Forex Trading Success - Understand These 2 Equations or Lose

Forex Trading Success - Understand These 2 Equations or Lose

Enclosed I am going to give you 2 simple equations and if you want to win at forex trading you need to understand their significance or lose, so here they are.
1. How Markets Really Move
Supply and demand fundamentals + Investor perception of the facts = Price
Well that's nice and simple!
Yes it is but most traders don't understand the significance of the equation and try and trade the fundamentals (news stories) and think it gives them an edge - it doesn't. Its how investors perceive them that's important, they are highly unpredictable and dominated by greed and fear.
Other traders think that forex technical analysis is scientific, as of course human nature is constant, they therefore think they need to predict prices but this is impossible as well and they lose.
If you understand the above you will realize that trading is game of odds -not certainties and it is investor sentiment that drives prices and the best way to win at forex is to use forex charts but not predict just follow the reality of price change.
The next equation for forex trading success is:
Understanding + Confidence = Discipline = Forex trading success
Again a simple equation but its one again that most traders fail to understand.
Trading is more about mindset than method as even if you have a good forex trading system you still have to apply it or you have no system!
The fact is you won't follow forex signals or systems unless, you understand the logic and have confidence in it. When you hit a string of losses (and you will) you will only trade with discipline if you have confidence.
Consider how many traders simply buy a forex signal service or system from a vendor and believe the marketing hype - that it will help them win or make them rich.
What happens? They all lose as they lack confidence or discipline.
Consider this fact:
Anyone can learn currency trading and anyone can win - but 95% of traders lose.
The reason is they fail to understand the significance of the two equations above.
They don't understand how and why FX markets really move or the link between method and mindset to apply it.
If you understand the above, you could be on the way to making huge regular profits.
You will realize that the way to win is based on understanding what you are doing and having confidence in it - it is simple, yet most traders just don't get it - trading success comes from within.
Forex trading offers huge rewards and if you keep the above in mind and work smart you could enjoy forex trading success.

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Article Source: http://EzineArticles.com/934114

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Importance of Demo Trading During Your Forex Training

Once you decide to become a Forex trader the number one notion in your mind should be to devise Forex trading strategies that work and suit your personality. In fact, it is more common to devise only one strategy and stick to it until it becomes second nature. Whether you wish to simply stick to that one strategy or devise others, it is completely up to you, but before you release it into the live markets it needs to be developed and confirmed. This is where demo trading comes in.
Broker demo accounts
Every good broker allows access to a demo account. Whilst it is a sales technique for them, it is an opportunity for you do start developing the very thing that will generate success in the markets. Some demo accounts may have an expiration date while some have a life-long shelf life so make sure that you check this before signing up. Demo accounts vary from the brokers own software to more popular software such as MT4 or MT5. Whatever the software is, it is the same as the live platform you will eventually use.
Practice
Once your Forex training begins and you have a few Forex trading strategies in mind, it is time to start. Make sure that you firstly familiarise yourself with the software itself first making sure that you know about every attribute you will use such as drawing of trend lines or installing indicators. Once this is done, start trading your strategy with the notion that it is not bullet proof. Every time you make a trade, take notes of why you think it did so. Every time a trade fails, take note and devise alterations that will make it more successful next time. The key here is patience and your ability to read your own work in a critical manner in order to devise the perfect formula for the live market.
Confidence
When you trade in live markets one of the most important characteristics you should have is confidence in your own Forex strategies - there are a few others but during your initial Forex training this is the one to master first. If you do not believe in your work, nobody else will. Once you have enough wins under your belt and a solid trading record this 'confidence' will come naturally. These are the first signs that say you are ready to trade live markets.
Summary
To summarise, if you wish to minimise your risk it is crucial that you begin with a demo account. Some people find this hard because they want to start making money straight away but little to their knowledge they have become gamblers. If you don't want to gamble your money or rely on luck it is imperative you practice first until you are ready (no matter how long it takes) and benefit later.

For more information on Forex training or instructional videos that guide you through successful Forex trading strategies, visit our website.

Article Source: http://EzineArticles.com/?expert=Dragan_Lukic

Article Source: http://EzineArticles.com/7775403

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Forex Margin Requirements

No matter what kind of account you set up with your Forex broker, there are going to be Forex margin requirements. Put very simply, this indicates the amount of money you need to keep in your account in order to trade.

The reason there are Forex margin requirements is to protect the broker from having to come up with money from his own pocket. Keep in mind that when a trade is made, the trader in reality only puts up a fraction of the money the contract is worth. When the money runs low and is below the Forex margin requirements, the trader is put on margin call. He has to put more money into his account.

Wiggle room

It's never good to trade scared. Trading scared can take on many forms, but the most prominent manifestation of the beast is to be close to your Forex margin requirements. When that happens, the Forex trader feels the pressure of having to make money not only for his livelihood, but also to avoid being put on margin call. This rarely works out well.

What often times happens is that the trader will try to make a big score, or trade over his head, and that never works out well. Because the trader has drifted from his game plan; from his trading strategy; he is no longer trading the market, but rather he's trading simply for Forex margin requirements.

The logical thing for any trader to do is make sure he has enough money in his account to be able to trade according to his strategy, and not have to worry about losing a bit of money. This kind of attitude will generally lead to Forex profits as opposed to continued losses.

Another philosophy to be adhered to on the other side of the spectrum: What happens when you have more than enough money in the account and you're nowhere near the Forex margin requirements? It's wise to withdraw money from your account when you have an over abundance. Not only should you be paying yourself a salary, but you also want to be protected against anything catastrophic that may happen to your broker. Better safe than sorry.

Change quantities

If you don't have the money to deposit in your account to give yourself enough breathing room, then the recommended tactic is to change the quantities you're trading. And that doesn't mean make them bigger. On the contrary, you should make them smaller.

You're not going to make it all back in one shot. Sure, it's possible but like everything else in trading Forex, you have to go with the odds. Lower your quantities. If necessary, switch to a mini trading account. And if necessary after that, switch to a micro trading account. It is always best to try to inch your way back to the top rather than try to make it all back in one fell swoop.

Your Forex margin requirements should never get in the way of your trading. It's up to you to make sure they don't influence your trades. The support and resistance lines on your charts are your buy and sell indicators; not the money in your account.

Source : http://www.dailyforex.com/forex-articles/2011/01/Forex-Margin-Requirements/7085

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Day Trading Strategies

Day Trading Strategies

Day trading has come a long way since its inception. It was introduced in 1975 as an acceptable mode of trading stocks when the United States Securities and Exchange Commission (SEC) ruled that fixed commission rates, which had been set till then at 1% of the trade, were illegal. This enabled brokers to offer their clients a much reduced commission rate. It also opened up a whole new concept wherein not only brokers could place trades but everyone had the capability to sit in front of a computer and buy and sell stocks all day. From here emerged a whole industry of day trading which subsequently branched out from stocks to other investment instruments, such as futures, options, Forex and commodities.

Day Trading Strategies

There are many day trading strategies. Some follow the same pattern as does broker driven trading while others are unique to day trading. The idea behind day trading is to gain profits by taking advantage of the small price movements in liquid stocks and indexes. One way of doing this is to leverage large amounts of capital which gives the trader additional funds to use for placing trades.
When considering day trading strategies, the first one to look at are the entry strategies. A day trader should first consider selecting stocks that seem ideal for day trading. The liquidity and volatility of the stock are the next things to consider. Liquidity offers the trader the opportunity to enter and exit a stock with a tight spread and at a good price. The volatility of the stock is the measurement of the daily price range within which the stock is expected to move. Greater volatility can lead to greater profit or loss.
There are several ways to identify entry points including technical analysis such as candlestick charts and trend lines. Staying current with financial news can provide important data for market movements. In addition, a day trader can be on the lookout for orders that are coming in from elsewhere and take note of the increasing or decreasing volume of the stock.

