what is Forex? The FOREX or Foreign Exchange market is the largest financial market in the world, with an volume of more than $1.5 trillion daily, dealing in currencies. Unlike other financial markets, the Forex market has no physical location, no central exchange. It operates through an electronic network of banks, corporations and individuals trading one currency for another.The Forex, or foreign currency exchange, is all about money. Money from all over the world is bought, sold and traded. On the Forex, anyone can buy and sell currency and with possibly come out ahead in the end. When dealing with the foreign currency exchange, it is possible to buy the currency of one country, sell it and make a profit. For example, a broker might buy a Japanese yen when the yen to dollar ratio increases, then sell the yens and buy back American dollars for a profit.In the beginning countries would trade with each other using the barter system. If one nation needed lumber but had cattle, they would trade one product for another. This was pure trading. This type of economy has many limitations, but served mankind well for many centuries. However, nations quickly saw the benefit of having a system of exchange, and while some cultures used pretty rocks, or animal teeth, precious metals quickly became established methods of exchange. God and silver were the most popular. Initially gold and silver coins were used, and in fact the name of the British standard currency, the pound sterling, came from the Hasterling region where gold coins were made, and originally meant coins of the Hasterling’s. Up until World War I most nations had central banks that supported the value of their currencies and most used gold as the standard. Paper money was printed and it legally could be exchanged for gold but this did not often happen. Since it was rarely converted, some banks and some nations believed they no longer needed to keep reserves of gold in their vaults, as the US once did with Fort Knox. Inflation then occurred.Near the end of World War II a conference known as Bretton woods had many nations reach an agreement on areserve currency system based on the US dollar. The World Bank and other organizations agreed, and a fixed exchange rate system was reached. The value of the dollar was fixed on a certain amount of gold, and other currencies were fixed on value to the dollar. Currency trading after this however has evolved and currencies have grown in value, and gone down in value, leading to fluctuation.Today traders take advantage of the fluctuation in value among currencies through the forex or foreign currency markets. It is quite common to see a trader who suspects that the value of the Euro will go up against the yen or the dollar and follow the old axiom of “buy low and sell high.” On of the ways this is done is through margin trading. With margin trading a trader doesn’t have to have all the money in an account that is being traded. If a trader has 10,000 and works with a one percent margin, he is able to trade $100,000 in currency. This adds great leverage to the trade and makes forex trading very attractive to many who are looking for a large and quick return on their investments. Forex traders are also attracted to the low costs associated with trading since most trades are without commission. The fact that there is a 24 hour trading cycle is also attractive to many. Traders have opportunities for large profit, but they also have risk inherent. An aggressive trader may experience profit and loss swings of up to 30% in a day. This can be 30% to the good, or to the bad, so forex trading requires education and courage as well as capital. However there are no daily limits and no restrictions on trading hours other than the weekend when markets are closed. For this reason there are always opportunities. Money will always be made.Some nations in the past have complained about hedge funds and other large institutions involved in forex trading, saying that they have intentionally devalued their currencies to make quick profits. George Soros, the famous billionaire who is involved in politics, has been accused of this practice by the government of Indonesia. Whether it is true or not, and if true whether it should or should not be done is not for this article. However, when institutions control such large amounts of money, the chance of manipulation does exist. As long as foreign currency is traded, there will be such accusations. However, the forex market remains a way to achieve substantial financial gain.
Automated Trading is the next revolution in trading: a system that can trade Forex and other assets automatically by sending trading signals directly to your account. The good thing is there are a lot of Automated Trading systems available and more on the way. On the other hand, there are a lot of bad systems available. Here are ways to find the best.
Instructions
Step 1
Go to a automated trading exchange, like Collective 2 or Strategy Exchange and review the systems.
Step 2
Pick systems that have long-term success. Anyone can develop an automated trading strategy that makes money for a month and then blows up.
Step 3
Find a system with small rates of slippage. Slippage is when a system loses money before it starts to gain. Too much slippage can wipe out your account.
Step 4
Avoid excessive trading. A system that produces solid returns but conducts a high amount of trades is likely to lose money, or limit your return through trading fees and commissions.
Step 5
Check volatility. If a system’s swings scare you on the chart, imagine what it will do to you in real life. You’ll be spending just as much time watching the trades as you would if you were making the calls yourself.
Generate automated Forex profits, by using Forex Robots or Forex Expert Advisors, forasmuch as what gains rap you envisage adumbrate them and which is the paramount? Hire find out…
The ahead point to assemble is, proficient is a huge industry direction Forex Robots and Expert advisors and they all knock out roomy claims but most fail miserably to get ready boodle. They claim they restraint mold you bloated keep from no push and all for a couple hundred dollars but finished thence tasteless through they don ‘ t sweat.
