Forex Trading - How to Fight the Fear Factor ForexTrading  

Posted by bharat


It is not enough to possess knowledge of the trading marketplace and analytic ability for success in Forex trading. A forextrading vital ingredient for successful foreign currency trading is the guts to take a financial risk with your hard-earned investment capital. You must conquer fear in order to achieve your financial goals.

The Forex market undergoes continual change.Forextrading it is not a static, dull marketplace, but it is alive, growing exponentially, and contains the means for great financial gains. But you will experience a whole range of emotions and apprehensions while trading in this vibrant market. It is common to forextrading,feel fear, excitement, and anxiety.

Forex traders have struggled with these emotions and successful traders have learned a way to deal with them. You can too if you desire to close massive deals and realize increasing wealth. Harness these emotions and make them work for you as you engage in energetic trading worldwide. Do not let strong emotions hinder or prevent you from achieving your financial goals.

Stay Informed And Stay Focused

The basic framework for Forex success involves beginning and closing a trade at the optimal time. You want to avoid incurring any psychological or monetary damage from missed opportunities. Keep abreast of currency trends in the marketplace so you will not find yourself on the wrong end of a great opportunity to make money in Forex. All investors have a loss now and then so don't be discouraged, but keep a proper perspective on the ups and downs of trading in order to sustain a right frame of mind for continued success.

Entering a transaction in a forex trading timely manner is vital for success. But you also must develop a willingness to pull out of a deal and sell when indications show a downturn in that particular currency. Holding on to a deal when its financial gain is sufficiently uncertain can lead to economic loss.

Avoid becoming so emotionally attached to a certain deal that you can not let go at the best time. Holding on to it too long can cause you to sustain large losses. Sometimes it is most profitable in the long run to take a modest gain and move on to another trade. Have faith in your ability to discern a market trend
, keep up your courage, and act at the opportune moment to build upon your Forex profits.

Mainly, fear in losing your personal capital is the strongest emotion you need to learn to control. So many stories of loss and failure are the result of fear and anxiety getting the best of an investor and causing them to make poor decisions. Accept forextrading the fact that everyone experiences this fear; you are not alone or weak because of it. Then learn to override it with sensible business knowledge and analysis.

This will produce greater business acumen and the ability to improve your timing in making trades to your monetary advantage. Discouragement and depression will paralyze you. Learn to temper fear with knowledge and make your trades freely and wisely. Each success will be an antidote to fear and an encouragement for future success in Forex transactions.

Trading Strategies Make A Difference

Develop savvy trading strategies. Make a good plan and utilize it to minimize the anxiety involved in trading. When you incur a small loss, realize this is common and get back into the marketplace with energy and determination to succeed. Roll with the punches, move on, and stay optimistic. Attitude is crucial for success in any endeavor. This is a basic principle for living that can help you achieve your financial goals in Forex.

While research and market analysis have great value, you must also master your emotions. If you possess tremendous ability to interpret figures and develop sound strategy, but lack guts and conviction to take action, you will not accomplish your business expectations. Through experience and practice, learn from each transaction, and you will gain the courage and discernment to know when to buy and when to sell.

There is a saying in Forex, "the trend is your friend". However this is only true to the extent that you can override the emotions that would hinder you from taking action in a timely manner. Forex is a complex marketplace.Forextrading you can master foreign currency trading by combining knowledge of the market trends, strategic planning, and overcoming the emotions of fear and anxiety.

Forex Day Trading Strategies for Success!  

Posted by bharat


Most Forex systems used by new traders are short term day trading strategies which aim to take small risk and pile up a huge regular income and here we will look at how to succeed…
The challenge a day trader has is the following:
Millions of people (All with different Views, skills etc) + Who Don’t think Logically = so what Forex Day Trading Strategy can Predict what will happen in minutes or hours?
The answer is: None of them!
Its simply the dumbest way to trade, you cannot predict what a huge mass of people with different opinions and skills, are going to do in hours or minutes its impossible and here is the proof:
Fact: All volatility in short term time frames is random and you cannot get the odds on your side, you can’t win long term!

Fact: Forex day trading strategies sold have never made real gains. They simply have back tested track records and it’s easy to win when you know what the price was.

It’s a good story, making a regular income with small risk, just like Harry Potter is a good story but make sure you don’t believe it, or you will lose.

Want to win at Forex trading?

You can but you must get the odds on your side and that means Forex swing trading or long term trend following, you can trade the odds here and that means - big profits if you have a robust forex trading strategy.

Do not make the mistake of day trading or forex scalping, get the right Forex education and trade long term and you can soon be enjoying currency trading success.

8 Easier Ways To Make Money Forex Trading  

Posted by bharat


1. Robots were debuted in the Forex system to handle the complexities that technology added to Forex trading. For a long period, Forex trading was strictly in the realm of professional traders who grasped every single facet of the difficult trend lines and candlestick templates. Today, Forex sees daily trading volume reaching an amazing 3 trillion dollars. The size of the Forex industry has been achieved by bringing novices and amateurs into the world of currency trading. This has to a great extent been made feasible by the automated Forex pilots who have automated how we view Forex.

2. The software is able to work without human input, as it uses complex algorithms to compile all the best indicators from numerous possibilities. The majority of the automatic Forex systems simply examine the existing market circumstances and act based on that. If the market appears to be highly volatile, the setup chooses to place conservative pips, saving the more daring pips for less volatile scenarios. The objective is to optimize the art of pip positioning at base spreads and elevated leverage. In this manner, the automated Forex systems encompass even the daily spinners and investors in its scope.

3. The Forex money managers and traders as well as former workers from the currency trading branches create complex formulas which facilitate interpretation of the market. This is combined with the invaluable experiential knowledge possessed by traders. All of this combined is what the automated Forex robot is all about.

4. You’ll soon find yourself reaping a great many benefits from the use of the automated Forex robots, or trading programs as they are also called. The amount of time it frees up for you is its greatest benefit. This implies that you can take care of your chores without needing to worry about your trades. The software starts doing all the work just as soon as the broker takes your order.

