These days, people hardly use cash for anything anymore. It is always a credit card or debit card, which is a charge card where money is taken directly from a person's account. So, it becomes difficult if they are asked to pay cash or worse still when they are asked to make a cash investment.
Sometimes people are flummoxed with such requests, but these are not make believe, they do exist. There is the spot forex trading where people trade in cash and the market is called spot market. Since foreign exchange trading does not have any office space, the deal is made over the counter between the two parties involved. Earlier when there were only big companies and multi-national banks, they had only trading that went on for a couple of days. But with the advent of new companies and many more people being interested in investing in this forex market, the spot forex trading has come into being. And this is where most of the new companies or smaller organizations make their investments and get good returns.
Most people are very cautious when it comes to parting with their money, and more so if the person is scared of taking risks and losing out what they have earned over the years. So, if a person is not keen on taking risks, they need to stay away from the spot forex trading. One must evaluate their financial standing, and calculate how much risk they can take and the amount of loss that they will be able to handle or manage.
This will let them know what their investing abilities are and decide if they qualify to invest in the spot market. Also one must not invest money unless it is disposable and a surplus, because any unexpected losses could set them back quite a bit and it could take them a long time to get back on their feet. In this market, the traders have the liberty to control the trend and they can close or open the deal whenever they want.
Choosing a strong currency pair is the first lesson one learns when they enter the forex trading arena, and if a person is willing to enter the spot trading scene, they must have adequate knowledge. And they should follow the market trend so they can make an entry and stay with the same for a while, instead of pulling out right away. The longer a trend is, the more their returns are likely to be, and if it is a short one, they will end up making multiple investments and entries into the trade. For seasoned players, the indicators act as signals keeping them informed of the market and its flow, giving them the choice to pull out whenever the flow is going against their predictions. Since one trades on currency pairs, they need to keep watch on both the currencies and not just theirs. This will determine where their money is going and the returns they can earn.
Nick Schultz is a Forex Trading expert who recently developed an eCourse that details a step by step process for success Forex investing. If you are interested in learning more about his "9 Steps to Better Forex Investing" eCourse and learning how to make greater profits from your Forex Trading, please go here right now! : http://www.forexinvestingcourse.com
Thursday, December 27, 2007
Wednesday, December 26, 2007
Online Investing and Forex Trading
Online trading has caused a major paradigm shift in investing. At the turn of the millennium, there are over 6 million online investment accounts, up from 1.5 million in 1997. As a result, start-up firms now compete directly with financial institutions to serve investors in the new Economy, and the clear winner is the customer.
The competition between the brick and mortar institutions and the Internet-based companies has dramatically lowered the costs of investing, and empowered the individual investor to take control of their own investment strategy.
On-line trading will revolutionize the currency markets by making it accessible to the small and medium sized investor. For the first time, these investors have the ability to execute transactions of between $100,000 and $10,000,000 at the same prices the Interbank market offers for deals well over $10,000,000. This benefits both those who wish to speculate on the direction of the currency markets for profit, as well as the money manager or corporate treasurer looking to hedge against unwanted exposure to future price fluctuations in the currency markets. I am going to discuss the Benefits of Trading Forex.
Very few on-line brokers are able to offer their clients real-time bid/ask quotes, which facilitates instantaneous deal execution - no missed market opportunities. Real-time prices also allow investors to compare an on-line broker's dealing spread with that of other pricing services, to ensure they are receiving the best possible price on all their Forex transactions.
Many on-line Forex brokers require their clients to request a price before dealing. This is disadvantageous for a number of reasons, primarily because it significantly lengthens the execution process from just a few seconds to possibly as long as a minute. In a fast paced market, this could make a significant difference in an investor's profit potential. Also, some of the more unscrupulous brokers may use the opportunity to look at an investor's current position. Once they have determined whether the investor is a buyer or a seller, they 'shade' the price to increase their own profit on the transaction.
Timing is everything in the fast-paced Forex market. On-line trades are executed and confirmed within seconds, which ensures that traders do not miss market opportunities. Even the incremental extra time it takes to complete a transaction over the phone can mean a big difference in profit potential. Introduction simply, executing trades electronically reduces manual effort, thereby lowering the costs of doing business. On-line brokers are then able to pass along the savings to their client base. The fast-paced nature of the Forex market compels traders to execute multiple trades each day. It is vital for each client to have real-time information about their current position in order to make well-informed trading decisions.
Access to timely and relevant information is critical. Professional traders pay thousands of dollars each month for access to major information providers. However, the very nature of the Internet affords users free access to reliable market information from a variety of sources, including real-time price quotes, international news, government-issued economic indicators and reports, as well as subjective information such as expert commentary and analysis, trader chat forums etc.
The main advantage of the Forex market over any exchange-traded instruments is that the Forex market is a true 24-hour market. Whether it's 6pm or 6am, somewhere in the world there are always buyers and sellers actively trading Forex so that investors can respond to breaking news immediately. In the currency markets, your portfolio won't be affected by after hours earning reports or analyst conference calls. The ECNs (Electronic Communication Networks) exist to bring together buyers and sellers when possible.
The competition between the brick and mortar institutions and the Internet-based companies has dramatically lowered the costs of investing, and empowered the individual investor to take control of their own investment strategy.
On-line trading will revolutionize the currency markets by making it accessible to the small and medium sized investor. For the first time, these investors have the ability to execute transactions of between $100,000 and $10,000,000 at the same prices the Interbank market offers for deals well over $10,000,000. This benefits both those who wish to speculate on the direction of the currency markets for profit, as well as the money manager or corporate treasurer looking to hedge against unwanted exposure to future price fluctuations in the currency markets. I am going to discuss the Benefits of Trading Forex.
Very few on-line brokers are able to offer their clients real-time bid/ask quotes, which facilitates instantaneous deal execution - no missed market opportunities. Real-time prices also allow investors to compare an on-line broker's dealing spread with that of other pricing services, to ensure they are receiving the best possible price on all their Forex transactions.
Many on-line Forex brokers require their clients to request a price before dealing. This is disadvantageous for a number of reasons, primarily because it significantly lengthens the execution process from just a few seconds to possibly as long as a minute. In a fast paced market, this could make a significant difference in an investor's profit potential. Also, some of the more unscrupulous brokers may use the opportunity to look at an investor's current position. Once they have determined whether the investor is a buyer or a seller, they 'shade' the price to increase their own profit on the transaction.
Timing is everything in the fast-paced Forex market. On-line trades are executed and confirmed within seconds, which ensures that traders do not miss market opportunities. Even the incremental extra time it takes to complete a transaction over the phone can mean a big difference in profit potential. Introduction simply, executing trades electronically reduces manual effort, thereby lowering the costs of doing business. On-line brokers are then able to pass along the savings to their client base. The fast-paced nature of the Forex market compels traders to execute multiple trades each day. It is vital for each client to have real-time information about their current position in order to make well-informed trading decisions.
Access to timely and relevant information is critical. Professional traders pay thousands of dollars each month for access to major information providers. However, the very nature of the Internet affords users free access to reliable market information from a variety of sources, including real-time price quotes, international news, government-issued economic indicators and reports, as well as subjective information such as expert commentary and analysis, trader chat forums etc.
The main advantage of the Forex market over any exchange-traded instruments is that the Forex market is a true 24-hour market. Whether it's 6pm or 6am, somewhere in the world there are always buyers and sellers actively trading Forex so that investors can respond to breaking news immediately. In the currency markets, your portfolio won't be affected by after hours earning reports or analyst conference calls. The ECNs (Electronic Communication Networks) exist to bring together buyers and sellers when possible.
Tuesday, December 25, 2007
So... Can I Really Be A Successful Forex Trader?
Well, this is a question I asked myself after several months of Trading Forex............. After many, many nights, and days too, of purchasing, learning and digesting Forex courses, purchasing various trading methods, and those 500 to 1000 pips a month Forex services, I still found myself with a huge hole in my initial capital.
And, as the days went by, slowly, and surely my dreams of financial and personal freedom began to fade. Was I a failure? Was I not intelligent enough to become a trader? After all, these city trader types all have top degree's, come from an affluent background, and drive around in Porche's and Aston Martin convertibles........ right? WRONG! I now regularly have the opportunity to talk with real successful traders, and believe me, they do not fit that stereotype! Except maybe the cars! So, the real truth is - Yes, you can become a successful Forex Trader! You just need to learn to trade!
