samedi 23 février 2008
Best Forex Trading Education
There are many forex trading courses and educational material that a person can find online. However how does someone go about finding the best Forex trading education information? Certainly there are huge amounts of information that will educate you about Forex trading, but not all of it will help you to achieve your goals of making a profit rather than losing. Below are some guidelines which should help you to find the best forex trading education course Point 1 - Avoid Day Trading Systems Many people when starting out in Forex trading will be enticed into thinking that the best way of making money is through day trading. Certainly if you were to ask a person who is selling a Forex trading course for details relating to their real time track record with regard to profits relating to day trading they will not be able to provide one to you. So if you are looking to produce an income from your trading then do not waste your time on day trading. Point 2 - Real Time Profit Records When buying any sort of forex education course, you need to be provided with these records. If a person selling their system does not have confidence in the abilities of their system and are not investing their own monies then why should you. Unfortunately some of these courses being offered online today are from people who have either never traded in their lives or have failed when they have used the system themselves. Point 3 - Understand It Once you find a forex trading system which either has a track record or is willing to show their real profits then there are some other things which you will need to take into consideration. It is important that you learn everything you can about the system in question so that you understand it completely. Unfortunately if you have no understanding of how the system works then you will not have the confidence to trust in it and follow the system through to a likely conclusion if you start to suffer losses. By keeping these points in mind, you will find the best Forex trading education that is suited to your kind of personality. There are literally hundreds of places on the web that can offer you an education as well as free advice on Forex trading so do some investigating and you will soon find one that is ideal for you.
mercredi 13 février 2008
10 Tips for your Success in Forex Trading
1. Implement a forex trading plan.
“If you fail to plan, you plan to fail”. A trading plan is especially crucial in forex trading to stay ‘in-control’ against the emotional stress in speculative situation. Often, your emotions will blind and lead you to the negative sides: greed causes you to over-ride on a win while fear causes you to cut short in your profits. Hence, a well organized operation has to be predetermined and strictly followed.
2. Trade within your means
If you cannot afford to lose, you cannot afford to win. Losing is a not a must but it is the natural in any trading market. Trading should be always done using excess money in your savings. Before you, stard to traning in forex we suggest you to put aside some of your income to set up your own investment funds and trade only using that funds.
3. Avoid emotion trading
If you do not have a forex trading plan, make one. If you have a trading plan, follow it strictly! Never ever attempt to hold your weakened position and hope the market will turn back in your favor direction. You might end up losing all your capital if you keep holding. Move on, stay within your trading plan, and admit your mistakes if things do not turn as you want.
4. Ride on a win and cut your losses
Forex trader should always ride till the market turns around whenever a profit is show; while during losing, never hesitate to admit your mistakes and exit the market. It is human nature to stay long on loses and satisfy with small profits – this is why as we mentioned earlier that a strictly followed trading plan is a must-have.
5. Love the trends
Trends are your friends. Although currency values fluctuate but from the big picture it normally goes in a steady direction. If you are not sure on certain moves, the long term trend is always your primary reference. In long run, trading with the trends improves your odds in the forex market
6. Stop looking for leading indicators
There aren't any in the Forex market. While some firms make a lot of money selling software that predicts the future, the reality is that if those products really worked, they wouldn't be giving the secret away.
7. Avoid trading in a thin market
Trade on popular concurency pairs and avoid thin market. The lack of public participation will cause difficulties in liquidating your positions. If you are beginners, we suggest the big five: USD/EUR, USD/JPY, USD/GBD, USD/CHF, and EUR/JPY.
8. Avoid trading in too many markets
Do not confuse yourself by overtrading in too many markets especially if you are a beginner. Go for the major currency paris and drill down your studies in it.
9. Implement a proper trading system
There are hundreds of forex trading system available on line. Pick one that you are most comfortable with and stick with it. Stay organized in your trades and fully utilized stop-loss or limit functions in your trades.
10. Keep learning
The best investment is always the investment on your brain. Without a doubt, Forex trading needs much more than just a few guidelines or tips to be successful. Experience, knowledge, capital, fortitude, and even some help of luck are all crucial in one’s success in the FX market. if you lose in a trade, do not lose the experience in it. Learn from your mistakes and regain your position in the next trade.
“If you fail to plan, you plan to fail”. A trading plan is especially crucial in forex trading to stay ‘in-control’ against the emotional stress in speculative situation. Often, your emotions will blind and lead you to the negative sides: greed causes you to over-ride on a win while fear causes you to cut short in your profits. Hence, a well organized operation has to be predetermined and strictly followed.
2. Trade within your means
If you cannot afford to lose, you cannot afford to win. Losing is a not a must but it is the natural in any trading market. Trading should be always done using excess money in your savings. Before you, stard to traning in forex we suggest you to put aside some of your income to set up your own investment funds and trade only using that funds.
3. Avoid emotion trading
If you do not have a forex trading plan, make one. If you have a trading plan, follow it strictly! Never ever attempt to hold your weakened position and hope the market will turn back in your favor direction. You might end up losing all your capital if you keep holding. Move on, stay within your trading plan, and admit your mistakes if things do not turn as you want.
4. Ride on a win and cut your losses
Forex trader should always ride till the market turns around whenever a profit is show; while during losing, never hesitate to admit your mistakes and exit the market. It is human nature to stay long on loses and satisfy with small profits – this is why as we mentioned earlier that a strictly followed trading plan is a must-have.
