Watch out for people and companies claiming that the forex training they offer is guaranteed to make you rich. You need to focus on learning everything you can about forex trading and the foreign exchange market itself, before you even think about profits. Profits are important, but you can't get to those profits without a proper forex trading education. If you're truly interested in making a profit trading in foreign currency, you must learn about the market, its fluctuations, as well as the risk and rewards.
Before you sign up for a forex trading course, consider how much knowledge you already have about foreign exchange. If you have basic knowledge but feel that you need more to succeed in the foreign exchange market, you may want to consider a forex educational course that you can take online for the additional information. With some background information on foreign currency, you may want to consider register for a free forex training course.
If, on the other hand, you have no idea how to calculate U.S. dollars (USD) to euros (EUR), there are many beginners' forex trading courses available. Many of these forex training classes are available online for convenience and at local learning annexes for a more in-depth study of trading foreign currency.
Since you're looking into currency trading to supplement your income, it's also important that you don't fall prey to overpriced forex trading courses. While you should expect to pay some fee for these courses, you shouldn't over extend yourself learning how to make money. If your forex training instructor charges too much money, simply move on to the next trainer. With so much information, available, learning forex is as simple as purchasing a book or signing up for a class.
There isn't just one forex guru from whom you need to learn; find a forex training class that promises to teach you the basics at a price that you feel comfortable with. Since the forex market isn't bound to one single location, such as the New York Stock Exchange, you can find classes online that provide you with free demos. If your budget doesn't allow for expensive forex trading courses, a little research will yield plenty of results for free forex training.
The best way to begin learning forex is to sign up for a training course. If you decide to sign up for a free forex training course, supplement what you learn with books on foreign currency, watch the market for changes, and learn everything you can through other inexpensive means. You don't have to be a millionaire to find success in forex trading; all you need are the correct tools for success. Learning forex and changing your financial future all begin with the right forex training.
Tuesday, November 17, 2009
Finding Forex Trading Course
Improve Your Chances of Financial Success With the Perfect Forex Trading Software
Today, forex trading software comes in two kinds. One of these is also called the service side software which essentially keeps some kind of order among the millions of people going online and making forex transactions every single day.
The second kind is the client side software. This is the kind that you as a trader will be frequently using in order to remotely access your forex account and make trades, using your own computer at home or in the office. These two kinds of forex trading software coordinate with each other on a continuous basis and serve as the skeleton of online forex trading.
Forex trading software provides the trader with tons of information including the current market movements and the variations in the exchange rates of particular currencies. Best of all, these bits of data show up on your screen in real time, which means that no time is wasted at all on transmission delays.
It doesn't stop there either. After sending you all the current information on your currency trades, the forex trading software can also create charts from this data and generate recommendations as to what the best move might be.
All transactions using the forex trading software are done online, and this raises the question of Internet security. Hackers are always present online and they would definitely be tempted to get into forex accounts that have thousands of dollars. Fortunately, the developers of forex trading software have foreseen situations like this, which is why they have integrated multiple layers of security measures on both the client side and the service side of the forex trading software. This elaborate security system protects not only the trillions of dollars that change hands every day, but the privacy of the traders as well.
A good forex trading software program can give you an excellent vantage point from where you can see everything that is going on in the forex market at any give time. It can create charts, comparisons and predictions of what the market will look like the in the next minute, the next hour or the next day. It can definitely take care of all your buying and selling transactions. What it cannot do is to make your decision for you as to what your move is going to be. This is why you still need to know how to interpret the market data, regardless of how advanced or sophisticated your forex trading software might be.
You should also remember that there are many forex companies out there that make their own versions of the forex trading software. In order to maximize your earnings, you should be very smart in making your choice. It would help to take a look at the reviews and recommendations given by the top experts and critics in the industry.
The first time you go online to search for a good forex trading software program, you might be overwhelmed by the number of results that turn up. Not all of these programs can help you. Believe it or not, there are some bad apples in there that are simply trying to take advantage of newbies like yourself in order to make profits for themselves. Most forex trading companies offer trial periods during which you can use their software for free. Take advantage of this offer to make an evaluation of their service. Don't be afraid to try several different programs until you find one that works well for you.
Once you have made your choice, you can then open a forex account with them and begin trading for real. Of course, by this time you should have learned a thing or two about the market already. Otherwise, you should postpone making trades until you're sure that you know what you are doing. Most forex trading software programs include 24-hour access to expert advice, so if ever you are feeling unsure of what to do, don't hesitate to give them a call. Soon enough, you will be able to make your own trades confidently and you will be on the way to great financial success.
Essential of Forex Trading
At the beginning stage, most of the large companies would carry out their Forex trading via the different banks or even through the major institutes that deal with finances. These institutes had to be the ones that operate internationally. Forex trading has attracted a lot of popularity today because of the presence of modern technology. Via the use of the internet and the increasing telecom market, it is easier to spread messages and to bring across information on issues such as the economic polices worldwide. With the creation of the Forex Software that you can find on the internet, you will easily get the latest news about the Forex trading online. This has actually become a platform that facilitates the exchanges of trading since it makes it easy for you to seize opportunities on the spot and to implement your decisions immediately.