Stop Losses

Using stop losses is another important day trading strategy. Most day traders trade on margin this can be quite risky as steep price movements happen constantly. A stop-loss triggers the predetermined price where a trader will stop trading. This price should suit the risk tolerance of the trader. In addition, a day trader can make a mental stop-loss whereby he/she will exit a position if it takes an unexpected move. By predetermining a maximum loss for each trading day, the day trader will feel less tension and stress during the day secure in the knowledge that he will not find himself in a terrible situation at the end of the trading day. Experienced traders will use this day trading strategy; novice traders believe they must make up the loss and instead of ceasing to trade, they take unnecessary risks in order to break even.
Other day trading strategies have developed over time and have become very popular for day traders. Scalping, for example, involves selling immediately after a trade has become profitable, i.e. when the price has gone above or below the target price. When a price rapidly moves upward, a day trader can use Fading to short the stock. This may be risky but offers nice rewards. Daily pivots is a day trading strategy whereby the trader endeavors to buy at the low of the day and sell at the high of the day, taking advantage of the stock's daily volatility. Using momentum when day trading may involve the purchase of stocks based on ongoing news reports and riding out the trend until it begins to reverse. Other momentum traders will watch for a strong trend in either direction and an increased volume and then place a trade.
All of these day trading strategies have enabled traders to increase the volume of their day trading and have provided the ability for more and more day traders to create a full time business from the comfort of their home.

Source : http://www.dailyforex.com/forex-articles/2013/07/Day-Trading-Strategies/22455

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The Advantages of MetaTrader Signals Services for Traders

 

The Advantages of MetaTrader Signals Services for Traders

MetaTrader 4 and the recently introduced MetaTrader 5 are electronic trading signals used by online retail foreign Forex traders. The software consists of both a client and server component and is licensed to foreign exchange brokers who provide it to their account holders. The server component is run by the broker. The client software is used by the trader to see live streaming prices and charts, place online orders and manage his or her account. MetaTrader Signals is a social trading service and with millions of traders subscribing to the same platform, the opportunity for additional profits is obvious.

The “signals” in the new Meta Trader trading platform allow traders to connect to any signal issued by a provider anywhere in the world. A trader can select and then subscribe to any trading signals provider and can then duplicate these deals in his own trading account.

Advantages

What are the advantages of the Meta Trader service for traders?

First of all, signing ups for the Meta Trader service is straightforward and even a novice trader can get on board with only a few clicks. Once the Meta Trader terminal has been installed, a trader needs only to select a signal provider and he can initiate trading.

With the Meta Trader platform, a trader is not required to come to any formal arrangement with a provider. Only the pricing and trading terms of the signal provider require an upfront agreement. The Meta Trader signal provider market is the largest market around, listing thousands of successful traders from all over the world who deliver their signals in the market. In addition, there is no stipulation that a trader maintain an account with the same brokerage company as his or her signal provider. There is total freedom of choice when it comes to selecting a brokerage company.

There are no commissions to the provider. A trader pays only for what has been agreed upon when signing up for the service. There are also multiple payment options available to a trader.

Less Fraud

Chances of scams or fraudulent behavior by signal providers using the Meta Trader platform is almost none existent since providers are scrutinized exceedingly to ensure that only profit making providers enter the provider market. It is, of course, vital that the signal provider chosen is trustworthy so a certain amount of research should be done before selecting someone.

With Meta Trader, chances of loss are less than with other investments since a trader can select a signal provider with a track record that meets a specific trader’s expectations and whose trades can then be duplicated on his or her own trading terminal. Trades are synchronized in real time and are automatically placed.

Secure and Anonymous

Another important aspect of the MetaTrader platform is that it is secure and anonymous. A trader does not have to worry about trader privacy since traders’ information is not visible to the signal providers.

MetaTraders can copy the Stop Loss and Take Profit Levels of their signal provider. For novice traders, who do not know when to Stop Loss and when to book profits, this can be a real advantage. In addition, a trader has the option to designate the percentage of the amount he or she wishes to trade. This helps in stopping unexpected losses and maintains a buffer zone for his account. Another option terminal is the “Stop if Equity is less than A” feature which puts a break on all actions if the equity level in a trader’s account falls below a pre-specified level. All positions automatically close and pending orders are also removed. This limits one’s losses. 

Source : http://www.dailyforex.com/forex-articles/2013/08/The-Advantages-of-MetaTrader-Signals-Services-for-Traders/22843

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The Main Advantages of Forex

There are many benefits and advantages of trading Forex. Here are just a few general reasons why more and more people are choosing this market.

No middlemen

Spot currency trading eliminates the middlemen and allows you to trade directly with the market responsible for the pricing on a particular currency pair. At FinFX all trading orders are sent directly to the liquidity providers without any intermediaries to ensure minimum execution time.

No fixed lot size

In spot Forex, you determine your own lot, or position size. This allows traders at FinFX to participate with the minimum trade size of 0.01 lots (1 000) with deposits as small as 100 EUR / USD / CHF / GBP.

Lower Transaction Costs

The retail transaction cost (the bid/ask spread) is typically less than 0.1% under normal market conditions. At larger dealers, the spread could be as low as 0.07%.

24-Hour Trading

There is no waiting for the opening bell. From the Monday morning opening in Australia to the afternoon close in New York, the Forex market never sleeps. This is very convenient for those who want to trade on a part-time basis, because you can choose when you want to trade: morning, noon or at night.

No one can corner the market

The foreign exchange market is so huge and has so many participants that no single entity can control the market price for an extended period of time.

Leverage – Trading on Margin

In Forex trading, a small deposit can control a much larger total contract value. Leverage gives the trader the ability to make nice profits while at the same time keeping the risk capital to a minimum.
For example, if you trade with 1:100 leverage it means that a 100 EUR margin deposit would enable a trader to buy or sell 10,000 EUR worth of currencies. Similarly, with 500 EUR, one could trade with 50,000 EUR and so on. However, leverage can also be a double-edged sword as without proper risk management, this high degree of leverage can lead to large losses as well as gains.

High Liquidity

Due to the massive size of Forex market, it is also extremely liquid. This means that under normal market conditions, with a click of a mouse you can instantaneously buy and sell at will as there will usually be someone in the market willing to take the other side of your trade and thus you are never stuck in a trade. You can even set your online trading platform to automatically close your position once your desired profit level (a limit order) has been reached, and/or close a trade if a trade is going against you (a stop loss order).

Low Barriers to Entry

You would think that getting started as a currency trader would cost a ton of money. The fact is, when compared to trading stocks, options or futures, it doesn't. FinFX offers Micro trading account with a minimum account deposit of 100 EUR.
FinFX is not recommending that you should open an account with the bare minimum, but it does make Forex trading much more accessible to an individual who does not have a lot of start-up trading capital.

Free Demo Account, Forex Education Material and Analytics

FinFX also offers a demo account to allow you to practice trading and build your skills. You will also have access to loads of free Forex education material including video tutorials, daily market analysis and trading platform guides. If you are new to Forex, we recommend that you start by opening a demo account as it is a very valuable resource for those who are financially hampered and would like to sharpen their trading skills with virtual money before opening a live trading account and risking real money.

Comparing Forex to Stock Market

If we for example look at the New York Stock exchange, there are about 4 500 stocks listed. Another 3 500 are listed on the NASDAQ. Which one will you trade? Have you got the time to follow so many companies? In spot currency trading, there are dozens of currencies traded, but the majority of market players trade the four major pairs. Aren't four pairs much easier to keep an eye on than thousands of stocks?
That's just one of the many advantages of the Forex market over the stock markets. Here are a few more:

24-Hour Market

The Forex market is a continuous 24-hour market. FinFX is open from Sunday 22:00 GMT+0 until Friday 22:00 GMT+0, with customer service available 24/5. With the ability to trade during the US, Asian and European market hours, you can customize your own trading schedule.

Minimal or No Commissions

With some of our trading accounts there is no commission or additional transactions fees to trade currencies online or over the phone. Combined with the tight, consistent, and fully transparent spread, Forex trading costs are lower than those of any other market. In addition, with some trading accounts FinFX is compensated for our services through the bid/ask spread.