First and foremost you absolutely have to remember, Forex is a business just like any other business, and from Day 1, you have to treat it as such. My first mistake was thinking I just had to log onto the internet in the morning, look at a few charts, open my Broker platform, log onto my recently subscribed Service, make a few trades, and by lunchtime I'd have money in the bank, and the rest of the day to do as I pleased! And the next day I'd go and do exactly the same - easy! After all, I had been sold promises and dreams, and I was chasing the dream of riches....................... not the dream of becoming a successful trader.
There lies a problem! Nearly all successful businessman, in whatever business they choose, started with dreams of owning and running a successful business or, if you look at the sporting world, dreams of becoming the best in their chosen sport - World Champion even! Sure, most of these people will have become very wealthy in the process, but that is a by-product of being very successful in their chosen field! So, what you have to do is look at the ingredients to their success in their chosen field? Well I can tell you that fundamentally, it is passion, committment, hunger and desire. If you are in Forex just to chase the incredible potential rewards available, and that is your sole focus, there is a high probability, you will not walk the path of success.
What happened to me in my early months of trading forex (as well as losing money of course!), was that I developed a passion for the Forex Markets. I cannot see myself ever not trading now - I absolutely love it! And because of that, my focus shifted from searching out the next Forex Service promising me 100's of pips every month, to developing my skills and achieving my new goal of being the best trader possible. And that will be an ever evolving process until the day I hang up my keyboard..... World Champions and Successful Business owners are always looking to improve their performance - its what makes them who they are!
So, first and foremost - have a passion for Forex. If you don't, learning to be a successful Forex trader will be disheartening. Can you imagine reading lots of material on a subject you have no desire in? Reading for 10 mins will seem like 10 hours, and then its no fun - and if its no fun, you won't serious about it for very long! Also, have a business plan! Its a business, and no successful business was built without a plan. When you have a business plan, create a Trading Plan. This will be your rule book. Kind of like Company Policy! And as we know, there are consequences for not following Company Policy..... and in Forex, that consequence is usually an unecessary loss on your trading account
And, as the days went by, slowly, and surely my dreams of financial and personal freedom began to fade. Was I a failure? Was I not intelligent enough to become a trader? After all, these city trader types all have top degree's, come from an affluent background, and drive around in Porche's and Aston Martin convertibles........ right? WRONG! I now regularly have the opportunity to talk with real successful traders, and believe me, they do not fit that stereotype! Except maybe the cars! So, the real truth is - Yes, you can become a successful Forex Trader! You just need to learn to trade!
First and foremost you absolutely have to remember, Forex is a business just like any other business, and from Day 1, you have to treat it as such. My first mistake was thinking I just had to log onto the internet in the morning, look at a few charts, open my Broker platform, log onto my recently subscribed Service, make a few trades, and by lunchtime I'd have money in the bank, and the rest of the day to do as I pleased! And the next day I'd go and do exactly the same - easy! After all, I had been sold promises and dreams, and I was chasing the dream of riches....................... not the dream of becoming a successful trader.
There lies a problem! Nearly all successful businessman, in whatever business they choose, started with dreams of owning and running a successful business or, if you look at the sporting world, dreams of becoming the best in their chosen sport - World Champion even! Sure, most of these people will have become very wealthy in the process, but that is a by-product of being very successful in their chosen field! So, what you have to do is look at the ingredients to their success in their chosen field? Well I can tell you that fundamentally, it is passion, committment, hunger and desire. If you are in Forex just to chase the incredible potential rewards available, and that is your sole focus, there is a high probability, you will not walk the path of success.
What happened to me in my early months of trading forex (as well as losing money of course!), was that I developed a passion for the Forex Markets. I cannot see myself ever not trading now - I absolutely love it! And because of that, my focus shifted from searching out the next Forex Service promising me 100's of pips every month, to developing my skills and achieving my new goal of being the best trader possible. And that will be an ever evolving process until the day I hang up my keyboard..... World Champions and Successful Business owners are always looking to improve their performance - its what makes them who they are!
So, first and foremost - have a passion for Forex. If you don't, learning to be a successful Forex trader will be disheartening. Can you imagine reading lots of material on a subject you have no desire in? Reading for 10 mins will seem like 10 hours, and then its no fun - and if its no fun, you won't serious about it for very long! Also, have a business plan! Its a business, and no successful business was built without a plan. When you have a business plan, create a Trading Plan. This will be your rule book. Kind of like Company Policy! And as we know, there are consequences for not following Company Policy..... and in Forex, that consequence is usually an unecessary loss on your trading account
Monday, December 24, 2007
Essential forex trading
Once the decision has been made that you are going to invest in the foreign exchange market, you will need to know a few essentials forex trading facts to get your through. Forex trading is the largest financial market in the world with more than two million dollars being traded every working day across the world. Today the number of individuals involved in this is as high as the banks and other companies that are involved here.
To be a successful forex trader, one needs to be equipped with not only adequate information but also with the ability to think on their feet. They need to predict the future based on the reports being generated and watch the market and note for any change in the political or economic scenario of the other country.
These are two factors that have the most influence on a currency's rate. Understanding the terminologies used is the first step to survive in the forex world, and the person should be level headed and always be in control of the money they invest in this trade. If they get sucked into the initial excitement they might end up making wrong decisions and losing out all their money.
There are a couple of other essentials forex trading rules as -
1. Sensible thinking -
Do not believe all you read on the websites about how one can become an overnight millionaire by trading in the forex market. One needs to know that the market is no doubt the most liquid in the world but also filled with unpleasant surprises that could turn your world upside down if attention is not paid.
Read up as much as possible and gather plenty of information on the trade and how one needs to approach it before getting involved in it.
2. Day trading is the way to go -
If you are thinking of getting into day trading at your first attempt, think twice. This mode of trading no doubt will yield high returns but for a first timer, it is better to open a mini account and play it safe and then get adventurous after you have some experience. Since here the trading is just for a day, meaning for a short duration, there is no way we can predict the future and make investments based on that.
3. Risk and rewards
The amount of risk involved in forex trading is quite high and so one must be willing to take the chance if they want high returns. As the saying goes "no pain, no gain". Here too one needs to let the market take its course and while investing you need to calculate the risk and then invest. Even if you make small lots of investments there is a risk factor involved, though it might be less, but the returns on these investments are also less. It is always directly proportionate to the amount of risk you are willing to endure.
For a person to sustain the obstacles and come out alive, they need to follow these essentials forex trading rules and act upon them.
Nick Schultz is a Forex Trading expert who recently developed an eCourse that details a step by step process for success Forex investing. If you are interested in learning more about his "9 Steps to Better Forex Investing" eCourse and learning how to make greater profits from your Forex Trading, please go here right now! : http://www.forexinvestingcourse.com
To be a successful forex trader, one needs to be equipped with not only adequate information but also with the ability to think on their feet. They need to predict the future based on the reports being generated and watch the market and note for any change in the political or economic scenario of the other country.
These are two factors that have the most influence on a currency's rate. Understanding the terminologies used is the first step to survive in the forex world, and the person should be level headed and always be in control of the money they invest in this trade. If they get sucked into the initial excitement they might end up making wrong decisions and losing out all their money.
There are a couple of other essentials forex trading rules as -
1. Sensible thinking -
Do not believe all you read on the websites about how one can become an overnight millionaire by trading in the forex market. One needs to know that the market is no doubt the most liquid in the world but also filled with unpleasant surprises that could turn your world upside down if attention is not paid.
Read up as much as possible and gather plenty of information on the trade and how one needs to approach it before getting involved in it.
2. Day trading is the way to go -
If you are thinking of getting into day trading at your first attempt, think twice. This mode of trading no doubt will yield high returns but for a first timer, it is better to open a mini account and play it safe and then get adventurous after you have some experience. Since here the trading is just for a day, meaning for a short duration, there is no way we can predict the future and make investments based on that.
3. Risk and rewards
The amount of risk involved in forex trading is quite high and so one must be willing to take the chance if they want high returns. As the saying goes "no pain, no gain". Here too one needs to let the market take its course and while investing you need to calculate the risk and then invest. Even if you make small lots of investments there is a risk factor involved, though it might be less, but the returns on these investments are also less. It is always directly proportionate to the amount of risk you are willing to endure.
For a person to sustain the obstacles and come out alive, they need to follow these essentials forex trading rules and act upon them.