5. For some trades, a large volume equates to a similarly large profit. For all trades like these, it is best to use an automated robot. The reason is that, if you want to, you can make them work continually 24/7.

6. By using this, it is possible to use multiple systems to trade. This means that a number of indicators can be used for trading simultaneously. Not only that, but robots are able to work effectively with both short and long frames. For those daily spinners who want to do as many frames as possible, short frames are generally more conducive.

7. Forex software is not influenced by a trader’s bias or opinions. This means that the trading software is able to analyze trades without being affected by the trader’s opinions. For example, while certain traders may be uncomfortable trading in volatile markets, these can, at times, yield great profits. The robots, however, are not influenced by trader sentiment and can thus help monetize in such circumstances.

8. Automated Forex robots effectively interpret the signs and produce a chart for every trade session. This might consist of trend lines ranging from short to long range that are blended with Fibonacci retrenchment models to discover when the stocks are predicted to reverse. Precise entry and exit points are also determined for any one trade using these indicators.

Currency Trading - Intro To The Forex Market  

Posted by bharat


The Forex market, which is an abbreviation for the Foreign Exchange Market, is a global marketplace where you can trade currencies.

It was established in 1971 after fixed currency exchange was put to an end. Supply and demand now determined the prices of currencies. Throughout the 1970’s, Forex trading became more and more popular. But after the advances in technology made in the 80’s, the Forex market skyrocketed in popularity. In a short amount of time, it grew from an average trading level of $70 billion a day, to $1.5 trillion.

Big Numbers And Long Hours

The Forex market deals with humongous amounts of currency exchanges therefore is open for twenty-four hours a day, and five days a week. Not only does this allow you to trade more, but it allows you to trade at your own convenience. This is yet another advantage Forex trading has over other investments.

Though there are large trading centers in Tokyo, New York, Hong Kong, Singapore, London, Paris, and Frankfurt, there is no specific central location. All the trading transactions are done over the internet or sometimes by telephone.

There are approximately five thousand trading institutions in Forex trading. These institutions are central government banks, international banks, and many different commercial companies and brokers that work with all types of foreign currency exchange.

But even though there are many large-scale trading institutions, the Forex market is still available to a small investor. It has just as much potential for financial gain for one person as it does for a whole company. In the past, there was always a minimum on transaction sizes and traders were forced to meet certain financial regulations. But now with internet trading, anyone can trade and you need only as little as $100 to begin!

Figuring It All Out

“But how does the Forex market function?” you might ask. This is easy to explain. Currencies are traded in pairs - Japanese yen and US dollars, or euros and English pounds. Each transaction is composed of selling one currency then buying another. For instance, if you were sure that the English pound was going to do better than the dollar, you would sell your dollars and buy pounds.

The ability to make money lies in the fact that there is always movement and fluctuations between currencies. Because of the huge amounts of money used in each transaction, you can make great profits from even the slightest rise or fall.

So to sum it all up, I’ll just list a few of the greatest benefits of Forex trading:

1- The Forex market is open 24/5. And you can access it from anywhere as long as you have a computer and internet.

2 - No commission fees. Yes, this sounds too good to be true. But it is! Brokers don’t require commissions. They make their money by setting “spreads” which are much less exacting than pricy commissions.

3 - There’s great liquidity. The Forex market is the largest financial market in the world, so there is guaranteed to be a buyer and seller out there somewhere to trade with.

These are just a few of the many advantages Forex has over other forms of investment. If it sounds too good to be true, just look into it yourself and give it a try.

Currency Trading - Is The Global Marketplace Changing?  

Posted by bharat


Success can be hard to define. Is there one thing that you can do to be sure of success? There are many things that affect how you trade and what profit you make from it, but the most important of all is recognizing opportunities.
The world around us is changing - for better or worse does not matter. It is changing and we must keep up or be left behind. But instead of being overwhelmed or discouraged, the global situation we find ourselves in should encourage us. There is no better place to find opportunity to succeed than in the midst of uncertainty and danger.
In Crisis There Is Opportunity
And with prices skyrocketing such as they are, and rumors floating around of collapses, it is crucial that you know how to survive, should any crisis occur. Even if you think you are perfectly safe, it is advantageous for anyone to learn how to make the best of any circumstances.

So where do you start? How can you learn to recognize opportunity when it knocks?

First of all, you must evaluate your Forex trading strategy and perfect it, making sure it works just as well as it always did. It must be able to be relied upon implicitly so you will never have to resort to rash, impetuous decisions. Emotional reactions never work in Forex trading.

Then you must analyze the economic conditions around you. Fundamental analysis can help you tremendously with this. There is a lot to examine and take a look at - interest rates, international trade balances, economic strengths and weaknesses, and production rates. All these things affect dramatically the price of currencies. Fundamental analysis can help you comprehend a larger picture of how it all works and fits together to influence the Forex market.

You may say, “But how can I profit from the threatening economic conditions around me?” The answer is that it is in these situations that you can profit the most, if you do it right. There are many strategies out there that can show you how to buy and sell currencies and take advantage of the instabilities in the economies of the world.

Two Words… Carpe Diem!

It is all about seizing the opportunity when you see it. A statistic says that only 2 percent of people act on opportunities they see. In Forex, you should avoid rash decisions, but you should also act when you see that you can profit from it.

Don’t wait, because in this swiftly-changing world, you never know what could happen next, fundamental and technical analysis or not! If you hesitate, you might never see the chance again. So seize the day! That is the best advice I have to anyone. This is especially crucial in Forex trading.

There are many seminars and “Webinars” available that speak in more specifics about this topic. The main point I am just trying to make is don’t run and hide when the economy shakes and fluctuates. Learn the details of trading and have confidence in your trading abilities so you can take an opportunity when you see one and enjoy great financial profit and success!

Forex Trading - Taking Advantage of Indicators  

Posted by bharat


After learning the basics and the fundamentals of forex trading, the next step is to acquire the skills and the tools necessary so that you will be able to identify market trends; more importantly you will know when and where to trade so you do not end up among the 90% of traders who simply lost to the market. By learning, practicing and improving your skills in trading, you will be able to enhance your chance if earning more money than ever before. One important skill that you should learn in particular is the ability to spot and use forex trading indicators.