Instant Execution of Market Orders

Your trades are instantly executed under normal market conditions. Under these conditions, usually the price shown when you execute your market order is the price you get. You're able to execute directly off real-time streaming prices.
Keep in mind that FinFX like many other brokers only guarantee stop, limit, and entry orders under normal market conditions.

Short-Selling without an Uptick

Unlike the equity market, there is no restriction on short selling in the currency market. Trading opportunities exist in the currency market regardless of whether a trader is long or short, or whichever way the market is moving. Since currency trading always involves buying one currency and selling another, there is no structural bias to the market. So you always have equal access to trade in a rising or falling market.

No Middlemen

Centralized exchanges provide many advantages to the trader. However, one of the problems with any centralized exchange is the involvement of middlemen. Any party located in between the trader and the buyer or seller of the security or instrument traded will cost them money. The cost can be either in time or in fees.
Spot currency trading, on the other hand, is decentralized, which means quotes can vary from different currency dealers meaning that Forex traders get quicker access and cheaper costs.

Buy/Sell programs do not control the market.

How many times have you heard that "Fund A" was selling "X" or buying "Z"? The stock market is very susceptible to large fund buying and selling.
In spot trading, the massive size of the Forex market makes the likelihood of any one fund or bank controlling a particular currency very small. Banks, hedge funds, governments, retail currency conversion houses, and large net worth individuals are just some of the participants in the spot currency markets where the liquidity is unprecedented.

Analysts and brokerage firms are less likely to influence the market

Foreign exchange, as the prime market, generates billions in revenue for the world's banks and is a necessity of the global markets. This means that analysts in foreign exchange have very little effect on exchange rates; they just analyze the forex market.

Advantages	Forex	Stocks
24-Hour Trading	YES	No
Minimal or no Commission	YES	No
Instant Execution of Market Orders	YES	No
Short-selling without an Uptick	YES	No
No Middlemen	YES	No
No Market Manipulation	YES	No

Comparing Forex to Futures

The Forex market also has of a bunch of advantages over the futures market, similar to its advantages over stocks. Here are just few of the examples:

Liquidity

In the Forex market, $4 trillion is traded daily, making it the largest and most liquid market in the world, whereas the futures market trades only 30 billion USD per day.
The futures markets can't compete with its relatively limited liquidity. The Forex market is always liquid, meaning positions can be liquidated and stop orders executed with little or no slippage except in extremely volatile market conditions.

24-Hour Market

At 5:00 pm EST Sunday, trading begins as markets open in Sydney. At 7:00 pm EST the Tokyo market opens, followed by London at 3:00 am EST. And finally, New York opens at 8:00 am EST and closes at 4:00 p.m. EST. Before New York trading closes, the Sydney market is back open - it's a 24-hour seamless market!
As a trader, this allows you to react to favorable or unfavorable news by trading immediately. If important data comes in from the United Kingdom or Japan while the U.S. futures market is closed, the next day's opening could be a wild ride. (Overnight markets in futures currency contracts exist, but they are thinly traded, not very liquid, and are difficult for the average investor to access.)

Minimal or no commissions

With Electronic Communications Brokers becoming more popular and prevalent over the past couple of years, there is the chance that a broker may require you to pay commissions. But really, the commission fees are peanuts compared to what you pay in the futures market.

Price Certainty

When trading Forex, you get rapid execution and price certainty under normal market conditions. In contrast, the futures and equities markets do not offer price certainty or instant trade execution. Even with the advent of electronic trading and limited guarantees of execution speed, the prices for fills for futures and equities on market orders are far from certain. The prices quoted by brokers often represent the LAST trade, not necessarily the price for which the contract will be filled.

Guaranteed Limited Risk

Traders must have position limits for the purpose of risk management. This number is set relative to the money in a trader's account. Risk is minimized in the spot Forex market because the online capabilities of the trading platform will automatically generate a margin call if the required margin amount exceeds the available trading capital in your account.
Your account is protected by automatic Stop Out which closes the most negative trade when your margin level drops below 100%. This makes it very difficult for the account balance to go to negative.The risk grows slightly when keeping positions open over weekend when your margin level is already very low. After the weekend the markets may open on a different level and if this direction is even more on the negative for you, it is possible that the account balance goes to negative.
In the futures market, there is a chance that your position may be liquidated at a loss bigger than what you had in your account, and you will be liable for any resulting deficit in the account.

Advantages	Forex	Futures
24-Hour Trading	YES	No
Minimal or no Commission	YES	No
Up to 1:200 Leverage	YES	No
Price Certainty	YES	No
Guaranteed Limited Risk	YES	No

 

Source : https://www.finfx.fi/en/main-advantages-forex
ٍsource Video : http://www.youtube.com/watch?v=-zOrG5QCZXw

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The U.S. Session Trader's Daily Forex Question

The U.S. session, trader's daily 09:45 EDT question; "Oh dear, do we now want to take a U.S. based trade and run the risk of a price move stranding things with no momentum, as 80% of U.S. sessions do?"
The law of probability says that U.S. trade will not follow through with sustainable breaks on new positions, and with what came before the Wall Street open, we already have seen that the bullish S&P start could literally go anywhere. TheLFB equity tracking system shows that the main components that we use to gauge S&P momentum has only four out of thirty companies trading in the green.
If this move is to hold, and by default the Usd is to get weaker, a huge raft of volume needs to hit that lifts all stock indices, as well as oil and gold trade. Not to say that could not happen, but it is questionable as to whether it will hit and hold before the European markets go into their close at 10:30 EDT.
The fact that gold moved $10, or 1% in five minutes at the open, and the S&P managed to tag on 0.3%, leaves another question as to why oil has not moved too far, and further enforces the feeling that the Wednesday move could hold. The majors are so far from their previous session highs or lows, that actually breaking new ground and holding for a ride on the dollar is very unlikely; unless a volume tsunami hits.
There is nothing at all clear-cut about the picture we have on the major pairs, and the global market Usd drivers. All are overbought in the near-term, and the major pairs are all dealing with daily chart Simple Moving Average areas that really are creating massive support and resistance areas to work through.
Volume and speculative interest is very light, creating an environment that offers plenty of volatility, but also failed breaks, in the same measure. Global equity trade is flat, and commodity markets are also flat-lining after efforts to hold support this week. In all, not an easy environment to issue high probability signals.
Written by TheLFB Trade Team, © 2007-2008 LFB Services, LLC. All rights reserved. http://www.TheLFB-Forex.com
TheLFB Risk Disclaimer can be found at http://www.thelfb-forex.com/content.aspx?id=174.
The Copying, Broadcast, Republication or Redistribution of TheLFB Content is Expressly Prohibited Without the Prior Written Consent of LFB Services, LLC.

Source : http://www.actionforex.com/articles-library/forex-articles/the-u.s.-session-trader%27s-daily-forex-question-2009081994271/