Don ‘ t steward deceived by the further and the pathway records, none of them produce independently verified track records of gains over the lengthy phrase, condign simulations, or character setup figures. Rent ‘ s steward fair – you don ‘ t gratify a more appropriate performance than the creation ‘ s top gravy managers for a mere few hundred dollars and that ‘ s a truth.
Therefrom amenability you excite a Forex Trading apparatus that makes finances?
The answer is aye but bring about positive you carry a tangible passage inscribe and independent catechism of effect. Skillful out experienced but they don ‘ t call themselves robots or expert advisors, strict trading systems. You rap inspire some prodigious ones which burden father 50 – 100 % per annum repercussion reality; you restraint unfluctuating bias some handout ones which invent solid outstretched term gains.
When using lot Forex trading system, frame hard you impress a essential passage document of verified gains; you discern the sound mind of the formation, thus youcontract spring from unfeigned duck confidence. You essential when rationalization piece system, seat on the lanky spell impact and discount short phrase drawdown periods; all systems will dodge at times but if you are confident fame your system, you incumbency trade substantial terminated these periods go underground discipline to long title currency trading good times.
If you perk the ultra, you will boast the stand up Forex trading machine which obligation produce you riches enlarged phrase monopoly honest 30 annals a bout or less.
One of the best things about online forex trading is that there is a wealth of information available on the Internet to help new and experienced traders alike refine their trading systems and become savvier. Unfortunately, the availability of information can also make it more difficult for people to find the best online forex trading platforms and the best forex brokers. That’s why Forex Yellow Pages has compiled a directory of companies around the world that offer trading information and/or platforms. Our goal is provide you with links to the tools you need to develop your forex trading system and increase your profits.
Best of all, the forex trading directory is absolutely free for you to use. Companies and brokers are listed alphabetically, so it’s easy to find a company that you might have heard about. We are always updating the directory with new companies, so be sure to bookmark the site and check back often for the latest additions. If you are a forex broker or a forex company and would like to be included in our directory, please email us at blog@forexyellowpages.com. Advertising opportunities on the site are also available. For more information about advertising, download the Forex Yellow Pages media kit.
Sigma Forex helps private and institutional clients for their business objectives by offering a package of trade, together with the state of the art trading platform, real-time news and wireless access. We exiled to reach and surpass the expectations of our customers with the utmost professionalism and integrity.
Sigma Forex summarizes the main differences between the exchange and the futures market:
Foreign exchange market against futures market
Liquidity
Currency market: Near two trillion dollars of daily volume.
Futures market: about 400 billion dollars on a daily basis.
Transaction Costs
Currency market: the Committee for Free and narrow.
Futures market: the high commission rates
Margin
Currency market: the fixed exchange rate, regardless of the position.
Futures market: the different levels of attitudes outside overnight day positions.
Trade Execution
Currency market: immediate implementation.
Futures market: a coherent application.
This makes the currency market is very attractive for investors and traders. But I have something in clear, despite the benefit of trading foreign exchange is notorious, it is still difficult for the commercial success of the market. It takes a lot of education, discipline, dedication and patience, just like any other market.
Using the benefit of the worldwide currency market, many people findforex trading to be extremely beneficial to them. It is important to understand the circumstances in which it can be beneficial and also ensure that you are properly using the Foreign exchange market for your situation. Not everyone will use the market place in the exact same manner, and this is perfectly fine. Taking the time to realize that the market can be extremely dangerous is vital to actually succeeding as a Forex investor.
For the average newbie, the Foreign exchange market can be a very scary place. Taking the time to carefully learn about the different currencies can allow you to really maximize your efforts while you are investing. The best course of action that you can take is going to the effort to actually determine how the Forex market can be beneficial to you. The benefits that the market has for some consumers and investors may not be the best benefits though for you, it is important to determine which you are most concerned with before you start investing in the market though so that you can keep a clear perspective on your investments. If you just really know how theforex exchange rates every time, then you are 100% sure for success.
One of the biggest benefits that people appreciate is the ability to quickly and easily engage in transactions at almost any time of day or night. Foreign currency exchange can be done, anytime and anywhere in the world. This can allow someone to gain access to real time transactions without all of the hassle and problems that frequently come from submitting a transaction after the market has closed or even before the market has closed. The market closing at times can cause some serious changes in rates to occur, however this can also be a major benefit as well. Because the Forex market rarely ever closes except for a few hours each week you are given a much larger amount of time in which you can typically make trading decisions. This will allow you to be certain that you make the correct decision.