Nick Schultz is a Forex Trading expert who recently developed an eCourse that details a step by step process for success Forex investing. If you are interested in learning more about his "9 Steps to Better Forex Investing" eCourse and learning how to make greater profits from your Forex Trading, please go here right now! : http://www.forexinvestingcourse.com
Sunday, December 23, 2007
Profitable Trend Forex System - Secret To Forex Success
Profitable Trend Forex System was created by veteran trader John Chen, and is a serious competitor in terms of forex trading systems. There is a lot of material on the web detailing which are the most successful currency trading systems. One thing every currency trader will agree with is that you definitely need some form of system to be able to trade profitably and consistently on the marketplace.
Never Have A Single Losing Month
This is essentially a far-fetched dream for the majority of forex traders, but not so for John Chen. Many would scoff at this statistic and want to see the proof of such a claim, which is fair enough. The system itself is incredibly complex, but there are most certainly some fundamentals which can be applied to any currency trading system.
There are 3 core elements at the core of Profitable Trend Forex System these are: favouring the medium term trade, identifying the trend and joining the trend with precise timing.
Favoring The Medium Term Trade
It has been proven statistically that if you want to generate consistent profits on the forex market, it is advisable to favour the medium term trade. As Justin Kuepper, a contributor to Investopedia.com, suggests favouring a medium term trade will "help you save money and ultimately become a profitable retail forex trader".
Identifying The Trend
Most forex trading systems are good at identifying trends once they have started, but to actually identify a trend as it is starting is another thing altogether. Imagine the profit potential if you could literally see a trend emerging. This is a sophisticated and intelligent element every currency trader needs to understand.
Acting Upon The Trend With Precise Timing
It is all good and well to see a trend emerging on the forex market, but to also know when exactly to act upon it for profit potential, well, that would almost be unfair. And it is. Imagine being told exactly when to invest, and when to pull out. This is essentially forex automation at its most brilliant best. If you find a system such as Profitable Trend Forex, that will provide such detailed information, you will be well on your way to big profits.
Conclusion
If you want to take the risk out of forex trading, and finally realize some serious profits, you are going to need some sort of forex trading system. The key to this system is the ability to interpret information, and base decisions on the likelihood for success and ultimately profit.
Never Have A Single Losing Month
This is essentially a far-fetched dream for the majority of forex traders, but not so for John Chen. Many would scoff at this statistic and want to see the proof of such a claim, which is fair enough. The system itself is incredibly complex, but there are most certainly some fundamentals which can be applied to any currency trading system.
There are 3 core elements at the core of Profitable Trend Forex System these are: favouring the medium term trade, identifying the trend and joining the trend with precise timing.
Favoring The Medium Term Trade
It has been proven statistically that if you want to generate consistent profits on the forex market, it is advisable to favour the medium term trade. As Justin Kuepper, a contributor to Investopedia.com, suggests favouring a medium term trade will "help you save money and ultimately become a profitable retail forex trader".
Identifying The Trend
Most forex trading systems are good at identifying trends once they have started, but to actually identify a trend as it is starting is another thing altogether. Imagine the profit potential if you could literally see a trend emerging. This is a sophisticated and intelligent element every currency trader needs to understand.
Acting Upon The Trend With Precise Timing
It is all good and well to see a trend emerging on the forex market, but to also know when exactly to act upon it for profit potential, well, that would almost be unfair. And it is. Imagine being told exactly when to invest, and when to pull out. This is essentially forex automation at its most brilliant best. If you find a system such as Profitable Trend Forex, that will provide such detailed information, you will be well on your way to big profits.
Conclusion
If you want to take the risk out of forex trading, and finally realize some serious profits, you are going to need some sort of forex trading system. The key to this system is the ability to interpret information, and base decisions on the likelihood for success and ultimately profit.
Thursday, December 20, 2007
Forex Trading and Currency Exchange
"The economic health of every Country is a proper matter of concern to all its neighbors, near and far." --Franklin D. Roosevelt at the opening of Bretton Woods Conference that set the basis of the modern currency exchange system.
Forex trading and currency exchange find they first roots in the Bretton Woods Conference of 1944 that aimed at putting into place a system of exchange rate management that, although did not become fully operative until 1959, as a matter of fact remained into place until 1971.
The main feature of the Bretton Woods system was the obligation for each Country partecipating at the agreement to adopt a monetary policy that maintained the exchange rate of its currency within a fixed range; in addition, the IMF should have the power to bridge imbalances (temporarily). This is exactly what fores is not about: forex trading has at its base a floating currency exchange regime, that is, a model that uses a floating exchange rate at the base of its exchange rate system. How would it be possible to trade foreign currency (forex) imbalances if the rates were de facto fixed or "pegged" against each other?
But it is indeed the Bretton Woods that allowed currencies (first the dollar against the British pound, and subsequently against other major world currencies) to float by proving that its model -- in which the central government or central bank announces the official value of their currency and then maintains its actual market rate -- was inadequate to the economic reality governing the world economy (and if this was true in 1971 the more so now in 2007).
Forex trading as we know it and understand it today was thus actually born at the end of the 70s: currency were allowed to float and this represented a giant leap to the precedent system, where the US Dollarwas the reserve currency for all Countries and all currencies were linked to the dollar, which in turns was pegged to the gold (at $35 per ounce, for history sake).
Forex trading became very quickly a strong force and driver of the economy not just of one single Country, but of the whole World: currencies could be traded by anybody (although not anybody in the sense that we mean today in 2007, that is, the retail forex trader: back at the beginning of forex trading "anybody" meant large banks, central banks, governments, and major multinational corporations) and their value was dictated by current market supply and demand forces.
As a market influencing the world economy, it should not come as a surprise that forex trading and currency exchange has experienced an exponential growth in volume and value since currencies were allowed to float against each other: specifically, the market turnover per day at the end of the 70s was about US$5 billion, it increased to US$600 billion in 1987, reached the $1 trillion level in 1992, reaching the $3 trillions mark in 2007.
The actual volume of forex trading is it however difficult to estimated precisaly; nevertheless, what is certain is that the FX market is not yet stabilized (and probably never will) as the full potential of forex trading, bringing unmatched opportunities to forex traders, has still to be discovered -- and exploited -- by millions of retail investors worldwide, willing to take part into the most fascinating world of forex trading and currency exchange.
Forex trading and currency exchange find they first roots in the Bretton Woods Conference of 1944 that aimed at putting into place a system of exchange rate management that, although did not become fully operative until 1959, as a matter of fact remained into place until 1971.
The main feature of the Bretton Woods system was the obligation for each Country partecipating at the agreement to adopt a monetary policy that maintained the exchange rate of its currency within a fixed range; in addition, the IMF should have the power to bridge imbalances (temporarily). This is exactly what fores is not about: forex trading has at its base a floating currency exchange regime, that is, a model that uses a floating exchange rate at the base of its exchange rate system. How would it be possible to trade foreign currency (forex) imbalances if the rates were de facto fixed or "pegged" against each other?
But it is indeed the Bretton Woods that allowed currencies (first the dollar against the British pound, and subsequently against other major world currencies) to float by proving that its model -- in which the central government or central bank announces the official value of their currency and then maintains its actual market rate -- was inadequate to the economic reality governing the world economy (and if this was true in 1971 the more so now in 2007).
Forex trading as we know it and understand it today was thus actually born at the end of the 70s: currency were allowed to float and this represented a giant leap to the precedent system, where the US Dollarwas the reserve currency for all Countries and all currencies were linked to the dollar, which in turns was pegged to the gold (at $35 per ounce, for history sake).
Forex trading became very quickly a strong force and driver of the economy not just of one single Country, but of the whole World: currencies could be traded by anybody (although not anybody in the sense that we mean today in 2007, that is, the retail forex trader: back at the beginning of forex trading "anybody" meant large banks, central banks, governments, and major multinational corporations) and their value was dictated by current market supply and demand forces.
As a market influencing the world economy, it should not come as a surprise that forex trading and currency exchange has experienced an exponential growth in volume and value since currencies were allowed to float against each other: specifically, the market turnover per day at the end of the 70s was about US$5 billion, it increased to US$600 billion in 1987, reached the $1 trillion level in 1992, reaching the $3 trillions mark in 2007.
The actual volume of forex trading is it however difficult to estimated precisaly; nevertheless, what is certain is that the FX market is not yet stabilized (and probably never will) as the full potential of forex trading, bringing unmatched opportunities to forex traders, has still to be discovered -- and exploited -- by millions of retail investors worldwide, willing to take part into the most fascinating world of forex trading and currency exchange.
