forexvisionst

forex signal

2009-09-15T00:57:00.000-07:00

Strignanos Forex Signals Tom Strignano Creator Of Head Fake Filter Starts A Forex Signal Service
Try Strignano Forex Signals for two weeks free and see the results yourself...

FOR IMMEDIATE RELEASE
PRLog (Press Release) – Aug 18, 2009 – This is what Tom Strignano says about his Head Fake Filter, “You may have heard about the infamous "Head Fake Filter" it's one of my filters I've given out free before my last sold out $10,000 workshop. There were over 200 comments on the blog about it and we had tons of testimonials and you tube video testimonials about it producing KILLER gains quickly...In fact you can do a search on YOU TUBE for the term "Head Fake Filter" and some cool videos come up.

http://forex-or-stocks.blogspot.com/2009/08/strignanos-f ...

Traders of all levels were able to use this filter of mine to produce some very nice gains...(And the buzz has grown). I'm always getting begged to release this filter again to those who have heard about it but weren't able to grab it when it was available.. Stay tuned in the next few days as I have some surprises in store, and I'm going to let you in on a BIG SECRET about this filter that I know you're going to be shocked about”.

http://forex-or-stocks.blogspot.com/2009/08/strignanos-forex-signals.html

Tom has been the ex bank chief forex for 25 years. Recently he started his forex signals service that you need to take a look at:

http://forex-or-stocks.blogspot.com/2009/08/strignanos-forex-signals.html

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Mr. Ahmad Hassam has done Masters from Harvard University. He is interested in day trading stocks and currencies.

foreign exchange forex

2009-09-15T00:54:00.000-07:00

Presently, there are various kinds of financial market, it is divided into: Stock market, interest market (including bond, commercial bill and so on), gold market (including gold, platinum, silver), futures market (including grain, cotton and kapok, oil and so on), option market and foreign exchange market or forex market and so on.

The foreign exchange market is a place to trade foreign exchange currency, or it is also a place for the transaction of all foreign currency. The foreign exchange market therefore is existence, because of:

Trade and investment
Import and export business, people pays one kind of currency when doing business, but when earns another kind of currency when receive the commodity. This means that, when settling account, business people will pay and receive different currencies. Therefore, they must convert the currencies that they received into the currencies that they could buy commodities. With this similar, when buying a foreign property a company must use the concerned country's currency to make payment, therefore, it needs to convert the domestic currency is concerned country's currency.

Speculation
Currencies exchange rates could fluctuate according to the demand and supply between two currencies. A Forex trader buys up one kind of currency in an exchange rate, but up casts this currency in another more advantageous exchange rate, he may gain. Speculation has occupied most of the Forex market.

Hedging
Due to the fluctuation between two currencies, those companies who owns foreign asset (for example factory), when these companies convert these properties into cost country currencies, there consist of certain risks. When the value of a foreign asset which is estimated based on foreign currencies remained unchanged, if the exchange rate changes, when converting this property value according to the domestic currency, there could be profit and loss. The company may eliminate such hidden risk through hedging. This carries out a foreign currency trading, its transaction result just counterbalances the foreign currency property profit and loss which produces by the exchange rate change.

Forex Market Development
The history of the Forex market as an international capital speculation market is much shorter compared the stock, the gold, the stock, the interest market, but it is developing in an astonishing speed. Today, the foreign exchange market daily trading volume has amounted to 150 billion US dollars, it’s scale has gone far beyond the stock, the stock and other finance commodity markets, it has became the world's most biggest sole finance market and the also the speculation market. Since the birth of the foreign exchange market, the fluctuation of the exchange rate of the Forex market is becoming bigger. In September 1985, 1 US dollar exchanged 220 Japanese Yen, but in May 1986, 1 US dollar only could exchange 160 Japanese Yen, in 8 months, the Japanese Yen has revalued 27%. In recent years, the foreign exchange market wave amplitude has been bigger, on September 8, 1992, 1 pound exchanged 2.0100 US dollars, on November 10, 1 pound exchanged 1.5080 US dollars, in the short two months, the pound exchanged US dollar exchange rate to fall more than 5,000, depreciated 25%. Not only that, presently, everyday the fluctuation of the exchange rate of the Forex market enlarges unceasingly, within a day the rise and drop 2% to 3% is commonly seen. On September 16, 1992, the pound exchanged US dollar from 1.8755 to fall to 1.7850, the pound on first lowers 5%.

Due to the large fluctuation of the Forex market, it has created more opportunities for the investor, attracted more and more investors to join this ranks.

forex service

2009-09-15T00:53:00.000-07:00

Attention: Customers of erstwhile Centurion Bank of Punjab, Bank of Punjab and Lord Krishna Bank :

You are requested to start using HDFC Bank chequebooks.
Non - HDFC Bank cheques presented after 30th September 09 will be dishonoured. Request you to indent for new HDFC Bank chequebooks through the ATM, NetBanking, PhoneBanking or by visiting the nearest branch immediately.
Additionally, if you have issued any post - dated cheques that could be presented after 30th September 09, we request you to have the same replaced.

Are you a frequent flyer for business or often holiday abroad? Are you an importer/exporter of foreign and Indian goods?

If you need to deal in foreign currency and keep tabs on exchange rates every now and then, transfer monies to India, make payments etc., HDFC Bank has a range of products and services that you can choose from to transact smoothly, efficiently and in a timely manner.

We offer the following Foreign Exchange Products and Services.

Foreign Exchange and Trade Services
The following are different methods of transacting in Foreign Exchange and remitting money.
Travellers Cheques
Foreign Currency Cash
Foreign Currency Drafts
Cheque Deposits
Remittances
Cash to Master
Trade Services
Forex Services Branch Locator

forex strategies

2009-09-15T00:50:00.000-07:00

Forex scalping is a popular method involving the quick opening and liquidation of positions. The term “quick” is imprecise, but it is generally meant to define a timeframe of about 3-5 minutes at most, while most scalpers will maintain their positions for as little as one minute.

The popularity of scalping is born of its perceived safety as a trading style. Many traders argue that since scalpers maintain their positions for a brief time period in comparison to regular traders, market exposure of a scalper is much shorter than that of a trend follower, or even a day trader, and consequently, the risk of large losses resulting from strong market moves is smaller. Indeed, it is possible to claim that the typical scalper cares only about the bid-ask spread, while concepts like trend, or range are not very significant to him. Although scalpers need ignore these market phenomena, they are under no obligation to trade them, because they concern themselves only with the brief periods of volatility created by them.

Forex scalping is not a suitable strategy for every type of trader. The returns generated in each position opened by the scalper is usually small; but great profits are made as gains from each closed small position are combined. Scalpers do not like to take large risks, which means that they are willing to forgo great profit opportunities in return for the safety of small, but frequent gains. Consequently, the scalper needs to be a patient, diligent individual who is willing to wait as the fruits of his labors translate to great profits over time. An impulsive, excited character who seeks instant gratification and aims to “make it big” with each consecutive trade is unlikely to achieve anything but frustration while using this strategy.

Scalping also demands a lot more attention from the trader in comparison to other styles such as swing-trading, or trend following. A typical scalper will open and close tens, and in some cases, more than a hundred positions in an ordinary trading day, and since none of the positions can be allowed to suffer great losses (so that we can protect the bottom line), the scalper cannot afford to be careful about some, and negligent about some of his positions. It may appear to be a formidable task at first sight, but scalping can be an involving, even fun trading style once the trader is comfortable with his practices and habits. Still, it is clear that attentiveness and strong concentration skills are necessary for the successful forex scalper. One does not need to be born equipped with such talents, but practice and commitment to achieve them are indispensable if a trader has any serious intention of becoming a real scalper.

Scalping can be demanding, and time-consuming for those who are not full-time traders. Many of us pursue trading merely as an additional income source, and would not like to dedicate five six hours every day to the practice. In order to deal with this problem, automated trading systems have been developed, and they are being sold with rather incredible claims all over the web. We do not advise our readers to waste their time trying to make such strategies work for them; at best you will lose some money while having some lessons about not trusting anyone’s word so easily. However, if you design your own automated systems for trading (with some guidance from seasoned experts and self-education through practice) it may be that you shorten the time which must be dedicated to trading while still being able to use scalping techniques. And an automated forex scalping technique does not need to be fully automatic; you may hand over the routine and systematic tasks such as stop-loss and take-profit orders to the automated system, while assuming the analytical side of the task yourself. This approach, to be sure, is not for everyone, but it is certainly a worthy option.