There are many different kinds of indicators in the world of Foreign Exchange and all of them are categorized in either one of the two; lagging or leading. A lagging indicator shows the forex trader a current trend that has started wherein the trader can also join. The risks of using lagging indicators are relatively low but the returns are also low

The second category of trading indicators is known as leading indicators. This is an exact opposite of lagging indicator. Here, the indicator would show the trader a possible upcoming trend wherein he or she can trade to. The keyword there however is “possible” as it can be a misleading indicator. This category carries far higher risks compared to the former; but of course, the higher the risk means higher rewards. The first few people who are able to take advantage of a currency before it trends will attain higher profits compared to those who come in last.

Online Trading  

Posted by bharat


Daily Market Commentary for March 31, 2009
Major U.S. indices hosted another positive trading session today amidst moderate trading volume creating a variety of action for those involved in online trading. (read more at Millennium-Traders.Com)
http://www.millennium-traders.com/news/newscommentary.aspx
Economic data released today:
ICSC-Goldman Store Sales:For week of March 28, chain store sales posted an increase 1.1% week-on-week and a decrease by 0.2% year-on-year for the best readings since the new year. Sales were strong even after taking into account effects surrounding Easter, which falls three weeks later this year. The report still sees full month sales flat to down 1%.

Redbook:
Redbook shows a 0.6% year-on-year rate being the best rate since the end of last December. Warm weather had a positive affect in the week.

S&P Case-Shiller HPI:
January shows steepening rates of price contraction, at -2.5% for the composite 10 index and -2.8% for the composite 20. Year-on-year rates of decline deepened at -19.4% for the 10 index and -19.0% for the 20 index. Developments in the housing sector are being monitored on a month-to-month basis given new efforts to limit foreclosures and the ongoing drop in mortgage rates. Data confirms that home-price contraction was deepening at the outset of the year.

NAPM-Chicago:
U.S. Chicago Purchasing Management adjusted March Index 31.4 versus February 34.2; U.S. Chicago Purchasing Management March Prices Paid Index 34.1 versus February 37.8; U.S. Chicago Purchasing Management March Supplier Deliveries 48.4 versus February 51.0; U.S. Chicago Purchasing Management March Employment Index 28.1 versus February 25.2; U.S. Chicago Purchasing Management March New Orders Index 30.9 versus February 30.6.

Consumer Confidence:
U.S. Conference Board March Consumer Confidence came in at 26.0 versus February reading of 25.3; U.S. Conference Board March Present Situation Index came in at 21.5 versus February reading of 22.3; U.S. Conference Board March Expectations Index came in at 28.9 versus February reading of 27.3. March consumer confidence index remained relatively unchanged in March. February’s reading was 25.3, revised up slightly from the originally reported 25.0. The present situation index for March fell to 21.5 from February’s upwardly revised 22.3, while the expectations index increased to 28.9, from the prior month’s 27.3. It was originally reported at 27.5. Consumers referring to business conditions as “bad” rose to 51.1% of the survey from 50.5% during February. Consumers calling conditions “good” moved lower to 6.8%, from 7% previous month. The Conference Board found increased concerns about hiring with those calling jobs “hard to get” rising to 48.7% of from 46.9% during February. Those deeming jobs as “plentiful” remained unchanged at 4.6%.

At the NYSE closing bell on the New York Stock Exchange, here is how the major world indices and major U.S. stock indices ended the trading session on the world markets as well as the emerging markets including the stock market closing bell price:
DOW (Dow Jones Industrial Average) gain of 86.90 points to end the trading session at 7,608.92
NYSE (New York Stock Exchange) gain of 79.93 points to end the trading session at 4,978.98
National Association of Securities Dealers Automated Quotations (NASDAQ) gain of 26.79 points to end the trading session at 1,528.59
S&P 500 (SPX) gain of 10.34 points to end the trading session at 797.87
BEL 20 (BEL20) gain of 48.30 points to end the trading session at 1,748.74
CAC 40 (CAC40) gain of 88 points to end the trading session at 2,807.34
FTSE100 (UKX100) triple digit gain of 163.23 points to end the trading session at 3,762.91
NIKKEI 225 (NIK/O) triple digit loss of 126.55 points to end the trading session at 8,109.53

New York Stock Exchange (NYSE) stock market indicators for the trading session today:
Advanced stock prices 2,034, declined stock prices 663, unchanged stock prices 521, stock prices hitting new highs 10 and stock prices hitting new lows 15. NYSE quotes for volatile stocks and market trends, as well as stock quotes, stock prices and stock symbols of Day Trading Stock Picks on the New York Stock Exchange stock market for Day Trading online and active Day Trading for those who are or would like to be Day Trading for a living: Ingersoll-Rand Company Limited (NYSE: IR) stock price shed 0.18 points on the trading session, high on the trading session $14.20, low on the trading session $13.25, with a closing stock price at $13.80; State Street (NYSE: STT) stock price gained 2.80 points on the trading session, high on the trading session $31.71, low on the trading session $28.90, with a closing stock price at $30.78; Watson Pharmaceuticals (NYSE: WPI) stock price gained 2.52 points on the trading session, high on the trading session $32.95, low on the trading session $28.84, with a closing stock price at $31.36; Deutsche Bank AG (NYSE: DB) stock price gained 3.02 points on the trading session, high on the trading session $41.46, low on the trading session $38.88, with a closing stock price at $40.42.

National Association of Securities Dealers Automated Quotations (NASDAQ) stock market indicators for the trading session today:
Advanced stock prices 1,917, declined stock prices 893, unchanged stock prices 139, stock prices hitting new highs 13 and stock prices hitting new lows 15. NASDAQ quotes, volatile stocks and market trends, as well as stock quotes, stock prices and stock symbols of Day Trading Stock Picks on the NASDAQ stock market for Day Trading online and active Day Trading for those who are or would like to be Day Trading for a living: TBS International (NasdaqGS: TBSI) stock price gained 0.84 points on the trading session, high on the trading session $8.19, low on the trading session $7.29, with a closing stock price at $7.33; Acorda Therapeutics (NasdaqGS: ACOR) stock price shed 5.09 points on the trading session, high on the trading session $20.98, low on the trading session $19.10, with a closing stock price at $19.81; First Solar (NasdaqGS: FSLR) stock price shed 4.06 points on the trading session, high on the trading session $140.02, low on the trading session $129.78, with a closing stock price at $132.70.