Wednesday, December 19, 2007
The Great Things with Forex Mini Trading
For most people, participating in any forex trading seem to entail or involve a huge startup capital, thus discouraging them from accepting any proposal to trade in forex. These people would remain trading shares and stocks, which they perceive are more viable for their financial capability. But, there is a very good option for people who want to be in forex trading but have little capital -- forex mini trading.
The great thing about this is that one can earn a lot of profit as well as set time for pleasure when participating in forex mini trading. This uses a different leverage calculation than regular forex trading, though both are more or less the same in features.
With regular forex trading, 100,000 currency units is the size of the currency lots. Forex mini trading, on the other hand, will only entail 10,000 currency units, or just a tenth of the currency lot of regular forex trading. This results in lesser risks if one stands to lose.
This is how forex mini trading can work for you:
1. It has a low minimum starting capital. It only takes $300 to start a forex mini account. This is, in fact, very affordable for people who want to get into forex trading. With this investment, one can have the potential of earning profits in a very short time.
2. You can get a high leverage of up to 200:1 in a forex mini account. A small margin deposit requirement of $50 per lot traded is given. A high leverage is a great way to achieve a huge profit in a short time, and this is evident in forex mini trading.
3. In forex trading, one pip is equal to one dollar. There is only a small amount of risk when one trades in pips. For example, if one has a 30-pip floating loss, this amounts to only $30 in losses, which is smaller than a $300 loss in a 100K account. This makes the trader more disciplined in his dealings.
4. You can start with smaller trade sizes. The contract size in forex mini trading is 10,000 units, which is only a tenth of the standard account. This allows less risk in trading. One can increase trading as he or she gains valuable experience. This would mean more profits in the future since one has acquired discipline in trading from the very beginning.
Though you may only be trading with a mini account, all the benefits associated will full-size forex trading account will be enjoyed by the trader. This includes the modern trading software, resources, charts and so much more. As mentioned above, forex mini trading is ideal for beginners to forex trading since they can develop discipline and rationality in trading as well as lessen their losses.
The great thing about this is that one can earn a lot of profit as well as set time for pleasure when participating in forex mini trading. This uses a different leverage calculation than regular forex trading, though both are more or less the same in features.
With regular forex trading, 100,000 currency units is the size of the currency lots. Forex mini trading, on the other hand, will only entail 10,000 currency units, or just a tenth of the currency lot of regular forex trading. This results in lesser risks if one stands to lose.
This is how forex mini trading can work for you:
1. It has a low minimum starting capital. It only takes $300 to start a forex mini account. This is, in fact, very affordable for people who want to get into forex trading. With this investment, one can have the potential of earning profits in a very short time.
2. You can get a high leverage of up to 200:1 in a forex mini account. A small margin deposit requirement of $50 per lot traded is given. A high leverage is a great way to achieve a huge profit in a short time, and this is evident in forex mini trading.
3. In forex trading, one pip is equal to one dollar. There is only a small amount of risk when one trades in pips. For example, if one has a 30-pip floating loss, this amounts to only $30 in losses, which is smaller than a $300 loss in a 100K account. This makes the trader more disciplined in his dealings.
4. You can start with smaller trade sizes. The contract size in forex mini trading is 10,000 units, which is only a tenth of the standard account. This allows less risk in trading. One can increase trading as he or she gains valuable experience. This would mean more profits in the future since one has acquired discipline in trading from the very beginning.
Though you may only be trading with a mini account, all the benefits associated will full-size forex trading account will be enjoyed by the trader. This includes the modern trading software, resources, charts and so much more. As mentioned above, forex mini trading is ideal for beginners to forex trading since they can develop discipline and rationality in trading as well as lessen their losses.
Tuesday, December 18, 2007
Make Money and Succeed in Forex Trading
To a newbie learning Online Forex Trading, it looks very simple in the beginning. Take currency pair EURUSD for instance, if you bullish on Euro, simply place a Buy order. Bearish on EUR, just short it. So easy, you may ask? The truth about Forex Trading is that it is a professional activity that not many traders will succeed.
This being the first article on my Blog, I will just go through a few very straight forward pointers on how to consistently generate Forex pips. In the world of Forex currency trading, many newbie traders believe that Forex trading software or system that contains rocket science is more likely able to make money. It may be true, but how many of us will be able to find such a system or methodology? Why not just spend time and money to learn systems or trading methods that are simple but works? In the Forex currency trading, the fact is simple systems just work best.
Simple systems are more robust and easier to trade as you understand the logic and can therefore follow it with confidence when you are in a losing streak. I personally feel that it is much simpler to trade with the trends rather than the ranging market. For many successful traders, once they are happy with a system or methodology, they stick with it. Remember, you only make money trading Forex, and not having 100 systems or trading methodologies but trading none of them.
In Forex trading, most traders succeeded primarily due to good money management. So long as your system or trading methodologies has a positive profit factor coupled with proper money management, you will succeed in the long run.
JoonTrader is the owner of forexdiscover.com. For further recommended resources on how to make money in Forex Trading. Click here to grab the secret to consistent pips.
This being the first article on my Blog, I will just go through a few very straight forward pointers on how to consistently generate Forex pips. In the world of Forex currency trading, many newbie traders believe that Forex trading software or system that contains rocket science is more likely able to make money. It may be true, but how many of us will be able to find such a system or methodology? Why not just spend time and money to learn systems or trading methods that are simple but works? In the Forex currency trading, the fact is simple systems just work best.
Simple systems are more robust and easier to trade as you understand the logic and can therefore follow it with confidence when you are in a losing streak. I personally feel that it is much simpler to trade with the trends rather than the ranging market. For many successful traders, once they are happy with a system or methodology, they stick with it. Remember, you only make money trading Forex, and not having 100 systems or trading methodologies but trading none of them.
In Forex trading, most traders succeeded primarily due to good money management. So long as your system or trading methodologies has a positive profit factor coupled with proper money management, you will succeed in the long run.
JoonTrader is the owner of forexdiscover.com. For further recommended resources on how to make money in Forex Trading. Click here to grab the secret to consistent pips.
Monday, December 17, 2007
Forex Trading as an Online Money Making Business
For many Forex Trading beginners, after many days and nights of learning and digesting Forex Trading courses, purchasing of various Forex Trading Software and Forex Trading System, you still find yourself with a huge hole in your initial capital.
As times go by, slowly, your dreams of financial freedom and success begin to fade. You will begin to ask yourself, are you a failure? Are you not intelligent enough to become a profitable Forex trader? After all, there are many successful Forex Trading experts out there who are living their Online Money Making dreams....
So the Money Making Online million dollar question - Are you cut out to be a profitable Forex Currency Trading trader? Yes, you can become a profitable Forex Trading Trader! You just need to treat Online Forex Trading like running a Successful Online Money Making Business.
Forex Trading Style
Similar to Stock Trading or any form Investment Trading. You must ask yourself - what is your Online Forex Trading style - news Forex Trading, swing Forex Trading, momentum Forex Trading, pattern Forex Trading and intraday or longer term Forex Trading? It is alright to have a "library" of Forex Trading style or setups, but most Money Making Foreign Currency trader does is to concentrate on a niche or particular Forex Trading style. Learn to do one thing consistently well instead of trying to master too many trading methodologies. You have to pick a style that suits you.
Online Forex Trading Plan
What is your Foreign Currency Trading plan? Before any trade entry, you have to ask yourself it this the right Set Up entry for your Forex Trading style? Where is your exact Forex Currency trade entry point? What are you Forex Trading Stop Loss target? What is your Forex Trading profit target?
Anyone involves in Foreign Currency Trading and not having a well defined stop loss is going to have their entire Online Forex Trading account wipe out before they even realized it. I knew someone did just that recently. A US$10,000 account was wiped out within a week without Stop Loss trading a few currency pairs. You also need to know what your Forex Trading profit target point is. What is the point of having an Online Money Making Forex Trading trade but your Forex Trading Account does not Make Money. For one simple reason, you didn't take the money from your Forex trade and market reversal against you.
Forex Trading Profit & Loss Plan Lots of Online Forex Trading beginners don't realized the important of reward to risk factor for every Forex Trading trade. You will never Make Money Online if you risk $500 but make $100.
