2009 has arrived, hopefully we have all learned from the experiences of 2008. The greatest thing we take from 2008 is the learning experience. We should all make sure that we are starting off this year with some rules to ensure our success no matter what the market conditions serve us up.
If you want to succeed in Forex, you need to experience what your doing and do it right. This is not like going up on a bike and starting to cycle. It's more like get in the driver's seat of a motorcar with an teacher at her side, help them understand the rules of the road while moving safely through the traffic. successful traders live by the 'road rules and avoid heading in the wrong way for access to the examples of the past, sometimes yes, sometimes more.When you get a chance to go to a seminar where the success of Forex traders are talking about, jump on the opportunity to learn all the details on what led to their succeeder. Meanwhile, follow these guidelines to get the engine and mind into the busy road of exchange operations.
i) Advice. In That Respect are thousands of people who have gone before and not so much the succeeder or seen a amount of both. Read books, collect information, the formation of free trial. The more you know and understand about the foreign exchange, the better their potential for success.
ii). Not enticed to trade more than they can afford. Forex is dangerous and even the most seen brokers and traders may have unforeseen losses. The main trouble is not going beyond their means and then risk turning a loss the money needed for life, either now or in the future.
iii). It is not used outsmart the market. Interpreting and forecasting of trends in the movement is something that even the professionals and had to spend years, if not decades, fathoming. Always sell to markets that are not performing and which are signs of weakness. Trying to be intuitive and make rash predictions only lose money.
iv). I understand that in world is just a game. It may seem like a wrong comment, but it is necessary to obtain results that are not too serious. Considering that the next one million $s because the man has only one triumph, and feelings can lead to more skills that you become the next Pedro Pinch cent. Have the high and low trying to avoid.
v). Draft victory away. Whatever happens in the short term must be good for the long term. Low may help you understand where it has failed, while high can help you determine what to duplicate next season. Trading in the Forex-market, you will see a multitude of changes in the market on a daily basis. What really matters is the long-term results. You must keep Chipping away from them and reinvesting its "champion" toward greater succeeder.
vi). Ending loss positions. Not continually throw money into a hard trade is expected to improve. Probably not. experience out while you can. Are you sure you lose money, but the loss of "some" is better than losing everything.
vii). Be controlled. When you finish your homework, stick to your system. Do not try to outdo yourself for being cocky and throwing more money into the market and just watch closely.
viii). Keep a cool brain during services. Before making a transaction, you use and the assessment to decide what to do.
When trading begins, it may be attractive to include the flow of adrenaline and do more than what was planned. Stick to the plan and avoid trying to do under pressure.
Friday, October 30, 2009
Why do people flounder in the forex market ?
1. They put off getting a broker too long and then often make a bad choice.
2. They don't do any research or engage in education and therefore end up gambling.
3. They clutter up informative blogs and forums with their incessant whines about how forex is a scam and can anyone lend them $20 because they are good for it.
4. They are often emotional about trades and will either get too excited after a good trade or try to take revenge on the market after a bad loss.
Does this look like a successful traders mindset to you? Of course it isn't. Are you guilty of any of these things? It isn't my money you are gambling away. "But i thought forex is investing not gambling?" Thank you! I don't gamble in forex, i invest, many other traders i know invest as well. Whats the difference? Education my friend, education. We know what we are doing, and make educated decisions about where we want our money, a forex gambler wakes up in the morning and just decides then and there where he is going to flush away some more money. They don't research, they don't even know what a chart looks like, they just go with uneducated gut feelings.
But let's stop talking about forex gamblers before i have a stroke, what about successful traders?
1. They research brokers and then choose one and stick to it until the broker gives them reason not to.
2. They are always learning. What is a better indicator to use? What have i done wrong in the last week? This is the kind of thing that sharpens their trading sword so sharp it could cut space and time.
3. They don't post often, they might not ever post on a forum or blog.
4. They keep their cool. They know that a win can turn into a loss and the other way around within the next 5 minutes. They have the experience and they have already set up their trades to accomodate for a turn in fortune. They are in control. Well mostly.
So the main point of all this text is to realize that if you can't even bother having a shower when you wake up in the morning, how are you ever going to be successful in something as demanding, but equally as rewarding as forex?
2. They don't do any research or engage in education and therefore end up gambling.
3. They clutter up informative blogs and forums with their incessant whines about how forex is a scam and can anyone lend them $20 because they are good for it.
4. They are often emotional about trades and will either get too excited after a good trade or try to take revenge on the market after a bad loss.
Does this look like a successful traders mindset to you? Of course it isn't. Are you guilty of any of these things? It isn't my money you are gambling away. "But i thought forex is investing not gambling?" Thank you! I don't gamble in forex, i invest, many other traders i know invest as well. Whats the difference? Education my friend, education. We know what we are doing, and make educated decisions about where we want our money, a forex gambler wakes up in the morning and just decides then and there where he is going to flush away some more money. They don't research, they don't even know what a chart looks like, they just go with uneducated gut feelings.
But let's stop talking about forex gamblers before i have a stroke, what about successful traders?
1. They research brokers and then choose one and stick to it until the broker gives them reason not to.
2. They are always learning. What is a better indicator to use? What have i done wrong in the last week? This is the kind of thing that sharpens their trading sword so sharp it could cut space and time.
3. They don't post often, they might not ever post on a forum or blog.
4. They keep their cool. They know that a win can turn into a loss and the other way around within the next 5 minutes. They have the experience and they have already set up their trades to accomodate for a turn in fortune. They are in control. Well mostly.
So the main point of all this text is to realize that if you can't even bother having a shower when you wake up in the morning, how are you ever going to be successful in something as demanding, but equally as rewarding as forex?
Tuesday, October 20, 2009
Speculative commodity
THERE IS no harm in following the path of fast runners and movers unless one has to take care about one’s own requirements and strengths coupled with weaknesses. See, whether there is any real need for Indian economy to have such a speculative Commodity Market Model in current scenario. Today, this is not only harming the interest of a common man but also making it a tough job for the Government to get the prices of all essential commodities under a check.
Excuses are many. But who are to be blamed at a first hand should be analysed. What Indian policy makers and intellectuals had in question while inching towards the economic system of Western economies, especially USA or say capitalist economy system, is not clear even after a journey of about two decades of economic reforms.
On industrial front, there have been more acquisitions on foreign lands in last five years than any big establishments within the country by Indian private sector corporate giant. The country has merely turned into a marketing hub for products or services provided by foreign companies. Tele-callers’ centres and BPOs were emerged among the majority job providers. Here, the basic question is what went wrong to that industrialisation spree, which gathered momentum in early 90s? Just in ten years, India’s many industrial units turned into marketing agents for the products and services of so called multinational companies. In absence of any strong industrial base, how can one get assured a sustainable job security within the country?
In the name of economic reforms, the country has got a prize of new field for new generation to work ie capital market or rather say money market. Besides stock market, this includes bullion market, forex market and a big name also joined in recent years, is commodity market.
As far as stock market activities were concerned, it could be justified to some extent, mainly on the grounds of industrialisation. To establish any industrial unit, there is a requirement of huge finances. That finances can be in the shape of equity or debts. As majority Indians were having a habit to keep their funds more safely in home lockers than in banks, debts always be a costly affairs for Indian Industries. Stock market came as a ready blood bank for such industries’ those had an efficiency to do miracles with available funds. Over the years, stock markets had also won the confidence of investors.
However, if one moved back to early nineties, the experience for hard-earned money savers was not any good. In the name of economic reforms and irrespective to its repercussions at medium run, the stock market activities had stolen all supports from Government. Suddenly, the stock market activities saw a big support and turned to a golden hen for all tom-dick-Harry. The act without homework was ultimately resulted into a multi-thousand crores financial-cum-stock market scam. As it was not a normal practice in India, our policy makers justified it as a first hand economic reform experience.
Excuses are many. But who are to be blamed at a first hand should be analysed. What Indian policy makers and intellectuals had in question while inching towards the economic system of Western economies, especially USA or say capitalist economy system, is not clear even after a journey of about two decades of economic reforms.
On industrial front, there have been more acquisitions on foreign lands in last five years than any big establishments within the country by Indian private sector corporate giant. The country has merely turned into a marketing hub for products or services provided by foreign companies. Tele-callers’ centres and BPOs were emerged among the majority job providers. Here, the basic question is what went wrong to that industrialisation spree, which gathered momentum in early 90s? Just in ten years, India’s many industrial units turned into marketing agents for the products and services of so called multinational companies. In absence of any strong industrial base, how can one get assured a sustainable job security within the country?
In the name of economic reforms, the country has got a prize of new field for new generation to work ie capital market or rather say money market. Besides stock market, this includes bullion market, forex market and a big name also joined in recent years, is commodity market.
As far as stock market activities were concerned, it could be justified to some extent, mainly on the grounds of industrialisation. To establish any industrial unit, there is a requirement of huge finances. That finances can be in the shape of equity or debts. As majority Indians were having a habit to keep their funds more safely in home lockers than in banks, debts always be a costly affairs for Indian Industries. Stock market came as a ready blood bank for such industries’ those had an efficiency to do miracles with available funds. Over the years, stock markets had also won the confidence of investors.
However, if one moved back to early nineties, the experience for hard-earned money savers was not any good. In the name of economic reforms and irrespective to its repercussions at medium run, the stock market activities had stolen all supports from Government. Suddenly, the stock market activities saw a big support and turned to a golden hen for all tom-dick-Harry. The act without homework was ultimately resulted into a multi-thousand crores financial-cum-stock market scam. As it was not a normal practice in India, our policy makers justified it as a first hand economic reform experience.
Forex Trading Currency Online
Things You Should Know About Forex Trading
How difficult is it to make money trading the Forex market? How much time does it take to actually be able to make a living trading the Forex market? These and other important aspects of trading are to be discussed in this article.
Trading the Forex market has many benefits over other financial markets, among the most important are: superior liquidity, 24hrs market, better execution, and others.
Traders and investor see the Forex market as a new speculation or diversifying opportunity because of these benefits. Does this mean that it is easy to make money trading the Forex Market? Not at all.
Forex brokers agree that 90% of traders end up losing money, 5% of traders end up at break even and only 5% of them achieve consistent profitable results. With these statistics shown, I don’t consider trading to be an easy task. But, is it harder to master any other endeavor? I don’t think so, consider musicians, writers, or even other businesses, the success rates are about the same, there are a whole bunch of them who never got to the top.
Now that we know it is not easy to achieve consistent profitable results, a must question would be, Why is it that some traders succeed while others fail to trade successfully in the Forex market? There is no hard answer to this question, or a recipe to follow to achieve consistent profitable results. What we do know is that traders that reach the top think different. That’s right, they don’t follow the crowd, they are an independent part of the crowd.
A few things that separate the top traders from the rest are:
Education : They are very well educated in the matter; they have chosen to learn every single and important aspect of trading. The best traders know that every trade is a learning experience. They approach the Forex market with humility, otherwise the market will prove them wrong.
Forex trading system : Top traders have a Forex trading system. They have the discipline to follow it rigorously, because they know that only the trades that are signaled by their system have a greater rate of success.
Price behavior : They have incorporated price behavior into their trading systems. They know price action has the last word.
Trading psychology : They are aware of every psychological issue that affects the decisions made by traders. They have accepted the fact that every individual trade has two probable outcomes, not just the winning side.
Money management : Avoiding the risk of ruin is a primary subject to the best traders. After all, you cannot succeed without funds in your trading account.
These are, among others, the most important factors that influence the success rate of Forex traders.
We know now that it is not easy to make money trading the Forex market, but it is possible. We also discussed the most important factors that influence the rate of success of Forex traders. But, how much time does it take to have consistent profitable results?
It is different from trader to trader. For some, it could take a life time, and still don’t get the desired results, for some others, a few years are enough to get consistent profitable results. The answer to this question may vary, but what I want to make clear here is that trading successfully is a process, it’s not something you can do in a short period of time.
How difficult is it to make money trading the Forex market? How much time does it take to actually be able to make a living trading the Forex market? These and other important aspects of trading are to be discussed in this article.
Trading the Forex market has many benefits over other financial markets, among the most important are: superior liquidity, 24hrs market, better execution, and others.
Traders and investor see the Forex market as a new speculation or diversifying opportunity because of these benefits. Does this mean that it is easy to make money trading the Forex Market? Not at all.
Forex brokers agree that 90% of traders end up losing money, 5% of traders end up at break even and only 5% of them achieve consistent profitable results. With these statistics shown, I don’t consider trading to be an easy task. But, is it harder to master any other endeavor? I don’t think so, consider musicians, writers, or even other businesses, the success rates are about the same, there are a whole bunch of them who never got to the top.
Now that we know it is not easy to achieve consistent profitable results, a must question would be, Why is it that some traders succeed while others fail to trade successfully in the Forex market? There is no hard answer to this question, or a recipe to follow to achieve consistent profitable results. What we do know is that traders that reach the top think different. That’s right, they don’t follow the crowd, they are an independent part of the crowd.
A few things that separate the top traders from the rest are:
Education : They are very well educated in the matter; they have chosen to learn every single and important aspect of trading. The best traders know that every trade is a learning experience. They approach the Forex market with humility, otherwise the market will prove them wrong.
Forex trading system : Top traders have a Forex trading system. They have the discipline to follow it rigorously, because they know that only the trades that are signaled by their system have a greater rate of success.
Price behavior : They have incorporated price behavior into their trading systems. They know price action has the last word.
Trading psychology : They are aware of every psychological issue that affects the decisions made by traders. They have accepted the fact that every individual trade has two probable outcomes, not just the winning side.
Money management : Avoiding the risk of ruin is a primary subject to the best traders. After all, you cannot succeed without funds in your trading account.
These are, among others, the most important factors that influence the success rate of Forex traders.
We know now that it is not easy to make money trading the Forex market, but it is possible. We also discussed the most important factors that influence the rate of success of Forex traders. But, how much time does it take to have consistent profitable results?
It is different from trader to trader. For some, it could take a life time, and still don’t get the desired results, for some others, a few years are enough to get consistent profitable results. The answer to this question may vary, but what I want to make clear here is that trading successfully is a process, it’s not something you can do in a short period of time.
Foreign Exchange
For businesses or governments that trade billions of dollars, even small changes in the exchange rate become significant.
When the United States dollar (symbol: USD) becomes stronger, then foreign goods and services become cheaper, and goods and services from the United States will become more expensive. Consequently, imports to the United States will increase and exports will decrease.
When the dollar becomes weaker with respect to other currencies, then the opposite happens: goods and services from the United States become cheaper, thereby increasing exports, and foreign goods and services will become more expensive, thereby lessening imports.
Thus, the trade balance of any country is largely determined by the value of the domestic currency in relation to other currencies.
It would seem logical that if the dollar, for instance, weakens, the U.S. trade balance will improve, as exports would rise and imports would decrease. However, the U.S. trade balance usually worsens for a few months.
Most import/export orders are taken months in advance. Immediately after a currency’s value drops, the volume of imports remains about the same, but the prices in terms of the home currency rise. On the other hand, the value of the domestic exports remains the same, and the difference in values worsens the trade balance until the imports and exports adjust to the new exchange rates. This can be represented graphically by the J-Curve:
When the United States dollar (symbol: USD) becomes stronger, then foreign goods and services become cheaper, and goods and services from the United States will become more expensive. Consequently, imports to the United States will increase and exports will decrease.
When the dollar becomes weaker with respect to other currencies, then the opposite happens: goods and services from the United States become cheaper, thereby increasing exports, and foreign goods and services will become more expensive, thereby lessening imports.
Thus, the trade balance of any country is largely determined by the value of the domestic currency in relation to other currencies.
It would seem logical that if the dollar, for instance, weakens, the U.S. trade balance will improve, as exports would rise and imports would decrease. However, the U.S. trade balance usually worsens for a few months.
Most import/export orders are taken months in advance. Immediately after a currency’s value drops, the volume of imports remains about the same, but the prices in terms of the home currency rise. On the other hand, the value of the domestic exports remains the same, and the difference in values worsens the trade balance until the imports and exports adjust to the new exchange rates. This can be represented graphically by the J-Curve:
Forex Trading System and Systems
A forex trading system can give you all the free time you need to devote to analysis. This way you don't have to spend the whole day monitoring the market to find changes. A good automatic forex trading system can actually trade better than the majority of traders, because it's not influenced by emotions. You can also trade faster using software based systems.
Below is a list of the currently best automatic forex trading system packages available. From beginner to expert trader, these packages were strickly designed to make you money easily, quickly and mostly stress free.
FAP TURBO | FX HOSTER | FX AUTOPILOT | FOREX KILLER | FX AUTOMONEY
These programs have gone through significant performance upgrades and enhancements. These constant improvements of the currency software trading systems has increased there performance to extremely high levels making them more profitable than ever for the user of these products.
We have researched, tested and reviewed 100's of Forex Training Courses and Software Systems. We kept the best and eliminated the rest for you to examine.