Market trends on the American Stock Exchange (AMEX) and stock market indicators for the trading session today:
Advanced stock prices 350, declined stock prices 175, unchanged stock prices 113, stock prices hitting new highs 3 and stock prices hitting new lows 7.

Chicago Board of Trade Futures Market for the day, at time of this posting:
E-mini S&P 500 (ES) June 09: End of trading session price 790.50; Change for the trading session 6.25
E-mini NASDAQ-100 (NQ) June 09: End of trading session price 1,227.50; Change for the trading session 4.75
E-mini DOW $5 (YM) June 09: End of trading session price 7,518; Change for the trading session 38
E-mini S&P MidCap 400 (MF) June 09: End of trading session price 482.20; Change for the trading session 3.10

World Currencies for the Forex Market, for Forex Trading by active Forex Traders, at time of this posting:
Euro 0.7540 to U.S. Dollars 1.3263
Japanese Yen 98.890 to U.S. Dollars 0.0101
British Pound 0.6979 to U.S. Dollars 1.4329
Canadian Dollar 1.2609 to U.S. Dollars 0.7931
Swiss Franc 1.1387 to U.S. Dollars 0.8782

COMMODITY MARKETS:

Energy Sector - Nymex:
Light Crude (May 09) gained $1.49 on the trading session for a closing price of $49.90 per barrel ($US per barrel)
Heating Oil (May 09) gained $0.02 on the trading session for a closing price of $1.36 a gallon ($US per gallon)
Natural Gas (May 09) gained $0.04 on the trading session for a closing price of $3.78 per million BTU ($US per mmbtu.)
Unleaded Gas (April 09) gained $0.03 on the trading session for a closing price of $1.42 a gallon ($US per gallon)

Metals Markets - Comex:
Gold (June 09) gained $7.30 on the trading session for a closing price of $925.00 ($US per Troy ounce)
Silver (May 09) shed $0.05 on the trading session for a closing price of $12.99 ($US per Troy ounce)
Platinum (July 09) gained $8.00 on the trading session for a closing price of $1,128.80 ($US per Troy ounce)
Copper (May 09) gained $0.08 on the trading session for a closing price of $1.84 ($US per pound)

Livestock and Meat Markets - Chicago Mercantile Exchange (cents per lb.):
Lean Hogs (June 09) gained 1.43 on the trading session for a closing price of 72.40
Pork Bellies (May 09) gained 2.80 on the trading session for a closing price of 86.55
Live Cattle (June 09) gained 1.63 on the trading session for a closing price of 81.70
Feeder Cattle (May 09) gained 1.20 on the trading session for a closing price of 94.25

Other Commodities - Chicago Board of Trade (cents per bushel):
Corn (May 09) gained 18.50 on the trading session for a closing price of 404.75
Soybeans (May 09) gained 47.50 on the trading session for a closing price of 951.50

BOND MARKET:
2 year Bond Closing price 100 4/32, change 4/32, Yield 0.80, Yield change -0.04
5 year Bond closing price of 100 12/32, change 8/32, Yield 1.67, Yield change -0.05
10 year Bond closing price 100 9/32, change 9/32, Yield 2.68, Yield change -0.08
30 year Bond closing price 99 5/32, change 1, Yield 3.54, Yield change -0.07

Investing in Forex  

Posted by bharat

Investing in foreign currencies is a relatively new avenue of investing. There are considerably fewer people are aware of this market than there are people aware of several other avenues of investing. Trading foreign currency, also known as forex, is the most lucrative investment market that exists. There are several factors that make this true among which, successful forex traders earn realistic profits of one hundred plus percent each month. Compared to some of the better known investment markets such as corporate stocks, this is an unheard of return on investment. It's very necessary to mention here that a person who invests in forex must, without exception, make it a point to learn the detailed, but simple strategies and information surrounding the market. This very fact is what makes the difference between successful forex traders and other traders.

A few additional points, which create such powerful leverage for investors within the forex market are: The amount of capital required to begin investing in the market is only three hundred dollars. For the most part, any other investment market is going to demand thousands of dollars of the investor in the beginning. Also, the market offers opportunities to profit regardless what the direction of the market may be; In most commonly known markets investors sit and wait for the market to begin an up trend before entering a trade. Even then, investors, as a rule must sit and wait some more to be able to exit the trade with a nice profit. Given that the forex market produces several up, down, and sideways trends in a single day, it can easily be seen that forex stands head and shoulders above other markets. Additionally there are trading strategies, which are taught that provide for compounded profits; these are profits on top of profits. In addition, free demo accounts are available within the industry of forex trading, which facilitate the sharpening of skills without the risk losing any capital. And the advantage regarding the time factor in trading foreign currency is a very attractive point for any investor. Compared to one of the most sought after avenues of investing, which often requires forty or more hours each week, namely in the real-estate market, the forex market requires a much smaller demand on the investor's time. Forex trading requires approximately ten to fifteen hours each week to earn a full time income. It's easy to see that the advantages and great leverage that exist in the forex market, make it among the most lucrative, time liberating, and easy to enter by far.

I hope this information gives you a clear understanding of how you can turn your investing into a true method of making your money work harder for you.

Online Forex Trading  

Posted by bharat

Do you know what Forex trading is? Some people have heard of this type of trading, others have not. If you haven't, it might be something you are interested in trying. Forex trading stands for foreign exchange trading. What it consists of is the buying and selling of different currencies. This is done simultaneously, and there are people who make a lot of money with this kind of trading. This is apparent by the 1.9 million dollar turnover in this market that happens every day. Also a lot of it is done online. Online Forex trading is very popular.