Finally, scalpers should always keep the importance of consistency in trade sizes while using their favored method. Using erratic trade sizes while scalping is the safest way to ensure that you will have a wiped-out account in no time, unless you stop practicing scalping before the inevitable end. . Scalping is based on the principle that profitable trades will cover the losses of failing ones in due time, but if you pick position sizes randomly, the rules of probability dictate that sooner or later an oversized, leveraged loss will crash all the hard work of a whole day, if not longer. Thus, the scalper must make sure that he pursues a predefined strategy with attention, patience and consistent trade sizes. This is just the beginning, of course, but without a good beginning we would diminish our odds of success, or at least reduce our profit potential.

Now let’s take a look at the contents of this article where forex scalping is discussed with all its details, advantages and disadvantages. Our suggestion is that you peruse all of this article and absorb all the information that can benefit you. But if you think that you’re already familiar with some of the material, to shorten your route, we present the table of contents of this article.

Forex Taxation Basics

2009-08-30T02:37:00.000-07:00

For beginner forex traders, the goal is simply to make successful trades. In a market where profits - and losses - can be realized in the blink of an eye, many investors get involved to "try their hand" before thinking long term. However, whether you are planning on making forex a career path or are interested in seeing how your strategy pans out, there are tremendous tax benefits you should consider before your first trade. (For more, check out Forex: Wading Into The Currency Market.)
While trading forex can be a confusing field to master, filing taxes in the U.S. for your profit/loss ratio can be reminiscent of the Wild West. Here is a break down of what you should know.
For Options and Futures Investors
Forex traders specializing in options and/or futures are grouped in what are known as IRC 1256 contracts. These IRS-sanctioned contracts mean traders get a lower 60/40 tax consideration. What this means is 60% of gains or losses are counted as long-term capital gains/losses and the remaining 40% as short term. (For background reading
The benefits of this tax treatment are as follows:
* Time: Many forex futures/options traders make several transactions per day. Of these trades, up to 60% can be counted as long-term capital gains/losses.
* Tax Rate: When trading stocks (held less than one year), investors are taxed at the 35% short-term rate. When trading futures or options, investors are taxed at a 23% rate (calculated as 60% long-term times 15% max rate plus 40% short-term rate times 35% max rate).
For Over-the-Counter (OTC) Investors
Most spot traders are taxed according to IRC 988 contracts. These contracts are for foreign exchange transactions settled within two days, making them open to ordinary gains and losses as reported to the IRS. If you trade spot forex you will likely automatically be grouped in this category.
The benefits of this tax treatment are as follows:
* Loss protection: If you experience net losses through your year-end trading, being categorized as a "988 trader" serves as a large benefit. As in the 1256 contract, you can count all of your losses as "ordinary losses" instead of just the first $3,000.
Comparing the Two
IRC 988 contracts are simpler than IRC 1256 contracts in that the tax rate remains constant for both gains and losses - an ideal situation for losses. 1256 contracts, while more complex, offer more savings for a trader with net gains - 12% more.
The most significant difference between the two is that of anticipated gains and losses.
The Solution: Choosing Your Category Carefully
Now comes the tricky part: deciding how to file taxes for your situation. What makes foreign-exchange filing confusing is that while options/futures and OTC are grouped separately, you as the investor can pick either a 1256 or 988 contract. The tricky part is that you have to decide before January 1 of the trading year.
The two types of forex filings conflict but at most accounting firms you will be subject to 988 contracts if you are a spot trader and 1256 contracts if you are a futures trader. The key factor is talking with your accountant before investing. Once you begin trading you cannot switch from 988 to 1256 or vice versa.
Most traders will anticipate net gains (why else trade?) so they will want to elect out of their 988 status and in to 1256 status. To opt out of a 988 status you need to make an internal note in your books as well as file with your accountant.
This complication intensifies if you trade stocks as well as currencies. Equity transactions are taxed differently and you may not be able to elect 988 or 1256 contracts, depending on your status. (For another solution to tax issues, see Benefits Abound For Active Traders Who Incorporate.)
Keeping Track: Your Performance Record
Rather than rely on your brokerage statements, a more accurate and tax-friendly way of keeping track of profit/loss is through your performance record. This is an IRS-approved formula for record keeping:
* Subtract your beginning assets from your end assets (net)
* Subtract cash deposits (to your accounts) and add withdrawals (from your accounts)
* Subtract income from interest and add interest paid
* Add other trading expenses
The performance record formula will give you a more accurate depiction of your profit/loss ratio and will make year-end filing easier for you and your accountant. (For more, see Top 4 Things Successful Forex Traders Do.)
Things to Remember
When it comes to forex taxation there are a few things you will want to keep in mind, including:
1. Deadlines for filing: In most cases, you are required to elect a type of tax situation by January 1. If you are a new trader, you can make this decision before your first trade - whether this is in January 1 or December 31. It is also worth noting that you can change your status mid-year, but only with IRS approval.
2. Detailed record keeping: Keeping good records (and backups) can save you time when tax season approaches. This will give you more time to trade and less time to prepare taxes.
3. Importance of paying: Some traders try to "beat the system" and earn a full or part-time income trading forex without paying taxes. Since over-the-counter trading is not registered with the Commodities Futures Trading Commission (CFTC) some traders think they can get away with it. Not only is this unethical, but the IRS will catch up eventually and tax avoidance fees will trump any taxes you owed.