COMPLETE AUTOMATED
While other Expert Advisor vendors just give you the EA and send you on your way, Halcyon Forex offers you another option.
A professionally installed and configured automated trading solution build by the experts at Halcyon Forex allows you to skip the complicated setup and ongoing maintenance while taking advantage of this amazing and tangible new technology with precision and confidence. Free yourself from your emotions and trading indecision and begin trading with absolute discipline.
WE ARE NOT ACCEPTING NEW CUSTOMERS AT THIS TIME!
Benefits
Complete Solution includes the Expert Advisor software, a VPS server, professional setup and ongoing maintenance and support
Skip the complicated setup and ongoing maintenance
Run your Automated Trading Terminal in the best possible environment
Turn off your home or work computer and let our private server farm do the heavy lifting for you.
Web-accessible status page with up to the minute account information
OK to host third party EAs (optional)
Generous discounts for existing customers!
Below is a list of the currently best automatic forex trading system packages available. From beginner to expert trader, these packages were strickly designed to make you money easily, quickly and mostly stress free.
FAP TURBO | FX HOSTER | FX AUTOPILOT | FOREX KILLER | FX AUTOMONEY
These programs have gone through significant performance upgrades and enhancements. These constant improvements of the currency software trading systems has increased there performance to extremely high levels making them more profitable than ever for the user of these products.
We have researched, tested and reviewed 100's of Forex Training Courses and Software Systems. We kept the best and eliminated the rest for you to examine.
COMPLETE AUTOMATED
While other Expert Advisor vendors just give you the EA and send you on your way, Halcyon Forex offers you another option.
A professionally installed and configured automated trading solution build by the experts at Halcyon Forex allows you to skip the complicated setup and ongoing maintenance while taking advantage of this amazing and tangible new technology with precision and confidence. Free yourself from your emotions and trading indecision and begin trading with absolute discipline.
WE ARE NOT ACCEPTING NEW CUSTOMERS AT THIS TIME!
Benefits
Complete Solution includes the Expert Advisor software, a VPS server, professional setup and ongoing maintenance and support
Skip the complicated setup and ongoing maintenance
Run your Automated Trading Terminal in the best possible environment
Turn off your home or work computer and let our private server farm do the heavy lifting for you.
Web-accessible status page with up to the minute account information
OK to host third party EAs (optional)
Generous discounts for existing customers!
Trade Inside A
Small time speculators and investors weren't allowed to try their hand at investing in foreign exchange (or Forex - which is trading foreign currencies).
Because the minimum transaction sizes and strict financial requirements were so steep, Forex trading was mostly left to banks and major currency dealers... who were the only ones who could take advantage of the incredible liquidity and strong trending nature of Forex trading.
New technology has allowed foreign exchange market brokers to break down the barriers and let smaller traders have a piece of the action.
It's not the same as trading in stocks or futures, but with some guidance, you too can jump into this never-ending bull market. That's why I decided to create...
Greetings Friend!
If you don't take advantage of the Forex market now, you'll hate yourself later.
Currency trading is always considered a bull market. Why? Because the currencies always trade against one another. If one currency isn't doing as well, that means another currency is doing that much better.
In the Forex market, there is always a bull market trading opportunity for the smart trader.
"Give Me 60 Minutes And I'll Give You A (Detailed) Guided Tour Of The Forex Market!"
The Forex market is different than with stocks and futures (often for the better). If you're ready to take on currency exchange, you're going to need a crash course in how things work in this neck of the woods.
"See How Easily You Can Start Investing In Forex Trades - The Never Ending-Bull Market!"
Unlike the stock exchange, the Forex market is a 24-hour market. Which means no waiting to take advantage of profitable market conditions. No waiting for an "opening bell" to start the exchange.
And their are other differences as well. When you invest in the Forex market, you are investing in the most liquid market in the world. Which means there are minimal rules as to when you can enter or pull out of the market.
My membership site will teach you all the differences you need to know about the Forex exchange, before you start trading. Like the higher leverage you'll hold, information about the Inter-Bank market that runs behind the scenes of Forex trading.
Want to eliminate any rookie mistakes from your Forex trading adventures?
You can start by finding the right broker. I'll help you evaluate what type of broker you should be looking for, and when he or she is offering you a good deal or not (they're not all the same).
My membership site will give you a crash course in Forex trading. So you can hit the market running, eliminate rookie mistakes, and make smart decisions as you invest. When there's money on the line, making a small investment to protect a big investment only makes sense.
Once you start trading currencies, you'll be happy to know you invested $9.97 in a special membership site that let you in on the inner workings of the Forex market.
Inside my membership site, "ForexTradingTipsAndSecrets" you'll learn what makes this unique market tick.
...here is just SOME of the information you will find inside:
14 reasons to pick forex over futures and stocks.
5 things to look for in a forex broker: should you stay with him or kick him to the side (some are better than others).
How to easily spot a broker you should stay clear of (you'll make more money somewhere else).
5 fundamental indicators to predict a currency's long-term trends.
4 technical indicators analysts use to judge price trends.
The smart trader's way of perfecting a strategy before putting their money on the line.
The secret to using the "stop-loss" function effectively.
The inside scoop on how forex spreads operate - and what your broker should be doing to maximize value.
46 successful trading tips you MUST read before you enter the forex market.
How setting goals will help you achieve (measurable) success - and 4 characteristics ever goal you set should have.
Why the best traders don't "quit while they're ahead" and let their profits run.
The secret to lowering your trading costs (the way a serious investor would).)
Where to find an automatic execution tool to streamline your trading activities.
9 tools to help you keep a close eye on the market.
8 types of tools that will help to make you a more successful trader.
Because the minimum transaction sizes and strict financial requirements were so steep, Forex trading was mostly left to banks and major currency dealers... who were the only ones who could take advantage of the incredible liquidity and strong trending nature of Forex trading.
New technology has allowed foreign exchange market brokers to break down the barriers and let smaller traders have a piece of the action.
It's not the same as trading in stocks or futures, but with some guidance, you too can jump into this never-ending bull market. That's why I decided to create...
Greetings Friend!
If you don't take advantage of the Forex market now, you'll hate yourself later.
Currency trading is always considered a bull market. Why? Because the currencies always trade against one another. If one currency isn't doing as well, that means another currency is doing that much better.
In the Forex market, there is always a bull market trading opportunity for the smart trader.
"Give Me 60 Minutes And I'll Give You A (Detailed) Guided Tour Of The Forex Market!"
The Forex market is different than with stocks and futures (often for the better). If you're ready to take on currency exchange, you're going to need a crash course in how things work in this neck of the woods.
"See How Easily You Can Start Investing In Forex Trades - The Never Ending-Bull Market!"
Unlike the stock exchange, the Forex market is a 24-hour market. Which means no waiting to take advantage of profitable market conditions. No waiting for an "opening bell" to start the exchange.
And their are other differences as well. When you invest in the Forex market, you are investing in the most liquid market in the world. Which means there are minimal rules as to when you can enter or pull out of the market.
My membership site will teach you all the differences you need to know about the Forex exchange, before you start trading. Like the higher leverage you'll hold, information about the Inter-Bank market that runs behind the scenes of Forex trading.
Want to eliminate any rookie mistakes from your Forex trading adventures?
You can start by finding the right broker. I'll help you evaluate what type of broker you should be looking for, and when he or she is offering you a good deal or not (they're not all the same).
My membership site will give you a crash course in Forex trading. So you can hit the market running, eliminate rookie mistakes, and make smart decisions as you invest. When there's money on the line, making a small investment to protect a big investment only makes sense.
Once you start trading currencies, you'll be happy to know you invested $9.97 in a special membership site that let you in on the inner workings of the Forex market.
Inside my membership site, "ForexTradingTipsAndSecrets" you'll learn what makes this unique market tick.
...here is just SOME of the information you will find inside:
14 reasons to pick forex over futures and stocks.
5 things to look for in a forex broker: should you stay with him or kick him to the side (some are better than others).
How to easily spot a broker you should stay clear of (you'll make more money somewhere else).
5 fundamental indicators to predict a currency's long-term trends.
4 technical indicators analysts use to judge price trends.
The smart trader's way of perfecting a strategy before putting their money on the line.
The secret to using the "stop-loss" function effectively.
The inside scoop on how forex spreads operate - and what your broker should be doing to maximize value.
46 successful trading tips you MUST read before you enter the forex market.
How setting goals will help you achieve (measurable) success - and 4 characteristics ever goal you set should have.
Why the best traders don't "quit while they're ahead" and let their profits run.
The secret to lowering your trading costs (the way a serious investor would).)
Where to find an automatic execution tool to streamline your trading activities.
9 tools to help you keep a close eye on the market.
8 types of tools that will help to make you a more successful trader.
What is a forex trading system?
A forex trading system is a set of indicators and commands that are supposed to be executed for a profit on the forex market. These systems are developed with knowledge in statistics and historical market behavior.
What should a good forex system have?
1. Proof - when developing a system, it's important to see whether it would have worked in the past. This is a crucial step in developing a system, since if it does not work on past data, it will probably not work on future data.
2. Reason - a good system should have a reason behind its mechanics. Although there are some systems that have weird, yet working logic, most systems need to have a good reason for its inner workings.
3. Ability to work on all common market conditions - good forex trading systems need to work on most market conditions: up, down, sideways, slow days, and fast days. A system that works only in one direction or under one condition may become useless when the market conditions change, and in the forex market those conditions change rapidly.
4. Technical support - common scam systems used to be sold with no technical support. If the user got stuck, it was his own problem. A good trading system has a good support support system behind it to answer any question and solve any problem that may be encountered.
What should a good forex system have?
1. Proof - when developing a system, it's important to see whether it would have worked in the past. This is a crucial step in developing a system, since if it does not work on past data, it will probably not work on future data.
2. Reason - a good system should have a reason behind its mechanics. Although there are some systems that have weird, yet working logic, most systems need to have a good reason for its inner workings.
3. Ability to work on all common market conditions - good forex trading systems need to work on most market conditions: up, down, sideways, slow days, and fast days. A system that works only in one direction or under one condition may become useless when the market conditions change, and in the forex market those conditions change rapidly.
4. Technical support - common scam systems used to be sold with no technical support. If the user got stuck, it was his own problem. A good trading system has a good support support system behind it to answer any question and solve any problem that may be encountered.
Trading Currency
Wednesday, March 4, 2009
Foreign Exchange Currency Trading System
Trading Currency
Foreign Exchange Currency Trading System - Selecting the Fast Forex Profit Systems
By Nidhi Bajoria
exchange-currency-rate
A brief summary of the Foreign Exchange market will inform stakeholders that it’s vital to own the finest Currency Trading System to penetrate the Forex industry. But what is the best Forex Trading System? How can traders choose the right one for you?
In every Forex transactions and dealings, traders need to fully consider the facets of the market and weigh data in every angle.
This is because a trader can quickly be at lost with all the specifics and details that need to be taken into consideration before making the deal thus spoiling all knowledge and techniques that the Trading System installed on the traders.
There is a lot of Forex Currency Trading System in the market. You can be a member of the Forex Brotherhood to explore your research about the best trading system for you.
The right Trading System for you is the one that can enhance your skills regarding charts and graphs, increase your knowledge about the market and improve your techniques in perceiving the everyday course of the market.
You also want a currency trading system that doesn’t contain difficult jargons or does not require skills in programming. The simplest trading system can be the best for you as it allows you to grow strategies that can be beneficial in your transactions.
A Forex trading System is an important resource for traders and investors in the Forex market. And finding a good one is an investment that can change the financial aspect in your life.
I personally started out with this remarkable and easy to use automated trading software named Forex-Brotherhood. And amazingly, it made my work so simpler and make my Forex trading so hassle free that now I Literally earn money on auto pilot after 1-2 months of set up. You can Check this and some other great software and it reviews.
Ivybot changes all this.
If you’ve been around the Forex market, then there’s no doubt you’ve heard of the Fap Turbo system. This Forex robot has turned thousands of ordinary people into successful traders. However, to remain successful, these traders did need to work at finding the proper settings for each changing market condition. There are many discussions in the Fap Turbo forum about what settings to use and when.
Released for a limited time on July 28th 2009, Ivybot is the latest and by far the best forex robot available today. It is actually updated by professional traders without you having to touch it. This trading system architecture is very similar to how a professional hedge fund works. They update your trading system depending on market conditions. One big issue with Forex robots is that they can’t always react to every market condition, however, if you have a constantly evolving trading algorithm you can do very wellIf you want to run a Forex robot, then you must absolutely have a Forex VPS. What is a Forex VPS? A Forex VPS is a solution to a problem that many automatic traders have. The problem is how do you keep your Forex robot running 24 hours a day without the computer crashing and missing trades? Some robots even have programmed stops as opposed to set stops which means if your robot was ever down and misses a stop, you could lose a lot of money.
Trying to run your home computer 24 hours a day so that your Forex robot can trade properly is an almost impossible task. The wife needs the computer, the kids want the computer, the power goes out – there are numerous reasons why it is very difficult to run a Forex robot on a home computer. This is where a Forex VPS can solve your problem.
A Forex VPS is an online server that is specifically configured to run MetaTrader 4 all day everyday with 99.9% uptime. I have searched the Internet and I have only found two quality Forex hosters. The rest really aren’t even worth mentioning, they lack the professionalism that these two companies provide
Stock Swing Trading Charts
Our swing trading charts are based on the swing identification techniques made popular by William Dunnigan in his book One-Way Formula for Trading in Stocks and Commodities.
Unlike bar charts, these swing trading charts only show the pivot points of significant highs and lows. The high points are in green and lows in red. You can click on the points to see a display of the date it occurred, the value and rate per day of movement to that level. Up trends are identified by higher swing highs and higher swing lows. Down trends are just the reverse.
Also in this section you will find the following charts types. Click on these charts to see values.
Volatility Chart - these charts show volatility along with stock close prices
Option Implied Volatility Charts
6 Day Stock Historical Volatility
10 Day Stock Historical Volatility
20 Day Stock Historical Volatility
100 Day Stock Historical Volatility
Put/Call Ratio Charts - the put/call ratio is a contarian indicator. It signals a buy on a high value and a sell on a low value. On each chart there is a plot of buy/sell areas based on these highs and lows. You can use the standard, at-the-money, or weighted ratios.
Put/Call Volume Charts - shows the Put and Call volume ratio which is volume/200day average volume. You can use the standard, at-the-money, or weighted ratios.
Option and Stock Volatility Information
Here you will find the extremes reports listed below. This data can give you an indication of which options you should consider watching and trading. Options usually go to these extreme level for some significant reason that should be investigated to give you ideas of how to take advantage of the news. This data is only available to subscribers and is invaluable to option trading.
Implied and Historical Volatility Extremes Reports
Put/Call Ratio Extremes Reports
Put and Call Volume Extremes Reports
Stock Splits - Mergers and Acquisitions
In this section you will find information on pending and past stock splits, mergers and acquisitions, and distributions. These are all events that can impact both trade selection and management. This data is made available by many different exchanges, but we have collected it in one location for your convenience
Foreign Exchange Currency Trading System
Trading Currency
Foreign Exchange Currency Trading System - Selecting the Fast Forex Profit Systems
By Nidhi Bajoria
exchange-currency-rate
A brief summary of the Foreign Exchange market will inform stakeholders that it’s vital to own the finest Currency Trading System to penetrate the Forex industry. But what is the best Forex Trading System? How can traders choose the right one for you?
In every Forex transactions and dealings, traders need to fully consider the facets of the market and weigh data in every angle.
This is because a trader can quickly be at lost with all the specifics and details that need to be taken into consideration before making the deal thus spoiling all knowledge and techniques that the Trading System installed on the traders.
There is a lot of Forex Currency Trading System in the market. You can be a member of the Forex Brotherhood to explore your research about the best trading system for you.
The right Trading System for you is the one that can enhance your skills regarding charts and graphs, increase your knowledge about the market and improve your techniques in perceiving the everyday course of the market.
You also want a currency trading system that doesn’t contain difficult jargons or does not require skills in programming. The simplest trading system can be the best for you as it allows you to grow strategies that can be beneficial in your transactions.
A Forex trading System is an important resource for traders and investors in the Forex market. And finding a good one is an investment that can change the financial aspect in your life.
I personally started out with this remarkable and easy to use automated trading software named Forex-Brotherhood. And amazingly, it made my work so simpler and make my Forex trading so hassle free that now I Literally earn money on auto pilot after 1-2 months of set up. You can Check this and some other great software and it reviews.
Ivybot changes all this.
If you’ve been around the Forex market, then there’s no doubt you’ve heard of the Fap Turbo system. This Forex robot has turned thousands of ordinary people into successful traders. However, to remain successful, these traders did need to work at finding the proper settings for each changing market condition. There are many discussions in the Fap Turbo forum about what settings to use and when.