The most common currencies to trade are the Euro and the U.S. dollar, and the U.S. dollar and the Japanese Yen. However, nearly all of the Forex trading done involves the major currencies of the world. These include the Euro, Japanese Yen, U.S. dollar, Canadian dollar, British Pound, Australian dollar, and the Swiss franc. The Forex exchange is different from other exchanges, such as the New York Stock Exchange, in that it does not have a physical location or central exchange. The exchange day begins in Sydney, then moves to Tokyo, on to London, and finally ends in New York. Each country takes the responsibility of regulating the Forex exchange activities in their own country. So there is no overall regulatory agency. However, this does not seem to be a problem and most countries do very well at overseeing Forex exchange activities.

There are a lot of things that influence the Forex rate. For instance, economic things, like interest rates and inflation, and also political things, such as political unrest in other countries and major changes in government cause up and down changes in the Forex rate. However, these things tend to be short-term, and don't affect it for long.

Online Forex trading sites are easy to find by surfing the Internet. Most of them provide a wealth of information for the first time trader. You can find out about the history of Forex trading, how to co it, tips on being successful, etc. You can also start trading with as little as $250 in your account on some sites. For anyone who is interested in currency or trading, it is something you should check out.

As with any type of trading, there are no guarantees that you will make money or that you won't make money. It is a smart choice to learn as much as you can about online Forex trading before investing any money and doing any trading. It is a fact that informed investors do better than those who don't know much about what they are trading. So get the fact before you dive in. You might just make a little money in a very interesting currency exchange.

Forex Trading  

Posted by bharat

So what is is Forex trading you may ask? Forex is the exchange you can buy and sell currencies. For example, you might buy British pounds (by exchanging them to the dollars you had), then, after pounds / dollar ratio goes up, you sell pounds and buy dollars again. At the end of this operation you are going to have more dollars, then you had at the beginning.

The Forex market has much higher liquidity, then the stock market, as much more money is being exchanged. Forex is spread between banks all over the planet and as a result it means 24 hour trading.

Unlike stocks, Forex trades are performed with high leverage, usually it is 100. It means that by investing $1000 you can control $100,000, and increase potential profits accordingly. Some brokers provide also so called mini-Forex, where the size of minimum deposit equals $100. It makes possible for individuals to enter this market easily.

The name convention. In Forex, the name of a "symbol" is composed of two parts — one for first currency, and another for the second currency. For example, the symbol usdjpy stands for US dollars (usd) to Japanese yen (jpy).

As with stocks, you can apply tools of the technical analysis to Forex charts. Trader's indexes can be optimized for Forex "symbols", allowing you to find winning strategy.

Example Forex transaction

Assume you have a trading account of $25,000 and you are trading with a 1% margin requirement. The current quote for EUR/USD is 1.3225/28 and you place a market order to buy 1 lot of 100,000 Euros at 1.3228, expecting the euro to rise against the dollar. At the same time you place a stop-loss order at 1.3178 representing a maximum loss of 2% of your account equity if the trade goes against you, 50 pips below your order price, and a limit order at 1.3378, 150 pips above your order price. For this trade, you are risking 50 pips to gain 150 pips, giving you a risk/reward ratio of 1 part risk to 3 parts reward. This means that you only need to be right one third of the time to remain profitable.

The notional value of this trade is $132,280 (100,000 * 1.3228). Your required margin deposit is 1% of the total, which is equal to $1322.80 ($132,280 * 0.01).

As you expected, the Euro strengthens against the dollar and your limit order is reached at 1.3378. The position is closed. Your total profit for this trade is $1500, each pip being worth $10.

Forex Enterprise — A Full Review  

Posted by bharat

A new marketing course to hit the internet by Nick Marks that advertises earnings of $1000 a day and $30,000 a month respectively. This turnkey system generating multiple streams of income is relatively new and so it is my pleasure to review it for you.

After purchasing you are given a login page where you are introduced to the system which is in website format. Everything is easy to access and well organized.

After Nick gives you a little pep talk about positive thinking and goal setting, you will be introduced to his first recommendation: join Coastal Vacations. While not a part of his main Forex system this is a recommendation I could've done without.

In the pay per click section you are given a large list of keywords that Nick found convert really well with his system. Some of the keywords in the list have bid prices already attached to them so you can get front page exposure.

The course also has $50 in free adwords credit that unfortunately only works with new accounts so I was out of luck. If you don't already have an account this is worth the price of the course alone.

The forex course shows you some inexpensive traffic methods and provides links to these sources. He also covers stuff like pop-over ads, e-mail lists and autoresponders. Not bad information by any means, and is an alternative to pay per click advertising if you have a smaller budget.

He has an ebook package that seemed like it was going to be really cool as there were dozens of bonus ebooks and software programs covering everything from creating ebooks and website templates, to getting top positions in the major search engines.

As I took a closer look at this package I realized there were some bargain bin informational products included. However, there were also alot of goodies in there as well that I found rather useful. You get so many ebooks and software in here that it really is worth far more than the price of the course.

There is a section on becoming an Ebay power seller in 90 days that goes into a fair amount of detail and wasn't bad. However, Ebay isn't something I have ever been particularly interested in doing. There is also a section on baccarat strategies that I had no interest in.

One of the last sections of his course introduces you to e-currency exchanging using the DXINONE system. It is a great way to acquaint yourself with this increasingly popular opportunity without having to buy standalone e-currency courses which can cost a couple hundred dollars.

The author has combined several effective ways to earn money online and rolled them all into one course. While I didn't jump up and down about all of his strategies, the free ebooks, software, and adwords credit make Forex Enterprise worth the money.

The Prime Time For Daily Forex Trading  

Posted by bharat

Investors and traders can trade currencies worldwide, in any trading zone, 24 hours a day, in today's foreign exchange market. London, Japan and New York top the top three currency traders among the currency dealers. These currencies are being traded 24 hours a day. The only time that currencies stop trading is on Friday when the Japanese market shuts its doors. There is a one day window after Japan closes before Europe steps in on Monday morning to open for business.