Apart from some problems at the beginning stage, Forex trading on the internet has become more standardized and the people who take part in Forex trading can now get a close to 100% secured access via the different companies that deal with Forex trading. The advantage of using these companies is that they are free from restrictions and give the customers more freedom of choice. As people now become more aware of the usefulness of Forex trading on the internet, it has helped to boost the popularity of advanced technology. Since it has been so successful to trade online, more people are entering this Forex trading platform and as a result, it has become commercially possible to use the Forex Software as a mean for trading exchanges to take place.
Surveys have shown that more and more people are getting involved in Forex trading. People joined for different reasons and in fact, some are even starting it as a hobby. In the conventional Foreign Exchange Market, this was usually dominated by big companies such as banks or Multi National Companies and you don't get commoners involved apart from brokers. However, now there are many guide books on the trading methodologies, as well as trend analysis, so it will make it easy and safe for any newbies who might want to learn Forex trading online.
If you understand the margin trading concept that you apply in Forex, you can actually save a lot of money on deposits. It refers to the margin that is traded on and this margin differs depending on the banks' policies but it will always in percentile terms based on the initial amount. How much you are allowed to play in Forex trading depends on what is the original amount given by the bank. The actual potential can be illustrated by the example below. Let's say a bank has imposed a 2% as the margin deposit. This means you will only have to put in $20000 USD as a deposit in order to trade for two million dollars. As such, you will be able to increase by 200% for your profit. On the other hand, should you be unlucky and loses money in the Forex trading, the margin deposit of 2% will mean a loss of 200% too. Whether you are playing Forex trading online or offline, the rules are the same.
So long as you participate in investments, there will be the impending dangers of profits or losses. As it is, the Forex trader's luck online can be anywhere between 2 to 25% on an average each day. As a newbie in Forex trading, it is essential that you know that your deposit's interest rates will change depending on the currencies. As such, most traders play in a few different currencies in the world of Forex, which is what is known as the variable currency and the Base currency. This is applicable both in the conventional mode as well as the Forex online mode. In order to be a successful Forex trader, you will need to have an ability to analyze, a high level of knowledge on the subject and your intuition to act appropriately when the opportunities come. You must also be able to make full use of your Return on Investment (ROI) so as to gain the most profits from this lucrative financial market
Forex Trading- What are the Risks
As shown above if you are c
REX TRADING- What are you Risks:
Every single investment comes with some level of risk. We have all seen the odd bank go under which has quiet often being seen as a ‘safe’ investment. While forex trading there is the risk of loss in trading off-exchange forex contracts can be substantial. It can sometimes be greater than the initial investment when guaranteed stop losses are not in place. Pleas make sure you are using a broker that offers guaranteed stops, click on this link for a recommendation . So if you are considering participating in this market, you should understand some of the risks associated with this product so you can make an informed decision before you start trading. So Trader Beware. What does come with higher risk, that’s right higher returns.
As shown above if you are considering trading foreign currency trading there is that element of high level of risk and may not be suitable for all customers. If you cannot take a loss, do yourself a favor and don’t TRADE, as no matter how brilliant of a trader you are you cannot pick the market 100% of the time.
Money Management:
If you have a solid money management plan in place this can help to reduce the risk of forex trading. So when you start trading you should only use funds to speculate in forex trading that you are prepared to loss, or any type of highly speculative investment for that matter, are funds that represent risk capital fore example funds you can afford to lose without affecting your financial situation. So the day to day money that you require to live on, don’t trade with that. There are other reasons why forex trading may or may not be an appropriate investment for you, and they are highlighted below.
This can be a volatile market and it can move against you very quickly. Also remember you are trading with leverage, in some cases up to 400:1 so make sure you use leverage that you are comfortable with.
You have just blown the stack, lost it all that how fast this market can move.
When you start trading, you are required to open the account with a deposit of money (often referred to as a security deposit or margin, which is what you leverage agains) with your forex dealer. This will then allow you to order or simple terms buy or sell an off-exchange forex contract. Above we showed with the leverage (up to 400:1), a relatively small amount of money can enable you to hold a forex position worth many times the account value. So $1000 can be leverage up to $400,000 so it doesn’t take much of movement to lose the initial $1000. The smaller the deposits in relation to the underlying value of the contract, the greater the leverage. If the price moves in an unfavorable direction, high leverage can produce large losses in relation to your initial deposit. In fact, even a small move against your position may result in a large loss, including the loss of your entire deposit. This is why using a broker that offers guaranteed stops is paramount. THIS MUST BE ONE OF YOUR TRADING RULES: NO EXCEPTION.
Now there is also the flip side to, if you get the trade direction correct it can result in major gains. Maybe this is why we all love Forex Trading.
Now if you have a great trade and make great profits from forex trading, do not get overconfident. If you become over confident it can be dangerous. Also make sure that you do not overtrade remember the currency market is open 156 hours per week, so don’t panic if you miss one trade. If you exit a trade you should not automatically re enter a trade.
Make sure that when you are trading that you have your rules, stick them, follow them. The forex market is doesn’t work on a popularity basis, so need to ask family and friends their opinion on the trade it will only confuse things.
Forex trading can be very rewarding but make sure you go in with your eyes open, as 90% of traders will go broke, mainly through the above reasons. It is always advisable to get some level of knowledge before you start out in the market. There are a host of forex education courses available.
