Don't go against it." - This one classic trading advice alone can literally multiply your income if you put to use.
Most traders, not only in forex trading, will emphasize this wisdom over and over again until it gets into your head. No doubt, this saying is one of the top advices you will remember for as long as you are in the game of trading. It will separate you from those who have failed and the traders who struggle for many years just to break even.
If you are especially new to forex trading, you would want to heed this advice instead of being a "top and bottom picker". While there are experts who deviate away from that advice, the beginners who try to "act smart" in hopes of executing a reversal of the market are likely to get burnt badly by going against the trend.
Be wise! Don't struggle against the current if clear signs of a market reversal aren't obvious. Otherwise, forex trading becomes no different from a guess game or even gambling that will constantly burn holes in your pocket.
By following the trend, what you are essentially doing is letting your profits run. Sure, you could get lucky once in awhile if so happens a trend reversal occurs in your favor, but without strict money management, you are likely to blow a large portion of your trading account by the time that occurs. And even then, you're still defiantly telling yourself, "This must be it! Reverse now, damn it!"
Please be wise about it. Use common sense and logic. Never try to be a "smart ass". Take the path of less resistance, ride the wave, be it a downtrend or uptrend, and enjoy making more profits everyday!
What Are The Perks Of Being A Forex Trader? Posted By: Paul Lum
Do you want to become a forex trader? Hell, seems like everyone and their grandma want to trade forex for a living. Even forex-related books at the libraries are always snapped up on reserve. So why do people want to get into forex trading, and what is life like as a currency trader?
Perhaps I'll touch on the negative side of trading forex in another article. But here are the great things about being a forex trader.
Work from home - As a retail forex trader, all you literally need is a PC and an Internet connection. That means you can carry your laptop with you and trade while you travel around the world at the same time. How awesome is that?
The Possibility of Making MAD Income - That's right. With high leverage, you can multiply your income quickly like no other jobs can, but of course you can lose all your money in double quick time as well - Kind of like a double-edge sword.
Being Your Own Boss - No boss to bark at you in the office... the freedom to take holidays whenever you feel like it... the opportunity to achieve financial success with your very own hands.
No doubt, the perks of being a forex trader are many. And many people are drawn to them one way or another. If you are determined to meet and overcome the challenges of forex trading with the right attitude, that in itself is a great beginning. With the proper guidance and resources to push you along, your success with forex trading will be well within reach.
Forex Training - How To Become A Really Competent Trader Posted By: Paul Lum
There are many ways to receive forex training. But before you embark on this journey, one of the most important things you can do is to read up and get to know what forex trading is about, the challenges you will be facing and generally what to expect.
Just like learning to swim, you can't be thrown into the deep end of the pool immediately or else the consequences will be disastrous. In fact, learning about what to expect as a forex trader will discourage many right at the beginning.
But this is important nonetheless. If afterwards you feel that forex trading is your 'cup of tea', then do not hesitate to explore and learn further about forex trading.
With that said, you can receive forex training in many different forms.
Firstly, you can easily download free resources such as forex ebooks and audio on the Internet. The web has plenty of resources that can help you get started. Very often, these ebooks provide a good overview of forex trading in general - to arm you with the basic knowledge of forex trading.
Secondly, spending your time on popular forex forums can expose you to trading strategies, current affairs, and even helpful community members who are more than willing to lend a helping hand when you have questions. In addition, it's fun to 'rub shoulders' with other forex traders like yourself.
But the best way to jumpstart your trading journey, in my opinion, is no doubt to get a mentor to guide you along the ropes. Being an experienced trader, a mentor can point out to you the pitfalls along the way. A mentor can spot your flaws and correct them, with effort on your part of course. Simply put a mentor can fast track your journey to becoming a successful forex trader.
If you are just getting started with forex trading, it is common to suffer from information overload. Take your time to gather different resources and learn from them. Keep a positive mind and strive to be the best forex trader you can be.