5. Love the trends
Trends are your friends. Although currency values fluctuate but from the big picture it normally goes in a steady direction. If you are not sure on certain moves, the long term trend is always your primary reference. In long run, trading with the trends improves your odds in the forex market
6. Stop looking for leading indicators
There aren't any in the Forex market. While some firms make a lot of money selling software that predicts the future, the reality is that if those products really worked, they wouldn't be giving the secret away.
7. Avoid trading in a thin market
Trade on popular concurency pairs and avoid thin market. The lack of public participation will cause difficulties in liquidating your positions. If you are beginners, we suggest the big five: USD/EUR, USD/JPY, USD/GBD, USD/CHF, and EUR/JPY.
8. Avoid trading in too many markets
Do not confuse yourself by overtrading in too many markets especially if you are a beginner. Go for the major currency paris and drill down your studies in it.
9. Implement a proper trading system
There are hundreds of forex trading system available on line. Pick one that you are most comfortable with and stick with it. Stay organized in your trades and fully utilized stop-loss or limit functions in your trades.
10. Keep learning
The best investment is always the investment on your brain. Without a doubt, Forex trading needs much more than just a few guidelines or tips to be successful. Experience, knowledge, capital, fortitude, and even some help of luck are all crucial in one’s success in the FX market. if you lose in a trade, do not lose the experience in it. Learn from your mistakes and regain your position in the next trade.
What is FOREX?
FOREX (FOReign EXchange market) is an international foreign exchange market, where money is sold and bought freely. It began back in the 1970’s with the introduction of free exchange rates and floating currencies. Thanks to the internet more and more people are able to reap the profits of the currency market with global Forex trading.
This is a market that trades as over US$1 trillion a day. (It is impossible to determine an absolutely exact number because trading is not centralized on an exchange.) It trades more than any other market. There are some distinct differences in the currency market compared to the stock market. Money moves much faster so no single investor has the ability to actually affect market price and trades are able to open and close within seconds which is not possible on the stock market.
From New Zealand, to Australia, to Asia, the Middle East, Europe and America, Forex Markets are open twenty-four hours a day. All the major markets, including London, New York, and Tokyo are part of it. Of course the United Kingdom and the United States account for over fifty percent of the turnover. When the time of day comes for all the major markets to overlap, trading can get pretty heavy.Besides the major markets there are also five main currencies that are a part of Foreign exchange Markets. These currencies include the United States Dollar (USD), the Euro (EUR), Japanese yen (JPY), British Pound (GBP) and the Swiss Franc (CHF). Each of these is traded in what are called pairs. In this particular market they are also called crosses, in what is known in the Forex Markets as the 'spot' market. A lot of this market is determined by supply and demand of certain major currencies and how they affect the current world market and its situations.
The superior liquidity allows the traders to open and/or close positions within a few seconds. The time of keeping a position is arbitrary and has no limits: from several seconds to many years. It depends only on your trading strategies. Although the daily fluctuations of currencies are rather insignificant, you may use the credit lines, that are accessible even to currency speculators with small capitals ($ 1,000 - 5,000), where the profit may be impressive.
For example, you have analyzed the situation in the market and come to the conclusion that the pound will go up against the dollar. You open 1 lot for buying the pound (GBP) with the margin 1% (1:1000 leverage) at the price of 1.49889 and wait for the exchange rate to go up. Some time later your expectations become true. You close the position at 1.5050 and earn 61 pips (about $ 405).
Everyday fluctuations of currencies constitute about 100 to 150 pips, giving FX traders an opportunity to make money on these changes.
In FOREX, it's not obligatory to buy some currency first in order to sell it later. It's possible to open positions for buying and selling any currency without actually having it. Usually Internet-brokers establish the minimum deposit such as $ 2000, for working in the FOREX market, and grant a leverage of 1:100. That is, opening the position at $100,000, a trader invests $1,000 and receives $99.000 as a credit.
This is a market that trades as over US$1 trillion a day. (It is impossible to determine an absolutely exact number because trading is not centralized on an exchange.) It trades more than any other market. There are some distinct differences in the currency market compared to the stock market. Money moves much faster so no single investor has the ability to actually affect market price and trades are able to open and close within seconds which is not possible on the stock market.
From New Zealand, to Australia, to Asia, the Middle East, Europe and America, Forex Markets are open twenty-four hours a day. All the major markets, including London, New York, and Tokyo are part of it. Of course the United Kingdom and the United States account for over fifty percent of the turnover. When the time of day comes for all the major markets to overlap, trading can get pretty heavy.Besides the major markets there are also five main currencies that are a part of Foreign exchange Markets. These currencies include the United States Dollar (USD), the Euro (EUR), Japanese yen (JPY), British Pound (GBP) and the Swiss Franc (CHF). Each of these is traded in what are called pairs. In this particular market they are also called crosses, in what is known in the Forex Markets as the 'spot' market. A lot of this market is determined by supply and demand of certain major currencies and how they affect the current world market and its situations.
The superior liquidity allows the traders to open and/or close positions within a few seconds. The time of keeping a position is arbitrary and has no limits: from several seconds to many years. It depends only on your trading strategies. Although the daily fluctuations of currencies are rather insignificant, you may use the credit lines, that are accessible even to currency speculators with small capitals ($ 1,000 - 5,000), where the profit may be impressive.