Saturday, October 17, 2009
start the forex trading
How to Succeed with Mini Forex Trading
mini forex trading account
mini forex trading account
A good way to start the forex trading if you are staring with a small sum of money is mini forex trading. You can test different forex trading systems without a lot of risk, refine your trading techniques and keep good records on your trades and the result. It is a great way to learn the tricks and skills needed and get a feel for forex trading to succeed without having to go to great expense with mini forex trading.
So many benefits for small traders will get from mini forex trading. Mini trading was planned for group or individuals of people starting out in the trade market that are incapable to invest a big sum of money. For beginners that are new to the forex trade market to allow them to first get a feel, mini forex trading is suitable.
The cost of mini forex trading accounts is a few hundred dollars and will allow you to trade in a real market situation without exposing yourself to too much risk. Before getting a regular trading account, it’s suitable to open a mini forex account first to gain valuable experience and skills.
Mini Forex Trading is specially designed for people who are just recently attractive to currency trading. Very nice leverage is a potential thing for investor a mini Forex trading account with investing a mere $250.
Mini Forex trading accounts are ideal for increasing exposure as trading confidence builds because the traders are not limited to only trading one lot at a time. A trader can just trade 10 mini lots to make an equal trade to one ordinary lot. If a broker has more than one price on one or both parties, they will automatically optimize the price. That means, the broker will always show the lowest offer and the highest bid
Convenience
The fact that you need to go to bed or spend time with your family does not stop the forex markets from operating. In other markets you can trade a specific window that usually lasts 6-10 hours, which is physically manageable. Forex, on the other hand, demands 24 hour monitoring. That can be accomplished through automated trading systems or, less optimally, through pre-set stop and limit orders or physical monitoring of a trade.
Cost
"No commission trading" is a marketing slogan many dealers offer as a perceived benefit of forex. But the fact that there is no commission does not change the high level of transaction costs paid to dealers through the bid-ask spread.
There is no doubt that the liquidity, leverage, convenience, and transaction costs found in the forex markets are great tools for investors – but not always. Just as easily as these tools can be used for wealth creation, they can be misused for wealth destruction. The novice investor destroys wealth, and the sophisticated investor creates it
Goals are critical to your success. If you haven’t written your goals, you’re still just wishing for success. When creating your goals use the SMART formula. Ensure that your goals are, (1) Sensible, (2) Measurable, (3) Achievable, (4) Realistic, and (5) Time specific. Clearly state what you want and be realistic with current resources.
Your goals should include financial elements such as annual sales revenue, gross profit, sales per sales person etc. However, they should also include non-financial elements such as units sold, contracts signed, clients acquired, articles published etc.
Once you’ve set your goals, implement processes to internalize them with all team members such as reviewing them in sales meetings, displaying thermometer posters, awarding achievement prizes etc. Measurements for success should focus on the process of continuous improvement and enhancing performance. Innovate or evaporate. Tomorrow Step 7 – Developing Your Marketing Budget. Cia
Throughout my years of investing I have had the opportunity to be a
part of many different experiences – some good and some bad. What
I have learned by being trained and working with investors in all
different markets is that the discipline to follow the fundamental rules
to investing can make or break someone’s bank account. Sadly, I’ve
seen a lot of great investors go from multi-millionaires to dead broke
in a matter of minutes because they became foolish.
Whether I have seen a stock trader or someone who works in the
options and futures pits, I have found that when they lose their shirt it
is because they didn’t stick to the basics.
While even amateur investors know these basic rules to investing, it
is much easier said than done. Maybe this is because most investors
have a competitive edge, and we think we can out-perform or
outsmart the next guy. But the bottom line is it is pretty tough to
outsmart the market.
Investing is a zero sum game. For every winner there is a loser,
which is what keeps the market efficient. Knowing this, it is possible
to develop an edge in order to win more than you lose. This is why
some of the best trading systems make people so much money.
These systems have found a way to analyze trading opportunities
and automate the process so you can get in and out of trades quickly
and profitably.
However, many investors and professional traders still manage to
end up in the red. These investors are unsuccessful because they let
emotions get in the way, are too stubborn to be successful, or they
think they know something other people don’t. They can literally have
their trading system screaming at them to get in or out of a trade, and
yet they ignore all the signs.
What these losers fail to realize is that the market is irrational
because it is driven by emotion and institutional houses throwing
say in the short-term the market is entirely driven by investor
psychology. People hear a stock tip about an upcoming earnings
report, and they race to get in before everyone else does. An
earnings report disappoints Wall Street and the stock drops 10% in
after-hours trading, which keeps investors up all night in a panic and
they immediately sell first thing in the morning.
While psychology ends up being the primary driver for decisions for
individual investors, the assets you buy should not be an emotional
decision. This is why it is imperative for investors to create a strategy
with specific rules that they can stick to.
However, the media loves to drive this emotion. There are television
stations dedicated to the up-to-the-minute movements in the market,
rumors and other current events. This coverage keeps viewers glued
to the television, which drives advertising revenue.
The latest revision comes from Frank Gong, JPMorgan Chase's (JPM) chief China economist, who expects the country's economy to grow 7.8% this year, compared with his previous forecast of 7.2% a few months ago. "The economy is doing a lot better than the market expects," says Gong. "The risk is on the upside." His prognosis for next year is even rosier, with an expectation of 9% growth, compared with his earlier forecast of 8.5%. If the rest of the world pulls out of its slump next year, China could even be looking at double-digit growth again, he says.