Follow your Well-Defined Forex Trading Plan
Once you have written down a well-defined Online Forex Trading, you must have the Discipline to stick to it. All Forex Trading beginners must remember that Discipline and Money Management are the two most import aspects of Forex Trading. Even the greatest Forex Trading System or methodologies will fail if you can't stick to it.
JoonTrader is the owner of forexdiscover.com. For further recommended resources on how to make money in Forex Trading. Click here to grab the secret to consistent pips.
As times go by, slowly, your dreams of financial freedom and success begin to fade. You will begin to ask yourself, are you a failure? Are you not intelligent enough to become a profitable Forex trader? After all, there are many successful Forex Trading experts out there who are living their Online Money Making dreams....
So the Money Making Online million dollar question - Are you cut out to be a profitable Forex Currency Trading trader? Yes, you can become a profitable Forex Trading Trader! You just need to treat Online Forex Trading like running a Successful Online Money Making Business.
Forex Trading Style
Similar to Stock Trading or any form Investment Trading. You must ask yourself - what is your Online Forex Trading style - news Forex Trading, swing Forex Trading, momentum Forex Trading, pattern Forex Trading and intraday or longer term Forex Trading? It is alright to have a "library" of Forex Trading style or setups, but most Money Making Foreign Currency trader does is to concentrate on a niche or particular Forex Trading style. Learn to do one thing consistently well instead of trying to master too many trading methodologies. You have to pick a style that suits you.
Online Forex Trading Plan
What is your Foreign Currency Trading plan? Before any trade entry, you have to ask yourself it this the right Set Up entry for your Forex Trading style? Where is your exact Forex Currency trade entry point? What are you Forex Trading Stop Loss target? What is your Forex Trading profit target?
Anyone involves in Foreign Currency Trading and not having a well defined stop loss is going to have their entire Online Forex Trading account wipe out before they even realized it. I knew someone did just that recently. A US$10,000 account was wiped out within a week without Stop Loss trading a few currency pairs. You also need to know what your Forex Trading profit target point is. What is the point of having an Online Money Making Forex Trading trade but your Forex Trading Account does not Make Money. For one simple reason, you didn't take the money from your Forex trade and market reversal against you.
Forex Trading Profit & Loss Plan Lots of Online Forex Trading beginners don't realized the important of reward to risk factor for every Forex Trading trade. You will never Make Money Online if you risk $500 but make $100.
Follow your Well-Defined Forex Trading Plan
Once you have written down a well-defined Online Forex Trading, you must have the Discipline to stick to it. All Forex Trading beginners must remember that Discipline and Money Management are the two most import aspects of Forex Trading. Even the greatest Forex Trading System or methodologies will fail if you can't stick to it.
JoonTrader is the owner of forexdiscover.com. For further recommended resources on how to make money in Forex Trading. Click here to grab the secret to consistent pips.
Sunday, December 16, 2007
Currency Trading Success - Knowledge Is NOT the Key to Success
It always amazes me that people say that you need to learn lots of knowledge to enjoy currency trading success and its simply not true - you have to get the right knowledge and forex education and that should only take A week or so. Here we will look at the education you need.
Currency trading is essentially simple - anyone can learn to be a trader, but the fact is 95% of traders lose - so why is it that if everyone can learn currency trading don't most succeed?
Most traders fail to understand this equation:
Robust Method + Traded with discipline = Currency Trading Success
Let's look at this equation in more detail...
It's a fact that simple systems beat complicated ones, as they are more robust in the face of ever changing market conditions.
A complicated one simply has too many elements and they break.
Keep It Simple!
People make the mistake of thinking the harder they work, the more money they will make - but you don't get paid for hours of input. In currency trading, you get paid for being RIGHT with your currency trading signal and that's it.
Simple systems also have the benefit of being easier to understand and from understanding comes in and this means they are easier to apply with discipline.
If you don't have the confidence to apply your system with discipline, you have no currency trading system at all!
Its discipline which most traders lack and this comes from sometimes working to hard or just as bad following someone else's trading system without understanding it.
Today we like to think we can simply follow an expert or throw knowledge at a problem to solve it but in forex trading this is not the way to succeed.
An Illustration
A story that always influenced my trading was when I read about the turtle experiment which took place in 1983.
The essence of the experiment was to prove that anyone could learn to trade and legendary trader Richard Dennis gathered a group of traders together from all walks of life of all ages and educational levels and taught them to trade in just 14 days
The result?
These traders went on to make Richard Dennis $100 million and become some of the most famous traders of all time.
This experiment proved that anyone could learn and the system was essentially simple - the key to its success was the rigid money management discipline that the traders used.
Currency trading is essentially simple and anyone can do it but most traders choose not to learn the right forex education or follow others.
If you want to enjoy currency trading success, keep in mind that it comes from understanding and self belief which give you the all important traits of confidence and discipline.
Is it really that simple?
Currency trading is essentially simple - anyone can learn to be a trader, but the fact is 95% of traders lose - so why is it that if everyone can learn currency trading don't most succeed?
Most traders fail to understand this equation:
Robust Method + Traded with discipline = Currency Trading Success
Let's look at this equation in more detail...
It's a fact that simple systems beat complicated ones, as they are more robust in the face of ever changing market conditions.
A complicated one simply has too many elements and they break.
Keep It Simple!
People make the mistake of thinking the harder they work, the more money they will make - but you don't get paid for hours of input. In currency trading, you get paid for being RIGHT with your currency trading signal and that's it.
Simple systems also have the benefit of being easier to understand and from understanding comes in and this means they are easier to apply with discipline.
If you don't have the confidence to apply your system with discipline, you have no currency trading system at all!
Its discipline which most traders lack and this comes from sometimes working to hard or just as bad following someone else's trading system without understanding it.
Today we like to think we can simply follow an expert or throw knowledge at a problem to solve it but in forex trading this is not the way to succeed.
An Illustration
A story that always influenced my trading was when I read about the turtle experiment which took place in 1983.
The essence of the experiment was to prove that anyone could learn to trade and legendary trader Richard Dennis gathered a group of traders together from all walks of life of all ages and educational levels and taught them to trade in just 14 days
The result?
These traders went on to make Richard Dennis $100 million and become some of the most famous traders of all time.
This experiment proved that anyone could learn and the system was essentially simple - the key to its success was the rigid money management discipline that the traders used.
Currency trading is essentially simple and anyone can do it but most traders choose not to learn the right forex education or follow others.
If you want to enjoy currency trading success, keep in mind that it comes from understanding and self belief which give you the all important traits of confidence and discipline.
Is it really that simple?
Saturday, December 15, 2007
Forex-Currency Trading
What is FOREX? Forex is a shortform of Foreign Exchange. With a trading everyday almost USD$3billion, it is a good platform to gain much money everyday. Forex was opened to public since 1996,5 days a week. There are no excuses for a public holiday.
For a beginner,one's should know what was make the currency moves up and down. Yes,exactly economic of the country is the main factors. The strengthen or weakness of the currency normally moves like their economic growth.
To make money with Forex trading,one's should know what is the best time to make a trade. There are 3 main timing that normally has a same movement on the forex chart that is United States,United Kingdom and Japan. This what we called Forex Open/Closed Market.
Before involved yourself into real forex-your real money,i suggest don't do that. Try your performance from a demo account first! Forex is a best place to make you becomes rich,but it also has a high risk to makes you banckrupt. Remember,try in on demo with high dicipline and perfect money management. 90% trader loss because they didn't have this attitude. When you are ready to trade in real,go on.
In order to be perfect trader,you should know what is broker. You should know who are the best broker,is it okay if u makes a deposit to them. Knowing them well before you makes a fund. Make a research on their spread,swap,either they allowed with scalping or not,etc. For more information about forex,how to make a profit,you can refer to my blog
For a beginner,one's should know what was make the currency moves up and down. Yes,exactly economic of the country is the main factors. The strengthen or weakness of the currency normally moves like their economic growth.
To make money with Forex trading,one's should know what is the best time to make a trade. There are 3 main timing that normally has a same movement on the forex chart that is United States,United Kingdom and Japan. This what we called Forex Open/Closed Market.
Before involved yourself into real forex-your real money,i suggest don't do that. Try your performance from a demo account first! Forex is a best place to make you becomes rich,but it also has a high risk to makes you banckrupt. Remember,try in on demo with high dicipline and perfect money management. 90% trader loss because they didn't have this attitude. When you are ready to trade in real,go on.