Released for a limited time on July 28th 2009, Ivybot is the latest and by far the best forex robot available today. It is actually updated by professional traders without you having to touch it. This trading system architecture is very similar to how a professional hedge fund works. They update your trading system depending on market conditions. One big issue with Forex robots is that they can’t always react to every market condition, however, if you have a constantly evolving trading algorithm you can do very wellIf you want to run a Forex robot, then you must absolutely have a Forex VPS. What is a Forex VPS? A Forex VPS is a solution to a problem that many automatic traders have. The problem is how do you keep your Forex robot running 24 hours a day without the computer crashing and missing trades? Some robots even have programmed stops as opposed to set stops which means if your robot was ever down and misses a stop, you could lose a lot of money.
Trying to run your home computer 24 hours a day so that your Forex robot can trade properly is an almost impossible task. The wife needs the computer, the kids want the computer, the power goes out – there are numerous reasons why it is very difficult to run a Forex robot on a home computer. This is where a Forex VPS can solve your problem.
A Forex VPS is an online server that is specifically configured to run MetaTrader 4 all day everyday with 99.9% uptime. I have searched the Internet and I have only found two quality Forex hosters. The rest really aren’t even worth mentioning, they lack the professionalism that these two companies provide
Stock Swing Trading Charts
Our swing trading charts are based on the swing identification techniques made popular by William Dunnigan in his book One-Way Formula for Trading in Stocks and Commodities.
Unlike bar charts, these swing trading charts only show the pivot points of significant highs and lows. The high points are in green and lows in red. You can click on the points to see a display of the date it occurred, the value and rate per day of movement to that level. Up trends are identified by higher swing highs and higher swing lows. Down trends are just the reverse.
Also in this section you will find the following charts types. Click on these charts to see values.
Volatility Chart - these charts show volatility along with stock close prices
Option Implied Volatility Charts
6 Day Stock Historical Volatility
10 Day Stock Historical Volatility
20 Day Stock Historical Volatility
100 Day Stock Historical Volatility
Put/Call Ratio Charts - the put/call ratio is a contarian indicator. It signals a buy on a high value and a sell on a low value. On each chart there is a plot of buy/sell areas based on these highs and lows. You can use the standard, at-the-money, or weighted ratios.
Put/Call Volume Charts - shows the Put and Call volume ratio which is volume/200day average volume. You can use the standard, at-the-money, or weighted ratios.
Option and Stock Volatility Information
Here you will find the extremes reports listed below. This data can give you an indication of which options you should consider watching and trading. Options usually go to these extreme level for some significant reason that should be investigated to give you ideas of how to take advantage of the news. This data is only available to subscribers and is invaluable to option trading.
Implied and Historical Volatility Extremes Reports
Put/Call Ratio Extremes Reports
Put and Call Volume Extremes Reports
Stock Splits - Mergers and Acquisitions
In this section you will find information on pending and past stock splits, mergers and acquisitions, and distributions. These are all events that can impact both trade selection and management. This data is made available by many different exchanges, but we have collected it in one location for your convenience
Best Way To Automate Forex Trading
I have never traded a forex strategy live using any advanced automated methods. At the most, I’ve placed a limit order. Most, if not all of my experience has been with expert advisors in Metatrader.
I realize more than ever that if I could automate my strategies, this may take me to the next level of trading and keep me more involved in the market. At this point, I need the motivation. The subject of automated trading has always interested me but my issue has always been with trusting a broker and the platform with a live account using an expert advisor. Therefore I’m calling on everyone who has experience with automated trading to share your experiences. If you’ve used Metatrader, have you found success with any particular brokers? I know there are other automated trading software available that mostly allow trading via an FXCM API but are they any good? I know Oanda also has an API but it costs about $600/mo. If you could, please send any experiences you have to my email address at rich@forexproject.com and based on what comes in, I’ll put the information together and post it here. Thanks.
Filed Under: Investing and Trading
Tagged: august 2008, Automated FOREX Trading, forex robot, Forex Trading, FXCM, Investing and Trading, oanda
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I realize more than ever that if I could automate my strategies, this may take me to the next level of trading and keep me more involved in the market. At this point, I need the motivation. The subject of automated trading has always interested me but my issue has always been with trusting a broker and the platform with a live account using an expert advisor. Therefore I’m calling on everyone who has experience with automated trading to share your experiences. If you’ve used Metatrader, have you found success with any particular brokers? I know there are other automated trading software available that mostly allow trading via an FXCM API but are they any good? I know Oanda also has an API but it costs about $600/mo. If you could, please send any experiences you have to my email address at rich@forexproject.com and based on what comes in, I’ll put the information together and post it here. Thanks.
Filed Under: Investing and Trading
Tagged: august 2008, Automated FOREX Trading, forex robot, Forex Trading, FXCM, Investing and Trading, oanda
Similar Posts:
Looking For MQL Coder
Help! Need New Broker
FXCM to Offer Metatrader
Automated Trading Championship
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The first step is always the hardest in any endeavor and its success or failure can dictate our entire future thinking the project which can be unfortunate if the first step goes awry. Getting started trading online can be very scary for a beginner, the time and money investment with so much uncertain outcome puts many off or makes newcomers very tentative and looking for a soft start to help them along. This is not a bad idea per se but what most people will look for is some sort of training manual or an expert to tell them what to do or a simulator to practice on. Online trading course, trading seminars or online paper trading in other words.
Just to define these terms quickly for beginners.
online trading course -
Fairly simple, this is a course made some self proclaimed expert on how to trade online, quality can vary however and is often very impersonal or relies on a lot of assumed knowledge. While some can be excellent picking the good from the bad is problematic but if you find one that works for you can be less time consuming and cheaper than the next type.
Trading seminar -
Seminars can range from very large expensive shows to smaller more personal meetings usually headed by a successful trader with some sales flair. While you can usually check the pedigree of the speaker easily seminars are time consuming and often impersonal, not to mention sometimes ridiculous costs. Some people can learn this way but many can not.
Online paper trading -
Paper trading is the act of pretending to invest money and calculating the outcomes. It is a good way to practice trading without investing anything and can show you many errors you can make along the way without it affecting your bank account. The downside to paper trading is can take a very long time and you still will not learn many key points an expert may be able to teach you.
Now obviously you can do all three of but these is also so much a thing as over learning something and you may waste a huge amount of time you could be making money doing this. So for a beginner where should you start?
First I suggest you look at your life, priorities, learning trends and money of course. Pick something that is best for you, if you are already revved up and want to get straight into it you may want a course or get into the vibe at a seminar, for those who are more cautious by nature a trial run with paper trading might get you into it more but I would not focus too much on that. IF money is an issue the seminars may be right out of the question however as they can be prohibitively expensive. The course has the advantage that you can always reference it again however but quality issues.
Most people getting started trading online in my opinion would benefit from an online trading course and doing a limited amount of paper trading to practice the things learned in their course. While trading seminars will work for some people the downsides to them can be off putting and the learning style is an acquired taste to many. Just remember a wise man learns from mistakes ... but a clever man learns from the mistakes of others and their successes. You can be wise and clever with a mixed approach as long as you can learn independently and can take a few hits even when the real money comes into play. Good luck and good trading!
Ready to start that first step? Made your decision on what help you need to get started? Well STOP right now before you waste you money and time! Click here to find out the BEST way to get started online trading!
http://financialfixes.blogspot.com/2007/11/my-personal-adventures-in-trading.html
Article Source: http://EzineArticles.com/?expert=Michael_Porteous
Just to define these terms quickly for beginners.
online trading course -
Fairly simple, this is a course made some self proclaimed expert on how to trade online, quality can vary however and is often very impersonal or relies on a lot of assumed knowledge. While some can be excellent picking the good from the bad is problematic but if you find one that works for you can be less time consuming and cheaper than the next type.
Trading seminar -
Seminars can range from very large expensive shows to smaller more personal meetings usually headed by a successful trader with some sales flair. While you can usually check the pedigree of the speaker easily seminars are time consuming and often impersonal, not to mention sometimes ridiculous costs. Some people can learn this way but many can not.
Online paper trading -
Paper trading is the act of pretending to invest money and calculating the outcomes. It is a good way to practice trading without investing anything and can show you many errors you can make along the way without it affecting your bank account. The downside to paper trading is can take a very long time and you still will not learn many key points an expert may be able to teach you.
Now obviously you can do all three of but these is also so much a thing as over learning something and you may waste a huge amount of time you could be making money doing this. So for a beginner where should you start?
First I suggest you look at your life, priorities, learning trends and money of course. Pick something that is best for you, if you are already revved up and want to get straight into it you may want a course or get into the vibe at a seminar, for those who are more cautious by nature a trial run with paper trading might get you into it more but I would not focus too much on that. IF money is an issue the seminars may be right out of the question however as they can be prohibitively expensive. The course has the advantage that you can always reference it again however but quality issues.
Most people getting started trading online in my opinion would benefit from an online trading course and doing a limited amount of paper trading to practice the things learned in their course. While trading seminars will work for some people the downsides to them can be off putting and the learning style is an acquired taste to many. Just remember a wise man learns from mistakes ... but a clever man learns from the mistakes of others and their successes. You can be wise and clever with a mixed approach as long as you can learn independently and can take a few hits even when the real money comes into play. Good luck and good trading!
Ready to start that first step? Made your decision on what help you need to get started? Well STOP right now before you waste you money and time! Click here to find out the BEST way to get started online trading!
http://financialfixes.blogspot.com/2007/11/my-personal-adventures-in-trading.html
Article Source: http://EzineArticles.com/?expert=Michael_Porteous
Purchasing Power Parity
Purchasing Power Parity
Clinton reassures Iraq in surprise stop in Baghdad
EU’s Juncker: G7 Happy With Current Forex Levels
Forex Profit Hunter Review
Central bank says no dollar shortage
China’s top central banker sees growth recovery
Dr Pepper Snapple Swings To 4Q Loss On $696M Write-Down
Brazil Central Bank To Sell $4B In Forex Swaps Thursday
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Reporting from Baghdad — On a surprise visit to Baghdad today, U.S. Secretary of State Hillary Clinton said she is...
Forex Learn offers compare online forex brokers services for traders wanting to make speculative transactions on the exchange rate between two currencies, and get best rates from forex brokers.
Forex Learn aims to help you learn, trade and invest in the forex market and act as a forex guide, which will help you. Forex Learn provide a wide range of information (news, tips, advice, articles, books and tools) for all levels of traders and investors.
Here you will learn more in detail about the basic methods and working methods in the currency market. You will get acquainted with tools of the market, learn to analyze events of a world scale and more correctly to use them in the trading strategy.
Clinton reassures Iraq in surprise stop in Baghdad
EU’s Juncker: G7 Happy With Current Forex Levels
Forex Profit Hunter Review
Central bank says no dollar shortage
China’s top central banker sees growth recovery
Dr Pepper Snapple Swings To 4Q Loss On $696M Write-Down
Brazil Central Bank To Sell $4B In Forex Swaps Thursday
Insure4USA.com Provides Tips; How to Save Money on Car Insurance
Obama Says He Wouldn’t Accept Geithner’s Resignation
At Citigroup, a Shake-Up in Ma
Dollar In Partial Recovery From Post-FOMC Rout
Forex and Dow Jones recommended levels
Forex reserves level reaches $39.3 billion as of February
Daily Forex Market Summary
Reporting from Baghdad — On a surprise visit to Baghdad today, U.S. Secretary of State Hillary Clinton said she is...
Forex Learn offers compare online forex brokers services for traders wanting to make speculative transactions on the exchange rate between two currencies, and get best rates from forex brokers.
Forex Learn aims to help you learn, trade and invest in the forex market and act as a forex guide, which will help you. Forex Learn provide a wide range of information (news, tips, advice, articles, books and tools) for all levels of traders and investors.
Here you will learn more in detail about the basic methods and working methods in the currency market. You will get acquainted with tools of the market, learn to analyze events of a world scale and more correctly to use them in the trading strategy.
Broco Trader (MetaTrader4)
Broco Trader terms Broco TraderForex specificationCFD futures specificationSpecifications of USD stocksSpecifications of CFD futures RusSpecifications of Russian stocksSpecifications of indexes
What
Broco Trader was constructed on the basis of the most popular Meta Trader 4 terminal.
The Broco Trader platform provides a complete trading experience with access to all financial markets and over 500 diverse financial tools — from Forex to indexes, futures CFDs and stocks.
Sign up and for a free forex demo account Metatrader and become a global forex trader (forex currency trader). Our demo forex trading platform (based on forex metatrader) will help improve you knowledge base to become a successful forex trader.
For whom
Broco Trader is the universal platform fitting both beginner traders and experienced users who developed their own trading strategies. For those who:
prefer minimum price for entering the market;
set continuous development and self–improvements as their goal in trading;
strive for getting maximum opportunities;
prefer non–aggressive trading style and has long–term intentions;
How it works
Interface of trading platform is customizable, one can set their personal profile according to individual requirements for a comfortable operation;
Having various types of orders which enables traders to risk or decrease risks of loosing funds;
Execution of orders is automatic and does not depend on the volume of transaction made by trader;
Facility of automation — i.e. when trader’s transactions are given to robot for execution;
Real–time changes of quotations, up–to–date news, charts for technical analysis.
To test demo-version of Broco Trader.
Why Broco Trader?
Orders for buy/sell are executed within 3 – 5 seconds;
The volume of transactions may amount to 0.01 lot, i.e. there is no need for big investments;
Deposit in different currencies — EUR, USD, RUR;
Wide array of products — Forex, currency futures CFD, indexes;
Guaranteed execution of order due to absence of Requotes;
Trading with Broco Group
Minimal deposit — $100;
Leverage — up to 1:200;
Putting order inside spread;
24–hours ’ technical support and assistance;
Information support of Clients;
Radio for traders BrocoPulse;
Regular technical overview;
Technical analysis by Trading Central in Client area;
Protection of your funds and personal information.
Frequently Asked Questions
ave a number of questions about the Forex Bling trading systems, so let us try to answer the most frequently asked questions:
Q: Can you explain why Forex Bling is so effective?
The combination of several effective trading systems inside Forex Bling is the answer. Forex Bling is the first revealed forex system that gives flexibility to forex trader to win the market in any condition. In FOREX Trading, we cannot depend on scalping trading strategy only, follow the trends alone, or working with breakout strategy solely. A good FOREX trading strategy must contain ALL OF THEM.
Q: Can you guarantee I can make money with Forex Bling?
It’s illegal to make any explicit guarantee. You need to demo it and see if this is work for you. However, from our past trading performance, we can boast up to 92.8% success rate. Check out some of the testimonials to see what other members have said about this exclusive opportunity.
Q: Why are you selling Forex Bling? Do you use it yourself?
Off course, we use it. We even use it to manage our client’s account. As you see above we have proven it works on real money account. Forex market is so huge so it doesn’t matter how many people trade using Forex Bling.
Q: I've tried many forex robots before and none of them work.
Most of the forex robots available in the market are designed to work at a specific market: a sideways, trending or ranging market. However, the market conditions are changing all the time. That’s why we develop several trading systems inside Forex Bling. When the market changes the appropriate trading system will make money than other systems. This is unlike anything you have seen or experienced before.
Q: Why do you offer Forex Bling as a subscription model?
No trading robots work forever. In fact, most of the forex robots sold last year or just 2-3 months before do not work anymore. Why? Because the forex market changing all the time. To win the market, you need a trading system that can adapt to the market condition all the time. When you subscribe to Forex Bling package, you are not only subscribing to the finest forex robot available in the market today, but also access to our continuously research and development team. We continuously tune the trading systems, change variable and parameters inside the robots to adapt new market conditions. Sometimes we even need to replace the complete trading system and give you a new better one without any additional fee.
Q: Do I need to risk money if Forex Bling works exactly as you’ve shown?
No. We always recommend testing our forex robots on a demo account first. There are many reasons like you need to learn how to use it correctly, you need to check your internet and hardware is suitable to run our robots. Also, one of the best features associated with Forex Bling is that you can trade in a demo account until you feel comfortable going live (you can open a demo account with any broker for free).
Q: How much money I need to open an account?
Forex Bling robots can be traded with big or small account size. You can start Forex Bling using $500 deposit. Some brokers even allow you to open a mini account where you can trade as little as 1 cent lot-size.
Q: Do I need to have any technical knowledge or prior forex experience to run Forex Bling?
Trading Forex with Forex Bling is very easy. All you need is capable of clicking a mouse, downloading a file and follow our guidance. We have complete tutorial videos starting how to install Metatrader, how to attach EA to the chart, how to download and install Forex Bling, etc.
If you have a computer with Internet access and can understand simple instructions then you can do this. All you need to have is the will to succeed.
Q: Does Forex Bling Robots trade every single day without I have to do anything at all?
Yes. Forex Bling wait until a trade opportunity presents itself, and it will enter the market. You do not have to do absolutely anything other than turn on your computer on, connect to the internet and run the software.
Q: How many accounts I can run using Forex Bling?
Forex Bling can be used on one live account, but you can run it on several demo accounts.
Q: Who should I contact if I need some additional help?