Many other economists are sounding bullish about China, where GDP growth bottomed out in the first quarter at 6.1%. Last month the World Bank upped its estimate for Chinese economic growth in 2009 to 7.2%, having forecast in March only 6.5% growth. A few days later the Organization for Economic Cooperation & Development weighed in with a prediction of 7.7%, vs. an earlier figure of 6.3%. Credit Suisse (CS) is calling for 8% growth this year and 9% in 2010.
For the moment, China’s exports continue to contract, although at a slower rate. On July 10, Xinhua News Agency reported a 21.4% decline in exports during June from a year earlier, continuing an eight-month slump. However, exports grew 7.5% from May, and some believe things have turned a corner. JPMorgan’s Gong notes that the export component of China’s Purchasing Managers Index in May was above 50 for the first time in a year, signaling an expansion rather than a contraction in new export orders.
What's surprising and encouraging about the strength of China's recovery is that so much of it seems to be fueled by Chinese consumers. To be sure, the $586 billion economic stimulus package unveiled by the government last November has helped prime the pump, as has a nearly $1.3 trillion expansion in credit since the beginning of the year.
Pakistan’s exports were growing at 16 percent per annum on the back of strong macroeconomic policies pursued at home and the hospitable international trading environment the period (2002-03 to 2005-06). The impressive export performance backtracked to dismal in 2006-07 when they hardly managed to grow at less than 4 percent. Overall exports recorded a growth of 10.2 percent during the first ten months (July- April) of the current fiscal year against 3.6 percent in the same period of last year. In absolute terms, exports have increased from $13847.3 million to $15255.5 million in the period. Although exports growth has remained far short of the average growth of 16 percent achieved during 2002-03 to 2005-06, but it was satisfactory when viewed in the backdrop of poor show last year.Imports during the first ten months (July-April) of the current fiscal year (2007-08) grew by 28.3 percent compared with the same period of last year, reaching to $32.06 billion. After growing at an average rate of 29 percent per annum during 2003-04, Pakistan’s import growth slowed to a moderate level of 6.9 percent in the last fiscal year (2006-07). Import’s growth exhibited a sharp pick up in 2007-08 on the back of an extra-ordinary surge in the imports of petroleum products, food and raw material. Non-oil imports were up by 22.5 percent and non-oil and non food imports spiked by 18.8 percent during the first ten months (July- April) of the current fiscal year.Imports of the petroleum group registered extraordinary growth of 47 percent and reached to $8670 million. The petroleum group accounts for 27 percent of total imports but contributed 39 percent in the overall growth of imports for the year. The rise in imports of the petroleum group has been the fallout of extraordinary hike in crude oil prices in the international market, as well as the substantial increase in its quantity imported. The imports of raw material contributed almost 21 percent to this year’s rise in import bill. This is followed by imports of food group which contributed 16 percent to the overall imports growth. Imports of petroleum products and edible oil contributed 47 percent to the additional import bill in FY 08. Additional 18.7 percent contribution came from the import of wheat and fertilizer. These four items accounted for two-thirds of imports growth. Consumer durables contribution was negative (0.4 percent) mainly on account of decline in the import of road motor vehicles.Pakistan’s current account deficit (CAD) widened to US$11.6 billion during Jul-Apr FY08 against US$6.6 billion in the comparable period of last year, showing an increase of 75.7 percent. Even when compared to the size of the economy, CAD was substantially high at 6.8 percent of GDP during Jul-April FY08 as against 4.6 percent for the same period last year. The deterioration of the current account deficit was mainly driven by sharp rise in the trade deficit along with an increase in net outflows from services and income account. Services account deficit widened by 44.2 percent during Jul-April FY08 to reach $5.6 billion. This deterioration was contributed by relatively high import growth and the decline in export of services. However, the strong growth in current transfers on the back of impressive growth in remittances almost entirely offset the deficit in services and income account thereby leaving the trade deficit as the fundamental source of expansion in the current account deficit. The current transfers witnessed an impressive increase of 16.4 percent during Jul-April FY08 on the back of strong growth in both private and official transfers.The Pak rupee, after remaining stable for more than four years, lost significant value against the US dollar and depreciated by 6.4 percent during July-April 2008. The fall in the value of the rupee is mainly attributed to rising oil prices in the international market, widening of current account deficit and the uncertain political situation in the country.Worker’s remittances registered commendable growth during Jul-Apr FY08 by growing by 19.5 percent on top of 22.7 percent growth in the corresponding period of last year. Worker’s remittance totaled $5.3 billion in the first ten months of (Jul-April) of the fiscal year as against $4.4 billion in the same period last year. Pakistan’s total foreign exchange reserves stood at $12,344 million as on end-April 2008, significantly lower than the end-June 2007 level of $15,646 million. Reserves peaked to $16,443 million at end Oct 2007, while they showed significant depletion of $4.1 billion during Nov-Apr FY08. During Jul-Oct 2007, reserves improved by 5.1 percent due to the relatively lower current account deficit and substantial inflows in the financial account. However, October onwards, net outflows from portfolio investment, and a steep rise in the current account deficit led to a sharp decline in the foreign exchange reserves of the country.
Analysis - Why It Can Sometimes Be CompletelyI personally believe that every forex trader should at least have a basic understanding of fibonacci analysis and the key levels to watch out for, which in my view are the 50% and the 61.8% levels. By plotting these two levels you can form an idea of what kind of price targets you should aim for whenever you trade any price reversals.