Forex Trading - Why Do Pigs Get Slaughtered? Posted By: Paul Lum
There is this saying on Wall Street, "Pigs get slaughtered." You may have heard of popular terms such as bulls and bears, but have your heard of pigs? Pigs are the indecisive traders who can't make a profit in either direction of the market, precisely because they haven't got a plan for either direction of the market.
Bulls profit when the market goes up in their favour. Bears profit when the market goes down in their favour. What about Pigs? They often hold a trade for too long, until profits have dwindled to nothing, or even a loss. Very often, such habits can damage the trader's psyche and screw around with his emotions.
The truth is - It is fine to leave money on the table when you have hit your target of expected returns.
This means that you should have strategies to follow in the first place, defining how much returns you are targeting on every trade. You will find that it is almost impossible to nab every single pip of profit along the way. It's like trying to catch a fly with a pair of chopsticks - simply not going to happen.
This of course, is extremely vital to your success as a forex trader. You always want to trade with a plan. Otherwise, very often you will find yourself being stuck in no man's land, not knowing when to exit your trade or whether to remain in it.
This brings me to the saying, "Failing to plan is planning to fail". And yes, it applies very much to your success in forex trading.
How To Get Mt4 Broker Rebates Posted By: Douglas Smith
An MT4 Broker makes money on spreads and commissions and when your turnover is very large, your broker makes a lot of money from your trading. Is there a way to get a discount or cashback on all this money your broker is making from your trading? Yes there is! Take a look at the following calculation example:
Assume that you open an account with FXCM which a very reputable MT4 Broker, which offers 0.6 pip discount per roundtrip lot traded. One pip equals about $10 on average if you trade EURUSD, EURCHF and EURGBP. Lets say that you deposit $2000 on the account. Our estimate is that you will turn over about 10-15 Lots per $1000 per month on your account when using FAPTurbo and Megadroid. Assume that your turnover is 24 lots per month on your $2000 account.
Your monthly cash rebate during the first month would then be: 0.6 x 10 x 24 = USD 144
Your annual ROI would then be (144x12/2000) about 86% per year.
This is a very conservative figure since it does not take any compounding at all into regard and assumes zero growth from expert advisors. Assuming a monthly growth rate of 20% you could make $4500 per year from this program only. It is 100% free to sign up and your spreads or commission remains the same after joining this program so there is really no reason why not to join. It is simply just money waiting to be collected by you!
FXCM is not the only MT4 Broker that is connected to Cashback Forex. You can also claim a cashback from the following brokers: Alpari UK, Avafx, Dukascopy, Etoro, FXCBS, FXCM, FXDD, Fxopen, Fx Pro, GallantFX, Go Markets, Liteforex, Marketiva, Tadawul FX, X Forex.
If you are a forex trader, sign up for this program today and start to take advantage of the cashback system and get some money back from the brokers. To learn more about this program and to sign up, please go to the link below.
MT4 Broker Cashback Program: http://ezinearticles.com/?How-To-Get-MT4-Broker-Rebates&id=3422081
History Of The Forex Market: How It All Began Posted By: amen
The modern Forex market was established around 1973. But the BrettonWoods Accord of 1944, which was established to stabilize the global economy after World War II, is generally accepted as the original beginning of the foreign exchange market. It created the concept of trading currencies against each other and the International Monetary Fund (IMF). Currencies from around the world were fixed to the U.S. dollar, which in turn was fixed to gold prices in hopes of bringing stability to global Forex events. All currencies were allowed to fluctuate around that value but only within a narrow trading range. Central banks agreed to intervene in the event that their countrys currency moved or threatened to move outside that trading range. If the fixed value of a countrys currency shifted outside that trading range, that country had the right under the articles of the agreement to declare that a fundamental imbalance is in existence. As a result of this fundamental imbalance, it created a revaluation or devaluation
of the countrys currency.