Our customer supports are available through ticketing support and chat. We also have a support group where Forex Bling members can help other members.
What
Broco Trader was constructed on the basis of the most popular Meta Trader 4 terminal.
The Broco Trader platform provides a complete trading experience with access to all financial markets and over 500 diverse financial tools — from Forex to indexes, futures CFDs and stocks.
Sign up and for a free forex demo account Metatrader and become a global forex trader (forex currency trader). Our demo forex trading platform (based on forex metatrader) will help improve you knowledge base to become a successful forex trader.
For whom
Broco Trader is the universal platform fitting both beginner traders and experienced users who developed their own trading strategies. For those who:
prefer minimum price for entering the market;
set continuous development and self–improvements as their goal in trading;
strive for getting maximum opportunities;
prefer non–aggressive trading style and has long–term intentions;
How it works
Interface of trading platform is customizable, one can set their personal profile according to individual requirements for a comfortable operation;
Having various types of orders which enables traders to risk or decrease risks of loosing funds;
Execution of orders is automatic and does not depend on the volume of transaction made by trader;
Facility of automation — i.e. when trader’s transactions are given to robot for execution;
Real–time changes of quotations, up–to–date news, charts for technical analysis.
To test demo-version of Broco Trader.
Why Broco Trader?
Orders for buy/sell are executed within 3 – 5 seconds;
The volume of transactions may amount to 0.01 lot, i.e. there is no need for big investments;
Deposit in different currencies — EUR, USD, RUR;
Wide array of products — Forex, currency futures CFD, indexes;
Guaranteed execution of order due to absence of Requotes;
Trading with Broco Group
Minimal deposit — $100;
Leverage — up to 1:200;
Putting order inside spread;
24–hours ’ technical support and assistance;
Information support of Clients;
Radio for traders BrocoPulse;
Regular technical overview;
Technical analysis by Trading Central in Client area;
Protection of your funds and personal information.
Frequently Asked Questions
ave a number of questions about the Forex Bling trading systems, so let us try to answer the most frequently asked questions:
Q: Can you explain why Forex Bling is so effective?
The combination of several effective trading systems inside Forex Bling is the answer. Forex Bling is the first revealed forex system that gives flexibility to forex trader to win the market in any condition. In FOREX Trading, we cannot depend on scalping trading strategy only, follow the trends alone, or working with breakout strategy solely. A good FOREX trading strategy must contain ALL OF THEM.
Q: Can you guarantee I can make money with Forex Bling?
It’s illegal to make any explicit guarantee. You need to demo it and see if this is work for you. However, from our past trading performance, we can boast up to 92.8% success rate. Check out some of the testimonials to see what other members have said about this exclusive opportunity.
Q: Why are you selling Forex Bling? Do you use it yourself?
Off course, we use it. We even use it to manage our client’s account. As you see above we have proven it works on real money account. Forex market is so huge so it doesn’t matter how many people trade using Forex Bling.
Q: I've tried many forex robots before and none of them work.
Most of the forex robots available in the market are designed to work at a specific market: a sideways, trending or ranging market. However, the market conditions are changing all the time. That’s why we develop several trading systems inside Forex Bling. When the market changes the appropriate trading system will make money than other systems. This is unlike anything you have seen or experienced before.
Q: Why do you offer Forex Bling as a subscription model?
No trading robots work forever. In fact, most of the forex robots sold last year or just 2-3 months before do not work anymore. Why? Because the forex market changing all the time. To win the market, you need a trading system that can adapt to the market condition all the time. When you subscribe to Forex Bling package, you are not only subscribing to the finest forex robot available in the market today, but also access to our continuously research and development team. We continuously tune the trading systems, change variable and parameters inside the robots to adapt new market conditions. Sometimes we even need to replace the complete trading system and give you a new better one without any additional fee.
Q: Do I need to risk money if Forex Bling works exactly as you’ve shown?
No. We always recommend testing our forex robots on a demo account first. There are many reasons like you need to learn how to use it correctly, you need to check your internet and hardware is suitable to run our robots. Also, one of the best features associated with Forex Bling is that you can trade in a demo account until you feel comfortable going live (you can open a demo account with any broker for free).
Q: How much money I need to open an account?
Forex Bling robots can be traded with big or small account size. You can start Forex Bling using $500 deposit. Some brokers even allow you to open a mini account where you can trade as little as 1 cent lot-size.
Q: Do I need to have any technical knowledge or prior forex experience to run Forex Bling?
Trading Forex with Forex Bling is very easy. All you need is capable of clicking a mouse, downloading a file and follow our guidance. We have complete tutorial videos starting how to install Metatrader, how to attach EA to the chart, how to download and install Forex Bling, etc.
If you have a computer with Internet access and can understand simple instructions then you can do this. All you need to have is the will to succeed.
Q: Does Forex Bling Robots trade every single day without I have to do anything at all?
Yes. Forex Bling wait until a trade opportunity presents itself, and it will enter the market. You do not have to do absolutely anything other than turn on your computer on, connect to the internet and run the software.
Q: How many accounts I can run using Forex Bling?
Forex Bling can be used on one live account, but you can run it on several demo accounts.
Q: Who should I contact if I need some additional help?
Our customer supports are available through ticketing support and chat. We also have a support group where Forex Bling members can help other members.
Forex Bling Expert Advisors Review
We review several some of the best expert advisors and trading systems. They need to have a good money management and a balance between risk and reward.
Our purpose is to get an ongoing basket of trading systems that produces consistent 60%-100% profit per year while maintain Minimal Risk.
We do not make aggressive trades which could ruin our capital. Most of the trading systems that we run set to 1%-3% risk per trade. Full Story
Forex Bling: Questions and Answered
Beside our Forex Bling Manual, we add some answered questions about Forex Bling in this sections.
Since we receive a lot of similar questions, from time to time we add the answer at this page, it will reduce our time answering similar questions and provide more trading support.
We divide the Q&A below into several sections:
A. COMMON [...] Full Story
Forex Bling Exclusive Report Is Now Available
Forex Bling Exclusive Report Is Now Available. We have been working almost a year in Forex Bling program.
And for the past 5 months, we show our forward performances which made every month. Full Story
Our Forex Trading Performance for July 2009
July 2009 performance explanation:
Our basket for July 2009 contains 6 trading system:
1. Freedom – Risk=1% – Start Equity: $6,274.02
2. Grid Specialist – Risk=5% – Start Equity: $26,132.91
3. Evolution – Risk=1% – Start Equity: $11,488.41
4. Thunderwind – Risk=1% – Start Equity: $10,101.96
5. Thunderbolt – Risk=5% – Start Equity: $17,988.11
6. Thunderstorm – Risk=5% – Start Equity: $14.680.68
Profit/Loss [...] Full Story
Forex Trading Performance
Our Forex Trading Performance for 2009:
August : in progress
July : +6.81%
June : +28.45%
May : +13.45%
April: +15.71%
Trading system we use so far: Freedom, Evolution, Grid Specialist, Thunderwind, Thunderbolt, Thunderstorm.
Trading system we removed: Fractals-3 (replaced with Fractals-4).
Click here for July 2009 Performance in detail.
Click here for June 2009 Performance in detail.
Click here for May 2009 [...] Full Story
Fractals New Version (Version 4.0)
Fractal Wizard EA version 4.0 – New Version.
Version 4.0 is a major upgrade for our Fractals Wizard forex expert advisor.
The profit factor and drawdown level for Fractals EA version 4.0 are better than version 3.0. Full Story
Our Forex Trading Performance for June 2009
June 2009 performance explanation:
Our basket for June 2009 contains 4 trading system:
1. Freedom - Risk=1% – Start Equity: $5,731.07
2. Fractals-3 – Risk=2% – Start Equity: $57,699.36
3. Grid Specialist – Risk=5% – Start Equity: $22,462.2
4. Evolution – Risk=1% – Start Equity: $10,896.85
5. Thunderwind – Risk=1% – [...] Full Story
Vision Pro New Development
NFA once again have new regulations for NFA brokers. The new NFA regulations now prevent you from trading like before.
What you need to do in the USA (for NFA brokers) as of July 31, 2009:
* Can’t have hedging positions, it means OCO orders ( One cancels the
Our purpose is to get an ongoing basket of trading systems that produces consistent 60%-100% profit per year while maintain Minimal Risk.
We do not make aggressive trades which could ruin our capital. Most of the trading systems that we run set to 1%-3% risk per trade. Full Story
Forex Bling: Questions and Answered
Beside our Forex Bling Manual, we add some answered questions about Forex Bling in this sections.
Since we receive a lot of similar questions, from time to time we add the answer at this page, it will reduce our time answering similar questions and provide more trading support.
We divide the Q&A below into several sections:
A. COMMON [...] Full Story
Forex Bling Exclusive Report Is Now Available
Forex Bling Exclusive Report Is Now Available. We have been working almost a year in Forex Bling program.
And for the past 5 months, we show our forward performances which made every month. Full Story
Our Forex Trading Performance for July 2009
July 2009 performance explanation:
Our basket for July 2009 contains 6 trading system:
1. Freedom – Risk=1% – Start Equity: $6,274.02
2. Grid Specialist – Risk=5% – Start Equity: $26,132.91
3. Evolution – Risk=1% – Start Equity: $11,488.41
4. Thunderwind – Risk=1% – Start Equity: $10,101.96
5. Thunderbolt – Risk=5% – Start Equity: $17,988.11
6. Thunderstorm – Risk=5% – Start Equity: $14.680.68
Profit/Loss [...] Full Story
Forex Trading Performance
Our Forex Trading Performance for 2009:
August : in progress
July : +6.81%
June : +28.45%
May : +13.45%
April: +15.71%
Trading system we use so far: Freedom, Evolution, Grid Specialist, Thunderwind, Thunderbolt, Thunderstorm.
Trading system we removed: Fractals-3 (replaced with Fractals-4).
Click here for July 2009 Performance in detail.
Click here for June 2009 Performance in detail.
Click here for May 2009 [...] Full Story
Fractals New Version (Version 4.0)
Fractal Wizard EA version 4.0 – New Version.
Version 4.0 is a major upgrade for our Fractals Wizard forex expert advisor.
The profit factor and drawdown level for Fractals EA version 4.0 are better than version 3.0. Full Story
Our Forex Trading Performance for June 2009
June 2009 performance explanation:
Our basket for June 2009 contains 4 trading system:
1. Freedom - Risk=1% – Start Equity: $5,731.07
2. Fractals-3 – Risk=2% – Start Equity: $57,699.36
3. Grid Specialist – Risk=5% – Start Equity: $22,462.2
4. Evolution – Risk=1% – Start Equity: $10,896.85
5. Thunderwind – Risk=1% – [...] Full Story
Vision Pro New Development
NFA once again have new regulations for NFA brokers. The new NFA regulations now prevent you from trading like before.
What you need to do in the USA (for NFA brokers) as of July 31, 2009:
* Can’t have hedging positions, it means OCO orders ( One cancels the
FOREX MONEY TRADING
How does forex charting software works: the forex charting software packages are used by many traders to determine the direction on any given currency pair.a lot of analytical computer based tool used to help currenct trader with the forex trading by charting the price of various currency pairs along with various indicators.There is a wide range of forex charting software, which varies in appearance and functionality. However, users should look for several things in forex charting software that will help them to get the most out of their tradingMost forex brokers are attempted to give a demo account perior to learn how its works and with the forex broker they charting software during the trial period.
The Best Forex Robot For You
Dreamstime Finding the best forex trading system is no easy task, many part time traders have spent thousands of dollars looking for best forex trading software. It's only reasonable that the best forex brokers are looking for the best forex trading systems. Have a think about that word "system". Choosing the best Forex trading software is crucial to your success.
Here are some essential factors you should be looking for before parting with your money to buy best forex training software. Consider your skill level. It is greatly essential and crucial for aspiring Forex traders as well as those professionals in the trade to be aware on how to choose the best Forex trading software to aid them in their foreign exchange activities. The best forex trading platform should not promise you are going to be rich overnight. If it does, you can ignore it totally and move on in finding another one that works best for you.
The problem with most of the robots is that they are tested with "play" accounts, combined with past results. This makes the transition to real accounts totally random, which leaves you wondering wahat are the best forex broker options. Also you might be wondering what is the optimimum method to find best forex signals. The same applies to the best forex ea. A useful idea is to check and see what others have said about the product or system.
How you you go about finding out who is the best forex broker? Find a website that does forex reviews these websites will provide you guidance and hopefully point you in the right direction. You can find daily newsletters from most of the websites with trading platforms. It’s very useful because the main objective of forex trader is to make effective trades by using all available information. The reviews are trustful and easy to read, it will help you make the right choice for your needs and temperament.
Here are some essential factors you should be looking for before parting with your money to buy best forex training software. Consider your skill level. It is greatly essential and crucial for aspiring Forex traders as well as those professionals in the trade to be aware on how to choose the best Forex trading software to aid them in their foreign exchange activities. The best forex trading platform should not promise you are going to be rich overnight. If it does, you can ignore it totally and move on in finding another one that works best for you.
The problem with most of the robots is that they are tested with "play" accounts, combined with past results. This makes the transition to real accounts totally random, which leaves you wondering wahat are the best forex broker options. Also you might be wondering what is the optimimum method to find best forex signals. The same applies to the best forex ea. A useful idea is to check and see what others have said about the product or system.
How you you go about finding out who is the best forex broker? Find a website that does forex reviews these websites will provide you guidance and hopefully point you in the right direction. You can find daily newsletters from most of the websites with trading platforms. It’s very useful because the main objective of forex trader is to make effective trades by using all available information. The reviews are trustful and easy to read, it will help you make the right choice for your needs and temperament.
Money Management
Money management is part and parcel of any trading strategy. Besides knowing which currencies to trade and recognizing entry and exit signals, the successful trader has to manage his resources and integrate money management into his trading plan. Position size, margin, recent profits and losses, and contingency plans all need to be considered before entering the market.
There are various strategies for approaching money management. Many of them rely on the calculation of core equity.
Core equity is your starting balance minus the money used in open positions. If the starting balance is $10,000 and you have $1000 in open positions your core equity is $9000.
When entering a position try to limit 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 $1000 to $3000 – preferably $1000. You do this by placing a stop loss order 100 pips (when 1 pip = $10) above or below your entry position.
As your core equity rises or falls you can adjust the dollar amount of your risk. With a starting balance of $10,000 and one 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.
By the same principal you can also raise your risk level as your core equity rises. If you have been trading successfully and made a $5000 profit, your core equity is now $15,000. You could raise your risk to $1500 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.
There are various strategies for approaching money management. Many of them rely on the calculation of core equity.
Core equity is your starting balance minus the money used in open positions. If the starting balance is $10,000 and you have $1000 in open positions your core equity is $9000.
When entering a position try to limit 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 $1000 to $3000 – preferably $1000. You do this by placing a stop loss order 100 pips (when 1 pip = $10) above or below your entry position.
As your core equity rises or falls you can adjust the dollar amount of your risk. With a starting balance of $10,000 and one 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.
By the same principal you can also raise your risk level as your core equity rises. If you have been trading successfully and made a $5000 profit, your core equity is now $15,000. You could raise your risk to $1500 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.
Forex Trading Philosophy
Many beginning FOREX traders are captivated by the allure of easy money. 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.
There are two 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 you money. FOREX traders need to have a rational trading strategy and not allow emotions to rule their trading decisions.
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? Who is successful and why are they successful? This knowledge will allow you to identify successful trading strategies and use them as models for your own.
There are 5 major groups of investors who participate in FOREX – Governments, Banks, Corporations, Investment Funds, and traders. Each group has varying objectives, but the one thing that all the 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.
This means that the trader who lacks rules and guidelines is playing a losing game. Large organizations and educated traders approach the FOREX with strategies, and if you hope to succeed as a FOREX trader you must play by the same rules.
There are two 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 you money. FOREX traders need to have a rational trading strategy and not allow emotions to rule their trading decisions.
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? Who is successful and why are they successful? This knowledge will allow you to identify successful trading strategies and use them as models for your own.
There are 5 major groups of investors who participate in FOREX – Governments, Banks, Corporations, Investment Funds, and traders. Each group has varying objectives, but the one thing that all the 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.
This means that the trader who lacks rules and guidelines is playing a losing game. Large organizations and educated traders approach the FOREX with strategies, and if you hope to succeed as a FOREX trader you must play by the same rules.
Sniper Forex System
Sniper Forex is a manual indicator system that uses a precision algorhythm to provide precise entry and exit points. It has been designed for MetaTrader mt4, a leading, widely available trading platform which you can download for free using the links we provide you on the
am a trading veteran of ten years - options, cfd's and for the last seven years, forex. I have learnt from the school of hard knocks and am now offering you the opportunity to benefit from my hard work. I too took all the courses, bought all the systems, traded demo then live, wiped out a few accounts, and experimented ad nauseum.
