Forex Signal

Forex signal services analyze several factors when preparing their data. They do a technical analysis of market conditions and use a combination of indicators to identify trends and isolate profitable entry and exit points. They then send you the results via the venue of your choice and you can choose to use the signal in your own trading, or pass on it.

Most forex signal services offer signals for only a handful of the most popular currency pairs, such as EUR/USD, USD/JPY, GBP/USD, USD/CHF. Occasionally, you can find specialty services that offer signals for other lesser traded pairs. Forex signals can be costly, even upwards of $100 / mth. The benefit of subscribing to such a service is that they analyze and crunch the data for you, saving you time. It should be noted, however that using a signal service is no substitute for a proper education in the Forex markets. Signal services give you data, you still need to know what to do with it.

When shopping for a signal service, make sure that they provide you with historical data so that you can see their track record for yourself. Remember, that like any trader, Forex signal services also have loosing trades.

FOREX Quickie

First what is Forex: The FOREX or Foreign Exchange market is the largest financial market in the world, with an volume of more than $1.5 trillion daily, dealing in currencies. Unlike other financial markets, the Forex market has no physical location, no central exchange. It operates through an electronic network of banks, corporations and individuals trading one currency for another.

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.

The Forex and the stock market have some similarities, in that it involves buying and selling to make a profit, but there are some differences. Unlike the stock market, the Forex has a higher liquidity. This means, a lot more money is changing hands everyday. Another key difference when comparing the Forex to the stock market is that the Forex has no place where it is exchanged and it never closes. The Forex involved trading between banks and brokers all over the world and provides twenty-four hour access during the business week.

Another difference between the stock market and the Forex is that Forex trading has higher leverage that the stock market. When someone decides to invest in the Forex, they can expect higher profits when they are experienced and understand how it works. There can also be the potential for losing a heck of a lot of money as well.

There are many terms (terminology) when dealing with the Forex. Learning to trade on the Forex can be somewhat complicated for the novice or (rookie) trader. When looking at the names used in the Forex, a symbol is composed of two parts. The first one that is used is one currency and the second half of the symbol is the second currency that is being used. The symbol "usdjpy" means "US dollars" and Japanese yen. It is important to learn what currency symbols mean when learning about the Forex. There are many books and websites dedicated on teaching traders about using the Forex.

For those using the Forex, a broker is usually a good idea. Brokers are professionals when it comes to trading on the Forex and their experience is invaluable, especially to the new trader. When it is time to find a broker, there are several factors to consider. One thing to look for when choosing a Forex broker is to go with someone that offers low spreads. The spread is calculated in pips, or the difference between the price at which currency can be purchased and the price it can be sold at any given time. Because Forex brokers do not charge a commission, they will make their money off of the spreads, or the difference. When choosing a broker, look at this information and compare that with other brokers.

Here is something very important to remember. When looking at a Forex broker, look for one that is backed by a big financial institution. Forex bankers are generally associated with large banks or other types of financial institutions. If a broker is not with a large bank, keep looking. In addition, look for a broker that is registered with the Futures Commission Merchant (FCM) and that is regulated by the Commodity Futures Trading Commission (CFTC). Making sure that the broker is properly registered and backed by a large bank or institution ensures that you are getting a reliable broker that is experienced in trading on the Forex.

When looking for a broker, check to be certain that the broker has access to the latest research tools and data. It is important that brokers understand and have access to charts, graphs, news and data that are in real time. This will ensure that the broker is making wise decisions based on accurate Forex forecasting. Also, look for a broker that can offer a wide range of account options.

FOREX Trading History

In those days, the value of goods were expressed in terms of other goods(also called as the Barter System). The obvious limitations of such a system encouraged establishing more generally accepted mediums of exchange. It was important that a common base of value could be established. In some economies, items such as teeth, feathers even stones served this purpose, but soon various metals, in particular gold and silver, established themselves as an accepted means of payment as well as a reliable storage of value. Trade was carried among people of Africa, Asia etc through this system.

Coins were initially minted from the preferred metal and in stable political regimes, the introduction of a paper form of governmental I.O.U. during the Middle Ages also gained acceptance. This type of I.O.U. was introduced more successfully through force than through persuasion and is now the basis of today's modern currencies.

Before the First World war, most Central banks supported their currencies with convertibility to gold. However, the gold exchange standard had its weaknesses of boom-bust patterns. As an economy strengthened, it would import a great deal from out of the country until it ran down its gold reserves required to support its money; as a result, the money supply would diminish, interest rates escalate and economic activity slowed to the point of recession. Ultimately, prices of commodities had hit bottom, appearing attractive to other nations, who would sprint into buying fury that injected the economy with gold until it increased its money supply, drive down interest rates and restore wealth into the economy.. However, for this type of gold exchange, there was not necessarily a Centrals bank need for full coverage of the government's currency reserves. This did not occur very often, however when a group mindset fostered this disastrous notion of converting back to gold in mass, panic resulted in so-called "Run on banks " The combination of a greater supply of paper money without the gold to cover led to devastating inflation and resulting political instability. The Great Depression and the removal of the gold standard in 1931 created a serious lull in Forex market activity. From 1931 until 1973, the Forex market went through a series of changes. These changes greatly affected the global economies at the time and speculation in the Forex markets during these times was little.

Forex Made Easy for Everyone

Foreign exchange is the buying and the selling of foreign exchange in pairs of currencies. For example you buy US dollars and sell UK Sterling pounds or you sell German Marks and buy Japanese Yen. Why are currencies bought or sold? The answer is simple; Governments and Companies need foreign exchange for their purchase and payments for various commodities and services. This trade constitutes about 5% of all currency transactions, however the other 95% currency transactions are done for speculation and trade. In fact many companies will buy foreign currency when it is being traded at a lower rate to protect their financial investments. Another thing about foreign exchange market is that the rates are varying continuously and on daily basis. Therefore investors and financial managers track the forex rates and the forex market it on a daily basis.