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Times To Trade

Trading the OTC (over the counter) currency markets offers an opportunity to hedge stock and bond investing, but really is more of a traded market following the ebbs and flows of global commerce than it is an investment arena to plan retirement from. Getting to know six major currency pairs would seem an easy task when compared to the tens of thousands of stock and bond options available for analysis.
Forex trade is not all about how each currency will move against the Usd, just as important is knowing when the market will have momentum, because that is key to not getting caught in reversals and snap-backs whilst leveraged at 100:1.
Setting times to trade really does make a lot of sense with the near-term view that forex valuations carry, and the fact that each 24 hour period has to absorb three regional commercial market's trade, in Asian, Europe and the U.S.
There are three main forex moving times that regularly garner attention, and therefore offer an ability to move prices with momentum. They are the 2am EDT German Dax futures market getting underway, the 6-7am EDT London gold/oil fixings and LIBOR rates being set, and the 11am EDT European market close.
Outside of that, the return from lunch in Japan between 11pm EDT and midnight, and the closing of the NYMEX markets at 2.30 pm EDT really are the only other times that prices move substantially and then hold.
At the end of the U.S. session the pattern is for Asian markets to try and initially reverse U.S. trade direction, although the lack of volume tends to soon allow pairs to find and hold support areas. The European markets tend to move in the same direction as Asian trade, and then Chicago based futures movement will try to reverse things back in the direction of where the U.S. previously closed, and re-set their books as the London fixings are placed between 5-6am EDT.
At 10:30am GMT in London, telephone bids for the gold and oil fixings take place, something that sets the morning clearing prices for bullion and crude dealers that (are then adjust once again at 3.30pm GMT). At 11am GMT each day in London the British Bankers Association set the inter-bank LIBOR rates, something that sets the tone for lending rates between financial market participants.
The London fixings tend to force Chicago based futures markets into a re-alignment program at 06:00 EDT that replicates the newly set fair values on oil, gold, and lending rates, and by default tends to then impact Usd based currency values. It is rare for the U.S. not to push back each morning and reverse the pattern of forex trade that came before, especially if a sizeable move has happened in overnight forex trade.
Forex traders really need to know what is going to trigger the technical set-ups, and therefore be prepared to ride momentum while it lasts, and to cap expectancy and exposure in things are moving against the near-term trend. In the trading forex arena there are different things to look for than in the equity and bond investment world; a week in forex absorb fifteen regional equity market moves, and all of which are movinmg for varying commercial regions, and using foreign exchange to hedge commitments, repatriate overseas profits, align reserve values, and garner swap interest.
The European and NYMEX close (11am EDT and 2.30 pm EDT are the U.S. based things to get out of the way, because then, maybe, the equity markets can reveal where they really want to go, and by default send the Usd in the opposite direction. Traders looking for moves outside of 2am, 6am, 11am, and maybe 2:30 EDT, may just find themselves sitting and waiting, wondering why they just bought the high of the day that then reversed.
Try it out, take a look at a volume study in forex futures, or look at the longest daily 30 minute candles, and see on average what time they hit. Then look at the times that nothing happens. That is not luck, it is the forex market tagging along, following the ebbs and flows of global commercial trade.
As the global economy travels trades its way out of the business cycle trough phase, the leaning is towards looking at S&P futures trade to confirm near-term sentiment, and risk tolerance. The speculators are never too far away from the S&P in times of fear; either selling into the fear of loss, or buying into the fear of missing profits. That is the reason for so much near-term volatility, and that is how things will stay until signs of GDP expansion are seen globally.
Until then it seems that the 24 hour a day S&P futures trade will set up the eight hour S&P cash market for currency traders to monitor, that will be followed by the S&P futures market tracking the 16 hours of Asian and European activity. Forex will follow that equity trend, at least until interest rates start to rise globally, and economic expansion takes place. At that time interest rate differentials will take over the valuation of forex pairs, to the greater degree.
Written by TheLFB Trade Team, © 2007-2008 LFB Services, LLC. All rights reserved. http://www.TheLFB-Forex.com
TheLFB Risk Disclaimer can be found at http://www.thelfb-forex.com/content.aspx?id=174.
The Copying, Broadcast, Republication or Redistribution of TheLFB Content is Expressly Prohibited Without the Prior Written Consent of LFB Services, LLC.

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Learning to Trade the Forex Market

Getting started

The beauty of forex is you can get started right away without any money and without having any idea what you are doing. To do this you open what is called a demo forex account. In your demo account you trade with fake money and you have fun learning how to trade for real. Your goal is to build a sustainable track record of successfully trading with fake money. Once you have done this you will be ready to try trading with real money.
The transition from fake money to real money can be tricky. Sort of like learning to fly in a flight simulator and then flying a real airplane for the first time. Each time you enter the flight simulator your skills will be improving and your confidence increasing, until you get to the point you feel you are ready for the real thing. In theory, if you master the flight simulator, the real airplane will not be a problem.
In reality, as you're walking toward that real airplane for the first time, your heart will be pumping and you will be scared. Likewise when you are about to pull the trigger on your first real money trade your heart will be pumping and you will be scared.
Flying a plane for real and trading forex for real are similar in many ways:

1. If you are reckless flying the plane you will get yourself killed. If you are reckless trading forex you will lose all your money
2. Flying entails taking off, obeying the rules of safe flying, and landing safely. Forex trading entails entering a trade, controlling your risk, and exiting safely.
3. When flying an airplane your success requires you get all three (takeoff, safety, and landing) right. In forex trading your success requires that you get all three (entry, risk, and exit) right
4. The best pilots always put safety first. The best forex traders always put safety first.

Flying a plane and trading forex for real are different in one key way

1. To become a pilot there is government mandated formal education and professional training requirements; as a result of this formal education and professional training, few pilots crash and burn. To become a real money forex trader there is no government mandated formal education and no professional training requirements; as a result, almost all forex traders crash and burn

Formal education and professional training
Whether you want to be a jet fighter pilot or a weekend recreational pilot of a two-seater, you need formal education and professional training to insure your safety and success. If you want to become a full-time forex trader, a part-time forex trader, or just dabble from time to time you need at least some education and training to insure your safety and success; especially if you're serious about making money from forex trading.
Education choices - getting started
I suggest you start withBabyPips.com; it's described as “a free, funny, and easy-to-understand guide for teaching beginners how to trade the forex market”. Here you will learn about the forex market, forex trading, technical analysis, and fundamental analysis. There is also practical advice on choosing a forex broker and how to go about opening your broker account and getting started with your forex trading. If you prefer reading a book, “Forex for Dummies” is a good place to start. Brian Dolan, one of the authors, is a brilliant guy and he has done an excellent job in laying out the forex basics in easy to understand language. I wrote an article “Forty five ways not to lose money trading forex”, which can easily be located with a Google search; many traders have told me it helped them a lot. You may want to read that one; knowing the common mistakes new forex traders make may be helpful.
As you study the basics, you will likely find the technical tools that you think will suit you. It's a good idea to do further research on those technical tools; three excellent free sources of further information on technicals (and fundamentals) are Investopedia.com, fxstreet.com, and forexfactory.com
Your broker will supply free charting software for you. Personally, I like netdania.com charts; they are very user friendly and there is a free demo version, which I have been happily using for the past 5 years.
Technical tools I use
I love trading. I was a professional forex bank trader for 20 years. I retired in 2004 and have been trading my own account since then. I like to trade everything from one minute charts to daily charts. The technical tools I like best are:

1. Simple moving averages
2. Range breakouts
3. Momentum breakouts
4. Swings
5. Fibonacci retracements
6. Gartley patterns
7. Candlestick patterns
8. Bar reversals
9. Correlations
10. Daily high and low

There is plenty of free information about all of these technical tool available on the internet
Fundamental tools I use

1. Market view - what currencies are traders focusing on and why
2. Central bank speak - what are the key moneymen in each country saying and why
3. Interest rates - how much interest you get for holding onto a currency matters
4. Economic news - the reality of employment, retail sales, and housing matters

A good free website to track all the upcoming important scheduled economic news is forexfactory.com. Kathy Lien is excellent at the fundamentals. Her daily comments can be found at fx360.com.
Where do you begin?
Of course, if you are a new forex trader it takes time to figure out your niche and if you have a job you will need to choose a particular focus of your forex trading. I still think it helps to at least get some exposure to all the tools, both technical and fundamental, that work best in forex trading, and then choose the ones you like. There is plenty of free information on the internet to choose from.
Consider formal education and training
Once you've done your independent study you may choose to try trading forex on your own. If you have the available resources, it may be a good idea to get specialized training / mentoring; there are some good ones out there.
The argument that if a trader was any good he would not be teaching is not without merit. However, there is this to consider. A good trader manages risk effectively. Trading has its ups and downs but getting paid to teach trading is a winning trade every time. Why not do both and improve the slope and the volatility of the earnings curve.
That is not to say there are not a lot of disreputable forex educators out there. Do your due diligence and you can find a good one.
Jimmy Young

Source : http://www.actionforex.com/articles-library/forex-articles/learning-to-trade-the-forex-market-20100201105702/