In my opinion you are EXTREMELY unlikely to find a better opportunity in today's marketplace, especially at the price. However, don't just take my word for it, take a look at what my customers have say:
"BTW - The performance of the indicators is amazing. I've been doing futures and options for over ten years but as I now live in Asia, staying up all night to trade is getting old now, hence looking at Forex. Looks like I've landed on my feet finding your indicators. Thanks again."
- Paul Jones in Cha Am, Thailand 16/08/2007 *
Why am I selling this? Simply put - It took me long enough to gain experience in the forex market, and more importantly cost a small fortune - if I can make a little profit helping others to become successful traders, then why not? There are plenty of unscrupulous traders and system sellers out there, if enough of us band together then perhaps we can make a difference
am a trading veteran of ten years - options, cfd's and for the last seven years, forex. I have learnt from the school of hard knocks and am now offering you the opportunity to benefit from my hard work. I too took all the courses, bought all the systems, traded demo then live, wiped out a few accounts, and experimented ad nauseum.
In my opinion you are EXTREMELY unlikely to find a better opportunity in today's marketplace, especially at the price. However, don't just take my word for it, take a look at what my customers have say:
"BTW - The performance of the indicators is amazing. I've been doing futures and options for over ten years but as I now live in Asia, staying up all night to trade is getting old now, hence looking at Forex. Looks like I've landed on my feet finding your indicators. Thanks again."
- Paul Jones in Cha Am, Thailand 16/08/2007 *
Why am I selling this? Simply put - It took me long enough to gain experience in the forex market, and more importantly cost a small fortune - if I can make a little profit helping others to become successful traders, then why not? There are plenty of unscrupulous traders and system sellers out there, if enough of us band together then perhaps we can make a difference
Forex cash detective
Today’s Wet Squirt Forex Video are Internet forex business flourishes
Internet Forex Business Flourishes by Gary Mooney With convenience and ease of online business management, more and more forms of industries have now begun to flourish all over the internet. One of the exclusive benefits of internet marketing is that we can now reach the international market at a very low cost. Numerous online business people have gone from developing their part-…
July 7th, 2009 | Tags: 3, Abunza, Adsense, Affiliate, Based, Business, Carbon, Carlton, Cash, Click-bank, Clickbank, Copy, Craig, Forex, From, Funnel, Get, Gifting, Google, Home, Internet, Jeff, Life, Make, Makers, Marketing, Maverick, Money, Online, Path, Pauls, Peoples, Pro, Program, Regenesis, Reverse, Rich, Schuck, Sheets, Shortcuts, System, The, Twitter, Unlimited, Way, Wealth, Work | Category: Squirt
Internet Forex Business Flourishes by Gary Mooney With convenience and ease of online business management, more and more forms of industries have now begun to flourish all over the internet. One of the exclusive benefits of internet marketing is that we can now reach the international market at a very low cost. Numerous online business people have gone from developing their part-…
July 7th, 2009 | Tags: 3, Abunza, Adsense, Affiliate, Based, Business, Carbon, Carlton, Cash, Click-bank, Clickbank, Copy, Craig, Forex, From, Funnel, Get, Gifting, Google, Home, Internet, Jeff, Life, Make, Makers, Marketing, Maverick, Money, Online, Path, Pauls, Peoples, Pro, Program, Regenesis, Reverse, Rich, Schuck, Sheets, Shortcuts, System, The, Twitter, Unlimited, Way, Wealth, Work | Category: Squirt
Online Forex - Forex Trading Strategie To Success
Most of us are willing make money by using Online forex market.so what we relay need and what kind of tools we need to start to make money by using forex market.well you have to a soundly based forex trading strategy.after that you will need a few simple steps to start to earn your money.
If you wont to success in online forex money trading you most know your inner understanding and in your own understand exactly to learn
your system work,and then you must learn to confidence in it or you can learn by watching other trading system.if you don't understand how your trading system will help you succeed, you won't have confidence in it which will lead to a break down of discipline if you hit a losing period
Than you must to work smart in the forex market because most of the traders believe that if we will make more effort into the forex trading strategy the more we will make money and be more rewarded for being right with your trading signal.there is other kind of trader that think that the more complicated their system is the more chance it has of succeeding.so if you will work smart you will be able to success.we need to focus on the right ares and learn them and then it will lead our trading to become successful.
If you wont to success in online forex money trading you most know your inner understanding and in your own understand exactly to learn
your system work,and then you must learn to confidence in it or you can learn by watching other trading system.if you don't understand how your trading system will help you succeed, you won't have confidence in it which will lead to a break down of discipline if you hit a losing period
Than you must to work smart in the forex market because most of the traders believe that if we will make more effort into the forex trading strategy the more we will make money and be more rewarded for being right with your trading signal.there is other kind of trader that think that the more complicated their system is the more chance it has of succeeding.so if you will work smart you will be able to success.we need to focus on the right ares and learn them and then it will lead our trading to become successful.
Wednesday, October 7, 2009
Opening A Forex Brokerage Account
Trading forex is similar to the equity market because individuals interested in trading need to open up a trading account. Like the equity market, each forex account and the services it provides differ, so it is important that you find the right one. Below we will talk about some of the factors that should be considered when selecting a forex account.
Leverage
Leverage is basically the ability to control large amounts of capital, using very little of your own capital; the higher the leverage, the higher the level of risk. The amount of leverage on an account differs depending on the account itself, but most use a factor of at least 50:1, with some being as high as 250:1. A leverage factor of 50:1 means that for every dollar you have in your account you control up to $50. For example, if a trader has $1,000 in his or her account, the broker will lend that person $50,000 to trade in the market. This leverage also makes your margin, or the amount you have to have in the account to trade a certain amount, very low. In equities, margin is usually at least 50%, while the leverage of 50:1 is equivalent to 2%.
Leverage is seen as a major benefit of forex trading, as it allows you to make large gains with a small investment. However, leverage can also be an extreme negative if a trade moves against you because your losses also are amplified by the leverage. With this kind of leverage, there is the real possibility that you can lose more than you invested - although most firms have protective stops preventing an account from going negative. For this reason, it is vital that you remember this when opening an account and that when you determine your desired leverage you understand the risks involved.
Commissions and Fees
Another major benefit of forex accounts is that trading within them is done on a commission-free basis. This is unlike equity accounts, in which you pay the broker a fee for each trade. The reason for this is that you are dealing directly with market makers and do not have to go through other parties like brokers.
This may sound too good to be true, but rest assured that market makers are still making money each time you trade. Remember the bid and ask from the previous section? Each time a trade is made, it is the market makers that capture the spread between these two. Therefore, if the bid/ask for a foreign currency is 1.5200/50, the market maker captures the difference (50 basis points).
If you are planning on opening a forex account, it is important to know that each firm has different spreads on foreign currency pairs traded through them. While they will often differ by only a few pips (0.0001), this can be meaningful if you trade a lot over time. So when opening an account make sure to find out the pip spread that it has on foreign currency pairs you are looking to trade.
Leverage
Leverage is basically the ability to control large amounts of capital, using very little of your own capital; the higher the leverage, the higher the level of risk. The amount of leverage on an account differs depending on the account itself, but most use a factor of at least 50:1, with some being as high as 250:1. A leverage factor of 50:1 means that for every dollar you have in your account you control up to $50. For example, if a trader has $1,000 in his or her account, the broker will lend that person $50,000 to trade in the market. This leverage also makes your margin, or the amount you have to have in the account to trade a certain amount, very low. In equities, margin is usually at least 50%, while the leverage of 50:1 is equivalent to 2%.
Leverage is seen as a major benefit of forex trading, as it allows you to make large gains with a small investment. However, leverage can also be an extreme negative if a trade moves against you because your losses also are amplified by the leverage. With this kind of leverage, there is the real possibility that you can lose more than you invested - although most firms have protective stops preventing an account from going negative. For this reason, it is vital that you remember this when opening an account and that when you determine your desired leverage you understand the risks involved.
Commissions and Fees
Another major benefit of forex accounts is that trading within them is done on a commission-free basis. This is unlike equity accounts, in which you pay the broker a fee for each trade. The reason for this is that you are dealing directly with market makers and do not have to go through other parties like brokers.
This may sound too good to be true, but rest assured that market makers are still making money each time you trade. Remember the bid and ask from the previous section? Each time a trade is made, it is the market makers that capture the spread between these two. Therefore, if the bid/ask for a foreign currency is 1.5200/50, the market maker captures the difference (50 basis points).
If you are planning on opening a forex account, it is important to know that each firm has different spreads on foreign currency pairs traded through them. While they will often differ by only a few pips (0.0001), this can be meaningful if you trade a lot over time. So when opening an account make sure to find out the pip spread that it has on foreign currency pairs you are looking to trade.
How to Trade Forex
Now that you know some important factors to be aware of when opening a forex account, we will take a look at what exactly you can trade within that account. The two main ways to trade in the foreign currency market is the simple buying and selling of currency pairs, where you go long one currency and short another. The second way is through the purchasing of derivatives that track the movements of a specific currency pair. Both of these techniques are highly similar to techniques in the equities market.The most common way is to simply buy and sell currency pairs, much in the same way most individuals buy and sell stocks. In this case, you are hoping the value of the pair itself changes in a favorable manner. If you go long a currency pair, you are hoping that the value of the pair increases. For example, let's say that you took a long position in the USD/CAD pair - you will make money if the value of this pair goes up, and lose money if it falls. This pair rises when the U.S. dollar increases in value against the Canadian dollar, so it is a bet on the U.S. dollar.
The other option is to use derivative products, such as options and futures, to profit from changes in the value of currencies. If you buy an option on a currency pair, you are gaining the right to purchase a currency pair at a set rate before a set point in time. A futures contract, on the other hand, creates the obligation to buy the currency at a set point in time. Both of these trading techniques are usually only used by more advanced traders, but it is important to at least be familiar with them. (For more on this, try Getting Started in Forex Options and our tutorials, Option Spread Strategies and Options Basics Tutorial.)
Types of Orders
A trader looking to open a new position will likely use either a market order or a limit order. The incorporation of these order types remains the same as when they are used in the equity markets. A market order gives a forex trader the ability to obtain the currency at whatever exchange rate it is currently trading at in the market, while a limit order allows the trader to specify a certain entry price. (For a brief refresher of these orders, see The Basics of Order Entry.)
Forex traders who already hold an open position may want to consider using a take-profit order to lock in a profit. Say, for example, that a trader is confident that the GBP/USD rate will reach 1.7800, but is not as sure that the rate could climb any higher. A trader could use a take-profit order, which would automatically close his or her position when the rate reaches 1.7800, locking in their profits.
The other option is to use derivative products, such as options and futures, to profit from changes in the value of currencies. If you buy an option on a currency pair, you are gaining the right to purchase a currency pair at a set rate before a set point in time. A futures contract, on the other hand, creates the obligation to buy the currency at a set point in time. Both of these trading techniques are usually only used by more advanced traders, but it is important to at least be familiar with them. (For more on this, try Getting Started in Forex Options and our tutorials, Option Spread Strategies and Options Basics Tutorial.)
Types of Orders
A trader looking to open a new position will likely use either a market order or a limit order. The incorporation of these order types remains the same as when they are used in the equity markets. A market order gives a forex trader the ability to obtain the currency at whatever exchange rate it is currently trading at in the market, while a limit order allows the trader to specify a certain entry price. (For a brief refresher of these orders, see The Basics of Order Entry.)
Forex traders who already hold an open position may want to consider using a take-profit order to lock in a profit. Say, for example, that a trader is confident that the GBP/USD rate will reach 1.7800, but is not as sure that the rate could climb any higher. A trader could use a take-profit order, which would automatically close his or her position when the rate reaches 1.7800, locking in their profits.
Forex and Go (Part 2)
Like with the other two PDFT strategies we saw earlier (Forex Cash Cow and Forex Runner) I will teach you step by step how to identify and place a high probability Forex Flip & Go trade. And again, as with all my strategies , Forex Flip & Go is 100% mechanical! You will not use any type of judgment or discretion in your trading. You will only learn to follow simple rules: if A = B do C!
All the strategies you will learn in Forex Trading Methods have incredible benefits that simply make them unique, the best of the best. Forex Flip & Go is no different: One of the only daytrading strategies that is capable of catching a large part of those 80-100 pip EUR/USD daily moves! Rules are 100% mechanical. You will not use any type of judgment or discretion, all your trades will be placed according to simple objective rules. This is a very important aspect of all my strategies and is one of the reasons why Forex Trading Machine traders are so successful. Large profit objectives and VERY small stop losses. This is key. As a daytrader you want to always limit your risk but at the same time you want to ride your winners and squeeze out the last available pip!
Forex Flip & Go allows you to do exactly that. In fact, in order to accomplish this objective I created a mechanism that I have not seen in any other forex daytrading strategy. You will be amazed how this small "trick" keeps you out of bad trades BEFORE you even know you are in a bad trade! Completely disclosed rules. Stop using those trading services or so called "black box" systems. Be in control of your trading. So simple to learn that a 15 year old can trade Forex Flip & Go! No indicators, no vague patterns, no pivots, nothing! Since this is a PDFT strategy you will only use the price of the currency to identify, enter and exit trades. No sitting in front of the computer all day long. Most days you will not trade more than 3 hours. Some days much less. Once 90% of traders realize the market started moving to a certain direction you will already be in the move and profiting from it. Profit objective is pre-set. This means you do not have to think and speculate where to place it. Once you enter the trade you will simply enter a "take profit" order and forget about it.
While most traders will struggle in choppy market days (and of course, lose money in the process!) Forex Flip & Go will keep you out. And much more...
All the strategies you will learn in Forex Trading Methods have incredible benefits that simply make them unique, the best of the best. Forex Flip & Go is no different: One of the only daytrading strategies that is capable of catching a large part of those 80-100 pip EUR/USD daily moves! Rules are 100% mechanical. You will not use any type of judgment or discretion, all your trades will be placed according to simple objective rules. This is a very important aspect of all my strategies and is one of the reasons why Forex Trading Machine traders are so successful. Large profit objectives and VERY small stop losses. This is key. As a daytrader you want to always limit your risk but at the same time you want to ride your winners and squeeze out the last available pip!
Forex Flip & Go allows you to do exactly that. In fact, in order to accomplish this objective I created a mechanism that I have not seen in any other forex daytrading strategy. You will be amazed how this small "trick" keeps you out of bad trades BEFORE you even know you are in a bad trade! Completely disclosed rules. Stop using those trading services or so called "black box" systems. Be in control of your trading. So simple to learn that a 15 year old can trade Forex Flip & Go! No indicators, no vague patterns, no pivots, nothing! Since this is a PDFT strategy you will only use the price of the currency to identify, enter and exit trades. No sitting in front of the computer all day long. Most days you will not trade more than 3 hours. Some days much less. Once 90% of traders realize the market started moving to a certain direction you will already be in the move and profiting from it. Profit objective is pre-set. This means you do not have to think and speculate where to place it. Once you enter the trade you will simply enter a "take profit" order and forget about it.
While most traders will struggle in choppy market days (and of course, lose money in the process!) Forex Flip & Go will keep you out. And much more...
Forex and Go (Part 1)
You already know that the forex market is a 24 hour market. But did you know that every currency pair has it's own special behavior (sort of "personality"!) throughout this 24 hour period? Well, professional traders sure know this and they exploit this characteristic of the forex market to pull in incredible profits day after day.
Now, with Forex Flip & Go (another of my PDFT day trading strategies), you can take advantage of a certain EXPLOSIVE characteristic of the EUR/USD pair (the most liquid of all currency pairs) which produces HIGH PROBABILITY/LOW RISK trades over and over again.
The EUR/USD's daily range is about 80-100 pips ($800-$1,000). As daytraders we want to catch a big portion of this daily move and we want to do it with as little risk as possible. Here is where this beautiful strategy comes to our help! The strength of the Forex Flip & Go strategy is that it catches a large part of these $1,000 swings right at the beginning of the move.Let's look at some examples so you can see exactly what I mean when I say that Forex Flip & Go catches large swings at the very beginning of the move and impressively limits risk:NOTE: Trade examples open in a new window.
Many of the best performing professional traders agree that the key to make serious money in daytrading is having small losses and large gains. That is exactly what Forex Flip & Go does, it identifies a large move at the beginning BUT if it is wrong it will get you out of the market with a minimal loss. I hope you had the chance to view the example charts I put above, they show exactly how Forex Flip & Go does an amazing job of exiting the market when it is wrong (with losses many times smaller than 10 pips!) and how it exploits large moves from beginning to end.If you are serious about being a successful forex daytrader and learning one of the best methods to consistently capture profitable trades then Forex Flip & Go is for you!
Now, with Forex Flip & Go (another of my PDFT day trading strategies), you can take advantage of a certain EXPLOSIVE characteristic of the EUR/USD pair (the most liquid of all currency pairs) which produces HIGH PROBABILITY/LOW RISK trades over and over again.