For example if the price has moved 1000 pips (from the low point to the high point) and is reversing back downwards quite strongly then a 50% retracement, ie 500 points, would be a good place to exit your position.However some traders like to wait for these retracement levels to be hit before entering a new position in the direction of the initial trend. Now this is where fibonacci analysis can be a little bit hit and miss.
While you will find plenty of instances where the price has bounced nicely off of the 50% or 61.8% retracement levels and resumed it's trend, unfortunately there are just as many instances where the price has ignored these levels and just gone straight through them.
To demonstrate this point you only have to look at the recent movement of the GBP/USD pair. As you can see from the chart below the pair moved from a low point of 1.6339 all the way up to 1.7044.
It then reversed back downwards but although both the 50% and 61.8% retracement levels were both taken out (and therefore would have been good exit points), the price failed to bounce back upwards from either of these levels, so those traders who were banking on a continuation trend from either of these levels will have been left disappointed because the price didn't respond to them at all.
So the point I want to make is that although fibonacci levels are good for determining possible exit points, they are often nowhere near as reliable when you are looking for entry points for continuation trends.
correct dealer. Dealers’ service offerings can take many forms, and each dealer usually has one or two major features that they highlight above all others. When analyzing dealers, first understand and rank all of their service offerings, then apply those findings to your trading style to arrive at your optimal dealer. The Who’s Who of Forex
They key difference among these market participants is their level of sophistication, where the elements of sophistication include:
�� Money management techniques
�� Profit objectives
�� Level of computerization
�� Quantitative abilities
�� Research abilities
�� Level of discipline
Of course there are sophisticated and non-sophisticated banks, governments, corporations, investment funds, and traders. But among these segments it is the individual trader who has the least amount of external governance. Whereas governments, banks, corporations, and investment funds adhere to regulations and restrictions (to a certain extent), traders are only restricted by their level of capital.
In the absence of these external restrictions, traders fall into two groups: those who can impose internal restrictions – discipline - on their trading strategies and those who cannot: the fence-swingers, et al.
Those who can impose this discipline we will call the sophisticated investor. In the zero-sum game of forex trading, the sophisticated investor uses tools and strategies that emulate those of the highly sophisticated institutional participants to extract profits from the novice participant. It is only the sophisticated investor who has the ability to extract positive returns from the forex markets.
FOREX TRADING- What are you Risks:
Every single investment comes with some level of risk. We have all seen the odd bank go under which has quiet often being seen as a ‘safe’ investment. While forex trading there is the risk of loss in trading off-exchange forex contracts can be substantial. It can sometimes be greater than the initial investment when guaranteed stop losses are not in place. Pleas make sure you are using a broker that offers guaranteed stops, click on this link for a recommendation.So if you are considering participating in this market, you should understand some of the risks associated with this product so you can make an informed decision before you start trading. So Trader Beware. What does come with higher risk, that’s right higher returns.
As shown above if you are considering trading foreign currency trading there is that element of high level of risk and may not be suitable for all customers. If you cannot take a loss, do yourself a favor and don’t TRADE, as no matter how brilliant of a trader you are you cannot pick the market 100% of the time.
Money Management:
If you have a solid money management plan in place this can help to reduce the risk of forex trading. So when you start trading you should only use funds to speculate in forex trading that you are prepared to loss, or any type of highly speculative investment for that matter, are funds that represent risk capital fore example funds you can afford to lose without affecting your financial situation. So the day to day money that you require to live on, don’t trade with that. There are other reasons why forex trading may or may not be an appropriate investment for you, and they are highlighted below.
This can be a volatile market and it can move against you very quickly. Also remember you are trading with leverage, in some cases up to 400:1 so make sure you use leverage that you are comfortable with.
You have just blown the stack, lost it all that how fast this market can move.
When you start trading, you are required to open the account with a deposit of money (often referred to as a security deposit or margin, which is what you leverage agains) with your forex dealer. This will then allow you to order or simple terms buy or sell an off-exchange forex contract. Above we showed with the leverage (up to 400:1), a relatively small amount of money can enable you to hold a forex position worth many times the account value. So $1000 can be leverage up to $400,000 so it doesn’t take much of movement to lose the initial $1000. The smaller the deposits in relation to the underlying value of the contract, the greater the leverage. If the price moves in an unfavorable direction, high leverage can produce large losses in relation to your initial deposit. In fact, even a small move against your position may result in a large loss, including the loss of your entire deposit. This is why using a broker that offers guaranteed stops is paramount. THIS MUST BE ONE OF YOUR TRADING RULES: NO EXCEPTION.
Now there is also the flip side to, if you get the trade direction correct it can result in major gains. Maybe this is why we all love Forex Trading.
Now if you have a great trade and make great profits from forex trading, do not get overconfident. If you become over confident it can be dangerous. Also make sure that you do not overtrade remember the currency market is open 156 hours per week, so don’t panic if you miss one trade. If you exit a trade you should not automatically re enter a trade.
Make sure that when you are trading that you have your rules, stick them, follow them. The forex market is doesn’t work on a popularity basis, so need to ask family and friends their opinion on the trade it will only confuse things.