Forex trading has a big appeal among the people due to the possibility of creating instant wealth. If forex trading is equipped with a good strategy, preferably a unique one will be of great help in achieving success. Forex trading strategies reduce the risk irrespective of the person’s participation in position trading, or day trading, or swing trading provided they are disciplined enough to stick to the strategy adopted. The best forex trading strategies are adopted by forex traders who are blessed with keen market sense and also who are able to privy to get inside information. On the basis of that information they develop forex investment strategies. The forex trading strategies which are devised after observing the market for quite sometime gain profits by rising above the odds. The forex traders who are best in their profession do not enter a trade without devising an exit strategy. They are the people who know very well when to minimize their losses and when to maximize their profits. They are very disciplined in doing both. Leverage strategy: Forex trading strategies help achieve success in forex trading or online currency trading. Forex trading differs from trading stocks and the use of forex trading strategies help the person to gain more profits in a very short period. There are many forex trading strategies adopted by the investors, the most useful among these strategies is called as the leverage. This forex trading strategy allows the online traders to get more funds than the deposited amount; by adopting this strategy the benefits are maximized. This strategy helps in utilizing the amount deposited in the account even up to 100 times against any forex trading by backing high yield transactions very easily and better results are got. This leverage forex trading strategy is used by the traders on a regular basis to take advantage of fluctuations happening in the forex market in short term. Stop loss order strategy: Stop loss order forex trading strategy is also used commonly among forex traders. This strategy protects the investors and creates a situation called the predetermined point, not allowing the investor to trade when it is reached. This forex trading strategy minimizes the losses. Sometimes this strategy might backfire and make the investor to run the risk of stopping their trading leading to a higher loss, hence it is up to the trader to use or not to use this forex trading strategy.Automatic entry order strategy: An automatic entry order forex trading strategy is also one of the widely used strategies. This strategy allows the investors to participate in the trading activity when the price is suitable for them. Here the price is already determined and when the situation is reached the investor enters into the forex trading automatically.Apart from the above strategies, there are certain basic rules to be followed as strategies to gain profits in forex trading:The amount exposed in the foreign currency trading should always be kept in track to ensure to be within the accepted levels. While trading, the trader should not be very greedy or breach when keeping the returns in mind which is expected out of the transactions. The main objective should be kept in mind; it might be either capital appreciation or constant returns or high profits. Keeping track of ones own experience will reward at a later stage. Investment should be within the affordability to lose. Also relying on expert’s opinions, history prices, and analytical statements may be effective some time rather than going by their own instincts.
Forex trading denotes exchanging of one currency for another. Such a trading is marked with possibilities and potentialities. Because of its unique attributes, countless traders are jumping in the trade and coming up with substantial profit. What makes forex trading so popular and why you should go for forex trading? Find below a few reasons to get the answer.
Trading in forex is easy and simple. You can start trading in forex with the help of a broker or by your own way. With the proceeding, you will learn the basics and fundamentals for e.g. currency pairs, trading environment, market situation etc. Unlike any other trading platform, the research and analysis in forex trading is much easier and less hazardous. Even a new comer within a few months can understand what matter/s here and how to keep the track of substantial profit.
Forex market is not headquartered in any particular place. It is available worldwide and accessible by anyone from any where. With the boom of internet, you can also start forex trading right from your own home. All you need to have is a computer with internet facility. Now, if you are new to forex trading and seek some tutorial before trading, online method is again the best option at your disposal. Just with a single click, you can access innumerable tutorial programs regarding forex trading. These programs are known for their effectiveness and have been helping trader of all kinds.
Except the aforesaid, forex market is again distinguished for its high scale trading volume. With an average daily trade of US$ 2 trillion and above, forex market is hailed as the largest trading market in the world. The market is busy24 hours, except the weekends. Thus when a trader in west is sleeping after forex trading, another trader from east might be busy exploring his expertise in the market.
Forex market is volatile in nature. It is not stable and watches rapid development. Thus a trader with a lust for forex trading should have a proper understanding of the currency trading patterns before launching in the market. He should understand the importance and behavior of technical and fundamental analysis for a successful forex trading. Technical analysis denotes the interpretation of particulars and data based on the data generated by the market itself. Now, fundamental analysis gives an insight into the factors and conditions which influence the market economy and play an important role in building and altering opinion regarding trading agreement.
Forex market is a potential platform to earn substantial profit. And forex trading is considered as the best career for a trader. The market however involves certain risks also. Thus a trader should learn the basics before landing in forex market. When he is potent with the basics and understands the structure of the market, he can easily strike gold in the forex market.