WHAT IS MARGINAL TRADING?
Margin trading is trading with a borrowed capital. The idea of marginal trading stems from the fact that in FOREX speculative interests can be satisfied without a real money supply. This decreases overhead expenses for transferring money and gives an opportunity to open positions with a small account in US dollars, buying and selling a lot of other currencies. That is, on can conduct transactions very quickly, getting a big profit, when the exchange rates go up or down. Many speculative transactions in the international financial markets are made on the principles of marginal trading.
Marginal trading in an exchange market uses lots. 1 lot equals approximately $100,000, but to open it, it is enough to have only from 0.5% to 4% of the sum.
For example, you have analyzed the situation in the market and come to the conclusion that the pound will go up against the dollar. You open 1 lot for buying the pound (GBP) with the margin 1% (1:1000 leverage) at the price of 1.49889 and wait for the exchange rate to go up. Some time later your expectations become true. You close the position at 1.5050 and earn 61 pips (about $ 405).
Everyday fluctuations of currencies constitute about 100 to 150 pips, giving FX traders an opportunity to make money on these changes.
In FOREX, it's not obligatory to buy some currency first in order to sell it later. It's possible to open positions for buying and selling any currency without actually having it. Usually Internet-brokers establish the minimum deposit such as $ 2000, for working in the FOREX market, and grant a leverage of 1:100. That is, opening the position at $100,000, a trader invests $1,000 and receives $99.000 as a credit.
mardi 12 février 2008
An Insider's Guide to the Real World of Foreign Exchange Trading
Foreign currency exchange—"Forex"—is today's #1 new investment opportunity. Revolutions in technology, regulation, and globalization have made Forex trading accessible to every active investor. Only one thing has been missing: An objective, clear "user's guide" to Forex trading. Now it's here—and it's in your hands.
Simply and clearly, Forex Revolution reveals everything you need to know to trade Forex hands-on—from fundamental and technical trading strategies to the unyielding discipline that's essential to success.
In this book, Peter Rosenstreich brings together insider techniques from all over the industry: Traders, banks, Forex firms, even the National Futures Association. You'll find expert guidance on everything from handling 24/7 markets to profiting from the emergence of China.
Unlike other books, Forex Revolution doesn't require you to subscribe to costly services or purchase expensive tools. Whether you're an individual investor or a money manager new to Forex, this book gives you all you need: Facts, techniques, resources and—above all—the insider's edge.
* Why Forex has become your #1 profit opportunity
How the currency markets became indispensable to the active investor
* Meet the players, markets, tools, portals, and platforms
Everything you should know before you get started
* Choose the right FX investments
Understand currency futures, options, swaps, and more
* Master both fundamental and technical trading strategies
and discover why you need to know both
* Gut check: What it takes to win in the Forex markets
Develop the discipline you need to succeed
Foreign Exchange Trading: Today's #1 Opportunity for Explosive Profits!
* The practical, hands-on Forex trading guide for individual investors
* No costly subscriptions or expensive tools needed
* Delivers unbiased, up-to-the-minute techniques you can start profiting from today
* Covers everything from trading rules to fundamental and technical strategies
* Realistically assesses risks and pitfalls—and shows how to avoid or mitigate them
Forex Isn't Just the World's Biggest Market—It's Your #1 Profit Opportunity!
Every day, more than $1.5 trillion in currency trades are executed. That dwarfs the daily volume of the NYSE, NASDAQ, FTSE, DAX, and Tokyo Nikkei—combined! Today's growing currency volatility has made Forex the place to earn huge profits. Think Forex is just for secretive financiers and central bankers? Not any more! The rules have changed, and this book shows you exactly how to get in on the action.
No other book offers as much unbiased, practical, how-to guidance for trading from Forex. Peter Rosenstreich doesn't just present his own techniques—he reveals never-before-published tips and techniques from traders throughout the industry. Above all, Mr. Rosenstreich tells you the whole truth: How currency markets work, how to trade, what the risks are, what to do about them...and what it really takes to win.
Rules For Trader
I am a trader of currencies and my focus here is the forex market. However, many the
principles contained herein can be applied to any commodity or equity market. Whether one is trading pounds or pork bellies, for pips or points, trading is trading.
These rules are to be followed to the letter. Ignore them at your peril.
Rules summary :
Define your long-term goals
Treat trading as a business
End every day in profit
Every trade must conform to objective criteria
Never force a trade
Always have a profit target for the day
Always stick to a small daily profit target
Your initial trading stake should be small
Do not enter a trade without a profit target
Always set a hard stop
Do not trade unless you are nearly 100% certain about what will happen
Do not trade when signals are mixed
Follow your system
Look at longer timeframes for both support and resistance, and for clues r
future price direction
Be aware of peak market times
Be careful when trading in the Asian session
Be careful when trading forex on non-news days
Avoid reversing trades
Stay out of the market near news release time
Watch your broker like a hawk
Stop trading after two consecutive losses
Take profits quicker after a losing streak
Be wary of chat rooms and online forums
Stay healthy
Don't give up
principles contained herein can be applied to any commodity or equity market. Whether one is trading pounds or pork bellies, for pips or points, trading is trading.
These rules are to be followed to the letter. Ignore them at your peril.