9 Tricks Of The Successful Trader

2009-08-30T02:33:00.000-07:00

For all of its numbers, charts and ratios, trading is more art than science. Just as in artistic endeavors, there is talent involved, but talent will only take you so far. The best traders hone their skills through practice and discipline. They perform self analysis to see what drives their trades and learn how to keep fear and greed out of the equation. In this article we'll look at nine steps a novice trader can use to perfect his or her craft; for the experts out there, you might just find some tips that will help you make smarter, more profitable trades, too.
Step 1. Define your goals and then choose a style of trading that is compatible with those goals. Be sure your personality is a match for the style of trading you choose.
Before you set out on any journey, it is imperative that you have some idea of where your destination is andow you will get there. Consequently, it is imperative that you have clear goals in mind as to what you would like to achieve; you then have to be sure that your trading method is capable of achieving these goals. Each type of trading style requires a different approach and each style has a different risk profile, which requires a different attitude and approach to trade successfully. For example, if you cannot stomach going to sleep with an open position in the market then you might consider day trading. On the other hand, if you have funds that you think will benefit from the appreciation of a trade over a period of some months, then a position trader is what you want to consider becoming. But no matter what style of trading you choose, be sure that your personality fits the style of trading you undertake. A personality mismatch will lead to stress and certain lossesStep 2. Choose a broker with whom you feel comfortable but also one who offers a trading platform that is appropriate for your style of trading.
It is important to choose a broker who offers a trading platform that will allow you to do the analysis you require. Choosing a reputable broker is of paramount importance and spending time researching the differences between brokers will be very helpful. You must know each broker's policies and how he or she goes about making a market. For example, trading in the over-the-counter market or spot market is different from trading the exchange-driven markets. In choosing a broker, it is important to read the broker documentation. Know your broker's policies. Also make sure that your broker's trading platform is suitable for the analysis you want to do. For example, if you like to trade off of Fibonacci numbers, be sure the broker's platform can draw Fibonacci lines. A good broker with a poor platform, or a good platform with a poor broker, can be a problem. Make sure you get the best of bothStep 3. Choose a methodology and then be consistent in its application.
Before you enter any market as a trader, you need to have some idea of how you will make decisions to execute your trades. You must know what information you will need in order to make the appropriate decision about whether to enter or exit a trade. Some people choose to look at the underlying fundamentals of the company or economy, and then use a chart to determine the best time to execute the trade. Others use technical analysis; as a result they will only use charts to time a trade. Remember that fundamentals drive the trend in the long term, whereas chart patterns may offer trading opportunities in the short term. Whichever methodology you choose, remember to be consistent. And be sure your methodology is adaptive. Your system should keep up with the changing dynamics of a market. (For related reading, see What is the difference between fundamental and technical analysis and Blending Technical And Fundamental Analysis.)
Step 4. Choose a longer time frame for direction analysis and a shorter time frame to time entry or exit.
Many traders get confused because of conflicting information that occurs when looking at charts in different time frames. What shows up as a buying opportunity on a weekly chart could, in fact, show up as a sell signal on an intraday chart. Therefore, if you are taking your basic trading direction from a weekly chart and using a daily chart to time entry, be sure to synchronize the two. In other words, if the weekly chart is giving you a buy signal, wait until the daily chart also confirms a buy signal. Keep your timing in sync.
Step 5. Calculate your expectancy.
Expectancy is the formula you use to determine how reliable your system is. You should go back in time and measure all your trades that were winners versus all your trades that were losers. Then determine how profitable your winning trades were versus how much your losing trades lost.
Take a look at your last 10 trades. If you haven't made actual trades yet, go back on your chart to where your system would have indicated that you should enter and exit a trade. Determine if you would have made a profit or a loss. Write these results down. Total all your winning trades and divide the answer by the number of winning trades you made. Here is the formula:
E= [1+ (W/L)] x P – 1
where:
W = Average Winning Trade
L = Average Losing Trade
P = Percentage Win Ratio
Example:
If you made 10 trades and six of them were winning trades and four were losing trades, your percentage win ratio would be 6/10 or 60%. If your six trades made $2,400, then your average win would be $2,400/6 = $400. If your losses were $1,200, then your average loss would be $1,200/4 = $300. Apply these results to the formula and you get; E= [1+ (400/300)] x 0.6 - 1 = 0.40 or 40%. A positive 40% expectancy means that your system will return you 40 cents per dollar over the long term.
Step 6. Focus on your trades and learn to love small losses.
Once you have funded your account, the most important thing to remember is that your money is at risk. Therefore, your money should not be needed for living or to pay bills etc. Consider your trading money as if it were vacation money. Once the vacation is over your money is spent. Have the same attitude toward trading. This will psychologically prepare you to accept small losses, which is key to managing your risk. By focusing on your trades and accepting small losses rather than constantly counting your equity, you will be much more successful.
Secondly, only leverage your trades to a maximum risk of 2% of your total funds. In other words, if you have $10,000 in your trading account, never let any trade lose more than 2% of the account value, or $200. If your stops are farther away than 2% of your account, trade shorter time frames or decrease the leverage. (For further reading, see Leverage's Double-Edged Sword Need Not Cut Deep.)
Step 7. Build positive feedback loops.
A positive feedback loop is created as a result of a well-executed trade in accordance with your plan. When you plan a trade and then execute it well, you form a positive feedback pattern. Success breeds success, which in turn breeds confidence - especially if the trade is profitable. Even if you take a small loss but do so in accordance with a planned trade, then you will be building a positive feedback loop.
Step 8. Perform weekend analysis.
It is always good to prepare in advance. On the weekend, when the markets are closed, study weekly charts to look for patterns or news that could affect your trade. Perhaps a pattern is making a double top and the pundits and the news are suggesting a market reversal. This is a kind of reflexivity where the pattern could be prompting the pundits while the pundits are reinforcing the pattern. Or the pundits may be telling you that the market is about to explode. Perhaps these are pundits hoping to lure you into the market so that they can sell their positions on increased liquidity. These are the kinds of actions to look for to help you formulate your upcoming trading week. In the cool light of objectivity, you will make your best plans. Wait for your setups and learn to be patient. (For information on determining what the market's telling you, read Listen To The Market, Not Its Pundits.)
If the market does not reach your point of entry, learn to sit on your hands. You might have to wait for the opportunity longer than you anticipated. If you miss a trade, remember that there will always be another. If you have patience and discipline you can become a good trader. (To learn more, see Patience Is A Trader’s Virtue.)
Step 9. Keep a printed record.
Keeping a printed record is one of the best learning tools a trader can have. Print out a chart and list all the reasons for the trade, including the fundamentals that sway your decisions. Mark the chart with your entry and your exit points. Make any relevant comments on the chart. File this record so you can refer to it over and over again. Note the emotional reasons for taking action. Did you panic? Were you too greedy? Were you full of anxiety? Note all these feelings on your record. It is only when you can objectify your trades that you will develop the mental control and discipline to execute according to your system instead of your habits.
Bottom LineThe steps above will lead you to a structured approach to trading and in return should help you become a more refined trader. Trading is an art and the only way to become increasingly proficient is through consistent and disciplined practice. Remember the expression: the harder you practice the luckier you'll get.
by Selwyn Gishen, (Contact Author | Biography)
Selwyn Gishen is a trader with more than 15 years of experience trading forex and equities for a private equity fund. For the past 35 years, he has also been a student of metaphysics, and has written a book called "Mind: How Changing Your Mind Can Change Your Life!" (2007). Gishen is the founder of FXNewsandViews.Com and the author of a forex trading guide entitled "Trading the Forex Markets: A Foundation Course for Online Traders". The course is designed to provide the trader with all the aspects of Gishen's Fusion Trading Model.

Professional Tutor by Forex Worldwide Training and Support

2009-08-26T01:12:00.000-07:00

There are plenty of self-selected experts online promoting their secret method to succeeding in the world of investing. A careful look at this market, however, reveals a tragic truth: These are the same old stories retold by hucksters looking to earn a buck. They jump on a particular stock that did well, they “reverse engineer” the trend line, they have their system ghostwritten, and then they promote “a forex training system like you’ve never seen before”.
The problem is we’ve seen it before. Again and again. It’s not a training system; it’s a focus on one part of technical analysis or another (often by people who don’t know the definition of technical analysis). They throw around words like “Fibonacci” or “Bollinger Bands” as if they themselves invented the term.
The tragedy is that “newbie” investors can get sucked in to the promises of huge earnings. They shell out for the ebook. And they’re left confused or overly-confident. Either way, they lose.
How does one succeed in the market? The truth of the matter is, one can succeed with solid, foundational forex training, and then back up that training with support and advice from real trading professionals, and then back up that training and that support with experience.
That’s where VIRT® Professional Tutor by Forex Worldwide Training and Support comes in. In a world of “me-too” content, VIRT® Professional Tutor is real forex training. This organization ignores the hype and instead focuses on doing one thing really, really well. They offer comprehensive, competent training delivered in a compelling way.
Their forex training is comprehensive and competent because it gives every level of investor a place to start. Are you brand new to forex investments? There’s a novice section. Are you experience in forex investments? There’s an advance section. Each section covers a wealth of material that truly takes the learner on a journey from basic introductions, step-by-step through the concepts.
Forex training for novices at VIRT® Professional Tutor is made up of 6 modules covering such diverse but fundamental topics as Market Terminology, Business Environment, Predictability, Capital Management, Probability Study, and Application of Entry Point System. Each module contains 5 to 9 lessons that look at that topic in-depth. Each lesson ends in a quiz to help the student uncover the effectiveness of their learning.
Forex training for advanced investors at VIRT® Professional Tutor is made up of 4 modules covering expert topics like Advanced Fibonacci, the Rule of 8, Fundamentals, and System Development. Again, each module contains several lessons and finishes with a quiz.
This material is compelling in its delivery. There’s text, of course, and interspersed throughout the text are videos and interactive content – including graphics and graphical stories – to explain the concepts and illustrate with real world examples. The text talks about a concept and then a graph is shown to demonstrate an example in real life and to drive home the point.
This level of training enables investors of all backgrounds and investing experiences to enter markets confidently and to exit investments profitably. But to back up their training, a support forum is also available where investors can interact and where expert traders can offer advice, guidance, and mentorship to participants.
Summary
VIRT® Professional Tutor provides high-quality, peerless forex training for novices and advanced investors alike. They package powerful, real world content into a dynamic and compelling interface, which promotes understanding and application. Not only that, they back up their training with support in a forum that connects experts with novices and shares the wealth of knowledge available.

Power Forex Profit Principles

2009-08-26T01:02:00.000-07:00

One of the top online trading mentors has just released a landmark Forex report that's not only going to ruffle some feathers...