The EUR/USD's daily range is about 80-100 pips ($800-$1,000). As daytraders we want to catch a big portion of this daily move and we want to do it with as little risk as possible. Here is where this beautiful strategy comes to our help! The strength of the Forex Flip & Go strategy is that it catches a large part of these $1,000 swings right at the beginning of the move.Let's look at some examples so you can see exactly what I mean when I say that Forex Flip & Go catches large swings at the very beginning of the move and impressively limits risk:NOTE: Trade examples open in a new window.
Many of the best performing professional traders agree that the key to make serious money in daytrading is having small losses and large gains. That is exactly what Forex Flip & Go does, it identifies a large move at the beginning BUT if it is wrong it will get you out of the market with a minimal loss. I hope you had the chance to view the example charts I put above, they show exactly how Forex Flip & Go does an amazing job of exiting the market when it is wrong (with losses many times smaller than 10 pips!) and how it exploits large moves from beginning to end.If you are serious about being a successful forex daytrader and learning one of the best methods to consistently capture profitable trades then Forex Flip & Go is for you!
Forex Cash Cow Strategy
Forex Cash Cow strategy is truly amazing. I consider it by far my best PDFT swing trading strategy. This incredible system is 100% mechanical, this means it requires ABSOLUTELY NO discretion, interpretention, or judgment. You will simply learn to follow strict rules: if A = B then do C!Since it is a PDFT strategy you will not use ANY type of indicators, the only thing you will need to know is the price of the currency pair you are trading.It truly takes 1 minute per week to implement this strategy, making it perfect for people who do not have the necessary time to monitor the market. In fact, I constantly get emails from Forex Cash Cow traders who say they are making more money trading this system than at their current day jobs!Let's look at how easy it is to trade the Forex Cash Cow strategy:
STEP 1 : Every day after the end of the trading day the trader checks to see if condition one of the system has been met. No interpretation or judgment, it is either yes or no, black or white! This step takes exactly 10 seconds. If condition one has not been met, nothing happens. If met it means there could be an entry signal the next trading day (the trader already knows to what direction, long or short) and step 2 comes into play.
STEP 2 : The next day the trader simply enters three types of orders with his or her broker: a limit order for initiating the trade, a stop loss order to limit risk and a profit objective. All these three numbers are exact pre-set numbers that you will learn how to calculate in less then 10 seconds. Again, no interpretation or judgment, just follow exact rules.
STEP 3 : Wait for results!As traders say, a chart is worth 1000 words! Let's look at several examples of Forex Cash Cow trades. Simply click on the below chart images, chart will open in new window
STEP 1 : Every day after the end of the trading day the trader checks to see if condition one of the system has been met. No interpretation or judgment, it is either yes or no, black or white! This step takes exactly 10 seconds. If condition one has not been met, nothing happens. If met it means there could be an entry signal the next trading day (the trader already knows to what direction, long or short) and step 2 comes into play.
STEP 2 : The next day the trader simply enters three types of orders with his or her broker: a limit order for initiating the trade, a stop loss order to limit risk and a profit objective. All these three numbers are exact pre-set numbers that you will learn how to calculate in less then 10 seconds. Again, no interpretation or judgment, just follow exact rules.
STEP 3 : Wait for results!As traders say, a chart is worth 1000 words! Let's look at several examples of Forex Cash Cow trades. Simply click on the below chart images, chart will open in new window
Forex Trading Methods!
One of the true strength of Forex Cash Cow (and of the other 2 systems I teach in my course) is the fact that it is 100% mechanical. Traders who have been around for some time know the incredible benefits a mechanical system has over non-mechanical trading strategies.
Let's look at some of the amazing benefits of the Forex Cash Cow strategy: No interpretation or judgment required. Since this is a 100% mechanical trading strategy you will be trading completely stress free. This is key with ANY trading strategy. Human emotions is what ultimately breaks traders. With Forex Cash Cow you are guaranteed to not have this problem.Easy to follow rules. As simple as if A = B do C!Works the same for everyone who follow the exact rules (unlike non-mechanical trading methods that work for the very few, and most of the time not even that) Impressively easy to learn. Most Forex Cash Cow traders can put this amazing strategy to work the next day after learning it.
Know today if tomorrow there will be a trade. Yes! You will know a day ahead if a trade is going to be triggered or not.
No monitoring the market. Many people want to trade the forex market but simply don't have the necessary time. Now, with Forex Cash Cow you can trade even if you have a day job! It simply takes 1 minute per week to implement it.
The forex market is known for it's large price swings that when properly traded result in amazing profits. Forex Cash Cow not only trades these price swings with great success BUT it identifies only the best of the best swings, the top percent.No more buying "black box" systems or subscribing to signal providers. All the strategies rules are 100% disclosed and explained. You will have complete control over your trading.
A unique PDFT (Price Driven Forex Trading) strategy. No indicators, no vague chart patterns, no pivots, no support and resistance, no anything you have seen or read until now.And much more....!
Let's look at some of the amazing benefits of the Forex Cash Cow strategy: No interpretation or judgment required. Since this is a 100% mechanical trading strategy you will be trading completely stress free. This is key with ANY trading strategy. Human emotions is what ultimately breaks traders. With Forex Cash Cow you are guaranteed to not have this problem.Easy to follow rules. As simple as if A = B do C!Works the same for everyone who follow the exact rules (unlike non-mechanical trading methods that work for the very few, and most of the time not even that) Impressively easy to learn. Most Forex Cash Cow traders can put this amazing strategy to work the next day after learning it.
Know today if tomorrow there will be a trade. Yes! You will know a day ahead if a trade is going to be triggered or not.
No monitoring the market. Many people want to trade the forex market but simply don't have the necessary time. Now, with Forex Cash Cow you can trade even if you have a day job! It simply takes 1 minute per week to implement it.
The forex market is known for it's large price swings that when properly traded result in amazing profits. Forex Cash Cow not only trades these price swings with great success BUT it identifies only the best of the best swings, the top percent.No more buying "black box" systems or subscribing to signal providers. All the strategies rules are 100% disclosed and explained. You will have complete control over your trading.
A unique PDFT (Price Driven Forex Trading) strategy. No indicators, no vague chart patterns, no pivots, no support and resistance, no anything you have seen or read until now.And much more....!
Forex Runner
Learn how to day trade the forex market and consistently nail $200, $300 or $400 trades over and over again. Forex Runner is simply one of the best day trading systems I have ever traded. And, being one of my unique PDFT strategies, you will not use any tools or indicators to trade it, the ONLY thing you will need is the price of the currency pair.Forex Runner let's you trade 100% emotion-free since it is completely mechanical. It's rules are incredibly easy to understand, it will not take you more than one hour to learn how to trade it.
One of the amazing characteristics of Forex Runner is that it let's you trade when ever you have time. Since the forex market is a 24 hour market, you have the luxury to decide exactly when it is best for you to put Forex Runner to work.
If you have been around for some time in the trading business you know how hard it is to find a consistently profitable day trading strategy. Forex Runner was built to be consistent. Small stop losses, large profit objectives and a large percentage of winning trades makes Forex Runner one of the top performing forex trading systems.Here are some of the many benefits Forex Runner traders have:A revolutionary Price Driven Forex Trading (PDFT) strategy.
You will not use any type of indicators, identify any vague patterns, or use support or resistance levels etc. You will only use the price of the currency pair to identify, enter and profit from the trade.You will learn how to exploit the daily range of the major currency pairs.How to enter "hit and run" trades; i.e. Identify fast, enter fast and profit fast!Fully disclosed system: no need to buy, rent or subscribe to any service. You control your trading, you decide when to trade, you decide how much to trade.
So easy to learn that most of my traders (many who are completely new to forex trading) put Forex Runner to work only 1 day after learning it.
No stress, no emotions: Since Forex Runner is 100% mechanical you will only follow strict rules to identify, enter and exit trades. No interpretation or judgment what so ever (if you trade already, you most likely know the value of 100% mechanical trading)!Cheat most daytradres! While 90% of traders will identify trades only after the market started moving (and trust me, most enter as the move is ending!), you will have already identified and entered trades BEFORE the market started moving.
Be your own boss, chose when to trade. Since the forex market is active 24 hours a day, no matter what part of the world you live in you can put Forex Runner to work for you!Profit objective is pre-set. This means you do not have to think and speculate where to place it. Once you enter the trade you will simply enter a "take profit" order and forget about it.
One of the amazing characteristics of Forex Runner is that it let's you trade when ever you have time. Since the forex market is a 24 hour market, you have the luxury to decide exactly when it is best for you to put Forex Runner to work.
If you have been around for some time in the trading business you know how hard it is to find a consistently profitable day trading strategy. Forex Runner was built to be consistent. Small stop losses, large profit objectives and a large percentage of winning trades makes Forex Runner one of the top performing forex trading systems.Here are some of the many benefits Forex Runner traders have:A revolutionary Price Driven Forex Trading (PDFT) strategy.
You will not use any type of indicators, identify any vague patterns, or use support or resistance levels etc. You will only use the price of the currency pair to identify, enter and profit from the trade.You will learn how to exploit the daily range of the major currency pairs.How to enter "hit and run" trades; i.e. Identify fast, enter fast and profit fast!Fully disclosed system: no need to buy, rent or subscribe to any service. You control your trading, you decide when to trade, you decide how much to trade.
So easy to learn that most of my traders (many who are completely new to forex trading) put Forex Runner to work only 1 day after learning it.
No stress, no emotions: Since Forex Runner is 100% mechanical you will only follow strict rules to identify, enter and exit trades. No interpretation or judgment what so ever (if you trade already, you most likely know the value of 100% mechanical trading)!Cheat most daytradres! While 90% of traders will identify trades only after the market started moving (and trust me, most enter as the move is ending!), you will have already identified and entered trades BEFORE the market started moving.
Be your own boss, chose when to trade. Since the forex market is active 24 hours a day, no matter what part of the world you live in you can put Forex Runner to work for you!Profit objective is pre-set. This means you do not have to think and speculate where to place it. Once you enter the trade you will simply enter a "take profit" order and forget about it.
Factors affecting Forex trade
The value of a country's currency is influenced by a number of factors: The economics of the country, its trade deficit, political and social environment.
If the current government's deficit increases, its currency's value will fall. As the government decreases its deficit, the currency can begin to recover value and the exchange rate will become more favorable. The same relationship holds true with a country's trade deficit. If the country imports more goods and services than it exports it will have a negative influence on the currency.
Inflation lessens the ability of a unit of currency to buy less and less, so the currency loses value. If the inflation becomes rampant the currency is valued less because it's also viewed as unstable. As the rate of inflation begins to decline the currency begins to increase in value.
Politics and social changes can play havoc with the currency exchange rates. Changes in the regime that are viewed negatively can lower the value of the country's currency in the short term and continue into the long term. If the present government makes decisions that are looked at negatively it can decrease the currency value as well. The opposite can happen. Current government officials can make policy changes that are viewed positively by the rest of the world and that can increase the value of the currency.
For the United States, interest rates and the price of oil can have a major impact on the value of the US dollar.
Interest rates effect how much it's going to cost to borrow money and how much can be earned on investments. Historically if the US raises its interest rates it attracts foreign investors. Those investors have to sell their own currency in order to buy U.S. dollars to purchase treasury bonds. If the interest begins to drop, or the perception is that the rates won't rise any more, investors may purchase Euros as an alternative investment which lowers the value of the US dollar.
The United States is dependent on foreign oil production. Many US industries are dependent on oil and an increase in the price of oil means an increase in their expenses and a drop in profits. In a similar way, a country's dependency on oil influences how the country's currency is valued and will be impacted by changes in oil prices. The US's dependency on oil makes the dollar more sensitive to oil prices than countries who aren't so dependent. As the price of oil increases the value of the dollar drops.
If the current government's deficit increases, its currency's value will fall. As the government decreases its deficit, the currency can begin to recover value and the exchange rate will become more favorable. The same relationship holds true with a country's trade deficit. If the country imports more goods and services than it exports it will have a negative influence on the currency.
Inflation lessens the ability of a unit of currency to buy less and less, so the currency loses value. If the inflation becomes rampant the currency is valued less because it's also viewed as unstable. As the rate of inflation begins to decline the currency begins to increase in value.
Politics and social changes can play havoc with the currency exchange rates. Changes in the regime that are viewed negatively can lower the value of the country's currency in the short term and continue into the long term. If the present government makes decisions that are looked at negatively it can decrease the currency value as well. The opposite can happen. Current government officials can make policy changes that are viewed positively by the rest of the world and that can increase the value of the currency.
For the United States, interest rates and the price of oil can have a major impact on the value of the US dollar.
Interest rates effect how much it's going to cost to borrow money and how much can be earned on investments. Historically if the US raises its interest rates it attracts foreign investors. Those investors have to sell their own currency in order to buy U.S. dollars to purchase treasury bonds. If the interest begins to drop, or the perception is that the rates won't rise any more, investors may purchase Euros as an alternative investment which lowers the value of the US dollar.
The United States is dependent on foreign oil production. Many US industries are dependent on oil and an increase in the price of oil means an increase in their expenses and a drop in profits. In a similar way, a country's dependency on oil influences how the country's currency is valued and will be impacted by changes in oil prices. The US's dependency on oil makes the dollar more sensitive to oil prices than countries who aren't so dependent. As the price of oil increases the value of the dollar drops.
World events and wise Forex trading
Forex trading has the great potential of becoming a profitable and fulfilling career that will let you have a lifestyle that few other lucrative activities in the world can offer to people from many roads in life and without asking any of those men and women for a diploma or some special certification.
But Forex trading is not easy; it may be simple to enter and place your first trade but becoming a profitable trader is a different thing. You will need to acquire the right knowledge and techniques in order to understand and know when to enter or leave a trade always fulfilling the main objective every trader must have; making money.
There are two kinds of analysis you can perform on the Forex markets. They are known as technical analysis and fundamental analysis. It is common that traders tend to divide themselves into "technical" and "fundamentalists". Each group devoting themselves to the main tools each kind of analysis gives them.
Technical forex traders base their trading on the analysis of the charts and the number of indicators derived from the plots of price oscillations and patterns. Meanwhile Fundamentalists traders base their trading mostly on the fundamental numbers and economical indicators of countries economies. Though, even if divided, both tendencies tend to complement each other to some degree.
In this article I will place myself on the "fundamentalists" side and focus on one of the situations every forex trader must be aware of and don't let the events involved affect his trading efforts.
This risky situation is that when unprecedented chaotic world events start to develop as the trading day goes on. The power of the media (tv, internet, printed) can magnify and sometimes it may even distort the events taking place and impacting the trading journey in a significant manner. The result of this magnification and rapid diffusion of the news about the series of unfavorable events taking place is an increased atmosphere of fear, confusion and uncertainty in the trading world. And fearful traders are not prone to make the best trading choices because they have given themselves to panic and emotional reactions instead of reasoned and intelligent decisions.
If you need to have more specific examples of these kind of events you can search a bit inside your memories and consider the impact of just a few types of unfavorable chaotic world events as the political upheavals or corporate scandals of companies as; Enron, WorldCom, or of people as the case of Martha Stewart trial, etc. There is also the example of the terrorist attacks on Sep 11 in New York, March 11 in Spain, etc. Also natural disasters: tsunamis, earthquakes, floods, freezes, droughts, hurricanes along with wars can cause great disruption in a trading journey.
In short, every forex trader should be totally sure that his method of trading has built-in safe guards (stops, limit orders) to prevent a major financial loss from his trading account in case any of the unfavorable events I mentioned above ever takes place. And being realistic, many of those events will surely happen in the future.
But Forex trading is not easy; it may be simple to enter and place your first trade but becoming a profitable trader is a different thing. You will need to acquire the right knowledge and techniques in order to understand and know when to enter or leave a trade always fulfilling the main objective every trader must have; making money.
There are two kinds of analysis you can perform on the Forex markets. They are known as technical analysis and fundamental analysis. It is common that traders tend to divide themselves into "technical" and "fundamentalists". Each group devoting themselves to the main tools each kind of analysis gives them.
Technical forex traders base their trading on the analysis of the charts and the number of indicators derived from the plots of price oscillations and patterns. Meanwhile Fundamentalists traders base their trading mostly on the fundamental numbers and economical indicators of countries economies. Though, even if divided, both tendencies tend to complement each other to some degree.
In this article I will place myself on the "fundamentalists" side and focus on one of the situations every forex trader must be aware of and don't let the events involved affect his trading efforts.
This risky situation is that when unprecedented chaotic world events start to develop as the trading day goes on. The power of the media (tv, internet, printed) can magnify and sometimes it may even distort the events taking place and impacting the trading journey in a significant manner. The result of this magnification and rapid diffusion of the news about the series of unfavorable events taking place is an increased atmosphere of fear, confusion and uncertainty in the trading world. And fearful traders are not prone to make the best trading choices because they have given themselves to panic and emotional reactions instead of reasoned and intelligent decisions.