Forex trading can be very rewarding but make sure you go in with your eyes open, as 90% of traders will go broke, mainly through the above reasons. It is always advisable to get some level of knowledge before you start out in the market. There are a host of forex education courses available. Please though do not spend thousands of dollars on these courses as quiet often they don’t guarantee success and a course of a few hundred dollars such as the course above is normally better.
7 Ways a Government Influences its Currency!
They set the tone by the policies that they set. Ex. Sarbanes-Oxley has driven money away from the U.S. stock markets and IPO market into other markets, thus hurting the long term prospects for the U.S. dollar. Europe has been more favorable to corporations, so money has flowed there and not to America as much due to this.
They set the tone by what they do with their printing presses. If a government resists the temptation to print tons of money, then it will retain its value. If it “waters it down” by printing tons of it, then it erodes the value of it away. Australia is not quick to print money, yet the U.S. is!
If it encourages “money inflows” into its country through making products that the outside world wants, it ensures inflows into its currency. If it is a country that is heavily involved mainly in the services sectors and itself is a net importer of goods, then there’s huge likelihood that they are setting their currency up for a fall. This is exactly what we have in the U.S.! Yet Australia actually mines and exports many of the world’s most needed commodities: Gold, Copper, Wheat, etc.
If a nation stores up monetary surpluses, it provides a better sentiment for investors and causes “inflows” of money very easily. However, if the country has blossoming deficits, it discourages money flows into the country and actually scares some of it away and prevents other “new money” that would like to enter that country from entering due to them being so worried about their ability to repay their debts. Again, a problem of the U.S. Yet China has huge surpluses.
The ability of investors to trust a government is another huge one. There is a ton of potential money that COULD go into Russia but WON’T go into Russia because you never know what they will do next. Their government is so corrupt and has such a bad image from the outside world of being so shady in their dealings with much of the rest of the world (and their own people/corporations) that it hinders some “inflows” into their currency. Yet Canada and Australia’s governments have great track records.
What a country does with their interest rates has a HUGE effect upon inflows and outflows in a currency. If interest rates are high and headed higher, it generally encourages money to it as investors seek higher yields on their money. However, if a country holds their rates unusually low, then they’re encouraging outflows. Examples of this right now are the U.S. and Japan. Rates are unusually low and thus money is starting to flow away from them once again. Australia and New Zealand were two of the only major countries that weren’t inclined to take their rates near zero percent like most of the rest of the industrialized world, and they have been rewarded the most as things have started to snap back for their financial markets and currencies.
Governments that are “tax friendly” to residents and especially to corporations are likely to see more inflows than those who aren’t. This is why so many companies are moving away from the U.S. as Obama pours on the taxes and they run towards places like Dublin, Ireland. This hurts the dollar and helps the euro!
These are seven huge areas that come to mind where a government plays a huge role in influencing their currency, whether they realize it or not…and many times they don’t (because they’re politicians and not savvy investors!
Couldn’t they intervene? History says they won’t…and if they did, it will backfire!
So the central bank wants a lower Canadian dollar to make it easier on these crucial companies. Will they get it? NO! Oh sure, they may be able to influence the USD/CAD up 300-500 pips…but what is that when the pair has moved 2,700 pips downward and will continue that downtrend?You see, traders know that the global economy is “on the mend” and as it is recovering, it will consume more oil and other commodities that Canada exports. They also know that the U.S. dollar has been in a broad downtrend since March (according to the U.S. Dollar Index). This broad U.S. dollar sell off isn’t going to change just because the Canadian central bank wants it to.
Oh yeah, but they could go in and “sell Canadian dollars” right? Sure they could…but, it would not be effective and the foreign exchange market would simply laugh at them with the trend and fundamentals going in the favor of the traders and against that of the bank.
Also, traders know that there’s a good chance that the bank is bluffing too. Why? The central bank has abandoned intervention policies ever since 1998. They didn’t intervene when the currency reached a record high in 2007 and or when it’s had its biggest gain since the Korean War during May.
Therefore, there are a ton of years there that the bank did nothing when the currency moved to extremes. So they have no reason to believe that it will be any different this time.
Most of the time, they just “jaw bone” the currency by talking about what they “could” do. However, when push comes to shove, they usually don’t anymore.
They stopped intervening in 1998 because it simply ended up causing even more volatility and ended up making it even more difficult for their exporters to hedge their risks.
If they “talk the pair up”, short the rallies!
Therefore, here’s how I see this playing out on the chart below. Sure, they may “talk the currency up” a few hundred pips or more in the near term. It could happen. However, smart traders are “selling rallies” in the USD/CAD pair because the trend is down and the fundamentals overall, are on the mend. Therefore any bounce upward, is likely to result in another big push downward.
WHY To Invest inForex trading has surged in recent years, as more individuals earn their living trading and the popularity of riskier investment vehicles like hedge funds has increased. The bottom line for these investors is superior returns, and in foreign exchange four major factors create a unique investment environment:
�� Liquidity
�� Leverage
�� Convenience
�� Cost
In no other market can you find a playing field that is so biased to the investor, at least on the surface. But to take advantage of these factors you have to be constantly aware of their downside.
Liquidity
In a liquid market there is a high degree of transparency, even when large transactions change hands. The sophisticated investor understands what this means: forex attracts huge players. As a trader grows in sophistication, they understand that these huge players have significant price impact, and watch for their market entry.