...it's going to challenge everything that 90% of most Forex traders hold to be true.

So if you have ANY interest in discovering how to ride the "coat tails" of the big banks to maximize your "pip potential", you're in for a TREAT.

** How to "shake out" the good Forex brokers from the unscrupulous ones. Many brokers won't be prepared when you ask them these 5 questions (page 12).

** His "insiders formula" on how to determine the best mix of technical indicators to use when trading Forex pairs (page 23).

** Step-by-step tactics for applying his "Optimal Profit Exit Strategy". This is one of his favorite ways to enjoy profit- taking as quickly as possible (page 32).

** How he was able to drastically reduce his "time in the trenches" trading Forex by spending only 20 minutes a day. These 2 discoveries made it all possible

Starting To Trade On Forex

2009-08-26T00:54:00.000-07:00

Whenever you start doing something new, you should learn the basics of it. Every start is hard and needs a lot of dedication, but if you are willing to learn success will come in time. So, before starting to trade on the Forex you should learn the very basics. I recommend that you check out Forex-Training. It provides high quality training and educational resources for foreign exchange ("Forex") and commodity traders. They also give you a free account which you can use to practice before starting to invest real money.
Even if you’re an active trader in stocks, you may not be prepared to invest in forex, or the foreign exchange market. Forex trades 24 hours a day from 5:00 p.m. ET on Sunday until 4:00 p.m. ET Friday, so you won’t hear those opening or closing bells. And, there’s no central market like the New York Stock Exchange or Nasdaq. Instead, trade is conducted between participants through electronic communication networks (ECNs) and phone networks in various markets around the world. So, when you hear that the US dollar closed at a certain rate, it simply means that was the rate at market close in New York. But currency continues to be traded around the world long after New York’s close.
But, like securities, traders can go long or short and they can make a profit or lose money. As with stocks, it’s best to conduct some research into how the forex market works before you begin to trade. After you understand how the forex market works, you can begin to build a trading strategy.
The following list contains 37 tutorials, tools, and resources that will help you get started with investments in forex. If you’ve traded on any stock exchange in the past, some of these tools might feel or appear familiar, but they may have a new twist. The resources listed below were chosen for their clarity and simplicity as well as for their reputation.
Getting Started
First i have to recommend to you this great Forex eBook completely free. I'm sure you will find a lot of useful information here which will help you start and also maybe help you choose your first online broker.
The following information is for the forex beginner, but even intermediate-level forex traders might pick up a tip or two from these sites:
Baby Pips - A pip is the smallest unit of price for any foreign currency, so "baby pips" is a bit redundant. But you won’t find any redunancy on this site. Skip the news on the front page for now and go straight to the School of Pipsology that holds a complete course for beginners. If you walk through all the lessons contained on this site, you’ll have a solid basic forex education under your belt.
Forex Glossary - Although the previous tutorial might help you to understand some forex terms, this glossary is a great tool to have on hand for future reference. You’ll see some familiar terms here, like "selling short" and "limit order," and you’ll learn that they mean the same as they do when you use them for trading securities. But, you’ll also find new terms like "big figure" and "two-way price," terms that will set you apart as a forex trader.
Investopedia - This online financial encyclopedia contains an extensive 10-part article on forex investing, from an introduction to a recap that covers everything from benefits and risks to technical analysis. If you can’t get enough of Investopedia’s information, head to their Forex index, where you can find a list of articles and an opportunity to download their free e-Book entitled, "High Probability Trading Setups for the Currency Market."
National Futures Association(NFA) - Now that you have a basic understanding about forex markets, visit the NFA to learn how to build a sound forex strategy. The NFA is "the premier independent provider of efficient and innovative regulatory programs that safeguard the integrity of the derivatives markets," which basically means that this organization regulates any market that depends upon future cash flows. The "investor information" section contains materials about how to find a broker and basic lessons in forex trading. Plus, they publish forex warnings, news, and they offer a place for investor disputes and complaints.
Commodities Futures Trading Commission(CFTC) - The CFTC operates along the same lines as the SEC (Securities and Exchange Commission), except this government organization focuses on protecting market users and the public from fraud in the futures and option markets. So keep this site handy to stay on top of any forex scams through their Consumer Advisory on Forex Fraud. You can learn quickly what to avoid in your learning curve through a detailed forex advisory that offers information about other resources as well.
Martket Traders Insitute (MTI) - You don’t need to spend a lot of money to train in forex markets. Even MTI offers free resources such as videos and lesson plans that will help you get off the ground. If you like what you hear and see, you can invest in materials for the advanced trader down the road.
Learn about Currency
If you’re going to trade something, you better know what it is you’re trading. These currency sites will help you get up to speed on foreign currency exchange and markets.
Exchange Rate - Skip the top link box, as those links will take you to FXCM (Forex Capital Markets — see #13 and #33). Instead, try out the "hot" and "currency info" links that provide information about everything you’d want to know about worldwide currencies for 170 countries. Includes calculators, fun facts, serious facts, and more.
Oanda - With a free registration you can access customizable currency tools, including calculators and foreign exchange data. If you don’t register you can still access currency exchange tools that are great items for instant information, especially for travelers, let alone forex investors. The Traveler’s Cheat Sheet is indispensable for money-conscious globetrotters.
GoCurrency - This site offers a powerful and accurate currency converter, but don’t stop there. Learn about currencies by country, currency forecasts, and gather insights on foreign investments.
The Euro - Confused about the Euro? Over 13 European Union countries now use the Euro, and this Web site, brought to you by the European Commission, will teach you everything you want to know about this currency. But the Euro represents just one currency among hundreds. Which leads me to my next point…
List of Currencies - This is an extensive list provided by Wikipedia that covers everything from ancient coinage to the current Yen. As with most Wikipedia lists, you might run across a link or two that doesn’t contain information. But, you can use that information to search elsewhere if needed.
Get the News (other sites beside this blog)Once you’ve learned the basics, the next best thing you can do before you begin to trade is to read up on forex information via traditional financial news sites and blogs. Use the tutorials listed above during this process so that you can grasp the language and learn the strategies involved in any reporting. Take advantage of forums or chats offered by these resources to ask questions:
Action Forex - This site offers an easy-to-read layout that includes news, insights, fundamentals reports, calculators, and tons of other forex resources.
Daily FX - An easy-on-the-eyes news source that offers a calendar, charts, and a forum. Sponsored by FXCM, this site offers a free weekly trading lesson and free quarterly outlook reports. You must be an FXCM client to access the market commentary, but the other "free" news offers a great resource for learning and for staying on top of forex news.
Forex Reader - The Forex Reader is a popular blog that offers updates on financial headlines relegated by currency. It also serves as a resource for individuals seeking a Houston trucking accident attorney along with other legal and financial information.
Forex News - Like most of the sites listed here, Forex News offers more than news. Checkout their forums, their technical news, and their educational and research materials while you’re there. Register for free to take full advantage of the site’s resources, including a chat feature.
FXStreet - Global Forex Trading (GFX) sponsors this forex news site. Use the forums, chats, strategies, techniques, and trading tools to get a feel for forex. Additionally, several bloggers share their insights, including Wayne McDonell’s FX Boot Camp Training Videos (visit his FX Bootcamp site).
Profiting with Forex Blog - You might discover that this newsworthy blog is part of the network, "Profiting with Forex." The blog is interesting, but the backend reports, podcasts, and commentary at the "Profiting" site might appeal to you more.
The Forex Project - Lessons learned first-hand from a forex trader. This site has an unbelievably long list of topics, along with news about the blogger’s personal trading experiences, calculators, charts, news, and a perspective on forex psychology.
Participate in Forums
Speaking of forums, here are a few specific resources where you can tap into information from around the world that may help to answer your questions about forex trading and markets. Be aware that individuals who want to sell their ideas visit these forums, just like any other forums. But, you’ll find a wealth of valid information here as well.
MoneyTec - With over 33,000 members, this traders’ forum offers a format to discuss trading ideas, share, learn, and build new trading techniques and strategies.
Global View Forums - Another free forum that’s been around since 1996. This one focuses solely on forex. You must register to participate.
Forex Factory Forum - You’ll find a Forex Beginner Q&A section as well as topics that focus on specific strategies and techniques. Free to register.
Learn Strategies
You’ll discover that some forex traders use Fibonacci (Fib) methods, and that others rely on current financial news to divine futures. There are as many strategies as personalities in the forex market, but — like the stock market — they rely either on fundamental or technical analysis. The following contains a mix of the two:
Fibonacci Lesson - Don’t know much ’bout arithmetic, Fibonacci numbers, or the Golden Section? This tutorial, offered by Dr Ron Knott from the Mathematics Department of the University of Surrey, UK will provide results. Simple to use, easy to understand, and filled with illustrations to help you learn why some numbers are so important to nature. Interstingly, these numbers are also of vast interest to many forex investors.
Fibonacci Forex Indicators - Forex Planet will begin to show you how to apply Fibs to forex in this easy-to-understand lesson. But, the lesson is short, so you might try the next resource as well.
Mini-Lesson on Fibonnaci - This lesson also applies to forex, and it offers a short tutorial on applications along with a downloadable Fib calculator.
Intro to Japanese Candlestick Charting - Altavest provides a short and succinct introduction to Japanese candlestick charting, another method that forex traders use to graph charts.
Candlestick Patterns - If you like the Japanese candlestick methodology, this site will thrill you. Extensive patterns are illustrated graphically from basic to single patterns and reversal to continuation formations. This entire site offers some great information on techniques and strategies beyond the candlestick information, so take some time to look around while you’re here. Basically, this site has it all as far as technical analysis goes.
Fundamentals of Forex - Forex TV brings you the lowdown on what type of news would affect forex from a fundamental standpoint. You can use the information on this list to conduct further research, but I’ll bring a few of those topics to you now…
Consumer Price Index (CPI) - The US Department of Labor offers a ton of information just on this page alone through their links. But, the CPI is often influenced by many other factors. If you’re a fundamentalist, you might want to tag this next link for further research as well…
Bureau of Economic Analysis (BEA) - Don’t play around with someone else’s opinions. Get the straight stuff from the US Department of Commerce like the pros. Everyone from the White House staff to US Trade Commission employees to trade policy officials who want to negotiate international trade agreements uses the measurements contained on the BEA Web site. Why should you be left out of this information resource?
Use Charts
Charts offer visual validation for technical strategies, but they also reflect fundamental behaviors in the market. Even if you’re a seasoned securities trader, you might want to learn more about the psychology behind forex trading. If you can read all sorts of charts inside and out, you’ll have the forex advantage.The Law of Charts - Joe Ross offers advice for traders across the board, but the information contained in his "Law of Charts" offer speaks to forex as well as any other trading strategy. He identifies chart patterns that result from human behaviors and points to entry and exit targets on those charts. You can take advantage of Ross’s other tools as well, including the forum.
Forex Charting 101 - A brief and basic overview of forex charts from Pip Trader. You’ll discover that the charts are very similar to those that you might use for securities trading. But, some of the charts may seem more complicated if you’re not a seasoned trader.
Free Forex Charts - There’s no reason for me to push you into using a specific chart. Instead, I’ll point you to a short list of free forex charts that you can use for practice. When you’re ready to begin trading, take a look at their lists of premium and system trading charts for professional use. The lists contain ratings and reviews, visuals, features, and tips and tricks for individual charts.
FXCM - Although I don’t advocate specific brokers in this article, when you visit brokerage sites make sure that you take advantage of any free information offered by those businesses. In this instance, Forex Capital Markets offers tons of information about forex trading, and you can sign up for a risk-free 30-day practice account to get your feet wet. Forex.com and several other brokerage sites also offer this free account service. Be aware that when you sign up for these services that you’ll be added to a mailing list. You can opt out of these lists, but read any other pertinent information to make sure that you’re not obligated to purchase anything from any brokerage that you use for services such as this one.
Other tools
The tools listed below are "sidebars" to all the information listed above. I’ll cut you loose on the last two sites, as they contain just about every site you’d might want to access for more forex information:
Live Forex Rates - You might recognize the GFT logo behind the rates, but don’t let that distract you from the constantly changing figures. If you’re addicted to live feeds, you’ll be mesmerized by the constantly changing currency
rates on this chart.
A Free Book about Forex - This book is truly free, as you don’t need to register to access the PDF file. A forex trader offers information about all the mistakes he made as he learned how to develop his own forex strategy. Short and easy to read, this little book will bring some insights into how to avoid some pitfalls in the forex markets.
Top 100 Forex Sites - Although these sites are rated by popularity and, therefore, subject to rating scams, you can learn much from the sites that are listed simply from the variety of information that’s offered here. Many sites are brokerage firms, but as I mentioned previously you can find free information on many of these sites such as news, calculators, techniques, and more.Earn Forex - A link exchange/directory for other forex sites. Unlike the "Top 100" site listed previously, Earn Forex doesn’t rate their links. But, you will also find much different information here than at the previous site. Additionally, the links are sorted by categories, which makes it easier to find what you need. In addition, you’ll find other tools here like calculators, articles, and a forex FAQ and glossary.
There are many other sites that I could list for your forex training, but my next suggestion is to head to your local library and read some books about forex trading. If you find an author or two who are to your liking, begin to study their techniques and strategies both through their books and on the Internet. If you share your information and questions on forums, you might find a mentor who will help you learn how to strategize and to use charts and fundamentals to your advantage as well.
Forex trading isn’t learned overnight; so don’t feel inadequate if you can’t grasp the fine points immediately. You can’t lose by learning more about how world economies work. The information that you gather in your search for forex training will make you a better trader no matter which markets you prefer to use.