Rules summary :
Define your long-term goals
Treat trading as a business
End every day in profit
Every trade must conform to objective criteria
Never force a trade
Always have a profit target for the day
Always stick to a small daily profit target
Your initial trading stake should be small
Do not enter a trade without a profit target
Always set a hard stop
Do not trade unless you are nearly 100% certain about what will happen
Do not trade when signals are mixed
Follow your system
Look at longer timeframes for both support and resistance, and for clues r
future price direction
Be aware of peak market times
Be careful when trading in the Asian session
Be careful when trading forex on non-news days
Avoid reversing trades
Stay out of the market near news release time
Watch your broker like a hawk
Stop trading after two consecutive losses
Take profits quicker after a losing streak
Be wary of chat rooms and online forums
Stay healthy
Don't give up
Forex Online Choose Your Broker
Today's Forex trading is well known as a lucrative way to make money online. It became an essential part for investor's portfolio as you can simply gain thousands in minutes by trading currencies at home. For those who are new to the trade, Forex means Foreign Exchange Market where it involves buying and selling the different currencies of the world. Profits are made through the difference of selling and buying price - you earn when you buy-low sell-high while lose when buy-high sell-low.
Choosing a suitable Forex broker is the very first step when you are getting started in Forex trading. As in any trading market, individual trades in Forex market are mostly done via currency brokers. There are certain issues you must consider when choosing for suitable Forex broker, listed below are a few of the important ones.
1. Certification of the Forex brokerage firm
Forex trading involves a huge sum of money. As a trader, I am sure you want your money handle by reliable broker. This is why certification of the Forex brokerage firm is important. Traders are recommended to deal only with authorized currency traders. If you are trading in United States, make sure your Forex brokerage firm is registered with Futures Commission Merchant (FCM) and regulated by the Commodity Futures Trading Commission (CFTC). Also, most large brokerage firms are connected in some way to a bank or financial institution. Since the majority of Forex business is based on credit, the partnership with financial institution is crucial to offers their clients better in Forex investment.
2. Low spread trading
Currencies are normally traded in pairs of ask-bid price. The difference of the selling (bid) and the buying (ask) is known as spread. For example of EUR/USD 1.2435/1.2440, the Forex quote here means you can buy 1 Euro Dollar with 1.2440 USD or sell 1 Euro 1.2435, and the spread is (1.2440 - 1.2435) = 0.0005. As Forex brokers do not charge commissions on their client trades, they are making money off the spreads. If the spreads are low, this means they are offering a cheaper service and thus traders have better profit value. Thus, Forex brokerage that offers lower spread is more preferred.
3. Trading tools and tips
Different Forex brokers will offer different trading tips and tools. When selecting Forex broker, check what kind of trading tools and analysis data they are offering. Not all brokers offer the same set of tools and data thus careful consideration is necessary. A good Forex brokerage firm should offers real-time charts, technical analysis tools, real-time trade alerts, and website support. If you are new to Forex trading, you also look for broker that offers demo account before opening up a real account.
4. Avoid brokers with strict margin rules
Strict Margin Rules - When you are trading with borrowed money, your broker has a say in how much risk you take. As such, your broker can buy or sell at its discretion, which can be a bad thing for you. Let's say you have a margin account, and your position takes a dive before rebounding to all-time highs. Even if you have enough cash to cover, some brokers will liquidate your position on a margin call at that low. This action on their part can cost you very much. Unfortunately, you cannot verify this factor before starting up your account with the broker. The best way to avoid this kind of brokers is to ask more in Forex trading forums or other experienced Forex traders.
5. Leverage level
Some brokers offer 1:50 trade margins and some offer 1:200. The fact is leverage level might varies a lot for different brokerage firm. While higher trade margin does not guarantee your profit in Forex market, higher trade margin however will give you a better chance to win big when the opportunity comes. High leverage level is especially important when you have little capital outlay.
By filtering Forex brokers with the condition listed above, you actually raise your profit chances in Forex trading. Without a doubt, Forex is gaining its popularity fast against other kind of trading. No limited market access, no liquidity issues-after market hours, zero commission fees, low capital requirements with high leverage rates, and no restrictions on short selling -- Forex can be very beneficial to a variety of people.
Like any other trading business, if you are new to it, best advice you can get is to learn and practice more before you test your 'wings'. Seminars, eBooks, Internet, papers, video courses - all these are helpful to raise your confidence level before you trade with your real hard-earn dollars. Plan your investment wisely by investing first on yourself; you shall get your reward at the end of the road
Choosing a suitable Forex broker is the very first step when you are getting started in Forex trading. As in any trading market, individual trades in Forex market are mostly done via currency brokers. There are certain issues you must consider when choosing for suitable Forex broker, listed below are a few of the important ones.
1. Certification of the Forex brokerage firm
Forex trading involves a huge sum of money. As a trader, I am sure you want your money handle by reliable broker. This is why certification of the Forex brokerage firm is important. Traders are recommended to deal only with authorized currency traders. If you are trading in United States, make sure your Forex brokerage firm is registered with Futures Commission Merchant (FCM) and regulated by the Commodity Futures Trading Commission (CFTC). Also, most large brokerage firms are connected in some way to a bank or financial institution. Since the majority of Forex business is based on credit, the partnership with financial institution is crucial to offers their clients better in Forex investment.