In 1971, the accord finally failed, however, it did manage to stabilize major economies of the world, including those of America, Europe,and Asia.
In late 1971 and 1972, two more attempts were made to establish free-floating currencies against the U.S. dollar: the Smithsonian Agreement and the European Joint Float. To float a currency simply means to create a policy by which a strong economic currency is used, such as the U.S. dollar (USD), which in turn is anchored to the price of gold as a benchmark (also known as the gold standard) to bring stability to a volatile global economic situation. All other weaker economic currencies are then fixed against the USD and allowed to fluctuate, or float, no more than 1 percent on either side of the fixed rate. If the fixed rate moved more than 1 percent, the central bank of that country was required to intervene in the market until the exchange rate was brought back to within the 1 percent band. The Smithsonian Agreement and the European Joint Float agreement were similar to the Bretton-Woods Accord but allowed a greater range of fluctuation in the currency values and widened the band in which currencies were allowed to trade.
Forex Trading Demo: The Most Effective Way To Use It Posted By: Erik Shimer
Forex Trading Demo
Even if you are just beginning to study Forex trading, you have most likely heard of Forex trading demo accounts. Of course the benefit of utilizing these demos is that you can practice trading before taking on the significant risks associated with using your own hard-earned cash. However, do these demos really prime you for real trading? In this article, we will see how a Forex trading demo can help you, how to use one the right way and what to watch out for.
One issue you need to be aware of is that a Forex trading demo is commonly modelled after a standard trading account and not a mini trading account. The challenge with this is that the majority of beginning traders start out with a mini account for the reason that their is less risk involved. The standard account involves more risk and higher margins which can result in higher profits with less movement in a particular currency. So if you practice on a demo that is based on standard account you are going to have to make a number of adjustments to your trading style if opt to get started with a mini account.
Something else to take into consideration is the pyschological aspects. Fake losses don't have the same emotional influence as real ones. So when you switch to trading real money, you might not make the same bold moves you made on the Forex trading demo. But still, practicing on a demo account can give you a good feel for the behavior of the market and might save you considerable money and frustration then just jumping in cold and opening with real money.
But one thing that you should be using in conjunction with a Forex trading demo is a high quality trading course produced by knowledgeable sucessful traders. It is better to learn ahead of time from their blunders then from your own heartbreaking expereince. Plus, that way you can practice right out of the gate with solid systems and strategies and not have to unlearn bad habits.
Next it is ordinarily a good idea to get started with a mini forex account because of the smaller risks and it doesn't take much money to get the account started. You probablywon't be pulling off any gigantic profits with this account but you won't be taking any sizeable losses either. Then, if and when you feel more comfortable, you can increase your deposit and try a standard account.
In conclusion, the greatest way to really get your feet wet before risking your own money is to learn from experts and practice their techiques on a Forex trading demo account. This will probably give you a really good idea if Forex trading is for you or not.
Different Trading Methods Learned With A Technical Analysis Course Posted By: Charles Drummond
Never before have I seen something like all the methods that are coming out to use in commodity price forecasting . Hundreds or different approaches and techniques are out there. This chapter will present rather briefly, but a few .
Some of them are rather conventional and this author will place an asterisk beside the ones which he personally uses . In this chapter alone there are 36 mentioned ways of price forecasting . This does not take into consideration all the excellent tidbits that come through the revelation of P&L charting technical analysis course.
(This author is very happy with P&L charting , because it allows the ability on a daily and intra day basis to quantify price action . I know of no other system where more than trend or congestion the activity of the day means more in the way trading prices are going . The activity of each day by using P&L charting can show the evolution of a congestion or trend, often in just a day . )
Of course, , this author is most irritated by those traders who are convinced that their resistance index, moving averages, point and figure, volume oscillator , god knows what else , - cash, basis , - are the one system that proves effective. And, the system they use is the one system that is going to be effective and they never have any real use for seasonals, contrarian opinion, volume, oscillators, momentum indices, indices, other options , and are blinded to the approach of others . ( Yes. I was able to get that out.)