There is quite a variety of trading options available in this day and age. So many opportunities to make a good income from your own home are out there waiting to be explored. And one of the most successful, practical, and convenient ways is Forex trading - the exchange of foreign currency. If you have capital to invest or are in need of a new career, or if you are in need of a job you can do from home, Forex trading is the best thing for you. Let me explain some reasons.
Forex trading is ideal to do from home, because you can access the market from any computer as long as you have internet access. On top of that, the market is open 24 hours a day, 7 days a week. You trading will fit easily into any time frame that you have. Unlike investing in the stock market, you are not limited to normal business hours. You can spend your day as you like, enjoying the things you like and living your life, without being chained to a desk.
Flexibility And Control
Forex trading is flexible and can be incorporated into whatever lifestyle you have. As well as being time-smart, Forex trading is money-smart. No longer do you have to pay frustrating licensed broker fees. In Forex, you have control over your own account and can make your own decisions and exchanges without having to work through a broker.
But perhaps the greatest advantage of all is the stability and predictability of the Forex market. By using technical analysis, you can foresee changes and fluctuations in the market and act accordingly. Besides, the Forex market does not have such moody swings as the stock market. The only thing that would make the market swing much is if you were to buy and sell only one particular currency for a long time. But since there are hundreds of currencies available in the world, your options are never limited, therefore such swings can be prevented.
Though the benefits far outnumber the negatives, there are some risks in Forex trading. There are certain dangers involved in banks in foreign countries, credit and interest rates, and exchange rates. But if you thoroughly understand the market and are ready to trade, you can prevent many of these risksGet Started For Free
In fact, there are free demo accounts available where you can try your hand at Forex trading without actually risking your capital. This way you can get used to trading and learn how best to make decisions in the account that is designed to be exactly like the real market.
If Forex trading interests you and looks like the smartest choice for you, there are many resources online where you can learn more. There are courses available that teach you the details of Forex trading, how to make profitable decisions and how to succeed. One example of a site where you can find information on Forex is the Federal Reserve Bank's website.
On the whole, Forex trading is the most successful career that you can do from home. It not only allows you to live your life your own way with its immense practicality and convenience, but it opens the door to a whole new world of opportunity and endless potential to make money
A way of winnig huge profits.Currency exchange is the trading of one currency against another. Professionals refer to this as foreign exchange, but may also use the acronyms Forex or FX.
Currency exchange is necessary in numerous circumstances. Consumers typically come into contact with currency exchange when they travel. They go to a bank or currency exchange bureau to convert their "home currency into , the currency of the country they intend to travel to.
They may also purchase goods in a foreign country or via the Internet with their credit card, in which case they will find that the amount they paid in the foreign currency will have been converted their home currency on their credit card statement.
Although each such currency exchange is a relatively small transaction, the aggregate of all such transactions is significant. Businesses typically have to convert currencies when they conduct business outside their home country. They exportin goods to another country and receive payment in the currency of that foreign country, then the payment must often be converted back to the home currency.
Similarly, if they have to import goods or services, then businesses will often have to pay in a foreign currency, requiring them to first convert their home currency into the foreign currency. Large companies convert huge amounts of currency each year.
The timing of when they convert can have a large affect on their balance sheet and bottom line.Investors and speculators require currency exchange whenever they trade in any foreign investment, be that equities, bonds, bank deposits, or real estate.
Investors and speculators also trade currencies directly in order to benefit from movements in the currency exchange markets. Commercial and Investment Banks trade currencies as a service for their commercial banking, deposit and lending customers.
You want to learn how to trade currency on the foreign exchange market? The process of trading currencies appears very straight-forward on the surface; but, there is more to it than meets the eye.
The currency trading tutorial you're about to receive here will give you a basic idea of how things works. However, you must keep in mind that this tutorial is only scratching the surface. The Forex market is complex, fast-paced and requires serious further study if you wish to trade successfully.
Now that we have that disclaimer out of the way, let's begin by looking at the fundamental unit involved in every trade: the 'currency pair'.
What are currency pairs?
Currency pairs are units of 2 currencies involved in a foreign exchange trade. For example, if you want to sell U.S. dollars to buy Euros, you would look at the exchange rate quoted for the EUR/USD currency pair. Or, if you wanted to sell Euros to buy U.S. dollars, you would look at the exchange rate quoted for the USD/EUR currency pair.
You might thinking: “Aren't they the same thing?” Well, they almost are, but you must look at the correct pair, in the correct order, based on the currency being purchased.
There are two reasons for doing this:
First, it is easier to calculate the results of your exchange in terms of how much of the base currency you can purchase with your 'quote' currency. Your base currency is the currency you intend to buy, and the quote currency is the currency you intend to sell in exchange for the base.