Leverage
The low margin requirements in the forex markets make everyone’s what-if analysis yield forecasts with 1000% growth annually. What those forecasts fail to account for is the multiplying effect of leverage during periods of consecutive losses.
HOW ( How to trade and lets start)
This is not to say that the trader does not have value to bring – he does. In moments of clear, objective contemplation, many traders – even novices – can be builders of excellent trading systems. These systems can take advantage of their understanding of the forces of forex and test out incredibly. Once live, however, the system falls apart. Why?
The simple reason is that emotion has no place in trading. Emotion causes the trader to act differently following large wins or losses. Emotion causes the trader to act irrationally when large moves occur. Emotion causes the trader to apply his trading system inconsistently.
If you took a survey of successful traders you would find many similarities. The traders would understand and apply all of the forces of forex. They would usually trade incredibly simple trading systems. They would trade using conservative, well thought out money management philosophies, and they would trade with absolute consistency.
For the institutional investor, absolute consistency is not a problem, since they have an array of personnel and resources at their disposal. For individual investors, there are three groups. Those who trade without consistency, those who trade with manual consistency, and those who trade with automated consistency. The novice, of course, is the trader who thrashes from trade to trade. The individual investor who uses consistent discipline or automation as the foundation of his trading activity maximizes his level of sophistication.
Thursday, October 8, 2009
STOP-LOSS ORDER
This means that if you were dead wrong and EUR / USD drops to 1.2200 instead of moving up, your business should be run automatically sell at 1.2200 and close your position to a 30 pip loss. Stop-loss is very useful if you do not want to sit in front of your monitor all day afraid of losing all their money. Just give the order to halt the loss of all open positions, so do not miss your basket weaving class.
FOREX MANAGED ACCOUNT
A forex managed account May be suitable for investors who prefer that their capital managed by professionals. Studies in the accounts managed by professional foreign exchange showed that the returns are not related to the development of the market.
Consequently, the allocation of portfolio investment in forex managed accounts May be the appropriate way to increase overall portfolio diversification.
FOREX STRATEGY BUILDER
An Optimizer A scanner, Explorer Bar and interpolation methods compared included to ensure maximum quality of your Forex strategy. Our main goal with the goal of building Forex strategy is to provide a free tool for reliable testing of trading strategies based on historical data current.
Therefore we want to include the most common method of technical analysis and a variety of technical indicators, only a user friendly program. Over recent years we have expanded the list of indicators for almost 100 and we are working on the ability to allow users of their strategies to try and exchange for trading in Forex market.
The reason to develop so rapidly that we have received constant feedback from users Forex strategy building proposals which are used to direct all future development programs. Backrests reliable trading system is likely to show excellent results in the historical test and then lead to disastrous results.
Some reasons may be behind the wrong test, or on optimization-sensitive indicators. Forex strategy builder can help you in this situation. He easily recognized pitfalls testing trading systems. He notices all ambiguous bars in the rear test. This program can be found in the average balance line between all possible market scenarios.
It also has methods for detection of curve fitting. That is constantly improving the useful Forex strategy builder is constantly updated and can participate in shaping the way you prefer. So, do not hesitate to share with us what you believe could be improved. Be assured that we will follow the recommendations in future versions.
This program aims to make the process of creating profitable strategies, based on technical analysis, a simple task. While you are not real market, do not hesitate to test all strategies or combinations of technical indicators, you can imagine. You will gain more experience and understanding how the logic of rules and parameters affect Forex trading.
It is free software Forex This program is absolutely free. There is no need to pay money or to make a recording. Step into the world of Forex strategy builder. He is 100% free Forex software. Visit our site Forex download. Find installation tips, download links, system requirements and other useful information.
Forex Fundamental Analysis=>
Forex in a nutshell
The Forex market is the largest financial market on Earth. Its average daily trading volume is more than $3.2 trillion. Compare that with the New York Stock Exchange, which only has an average daily trading volume of $55 billion. In fact, if you were to put ALL of the world's equity and futures markets together, their combined trading volume would only equal a QUARTER of the Forex market. Why is size important? Because there are so many buyers and sellers that transaction prices are kept low. If you're wondering how trading the Forex market is different then trading stocks, here are a few major benefits.
- Many firms don't charge commissions – you pay only the bid/ask spreads.
- There's 24 hour trading – you dictate when to trade and how to trade.
- You can trade on leverage, but this can magnify potential gains AND losses.
- You can focus on picking from a few currencies rather then from 5000 stocks.
What's a pip?
Forex prices are often so liquid, they're quoted in tiny increments called pips, or "percentage in point". A pip refers to the fourth decimal point out, or 1/100th of 1%.
For Japanese yen, pips refer to the second decimal point. This is the only exception among the major currencies
HOW TO MAKE FOREX ORDER
There are several basic types of goal that all brokers provide and some other strange sounds. Basic is:
1. Marketplace
2. Limit orders
3. Stop-loss order
4. OP (Good til canceled)
5. GFD (Good Day)
6. OCO (order cancels other)
FOREX.com: No debit balances, no margin calls
At FOREX.com, your risk is only limited to funds on deposit. There are no margin calls in forex trading, so if your account falls below required levels, for your protection we will close out all positions automatically. You'll never lose more money than you have in your account.
Saturday, September 26, 2009
20 RULES TO STOP LOSING MONEY
1. Do not rely on other opinions
This is the money at stake, not yours. Make your own analysis, regardless of source of information.