These traders often do not even use their own systems and at least to me it seems , to always be fighting the market . If you assume the trader has gone through a technical analysis course and has a trading plan incorporating several methods of forecasting prices and combines them in a way which he can continually trade profits from the market , then listening to this trader is a good idea . In the planning section , the author will portray his own market place approaches and the flexibility may surprise you .
In order to analyze commodity price behavior on the market, there are 3 methods .
1. fundamental
2. mechanical
3. technical
FUNDAMENTAL
Often the market ends up going opposite of considerations that are fundamental due to factors like technical ones. Price movements in the long range are what the fundamental trader is interested in and must be prepared to wait it out . Although they may deny it , but the external factors you have to consider are too many, such as the natural response to fundamental influences , reflected in the fluctuations day by day . So for analysis, there is now reason to seek them out .
MECHANICAL
The mechanical methods use price and price alone to decide on the action they should use and the action doesn't require a trader's decision . Three mechanical methods exist .
1. chart
2. computer summaries
3. moving averages
Taking a technical analysis course will teach these rigid trading rules to be followed faithfully and in most cases it's based on a formula that is mathematical to predict the right time to trade . A mathematical formula is used by the computer, which tells you want to do. One great thing about this method is that you can back check it . Computer based methods is usually biased toward the analysis of a mathematical trend, using various trading systems, like moving averages . The computer can read charts for you and all rules can be formulated and tested .
TECHNICAL
In the last several decades , a vast amount of work has been done to erect a means of technical tools , - all aiming to anticipate futures prices from the statistics of trading , i.e. O.I., price, and volume.
When it comes to the technical approach, there are four different areas.
* 1) price charts and their patterns
* 2) methods that follow trends
* 3) analysis of character of market
* 4) structural theories.
Various methods for charting are available. The following are the most popular :
* a. bar charts for high/low/close each day
* b. point and figure methodology
* c. closing prices and their moving average
The lists of approaches taken to technical analysis can be cataloged by the following technical approaches .
* 1) board or tape reading
* 2) analysis of price charts - which includes
* a. the price and its trends
* b. support as well as resistance
* c. consolidation ( continuation and reversal )
* d. price patterns and formations
* e. the measurement rules
* f. wave theory
* 3) open interest and volume analysis
* 4) other technical indicators including the following:
* a. measure of the relative performance
* b. studying the periodic price performance
* c. contrary opinion and opinion survey
This will be discussed later .
How The Foreign Exchange Marketplace Can Be Valuable For You Posted By: Johnathan Silverstone
Today, I will share with some true discoveries, especially if you know nothing about financial marketplaces. More precisely, I'm going to tell you how you can profit from financial marketplaces without investing a lots of money and without taking big and incredible risks. First, what we will dig deeper below is the biggest financial marketplace on earth in terms of liquidity. The Foreign Exchange Marketplace. Why can be interesting in this article is a quick overview and possibilities about some professional tools you can use at home without big efforts to win trades and finally to make some recurrent money. Here, you will learn something that can bring you a new revenue 100% legally if take the time to test.
The big picture is: Forex market is the place where currency of one land is traded for currency of another land. These trades happen 24/5 from Monday to Friday with transactions of $3 trillion every single day! This is by far the biggest and most active financial markets on the planet... without all the risks of stocks and bonds.
An automatic Forex trading software will permit you to profit and make a bundle from the Forex market without having to be an expert or knowing everything in trading.
During tough time, automatic Forex trading software should focus on small movements in the market. The robot places sell orders as well and capitalize on falling market movements. Here's the deal: you earn a new strong and durable income in every market condition with a very little risk and an powerful 90%-95% of winning trades.
And when I say you profit, I mean you start make a little fortune today not 3 months from now. Here's just a sample of what you can achieve, and who was achieved by beginners, as you will see in details later: $500 Turning Into $1,100- in 2 Short Months, $2,500 Turning Into $8,700 in 45 Days, $5,100 Turning Into $25,100 in 30 Days.