Those who are involved in the forex trade know that almost 85% of the trading is done in only US Dollar, Japanese Yen, Euro, British Pound, Swiss Franc, Canadian Dollar and Australian Dollar. This is because they are the most liquid of foreign currencies (can be easily bought and sold. In fact the US Dollar is most recognizable foreign currency even in countries like Afghanistan, Iraq, Vietnam etc).

Being a truly 24/7 market, the currency trading markets opens in the financial centers of Sydney, Tokyo, London and New York in that sequence. Investors and speculators alike respond to the ever-changing situations and can buy and sell simultaneously the currencies. In fact many operate in two or more currency market using arbitrage to gain profits (buying in one market and selling in another market or vice versa to take advantage of the prices and book profits).

While dealing in forex, one should have a margin account. Quite simply put if you have US$ 1,000 and have a forex margin account which leverages 100:1 then you can buy US$ 100,000 since you only need 1% of the US$100,000 or US$1,000. Therefore it means that with margin account you have US$ 100,000 worth of real purchasing power in your hand.

Since the foreign currency market is fluctuating on a continuous basis, one should be able to understand the factors that affect this currency market. This is done through Technical Analysis and Fundamental Analysis. These two tools of trade are used in a variety of other markets such as equity markets, stock markets, mutual funds markets etc. Technical Analysis refers to reading, summarizing and analyzing data based on the data that is generated by the market. While fundamental Analysis refers to the factors, which influence the market economy, and in turn how it would affect the currency trading. Of course there are other economic and non economic factors which can suddenly affect the trading of the forex markets such as the 9/11 tragedy etc. One needs to have a shrewd acumen and a few number crunching abilities to strike gold in the forex market.

Forex Introduction

The Foreign Exchange Market was established in 1971 with the abolishment of fixed currency exchanges. Currencies became valued at 'floating' rates determined by supply and demand. The Forex grew steadily throughout the 1970's, but with the technological advances of the 80's Forex grew from trading levels of $70 billion a day to the current level of $1.5 trillion.

The Forex is made up of about 5000 trading institutions such as international banks, central government banks (such as the US Federal Reserve), and commercial companies and brokers for all types of foreign currency exchange. There is no centralized location of Forex — major trading centers are located in New York, Tokyo, London, Hong Kong, Singapore, Paris, and Frankfurt, and all trading is by telephone or over the Internet. Businesses use the market to buy and sell products in other countries, but most of the activity on the Forex is from currency traders who use it to generate profits from small movements in the market.

Even though there are many huge players in Forex, it is accessible to the small investor thanks to recent changes in the regulations. Previously, there was a minimum transaction size and traders were required to meet strict financial requirements. With the advent of Internet trading, regulations have been changed to allow large interbank units to be broken down into smaller lots. Each lot is worth about $100,000 and is accessible to the individual investor through 'leverage' — loans extended for trading. Typically, lots can be controlled with a leverage of 100:1 meaning that US$1,000 will allow you to control a $100,000 currency exchange.

Forex Market Offers Opportunity And Information

The forex market itself is basically a worldwide connection of traders, who make investment moves based on the price of currencies, or their values relative to other currencies. These traders constantly negotiate prices with other traders resulting in the fluctuation or movement of a currency's value. The value of a currency on the forex market also corresponds with supply. If there is greater demand for the Euro, let's say, then there will be less supply of it on the forex market, which means, in time, it will make a Euro more valuable compared to let's say the dollar. In short, in this forex market situation, one Euro would yield more dollars, subsequently weakening the dollar as well. Analyzing the forex market's fluctuations allows investors to make predictions on how a currency will move in relation to another currency. They then can make predictions and buy and sell currency accordingly.

Online Forex Trading

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

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

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

The Forex Trading Benefits

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

The benefits of trading the currency market:

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

It is very liquid and efficient;

It is very volatile;

It has very low transaction costs;

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

You can profit from a bull or a bear market.

Continuous, 24-Hour Trading

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

Liquidity And Efficiency

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

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

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

Note about price gaps:

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

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

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

Volatility

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

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

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

Low Transaction Costs

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

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

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

Leverage

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

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

Forex Enterprise

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

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

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

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

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

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

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

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

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

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

Forex Investing

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

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

Forex Market Advantages

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

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

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

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

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

The FOREX Trading Reasons

The reason why they are turning to the all electronic world of Forex trading is its numerous advantages over any type of investments.

Even if you are an experienced Stocks or Commodities trader you will discover how powerful the Forex is.

You can make $200 to $3000 in less than 30 minutes of work everyday.

Forex Trading is much less risky than trading currencies on the futures market, much more profitable, and a lot easier, than trading stocks.

Why should you trade the forex market?

Here are the reason why...

1) The forex market is open 24 hours, it never sleeps.

You can enter a position, or exit whenever you want, whenever you are six days a week. You do not need to wait for the opening bell like if you was trading stocks. it is excellent for you as you choose the best time for you to trade.

2) The daily trading volume of the Forex is around $1.5 trillion dollars

It is 30 times larger than the combined volume of all U.S. equity markets. This means that 1,498,574 skilled traders could each take 1 million dollars out of the FOREX market every day and the FOREX would still have more money left than the New York Stock would have daily!

3) You profit in both raising market or falling market.

You have equal potential to profit in both a rising or falling market, because it' s up to you to buy a currency, or to sell it, after you determined the market trend tendency.