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Forex Trading: How a GDP Announcement Can Boost a Currency

Understanding the Basics of Fundamental Analysis in the Forex Market

Traders typically approach financial markets in one of two ways: either through technical analysis or fundamental analysis. The reality is that history is full of traders who have had very successful careers as traders that employed both of these types of analyses.
In fact, in Jack Schwager's best-selling classic, Market Wizards, two of the traders interviewed are Ed Seykota and Jim Rogers. Rogers is quite adamant in his statement that he believes it is impossible to make a living as a technical trader. He goes so far as to say he has never met a rich technician. Seykota actually shares the exact opposite story. According to Seykota's own interview, he was a struggling trader when he traded according to fundamental analysis. It was not until he became a technician that he started to make a living trading financial markets.
As stated, successful traders throughout history have employed both technical and fundamental analysis. In this article we are going to break down the basic principles of fundamental analysis in the forex market.
Fundamental Analysis is commonly defined as a method of evaluating a specific security in order to determine its intrinsic value by analyzing a host of economic and financial data. In the foreign-exchange market, a security would be a currency. Market participants are continually analyzing the emerging fundamental from a country in order to determine the intrinsic value of the country's currency. There are several key economic indicators that every trader should understand on a basic level. Fluctuations in the data of these key indicators will generally cause the value of a currency to rise and fall.
Interest Rates
These are the single greatest driver of currency value over the long-term. Most Central Banks announce interest rates each month, and these decisions are watched very scrupulously by market participants. Interest rates are manipulated by Central Banks in order to control the money supply in an economy. If a Central Bank wants to increase the money supply, it lowers interest rates, and if it wants to decrease money supply it raises interest rates.
Gross Domestic Product (GDP)
GDP is the most important indicator of economic health in a country. A country's Central Bank has expected growth outlooks each year that determine how fast a country should grow as measured by GDP. When GDP falls below market expectations, currency values tend to fall and when GDP beats market expectations, currency values tend to rise.
Inflation
Inflation destroys the real purchasing power of a currency, and, therefore, inflation is very bad for the economy in most circumstances. Each year a normal rate of inflation between 2-3% is expected, but if inflation begins moving beyond the upward targets set by the Central Bank, a currency value will actually rise due to expectation of an imminent rate hike. Higher interest rates tend to fight off inflation.
Unemployment
We will discuss consumer demand in a moment, but people are basically what drive economic growth; therefore, unemployment is the backbone of economic growth. When unemployment levels increase, it has a devastating effect on economic growth; consequently, when the labor market contracts and unemployment increases, interest rates are often cut in an attempt to increase the money supply in the economy and stimulate economic growth.
Consumer Demand
As stated in the previous point, people are what drive economic growth; as a result, healthy consumer demand is essential to the normal, healthy functioning of an economy. When consumers are demanding goods and services, the economy tends to move forward, but when consumers are not demanding goods and services, the economy falters.
Even if you are a technical trader, it can still be very helpful to understand these basic elements of fundamental analysis. The best forex course will oftentimes offer further insight into how the emerging fundamentals drive price behavior.

Source : http://www.actionforex.com/articles-library/forex-articles/understanding-the-basics-of-fundamental-analysis-in-the-forex-market-20101119127128/

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Impact of interest rates on currency rates and foreign exchange markets

Foreign exchange market is one of the most famous modes of trading today. In the past, foreign exchange trading was reserved only for the rich and high-ranking financial establishments. Today, many people including the average earners are part of the business. However, traders should know that the minimum interest rates have lots of influence on foreign exchange markets and currency rates.
Besides such factors like inflation, and exchange rate, interest rates is a major determining factor of a country’s economic level. Interest rates are among the most analyzed and watched governmental manipulated economic measures.  The interest rates from central banks to a great extent influences the way customers are charged.
For example, if the economy is performing below schedule, the duty of the central bank at this point is to lower the interest rates; this will make it easy for people to borrow. In most cases, this boosts the consumer spending which will in the long run expand the economy. In a scorching economy, the central bank normally slows down the inflation rate, thereby making borrowing more expensive. Central bank is bent on regulating the country’s economy.
Investors are always interested in interest rates especially those ones that are seeking for synthesis of safety of funds and yield returns. If interest rates are high, there will be an increased demand for assets denominated in that currency, but when the reverse is the case, it will give rise to a jump or paradigm shift from that currency to another. All these take effect simultaneously.  And traders make good money when either is the case.
All we are saying is that a rise in interest rate will give birth to appreciation; that is a great rise of sterling against another currency while a fall in the interest rate will pave way for a depreciation; a fall in the value sterling against another currency(ies) as the case may be.
The interest rate influences the foreign exchange markets and currency rates because it has a great impact on the demand and supply of those foreign currencies. Lots of people are making good money by moving funds from one currency to another; by taking maximum advantage of the returns in several countries.
To cite an example, if the interest rate in the United States is 3% but was about 5% in the United Kingdom, you will gain lots of benefits by transferring money in dollars based securities to the denominated. (We are talking about transferring money from a bank account that pays 3% to another that is paying higher). This will mount severe pressure on the volume of sterling and then push its value against the dollar.
The summary is that interest rates affect foreign exchange rates and currencies in a great deal. The information above is some of the ways such happens in the present day global economy. You will advance higher in your foreign exchange business if you also conduct your own research and study magazines, newspapers and latest central bank reports on the expected trading in future.

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Things to Know About Forex Brokers

For trading in the foreign exchange market you'll need a trustworthy, reliable, and capable foreign exchange broker, the broker may be the person otherwise business that aids your interaction using the foreign exchange market. Without a quality Foreign Exchange broker there's no way you can trade the foreign exchange market and make the most of lucrative buying and selling possibilities every single day. It is crucial that you get a suggested broker one with which many clients have experienced positive encounters, or else you risk utilizing a Forex broker that won't be as worth your company as a few others. So, getting a top-quality foreign exchange buying and selling broker that you could trust is an important part of being an effective foreign exchange currency trader.

Using the advent and common ease of access to the internet, Forex brokers online has grown to be extremely popular and most foreign exchange traders make use of an all-online Forex broker at this time. This really is mainly a positive thing, but you will find lots of online Forex brokers available who're not in the same degree of services and technical capacity as other brokers online. For this reason prior to deciding to make use of any particular foreign exchange online broker, you have to make certain you have analyzed and investigated them completely, what this means is looking at foreign exchange broker reviews, contrasting and evaluating them in most ways.

Nearly all the foreign exchange traders make use of the Forex brokers online today, it is vital that your foreign exchange broker has got the capacity to offer you service whenever the Forex marketplace is open. You won't want to lose out on any buying and selling possibilities as your Forex broker does not possess the technological way to be online while you really need these to be. A few traders experience cyclic foreign exchange buying and selling platform "collapses", this normally happens through very unstable market conditions, generally around chief financial releases. This can be a very large problem because the best trade configurations form in fast paced, volatile marketplace conditions, you won't feel like to be jammed around the sidelines from your online broker does not possess the redundancy they ought to be online all the time the foreign exchange marketplace is open. The very best foreign exchange broker does have the technological capacity to stay online any time you need, not just through quiet marketplace conditions, but through all marketplace conditions.

The very best brokers can also get things to look for should you choose have to contact your Forex broker or talk to them online, they must be mindful, friendly, and useful, in the end, the foreign exchange broker business is about customer support. In case your Forex broker doesn't have things to look for, you need to keep searching for another broker, you will find many to select from so you shouldn't be satisfied with an agent being rude to you or supplying you with meager customer support. The top Forex brokers will provide you more than what you expect together in the field of customer support and in the field of technical capacity as well.

Source : http://www.currencycorrelation.com/forex-brokers/things-to-know-about-forex-brokers

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How Forex Trading Signals Are Generated And Delivered To Customers

Despite all the skepticism regarding digital trading, a lot of people are actually exploring how forex trading can help them augment their finances. After all, the principle is quite simple, and a start-up investment can be just under $10. However, more and more are learning about how reliable this micro trade is as an income generator — and better yet, that there are tools that they can invest in to consistently trade successfully.