You have to do it to believe it.
The automatic Forex system is by far the easiest and fastest tool to make money online because its truly automatic. You dont have to open a retail store, invest in furnitures, and create a customer list or sending tons of emails to an old list of names. Easy money, Trust me.
You know it's really simple, here are the steps to follow:
Install the forex system on you computer in under 5 minutes with no special parameter to enter. You just have to click your mouse, fire it up, go to have some rest or sleep and collect cash the day after.
It's like this with no surprise and you won't miss any single profitable trade because it's on autopilot. In other terms, you launch correctly your computer and it helps you win trade after after and in the end of the month, you make a profit. Yes, it can be a small profit but on average and on one full year, you can easily reach a 4 or 5 digits.
This is a very rare opportunity for you to experience what others will just dream about to steal money from financial marketplaces. Find out your your best forex trading software if you want to jump into this kind of job at home.
Learn Options Trading To Be Successful In This World Posted By: Tariq Ghazi
It is essential to learn options trading to be successful in options trading. It is the best thing to be done in stock market. If you are wondering what option trading is, read on. Options trading is a contract whose economic value is gained from underlying assets like goods, stocks, currencies futures and ETF bonds. In this dealing, an options contract will offer you the power to sell or purchase the underlying assets at a particular price which is called as the strike price. You have to do this before a certain set day and this is called as the exercise date. Paying a small price which is known as the premium is the last step.
Options trading can be split up into two constituents - Calls and Puts. The call achievements are your right and not the responsibility to purchase assets with a small premium. You should keep in mind the market position and then you can either utilise the privilege or allow the call to expire. So if you feel that stock ABC which is priced at $30 now will go up to $70 in the next two months, you can make a purchase of a two months call on the stock ABC and the strike price will be $30. The time frame for an options contract can be anywhere from a month to three years. LEAPS are long term options contracts and have a time frame of three years. They are just like other options contracts, the only deviation being the long expiry period.
It is crucial that smart traders are retained at the helm of this trading. Options should be dealt by them to avoid risks and make it remunerative. If you are experienced, this can be remunerative but if not you may lose the investment that you have made. This kind of trading is inherently changeable and many who are naive in this trading do not realise that. They have not only price volatility but also time volatility.
So before you jump into this it is essential to learn options trading. Do not commit if you have not got enough training in option trading. Ignorance will endanger your position and this can be a hazard to your investment. You might encounter heavy losses as time is a crucial component in option trading.
An investment in ETF is the best thing to do. This is a sure shot as it is betting on a sector and not on any individual security. Options can be unsafe so check before you invest. This is more so as they come with a time window before they pass. The volatility of time is a very critical factor which you should remember. When you learn this trading you will know what to do in such instances. There are various web sites where you can search to learn options trading. This will to a great extent cut dangers and you will be able to make sound profits.
The Proper Use Of Forex Signal In Forex Trading Posted By: roman sadowski
The possibility of achieving high rates of return when trading forex market attracts many investors who, in the short term you would like to earn big money. There are investors; able in a few months to multiply 5-10 times their forex trading capital, but they are quite rare.
Forex trading provides many investment opportunities but also poses a high level of risk. On the one hand, many web platforms offer very high leverage (1:100, 1:200, and more). At 1:100 leverage. To open the position of 100K euro a deposit a hundred times smaller, amounting to a thousand euros is enough. Average daily change rate of the euro in the first half of 2009 amounted to 2 cents. During the day we can count on earnings of up to 100%
On the other hand, high leverage is dangerous as the market might turn against us. Some investors make a crucial mistake and do not take into account the possibility of loss. A series of losses might occur even to the most professional forex investors. Your account can be left destroyed if you dont use leverage in proper way. The most common mistake we make when trading forex signal is opening too large positions. The analysis is not everything
Many investors believe that a good enough knowledge of forex signal technical analysis will provide the tools to achieve high profits. They rarely draw attention to other aspects such as the development of a forex signal system of investment transactions, cash management and control of very strong emotions. These elements are as important as good knowledge of technical analysis.