The majority of trading comes from banks, brokerages and investment companies. Companies that sell and buy foreign currencies as part of their business, like independent brokers and currency dealers, make up only a small part of the foreign exchange currency trading. The Forex market will continue to develop and grow at a steady pace as more currency traders become aware of the foreign exchange markets potential for earning and raising capital. The Forex market reaches an average daily turnover 30 times higher than any other U.S. market.

Added to the drive for supply and demand, the Forex market presses on as the enormous scope for profit potential among the currency dealers is steadily rising. The Forex market also uses the free floating system that is considered more practical for today's foreign exchange market which can experience a change in the currency rates at an estimated 4.8 seconds. The Forex market is taking on a prodigious role in the country's economy, after developing from connective financial centers to one unified market. Having expanded worldwide, the Forex market is reflecting the constant growth of all international trades and their countries. When you consider the size of the foreign exchange market, it would be important to understand that any transactions that are made with a future trading broker or an independent broker, can lead to more transactions. This can be due to the brokerage businesses as they work to readjust their positions.

Understanding your overall portfolio and its sensitivity to market unpredictability is necessary in order to be an effective day trader. This is especially important when trading foreign exchange currencies, because these currencies are priced in pairs and no single pair will trade completely independently of the others. Gaining an understanding of these correlations and how they can change will help you use them to your advantage to control your portfolio's exposure.

Correlations Defined

There is a reason for the interdependence of foreign currency pairs. For instance, if you were trading the British pound (GBP) against the Japanese yen (JPY) or GBP/JPY pair, then you're trading a type of derivative of the USD/JPY and GBP/USD pairs. Therefore, the GBP/JPY must be slightly correlated to one or both of the other currency pairs. Even so, the interdependence amongst these currencies will stem from more than the fact that they are in pairs. While there are some currencies that will move one right behind the other, the other currency pairs can move in different directions often resulting in a more complex force. In the financial world, correlation is the statistical measure of a relationship between two securities.

Then there is the correlation coefficient that ranges between -1 and +1. The correlation of +1 indicates that two currency pairs can move in the same direction nearly 100% of the time. While the correlations of -1 indicates that two currency pairs are likely to move in the opposite direction 100% of the time. If the correlation is zero, this indicates that the relationships between the currency pairs will be completely at random.

Correlations are not always stable. Correlations change, just as the global economic system and other various factors can change on a daily basis, making the ability to follow the shift in correlations very important. The correlations of today may not be in line with the long-term correlations between any two-currency pairs. This is why it's suggested to take a look at the past six months trailing correlation to provide a more clear perspective on the average relationship between the two currency pairs. This change is the result of a variety of reasons — the most common reasons being a currency pair's predisposition to commodity prices, the diverging monetary policies and unique political and economic circumstances.

Forex Avenue: The Road to Riches  

Posted by bharat

In my continuing quest to provide visitors of my site with a large amount of options to chose from when considering working from home I have done some research on Forex trading. I first learned of Forex trading while pursuing my MBA program. For those of you who have never heard of this, Forex trading is the exchange of foreign currency.

I know I would have never even know this was an option for making money had I not found out in class. Most of the really big corporations have departments of people that do this for a living because it can be very lucrative if done correctly. The best news I have learned about this process of exchanging currencies is that many of the websites that you can sign up with to do this offer free trial accounts to help you learn before you invest your money into trying it. You won't make any money in the trial accounts if you do well, it is just pretend money essentially but with the real market conditions. If you do well in the trial account you will know if this is something you want to try on your own.

Benefits to Forex trading are that is can be done 24/7 whereas the stock market is a business hours only exchange. It is 24/7 because it is done with countries around the world so clearly there are countries that are awake and working while we sleep. Another benefit is you are in control of the trading on your account. You do not need to hire a licensed broker to make your trades and charge you fees. Along those same lines, anyone who does any investing most likely knows that some funds require you to own then for a certain period of time or pay early withdrawal fees. You do not need to concern yourself with this either. One last benefit that I would like to point out is the fact that Forex is not really subject to the same kinds of swings in the market that stocks are subject to. Of course if you always buy and sell the same currencies then there will be market swings. But, because there are hundreds of currencies out there, there is always going to be something for you to make money on because while one currency is up in value another one is down and vice versa.

There are many resources available to someone interested in becoming involved in this type of training. The Federal Reserve Bank's website is just one example of the information available — http://www.ny.frb.org/markets/foreignex.html. Here is another article that you will find helpful in starting out in this field. http://www.forex.com/pdf/pro2.pdf . I have also included one of the sites that does offer a free lesson.

While there are many benefits to this type of training, as I mentioned above, there are certainly risks involved as well. There are risks with exchange rates, central banks in foreign countries, and risks involving interest rates and credit. Forex is quickly becoming a popular way to help diversify your investment portfolio. If you are good with understanding investing concepts and enjoy doing it this may be the home business opportunity for you. Just do your research and try to find one of the sites offering the free trial account to practice with and you are well on your way down the Road to Riches.

Why Trade the FOREX?  

Posted by bharat

My purpose for writing this article is to demonstrate to you the advantages of trading on the Forex market. However, there is one myth that I want to dispel before I go further. The myth is that there is a difference between trading and investing. To dispel that myth I quote from Al Thomas, President of Williamsburg Investment Company, who wrote "If It Doesn't Go Up, Don't Buy It". He said "Everyone who invests is a trader, only the time period is different." It is a lesson that I took seriously after taking a beating in the stock market in 2000.

So now, let's compare features of currency trading to those of stock and commodity trading.

Liquidity — The Forex market is the most liquid financial market in the world around 1.9 trillion dollars traded everyday. The commodities market trades around 440 billion dollars a day, and the US stock market trades around 200 billion dollars a day. This ensures better trade execution and prevents market manipulation. It also ensures easily executable trading.

Trading Times — The Forex market is open 24 hours a day (except weekends) which means that in the US it opens at 3:00 pm Sunday (EST) and closes Friday at 5:00 (EST), allowing active traders to choose the times they want to trade. Commodities trading hours are all over the board depending on which commodity you are trading. Including extended trading times US stocks can be traded from 8:30 am to 6:30 pm (ET) on weekdays.