In order to be perfect trader,you should know what is broker. You should know who are the best broker,is it okay if u makes a deposit to them. Knowing them well before you makes a fund. Make a research on their spread,swap,either they allowed with scalping or not,etc. For more information about forex,how to make a profit,you can refer to my blog
Friday, December 14, 2007
Forex Brokers - Could You Trade Successfully? A Test for New Traders
If you have been getting your forex education and you're ready to trade, you need to find out one key point - can you handle the emotional side of trading? A Demo account won't help you this new service offered by some forex brokers will...
So you want to become a currency trading and you need to now feel the emotion and there is a new account called a protected account which acts like a bridge between a demo account and fully funded trading account.
It's a fact that 95% of traders lose as they cannot handle the emotional side of trading.
As a novice trader you want to feel it but not risk much and have plenty of trades, get the experience on a small deposit and that's exactly what a protected account does.
The concept Is Simple:
- There is a set period of normally two weeks - You have set risk - You have set leverage - You can make as many trades as you wish in this period even if you are in debit
At the end of the period:
- The broker takes any losses - You take any profits that you make
A Real Trading Experience
The great thing about these accounts is you have limited risk can trade as much as you wish and you have a target - it's a hands on experience with real money on the line.
The fact is most traders make money in demo accounts no pressure is not the real world of currency trading and these accounts allow you to feel the trading experience.
So it's a demo account simply to learn the mechanics of trading a protected account to feel the experience and then on to a full trading account with your forex broker and hopefully long term currency trading success.
So you want to become a currency trading and you need to now feel the emotion and there is a new account called a protected account which acts like a bridge between a demo account and fully funded trading account.
It's a fact that 95% of traders lose as they cannot handle the emotional side of trading.
As a novice trader you want to feel it but not risk much and have plenty of trades, get the experience on a small deposit and that's exactly what a protected account does.
The concept Is Simple:
- There is a set period of normally two weeks - You have set risk - You have set leverage - You can make as many trades as you wish in this period even if you are in debit
At the end of the period:
- The broker takes any losses - You take any profits that you make
A Real Trading Experience
The great thing about these accounts is you have limited risk can trade as much as you wish and you have a target - it's a hands on experience with real money on the line.
The fact is most traders make money in demo accounts no pressure is not the real world of currency trading and these accounts allow you to feel the trading experience.
So it's a demo account simply to learn the mechanics of trading a protected account to feel the experience and then on to a full trading account with your forex broker and hopefully long term currency trading success.
Wednesday, December 12, 2007
Money Management - A Forex Trader 'Must Have'
Money Management - what's that? If this is your response to the title of this article, then either STOP trading forex until you have learnt about it or, if you are new, do not start yet! The chances are, if you trade without any Money Management rules, you will lose your capital investment faster than the time it takes to read this article!
Forex is a leveraged product, and if you over-leverage yourself, the truth is you could be staring at a blown account in no time at all!
Therefore, it should go without saying that disciplined Money Management is an important key to not just succeeding, but surviving in Forex trading. Sadly, the temptation of riches can wreak havoc with even the most disciplined people out there! In fact, the determination to succeed and be wealthy may just be the one thing that causes a person to relax their own Money Management rules! 'Speed up the path to the intended destination' will be the justification in their mind!
I know it, because I personally fell foul of just that! So certain that the trade I was going to put on could go in only one direction, I calculated that if I increased my trade size for this particular trade, I could then go on and move up legitimately to a larger trade size for all future trades (by legitimately, I mean according to my Money Management rules). Brilliant! I'm sure this is the type of risk these successful guys take every now and again. After all, you have to take bigger risks sometimes if you want to make it! Well, I'm pretty sure I don't have to tell you what happened next!!
So, here I was, now in a position where I now had to decrease the size of my future trades, to account for the huge hit I had just taken on that one trade. And not only that, to make matters worse, I exited the trade early because I did not want to take the 'full hit' of it reaching my pre-determined Stop Loss!
Yep! You've probably got the next bit too! The trade didn't make it to my intended Stop Loss, and actually would have been a successful trade if I had followed the rules of my strategy! I had just gone down the ladder several rungs in a 'calculated' attempt to move myself up a few rungs. It would now take several weeks of SUCCESSFUL trading to get back to the trade size I had been taking that day!
So, the first thing I did that day to cause such a hole in my account was throw away my Money Management rules. However, that wasn't all that followed! Through just that one act, I lost all sense of discipline, and also didn't follow my trade strategy. By exiting early, I hadn't given the trade a chance to succeed according to my entry and exit rules for that trade. Now, had I adhered to my money management rules, and applied my normal trade size, I would not have been concerned by the trade potentially hitting my Stop Loss, and therefore would have remained in the trade, and been in a position to record a successful outcome, and not a rather large losing one!
I tell this story not for entertainment value, but to share a lesson on how disciplined you have to be at all times in Forex Trading. My discipline here had succumbed to the emotions of greed and fear, and I paid dearly for it. What I'm telling you here is, if you allow just one area of your trading to 'relax' against your predetermined Trading Rules, no matter how valid you think your reasons are, there is a very high probability you will pay the price. You will likely need to break other rules too.
I would ask you to think about this....Your Trading Plan will have been created while in an environment of calm and rational thinking, based on information, knowledge and facts. When you are trading Forex, the environment is neither calm nor rational, and the only thing that can keep you trading calmly and rationally, is to be disciplined enough to follow the rules of your Trading Plan - and in that, Money Management will be clearly defined.
Your adherence to your Money Management rules, and the power of compounding will help move the odds of reaching your trading goals in your favour!
Forex is a leveraged product, and if you over-leverage yourself, the truth is you could be staring at a blown account in no time at all!
Therefore, it should go without saying that disciplined Money Management is an important key to not just succeeding, but surviving in Forex trading. Sadly, the temptation of riches can wreak havoc with even the most disciplined people out there! In fact, the determination to succeed and be wealthy may just be the one thing that causes a person to relax their own Money Management rules! 'Speed up the path to the intended destination' will be the justification in their mind!
I know it, because I personally fell foul of just that! So certain that the trade I was going to put on could go in only one direction, I calculated that if I increased my trade size for this particular trade, I could then go on and move up legitimately to a larger trade size for all future trades (by legitimately, I mean according to my Money Management rules). Brilliant! I'm sure this is the type of risk these successful guys take every now and again. After all, you have to take bigger risks sometimes if you want to make it! Well, I'm pretty sure I don't have to tell you what happened next!!
So, here I was, now in a position where I now had to decrease the size of my future trades, to account for the huge hit I had just taken on that one trade. And not only that, to make matters worse, I exited the trade early because I did not want to take the 'full hit' of it reaching my pre-determined Stop Loss!
Yep! You've probably got the next bit too! The trade didn't make it to my intended Stop Loss, and actually would have been a successful trade if I had followed the rules of my strategy! I had just gone down the ladder several rungs in a 'calculated' attempt to move myself up a few rungs. It would now take several weeks of SUCCESSFUL trading to get back to the trade size I had been taking that day!
So, the first thing I did that day to cause such a hole in my account was throw away my Money Management rules. However, that wasn't all that followed! Through just that one act, I lost all sense of discipline, and also didn't follow my trade strategy. By exiting early, I hadn't given the trade a chance to succeed according to my entry and exit rules for that trade. Now, had I adhered to my money management rules, and applied my normal trade size, I would not have been concerned by the trade potentially hitting my Stop Loss, and therefore would have remained in the trade, and been in a position to record a successful outcome, and not a rather large losing one!
I tell this story not for entertainment value, but to share a lesson on how disciplined you have to be at all times in Forex Trading. My discipline here had succumbed to the emotions of greed and fear, and I paid dearly for it. What I'm telling you here is, if you allow just one area of your trading to 'relax' against your predetermined Trading Rules, no matter how valid you think your reasons are, there is a very high probability you will pay the price. You will likely need to break other rules too.
I would ask you to think about this....Your Trading Plan will have been created while in an environment of calm and rational thinking, based on information, knowledge and facts. When you are trading Forex, the environment is neither calm nor rational, and the only thing that can keep you trading calmly and rationally, is to be disciplined enough to follow the rules of your Trading Plan - and in that, Money Management will be clearly defined.
Your adherence to your Money Management rules, and the power of compounding will help move the odds of reaching your trading goals in your favour!