Creating a forex signal system leads to the fact that the investment process becomes more objective. Managing money is speaking briefly opened the volume control position in relation to our capital, and minimizing the risks associated with investing. Finally, it is very important psychological factor. Using high financial leverage delivers a lot of emotions; such forex signal trading requires great discipline and strong nerves.
Investment principles
We invest in the forex markets in order to win. From this it follows that the guiding principle of any investor should be to protect the capital. Unfortunately, most forget about it. This is what experienced traders differ from the average investor is:
1. The ability of cut early losses, while the average investor often leads to the fact that they take huge proportions.
2. Acceptance of large profits, While the average satisfied by a small profit.
3. Control risk in a single transaction the risk is issued a small proportion (2-3%) of capital available for the game on the market. Many investors consider this to be too cautious and risk much more (10-20% or more).
4. Patient seeking opportunities in the market, the search of such transactions for which the ratio of profit / risk is at least 3:1.
Truncate loss
Many experienced forex traders note that it is more important to close position than open it. Skilful closing position allows to avoid large losses, and achieve high profits.The ability of cut losses quickly is more important than the acceptance of large profits on the grounds that even one or two large losses can lead to the end of the game on the market.
The result of the first two factors is that an experienced investor receives a positive long-term rate of return (the sum of profits is greater than the losses). For the average investor usually occurs in the long term negative rate of return. After a few successful transactions come one or two that can ruin the account.
In a single transaction, we cannot exceed the loss of more than 2-3% of the capital. Risking in a single transaction 25% of the capital is too much streatch for the trading account and after two losses can leave us with only half the capital. Recovering is then very difficult and often impossible.
Beware of false signals
The forex signal trading is also dangerous due to false signals (no forex signal system on the market does not give 100% efficiency). Often, having an open long position in any currency pair of the market can go back quite strongly. Leverage the large (and often too large position) means that cannot withstand the voltage and the position is closed at a loss.
It is also important to understand what is happening on the charts. For analyzing currency markets are not required sophisticated technical analysis tools. Often very effective is playing an important support and resistance levels and the elimination of Fibonacci. Puncture important support (resistance) often evokes strong movements in the market. Skillful entry in the position where the market is dispersed, so after a valid signal, can reduce the risk of loss. Often, however, investor interferes' and try to anticipate the important signals, or to hunt for the turning points in the market. The use of such a strategy, sooner or later leads to losses.
Forex Trading Strategic Planning Posted By: Clifford McHanter
When we talk on forex knight rider there is always a corresponding forex trading strategies which became the key to successful forex trading or what we call online currency trading. Eventually this specific knowledge on forex trading strategies can give us the difference between a profit and a loss and it is therefore applicable that you should fully understand the different strategies used in the online currency trading.
It is very important in the different strategies on forex trading the difference from stock and using the forex trading strategies. This will give you more advantages and will help you realize even greater profits in the short term. There is also wide range of forex trading strategies available to investors and one of the most useful of among these forex trading strategies is a strategy known as leverage.
The forex trading strategy is also designed to allow online currency traders to gain more funds than are deposited and by using this forex trading strategy that you can even maximize the forex trading benefits. Using this strategies you can assure that you an utilize as much as 100 times the amount in your deposit account against any forex trade which will make backing higher yielding transactions even easier and therefore allowing better results in your forex trading. You must always make sure that this forex trading strategies must have a good forex trading strategic planning so that this will greatly make you a benefit and profit.
The leverage forex trading strategies must be used on a regular basis and allows investors to take advantage of short term fluctuations I the forex market. The applied forex trading strategies is must be always given emphasis so that the effects of fluctuations is the lower effect.