4) You can trade from anywhere.

If you like to travel, this is a dream business, you just take your lap top with you and that' s it, you can make money from anywhere in the world, all that you need is to be sure that you can access an Internet Connection.

5) The leverage is considerable.

In fact, you don' t need a lot of money to trade forex, it is recommended to start with $2000, but you can start with $300, then if you have a proved strategy, your investment will grow consequently, as you can trade up to 200 times your investment. You can trade 100,000- unit currency lots with as little as 1% margin, or $1,000. there is no comparison with the stock market where you need a big amount of money to start, if you want to see real profits. And beside that, you need to post 50% margin.

6) Price Movements Are Highly Predictable.

Price movement or highly volatile in the forex, however, the foreign currencies market is moving in trends, and you can identify these trends - as they repeat in cycle- with the technical analysis.

7) No commission fees.

Unlike the stock market, brokers don' t take commission on transaction.

To trade forex, you don' t need to have a lot of money to start; you can trade at any time, from anywhere, with a Internet connection, you will not have an order pending because of lack of liquidity, you will not have to work all during the day.

Forex Trading Tips For Beginners

Thousands of online traders and investors trade the Forex market every day, and earn their living through it. If you are also aspiring to build wealth and take it up seriously for long term gains, here is a report that has simple essential tips on Forex trading.

Always Trade Pairs, Not Currencies - Meaning, try and gather in-depth knowledge and insight about both the currencies before trading. Success or failure in forex trading will largely depend upon being right about both the currencies. Only when you know how one impacts the other will you be taking the right decisions and make profits.

Remember Knowledge is Power - If you are starting out and are serious about pursuing a career in Forex trading online, it is important that you understand the basics of the market. It means keeping abreast of and a close watch on news and happenings in various economies.

Steer Clear of Un-ambitious trading & Over-cautious Trading - Many new traders will place very tight orders and take very small profits. This is not a sustainable approach in the long run. Likewise a trader who places tight stop losses with a retail forex broker is also heading for a doom. What I would recommend is that you have to give your position a fair chance to demonstrate its ability to produce.

Other Forex Trading Strategies

Finally as well as all of the trading systems and strategies listed on this page, I also have a few breakout strategies that I like to use when a good opportunity presents itself. I'm also constantly testing out new ideas and reviewing the various trading systems that I get sent regularly by product owners who want me to promote their product.

However for the most part it's my 4 hour trading strategy that I spend most time on because this is my core system which generates the most consistent and reliable profits. All of the other forex trading systems are used to boost my trading pot during the quieter periods of the week.

Forex Nitty Gritty Method

This trading method was included in the Forex Nitty Gritty course and although it is a very basic method, it is actually surprisingly effective. The goal is to look for pairs that are in strong upward or downward trends, wait for a pull-back, and then enter a trade if the trend continues.

I've been using this method on the 15 minute charts for quite a while now and it has always performed well for me because these continuation trends occur all the time.

Forex Income Engine 2.0 Methods

At the time of writing (20 June 2009) I've just started using the three day trading methods included in the Forex Income Engine 2.0 course as well. I've always been quite sceptical about many of the short-term forex methods that I come across, but I've been very impressed with these three methods so far because they do actually produce some very good returns.

Forex Trading Strategy

I created this trading strategy myself and have been using it for several years now. This one system has generated more profits that any other system I have ever used, and yet it's surprisingly simple.

I simply look at the daily trend for a particular currency pair (usually the GBP/USD, EUR/USD or USD/JPY pair) using a very simple but effective technical indicator, then I wait for two EMAs (exponential moving averages) to cross over in the same direction on the 4 hour chart.

I will then enter a position (usually after a slight pull-back) and will employ a two-part exit strategy to maximise my profits. One half of the position will be closed out early for a safe profit, and the other half will be left to run for as long as possible in order to capture those really big price moves.

As I say, this particular forex trading strategy is highly effective, as regular readers of my blog will know because I share my trading results every week in my 'Weekly Trading Updates'.

Anyway if you would like to read all about my 4 hour trading method, you can access it (for free) by filling in the short form to the right and subscribing to my newsletter.

The only problem with trading this strategy is that there will always be quiet periods and particular days where you know you are not going to get any set-ups on any of the major currency pairs. Therefore at times like these I will often employ some of the other trading methods that I keep in reserve:

Forex Trading Strategies And Systems

I've been trading the forex markets for several years now so I've developed quite a few different systems in my time. However there are some that are more profitable than others, so let me share you with you some of my most profitable forex trading strategies.

Forex Customer Comments And Reviews

Finally your ultimate choice of forex broker will often be swayed by what other traders have to say about them. There are several websites which contain customer reviews of all of the leading brokers and you will find no shortage of opinions on all of the different forex forums.

However one thing I will say is that you will never come across brokers that have nothing but positive reviews, so don't waste too much time looking for the perfect broker because it simply doesn't exist. Just look for brokers that have a high number of positive comments and you should be fine.

Forex Customer Service

If you are just starting out as a forex trader you will probably have several questions and queries when you first open an account with a broker. So therefore you should try and join a broker that offers a high level of customer service. One way of testing this out is to contact the help desk of the brokers you are considering joining, ask them a particular question, and see how long they take to get back to you.

Forex Additional Services

As well as charting software, you may also want your broker to provide a range of additional services such as daily commentaries, market analysis, educational materials and the option to deal through your mobile phone.

Forex Charting Software

Nearly all forex brokers provide some kind of charting software free of charge when you open an account with them. It may be the highly popular Metatrader 4 platform or it may simply be a no-frills charting package. So therefore if you do want to use some of the more advanced charts, then I suggest you go with a broker that provides the Metatrader 4 or ProRealTime platform, for instance, otherwise you will have to fork out some money to access some decent charts elsewhere.