What is Forex?

2009-08-26T00:52:00.000-07:00

If you would go out on a dinner with your friends or family and you mentioned that you were trading on the Forex market most of them wouldn’t know what you were talking about. The worst thing is that most of the Forex traders that join the Forex market don’t know what they are doing. Understanding what Forex is, is the first good step to your success at Forex trading.
The foreign exchange market (Currency, Forex, or FX) is where currency trading takes place. It is where banks and other official institutions facilitate the buying and selling of foreign currencies. Forex transactions typically involve one party purchasing a quantity of one currency in exchange for paying a quantity of another. The foreign exchange market that we see today started evolving during the 1970s when world over countries gradually switched to floating exchange rate from their erstwhile exchange rate regime, which remained fixed as per the Bretton Woods system till 1971.
Today, the Forex market is one of the largest and most liquid financial markets in the world, and includes trading between large banks, central banks, currency speculators, corporations, governments, and other institutions. The average daily volume in the global foreign exchange and related markets is continuously growing. Traditional daily turnover was reported to be over US$3.2 trillion in April 2007 by the Bank for International Settlements. Since then, the market has continued to grow. According to Euromoney's annual Forex Poll, volumes grew a further 41% between 2007 and 2008.
Main foreign exchange market turnover, 1988 - 2007, measured in billions of USD. The purpose of Forex market is to facilitate trade and investment. The need for a foreign exchange market arises because of the presence of multifarious international currencies such as US Dollar, Pound Sterling, Yen, etc., and the need for trading in such currencies. Since you aren’t buying anything physical this kind of trading can be confusing. When buying a currency think of it as buying a part in that particular country’s economy because the currency rate reflects the economical situation of the country when compared to others.
Currencies
List of most popular currencies on the Forex market
Forex used to be a closed market because only the “big boys” because you needed between 10 and 50 million $ to open an account. But today, with the development of internet, online Forex brokers have the possibility to offer their services to “little” traders. All you need to start is a computer, fast internet connection and information which you can find on this page also.
This enormous market is like the dangerous sea where you can meet lots of sharks and dangerous waters but at the same time it is the only one where two weeks of trading can hypothetically bring you $1,000,000 out of $1,000 of initial investment.
This is certainly hypothetically because a lot of newbie traders deal with their trades as gambling, that surely bring them to having nothing in the end. You should always keep the phrase "be careful!" in your mind. This market would give you its profit possibilities only if you learn the basic things hard and make lots of demo trading.
The statistics is that as much as 95% of traders come to losing their money at Forex, 5% have profit and less than 1% of traders make large fortune at Forex. You shouldn't produce, sell or advertise anything trading at Forex. Your assets are your knowledge, experience and a small amount of cash.
This market is a platform for banks, transnational corporations and individual traders to change the currencies they possess into other ones. This is the spot Forex market. At this market you can trade with up to 1:400 leverage which means that you'll get $400 on your account for each dollar invested. So, you can trade with the $400,000 sum having invested $1,000 onto your account.
Forex is unique among other world markets because in any time of day and night, somewhere in the world, a financial centre is open for business, banks and corporations exchange currency all the time, with a little lower frequency during the weekend.
Why to trade on Forex?
1. There is no commission fee for trading at Forex.
2. There is no intermediary, you can trade directly at Forex.
3. Forex is open 24-hours a day.
4. Nobody can influence the market for a longer period.
5. High liquidity.
6. Free demo accounts, analysis and charts.
7. Small accounts that allow everyone to try out his luck.
Hope this has answered a lot of questions you were asking yourself about Forex and that you can now start trading. Also make sure that you check out other articles on this blog which can help you earn your fortune.
Good luck to everyone!