Leverage — Depending on your Forex account size, your leverage may be 100:1, although there are Forex brokers that offer leverage of up to 400:1 (not that I would ever recommend that kind of leverage). Leverage in the stock market can be as high as 4:1, and in the commodities market, leverage varies with the commodity traded but it can be quite high. Because the commodity markets are not as liquid as the Forex market, its leverage is inherently riskier. Although I was never shut out of a commodity trade by the day limit, the fear was always in the back of my mind.

Trading costs — Transaction costs in the Forex market is the difference between the buy and sell price of each currency pair. There are no brokerage fees. For both the stock and the commodity markets, there are transaction costs and brokerage fees. Even when you use discount brokers, those fees add up.

Minimum investment — You can open a Forex trading account for as little as $300.00. It took $5,000 for me to open my futures trading account.

Focus — 85% of all trading transactions are made on 7 major currencies. In the US stock market alone there are 40,000 stocks. There are just over 200 commodity markets, although quite a few are so illiquid that they are not traded except by hedgers. As you can see, the fewer number of instruments allows us to study each one more closely.

Trade execution — In the Forex market, trade execution is almost instantaneous. In both the equity and commodity markets, you count on a broker to execute your trades and their results are sometimes inconsistent.

While all of these features make trading the Forex market very attractive, it still requires a lot of education, discipline, commitment and patience. All trading can be risky.

How To Get Started In FOREX Trading  

Posted by bharat

The foreign exchange market (Forex) offers many advantages to investors. But you need to know where to begin.

This short guide will give you the Forex basics, so you can quickly start participating in this fast growing market.

In the past, foreign exchange trading was limited to large players such as national banks and multi-national corporations. In the 1980's the rules were changed to allow smaller investors to participate using margin accounts. Margin accounts are the reason why Forex trading has become so popular. With a 100:1 margin account, you can control $100,000 with a $1,000 investment.

A Learning Curve

Forex is not simple, though, so you'll need some knowledge to make wise investment decisions. Although it is relatively easy to start trading on the Forex, there are risks involved.

Your first move as a beginner should be to find out as much as possible about the market before risking a dime.

Find A Broker

Forex traders usually require a broker to handle transactions. Most brokers are reputable and are associated with large financial institutions such as banks. A reputable broker will be registered as a Futures Commission Merchant (FCM) with the Commodity Futures Trading Commission (CFTC) as protection against fraud and abusive trade practices.

Open an Account

Opening a Forex account is as simple as filling out a form and providing the necessary identification. The form includes a margin agreement which states that the broker may interfere with any trade deemed to be too risky. This is to protect the interests of the broker, since most trades are done using the broker's money.

Once your account has been established, you can fund it and begin trading.

Many brokers offer a variety of accounts to suit the needs of individual investors. Mini accounts allow you to get involved in Forex trading for as little as $250. Standard accounts may have a minimum deposit of $1000 to $2500, depending on the broker. The amount of leverage (how much borrowed money you can use) varies with account type. High leverage accounts give you more money to trade for a given investment.

Trades are commission-free, meaning that you can make many trades in one day without worrying about incurring high brokerage fees. Brokers make their money on the 'spread': the difference between bid and ask prices.

Paper Trading

Beginning traders are strongly advised get accustomed to Forex by doing "paper trades" for a period of time. Paper trades are practice transactions that don't involve real capital. They allow you to see how the system works while learning how to use the various software tools provided by most Forex brokers.

Most online brokers have demo accounts that allow you to make free paper trades for up to 30 days. Every new Forex investor should use these demo accounts at least until they are consistently showing profits.

Forex Software

Each broker has its own set of software tools for making transactions, but there are a few tools that are common to all Forex brokers. Real-time quotes, news feeds, technical analyses and charts, and profit-and-loss analyses are some of the features you can expect to see on most online brokers' web sites.

Almost every broker operates on the Internet. To access a broker's online services you'll need a reasonably modern computer, a fast Internet connection, and an up-to-date operating system. Once your account is set up, you can access it from any computer just by entering your account name and password. If for some reason you are unable get to a computer, most brokers will allow you to make trades over the phone.

There are lots of ways to make money. Forex trading is just one more potential stream of income -- if you are prepared to learn and practice.

The Benefits of Trading The Forex Market  

Posted by bharat

Historically, the FX market was available most to major banks, multinational corporations and other participants who traded in large transaction sizes and volumes. Small-scale traders including individuals like you and I, had little access to this market for such a long time. Now with the advent of the Internet and technology, FX trading is becoming an increasingly popular investment alternative for the general public.

The benefits of trading the currency market:

It is open 24-hours and it closes only on the weekends;

It is very liquid and efficient;

It is very volatile;

It has very low transaction costs;

You can use a high level of leverage (borrowed money) with ease; and

You can profit from a bull or a bear market.

Continuous, 24-Hour Trading

The currency exchange is a 24-hour market. You may decide to trade after you come home from work. Regardless of what time-frame you want to trade at whatever time of the day, there would be enough buyers and sellers to take the other side of your trade. This feature of the market gives you enough flexibility to manage your trading around your daily routine.

Liquidity And Efficiency

When there are a lot of buyers and a lot of sellers, you can expect to buy or sell at a price that is very close to the last market price. The currency market is the most liquid market in the world. Trading volume in the currency markets can be between 50 and 100 times larger than the New York Stock Exchange (Source: Oanda.)

When you are trading stocks, you may have experienced events where one piece of news accelerates or decelerates the price of the underlying stock you may have bought into. Perhaps a director has been kicked out by the shareholders of a company or the company has just released a new product and big investors are buying the shares of a particular company. Share prices can be drastically affected by the actions or inactions of one or a few individuals. So if you are relying on television reports and newspapers to get your news, most of the opportunities or warnings will have come too late for you to take advantage by the time you get them.