When quoting an exchange rate, your broker will list the base currency first in the pair, and the quote currency second.
This means that when you see a pair like EUR/USD, you are seeing the cost of 1 Euro in U.S. Dollars. An exchange rate quote of EUR/USD = 1.4436 means that 1 Euro costs $1.4436 in U.S. Dollars.
Likewise, the USD/EUR pair indicates the cost of 1 U.S. Dollar in terms of Euros. An exchange rate of USD/EUR = 0.6834 would mean that 1 U.S Dollar costs 0.6834 Euro.
The second reason for looking at the correct buy/sell ordered pair is that you'll want to know the difference between the 'bid price' (exchange rate) and the 'ask price' (what the market makers want for the currency).
The difference between bid price and ask price make up what is known as 'the spread'. Forex traders are subject to spreads when opening or closing trades in the buying position.
In other words, you are always subject to a spread when you buy, regardless of whether you are opening or closing the trade.
Open buy -> spread
Close sell -> no spread
Open sell -> no spread
Close buy -> spread
Let's say that you want to buy the EUR/USD pair. The bid price is 1.4436. The ask price may be something like 1.4440. You must pay the spread of 0.0004 in order to do the trade.
Those are the basics of a currency trade, but there are other factors
to take into consideration. In order to make a profit on currency exchanges, you must also know how
to calculate the cash value of exchange rate fluctuations in terms of 'basis points' - or, in Forex jargon - 'pips value'.
This currency trading tutorial will not cover pips values, but it is a concept you should investigate further if you want to master the basics of trade on the foreign exchange.
FOREX is literally an abbreviation of the words Foreign Exchange - the trading of International Currencies.
The market
The currency trading (FOREX) market is the biggest market on earth with a daily turnover of more than 3 trillion dollars. The participants in this market are banks, organizations, investors and private individuals.
The Forex goods are the currencies of various countries. You buy Euro, paying with US dollars, or you sell Japanese Yens for Canadian dollars. Or perhaps you're simply exchanging the pound or dollar to buy an overseas property.
How does one profit in Forex?
Obviously, you buy cheap and sell for more! The profit potential comes from the fluctuations (changes) in the currency exchange market.
The nice thing about the FOREX market, is that regular daily fluctuations, say - around 1%, are multiplied by 100!
How risky is Forex trading?
If you trade on the futures market, ie agreeing to purchase or sell a currency at some time in the future - the risks can be high due to the nature of the contracts. Options are less risky as they generally carry a maximum risk from the outset. Spot or cash exchange carries no risk. You simply exchange what you've paid for at that days rate. If the curency moves up or down afterwards, it doesn't affect you.
You may have heard of Forex Ambush and wonder if it could help you earn money from trading Forex. In this article we will explain 4 reasons why you should consider trying it and why so many people are satisfied with the profits they are getting from it.
Just follow the Instructions
Forex Ambush is a trading signal service. This means that they will send you trade recommendations via email or SMS. The recommendation will include the currency pair to trade, when to take a profit and when to exit your position. Your job is to follow the instructions. You do not need to worry about fundamental analysis or technical analysis or what the indicators are showing. You just need to follow the advice given by the trading signals.
Guarantees
Forex Ambush is guaranteed for 60 days. That gives you a chance to try it out and decide for yourself if you are satisfied. A good idea is to open a demo account and follow the trading signals to see if you do make money. If you can make money then you can progress to a mini account, which then gives you the chance to trade with real money and real emotions but with limited risk. After 60 days if you are not satisfied that you would be able to make good profits, you are able to ask for your money back.
Adapts to the trading conditions
Forex Ambush uses artificial intelligence to monitor all currencies in real time and determine which currency offers the best opportunity to make a profit. It is also able to adapt to the trading conditions and seek out patterns that have the highest probability of becoming successful trades. Some trading systems are only suited to certain trading conditions, e.g. they will only work if a currency is strongly trading, or if it range bound. Forex Ambush will automatically adjust to the trading conditions and select the most promising trades.
Results are Transparent
Forex Ambush publishes the details of its trades for all to see. It includes the latest trade advice in detail, but also the trading statements going back many months. This allows you to check the actual trades and history to get an idea of what type of trades Forex Ambush has been suggesting.
Learning More
Forex Ambush is a good choice for beginning traders and experienced traders alike. With the 60 day guarantee and the ability to try it out on demo accounts, you are able to try it out for no risk.
Until you really get into Forex trading online, it will be really difficult for you to understand the true meaning of the title of this article. I will tell you a true story, and I believe myself to be a reasonably sane person, although after you read this story you might not think so.