Forex Brokers Minimum Deposit

If money is tight or you want to start off small (which is always a good idea), then you will want to choose a forex broker that requires a relatively low minimum deposit when opening a live trading account.

Forex Brokers Account Types

Although all forex brokers cater for the well capitalized traders, not all of them cater for those traders who wish to trade smaller positions. Therefore if you yourself fall into this category, then you should look out for brokers that allow you to trade mini-lots (equivalent to around $1 per pip) or micro-lots ($0.1 per pip).

Forex Brokers Demo Accounts

If you are relatively inexperienced or if you want to test out a broker's trading platform before deciding whether or not you wish to open a live trading account, then you should choose a broker that provides a free demo account. Most reputable brokers offer demo accounts nowadays so I would always recommend you take advantage of this facility.

Forex Brokers Leverage

The amount of leverage offered by different forex brokers varies greatly. Some may only offer 100:1 leverage while some may offer as much as 400:1. My own personal view is that 100:1 is more than enough, but if you are more of a risk taker then you may want to look for brokers that offer higher leverage.

Forex Brokers Spreads

If you are a relatively long-term trader and mainly use the 4 hour or daily charts, for instance, then the spreads offered by your chosen forex broker is not so much of an issue. However if you intend to trade the shorter time frames then your points gains per trade will obviously be a lot less, and therefore the spreads will start to eat into your profits. So as a general guide you ideally want to choose a broker that offers spreads of around 2 or 3 pips for the EUR/USD and GBP/USD pairs, and certainly no more .

Forex Brokers Regulation

This is arguably the most important factor because whichever broker you decide to go with, you must make sure that they are fully regulated with the relevant authority. So if they are based in the US, for example, then you should ensure that they are regulated by the NFA (National Futures Association) or the CFTC (Commodity Futures Trading Commission). Similarly if they are a UK-based company, then they should be regulated by the FSA (Financial Services Authority).

If you go with an offshore forex broker that is completely unregulated, for example, then you are taking a huge risk because you may never see your money again.

Forex Brokers

One of the hardest decisions you face when starting out as a forex trader is which forex broker to go with. If you do a search online you will find hundreds of different forex brokers to choose from. The trouble is that some are better than others, and furthermore there are some that you should avoid like the plague.

Forex Trading

We have all heard and read how much money we can make from Forex Trading, so what are the real rules and tips that will make us money from Forex Trading? Below we will uncover the real tips for Success.

Below are the 5 Tips to Help make you big money, they are not listed in order of importance.

1. Never buy a Forex Robot.
This is simple if you had a program that would make real money would you sell it? No.. You would keep it. The simple truth is most of these people are selling these programs and that is how they make the money not from Forex trading. So beware.

2. Get Educated and Learn Fast

Anyone can learn Forex trading and anyone can make money, you don't have to be a genius. You don't need to spend long doing it either and you should be able to learn everything you need to know, in a couple of weeks and then your all the set to trade. You should make sure that you have a trading plan and some rules.

3. The Best Proven Systems are Simple:

Make it simple, use some indicators and support and resistance. Forget trying to be clever or complicated, simple systems are far more robust than complicated ones and work. People will more often than not try and complicate things.

4. Make sure you have Risk and Money Management Rules

Success is built on money management and risk management and you need to learn about volatility and standard deviation of the price and if you have no idea what it is make it part of your essential Forex education.

5. The Golden Rule is Discipline- Set the Rules and Stick to THEM

No matter how great of a trader you are you will have losses, so you need to ride them out and have discipline, which means having rules and sticking to them

Discipline comes from knowledge of what you are doing and the ability to keep your emotions under control.

What is Forex

The international currency market Forex is a special kind of the world financial market. Trader’s purpose on the Forex to get profit as the result of foreign currencies purchase and sale. The exchange rates of all currencies being in the market turnover are permanently changing under the action of the demand and supply alteration. The latter is a strong subject to the influence of any important for the human society event in the sphere of economy, politics and nature. Consequently current prices of foreign currencies evaluated for instance in the US dollars fluctuate towards its higher and lower meanings. Using these fluctuations in accordance with a known principle “buy cheaper – sell higher” traders obtain gains. Forex is different in compare to all other sectors of the world financial system thanks to his heightened sensibility to a large and continuously changing number of factors, accessibility to all individual and corporative traders, exclusively high trade turnover which creates an ensured liquidity of traded currencies and the round - the clock business hours which enable traders to deal after normal hours or during national holidays in their country finding markets abroad open.

Just as on any other market the trading on Forex, along with an exclusively high potential profitability, is essentially risk - bearing one. It is possible to gain a success on it only after a certain training including a familiarization with the structure and kinds of Forex, the principles of currencies price formation, the factors affecting prices alterations and trading risks levels, sources on the information necessary to account all those factors, techniques of the analysis and prediction of the market movements as well as with the trading tools and rules. An important role in the process of preparation for the trading on Forex belongs to the demotrading (that is to trade using a demo-account with some virtual money), which allows to testify all the theoretical knowledge and to obtain a required minimum of the trade experience not being subjected to a material damage.

Why so Many Traders Fail at Forex

The old battlefields of the middle ages are not gone, they have merely changed form. Hundreds of years ago normal men would set out to build their empires by conquering lands through the force of arms. Today, normal men like you and i set out to build our financial empires by conquering markets throught the force of self. The blood soaked battlefields of yesterday have made way for the cash soaked commercial battlefields of today, with the large private armies of Family warlords making way for large pools of family capital. Just as armies were needed to shape empires of the past, so too is capital needed today in order to put modern commercial plans of conquest into action.