Among these tools are forex trading signals which most traders prefer to use. What are they? Basically, they are suggestions for entering a trade on currency pairing at a specific price and time. Signals are generated two ways: by human analysts or automated forex robots provided to a customer of a forex signals provider. What’s particularly special about these signals these days is that they are more accessible; they are delivered numerous ways like through the customers’ email, the signals provider’s website, texts or SMS, RSS, and even through social media status updates or tweets.

In generating these signals, there are various processes that providers use to ensure accuracy.  Of course, the traditional analyses are still utilized and human analysts take note of historical patterns and assess current market behavior. Recently, signals providers have also harnessed the power of social media in understanding the different variables that impact currency values. There are people paid by big companies to study social networking sites to get the “feel” of the market.

Robots, on the other hand, use the analytical abilities that computers have; it does what a human analyst does, but without the psychology that humans often wrestle with. The robot goes over the short- and long-term performance of the currency pairing. With the data it derives from its programmed analysis, it invests on the most logical “potential” outcome as set by its internal programs. In a lot of cases, the straightforward process works because trading is fairly “logical” most of the time and it only buckles when unpredictable “natural” (or environmental) disasters and human activity impact the currency market.

Whichever of these signals customers are inclined to use, the main value of using them is really for profit security and risk management. In choosing a signals provider to sign up with and actually pay, it’s imperative to do a fair amount of research because they are not created the same, nor do they have the same values. Find one that has already established a good reputation among seasoned traders and is known to consistently provide the most accurate, timely signals in a prompt manner.

About the author: Sarah Miller is a business consultant and a writer. She frequently writes articles about business, marketing, sales, trading and other related topics. She also visits websites like Forexsignalprovider.com in order to increase her knowledge about trading and to share her knowledge to others.

Source : http://www.currencycorrelation.com/forex-basics/how-forex-trading-signals-are-generated-and-delivered-to-customers

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Forex Profit Multiplier Review

He immersed himself in forex profit multiplier review manuals and worked day and night time and with his willpower, he was able to grasp the art of trading. He says that as a trader what you need is a profitable edge. This profitable edge only comes if you develop a novel insight into the artwork of trading. He has been releasing on and off complimentary videos and reviews on find out how to commerce forex. He was always been asked by his subscribers and college students to develop a system that has acquired an excessive likelihood of winning within the minimum period of time as most of the people simply haven't got the time to sit down in front of their laptop for hours ready for the best setup to appear. Everyone desires something simple however highly reliable.

You solely have to manually add those trades and that is it. Now, one each scan you presumably can expect to find multiple high likelihood trade opportunities on the 6 main pairs. Payment Poultry's newest training, the Forex Income Multiplier, is extra than just an education useful resource. It consists of three thorough dealing applications along with an investing warn application. On this article, I want to go more than what this course can train you and no matter whether or not it is potential to actually use it to create a steady revenue in Forex. The identical old pondering process with regards to deciding upon a buying and selling system or course is whether it is a good investment for you. When you're contemplating the Foreign exchange Profit Multiplier course and system by Bill Poulos, that is how it is best to think about it, as an investment that you could consider.

At its core, this can be a coaching course that teaches you several dealing applications for buying and promoting the four hour time-frame together with the most important currencies. The concept is at all times to offer you three units for a big selection of market situations which may be utilized simply in as minor as 20 minutes every day you want to trade. This generally is a system supposed for merchants who tend to not want, or are unable to, expend hrs in entrance of your charts, poring in excess of a large variety of technical indicators. Forex Profit Mutliplier isa house research trading course created by Bill Poulos, a well known buying and selling and investment educator and someone who is understood for creating advanced and sophisticated buying and selling systems. In this quick overview, I need to go over what this course provides and see whether or not it's for you. Naturally, these are my views only so you want to make up your individual thoughts about this course.

Source : http://www.forexarticlecollection.com/forex-beginner/forex-profit-multiplier-review.html

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How To Appear across The Biggest Foreign exchange Investing Tactics

For compact scale traders Forex buying and selling has now develop into a way to differentiate from normal securities. Even then it? but to be found by a lot of. For the traders to reach a larger height in the buying and selling planet, the 1st phase is to gain some insight about this trade and find out Forex robot buying and selling in the ideal way. Day to day traders have now been focused on generating income principally in stock and futures, for this kind of traders, Forex robot has emerged as one of the greatest and most reliable way of investment. If you have heard the continuous deep, resonant sound of the market place place but never ever genuinely got a chance to take a look at it, under listed are couple of factors that will give an believed about the rewards you can derive by acquiring concerned with foreign exchange buying and selling.

New account with minimal deposit: 1 the biggest advantage of buying and selling with Forex account is that you can start off out trading with a minimum balance in your account. In marketplace, you normally have to have a massive quantity of balance in your latest account to open a new 1. So the difficulty of producing significant capital in purchase to open a new account is now totally solved. With Forex replicator buying and selling, the minimum stability that you will need in your account to open a new a single individual can be as low as $100. New traders can practice Forex trade employing demo accounts and can trade genuine time only when they are confident of their capabilities.

Marketplace size: help all these who are aspiring to turn out to be a successful trader and find the market place place. The transaction per day is in trillions. The superior part is that no single trader or investor could ever make the monopoly in the industry for a really lengthy time and as much more and considerably far more traders will come in the marketplace, the liquidity will preserve escalating. In this kind of cases, as soon as a trade is finished, the order is filled promptly, thereby, building it uncomplicated for further investors to be a component of it and avoids any type of delay.

24hours support: The market place place is open 24/7 as the trading and non trading hours are distinctive for diverse nations. It? the selection of the investor to pick up an appropriate window and proceed trading.

The involvement of electronic communication ensures provide of the beneficial elements of following hour trading. So choosing upon the suitable Forex robot trading tactics can assist you to earn a lump sum volume of uncomplicated income.

XForex.com is a reputable Forex trading platform for effective Forex robot buying and selling. At XForex replicator Forex robot Broker, you can read most present Foreign exchange marketplace position news, know and advantage from profitable Forex robot currency trading resources, and so on. broker offers every standard and premium fx account apart from demo Forex account. For a great deal extra information and facts and facts on XForex benefits, please pay a visit to

Source : http://www.forexarticlecollection.com/forex-beginner/how-to-appear-across-the-biggest-foreign-exchange-investing-tactics.html

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Which is the foreign trade specialist advisor give maximum return

Which is the foreign trade specialist advisory give maximum return

Foreign exchange trading could be the most hard type of investment for the home based trader. Programs and indicators are in abundance on the foreign exchange trading web-sites. Quite a handful of of these programs do the job some of the time but truly couple of perform most of the time.

The harmonic trading pattern creates a rather trusted Forex trading approach and it is completely no cost for any trader to use. Harmonic signals had been discovered fairly a few many years ago and have been under continuous improvement. The complicated nature of the harmonic signal algorithm wants effective computer sources.

The present state of this foreign exchange indicator supplies high probability trading signals that even the novice trader can apply. The harmonic indicator can be put in on the Metatrader Forex trading platform.

Trading this signal does not have to have significant know-how or encounter of Forex robot trading or technical analysis. Trades can be set up and executed with minimal time specifications. Harmonic trading is perfect for the home based investor that can't dedicate a huge amount of study time.

Forex brokers present mini trading accounts that make it inside reach for practically almost everyone to attempt their hand at currency trading. Pretty a few brokers also give practice accounts that enable novice traders to hone their talents. Veteran traders normally use these accounts to consider out and test new ideas and systems.

The currency marketplace is highly volatile and the value tag action continuously alterations direction during the course of the standard day. The harmonic signals detect regions of value reversal with uncanny accuracy. The nature of harmonic signals give higher probability trade set ups with tight quit reduction settings.

Controlling losses is the prime objective of foreign exchange investing. If losses can be managed the earnings will come. Various current Forex programs experience huge drawdowns and excessive losses. Harmonic trading decreases losses and drawdowns compared to most other currency trading methods.