The Stop loss order is another forex trading strategy that is commonly used. This forex trading strategy is used to protect investors and it creates a predetermined point at which the investors will not trade. The used of this online currency strategy is make sure the investors to minimize losses. This strategy can however be a backfire and the investors can run the risk of shopping their forex trading which could actually go to higher and it really is up to the individual trader to choose whether or not to use this forex trading strategy.
Also the automatic entry encoder is another forex trading strategies that is commonly used and this strategy is used to allow investors to enter into forex trading when the price is right for them. The price is predetermined and once reached the investor will automatically enter into the trading.
These forex trading strategies are designed to help all our investors to get the most from their forex trading and help to minimize their losses. As mentioned earlier knowledge of these forex trading strategies is vital if you wish to be successful in forex trading.
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Mid-week Forex Trading Outlook- Negative Usd Sentiment Posted By: John Bland
Jan 12 ( Global-View ) Heading into the mid-week period, the USD is looking decidedly heavy. It appears that EURUSD bottomed late last week on the back of the poorer than forecast employment data. Now the USDJPY has unexpectedly turned south even after new Finance Minister Kan seemed to send signals that a 95.00 level in the pair is what official Japan would like to see.
We take the wishes of Japanese officials seriously in forex because they usually get what they want over time. They have considerable financial resources at their disposal to make things happen. Japan also usually tends to favor a weak forex policy to help exporters, such as the auto industry do well. We have heard that the industry foreign exchange rate target levels for Japanese automakers are USDJPY 95 to 105. Current forex trading circumstances are difficult with the USDJPY heading down decisively while our fundamental side expects the JPY to weaken. In this environment, we like the idea of stepping aside until the technicals come into line with the fundamentals for this currency pair.
This is not a week marked by a lot of news on the fundamental side. This suggests two things: (1) the technicals are in control and (2) traders are likely to revert to the equity to USD (negative to the USD) trade because it works, not because it makes sense.
We've noted recently that momentum traders have been moving into the long EURUSD trade. With momentum traders now short USD, they will be looking for news and/or price action that will support their positions. Markets has been influenced by the softer than expected U.S. January jobs data released last Friday, but that news is starting to get a little stale by now. The next block of key data this week looks to be retail sales and weekly jobless figures on Thursday. St. Louis Fed Governor Bullard reinforced yesterday that U.S. rates could stay low for an extended period of time. Thus the USD has lost its interest rate support for now. The yield on the 2-yr note, which is a useful forecaster of near-term Fed policy for the next 24 months, has fallen again today to 0.91%, -2bps. Two-year note differentials are good leading indicators of future exchange rate developments.
As noted in our weekend analysis, weakness in the U.S. and Europe seems likely to persist as these economies work their way through the aftermath of the real estate bust and the credit issues such created. On the other hand, developing markets in the Far East continue to perform well fueled in large part by demand out of China. China allowed its one-year bill rate to creep higher again today and raised bank reserve requirements.
Today sees key trade figure data releases from the U.S. and Canada. Check on the forex forum for up-to-date market developments and trading ideas. Also see the ECONOMIC CALENDAR for upcoming forex market events.
Finding The Best Forex Signals Posted By: Mercy
Making an informed decision when you try to find Forex trading software is difficult when faced with thousands of available applications. Each application is developed by individual algorithms, based on criteria that are not universal. In other words, each company selling Forex trading software developed it independently. This allows the client system that adequately interpret, in a sea of many that are inadequate. Short go back to the old methods of manual trading, Forex traders should look for the next performance that is. This will determine which application best supports the highest standards buyer with the ability to Forex trading signals to determine and minimize the risk of losing money.
Find an application that provides Forex trading signals with live results. It is likely companies will brag about the testing of software to back results. This information is not sufficient to determine if a system is useful. The presence of live performance is an important indicator in determining whether the system is really worth and which the best Forex signals. Live results are synchronized with a community of international banks, allowing users to more sources. Other useful products include not using dual insight in determining the forecast.