In there, lies the reason as to why many forex traders fail. They go into battle risking too many soldiers (capital) and without the knowledge of tactics needed to win the fight.

Lets look at that again.

1. They risk too much capital,

2. They do not understand Forex markets.

Many traders both successful and miserable have made these mistakes, the main reason for me writing this article is so you can learn this lesson here and do not have to make this mistake and lose money, or at the very least be cautious enough to minimise your losses.

No general will risk a majority of his men a battle that he has no plan for and where he has no idea about his enemy. So my question to you is, why would you risk your capital in market conditions you know nothing about? Luckily two remedies exist for the forex general who finds himself in this situation.

1. Make it a rule to only risk 1% of your capital in any one trade. This is to minimise your losses.

2. Educate yourself so you can recognise your chance to strike but also recognise when it is neccessary to draw. Learn to read the conditions of the forex battlefield. Great generals of the past would spend years learning battlefield tactics, luckily we can achieve this in a couple of months.

FOREX Is The Number One Exchange In The World

The Foreign Exchange market (Forex) is truly the largest exchange in the world. The amount of dollars traded on the Forex market on a daily basis is in the trillions. Most of this currency trading takes place between between large banks, central banks, currency speculators, multinational corporations, governments, and other financial markets and institutions. However, individual traders are starting to get in the mix, using internet discount brokers such as Etrade to participate in the currency exchange market.

There is no central exchange or meeting place for the Forex. All trading is done over computer networks between traders in different parts of the world. Also, unlike the stock market, the foreign exchange market is open 24 hours per day, because it is a global market. A trader in Hong Kong may be exchanging currency with a trader in Australia while an American trader is sleeping.

There are several different markets within the Forex exchange system. First, there is the spot market. The spot market deals with trades that are based on the current values of currencies. One person trades a certain amount of currency with another trader in exchange for an equivalent amount of a different foreign currency. Spot trades take two days for settlement.

The other two types of foreign exchange markets are the forward and futures markets. In the forward market, the buyer and seller agree on an exchange rate and a transaction date is set for a specific time in the future, at which point the trade is executed regardless of what the rates are at that time. On the futures market, futures contracts are bought and sold based upon a standard contract size and maturity date. Futures trades take place on public commodities markets.

A currency quote is listed differently from a stock quote. Stocks are quoted in terms of price per share. Currency exchange prices are listed as either a direct quote or an indirect quote. A direct quote uses the domestic currency as the base and the foreign currency as the quote. An indirect quote works the exact opposite way.

So, if you were to view a quote in an American newspaper that said USD/JPY = 75, that would be a direct quote and would mean that $1 of U.S. currency is equal to 75 Japanese yen. If that same quote appeared in that same American newspaper and was listed as JPY/USD = 0.013, that would be an example of an indirect quote.

As with stock prices, currency exchange prices have a bid and ask spread. The current bid is the amount of foreign currency that someone is willing to spend in order to buy $1 U.S. base currency. The ask is the amount of foreign currency that someone is demanding in order to be willing to sell $1 U.S. base currency.

Forex Exchange Tips for the New Forex Trader

Forex exchange trading can be one of the greatest opportunities to make money but forex exchange for beginners can sometimes be a source of confusion. A new trader will often experiences opinion overload. A new trader will naturally be seeking information to learn about forex trading. The problem is the internet is flooded with conflicting information from different people. So how do you sort through all these conflicting opinions?

The thing to realize is these opinions are just opinions. When it comes to trading, what works for one person may not work for another. Trading styles are different and one person will trade a system different than another. So the best thing a trader can do is just ignore this chatter of opinions.

Where most new traders go wrong is to focus on techniques and systems. Most traders have the idea that if only they can find the right system or strategy they could then start making money. It's almost like the search for some holy grail. But this is the wrong approach and that's where most on the chatter is coming from.

What the new trader should be focusing on is learning to become a good trader. Without that no system will work for you. Your focus should be on developing discipline and consistency in your trading. This is where you should be using demo accounts and not caring whether you make money or not. Just pick any trading system that you like and focus on trading it with consistency and discipline. At this point it doesn't matter if it's making money or not.

After you have spent enough time practicing and can trade consistently with discipline and not let your emotions affect your trading decisions that's when you can start thinking about which systems will actually make you money. It may take a few months or even a year or two before you develop the discipline and experience to be a successful trader.

If you are expecting to be able to make money right out of the gate without that experience it's probably not going to happen. You are better off letting an automated program or robot do your trading for you. These programs already have the discipline that most of the human traders lack. You can learn a lot by watching them trade with 100% discipline and no emotion. And they can make you a lot of money in process if you get a good one. I have posted a link to the one I use in my resource box below.

Advantages of Forex

Trading forex can be a great way of generating an extra income stream each week. This article will reveal the benefits of trading forex and also dispel some common misconceptions.

1. The first advantage, and one very important in today’s world, is that you can profit from trading forex even in a global recession. Unlike the stock market, it doesn’t matter which way the market goes.

2. You can start off with as low as $50. Contrary to popular belief it is actually possible to generate a good income from an investment as low $50. As long as you know the right principles you will be able to turn this small investment into a much bigger one in time.

3. The forex industry trades over $3 trillion dollars each and every day. (In fact the forex market is bigger than the stock market, bonds and future market combined.) This means huge potential to profit each and every day.