How to Calculate Rollover Interest?

2009-08-26T00:49:00.000-07:00

In the Foreign Exchange Market or Forex market, Rollover is a method of stretching the arranged clearing date or what is known as the settlement date of an open position. Mostly, in common currency trades, trades ought to be completed in two business days and traders who wish to stretch their positions with no intention of settlement must close their positions before 5:00 in the afternoon Eastern Standard Time on the date of settlement day, plus re-opening of them the next trading day. This means by rolling over the position, this at the same time closes the existing positions at the daily close rate and again coming into a new opening rate at the next trading day. This precisely means that the trader is indirectly extending the settlement day by one more day.
This is also known as tomorrow next strategy, it is functional in forex due to many traders have no purpose of getting delivery of the currency they buy but instead they have the intention of getting profit from fluctuating exchange rates. Since rollovers shove out the settlement by another two trading days, it may cause a gain or a cost to the trader depending on the existing rates.
Apparently, Rollover is when you reinvest funds from a mature security into a new issue of the similar security or same security. You are transferring the holdings of one retirement plan to another without the agony of tax effects. Plus a charge is incurred by Forex investors who extend their positions on the following delivery date.
Rollover interest is the net effect of the money borrowed by an investor to purchase another currency and such interest is paid on the borrowed currency and earned on the purchased currency. To calculate this interest, you should get the short-term interest rates on both currencies, the existing exchange rate of the currency pair and the number of the currency pair purchased. For instance, an investor possesses 15,000 CAD/USD. The present rate is 0.9155, the short term interest rate on the Canadian dollar (base currency) is 4.50% plus the short term interest on the US dollar (quoted currency) is 3.75%, so the interest would be $33.66 [{15,000 x (4.50% - 3.75%)} / (365 x 0.9155)].
If on the contrary, the short term interest rate on the base currency is lower than the short term interest rate of the borrowed currency, the interest rate would result into a negative number which may reduce the value of the investor’s account. Such interest can be avoided by taking a closed position on the currency pair. If an option is about to expire is quite favorable to grip, you can either buy or sell the later expiring option. Always note the interest rate that is paid by a currency trader or he may received in the course of these forex trades is considered by the IRS as ordinary interest income or expense. For taxation, the trader of the currency should always keep track the interest received or paid, separate from regular trading gains or losses.

USD / JPY Technical Forex Analysis for Forex Traders

2009-08-26T00:44:00.000-07:00

It was a mixed day yesterday with several whipsaw moves. This movement could quite possibily continue in this region as there is indecision on the direction, with aggresive moves up and down but not within a set range.

Support is at 93.80 with moves below gravitating towards 93.40 and beyond 93.10.

A rise above 94.25 is likely to test swing highs at 94.60 and beyond that, 95.00.

Forex Analysis by Cory Mitchell at ForexPros. com. For more details about Forex Trading and Tips for decent earnings through Forex Trading, Please check Forexpros. com

Forex Course

2009-08-26T00:31:00.000-07:00

One thing I don't really do on this blog is talk about the basics of forex trading. I automatically assume most of my readers have a general understanding of how the forex markets work. However if you are looking for an entry level forex trading course, there is one course that I can highly recommend.
It's called Forex Nitty Gritty and despite the dubious name, it's actually a very impressive course.
This course assumes you have no prior knowledge of forex trading and starts right at the beginning. Through a series of online videos you will learn all the basics of forex trading. You will also be taken through out some of the more advanced subjects such as how you can use price patterns, fibonacci techniques and various different technical indicators to trade the markets. In short you are basically given a complete education in forex trading.
Furthermore if that wasn't enough you are also provided with a simple, but very effective trading method that you can use to trade the markets. I use this method quite a lot myself on the intraday time frames and it works very well because it gets you into a trade whenever a currency pair is trending strongly upwards or downwards, so the odds are always stacked in your favour.

What Is The Difference Between Forex and Futures

2009-08-14T07:48:00.000-07:00

1. A Forex trader could trade more transaction compared to the futures market (the trading volume could be a times larger), and the risk will be strictly under control. The trading volume of the Forex market is 46 times larger compared to the futures market, moreover Forex traders could make more profit from the Forex market due to the larger trading volume (the transaction volume is a few times larger), the REFCO Switzerland rich transaction platform allowed transaction between 1-100 times to be carry on, moreover a Forex trader could decide his or her own transaction amount, for example: Your account has $30,000, the basic transaction unit is each $1,000 (which transaction amount in $1.00, million), namely, so the proportion of the margin of each transaction unit is 100:1.
2. The risk of the Forex trader is under control, such margin call will not happen compared to futures, through the Forex trading system, your risk will receive the strict limit, even if your margin if lower then the deposit required, the Forex trading system will automatically settle your position, this means even if a Forex trader suffered losses, moreover if the market is suffering from a disaster fluctuation, your loss could not surpass your account amount. In order to understand the advantages, please apply for the demo account to carry on the complete zero risk.
3. A Forex trader will receive a large limitation of liquidation and a relatively fair market because the trading volume of the Forex market is large and it is also the largest liquidation market in the world. At present the trading volume in the Forex market is 140 billion Dollars, such big market will completely digest your transaction cash.
4. A Forex trader may do 24 hours transactions and other markets are different, the Forex market is a 24 hour linkages market, it starts from every Sunday before dawn Australian Sydney market, substandard collect the transaction center Singapore, Tokyo, London, Frankfurt to New York continuously to open, such linkage market enable you to do 24 hours transactions, also provide flexibility for Forex trader to do transaction.

The Best Time to Trade The Forex

2009-08-14T07:44:00.000-07:00

We all know by now that forex is a highly dynamic market with lots of price swings in a single minute. This characteristic allows you to enter the market many times a day and gain some profit from the trades.

You can easily find out an appropriate time to enter into the forex market when the activity or the volumes of transactions are the highest. When we consider the working hours of the market, we must remember three facts:

* There are three major markets -- London, New York, and Tokyo

* The working hours are throughout the day – it starts from Sunday 5pm (EST) through Friday 4pm (EST).

* Like any other active markets, there are good times and bad times to trade in forex also. Choosing to trade when the market is at its best can increase productivity and generate significant financial benefits. It will be wise to assume that trading intermittently throughout the day will produce the best results.

Forex Trading activities are found to be heaviest when major markets overlap. Statistics says, nearly two-thirds of New York activity occurs in the morning hours when European markets are also open. So you can figure out that at any given time, somebody somewhere in the world is buying and selling currencies.
Free Forex Newsletter
Forex Trading Offers Fantastic Liquidity

The great liquidity offered by the forex trading and a market that is open for five and a half days a week offers you an exceptional array of choices to trade when you want.

But the volume of transactions reaches its peaks when the major market hours overlap -- the time when Asian market including Australia & New Zealand, the European market and the U.S. market are open simultaneously.

A typical trading day starts with New Zealand, before moving across to Australia, Japan and Asia, Europe and North America. The UK and the US markets account for around half of the total world market, therefore the times at which both are open are particularly busy.