If you need to have more specific examples of these kind of events you can search a bit inside your memories and consider the impact of just a few types of unfavorable chaotic world events as the political upheavals or corporate scandals of companies as; Enron, WorldCom, or of people as the case of Martha Stewart trial, etc. There is also the example of the terrorist attacks on Sep 11 in New York, March 11 in Spain, etc. Also natural disasters: tsunamis, earthquakes, floods, freezes, droughts, hurricanes along with wars can cause great disruption in a trading journey.
In short, every forex trader should be totally sure that his method of trading has built-in safe guards (stops, limit orders) to prevent a major financial loss from his trading account in case any of the unfavorable events I mentioned above ever takes place. And being realistic, many of those events will surely happen in the future.
Online Forex Trading
Do you know what Forex trading is? Some people have heard of this type of trading, others have not. If you haven't, it might be something you are interested in trying. Forex trading stands for foreign exchange trading. What it consists of is the buying and selling of different currencies. This is done simultaneously, and there are people who make a lot of money with this kind of trading. This is apparent by the 1.9 million dollar turnover in this market that happens every day. Also a lot of it is done online. Online Forex trading is very popular.
The most common currencies to trade are the Euro and the U.S. dollar, and the U.S. dollar and the Japanese Yen. However, nearly all of the Forex trading done involves the major currencies of the world. These include the Euro, Japanese Yen, U.S. dollar, Canadian dollar, British Pound, Australian dollar, and the Swiss franc. The Forex exchange is different from other exchanges, such as the New York Stock Exchange, in that it does not have a physical location or central exchange. The exchange day begins in Sydney, then moves to Tokyo, on to London, and finally ends in New York. Each country takes the responsibility of regulating the Forex exchange activities in their own country. So there is no overall regulatory agency. However, this does not seem to be a problem and most countries do very well at overseeing Forex exchange activities.
There are a lot of things that influence the Forex rate. For instance, economic things, like interest rates and inflation, and also political things, such as political unrest in other countries and major changes in government cause up and down changes in the Forex rate. However, these things tend to be short-term, and don't affect it for long.
Online Forex trading sites are easy to find by surfing the Internet. Most of them provide a wealth of information for the first time trader. You can find out about the history of Forex trading, how to co it, tips on being successful, etc. You can also start trading with as little as $250 in your account on some sites. For anyone who is interested in currency or trading, it is something you should check out.
As with any type of trading, there are no guarantees that you will make money or that you won't make money. It is a smart choice to learn as much as you can about online Forex trading before investing any money and doing any trading. It is a fact that informed investors do better than those who don't know much about what they are trading. So get the fact before you dive in. You might just make a little money in a very interesting currency exchange.
The most common currencies to trade are the Euro and the U.S. dollar, and the U.S. dollar and the Japanese Yen. However, nearly all of the Forex trading done involves the major currencies of the world. These include the Euro, Japanese Yen, U.S. dollar, Canadian dollar, British Pound, Australian dollar, and the Swiss franc. The Forex exchange is different from other exchanges, such as the New York Stock Exchange, in that it does not have a physical location or central exchange. The exchange day begins in Sydney, then moves to Tokyo, on to London, and finally ends in New York. Each country takes the responsibility of regulating the Forex exchange activities in their own country. So there is no overall regulatory agency. However, this does not seem to be a problem and most countries do very well at overseeing Forex exchange activities.
There are a lot of things that influence the Forex rate. For instance, economic things, like interest rates and inflation, and also political things, such as political unrest in other countries and major changes in government cause up and down changes in the Forex rate. However, these things tend to be short-term, and don't affect it for long.
Online Forex trading sites are easy to find by surfing the Internet. Most of them provide a wealth of information for the first time trader. You can find out about the history of Forex trading, how to co it, tips on being successful, etc. You can also start trading with as little as $250 in your account on some sites. For anyone who is interested in currency or trading, it is something you should check out.
As with any type of trading, there are no guarantees that you will make money or that you won't make money. It is a smart choice to learn as much as you can about online Forex trading before investing any money and doing any trading. It is a fact that informed investors do better than those who don't know much about what they are trading. So get the fact before you dive in. You might just make a little money in a very interesting currency exchange.
Advantages of the Forex Market
What are the advantages of the Forex Market over other types of investments?
When thinking about various investments, there is one investment vehicle that comes to mind. The Forex or Foreign Currency Market has many advantages over other types of investments. The Forex market is open 24 hrs a day, unlike the regular stock markets. Most investments require a substantial amount of capital before you can take advantage of an investment opportunity. To trade Forex, you only need a small amount of capital. Anyone can enter the market with as little as $300 USD to trade a "mini account", which allows you to trade lots of 10,000 units. One lot of 10,000 units of currency is equal to 1 contract. Each "pip" or move up or down in the currency pair is worth a $1 gain or loss, depending on which side of the market you are on. A standard account gives you control over 100,000 units of currency and a pip is worth $10.
The Forex market is also very liquid. When trading Forex you have full control of your capital.
Many other types of investments require holding your money up for long periods of time. This is a disadvantage because if you need to use the capital it can be difficult to access to it without taking a huge loss. Also, with a small amount of money, you can control
Forex traders can be profitable in bullish or bearish market conditions. Stock market traders need stock prices to rise in order to take a profit. Forex traders can make a profit during up trends and downtrends. Forex Trading can be risky, but with having the ability to have a good system to follow, good money management skills, and possessing self discipline, Forex trading can be a relatively low risk investment.
The Forex market can be traded anytime, anywhere. As long as you have access to a computer, you have the ability to trade the Forex market. An important thing to remember is before jumping into trading currencies, is it wise to practice with "paper money", or "fake money." Most brokers have demo accounts where you can download their trading station and practice real time with fake money. While this is no guarantee of your performance with real money, practicing can give you a huge advantage to become better prepared when you trade with your real, hard earned money. There are also many Forex courses on the internet, just be careful when choosing which ones to purchase.
When thinking about various investments, there is one investment vehicle that comes to mind. The Forex or Foreign Currency Market has many advantages over other types of investments. The Forex market is open 24 hrs a day, unlike the regular stock markets. Most investments require a substantial amount of capital before you can take advantage of an investment opportunity. To trade Forex, you only need a small amount of capital. Anyone can enter the market with as little as $300 USD to trade a "mini account", which allows you to trade lots of 10,000 units. One lot of 10,000 units of currency is equal to 1 contract. Each "pip" or move up or down in the currency pair is worth a $1 gain or loss, depending on which side of the market you are on. A standard account gives you control over 100,000 units of currency and a pip is worth $10.
The Forex market is also very liquid. When trading Forex you have full control of your capital.
Many other types of investments require holding your money up for long periods of time. This is a disadvantage because if you need to use the capital it can be difficult to access to it without taking a huge loss. Also, with a small amount of money, you can control
Forex traders can be profitable in bullish or bearish market conditions. Stock market traders need stock prices to rise in order to take a profit. Forex traders can make a profit during up trends and downtrends. Forex Trading can be risky, but with having the ability to have a good system to follow, good money management skills, and possessing self discipline, Forex trading can be a relatively low risk investment.
The Forex market can be traded anytime, anywhere. As long as you have access to a computer, you have the ability to trade the Forex market. An important thing to remember is before jumping into trading currencies, is it wise to practice with "paper money", or "fake money." Most brokers have demo accounts where you can download their trading station and practice real time with fake money. While this is no guarantee of your performance with real money, practicing can give you a huge advantage to become better prepared when you trade with your real, hard earned money. There are also many Forex courses on the internet, just be careful when choosing which ones to purchase.
Forex: Dealing with your losses
One of the most important rules of Forex trading is to keep your losses as small as you possibly can. With small Forex trading losses, you can stick it out longer than those times when the market moves against you, and be well positioned for when the trend turns around. The one proven method to keeping your losses small is to set your maximum loss before you even open a Forex trading position.
The maximum loss is the greatest amount of capital that you are comfortable losing on any one trade. With your maximum loss set as a small percentage of your Forex trading effort, a string of losses won't stop you from trading for any particular amount of time. Unlike the 95% of Forex traders out there who lose money because they haven't begun to use wise money management rules to their Forex trading system, you will be ok with this money management rule.
To use as an example, If I had a Forex trading float of $1000, and I began trading with $100 a trade, it would be reasonable for me to experience three losses in a row. This would reduce my Forex trading capital to $400. It would then be decided that they're going to bet $200 on the next trade because they think they have a higher chance of winning after having lost three times already.
If that trader did bet $100 dollars on the next trade because they thought they were going to win, their capital could be reduced to $250 dollars. The chances of making money now are practically nil because I would need to make 150% on the next trade just to break even. If the maximum loss had been determined, and stuck to, they would not be in this position.
In this case, the reason for failure was because the trader risked too much money, and didn't apply good money management to the play. Remember, the goal here is to keep our losses as small as possible while also making sure that we open a large enough position to capitalize on profits and minimize losses. With your money management rules in place, in your Forex trading system, you will always be able to do this.
The maximum loss is the greatest amount of capital that you are comfortable losing on any one trade. With your maximum loss set as a small percentage of your Forex trading effort, a string of losses won't stop you from trading for any particular amount of time. Unlike the 95% of Forex traders out there who lose money because they haven't begun to use wise money management rules to their Forex trading system, you will be ok with this money management rule.
To use as an example, If I had a Forex trading float of $1000, and I began trading with $100 a trade, it would be reasonable for me to experience three losses in a row. This would reduce my Forex trading capital to $400. It would then be decided that they're going to bet $200 on the next trade because they think they have a higher chance of winning after having lost three times already.
If that trader did bet $100 dollars on the next trade because they thought they were going to win, their capital could be reduced to $250 dollars. The chances of making money now are practically nil because I would need to make 150% on the next trade just to break even. If the maximum loss had been determined, and stuck to, they would not be in this position.
In this case, the reason for failure was because the trader risked too much money, and didn't apply good money management to the play. Remember, the goal here is to keep our losses as small as possible while also making sure that we open a large enough position to capitalize on profits and minimize losses. With your money management rules in place, in your Forex trading system, you will always be able to do this.
Friday, October 2, 2009
Introduction to Trading Forex
Foreign Exchange
This short introduction explains the basics of trading Forex online, a brief explanation of the markets and the major benefits of trading Forex online. There are also two scenarios describing the implications of trading in a bear as well as a bull market to better acquaint you with some of the risks and opportunities of the largest and most liquid market in the world.
As an additional aid for those who are new to Forex, there is also a glossary at the bottom of this text which explains some of the terms used in connection with currency trading.
Overview
Foreign exchange, Forex or just FX are all terms used to describe the trading of the world's many currencies. The Forex market is the largest market in the world, with trades amounting to more than USD 3 trillion every day. Most Forex trading is speculative, with only a low percentage of market activity representing governments' and companies' fundamental currency conversion needs.
Unlike trading on the stock market, the Forex market is not conducted by a central exchange, but on the “interbank” market, which is thought of as an OTC (over the counter) market. Trading takes place directly between the two counterparts necessary to make a trade, whether over the telephone or on electronic networks all over the world. The main centres for trading are Sydney, Tokyo, London, Frankfurt and New York. This worldwide distribution of trading centres means that the Forex market is a 24-hour market.
Trading Forex
A currency trade is the simultaneous buying of one currency and selling of another one. The currency combination used in the trade is called a cross (for example, the euro/US dollar, or the GB pound/Japanese yen.). The most commonly traded currencies are the so-called “majors” – EURUSD, USDJPY, USDCHF and GBPUSD.
The most important Forex market is the spot market as it has the largest volume. The market is called the spot market because trades are settled immediately, or “on the spot”. In practice this means two banking days.
Forward Outrights
For forward outrights, settlement on the value date selected in the trade means that even though the trade itself is carried out immediately, there is a small interest rate calculation left. The interest rate differential doesn't usually affect trade considerations unless you plan on holding a position with a large differential for a long period of time. The interest rate differential varies according to the cross you are trading. On the USDCHF, for example, the interest rate differential is quite small, whereas the differential on NOKJPY is large. This is because if you trade e.g. NOKJPY, you get almost 7% (annual) interest in Norway and close to 0% in Japan. So, if you borrow money in Japan, to finance the trade and buying NOK, you have a positive interest rate differential. This differential has to be calculated and added to your account. You can have both a positive and a negative interest rate differential, so it may work for or against you when you make a trade.
Trading on Margin
Trading on margin means that you can buy and sell assets that represent more value than the capital in your account. Forex trading is usually conducted with relatively small margin deposits. This is useful since it permits investors to exploit currency exchange rate fluctuations which tend to be very small. A margin of 1.0% means you can trade up to USD 1,000,000 even though you only have USD 10,000 in your account. A margin of 1% corresponds to a 100:1 leverage (or “gearing”). (Because USD 10,000 is 1% of USD 1,000,000.) Using this much leverage enables you to make profits very quickly, but there is also a greater risk of incurring large losses and even being completely wiped out. Therefore, it is inadvisable to maximise your leveraging as the risks can be very high. For more information on the trading conditions of Saxo Bank, go to the Account Summary on your SaxoTrader and open the section entitled “Trading Conditions” found in the top right-hand corner of the Account Summary
This short introduction explains the basics of trading Forex online, a brief explanation of the markets and the major benefits of trading Forex online. There are also two scenarios describing the implications of trading in a bear as well as a bull market to better acquaint you with some of the risks and opportunities of the largest and most liquid market in the world.
As an additional aid for those who are new to Forex, there is also a glossary at the bottom of this text which explains some of the terms used in connection with currency trading.
Overview
Foreign exchange, Forex or just FX are all terms used to describe the trading of the world's many currencies. The Forex market is the largest market in the world, with trades amounting to more than USD 3 trillion every day. Most Forex trading is speculative, with only a low percentage of market activity representing governments' and companies' fundamental currency conversion needs.
Unlike trading on the stock market, the Forex market is not conducted by a central exchange, but on the “interbank” market, which is thought of as an OTC (over the counter) market. Trading takes place directly between the two counterparts necessary to make a trade, whether over the telephone or on electronic networks all over the world. The main centres for trading are Sydney, Tokyo, London, Frankfurt and New York. This worldwide distribution of trading centres means that the Forex market is a 24-hour market.
Trading Forex
A currency trade is the simultaneous buying of one currency and selling of another one. The currency combination used in the trade is called a cross (for example, the euro/US dollar, or the GB pound/Japanese yen.). The most commonly traded currencies are the so-called “majors” – EURUSD, USDJPY, USDCHF and GBPUSD.
The most important Forex market is the spot market as it has the largest volume. The market is called the spot market because trades are settled immediately, or “on the spot”. In practice this means two banking days.
Forward Outrights
For forward outrights, settlement on the value date selected in the trade means that even though the trade itself is carried out immediately, there is a small interest rate calculation left. The interest rate differential doesn't usually affect trade considerations unless you plan on holding a position with a large differential for a long period of time. The interest rate differential varies according to the cross you are trading. On the USDCHF, for example, the interest rate differential is quite small, whereas the differential on NOKJPY is large. This is because if you trade e.g. NOKJPY, you get almost 7% (annual) interest in Norway and close to 0% in Japan. So, if you borrow money in Japan, to finance the trade and buying NOK, you have a positive interest rate differential. This differential has to be calculated and added to your account. You can have both a positive and a negative interest rate differential, so it may work for or against you when you make a trade.
Trading on Margin
Trading on margin means that you can buy and sell assets that represent more value than the capital in your account. Forex trading is usually conducted with relatively small margin deposits. This is useful since it permits investors to exploit currency exchange rate fluctuations which tend to be very small. A margin of 1.0% means you can trade up to USD 1,000,000 even though you only have USD 10,000 in your account. A margin of 1% corresponds to a 100:1 leverage (or “gearing”). (Because USD 10,000 is 1% of USD 1,000,000.) Using this much leverage enables you to make profits very quickly, but there is also a greater risk of incurring large losses and even being completely wiped out. Therefore, it is inadvisable to maximise your leveraging as the risks can be very high. For more information on the trading conditions of Saxo Bank, go to the Account Summary on your SaxoTrader and open the section entitled “Trading Conditions” found in the top right-hand corner of the Account Summary
Why Trade Forex??
Why Trade Forex?
•24 hour trading
One of the major advantages of trading Forex is the opportunity to trade 24 hours a day from Sunday evening (20:00 GMT) to Friday evening (22:00 GMT). This gives you a unique opportunity to react instantly to breaking news that is affecting the markets.
•Superior liquidity
The Forex market is so liquid that there are always buyers and sellers to trade with. The liquidity of this market, especially that of the major currencies, helps ensure price stability and narrow spreads. The liquidity comes mainly from banks that provide liquidity to investors, companies, institutions and other currency market players.
•No commissions
The fact that Forex is often traded without commissions makes it very attractive as an investment opportunity for investors who want to deal on a frequent basis.
Trading the “majors” is also cheaper than trading other cross because of the high level of liquidity. For more information on the trading conditions of Saxo Bank, go to the Account Summary on your SaxoTrader and open the section entitled “Trading Conditions” found in the top right-hand corner of the Account Summary.