I am a professional currency trader now who makes a real good living doing it. It was not always that way; I will tell what currency course that provided my first way to let me make consistent money online and started my new career in a second, but for now back to the story.
This is the story, and I could not make this up if I tried. I wish I did make it up; I would not look like such an idiot then. I am about two years into my new career and I make the biggest killing I ever made on a trade, I am talking like in the high six figures, on a low five figure investment. By the way, the Forex markets are the only place that provides you this type of leverage that permits you to make those types of Return on Investments (ROI) in such a short period.
Well, I am on top of the world, I think I am the smartest person ever on earth. I am going to be the next Warren Buffet. Then fifteen minutes I lose an amount in the low six figures on another trade. I lost this much, because I did not utilize the defensive techniques that you can learn in many Forex courses at that time. I do now, I learned my lesson.
So this is what I did; I pick up the computer monitor and I had a big one, a 21 inch model and this was not these new flat screens we all have now, this was one of the olds ones, that were heavy. My office is on the second story of our house and the room has a big double window in it. I throw the monitor right through the window. As if that was not enough, I then go get the computer and throw it through the other window. By the way, they hit right in the middle of the concrete patio outside the windows, at least I am a good shot. I really could not miss, to tell you the truth.
My wife’s comes in screaming, the kids are crying, the neighbors start banging on the front door. Everybody wants to know what’s going on? WOW, oh, WOW, this was a big mistake on my part. After all, I still made a mid six figures income that day; I thought of that afterwards, I just did not think of it at that time.
You should never do this for the following reasons.
A) You just have to pay to have the windows fixed.
B) You have to buy a new computer and monitor.
C) You have to clean everything up, because your wife is sure not going to do it. She is so mad at you at this time, she is thinking of divorcing you.
D) Your kids think there dads a crazy person.
E) You neighbors think there living next door to a lunatic.
Those are just some of the reasons not to do it, there are many more. But, that all happened in one day of Forex trading online. The currency class that first taught me how to make money every month in the markets is called Forex Trading Made E Z. You can check out its website and see if you’re into it. That’s my story for the day, the moral of it all is, what ever happens in the market that day, there is always another day. And NEVER but NEVER throw your computer out the window.
Setting goals is a great way to become successful. By setting a goal you work hard to achieve that goal. Many people set small goals so when they reach it they feel a sense of achievement and set a bigger goal. People who are in the financial market also set goals for themselves.
These goals will be different from different marketers because they all have different income levels and circumstances. It is hard to find the right market that fits you meaning the right market that fits your goals (no matter how big or small) and your circumstances too. In this article I will give you a market that is very profitable and the market I am talking about is Forex (otherwise known as the Foreign Exchange Market).
One thing that you should note about this market is that it isn’t using stock or shares but instead it is using a nation currency for economic trading. The reason for this is that a nation’s currency can’t be reduced by certain incidents like news or weather, whereas shares are affected by these factors and can end up being reduced in a day! As you should be able to tell this way of trading is a good idea for marketers.
A question you should ask yourself before jumping into the Forex market is whether you are planning to trade as a business or an avocation. In other words are you planning to work part time which would mean you will be doing this in your free time or are you planning to work full time. It doesn’t matter which one you choose because the Forex market is open for a very long period (24 hours and 6 six days a week). Online trading platforms facilitate the needs of the other nation’s time zones.
The question of part time and full time is very important because if you are going to trade on the Forex market part time then you will not have the same capital as someone trading full time. Regardless of your choice, you should know that the Forex market can accommodate any trading plans.
With two unit sizes this is easy to do. The Forex Market contains a full unit size which is 100,000 units which has a 1% unit margin and the other unit size is 10,000 units which are controlled by a smaller unit margin of 0.5%. A mini account can be started for as little as $300 which is not bad considering all the profit that can be made back from this system.
Now that you know what the Forex market is, does it fit your financial goal and circumstances? If you are looking for a financial market then why not use Forex? It is very easy to use and with the cheap set up of $300 (cheaper than many competitors) that can be turned into $3,000 it is very hard to let this offer pass you.
One of my favorite indi is LWMA 55. I dont know why but the price seems to react a lot of this line. People say that MA is a lagging indicator and I agree with them 100% but do not use MA as a signal generator, instead use them as a dynamic support and resistance.For those of you who love to experiment, try putting LWMA 55 on a chart and see how price actually interact with the line. Its not magic but its a mathematical calculation. Dont get me wrong, you may not be able to trade using MA 55 alone. Try putting LWMA 13 in there as well and remember they are not signal generators. Treat them as dynamic support and resistance. Put it into a simple formula. If price > LWMA 13 & LWMA 55 = long. If price < LWMA 13 & LWMA 55 = short. Try it, you may like what you find. Just needed to add in a filter to improve accuracy.