Tuesday, December 11, 2007
Major Forex Indicators
Certain financial indicators have a history of moving the financial markets when the actual numbers don't match consensus. This article explain what some of the better financial indicators are and the ones traders should pay close attention to when trading the forex market.
APICS Survey - The APICS survey provides detailed information of the manufacturing sector. This survey is less well known than the ISM, but can also suggest trends in production. The diffusion index does not move in tandem with the ISM index each month, but sometimes the two do move in the same direction. Since manufacturing is a major sector of economy, investors can get a feel for the general economic backdrop for several investments. These surveys also play an important role in learning forex trading.
Business Inventories - The degree of inventories in relation to sales is an important signal of the near-term direction of production activity. Investors need to monitor the economy closely because it usually dictates how various types of investments will perform. Growing inventories can be an indication of business optimism that sales will be growing in the coming months. By looking at the proportion of inventories to sales, investors can see whether production demands will expand or contract in the near future. The business inventory data provide a valuable forward-looking tool for traversing the economy and it is greatly used while making forex trading strategies.
Chain Stores Sales - It is monthly sales volumes from department, chain, discount and apparel stores. Sales are reported by the individual retailers. Chain store sales are an indicator of retail sales and consumer spending results. Consumer spending accounts for two-thirds of the economy, so if you know what consumers are up to, you will have a pretty good grip on where the economy is headed. Sales are reported as a change from the same month a year ago. It is significant to know how strong sales actually were a year ago to make sense of this year's sales. In addition, sales are normally reported for "comparable stores" in case of company mergers.
Construction Spending - Data are available in nominal and real (inflation-adjusted) dollars. Because of their forex trading strategies, businesses only put money into construction of new factories or offices when they are sure that demand is strong enough to justify the expansion. The same goes for individuals making the investment in a home. That's why construction spending is a good indicator of the economy's momentum.
Consumer Confidence - It is study of consumer attitudes concerning both the present position as well as expectations regarding economic conditions conducted by The Conference Board. The level of consumer confidence is directly related to the intensity of consumer spending. Consumer spending accounts for two-thirds of the economy, so the markets are always dying to know what consumers are up to and how they might act in the near future. The more confident consumers are about the economy and their own personal finances, the more likely they are to spend. With this in mind, it's easy to see how this index of consumer attitudes gives insight to the way of the economy. Changes in consumer confidence and retail sales don't move in tandem month by month.
Consumer Price Index (CPI) - It is measure of the average price level of a fixed basket of goods and services purchased by consumers. Monthly changes in the CPI represent the inflation rate. The CPI is the most followed indicator of inflation in the United States, some forex training institutes also keeps record of it for training purpose. Inflation is a general increase in the cost of goods and services. The relationship between inflation and interest rates is the key to understanding how data like the CPI influence the markets. By tracking the trends in inflation, whether high or low, ascending or descending, investors can anticipate how different types of investments will perform.
Current account - It is a measure of the country's international trade balance in goods, services and unilateral transfers. The level of the current account, as well as the trends in exports and imports, are followed as indicators of trends in foreign trade. U.S. trade with foreign countries hold significant clues to economic trends here and abroad. According to forex training experts this data can directly affect all the financial markets, and particularly the foreign exchange value of the dollar.
APICS Survey - The APICS survey provides detailed information of the manufacturing sector. This survey is less well known than the ISM, but can also suggest trends in production. The diffusion index does not move in tandem with the ISM index each month, but sometimes the two do move in the same direction. Since manufacturing is a major sector of economy, investors can get a feel for the general economic backdrop for several investments. These surveys also play an important role in learning forex trading.
Business Inventories - The degree of inventories in relation to sales is an important signal of the near-term direction of production activity. Investors need to monitor the economy closely because it usually dictates how various types of investments will perform. Growing inventories can be an indication of business optimism that sales will be growing in the coming months. By looking at the proportion of inventories to sales, investors can see whether production demands will expand or contract in the near future. The business inventory data provide a valuable forward-looking tool for traversing the economy and it is greatly used while making forex trading strategies.
Chain Stores Sales - It is monthly sales volumes from department, chain, discount and apparel stores. Sales are reported by the individual retailers. Chain store sales are an indicator of retail sales and consumer spending results. Consumer spending accounts for two-thirds of the economy, so if you know what consumers are up to, you will have a pretty good grip on where the economy is headed. Sales are reported as a change from the same month a year ago. It is significant to know how strong sales actually were a year ago to make sense of this year's sales. In addition, sales are normally reported for "comparable stores" in case of company mergers.
Construction Spending - Data are available in nominal and real (inflation-adjusted) dollars. Because of their forex trading strategies, businesses only put money into construction of new factories or offices when they are sure that demand is strong enough to justify the expansion. The same goes for individuals making the investment in a home. That's why construction spending is a good indicator of the economy's momentum.
Consumer Confidence - It is study of consumer attitudes concerning both the present position as well as expectations regarding economic conditions conducted by The Conference Board. The level of consumer confidence is directly related to the intensity of consumer spending. Consumer spending accounts for two-thirds of the economy, so the markets are always dying to know what consumers are up to and how they might act in the near future. The more confident consumers are about the economy and their own personal finances, the more likely they are to spend. With this in mind, it's easy to see how this index of consumer attitudes gives insight to the way of the economy. Changes in consumer confidence and retail sales don't move in tandem month by month.
Consumer Price Index (CPI) - It is measure of the average price level of a fixed basket of goods and services purchased by consumers. Monthly changes in the CPI represent the inflation rate. The CPI is the most followed indicator of inflation in the United States, some forex training institutes also keeps record of it for training purpose. Inflation is a general increase in the cost of goods and services. The relationship between inflation and interest rates is the key to understanding how data like the CPI influence the markets. By tracking the trends in inflation, whether high or low, ascending or descending, investors can anticipate how different types of investments will perform.
Current account - It is a measure of the country's international trade balance in goods, services and unilateral transfers. The level of the current account, as well as the trends in exports and imports, are followed as indicators of trends in foreign trade. U.S. trade with foreign countries hold significant clues to economic trends here and abroad. According to forex training experts this data can directly affect all the financial markets, and particularly the foreign exchange value of the dollar.
Sunday, December 9, 2007
Learn Forex Trading Online Tips
Forex trading, often called "FX," is the practice of trading currencies for profit. A forex trader buys one currency and simultaneously sells another, hoping to realize a profit from any variance in valuation between the two currencies. Because currencies are the largest market in the world, there are many opportunities to profit. So, how do you learn to trade currencies? Fortunately, there are many excellent free resources that can help you learn forex trading online.
Learning To Trade Currencies Online
In the past, if you wanted to trade currencies, you were forced to buy expensive courses, attend high-priced seminars that often required traveling to other states and purchasing cost-prohibitive computer programs that allowed you to tap into the trading activities of more experienced traders.
Today, all of that has changed. You can learn forex trading from the comfort of your home without spending outrageous amounts of money on courses and seminars. There are several resources online that will not only teach you the fundamentals of trading currencies, but will share basic, intermediate and advanced strategies of trading while showing graphical examples of such strategies to ensure clarity. Further, this information is often offered free.
Watching Other Forex Traders
Many websites that offer free tips and even entire courses on forex trading principles and techniques are run by experienced currency traders. These are men and women who often have years of trading experience and can offer their insights regarding the best forex trading techniques to use in various markets. Some of these experienced traders even conduct free online workshops which allow you to virtually look over their shoulder and watch as they trade in particular markets. Watching these advanced traders is one of the best ways to learn real trading techniques that work in today's currency markets.
Preparing To Trade Currencies Live
Learning in a classroom setting is not the same as conducting live trades. Once you learn the basics of forex trading strategy, you should prepare to do a few live trades. After watching over the shoulders of experienced traders, you should have a good feel of what to expect. Part of learning how to trade currencies involves knowing what signals to watch for in your particular market and staying on top of those signals. If you know these things, you are likely ready to trade forex live.
How To Get Started Trading Forex Online
You only need a few things to begin conducting live currency trades. First, you obviously need a computer with access to the Internet. Second, you need access to an information source that can provide you with real-time signals so you can keep on top of your market. Third, you need a small amount of cash to begin trading. Lastly, you need calm nerves. Though forex trading is potentially very profitable, some people do lose money.