Opening a FX Mind Mastery trading account and downloading the Metatrader trading platform wants a modest investment and small time. Some brokers present a "no minimal" investment and markets can be traded for as minor as a penny a point. As soon as the trader is comfy with the method, the investment can be elevated to supply an increased profit.

Harmonic Forex robot trading is appropriate for novice and skilled traders alike. The trade signal is Fibonacci based which is extensively manufactured use of in the currency trading sector. Trade entry and exit points are evident and readily implemented. Win probability is high and the threat to reward ratio is fairly great. Proper bucks management principles will increase harmonic Forex robot trading to present a complete foreign exchange program.

Source : http://www.forexarticlecollection.com/forex-beginner/which-is-the-foreign-trade-specialist-advisor-give-maximum-return.html

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forex Account Varieties

Forex Account Varieties

The origins of the 4x ATM sector that we know currently came about following the move away from fixed currency exchanges to new 'floating' currency prices in the early 1970's. Since this time the marketplace area has steadily grown, with interest fueled by advances in technologies such as telephone dealing and of program pcs. These have permitted for ever added participants to enter the sector put.

Foreign Exchange is not one central market put. As a substitute it is comprised of a network of rather a couple of thousand trading institutions comprised of Central Government financial institutions, Worldwide financial institutions, personal and industrial businesses and devoted brokers. Whilst there is no central place associated with 4x ATM, most trading is based mostly all around vital trading centres. The most necessary of these are regarded as receiving London, New York, Tokyo, Hong Kong, Singapore and Frankfurt.

When there are a quantity of large players who make use of the currency markets for business dealings and investment, 4x ATM is also accessible to the smaller investor. Access to deal on 4x ATM has been produced probable by new trading regulations which govern offered transactions sizes and changes to monetary laws.

The Interbank trading size of $one hundred,000 dollars per round lot has now been damaged down into smaller sized tradable great deal sizes. Compact traders can now consider control of these plenty by way of 'leverage'. The volume of leverage you will be provided by a broker will usually rely upon your trading experience. Even so, usually a leverage of one hundred:1 will be provided. This indicates that even with a reasonably small deposit of $1000 you will be capable to handle a $one hundred,000 dollar currency exchange.

So why have so lots of traders begun to trade on these markets and what are the vital rewards for an investor?

- Accessibility - the forex marketplace is open about the clock, 24 hours a day, five days a week. You can place transactions on the markets at any stage for the duration of this time. Trades can be executed via your private laptop or computer across the On the web in just a matter of second.

- Substantial Liquidity - in contrast to stock investments, currency trading is unbelievably 'liquid'. The higher quantity of transactions on the sector place around the clock implies that there is usually a purchaser or seller for a specific currency so you will have no troubles in receiving your orders filled no matter what time of day it is.

- Open Market place put - the sector is regarded as 'open' and 'transparent'. Currencies moves are dictated by news movement and adjustments in the outlook for nationwide economies. There can be no 'insider trading' as this data is readily accessible to each trader of the industry place at the precise very same time.

- No commission fees - the value of every single single transaction is presently developed into each and every and each trade and is known as the brokers 'spread'. This is the distinction amongst what a currency pair can be purchased at and what it can be offered at.

So How Can You Profit From 4x ATM?

Currencies are consistently traded in pairs - the US dollar against the Japanese yen, or the English pound against the euro. Each transaction will involve selling 1 currency and getting an additional, so if an investor believes the euro will achieve against the dollar, he will promote dollars and get Euros.

Currency trading generally consists of selling one currency and acquiring a various. For this purpose you will generally see currency costs quoted in pairs, for instance the Euro against the US Dollar (EUR/USD).

If a trader believes that the outlook for the Euro seems a great deal much more favourable in relation to the dollar, he will get Euros and offer dollars. This would be acknowledged as going 'long' EURUSD.

The doable to generate earnings exists from identifying these shifts in valuations. The continual fluctuations of the markets presents tons of choices to earn earnings. You can recognize these occasions by the use of the two simple parts and technical evaluation as element of your trading.

Source   : http://www.forexarticlecollection.com/forex-beginner/forex-account-varieties.html

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Is Online Forex Trading Right for You?

Online Forex trading, the trading of foreign currencies from the comfort of your own home, may be the ultimate home business.
Since the Forex market is a 24-hour-a-day market, you can work your business at convenient times. Many brokers allow you to open an account with a small amount of cash and trade small amounts of currency. Since your upfront equipment investment can be as little as a thousand or so dollars, you can start this business with a relatively small investment.
Yes, Online Forex trading can be a very rewarding experience. But like any other business, you must be properly prepared. You must start with a business plan. You have to do your due diligence to be sure you understand completely what is involved and you will also need to be somewhat computer and Internet literate.
The most important preparation you must do for your Forex trading business is get the proper training. As I've said before, trading is not a get-rich-quick endeavor.  You will need to spend time learning how to execute profitable trade setups, how to manage your account and your risk and how to control your emotions. There are definitely pros and cons to the business of Forex trading. You can look here for a few examples.
Online Forex trading can be a rewarding and profitable business venture, if you take the proper steps to be successful.
Maybe it's right for you.

Source : http://technorati.com/business/finance/article/is-online-forex-trading-right-for/

 

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Money Management Tips For Trading On The Forex

What is Money Management: describes strategies or methods a player uses to avoid losing their bankroll.

Money management in the foreign exchange currency market requires educating yourself in a variety of financial areas. First, a definition of the foreign exchange currency or forex market is called for. The forex market is simply the exchange of the currency of one country for the currency of another. The relative values of various currencies in the world change on a regular basis. Factors such as the stability of the economy of a country, the gross national product, the gross domestic product, inflation, interest rates, and such obvious factors as domestic security and foreign relations come into play. For instance, if a country has an unstable government, is expecting a military takeover, or is about to become involved in a war, then the country's currency may go down in relative value compared to the currency of other countries.
The Forex, or foreign currency exchange, is all about money. Money from all over the world is bought, sold and traded. On the Forex, anyone can buy and sell currency and with possibly come out ahead in the end. When dealing with the foreign currency exchange, it is possible to buy the currency of one country, sell it and make a profit. For example, a broker might buy a Japanese yen when the yen to dollar ratio increases, then sell the yens and buy back American dollars for a profit.
There are five major forex exchange markets in the world, New York, London, Frankfurt, Paris, Tokyo and Zurich. Forex trading occurs around the clock in various markets, Asian, European, and American. With different time zones, when Asian trading stops, European trading opens, and conversely when European trading stops, American trading opens, and when American trading stops, then it is time for Asian trading to begin again.
Most of the trading in the world occurs in the forex markets; smaller markets for trade in individual countries. Simply put forex trading is the simultaneous buying of one currency and selling of another. Over $1.4 trillion dollars, US of forex trading occurs daily and sometimes fortunes are made or lost in this market. The billionaire George Soros has made most of his money in forex trading. Successfully managing your money in forex trading requires an understanding of the bid/ask spread.
Simply put the bid ask spread is the difference between the price at which something is offered for sale and the price that it is actually purchased for. For instance, if the ask price is 100 dollars, and the bid is 102 dollars then the difference is two dollars, the spread. Many forex traders trade on margin. Trading on margin is buying and selling assets that are worth more than the money in your account. Since currency exchange rates on any given day are usually less than two percent, forex trading is done with a small margin. To use an example, with a one percent margin a trader can trade up to $250,000 even if he only has $5,000 in his account. This means the trade has leverage of 50 to one. This amount of leverage allows a trader to make good profits very quickly. Of course, with the chance of high profits also comes high risk.
Like many other speculative investments, a key part of money management for the forex trader is only using money that can be put at risk. It is wise to set aside a portion of your net worth and make that the only money you use in forex trading. While the chances of good profits are there, if you should have a problem and get wiped out, you'll only have a limited amount of money placed at risk. Also remember that the market is n constant motion. There are always trading opportunities. If a currency is becoming stronger or weaker in relation to other currencies there is always a chance for profit. For instance, if you believe that the Euro is gong to become weak compared to the US dollar then selling Euros is a good bet. If you believe that the dollar is going to become weaker than the yen, or the pound sterling, then selling dollars is wise. Staying current on the news and current events in the countries whose currency you hold is a smart move. Many people reach points where they can predict currency changes based on political or economic news in a given country. Remember though that forex trading is speculation, so be careful when managing your funds and only invest what you can afford to risk.
Please always make sure you check with the pros when dealing in this market unless you are doing this as a hobby and don't have a lot at stake in it. There are a lot of big boys playing here and they won't lose much sleep if you and thousands others lose their shirts...