2. I do not believe in the company
Trade is not the investment. Remember that the numbers and forget the press.
3. Do not break the rules
That for serious situations such as you are probably at this time.
4. Do not try to get even
Trade is not a game of make-to-date. Each position must be maintained on its own merits. Complete loss of composure, and take the next trade absolute discipline.
5. No commercial head
If his name is a buffet, or Cramer, do not trade much. Concentrate on the game, and do not bother to make money.
6. Do not seek the holy grail
It is no secret trading formula, other than solid risk management. So stop looking ga.
7. Remember that discipline
Learning the basics is easy. Most traders do not because of lack of discipline, not a lack of knowledge.
8. Not pursue the crowd
Play and beat their drums. At the time of the multitude of events, which is probably too late ... or too late.
9. No obvious trade
The most beautiful set of samples of the most painful loss. If it seems too good to be true, it probably is.
10. Do not ignore warning signs
Big losses rarely come without notice. Do not wait for a lifeboat to leave the sinking ship.
11. Do not count your chickens
The benefits are not recorded until the trade closes. In the market, given the market and takes away with great fury.
12. Do not forget the plan
Remember why we had the first trade, and should not be blinded by volatility.
13. Do not have a mentality of paycheck
You do not deserve anything for all their hard work. The market is only profitable when it is right, and that your time is very, very good.
14. Do not join the group
Trade is not a team sport. Avoid actions boards, chat rooms and financial TV. Want the truth, not blind support from others with their views.
15. Do not ignore your intuition
Respect
We expect to win and lose with great regularity. Expected to teach it to lose the victory because that victory.
17. Do not fall into the trap of complexity
A well trained eye is more efficient than the battery of indicators. Common sense is more valuable than the copy of the test system.
18. Not to be confused with the possibility of execution
Overpriced software will not help you to trade like the pros. Beautiful colors and lights that fast trader, not better.
19. Project not his personal life
Commerce provides the perfect opportunity to discover how smelly your life really is. Find your house in order before playing the markets.
20. I do not think its fun
Trade should be boring most of the time, like a real job you have now.
HOW TO MAKE FOREX ORDER
There are several basic types of goal that all brokers provide and some other strange sounds. Basic is:
1. Marketplace
2. Limit orders
3. Stop-loss order
4. OP (Good til canceled)
5. GFD (Good Day)
6. OCO (order cancels other)
Advantages of trading the Forex Market
• High Leverage (low margin): Generally forex brokerage service providers offer a
access to trade with $100,000 worth of contracts.
The traders can utilize a small amount of funds in order to take a large position. If you
should happen to incur a loss, your broker will close your position when the loss equals the balance in your account.
• Liquidity: The forex market trades between $1.5 and $2 trillion daily. The market
orders are almost filled instantaneously and the market is too large for any one to
control.
• 24 Hour trading: The forex market operates 24 hours a day from Monday morning
Sydney – Australia time to Friday evening New York (EST) time. Therefore traders
have immediate access to information, their accounts and transaction ability.
• Trade both sides of the market: You can profit from price movements in either
direction, whether prices are going up or down. You can profit in a bear or a bullish
market and the economy of any country is irrelevant to make profits.
• Low trading costs: Forex brokers will only charge you for the difference of a bid and ask price.
sell price quote. There are no commissions or other charges payable buy the trader.
Carry Trade Panic Selling?
Did anyone notice the panic selling out there?All kinds of carry trades unwound several hundred points in a very short period of time. Speculation in the Forex news rags suggests that losses due to the falling stock exchanges forced people to unwind their carry trades to cover their margins.In any case, after days of regimented downward movement, the sudden fallout represented a panic moment -- for someone. In the short term, at the very least, this should represent opportunity. I've stuck my toe in.
Forex Success Key Points & 7 Reasons of Forex Trading
3 Primary Reasons to Trade with Asia Kapitalindo
1. Asia Kapitalindo is a very respectable broker.
1. having sufficient income to cover the current "wants"
2. #1 should not be bounded by location, that is, having sufficient money anywhere
3. #1 should not be bounded by time, that is, having sufficient money anytime
4. #1 should be fast paced, that is, sufficient income should come at a rapid pace
5. #1 should be based on a safe environment, that is, can get income safely without worrying about scam, fraud, and the likes
6. there has to be a LOT of opportunity for #1. That is, when 1 opportunity is gone, another one is already at hand to be operated on
7. attaining #1 should be simple enough, that it does not require tremendous hardwork.
1. if successful, is one of the best source of income to cover all your "needs" and "wants". That is because it promises an unlimited return while at the same time you can significantly minimize the risk.
2. is not bounded by location. You can trade currencies anywhere there is an internet connection
3. is not bounded by time. You can trade currencies anytime as long as you are connected to the internet
4. is happening in a very fast pace fluctuating market. That means, you can earn a lot of money at a very rapid rate.
5. is very safe. As long as you are trading with a registered, trustable and respectable broker, your money is basically sitting there, untouched, for your trading convinience
6. involves 2 vertical dimensions and typically more than 5 horizontal dimensions. Whether the market is going down or up, you can earn money. And when a market of a specific currency is not presenting good opportunity, you can always switch to another market.
7. And lastly, forex trading is one of the simplest forms of investments.