The value of currencies on the other hand is affected by so many factors and so many participants that the likelihood of any one individual or group of individuals drastically affecting the value of a currency is minute. Because of its sheer size, the currency market is hard to manipulate. The ability for people to engage in 'insider trading' is virtually eliminated. As an average trader, you are less disadvantaged. You are likely to be playing on relatively equal ground along with all the other traders and investors whom you are competing against.

Note about price gaps:

For those people who have already traded other markets, you probably know about price 'gaps'. 'Gaps' occur when prices 'jump' from one price level to another without having taken any incremental steps to get there. For example, you may be trading a share that closes at $10 at the end of today but due to some event that happens overnight; it opens tomorrow at $5 and continues to go downwards for the rest of the day.

Gaps bring about another degree of uncertainty that may meddle with a trader's strategy. Probably one of the most worrying aspects of this is when a trader uses stop-losses. In this case, if a trader puts a stop-loss at $7 because he no longer wants to be in a trade if the share price hits $7, his trade will remain open overnight and the trader wakes up tomorrow with a loss bigger than he may have been prepared for.

After looking at a couple of forex charts, you will realize that there are little price 'gaps' or none at all, especially on the longer-term charts like the 3-hour, 4-hour or the daily charts.

Volatility

Trading opportunities exist when prices fluctuate. If you buy a share for $2 and it stays there, there is no opportunity to make a profit. The magnitude of level of this fluctuation and its frequency is referred to as volatility. As a trader, it is volatility that you profit from. Large volume transactions and high liquidity combined with fewer trading instruments generate greater intra-day volatility in the currency market that can be exploited by day-traders. The high volatility of the currency market indicates that a trader can potentially earn 5 times more money from currency trading than trading the most liquid shares.

Volatility is a measure of maximum return that a trader can generate with perfect foresight. Volatility for the most liquid stocks are between 60 to 100. Volatility for currency trading is 500. (Source: Oanda.)

In this respect, currencies make a better trading vehicle for day-traders than the equity markets.

Low Transaction Costs

A currency transaction typically incurs no commission or transaction fees. For a forex trader, the spread is the only cost he or she needs to cover in taking on a position. In addition, because of the currency market's efficiency, there is little or no 'slippage' costs.

'Slippage' is the cost involved when traders enter the market at a price worse than the level they wanted to get into. For example, a trader wants to buy a share at $2.00 but by the time, the order gets executed, his gets to buy the shares at $2.50. That fifty cents difference is his slippage cost. Slippage cost affects large-volume traders a lot. When they buy large quantities of a commodity, it oversupplies the market with buy orders. This applies a pressure for the price to go up. By the time they get to buy all the quantities they wanted, the average price they got their commodities would be higher than the price they intended to get them for. Conversely, when they sell large quantities of a commodity, they oversupply the market with sell orders. This applies a pressure for the price to go down. By the time they finish selling all their commodities, their average selling price is less than what they initially intended to sell them for.

Due to lower transaction costs, minimum slippage and strong intra-day volatility, individuals can trade frequently at small costs. As an approximate, you may only expect to have a spread of 0.03% of your position size. To give you an example, you can buy and sell 10,000 US Dollars and this will only incur a 3-point spread, equivalent to $3.

Leverage

There are not a lot of banks or people who would lend you money so that you can use it to trade shares. And if there are, it would be very hard for you to convince them to invest in you and in your idea that a certain share is going to go up or down. Therefore, most of the time, if you have a $10,000 account, you can only really afford to buy $10,000 worth of stocks.

In currency trading however, because you use 'borrowed money', you can trade $10,000 of a currency and you only need anywhere between fifty (For a margin lending ratio of 200:1) to two hundred dollars ( For a margin lending ratio of 50:1) in your trading account. This makes it possible for an average trader with a small trading account, under $10,000 to be able to profit sufficiently from the movements of the currency exchange rates. This concept is explained further in The Part-Time Currency Trader.

Profit From A Bull And Bear Market

When you are trading shares, you can only profit when the price of a stock goes up. When you suspect that it is about to go down or that it is just going to be moving sideways, then the only thing you can do is sell your shares and stand aside. One of the frustrations of trading shares is that an individual cannot profit when prices are going down. In the currency market, it is easy for you to trade a currency downward so that you can profit when you think it is going to lose value. This is easy to do because currency trading simply involves buying one currency and selling another, there is no structural bias that makes it difficult to trade 'downwards'. This is why the currency market has been occasionally referred to as the eternal bull market.

Advantages of the Forex Market  

Posted by bharat

What are the advantages of the Forex Market over other types of investments?

When thinking about various investments, there is one investment vehicle that comes to mind. The Forex or Foreign Currency Market has many advantages over other types of investments. The Forex market is open 24 hrs a day, unlike the regular stock markets. Most investments require a substantial amount of capital before you can take advantage of an investment opportunity. To trade Forex, you only need a small amount of capital. Anyone can enter the market with as little as $300 USD to trade a "mini account", which allows you to trade lots of 10,000 units. One lot of 10,000 units of currency is equal to 1 contract. Each "pip" or move up or down in the currency pair is worth a $1 gain or loss, depending on which side of the market you are on. A standard account gives you control over 100,000 units of currency and a pip is worth $10.

The Forex market is also very liquid. When trading Forex you have full control of your capital.

Many other types of investments require holding your money up for long periods of time. This is a disadvantage because if you need to use the capital it can be difficult to access to it without taking a huge loss. Also, with a small amount of money, you can control

Forex traders can be profitable in bullish or bearish market conditions. Stock market traders need stock prices to rise in order to take a profit. Forex traders can make a profit during up trends and downtrends. Forex Trading can be risky, but with having the ability to have a good system to follow, good money management skills, and possessing self discipline, Forex trading can be a relatively low risk investment.

The Forex market can be traded anytime, anywhere. As long as you have access to a computer, you have the ability to trade the Forex market. An important thing to remember is before jumping into trading currencies, is it wise to practice with "paper money", or "fake money." Most brokers have demo accounts where you can download their trading station and practice real time with fake money. While this is no guarantee of your performance with real money, practicing can give you a huge advantage to become better prepared when you trade with your real, hard earned money. There are also many Forex courses on the internet, just be careful when choosing which ones to purchase.

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