by David Mclauchlan
 
Source : http://www.earnforex.com/articles/money-management-tips-for-trading-on-the-forex

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Revealed — Million Dollar Forex Investing Mistakes

Anytime that you are investing in the Forex market, you are going into the Market blind. You don't know what point of the investing trend you are entering in at. You might be investing in a Forex stock just before the trend changes. Smart investing means you need to protect your trading float and set up a stop loss. This needs to be done before you enter a trade, so that there is no room for error, or last minute indecision. A stop loss is simply a predefined point at which you exit the stock.
Effectively, it's like drawing a line in the sand underneath the share price, saying, "If the share price falls below this line, then the stock hasn't done what I thought it was going to do, and I'll exit the position."
This allows you to protect your investing trading plan, because it cuts your losses short, and guards against an all too human tendency to want to believe you must be right.
95% of investing in an entry Forex position means you are expecting to profit from the trade. If, however, the share-investing price goes against you, you might feel the need to justify why you bought the stock by holding onto it until it turns a profit. You might have heard the idea that all big investing losses once started as small losses. Well, while the share price continues to go in the wrong direction, those losses grow in lockstep. This is why you need to have a stop loss in place — it's like having an ejector seat that tells you when to abort the mission.
One of the most common question I'm asked when traders are introduced to a stop loss is "How wide should I set my stop?"
In other words, how much room should I give the stock to move? There are no definitive answers to this question because it depends on what time frame you're investing in. If you're a shorter-term investing trader, you're going to have a stop loss that's set closer to the share price. If you're a longer-term investing trader, you'll give the share price a little bit more room to move and set your stop loss lower.
Once you've identified what time frame you're looking at trading, you need to be able to remove the normal market noise (volatility) in that particular time frame. You don't want to have to close out of an investing position just because a share price moved a little bit due to its normal trading volatility.
In fact, there are some serious drawbacks to setting tight stops.
First, you'll decrease the reliability of your system because you get stopped out more often.
Second, and probably a little bit more importantly, you dramatically increase your transaction costs, because you're trading transaction costs make up a major proportion of your business expenses.
To give yourself a fighting chance, you want to trade a system that doesn't chew through excessive brokerage fees. This is one of the major reasons I steer my clients into developing a trading system that runs over a slightly longer time frame. With the correct system in place, and your investing risk minimized, you are well positioned to maximize your trading profits.
by David Jenyns

Source : http://www.earnforex.com/articles/revealed-million-dollar-forex-investing-mistakes

 

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5 Things You Must Do If You Want To Attain Financial Freedom Through Forex Trading

With the amazing growth of the forex market, you are going to see an astounding amount of traders lose all their money. Unfortunately, they haven't followed the simple steps I have laid out for you. Go through these steps and give yourself the greatest opportunity to achieve your goals.
1. Have Faith In Yourself
To reach the level of elite forex trader, you must trust in yourself and your forex trading education. You must be willing to make all your trading decisions, instead of relying on someone else's thoughts or ability (or lack of). Of course, you will prepare yourself fully before every risking any money.
2. Accept Your Learning Curve
Unless you are a veteran trader, you will lose money trading the Forex market. This is a near certainty. I don't say this to talk you out of trading. In fact, quite the opposite. You will be trading against others that fall to this reality day in and day out. You, however, will not risk a dime until you have learned the skills you need to make money trading the forex.
3. Decide What Type of Trader You Are
There are many ways to trade the forex. They range from very active to very patient. You must decide which style suits you best. The best time to learn this about yourself is while you are trading a demo account. There is no need to allow your learning curve to cost you money.
4. Get Educated
Education is the shortest path to elite forex trading. Regardless of your ultimate goals, you will reach them quicker with a great forex trading education. Take some time to review different options before deciding on who to trust with your forex trading education needs. A forex seminar will help shorten your learning curve drastically.
5. Continue to Get Educated
In order to achieve and retain elite forex trading skills, you must constantly be adding to you knowledge base. Your education should never end. In fact, one of the key points to look for in an elite forex trading course is ongoing education. It's nice to have an ongoing relationship with the person/people helping you to achieve your goals.
What separates an elite forex trader from all others is their desire and ability to be independent. Many traders are willing to follow signals, systems, strategies, or anything else you may call them. By taking this approach, however, these traders are only as good as the people they follow.
An elite forex trader will lead. Their decisions will be calculated and analyzed to near perfection. They will make decisions with no hesitation, and handle the growth of their account in a predetermined, intelligent fashion. Take your trading to their level and you will never look back.
by Eddie Yakubovich

Source : http://www.earnforex.com/articles/5-things-you-must-do-if-you-want-to-attain-financial-freedom-through-forex-trading

 

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Trading Forex Online? How to Get a Good Start As a Beginner in the Forex Market

Trading currency online in the Forex foreign exchange market is popular and the popularity is
increasing. My focus in this article is to tell about how to trade currencies online. My focus is also to tell about a network called "Social Trading".
What is Forex? The FX market also known as the Forex foreign exchange market is the market where currencies are traded. The pricing is set by demand and supply.
The FX market is one of the biggest and most liquid markets in the world. According to the 2010 Triennial Survey the most heavily traded bilateral currency pairs were:
EURUSD: 28%
USDJPY: 14%
GBPUSD: 9%
Traders make money by buying currencies. They buy a pair. A pair is consisting of two different currencies. A base currency and a counter currency. An example is the EUR/USD. The EUR is the base currency and the USD is the counter currency. The base currency is 1 and the counter currency is 1,3266. In other words 1 Euro is worth 1,3266 Dollars.
If the counter currency rise to 1,3269 then 1 Euro is worth 1,3269 dollars. In other words the EUR has strengthened compared to the USD and traders has gained a profit.
How to trade currencies online? Trading currency online is easy. Search on the Internet and find an online trading platform and sign-up for a free trading account. Most of them have a free practice account where it is possible to trade with virtual money.
In the beginning the trader can use the practice account to learn how the trading platform works. Use also the practice account to trade in larger amounts. Psychological the trader will get used to that a pip is worth 30 Euros, instead of 5 Euros. This is an advantage in the long run if the trader should have the capital stock, motivation and ability to trade with larger amounts.
As a new trader in the Forex foreign exchange market it is difficult to find trading information and trades. A good start as a new trader is to join a network where trading knowledge is shared among traders by duplicating trades from expert traders and communicating with them.
As a beginner it is an advantage because the beginner is gaining a profit by copying the trades the expert trader makes. The beginner is also in a learning stage where he can get an answer about how the expert trader managed to get a profit on a particular trade.
Copying an expert trader is about money and profit. The best start to copy an expert trader is to copy with a small amount in the beginning. It is recommended that the amount is around 5 % of the capital stock of the trading account. When the expert trader has proven he can deliver a profit increase the percentage.
The expert trader can by joining the social network gain an extra income and a kick back from the traders who are following him and copying his trades.

Social trading is an interesting area for both beginners and expert traders. More information is available at this link Social trading
On my Forex website is a video clip about Social Trading. Watch the video clip and click on the join now button and be sent straight to the Social trading platform. Watch the video tutorial at the top of the site to the left where the Social trading platform is explained further.

Article Source: http://EzineArticles.com/?expert=Martin_Grippen

Article Source: http://EzineArticles.com/7023715

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