The importance of gold in terms of wealth cannot be undermined. Gold is unarguably one of the most precious elements on the earth. However, the sources are limited. Gold is becoming rarer with each passing day and hence, the price of gold is continuing to rise higher and higher.Invest in GoldTherefore, it is a perfect alternative to trade gold. It is thus advisable that you buy gold when the price decreases in the market. Later on, when there is a rise in the price, you may sell gold in the market. Before you start to invest in gold, it is best to have a perfect strategy for investing in gold. You also have to be familiar with the market that deals in bullion to get the maximum benefits.Invest in GoldNext, investing in gold bullion bars of different sizes and weights like ounces, grams and kilograms is also a better option. To buy gold bullion of 10-ounce bar, which consist of a fine purity of 99.5% is the standard unit and may be the best vital alternative not only in gold trading, but also for personal use.There are many advantages of bullion gold. It is similar to stocks and can be traded at the latest market rates. Gold bullion is not only considered a tangible asset, but also an investment that ensures total security and value during the time of financial inflations or crisis.Invest in Gold Due to the multiple benefits, majority of investors think that it is better to invest in gold certificates. You can trade gold freely in the gold market by investing in gold certificates or funds. Gold funds and certificates are completely insuredFor investing in gold, bullion coins surely proves to be one of the best options. By selling gold bullion, you may earn cash in times of emergencies or urgency, while saving the others. By doing this, you will save some extra expenses. As these coins come in small sizes, there is no need of cutting them in more small pieces.Invest in GoldWhile considering the security in finances, gold bullion bars is the ideal liquid investment. These bars are easy and convenient for transporting and storing. In addition, gold bullion bars are very useful in times of inflation or recession and other such financial crisis.It is therefore good to consider investing in gold. It will be helpful for you to have a fair amount of knowledge about gold trading process and gold trading market before you actually decide to trade gold.
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If you like to open a position you need to place an "entry" order. When an entry order executes, the position becomes "open" and it starts its life in the forex market. At any point in time, you can place an "exit" order to "close" the position. A position can be "long" (entry order is to buy and exit order is to sell an instrument) or "short" (entry order is to sell and exit order is to buy an instrument).
When trading forex you will often see a two-sided quote, consisting of a 'bid' and 'offer'. The 'bid' is the price at which you can sell the base currency (at the same time buying the counter currency). The 'ask' is the price at which you can buy the base currency (at the same time selling the counter currency).
At a point when you place your entry order, you need to define price level at which you want to buy or sell certain instrument. You also need to specify type of the order and quantity of the instrument you want to trade. There are 3 order types:
Market Order
Placing a market order means that you will buy at your broker's current "ask" (or "offer") price, or sell at your broker's current "bid" price, whatever that price currently is. For example, suppose you are buying EUR/USD. The current market, as quoted by your broker is 1.2934 / 1.2938. This means that your broker is willing to buy EUR/USD from you at 1.2934, and sell it to you at 1.2938.
Stop Order
Initiating a trade with a stop order means that you will only open a position if the market moves in the direction you are anticipating. For example, if USD/JPY is currently 108.72 and you believe it will move higher, you could place a stop order to buy at 108.82. This means that the order will only be executed if the market moves up to 108.82. The advantage is that if you are wrong and the market moves straight down, you will not have bought (because 108.82 will never have been reached). The disadvantage is that 108.82 is clearly a less attractive rate at which to buy than 108.72. Opening a position with a stop order is usually appropriate if you wish to trade only with strong market momentum in a particular direction.
Limit Order
A limit order is an order to buy below the current price, or sell above the current price. For example, if EUR/USD is trading at 1.2952 / 56 and you believe the market will rise, you could place a limit order to buy at 1.2945. If executed, this will give you a long position in EUR/USD at 1.2945, which is 11 pips better than if you had just bought EUR/USD with a market order. The disadvantage of the limit order is that if EUR/USD moves straight up from 1.2952 / 56, your limit at 1.2945 will never be filled and you will miss out on the profit opportunity even though your view on the direction of EUR/USD was correct. Opening a position with a limit order is usually appropriate if you believe that the market will remain in a range before moving in your anticipated direction, allowing the order to be filled first.
For both entry and exits orders you can specify price levels at which you want them to be executed. You have to specify entry levels when you place you entry order, while most brokers would allow you to specify exit levels at any time.