2. Low spread trading
Currencies are normally traded in pairs of ask-bid price. The difference of the selling (bid) and the buying (ask) is known as spread. For example of EUR/USD 1.2435/1.2440, the Forex quote here means you can buy 1 Euro Dollar with 1.2440 USD or sell 1 Euro 1.2435, and the spread is (1.2440 - 1.2435) = 0.0005. As Forex brokers do not charge commissions on their client trades, they are making money off the spreads. If the spreads are low, this means they are offering a cheaper service and thus traders have better profit value. Thus, Forex brokerage that offers lower spread is more preferred.
3. Trading tools and tips
Different Forex brokers will offer different trading tips and tools. When selecting Forex broker, check what kind of trading tools and analysis data they are offering. Not all brokers offer the same set of tools and data thus careful consideration is necessary. A good Forex brokerage firm should offers real-time charts, technical analysis tools, real-time trade alerts, and website support. If you are new to Forex trading, you also look for broker that offers demo account before opening up a real account.
4. Avoid brokers with strict margin rules
Strict Margin Rules - When you are trading with borrowed money, your broker has a say in how much risk you take. As such, your broker can buy or sell at its discretion, which can be a bad thing for you. Let's say you have a margin account, and your position takes a dive before rebounding to all-time highs. Even if you have enough cash to cover, some brokers will liquidate your position on a margin call at that low. This action on their part can cost you very much. Unfortunately, you cannot verify this factor before starting up your account with the broker. The best way to avoid this kind of brokers is to ask more in Forex trading forums or other experienced Forex traders.
5. Leverage level
Some brokers offer 1:50 trade margins and some offer 1:200. The fact is leverage level might varies a lot for different brokerage firm. While higher trade margin does not guarantee your profit in Forex market, higher trade margin however will give you a better chance to win big when the opportunity comes. High leverage level is especially important when you have little capital outlay.
By filtering Forex brokers with the condition listed above, you actually raise your profit chances in Forex trading. Without a doubt, Forex is gaining its popularity fast against other kind of trading. No limited market access, no liquidity issues-after market hours, zero commission fees, low capital requirements with high leverage rates, and no restrictions on short selling -- Forex can be very beneficial to a variety of people.
Like any other trading business, if you are new to it, best advice you can get is to learn and practice more before you test your 'wings'. Seminars, eBooks, Internet, papers, video courses - all these are helpful to raise your confidence level before you trade with your real hard-earn dollars. Plan your investment wisely by investing first on yourself; you shall get your reward at the end of the road
Forex Online Must Do in Begineer
It is believe that more than 50% of Forex traders are losing money long term in the foreign currency exchange market. Yet, there are still a lot of Forex traders jump in to the market, trade blindly and lost their money. Trade after trade, its surprising to see that 'normally-losing' traders keep betting (not investing!) their money into Forex market without reviewing their trading strategy. No matter you are the experienced or the beginners, there are certain 'must-do' when trading Forex to manage the risk wisely and to increase your possibilities in making profits.
'Must-Do 1': Invest in your brain first
If you are serious about investing in Forex market, building up your trading skills and knowledge is the very first step that you must take. Seminars, workshops, video tutorials, online learning, or even books are handful to help us learn from the professional.
Learn to implement technical charting into your trades; learn using indicators to determine the right time to enter/exit the market; brush up your experience by trading with a demo account… all these are effective to ensure your smooth starts and it will definitely reduce your chances of losing money.
'Must-Do 2': Getting the right trading system
It is wise to research very well and consider all the various brokers' system available to you before making your choice. By applying certain level of computer automations (such like charting and doing auto trades), trading; a well-designed trading system will reduce your work dramatically. This in turns give you more time to focus on studying the market and plotting your strategy. Also, using auto-trading system will avoid you from doing emotional-trades.
'Must-Do 3': Have a trading plan
As the old says: “Fail to plan is plan to fail”. Trading is like sailing boat middle in the sea; you will not be going anywhere without compass and navigator.
What is the detail objective of the trades? How much profit to expect from the trade? When to get into the market? How much to invest? What price to exit the market? If things do not work out, when do execute the stop loss order? How high is the affordable risk? A good trading plan should at least answers the above questions. Further more, if your trading plan fails, review and modify your trading plan. Find out your mistakes and learn from them.
'Must-Do 4': Money management
Money management is controlling your risk through the use of protective stops, while balancing your potential for profit against your potential for loss. For example, good money management means you know your profit objective and the odds of being right or wrong, and controlling your risk with protective stops. You are better off with a trade where you might lose $1000 if you are wrong and make $500 if you are right, that would work eight times out of ten, than to take a trade where you would make $1000 if you are right and lose only $500 if you are wrong, but works only one time out of three.
If you are investing using your savings, it's even more important that you manage your money in your trading and in your personal expenses. Chances are high that you miss a good investing chance because of you are lack of capital.
'Must-Do 5': Discipline trading
Trading Forex with discipline is important. Success in Forex trading could not be achieved by plotting out the best trading plan. It is also depends on implementing the trading plan. Be discipline, trade according to your plan and never trade with your emotion no matter you are losing money or winning. Greed will stop you from taking profit at predetermined level; while fear will stop you from making the nice kill in the market.
'Must-Do 1': Invest in your brain first
If you are serious about investing in Forex market, building up your trading skills and knowledge is the very first step that you must take. Seminars, workshops, video tutorials, online learning, or even books are handful to help us learn from the professional.
Learn to implement technical charting into your trades; learn using indicators to determine the right time to enter/exit the market; brush up your experience by trading with a demo account… all these are effective to ensure your smooth starts and it will definitely reduce your chances of losing money.