Once you have decided to learn forex trading online, you need to begin learning the basic strategies of trading currencies. After you have mastered the basics, begin learning some of the advanced techniques of forex trading. You can often access this type of information for free online along with clear examples that will help you understand the currency markets. Remember, although there is a high potential for profit, there are significant risks to trading currencies.
Try to learn from the best traders in the world by attending online forex trading workshops. After doing the above, you will likely be ready to start making your first few trades live.
Learning To Trade Currencies Online
In the past, if you wanted to trade currencies, you were forced to buy expensive courses, attend high-priced seminars that often required traveling to other states and purchasing cost-prohibitive computer programs that allowed you to tap into the trading activities of more experienced traders.
Today, all of that has changed. You can learn forex trading from the comfort of your home without spending outrageous amounts of money on courses and seminars. There are several resources online that will not only teach you the fundamentals of trading currencies, but will share basic, intermediate and advanced strategies of trading while showing graphical examples of such strategies to ensure clarity. Further, this information is often offered free.
Watching Other Forex Traders
Many websites that offer free tips and even entire courses on forex trading principles and techniques are run by experienced currency traders. These are men and women who often have years of trading experience and can offer their insights regarding the best forex trading techniques to use in various markets. Some of these experienced traders even conduct free online workshops which allow you to virtually look over their shoulder and watch as they trade in particular markets. Watching these advanced traders is one of the best ways to learn real trading techniques that work in today's currency markets.
Preparing To Trade Currencies Live
Learning in a classroom setting is not the same as conducting live trades. Once you learn the basics of forex trading strategy, you should prepare to do a few live trades. After watching over the shoulders of experienced traders, you should have a good feel of what to expect. Part of learning how to trade currencies involves knowing what signals to watch for in your particular market and staying on top of those signals. If you know these things, you are likely ready to trade forex live.
How To Get Started Trading Forex Online
You only need a few things to begin conducting live currency trades. First, you obviously need a computer with access to the Internet. Second, you need access to an information source that can provide you with real-time signals so you can keep on top of your market. Third, you need a small amount of cash to begin trading. Lastly, you need calm nerves. Though forex trading is potentially very profitable, some people do lose money.
Once you have decided to learn forex trading online, you need to begin learning the basic strategies of trading currencies. After you have mastered the basics, begin learning some of the advanced techniques of forex trading. You can often access this type of information for free online along with clear examples that will help you understand the currency markets. Remember, although there is a high potential for profit, there are significant risks to trading currencies.
Try to learn from the best traders in the world by attending online forex trading workshops. After doing the above, you will likely be ready to start making your first few trades live.
Saturday, December 8, 2007
Learning The Forex Trading Basics For Better Understanding
The forex market, also known as the foreign currency exchange market, has been around for quite some time. The reason it has become only recently popular is because once upon a time only the financial elite had enough assets and access to the foreign currency exchange market. Only major corporations, banks and opulent individuals who possessed great wealth were allowed entrance into these chambers of currency commerce. Alas, the world has evolved and a new entity has come into existence and altered the human way of life. Technology. The greatest invention being the Internet. Now time and space have practically lapsed and we have the ability to contact anyone, anywhere, at anytime. This makes the world quite different from what it used to be.
Today any individual can open up an online forex account and begin trading. He needs no qualifications, no justifications, just a suffice bank account. One can open up an online forex trading account for as little as $5000. That's incredible. Whereas the New York stock exchange is centered in New York and has specific trading hours, the forex market is global and not tied down to a specific location. An investor may conduct trades from wherever he is on earth, no matter what the local time is. The forex trading day actually commences in Sydney, Australia. From there it progresses gradually east, sweeping through financial centers like a ghost of finest velvet. Barely tangible yet so lucrative. The average daily turnover in the forex trading market is $2 trillion US dollars. To be part of something that is so fantastic must be great, no?
Surely you have already begun to fantasize about the luscious millions you will earn overnight. Thought this is technically possible and there have been quite a few accounts of individuals who have earned great sums in the span of just twenty four hours, one still needs to take the proper precautions when investing money in such a volatile market. As high as the profit is, so is the risk. That's why it's not enough just to know about stocks, bonds and trading strategies. You need an in depth education.
First of all, you need to know basics. Forex trading is an automated system and so you must realize that most of the things you'll have to learn will be part of a much greater system of signals and signs. The most basic and primary thing you should be aware of is that you buy and sell currencies, at the same time. Meaning, as you buy one currency, you are selling another. Furthermore, you attempt to purchase a currency when it's value is low and sell a currency when it's value is high. So far, so good.
Next you need to learn the terminology and currency pairs. You will find them listed in a different chapter on this website and they are explained in layman's terms so that anybody can understand them.
There are so many websites and online tutorials that teach about forex trading. There are also tons of college or university classes that really teach everything you need to know. If you are serious about becoming a forex trader and understanding the automated forex system, you will have to study hard and open your mind to learning.
After abstract theories and learning the nooks, you will be advised to practice forex trading on a 'dummy' account. Trying to become a forex trader without this practice would be like trying to become a lifeguard without ever learning how to swim. It would never work.
The reason there are so many options for 'dummy' forex accounts is simple. It's because any experienced forex trader or broker know that entering the forex trading system, especially the automated forex trading system, is not an easy task if you've never actually done a trade. You would not want to open up a real trading account and spend real money without having any clue how to do so. That's why there are so many options for these 'fake' accounts and you should put them to good use.
After you feel you've experienced enough fake trading and demos, you need to decide what sort of automated system you would like to use for your trading purposes. The reason you need a system is because you need constant updates about currency values and alerts for trades you would like to conduct. Automated systems allow you to conduct several transactions at one time through creating different trading platforms. The system you choose will present you with the required charts that express the market trends that have happened within a certain time frame. That's why you need to know not only how to read charts and understand how to manipulate them, but also which type of automated system will serve your trading needs best.
Today any individual can open up an online forex account and begin trading. He needs no qualifications, no justifications, just a suffice bank account. One can open up an online forex trading account for as little as $5000. That's incredible. Whereas the New York stock exchange is centered in New York and has specific trading hours, the forex market is global and not tied down to a specific location. An investor may conduct trades from wherever he is on earth, no matter what the local time is. The forex trading day actually commences in Sydney, Australia. From there it progresses gradually east, sweeping through financial centers like a ghost of finest velvet. Barely tangible yet so lucrative. The average daily turnover in the forex trading market is $2 trillion US dollars. To be part of something that is so fantastic must be great, no?
Surely you have already begun to fantasize about the luscious millions you will earn overnight. Thought this is technically possible and there have been quite a few accounts of individuals who have earned great sums in the span of just twenty four hours, one still needs to take the proper precautions when investing money in such a volatile market. As high as the profit is, so is the risk. That's why it's not enough just to know about stocks, bonds and trading strategies. You need an in depth education.
First of all, you need to know basics. Forex trading is an automated system and so you must realize that most of the things you'll have to learn will be part of a much greater system of signals and signs. The most basic and primary thing you should be aware of is that you buy and sell currencies, at the same time. Meaning, as you buy one currency, you are selling another. Furthermore, you attempt to purchase a currency when it's value is low and sell a currency when it's value is high. So far, so good.
Next you need to learn the terminology and currency pairs. You will find them listed in a different chapter on this website and they are explained in layman's terms so that anybody can understand them.
There are so many websites and online tutorials that teach about forex trading. There are also tons of college or university classes that really teach everything you need to know. If you are serious about becoming a forex trader and understanding the automated forex system, you will have to study hard and open your mind to learning.
After abstract theories and learning the nooks, you will be advised to practice forex trading on a 'dummy' account. Trying to become a forex trader without this practice would be like trying to become a lifeguard without ever learning how to swim. It would never work.
The reason there are so many options for 'dummy' forex accounts is simple. It's because any experienced forex trader or broker know that entering the forex trading system, especially the automated forex trading system, is not an easy task if you've never actually done a trade. You would not want to open up a real trading account and spend real money without having any clue how to do so. That's why there are so many options for these 'fake' accounts and you should put them to good use.
After you feel you've experienced enough fake trading and demos, you need to decide what sort of automated system you would like to use for your trading purposes. The reason you need a system is because you need constant updates about currency values and alerts for trades you would like to conduct. Automated systems allow you to conduct several transactions at one time through creating different trading platforms. The system you choose will present you with the required charts that express the market trends that have happened within a certain time frame. That's why you need to know not only how to read charts and understand how to manipulate them, but also which type of automated system will serve your trading needs best.
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