Forex Basics

Forex is a worldwide market, so when you are sleeping in the United States, dealers in Europe can be trading currencies with their Japanese counterparts. It is the largest financial market in the world, with the equivalent of over $3-4 trillion changing hands every day whereas traded volume on the stock markets is only 500 billion US dollars. Forex is part of the bank to bank currency market which is known as the 24-hour interbank market.

Forex trading is becoming more popular every day and it is an exciting and fast-growing marketplace. Transactions are conducted within seconds online and the markets move quickly and take new directions all the time. Forex markets are not based in one place meaning there isn't some large building on Wall Street where a load of people shout and waive dollar bills in an effort to get other people to buy them. Trading System Software to help investors in the foreign exchange market has been around for a long time, but just recently it has become extremely popular.

Trading Forex has become really accessible for private investor because of the World Wide Web, and can be a recession proof business, but it must be noted that Forex is not a means of getting rich quick and executing foreign exchange orders with this aim in mind could well end in financial hardship. Trading in online Forex means that when you are investing in foreign exchange, you are buying one currency and at the same time selling another currency. Trading occurs over the telephone and through computer terminals at thousands of established locations, as well as within home-based trading businesses worldwide.

Forex Traders

Forex Traders are computer programs that help people trade different currencies online. If you are looking for a currency trading system, this article will show you exactly what to get. Forex Traders use many different trading platforms. One of a few platforms that have recently come out, that make trading much easier is Meta 4, and if you ever traded currency online before, you'll wonder how you got by without it in the first place. it is the most popular platform amongst Forex Traders. The platform is completely updated and was recently released, and comes with so many features that it's no wonder that other platforms are less popular. Currency Traders Meta 4 is the most current platform that has gained a lot of popularity with amateur, home traders. Many users run the platform with one of the best Forex Traders Robots on the planet. A trading platform, also often called a Foreign Currency Trading System, a program or set of information that can help you increase your profits, ease of trade, or knowledge of certain areas of the foreign exchange market. Forex Traders such as Meta 4 are designed to provide foreign currency traders with tools and that make trading easier, and offer info updates on select areas of currency exchange in the world as they happen. If you are new to the Forex Traders market, you definitely want to utilize one of the best automated robots that perform all the complicated trading tasks for you, making you money even when you sleep. I have done extensive research about Currency Traders robots, and prepared a list of the best robots for you.

These Forex Traders automated robots are very sophisticated programs that are significantly more capable than less professional ones, and their efficiency and capability come at a significantly lower cost. All of the above robots are by far the most popular Forex Traders system amongst amateur investors. They are powerful enough and versatile enough for large trading firms as well as individuals, and are relatively cheap and easy for a newer trader to quickly get used to. They have a relatively simple layout, and are very easy to use, while still providing the necessary tools and functions. There is no doubt that if you choose one of the Forex Traders robots, you're sure to appreciate the enhanced ease of use, speed, simplicity, and of course productivity it lends to your trading. If you are ready to making serious money, Forex Traders robots are what you need running in your computer.

Forex World

Before there was forex, there was Hawala, an informal currency exchange that has been in existence since the days of the Silk Road when traders and financiers have been using this system to barter and trade with other merchants from other countries. During that time the world's main economic trade was along this legendary route. This system evolved into what is known as Hawala, which means "transfer" or "wire" in Arabic banking jargon. This type of system is widely used in Middle East, Africa and Asia. It was major mechanism that expanded trading between Europe and Asia. In time the system matured into legitimate banking system in some Asian countries while in other areas they are still unregulated and until recently scrutinized as an underground for funneling of funds for terrorist activities.

Today, the true from migrant workers from Asia (Indian and other Asian countries) who work in the oil-rich Middle Eastern countries such as United Emirates, Saudi Arabia among others and send their money home to their families. Since this system has been unregulated, it has been a fixture for centuries so traditions of its use continue among the people in this region. Why would anyone use this "insecure" system? Trust, timeliness and cost-effectiveness. Going to a bank to make a wire transfer can be time consuming and commissions are excessively high (opening an account and wires take 7-14 business days and commissions can be $30-50 per transaction whereas the Hawala system can be done next business day with an average of 5% commission of the amount transferred). But the biggest obstacles for banks and government-regulated institutions are mistrust among individuals. The Hawala system has a network of contacts/connections that these individuals rely on to do business. Friends and family who have used this network before would recommend their friends to the same individuals in the Hawala network. This is a very common attitude in Asia and underdeveloped countries. Another reason why the Hawala system is popular is because many developing governments forbid moving of funds in or out of the country. The Hawala system goes around this system without really violating the law. There are equivalents that exists outside of India with similar systems. They go by the names such as Fei-Ch'ien, Huikuan, Chop, Chit oder Flying Money in China, Padala (Philippines), Hundi (India), Hui Kuan (Hong Kong), and Phei Kwan (Thailand). Find out more on http://www.forexplane.com

Before this accusation come under fire, the majority of the funds being transferred were done by migrants sending their money to their home countries to support families left behind, similar to wire transfers through anonymity in cash serviced by Western Union. Hawala is not part of the forex system we all know today. Therefore the rates do not match that of the legal quotes of forex, so the true volume of forex is underestimated and not accounted for. There are no official organizations that track and monitor these activities. This decentralized system makes it impossible to make an accurate estimate of the size of the transactions day to day whereas in an exchange, stocks, bonds and futures are centralized and monitored by an entity making stocks more transparent.