Look how fast the Forex signal is sent. Users must be able to quickly analyze information about appropriate performance throughout the world. This includes information that the trader on the current status of the market for an efficient turnaround time helps in making an informed interpretation of trade and professional Forex signals. This information should be easy and fairly easy to interpret at first use of the system. This is very important indication of the liquid state of Forex trading and the ability to make money.
This Funny Thing Called Money Posted By: Sudhakar Ram
Imagine that the official length of a meter changed day to day 80 centimeters today, for example, and 115 centimeters tomorrow. And that every country had its own measure of length say the meter in India and the yard in the US and the conversion rate between the yard and the meter again varied from day to day. This confusing jumble is what we have been living with for the past 38 years with one of the most important facets of our lives money.
Being in a global business where more than 90% of our revenues come from outside India, the company that I run bore the brunt of these vagaries last year. We were suddenly poorer by more than $25 million dollars (almost 10% of our revenues), just because the pound sterling eroded in value against the US dollar. While our revenue in the UK grew in pound sterling (something our UK teams were proud of), it declined significantly in dollar terms (which made our CFO quite unhappy).
Our modern currency and exchange rate system was agreed upon by 44 countries in 1944. All currencies pegged their values against the US dollar, and the US government agreed to exchange dollars for gold at a standard rate of US $35 per ounce. In 1971, President Nixon took the US off the gold standard, leaving every currency literally floating with no inherent value.
Money, our measure of value, was left with neither constancy nor consistency. Instead of being worth something real a certain amount of gold the worlds dollars, pounds, pesos, rupees and other national currencies were worth only was someone was willing to pay for them in another currency.
That all happens today on the international foreign currency exchange, a vast market that operates around the clock around the world and produces trillions in profits for banks and their traders. Under the guise of providing liquidity and price discovery, banks and other financial institutions set arbitrary values on the different currencies and then profit by buying and selling currencies as the prices shift up or down.
Why should a loaf of bread or a textbook cost more in one country that another? The International Monetary Fund uses an index indicating Purchasing Power Parity, which compares the value of world currencies in the real world. The PPP shows how some currencies are undervalued against others not because they are really worth less, but because bankers and traders say they are.
A key premise we want to debate is whether we, as humanity, are valuing the truly valuable. The question now is whether the way we measure value has any basis? What would the world be like if currencies were actually valued according to their Purchasing Power Parity?
Will the world be a better place if we had a single global currency similar to the gold standard of the past or the Euro of recent times? These are but a few questions that we will dialog on this site.
Usdbot Review- Can This Forex Trading Robot Really Make You Money? Posted By: Raghav Mitra
There are hundreds of suggestions, opinions and information given in the USDBot review. Though, this robot has been released recently, the success rate of this USDBot has made people very much interested in buying it and the market value is also increasing gradually. Now let me answer to the question asked by many people, Can forex trading robots really make you money? The answer is definitely yes, because it has been used by many and proved it self to be a successful robot. It is used to trade millions of dollars, which made forex an easy task to all the traders.
Check USDBot Forex Trading Robot
USDBot is a forex trading robot which is an automated forex robot system. As we know, most of them are interested in foreign exchange, especially trading with US Dollar. For such people this robot is the best choice. USDBot has been developed after a prolonged research and testing. This robot does all the work; I mean currency trading by it self without the interference or help of humans. One can find all the necessary information and advice given by many people across the globe in USDBot review, where the information is given by those who have already purchased it and are currently using it. This robot is developed by using the latest updated technology with skill and expertise.
I am very sure about the USDBot review, and what ever you have heard in its favor till now is definitely true. Do not wait anymore and think of it, buy it and experience the success in forex trading. You will be one of the luckiest to buy it. I promise you that, you will be the next first person to write a very good USDBot review. The happiest thing is about its cost, as it is very affordable to buy.
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