'Must-Do 2': Getting the right trading system
It is wise to research very well and consider all the various brokers' system available to you before making your choice. By applying certain level of computer automations (such like charting and doing auto trades), trading; a well-designed trading system will reduce your work dramatically. This in turns give you more time to focus on studying the market and plotting your strategy. Also, using auto-trading system will avoid you from doing emotional-trades.
'Must-Do 3': Have a trading plan
As the old says: “Fail to plan is plan to fail”. Trading is like sailing boat middle in the sea; you will not be going anywhere without compass and navigator.
What is the detail objective of the trades? How much profit to expect from the trade? When to get into the market? How much to invest? What price to exit the market? If things do not work out, when do execute the stop loss order? How high is the affordable risk? A good trading plan should at least answers the above questions. Further more, if your trading plan fails, review and modify your trading plan. Find out your mistakes and learn from them.
'Must-Do 4': Money management
Money management is controlling your risk through the use of protective stops, while balancing your potential for profit against your potential for loss. For example, good money management means you know your profit objective and the odds of being right or wrong, and controlling your risk with protective stops. You are better off with a trade where you might lose $1000 if you are wrong and make $500 if you are right, that would work eight times out of ten, than to take a trade where you would make $1000 if you are right and lose only $500 if you are wrong, but works only one time out of three.
If you are investing using your savings, it's even more important that you manage your money in your trading and in your personal expenses. Chances are high that you miss a good investing chance because of you are lack of capital.
'Must-Do 5': Discipline trading
Trading Forex with discipline is important. Success in Forex trading could not be achieved by plotting out the best trading plan. It is also depends on implementing the trading plan. Be discipline, trade according to your plan and never trade with your emotion no matter you are losing money or winning. Greed will stop you from taking profit at predetermined level; while fear will stop you from making the nice kill in the market.
Tips Succes Forex Online Trading
1. Implement a trading plan.
“If you fail to plan, you plan to fail”. A trading plan is especially crucial in Forex trading to stay ‘in-control’ against the emotional stress in speculative situation. Often, your emotions will blind and lead you to the negative sides: greed causes you to over-ride on a win while fear causes you to cut short in your profits. Hence, a well organized operation has to be predetermined and strictly followed.
2. Trade within your means
If you cannot afford to lose, you cannot afford to win. Losing is a not a must but it is the natural in any trading market. Trading should be always done using excess money in your savings. Before you start to trade in Forex, we suggest you to put aside some of your income to set up your own investment funds and trade only using that funds.
3. Avoid emotion trading
If you do not have a trading plan, make one. If you have a trading plan, follows it strictly! Never ever attempt to hold your weakened position and hope the market will turn back in your favor direction. You might end up losing all your capital if you keep holding. Move on, stay within your trading plan, and admit your mistakes if things do not turn as you want.
4. Ride on a win and cut your losses
Forex trader should always ride till the market turns around whenever a profit is show; while during losing, never hesitate to admit your mistakes and exit the market. It is human nature to stay long on loses and satisfy with small profits – this is why as we mentioned earlier that a strictly followed trading plan is a must-have.
5. Love the trends
Trends are your friends. Although currency values fluctuate but from the big picture it normally goes in a steady direction. If you are not sure on certain moves, the long term trend is always your primary reference. In long run, trading with the trends improves your odds in the Forex market.
6. Stop looking for leading indicators
There aren't any in the Forex market. While some firms make a lot of money selling software that predicts the future, the reality is that if those products really worked, they wouldn't be giving the secret away.
7. Avoid trading in a thin market
Trade on popular currency pairs and avoid thin market. The lack of public participation will cause difficulties in liquidate your positions. If you are beginners, we suggest the big five: USD/EUR, USD/JPY, USD/GBD, USD/CHF, and EUR/JPY.
8. Avoid trading in too many markets
Do not confuse yourself by overtrading in too many markets especially if you are a beginner. Go for the major currency pairs and drill down your studies in it.
9. Implement a proper trading system
There is hundreds of trading systems available on line. Pick one that you are most comfortable with and stick with it. Stay organized in your trades and fully utilized stop-loss or limit functions in your trades.
10. Keep learning
The best investment is always the investment on your brain. Without a doubt, Forex trading needs much more than just a few guidelines or tips to be successful. Experience, knowledge, capital, fortitude, and even some help of luck are all crucial in one’s success in the FX market. if you lose in a trade, do not lose the experience in it. Learn from your mistakes and regain your position in the next trade.
“If you fail to plan, you plan to fail”. A trading plan is especially crucial in Forex trading to stay ‘in-control’ against the emotional stress in speculative situation. Often, your emotions will blind and lead you to the negative sides: greed causes you to over-ride on a win while fear causes you to cut short in your profits. Hence, a well organized operation has to be predetermined and strictly followed.
2. Trade within your means
If you cannot afford to lose, you cannot afford to win. Losing is a not a must but it is the natural in any trading market. Trading should be always done using excess money in your savings. Before you start to trade in Forex, we suggest you to put aside some of your income to set up your own investment funds and trade only using that funds.
3. Avoid emotion trading
If you do not have a trading plan, make one. If you have a trading plan, follows it strictly! Never ever attempt to hold your weakened position and hope the market will turn back in your favor direction. You might end up losing all your capital if you keep holding. Move on, stay within your trading plan, and admit your mistakes if things do not turn as you want.