Let’s find out quickly what are the overlapping timings:

* New York Market trade times: 8am - 4pm EST
* London Market trade times: 2am - 12Noon EST
* Great Britain Market trade times: 3am - 11am EST
* Tokyo Market trade times: 8pm - 4am EST
* Australia Market trade times: 7pm - 3am EST

So there are two times when two of the major markets overlap during trading hours -- between 2am and 4am EST for Asian/European markets and between 8am to 12pm EST for European/U.S. markets.

The market is open 24 hours a day doesn’t mean that it is always active. You can make money when the market is moving up or when it is moving down. It will be very difficult to make profit when the market doesn’t move at all.
The Best Time to Trade The Forex
Forex Trading is Open 24 Hours a Day

From practical experience it has been found out that the session when the London market is open with any other major market, the volume of transaction and market movement reaches its zenith.

Another interesting fact is - from actual trading figures you can see that during the middle of the week (Tuesdays and Wednesdays) the movement of all major currency pairs reaches their highest.

Choosing the right time between the start and the end of the week can also make differences to your trading success. If you are operating outside America you may have to wake up extremely early to catch the European markets and end your day extremely late to catch the Asian market.

So the time for trading is as important as your strategy for trading. If you have some preoccupation for which you can not use these hours you can go for an automated platform for the execution of the trades.

This section should now have given you a very brief introduction to Forex trading online. If you click the 'Next' button below you will be taken to a section telling you how to receive a free 5 day mini Forex training course to help further your knowledge.

10 GOLDEN TRADING RULES FOR SUCCESS IN FUTURES & FOREX TRADING

2009-08-14T07:36:00.000-07:00

It is a well known fact that 90 percent of investors lose money in futures and forex trading, 5-7 percent break even and only 3-5 percent make money. Given the high casualty rate, it is all the more important for investors to approach futures and forex trading in the correct manner. Below are some of the rules that traders should consider following if he is to make money consistently in the futures and forex market:
RULE 1 : USE MONEY THAT YOU CAN AFFORD TO LOSE
Trade only with "extra" money, i.e, money that is not earmarked to pay bank loans, car installments, housing loans, telephone and electricity bills, etc. One of the major reasons for investing only with extra funds is that your trading judgment will remain objective.
RULE 2 : DON’T OVERTRADE
Inexperienced traders can easily become overconfident after a number of winning trades. This can lead to overtrading – which is dangerous. One can be right 7 times out of 10 but the three times that you are wrong can wipe you out if you had overgeared yourself because of overconfidence. Success comes from prudence in money management. Never overtrade.
RULE 3 : CUT YOUR LOSSES SHORT, LET YOUR PROFITS RUN
Learn to be very impatient with losing positions. Learn to resist the temptation of taking your profits too early. Success comes from holding on to profitable positions and riding with the trend for maximum gains while keeping losses small by getting out quickly when you are wrong. One way to protect you from suffering catastrophic losses is to place stop loss orders for every trade entered.
RULE 4 : IF YOU GET INTO A LOSING STREAK, TAKE A BREATHER
When things don’t work out right, when your best forecasts fail you – get away from the market and take a trading break. A period away from the market can be refreshing and will recharge you.
RULE 5 : BUILD A PYRAMID WHEN ADDING TO A PROFITABLE TRADE
As the market moves up and you are long much earlier, you must learn not to double up your positions. Instead, reduce your positions each time you add to a position. If at first you had 10 contracts, the second should not be more than 5-6 contracts and the third should be 50% of your second (i.e. 3 contracts). An upside down pyramid will be top heavy and could wipe out all your hard-earned profits should the market reverse.
RULE 6 : NEVER ADD TO A LOSING POSITION
Adding to a losing position by averaging is very dangerous. Remember you are investing with "margin" and did not pick up scrips. The contract is not yours; you merely paid a percentage of the total value. Averaging a losing position is equivalent to not admitting your mistakes, that you were wrong in the first place. Successful traders cut their losses short.
RULE 7 : DON’T RISK YOUR ENTIRE CAPITAL ON ONE TRADE
Divide your trading capital into 10 equal parts and never lose more than 10 percent on one trade. If you lost the first trade, you still have nine more opportunities to be right. Putting all your capital on one trade is suicidal.
RULE 8 : NEVER MEET MARGIN CALLS
When you are wrong about the market, get out. Once you start procrastinating, very often prices will go against your position, further triggering a margin call from your broker. A margin call simply means that you are wrong in the market and your position should be closed out. Margin calls are made because people do not want to admit being wrong and take a loss; they hope the market will eventually go in their direction. To avoid this mistake, you should never meet margin calls. Just cut your losses and "get the hell out".
RULE 9 : REMOVE PROFITS FROM YOUR ACCOUNT
Probably no more than 1% of traders have a rule to take profits out of their trading account. The few wise investors I know have bought a house, a car or simply put part of their winnings into a fixed deposit account, otherwise the chances are high that they may lose them all back.
RULE 10 : HAVE A GAME PLAN
Lack of a game plan is not knowing what to do when you are wrong – and not knowing what to do even when you are right.
Here are a few guidelines:
1. Know when and at what price you are going to enter the market.
2. Know how much money you are going to risk on each and every trade.
3. Know when and at what price you are going to get out when you are wrong.
4. Know when and at what price you are going to take your profits if you are right.
5. Know how much money you are going to make if you are right.
6. Have a safety stop in case the market does the unexpected.
7. Have an approximate idea of when the market should meet your objectives or when it should begin to make a move; and if it has not done so, get out.
SUMMARY:
You will note that none out of the ten rules of trading mentioned above are on money management. Only Rule 10 describes the importance of having a trading system to determine "when to enter and exit". This just goes to show that good money management is the key to your success in making money in the stocks, futures and currency markets. A good trading system comes second. Nick Leeson, the rogue trader for Barings in Singapore, got into trouble because he did not respect some of the 10 golden trading rules.
SUMMARY
You will note that none out of the ten rules of trading mentioned above are on money management. Only Rule 10 describes the importance of having a trading system to determine "when to enter and exit". This just goes to show that good money management is the key to your success in making money in the stocks, futures and currency markets. A good trading system comes second. Nick Leeson, the rogue trader for Barings in Singapore, got into trouble because he did not respect some of the 10 golden trading rules.

How To Profit Trading Forex

2009-08-14T07:35:00.000-07:00

If anyone has ever told you it’s easy to make money in Forex they are misleading you. Successful traders have discipline, the ability to manage their money and understand the psychology of the market. Trading is not done by guessing which way the market will move, but by using either fundamental analysis or technical analysis.

To make any kind of money in this world, you need a definite plan to follow in order to get from point A to B. The same holds true when trading in Forex. Many traders are able to follow a set of rules. How often you break this set of rules will have an effect on how much money you can actually make in the Forex market. The real challenge presents itself when a trader follows their rules and the rules fail to make any money at all. Sticking to your trading rules at all costs even while losing money will eventually yield a profitable trading system.

Sticking to a set of rules is not enough to become a profitable trader. Managing your money is extremely important. Many beginning traders over-leverage themselves and eventually lose their entire account. A good money management system to follow is always look to win twice as much as you lose on each trade. This way you only have to be right 50% of the time and you can still profit. Good money management will beat out a great trading system any day.

The most challenging aspect to over come in the Forex market is going to be your psychology. Being a trader, you need to learn to accept losses. Losses are going to happen in this market and it’s impossible to avoid them. The key is to keep your losses minimal and let your profits run. Every trader will face a psychological battle with themselves whether they are in profit or losing money. It’s important to refer back to a set of rules and discipline yourself to follow these rules when you begin to question yourself on a trade. Too many times traders have lost money and begin revenge trading to make their money back. Again, too many times traders have stopped themselves out of a profitable trade too early because the market goes against them initially, only to reverse in their favor.

In order to make money in Forex, a trader needs to educate themselves and learn all there is to know about the market. In the end, the successful trader ends up using a very simple system to profit. There are many online courses that will help anyone learn how trade Forex. Even successful traders are continuously learning and educating themselves on foreign exchange market.

Forex Scams - How to Spot Them A Mile Away

2009-08-14T07:28:00.000-07:00

In recent years, investors have witnessed increased number of investment opportunities and offerings. While the complexity and success of these investment products vary, technological innovation has made the Forex market one of the fastest growth areas. Many of the leading Forex brokers reported up to 500% rise in the number of new retail customers. However, the growth of the Forex market has been accompanied by a sharp rise in foreign currency trading scams.