•100:1 Leverage
Leverage (gearing) enables you to hold a position worth up to 100 times more than your margin deposit. For example, a USD 10,000 deposit can command positions of up to USD 1,000,000 through leverage. You can leverage the first USD 25,000 of your investment up to 100 times and additional collateral up to 50 times.
•Profit potential in falling markets
Since the market is constantly moving, there are always trading opportunities, whether a currency is strengthening or weakening in relation to another currency. When you trade currencies, they literally work against each other. If the EURUSD declines, for example, it is because the US dollar gets stronger against the euro and vice versa. So, if you think the EURUSD will decline (that is, that the euro will weaken versus the dollar), you would sell EUR now and then later you buy euro back at a lower price. In case that the EURUSD indeed declines, then you can take your profit. The opposite trading scenario would occur if the EURUSD appreciates.
•24 hour trading
One of the major advantages of trading Forex is the opportunity to trade 24 hours a day from Sunday evening (20:00 GMT) to Friday evening (22:00 GMT). This gives you a unique opportunity to react instantly to breaking news that is affecting the markets.
•Superior liquidity
The Forex market is so liquid that there are always buyers and sellers to trade with. The liquidity of this market, especially that of the major currencies, helps ensure price stability and narrow spreads. The liquidity comes mainly from banks that provide liquidity to investors, companies, institutions and other currency market players.
•No commissions
The fact that Forex is often traded without commissions makes it very attractive as an investment opportunity for investors who want to deal on a frequent basis.
Trading the “majors” is also cheaper than trading other cross because of the high level of liquidity. For more information on the trading conditions of Saxo Bank, go to the Account Summary on your SaxoTrader and open the section entitled “Trading Conditions” found in the top right-hand corner of the Account Summary.
•100:1 Leverage
Leverage (gearing) enables you to hold a position worth up to 100 times more than your margin deposit. For example, a USD 10,000 deposit can command positions of up to USD 1,000,000 through leverage. You can leverage the first USD 25,000 of your investment up to 100 times and additional collateral up to 50 times.
•Profit potential in falling markets
Since the market is constantly moving, there are always trading opportunities, whether a currency is strengthening or weakening in relation to another currency. When you trade currencies, they literally work against each other. If the EURUSD declines, for example, it is because the US dollar gets stronger against the euro and vice versa. So, if you think the EURUSD will decline (that is, that the euro will weaken versus the dollar), you would sell EUR now and then later you buy euro back at a lower price. In case that the EURUSD indeed declines, then you can take your profit. The opposite trading scenario would occur if the EURUSD appreciates.
Important Forex Trading Terms
•Spread
The spread is the difference between the price that you can sell currency at (Bid) and the price you can buy currency at (Ask). The spread on majors is usually 3 pips under normal market conditions. For more information on the trading conditions at Saxo Bank, go to the Account Summary on your Client Station and open the section entitled “Trading Conditions” found in the top right-hand corner of the Account Summary.
•Pips
A pip is the smallest unit by which a cross price quote changes. When trading Forex you will often hear that there is a 3-pip spread when you trade the majors. This spread is revealed when you compare the bid and the ask price, for example EURUSD is quoted at a bid price of 0.9875 and an ask price of 0.9878. The difference is USD 0.0003, which is equal to 3 “pips”.
On a contract or position, the value of a pip can easily be calculated. You know that the EURUSD is quoted with four decimals, so all you have to do is cancel out the four zeros on the amount you trade and you will have the value of one pip. Thus, on a EURUSD 100,000 contract, one pip is USD 10. On a USDJPY 100,000 contract, one pip is equal to 1000 yen, because USDJPY is quoted with only two decimals.
Trading Scenario – Trading Rising Prices
If you believe that the euro will strengthen against the dollar you'll want to buy euro now and sell it back later at a higher price.
• You buy euro We quote EURUSD at Bid 0.9875 and Ask 0.9878, which means that you can sell 1 euro for 0.9875 USD or buy 1 euro for 0.9878 USD.
In this example you buy euro 100,000, at the quote price of 0.9878 (ask price) per euro.
• The market moves in your favor Later the market turns in favour of the euro and the EURUSD is now quoted at Bid 0.9894 and Ask 0.9896.
• Now you sell your euro and get the profit You sell euro at a Bid price of 0.9894.
• The profit is calculated as follows Sell price-buy price x size of trade
(0.9894 minus 0.9878) multiplied by 100.000 = USD 140 Profit
(Note that the profit or loss is always expressed in the secondary currency)
Trading Scenario – Trading Falling Prices
If, on the other hand, you believe that the euro will weaken against the dollar, you'll want to sell EURUSD.
• You sell euro We quote EURUSD at a Bid price of 0.9875 and Ask price of 0.9880 and you decide to sell euro 100,000 at a Bid price of 0.9875.
• The market moves in your favour The euro weakens against the dollar and the EURUSD is now quoted at bid 0.9744 and ask 0.9749.
• Now you buy back your euro You buy EUR at an ask price of 0.9749.
• Your profit/loss is then Sell price-buy price x size of trade
(0.9875 minus 0.9749) multiplied by 100.000 = USD 1260 Profit
Remember that trading EUR 100,000 as we have done in our examples, does not mean that you have to put up euro 100,000 yourself. On a 2% margin means that you have to deposit 2.0% of euro 100,000, which is euro 2,000 on margin as a guarantee for the future performance of your position.
Further Reading
To see how you can trade the Forex market and benefit from our toolbox of information and live quotes, please proceed to the Forex Quick Start found under the Trading menu of SaxoTrader.
Glossary
• Appreciation An increase in the value of a currency.
• Ask The price requested by the trader. This usually indicates the lowest price a seller will accept.
• Base currency The currency that the investor buys or sells (i.e. EUR in EURUSD).
• Bear Someone who believes prices are heading down. A bear market is one in which there has been a sustained fall in prices and which does not look like it will recover quickly.
• Bid The price offered by the trader. This usually indicates the highest price a purchaser will pay.
• Bid/Ask The Bid rate is the rate at which you can sell. The Ask (or offer) rate is the rate at which you can buy.
• Bull Someone who is optimistic about the market. A bull market is characterised by enthusiastic and sustained buying.
• cross When trading with currencies, the investor buys one currency with another. These two currencies form the cross: for example, EURUSD.
• Cross rate An exchange rate that is calculated from two other exchange rates.
• Depreciation/decline A fall in the value of a currency.
• Exchange rate What one currency is worth in terms of another, for example the Australian dollar might be worth 58 US cents or 70 yen.
Currencies traded freely on foreign-exchange markets have a spot rate (applying to trades settled “spot”, i.e., two working days hence) and a forward rate. Countries can determine their exchange rates in a variety of ways.
1. A floating exchange rate system where the currency finds its own level in the market.
2. A crawling or flexible peg system which is a combination of an officially fixed rate and frequent small adjustments which in theory work against a build-up of speculation about a revaluation or devaluation.
3. A fixed exchange-rate system where the value of the currency is set by the government and/or the central bank.
• EURUSD Means that you trade EUR against dollars. If you buy euro you pay in dollars and if you sell euro you receive dollars.
• FX, Forex, Foreign Exchange All names for the transaction of one currency for another, e.g. you buy GBP 100.00 with USD 150.25 or sell USD 150.25 for GBP 100.00.
• Interbank Short-term (often overnight) borrowing and lending between banks, as distinct from a banks business with their corporate clients or other financial institutions.
• Interest rate differential The yield spread between two otherwise comparable debt instruments denominated in different currencies.
• Leverage (gearing) The investor only funds part of the amount traded.
• Long To buy.
• Long position A position that increases its value if market prices increase.
• Liquid (-ity) The capacity to be converted easily and with minimum loss into cash. A liquid market is one in which there is enough activity to satisfy both buyers and sellers. Ultra-short-dated treasury notes are an example of a liquid investment.
• Margin The deposit required when entering into a position as well as to hold an open position. Your margin status can be monitored in the Account Summary.
• NYSE The New York Stock Exchange.
• Open position A position in a currency that has not yet been offset. For example, if you have bought 100,000 USDJPY, you have an open position in USDJPY until you offset it by selling 100,000 USDJPY, thus “closing” the position.
• Over the counter When trading takes place directly between two parties, rather than on an exchange. Over the counter trades can be customised whereas exchange-traded products are often standardised.
• Pips A pip is the smallest unit by which a Forex cross price quote changes. So if EURUSD bid is now quoted at 0.9767 and it moves up 2 pips, it will be quoted at 0.9769.
• Position Traders talk of “taking a position” which simply means buying or selling currency cross. “Position” can also refer to a trader's cash/securities/currencies balance, whether he or she is short of cash, has money to lend, is overbought or oversold in a currency, etc.
• Risk Trying to control outcomes to a known or predictable range of gains or losses. Risk management involves several steps which begin with a sound understanding of one's business and the exposures or risks that have to be covered to protect the value of that business. Then an assessment should be made of the types of variables that can affect the business and how best to protect against unwelcome outcomes. Consideration must also be given to the preferred risk profile – whether one is risk – averse or fairly aggressive in approach. This also involves deciding which instruments to use to manage risk and whether a natural hedge exists that can be used. Once undertaken, a risk-management strategy should be continually assessed for effectiveness and cost.
• Secondary currency (variable currency or counter currency) The currency that the investor trades the base currency against (i.e. USD in EURUSD).
• Short position A position that benefits from a decline in market prices.
• Short To sell.
• Speculative Buying and selling in the hope of making a profit, rather than doing so for some fundamental business-related need.
• Spot A Spot rate is the current market price of an asset.
• Spot market The part of the market calling for spot settlement of transactions. The precise meaning of “spot” will depend on local custom for a commodity, security or currency. In the UK, US and Australian foreign-exchange markets, “spot” means delivery two working days hence.
• Spread The difference between the bid and the ask rate.
The spread is the difference between the price that you can sell currency at (Bid) and the price you can buy currency at (Ask). The spread on majors is usually 3 pips under normal market conditions. For more information on the trading conditions at Saxo Bank, go to the Account Summary on your Client Station and open the section entitled “Trading Conditions” found in the top right-hand corner of the Account Summary.
•Pips
A pip is the smallest unit by which a cross price quote changes. When trading Forex you will often hear that there is a 3-pip spread when you trade the majors. This spread is revealed when you compare the bid and the ask price, for example EURUSD is quoted at a bid price of 0.9875 and an ask price of 0.9878. The difference is USD 0.0003, which is equal to 3 “pips”.
On a contract or position, the value of a pip can easily be calculated. You know that the EURUSD is quoted with four decimals, so all you have to do is cancel out the four zeros on the amount you trade and you will have the value of one pip. Thus, on a EURUSD 100,000 contract, one pip is USD 10. On a USDJPY 100,000 contract, one pip is equal to 1000 yen, because USDJPY is quoted with only two decimals.
Trading Scenario – Trading Rising Prices
If you believe that the euro will strengthen against the dollar you'll want to buy euro now and sell it back later at a higher price.
• You buy euro We quote EURUSD at Bid 0.9875 and Ask 0.9878, which means that you can sell 1 euro for 0.9875 USD or buy 1 euro for 0.9878 USD.
In this example you buy euro 100,000, at the quote price of 0.9878 (ask price) per euro.
• The market moves in your favor Later the market turns in favour of the euro and the EURUSD is now quoted at Bid 0.9894 and Ask 0.9896.
• Now you sell your euro and get the profit You sell euro at a Bid price of 0.9894.
• The profit is calculated as follows Sell price-buy price x size of trade
(0.9894 minus 0.9878) multiplied by 100.000 = USD 140 Profit
(Note that the profit or loss is always expressed in the secondary currency)
Trading Scenario – Trading Falling Prices
If, on the other hand, you believe that the euro will weaken against the dollar, you'll want to sell EURUSD.
• You sell euro We quote EURUSD at a Bid price of 0.9875 and Ask price of 0.9880 and you decide to sell euro 100,000 at a Bid price of 0.9875.
• The market moves in your favour The euro weakens against the dollar and the EURUSD is now quoted at bid 0.9744 and ask 0.9749.
• Now you buy back your euro You buy EUR at an ask price of 0.9749.
• Your profit/loss is then Sell price-buy price x size of trade
(0.9875 minus 0.9749) multiplied by 100.000 = USD 1260 Profit
Remember that trading EUR 100,000 as we have done in our examples, does not mean that you have to put up euro 100,000 yourself. On a 2% margin means that you have to deposit 2.0% of euro 100,000, which is euro 2,000 on margin as a guarantee for the future performance of your position.
Further Reading
To see how you can trade the Forex market and benefit from our toolbox of information and live quotes, please proceed to the Forex Quick Start found under the Trading menu of SaxoTrader.
Glossary
• Appreciation An increase in the value of a currency.
• Ask The price requested by the trader. This usually indicates the lowest price a seller will accept.
• Base currency The currency that the investor buys or sells (i.e. EUR in EURUSD).
• Bear Someone who believes prices are heading down. A bear market is one in which there has been a sustained fall in prices and which does not look like it will recover quickly.
• Bid The price offered by the trader. This usually indicates the highest price a purchaser will pay.
• Bid/Ask The Bid rate is the rate at which you can sell. The Ask (or offer) rate is the rate at which you can buy.
• Bull Someone who is optimistic about the market. A bull market is characterised by enthusiastic and sustained buying.
• cross When trading with currencies, the investor buys one currency with another. These two currencies form the cross: for example, EURUSD.
• Cross rate An exchange rate that is calculated from two other exchange rates.
• Depreciation/decline A fall in the value of a currency.
• Exchange rate What one currency is worth in terms of another, for example the Australian dollar might be worth 58 US cents or 70 yen.
Currencies traded freely on foreign-exchange markets have a spot rate (applying to trades settled “spot”, i.e., two working days hence) and a forward rate. Countries can determine their exchange rates in a variety of ways.
1. A floating exchange rate system where the currency finds its own level in the market.
2. A crawling or flexible peg system which is a combination of an officially fixed rate and frequent small adjustments which in theory work against a build-up of speculation about a revaluation or devaluation.
3. A fixed exchange-rate system where the value of the currency is set by the government and/or the central bank.
• EURUSD Means that you trade EUR against dollars. If you buy euro you pay in dollars and if you sell euro you receive dollars.
• FX, Forex, Foreign Exchange All names for the transaction of one currency for another, e.g. you buy GBP 100.00 with USD 150.25 or sell USD 150.25 for GBP 100.00.
• Interbank Short-term (often overnight) borrowing and lending between banks, as distinct from a banks business with their corporate clients or other financial institutions.
• Interest rate differential The yield spread between two otherwise comparable debt instruments denominated in different currencies.
• Leverage (gearing) The investor only funds part of the amount traded.
• Long To buy.
• Long position A position that increases its value if market prices increase.
• Liquid (-ity) The capacity to be converted easily and with minimum loss into cash. A liquid market is one in which there is enough activity to satisfy both buyers and sellers. Ultra-short-dated treasury notes are an example of a liquid investment.
• Margin The deposit required when entering into a position as well as to hold an open position. Your margin status can be monitored in the Account Summary.
• NYSE The New York Stock Exchange.
• Open position A position in a currency that has not yet been offset. For example, if you have bought 100,000 USDJPY, you have an open position in USDJPY until you offset it by selling 100,000 USDJPY, thus “closing” the position.
• Over the counter When trading takes place directly between two parties, rather than on an exchange. Over the counter trades can be customised whereas exchange-traded products are often standardised.
• Pips A pip is the smallest unit by which a Forex cross price quote changes. So if EURUSD bid is now quoted at 0.9767 and it moves up 2 pips, it will be quoted at 0.9769.
• Position Traders talk of “taking a position” which simply means buying or selling currency cross. “Position” can also refer to a trader's cash/securities/currencies balance, whether he or she is short of cash, has money to lend, is overbought or oversold in a currency, etc.
• Risk Trying to control outcomes to a known or predictable range of gains or losses. Risk management involves several steps which begin with a sound understanding of one's business and the exposures or risks that have to be covered to protect the value of that business. Then an assessment should be made of the types of variables that can affect the business and how best to protect against unwelcome outcomes. Consideration must also be given to the preferred risk profile – whether one is risk – averse or fairly aggressive in approach. This also involves deciding which instruments to use to manage risk and whether a natural hedge exists that can be used. Once undertaken, a risk-management strategy should be continually assessed for effectiveness and cost.
• Secondary currency (variable currency or counter currency) The currency that the investor trades the base currency against (i.e. USD in EURUSD).
• Short position A position that benefits from a decline in market prices.
• Short To sell.
• Speculative Buying and selling in the hope of making a profit, rather than doing so for some fundamental business-related need.
• Spot A Spot rate is the current market price of an asset.
• Spot market The part of the market calling for spot settlement of transactions. The precise meaning of “spot” will depend on local custom for a commodity, security or currency. In the UK, US and Australian foreign-exchange markets, “spot” means delivery two working days hence.
• Spread The difference between the bid and the ask rate.
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