Experienced traders will often say "trend is your friend" or "do not overtrade". What does it mean? The explanation below will lead you to pages where you can read more about basic trading guidelines. It is just basics - you will need to read much more related literature to become a successful trader.
Common Guidelines: Plan your trade and trade your plan: You must have a trading plan to succeed. A trading plan should consist of a position, why you enter, stop loss point, profit taking level, plus a sound money management strategy. A good plan will remove all the emotions from your trades.
The trend is your friend: Do not buck the trend. When the market is bullish, go long. On the reverse, if the market is bearish, you short. Never go against the trend.
Focus on capital preservation: This is the most important step that you must take when you deal with your trading capital. You main goal is to preserve the capital. Do not trade more than 10% of your deposit in a single trade. For example, if your total deposit is $10,000, every trade should limit to $1000. If you don't do this, you'll be out of the market very soon.
Know when to cut loss: If a trade goes against you, sell it and let go. Do not hold on to a bad trade hoping that the price will go up. Most likely, you end up losing more money. Before you enter a trade, decide your stop loss price, a price where you must sell when the trade turns sour. It depends on your risk profile as of how much you should set for the stop loss.
Take profit when the trade is good: Before entering a trade, decide how much profit you are willing to take. When a trade turns out to be good, take the profit. You can take profit all at one go, or take profit in stages. When you've recovered your trading cost, you have nothing to lose. Sit tight and watch the profit run.
Be emotionless: Two biggest emotions in trading: greed and fear. Do not let greed and fear influence your trade. Trading is a mechanical process and it's not for the emotional ones. As Dr. Alexander Elder said in his book "Trading For A Living", if you sit in front of a successful trader and observe how he trades, you might not be able to tell whether he is making or losing money. That's how emotionally stable a successful trader is.
Do not trade based on a tip from a friend or broker: Trade only when you have done your own research and analysis. Be an informed trader.
Keep a trading journal: When you buy a currency or stock, write down the reasons why you buy, and your feelings at that time. You do the same when you sell. Analyze and write down the mistakes you've made, as well as things that you've done right. By referring to your trading journal, you learn from your past mistakes. Improve on your mistakes, keep learning and keep improving.
When in doubt, stay out: When you have doubt and not sure where the market or stock is going, stay on the sideline. Sometimes, doing nothing is the best thing to do.
Do not overtrade: Ideally you should have 3-5 positions at a time. No more than that. If you have too many positions, you tend to be out of control and make emotional decisions when there is a change in market. Do not trade for the sake of trading.
An overview into modern Forex software systems and the Easy-Forex Trading Platform
Foreign Exchange (Forex) software is designed to allow end users to trade currencies online in a real time, secure, private and efficient manner.
The major issues that a foreign exchange software platform should address are:
* Real-time- providing constantly up-to-date exchange rates in increments of a few seconds. These rates, in contrast to traditional bank rates, are actual, tradable Forex quotes. Once you decide to trade on a currency you can "lock" in a rate and this will be the actual rate at which the transaction will take place.
* Security, privacy and data integrity- for any user performing financial transactions over the Internet, this is a main issue. This point is further emphasized with Forex trading software, where the amounts traded may be significant. Forex trading software must be designed with the highest level of data security, integrity and privacy. Most systems use at least one layer of at least 64-bit SSL encryption, as well as various data backup and recovery methods and procedures.
* 24x7 availability - providing updated Forex quotes 24x7 and allowing a trade any time of the week.
Web-based versus downloaded Forex software
Forex software comes in two main forms - web-based and client-side Forex software:
Web-based Forex software system
Web-based Forex software means that all the operations are performed on the vendor's website, pending user verification. That means that users are offered a familiar, web-based interface, to perform their desired operations. The advantages of such a system are:
* No need to download and install proprietary software
* Log in anywhere, anytime. A web-based system allows instant access to a user account, from any Internet connected computer.
* Familiar and friendly, web-based user interface.
Client side Forex software system
Client-side Forex software is a program that a user downloads and installs to gain access to the Forex markets. The software communicates with the vendor's server offering Forex services.
Easy-Forex Trading Platform
Easy-Forex offers a web-based Forex trading system. We believe in making foreign exchange easy, thus we offer a friendly, fast, secure, no-download, web-based Forex system to allow even the novice Forex investor easy access to the Forex markets.
With regard to our backend, Easy-Forex has two different server farms in different locations to ensure backup and recovery. Each server farm uses load-balancing software to balance the load handled by each node and to ensure an immediate, real time response to any user operation.
We accept credit cards, pending approval by the credit card company. Please read more about the robustness of our system in the sections describing the security and real-time aspects of our Forex software.