4. Ride on a win and cut your losses
Forex trader should always ride till the market turns around whenever a profit is show; while during losing, never hesitate to admit your mistakes and exit the market. It is human nature to stay long on loses and satisfy with small profits – this is why as we mentioned earlier that a strictly followed trading plan is a must-have.
5. Love the trends
Trends are your friends. Although currency values fluctuate but from the big picture it normally goes in a steady direction. If you are not sure on certain moves, the long term trend is always your primary reference. In long run, trading with the trends improves your odds in the Forex market.
6. Stop looking for leading indicators
There aren't any in the Forex market. While some firms make a lot of money selling software that predicts the future, the reality is that if those products really worked, they wouldn't be giving the secret away.
7. Avoid trading in a thin market
Trade on popular currency pairs and avoid thin market. The lack of public participation will cause difficulties in liquidate your positions. If you are beginners, we suggest the big five: USD/EUR, USD/JPY, USD/GBD, USD/CHF, and EUR/JPY.
8. Avoid trading in too many markets
Do not confuse yourself by overtrading in too many markets especially if you are a beginner. Go for the major currency pairs and drill down your studies in it.
9. Implement a proper trading system
There is hundreds of trading systems available on line. Pick one that you are most comfortable with and stick with it. Stay organized in your trades and fully utilized stop-loss or limit functions in your trades.
10. Keep learning
The best investment is always the investment on your brain. Without a doubt, Forex trading needs much more than just a few guidelines or tips to be successful. Experience, knowledge, capital, fortitude, and even some help of luck are all crucial in one’s success in the FX market. if you lose in a trade, do not lose the experience in it. Learn from your mistakes and regain your position in the next trade.
Kinds of t'Forex
Forward Market. On the forward Forex are used two tools: forward outright deals and exchange deals or swaps. A swap deal is a combination of a spot deal and a forward outright deal.
Forward Market. On the forward Forex are used two tools: forward outright deals and exchange deals or swaps. A swap deal is a combination of a spot deal and a forward outright deal.
Futures Market. Currency futures are specific types of forward outright deals. Because
they are derived from the spot price, they are derivative instruments. (See Figure 1.2). They are specific with regard to the expiration date and the size of the trade amount. Whereas, generally, forward outright deals—those that mature past the spot delivery date—will mature on any valid date in the two countries whose currencies are being traded, standardized amounts of foreign currency futures mature only on the third Wednesday of March, June, September, and December.
Options Market. A currency option is a contract between a buyer and a seller that gives the
buyer the right, but not the obligation, to trade a specific amount of currency at a predetermined price and within a predetermined period of time, regardless of the market price of the currency; and gives the seller, or writer, the obligation to deliver the currency under the predetermined terms, if and when the buyer wants to exercise the option.
Forward Market. On the forward Forex are used two tools: forward outright deals and exchange deals or swaps. A swap deal is a combination of a spot deal and a forward outright deal.
Futures Market. Currency futures are specific types of forward outright deals. Because
they are derived from the spot price, they are derivative instruments. (See Figure 1.2). They are specific with regard to the expiration date and the size of the trade amount. Whereas, generally, forward outright deals—those that mature past the spot delivery date—will mature on any valid date in the two countries whose currencies are being traded, standardized amounts of foreign currency futures mature only on the third Wednesday of March, June, September, and December.
Options Market. A currency option is a contract between a buyer and a seller that gives the
buyer the right, but not the obligation, to trade a specific amount of currency at a predetermined price and within a predetermined period of time, regardless of the market price of the currency; and gives the seller, or writer, the obligation to deliver the currency under the predetermined terms, if and when the buyer wants to exercise the option.
Currencies
The other major currencies traded against the U.S. dollar are the euro, Japanese yen, British pound, and Swiss franc.
The U.S. Dollar. The United States dollar is the world's main currency – an universal measure
to evaluate any other currency traded on Forex. All currencies are generally quoted in U.S. dollar terms. Under conditions of international economic and political unrest, the U.S. dollar is the main safe-haven currency, which was proven particularly well during the Southeast Asian crisis of 1997-1998. As it was indicated, the U.S. dollar became the leading currency toward the end of the Second World War along the Breton Woods Accord, as the other currencies were virtually pegged against it. The introduction of the euro in 1999 reduced the dollar's importance only marginally.
The other major currencies traded against the U.S. dollar are the euro, Japanese yen, British pound, and Swiss franc.
The Euro. The euro was designed to become the premier currency in trading by simply being
quoted in American terms. Like the U.S. dollar, the euro has a strong international presence
stemming from members of the European Monetary Union. The currency remains plagued by unequal growth, high unemployment, and government resistance to structural changes. The pair was also weighed in 1999 and 2000 by outflows from foreign investors, particularly Japanese, who were forced to liquidate their losing investments in euro-denominated assets. Moreover, European money managers rebalanced their portfolios and reduced their euro exposure as their needs for hedging currency risk in Europe declined.
The Japanese Yen. The Japanese yen is the third most traded currency in the world; it has a
much smaller international presence than the U.S. dollar or the euro. The yen is very liquid around the world, practically around the clock. The natural demand to trade the yen concentrated mostly among the Japanese keiretsu, the economic and financial conglomerates. The yen is much more sensitive to the fortunes of the Nikkei index, the Japanese stock market, and the real estate market.