There have been concerns that these black markets comprise a big portion of the forex market in general. Even though it's difficult to speculate, the most liquid currencies are not in these minor countries but in the currencies of the economic powers such as the US Dollar, the British Pound Sterling, the Euro, Japanese Yen and the Canadian Dollar. These major currencies make up the G-8 (Canada, France, Germany, Italy, Japan, UK, and US, Russia is an honorary and not because of its economic power). Click for a graph here: http://news.forexplane.com/Articles/Hawala/tabid/111/Default.aspx

These forex transactions results from economic trades are estimated to $1.9 trillion per day while retail traders make up a very small part of this market. As explained, the forex market is not merely migrants sending their money homes or tourists exchange currencies to carry out their vacations abroad. According to David Krutz from the Financial Times website (Published: October 9 2006 20:48) "The foreign exchange market will have doubled in size in just three years next year, thanks to increased participation by fund managers and pension funds. FX volumes, which rose from $1.770 trillion in 2004 to $2.0 trillion last year, were set to rise to $2.6 trillion this year and $3.6 trillion next year, as foreign exchange became accepted as an asset class in its own right according to TowerGroup.

Although remain part of the landscape, it cannot replace the forex for what it is today. In addition, as more countries modernize and societies with technology advancing at a rapid rate, these systems will provide less and less service to the migrants. But the biggest threat will be the anti-terrorist doctrine being implemented by the West, pressuring governments controlling these territories where these systems thrive to regulate their activities.

Any opinions, news, research, analyses, prices, or other information contained on these articles are provided as general market information and does not constitute. Forexplane.com will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.

Forex Trading System A Key To Successful Forex Trading

Every one has his days when no matter how well he has planned out his trades, he may find some of his trades not performing to what is planned. It is only natural for one to feel upset, but for the follower of a forex trading system, making money or losing money from that trade is not the paramount objective.

Why is this so?

For the trader who employs a forex trading system, he can still face the losing trade with a smile, because he has had followed through the trading signals in a disciplined way, and it is only when a trader follows a system, he can be sure of keeping his losses small and to live to trade again anothr day.

By using a forex trading system, the trader can have a cool head, and can face his trades rather unemotionally. He can execute his trades following predetermined price levels of initial stop loss, trailing loss and computed and projected price profit.

He knows his tolerable level of loss, his threshold of pain and of course, his risk to reward ratio even before he trades.

Now when a trader has a trading system and follows through the trading plan, making profits is a natural result when he makes a correct trade. But when his trade is wrong, his forex trading system will very quickly show him that the direction of his trade is wrong, so that he is out of the game fairly quickly.

I am often flabbergasted at some very broad claims of some traders who condemn day trading systems and relegate them to the garbage bin. When you look at forex trading systems, review them quickly by peer recommendation whenever possible. By peer recommendation, I mean you can ask existing traders their experience on the trading system, and how they are doing with it. Posting to the numerous reliable trading forums will allow you to receive some independent reviews fairly quickly. At the same time, my personal experience, and that of many other professional traders is that day trading can be profitable, though it is never easy to day trade. Otherwise, how is it that so many day traders are able to earn their income day trading the short swings of the market daily for a living? So it is important for you to have a broad view of forex trading systems if you are contemplting of learning or purchasing any trading system that relates to day trading.

If you ever wish to trade successfully, whether you day trades or swing trade, it is important that you have a trading system that will allow you to approach trading in a disciplined manner. It is only when your a disciplined trader that you can see consistent large gains and small losses.

Money Management Principles

Trade With Sufficient Captial

One of the worst blunders that forex traders can make is attempting to trade without sufficient capital.

The trader with limited capital not only will be a worried trader, always looking to minimize losses beyond the point of realistic trading, but he will also frequently be taken out of the trading game before he can realize any sense of success trading the method(s) or patterns.

Exercise Discipline

Discipline is probably one of the most overused words in forex trading education. However, despite the clich, discipline continues to be the most important behaviour one can master to become a profitable trader. Discipline is the ability to plan your work and work your plan.

It ¡s the ability to give your trade the time to develop without hastily taking yourself out of the market simply because you are uncomfortable with risk. Discipline is also the ability to continue to trade the methods and patterns even after you ¡ve suffered losses. Do your best to cultivate the degree of discipline required to be a world-class trader.

Employ Risk-to-Reward Ratios

The following shows you possible risk-to reward ratios, and the win ratios required to break even in a trading system.

Risk-to-Reward Ratio (in pips)and Win Ratio Required to Break Even(%)

40/20 (2 to 1) = 67%, 40/40 (1 to1) = 50%, 40/60 (1 to 1.5) = 40%,
40/80 (1 to 2) = 33.5%,
60/20 (3 to 1) = 75%,
60/60 (1 to 1) = 50%,
60 /90 (1 to 1.5) = 40%,
60/120 (1 to 2) = 33.5%

Important Note

Never risk more pips on a trade then you plan to make. It doesn¡t make sense to risk 100 pips in order to make only 10. Why? See below example.

Profit taking level (pips): 10
Stop used or pips at risk: 100

You win 10 times which makes 100 winning pipes. You ONLY lose once and have to give back all profits!!!

This type of trading makes no sense and you will lose on the long term guaranteed!

Forex Market Overview

The forex options market started as an over-the-counter (OTC) financial vehicle for large banks, financial institutions and large international corporations to hedge against foreign currency exposure. Like the forex spot market, the forex options market is considered an "interbank" market. However, with the plethora of real-time financial data and forex option trading software available to most investors through the internet, today's forex option market now includes an increasingly large number of individuals and corporations who are speculating and/or hedging foreign currency exposure via telephone or online forex trading platforms.

Forex option trading has emerged as an alternative investment vehicle for many traders and investors. As an investment tool, forex option trading provides both large and small investors with greater flexibility when determining the appropriate forex trading and hedging strategies to implement.

Most forex options trading is conducted via telephone as there are only a few forex brokers offering online forex option trading platforms.