The British Pound. Until the end of World War II, the pound was the currency of reference.
The currency is heavily traded against the euro and the U.S. dollar, but has a spotty presence against other currencies. Prior to the introduction of the euro, both the pound benefited from any doubts about the currency convergence. After the introduction of the euro, Bank of England is attempting to bring the high U.K. rates closer to the lower rates in the euro zone. The pound could join the euro in the early 2000s, provided that the U.K. referendum is positive.
The Swiss Franc. The Swiss franc is the only currency of a major European country that
belongs neither to the European Monetary Union nor to the G-7 countries. Although the Swiss economy is relatively small, the Swiss franc is one of the four major currencies, closely resembling the strength and quality of the Swiss economy and finance. Switzerland has a very close economic relationship with Germany, and thus to the euro zone. Therefore, in terms of political uncertainty in the East, the Swiss franc is favored generally over the euro. Typically, it is believed that the Swiss franc is a stable currency. Actually, from a foreign
exchange point of view, the Swiss franc closely resembles the patterns of the euro, but lacks its liquidity. As the demand for it exceeds supply, the Swiss franc can be more volatile than the euro.
The U.S. Dollar. The United States dollar is the world's main currency – an universal measure
to evaluate any other currency traded on Forex. All currencies are generally quoted in U.S. dollar terms. Under conditions of international economic and political unrest, the U.S. dollar is the main safe-haven currency, which was proven particularly well during the Southeast Asian crisis of 1997-1998. As it was indicated, the U.S. dollar became the leading currency toward the end of the Second World War along the Breton Woods Accord, as the other currencies were virtually pegged against it. The introduction of the euro in 1999 reduced the dollar's importance only marginally.
The other major currencies traded against the U.S. dollar are the euro, Japanese yen, British pound, and Swiss franc.
The Euro. The euro was designed to become the premier currency in trading by simply being
quoted in American terms. Like the U.S. dollar, the euro has a strong international presence
stemming from members of the European Monetary Union. The currency remains plagued by unequal growth, high unemployment, and government resistance to structural changes. The pair was also weighed in 1999 and 2000 by outflows from foreign investors, particularly Japanese, who were forced to liquidate their losing investments in euro-denominated assets. Moreover, European money managers rebalanced their portfolios and reduced their euro exposure as their needs for hedging currency risk in Europe declined.
The Japanese Yen. The Japanese yen is the third most traded currency in the world; it has a
much smaller international presence than the U.S. dollar or the euro. The yen is very liquid around the world, practically around the clock. The natural demand to trade the yen concentrated mostly among the Japanese keiretsu, the economic and financial conglomerates. The yen is much more sensitive to the fortunes of the Nikkei index, the Japanese stock market, and the real estate market.
The British Pound. Until the end of World War II, the pound was the currency of reference.
The currency is heavily traded against the euro and the U.S. dollar, but has a spotty presence against other currencies. Prior to the introduction of the euro, both the pound benefited from any doubts about the currency convergence. After the introduction of the euro, Bank of England is attempting to bring the high U.K. rates closer to the lower rates in the euro zone. The pound could join the euro in the early 2000s, provided that the U.K. referendum is positive.
The Swiss Franc. The Swiss franc is the only currency of a major European country that
belongs neither to the European Monetary Union nor to the G-7 countries. Although the Swiss economy is relatively small, the Swiss franc is one of the four major currencies, closely resembling the strength and quality of the Swiss economy and finance. Switzerland has a very close economic relationship with Germany, and thus to the euro zone. Therefore, in terms of political uncertainty in the East, the Swiss franc is favored generally over the euro. Typically, it is believed that the Swiss franc is a stable currency. Actually, from a foreign
exchange point of view, the Swiss franc closely resembles the patterns of the euro, but lacks its liquidity. As the demand for it exceeds supply, the Swiss franc can be more volatile than the euro.
Forex Begin
Forex – What is it? The international currency market Forex is a special kind of the world financial market. Trader’s purpose on the Forex to get profit as the result of foreign currencies purchase and sale. The exchange rates of all currencies being in the market turnover are permanently changing under the action of the demand and supply alteration. The latter is a strong subject to the influence of any important for the human society event in the sphere of economy, politics and nature. Consequently current prices of foreign currencies evaluated for instance in the US dollars fluctuate towards its higher and lower meanings. Using these fluctuations in accordance with a known principle “buy cheaper – sell higher” traders obtain gains. Forex is different in compare to all other sectors of the world financial system thanks to his heightened sensibility to a large and continuously changing number of factors, accessibility to all individual and corporative traders, exclusively high trade turnover which creates an ensured liquidity of traded currencies and the round - the clock business hours which enable traders to deal after normal hours or during national holidays in their country finding markets abroad open. Just as on any other market the trading on Forex, along with an exclusively high potential profitability, is essentially risk - bearing one. It is possible to gain a success on it only after a certain training including a familiarization with the structure and kinds of Forex, the principles of currencies price formation, the factors affecting prices alterations and trading risks levels, sources of the information necessary to account all those factors, techniques of the analysis and prediction of the market movements as well as with the trading tools and rules. An important role in the process of the preparation for the trading on Forex belongs to the demo-trading (that is to trade using a demo-account with some virtual money), which allows to testify all the theoretical knowledge and to obtain a required minimum of the trade experience not being subjected to a material damage.
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