Forex Option Defined - A forex option is a financial currency contract giving the forex option buyer the right, but no the obligation, to purchase or sell a specific forex spot contract (the underlying) at a specific price (the strike price) on the or before a specific date (the expiration date).

Finding a Forex Broker

Most traders and investors out there know, the foreign exchange market is the largest market in the world. This is why we are seeing so many people making the transition from shares, options, futures to the Forex Markets. With the brilliant liquidity, much longer trading hours, we are seeing traders realize returns as much as 40% a month and in some cases even more.

However if there is big money to be made, there are big scams too. Everyone wants to profit, including all the wall of traders that do not educate themselves with the basic and look to make the quick riches. They also make the mistake of not picking the best forex broker for their own trading.

The best forex broker is an individual could choose is one that has a good history that is available for the public to see. No the CFD FX REPORT has recently used all of there knowledge to research the best brokers, so you can visit them for a broker suggestion.

With a market that is as large as the forex market and very high returns, scams become a thing of the normal.

Criteria to Find the Best

Make sure that you read all of the fine print with the broker. Looking at the regulation they need, and where the money held and how easy you can access your funds
.
Its your money and like in every market there is some risk. Just make to most informed and educated decision you can and prepare yourself for a strong relationship.

Another big component that most traders look for in the Best Forex Broker is the spreads they offer. This is the difference between the bid-ask price that the offer. This is the commission they receive for marking executing your orders. As it may seem a good thing that low spreads are offered but should not be the only basis for making your decision. Other factors can come into play that make up for the broker offering lows spreads.

Your forex broker will become a long term financial partner through your forex trading success. The biggest thing you can do and get out of this article do your research before making your decision. Remember with so much money to be made in the market, there are always those that will want to take away from others that are successful.

How To Be Successful Forex Trading

There are some major advantages to Forex Trading.
* The long hours that the forex market is open, it trades 24 hours a day for 6 days per week and is the most liquid market in the world. So even if you have a full time job you can still come home and trade. It is a great way to start out, paper trade build up confidence start achieving financial success then you can leave your current job.

* It doesn't matter what the market is doing as you can just as easy go long (buy currency) or go short (sell currency) so there is never a bad time unlike buying stocks. The liquidity means that you have no problem selling.

* You don't need thousands to start. The reason that you don't need massive bank balance is because you can use leverage, in some cases you can get 400:1 so if you have $1000 you can leverage that into $400,000, which can make for great profits. Also you don't pay brokerage or commissions. If you are looking for a great Forex Broker feel free to visit us and we can show you the best forex brokers in the markets.

* The market will never go broke. Unlike share trading where companies can collapse it is very unlikely to happen in Forex. Imagine if the USD was worth $0, so you can see very unlikely.

* If you are new to the foreign exchange market, you do not have to worry about spending thousands of dollars to learn or buy a course. There is online forex trading course that will explain how the forex market works and a forex tutorial will also explain about fundamental and technical strategies that are available to you as a forex trader.
* Work your own hours if you don't feel like trading then you don't have to, it will always be open tomorrow.

* To learn Forex Trading is very simple today all you need is a computer and forex broker

* To ensure that you can become successful in Forex Trading make sure that you get some education, as knowledge is power. You can start out learning online or through books it doesn't have to be through expensive course.

Online Forex Trading Strategies

Forex trading is very different from trading in stocks and using forex trading strategies will give you more advantages and help you realize even greater profits in the short term. There are a wide range of forex trading strategies available to investors and one of the most useful of these forex trading strategies is a strategy known as leverage.

This forex trading strategy is designed to allow online currency traders to avail of more funds than are deposited and by using this forex trading strategy you can maximize the forex trading benefits. Using this strategy you can actually utilize as much as 100 times the amount in your deposit account against any forex trade which will make backing higher yielding transactions even easier and therefore allowing better results in your forex trading

The leverage forex trading strategy is used on a regular basis and allows investors to take advantage of short term fluctuations in the forex market.

Another commonly used forex trading strategy is known as the stop loss order. This forex trading strategy is used to protect investors and it creates a predetermined point at which the investor will not trade. Using this forex trading strategy allows investors to minimize losses. This strategy can however, backfire and the investor can run the risk of stopping their forex trading which could actually go higher and really is up to the individual trader to choose whether or not to use this forex trading strategy.

An automatic entry order is another of the forex trading strategies that is commonly used and this strategy is used to allow investors to enter into forex trading when the price is right for them. The price is predetermined and once reached the investor will automatically enter into the trading.

All these forex trading strategies are designed to help investors to get the most from their forex trading and help to minimize their losses.

FOREX Trading without Indicators

When it comes to trading most professional traders will be trading with indicators, so when most people hear that someone is trading with out them there is an instant look of bewilderment. To them it sounds like driving in the dark with no lights. But in fact it is the opposite.

So to people that trade without indicators they have to same reaction to people that trade with 10 indicators on their charts in order to place a trade. They will view all of these indicators as causing a blind spot to what is actually going on in the market.

FOREX Traders have been trading without indicators for as longs as the market have been around. This is what is simply known as price action. This particular trader is looking at the chart, looking at the current prices movements, comparing it to past price action movements to predict future price movements. So in simple terms everything we need know is sitting there right before our eyes, without the block of needless indicators.

Here is an example, within the FOREX Market there are certain patters that will be repeated on a constant basis. They are predictive in nature, as opposed to indicators like and RSI or MACD which are always lagging. They are only telling us what has already in happened. Anybody can be a millionaire if they only tell you what has happened already. The real skill is using past information to make an informed decision about what the future holds. Trading without indicators is as close as we'll ever get to being a FOREX Trading psychic.

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