Many of these Forex scams are promoted on the radio, television, newspapers and the Internet. Investors who fall victim to these schemes, often lose all of their money.

As an illustration, let's examine the facts of a recent case involving Forex fraud and its consequences. W learned of a foreign currency trading opportunity through an infomercial on the radio. K, the owner of a Forex asset management firm, spoke during the infomercial, promising viewers significant profits with minimum risk. After seeing the infomercial, W contacted K, and later attended a seminar presented by K and his firm. The seminar was so convincing that W wrote a check to K for $100,000.

Several months later, W received statements (which were false) from K's firm reflecting significant returns on his initial $100,000 investment. Thereafter, W attended another seminar and decided to invest more money. W took a loan and invested another $800,000 in K's Forex trading operation. Short while after W's second investment, the Securities and Exchange Commission filed a complaint against K and his firm for engaging in a scheme to defraud investors. K's firm's assets were frozen, including the $900,000 invested by W. A receiver was appointed to distribute the remaining assets of K's firm to defrauded investors. The assets were distributed on pro-rata basis with no legal preference given to any of the victims. Since K's firm's assets were not enough to satisfy all of the defrauded investor's claims, W received only about $22,000 of the $900,000 he invested.

Since a whole book can be written on the various tactics and methods used by Forex scam artists, in this article, I will focus on the major warning signs that one needs to identify to avoid falling victim to Forex swindlers.

1. Promises of Little or No Risk

If you encounter a Forex firm that claims to have developed a foreign currency trading strategy that carries very little or no risk, stay away. The reason Forex trading can be very profitable is because it also carries a very high risk of loss. The Forex market is very volatile, and, without good money management, an investor can lose most if not all her capital within few days. Thus, individuals and firms who make claims that are far from market realities, as is riskless Forex trading, are really after your money.

2. Guarantees of Large Profits

Beware of firms that guarantee large profits in Forex trading. These so called "guarantees" are mere ploys to entice investors and make them believe that their money is safe and that they will definitely make large profits. Such claims are simply untrue, because even the best professional traders cannot guarantee that they will make a profit any given day. The Forex market, as most financial markets, is very unpredictable. Hence, be suspicious of such claims and those who make them.

3. Employment Ads For Forex Traders

Many Forex trading firms use employment ads to attract individuals with capital to trade using their systems. The employment ads, which often appear in newspapers and on the Internet, state that a foreign currency trading firm is looking for individuals to teach how to trade the foreign currency market using firm capital. Those who reply to the ad are convinced by the firm that they will make a fortune trading currencies if they participate in the firm's training program. During the training process, which often occurs on a demo system, the novice traders are encouraged and told that their demo trading records show that have made significant profits, that they are ready to make real money and would very successful. Despite the firm's assessment of the novice trader as a brilliant newcomer, no firm capital is provided to the trader, instead the excited novice is told to use her own capital to trade using the firm's platform.

In addition to various fees imposed on traders using the firm's platform, the Forex firm makes money as an introducing broker. Each time the novice trader trades through the firm's system, a good part of the spread charged by the broker is shared and goes into the firm's coffers. After few months, the novice trader loses all of her capital and leaves. The Forex firm, having made money during the novice trader's short stint, moves on to new traders eager to become rich trading foreign currencies.

4. Is the Forex Firm a CFTC or NFA Member

Before you sign a check and give your capital to a Forex company, make sure you investigate the entity. Check to see whether the Forex firm, with which you plan to do business, is registered with the United States Commodity Futures Trading Commission or the National Futures Association. Many scam artists falsely claim that their firms are registered with the CFTC or the NFA to gain a prospective investor's trust. Do not trust anyone, research the firm and the background of the individuals involved before parting with your hard earned money.

The Internet has paved the way for many new opportunities for retail investors. The Forex market is both exciting and fast paced. Investors who are careful and diligent are likely to avoid the perils of this market, and will profit from the opportunities foreign currency trading has to offer.

Is Rob Booker Forex Training Any Good?

2009-08-14T07:26:00.000-07:00

This is a question I receive often and unfortunately I can no longer give an honest answer which is the only answer that I ever want to give. This is due to the fact that I haven’t dedicated myself to Rob Booker’s training since 2006 making my experiences outdated. The good news is that over the coming months, I will be able to give you an honest opinion because I am in the initial phases of giving his tutelage another go. This is possible because he has no expiration date on his training. According to his training contract, "You have as long as you need. You never have to pay me anything again…."

At first glance, there have been many changes to his training. His chart school, which are Rob’s trade ideas for students in video format appear to be more interactive. He provides a web conferencing platform where any of his students can attend and ask questions via messenging or voice. Other basic course materials seem unchanged such as the course introduction, FX basics, backtesting, support and resistance, moving averages, and similar topics. These are really basic though and I don’t see any reason why these would ever change. The course materials are also for the totally inexperienced forex trader, someone who has really never explored Forex outside of this course.

His primary trading system which has many components to it is called the Arizona Rules. He was just developing this system back when I lost interest in his training so I haven’t really explored it. If anything, it seems like Rob’s attempt is to provide his students with a well tested and possibly profitable trading system while also providing a comprehensive trading plan and system that one can take knowledge from to develop their own forex trading system.

Swiss Franc Carry Trade Strategy

2009-08-14T07:24:00.000-07:00

The September issue of Currency Trader Magazine was released today. Some of the highlights include:

* A look at an advanced carry trade strategy involving the Swiss Franc.
* The CFTC gains jurisdiction over retail forex fraud.
* What will drive the forex market in Q4.
* Yen crosses on the move.
* U.S. dollar rockets higher, Euro tumbles.
* China changes forex regulation.

Forex Trends And Trends Will Make You Rich

2009-08-14T07:21:00.000-07:00

Yes, as long as you learn how to identify the trend and how to profit from it you will be always on the money as you advance on your trading career.
As every experienced forex trader knows, the forex markets have a characteristic that make them kind of special compared to other capital markets, that is, Forex is a highly trending market. And you can probe it to yourself by looking at the forex charts in any time range you choose. If you watch with attention you will realize there are always marked trends for any currency pair you choose to watch. Then the art is in identifying the trend early enough to enter the market with an edge in your favor and also in learning when to exit an exhausted trend that is about to reverse. That’s, in a few words, all you need to make money with Forex.
A forex trading system that is based on the trending characteristics of the market is, in short, a system based on common sense and logic. And besides this kind of approach has the advantage that it tends to be simple, stable and consistently profitable. With this system you are not trying to read the future with a crystal ball but you are opening your eyes to the most basic behavior the forex market can show to any smart trader.
Learning the correct approach to identify the trends when forex trading can make you a highly profitable trader. There are people who makes more than $1000 dollars per week using this simple approach to trading the forex. Sometimes we think that everything involved with forex trading has to be overly complicated in order to work. But simple approaches can work too if you know how to use them.

Trend lines - forex trends

2009-08-14T07:19:00.000-07:00

There are some types of trend lines in technical analysis. They are the followings:
Market trends seem to follow geometric patterns as they go through both low and high trends. An uptrend creates a series of trends that have higher lows and highs. A trend line drawn between the rising lows can often be fairly accurate in determining where the market can find greater support during the next low trend and indicate fairly good buying levels.
Many Forex traders will choose an area below the trend line at which stop orders are are placed resulting in a sharp sell off. New sellers are generally attracted by breaks below the uptrend line. It's quite normal to see a series of lower lows and lower highs during a downward trend in the market. In this case, the trend line is drawn in alignment with the descending highs and will mirror the analysis as described above.
Every possible piece of information that is known is included in the price of a security, for this reason technical analysis will hold up. This information removes the necessity to analyze the political, economic and fundamental factors that have a big influence on price. Since all of the information that is available is already factored into the current price, the price movement is all that needs to be analyzed. The tendency for prices to trend isn't guaranteed; therefore any analysis should rely on common sense and empirical evidence. The fact that prices do trend is supported by the time proven Dow Theory.
For example, if homeowners have some reason to believe that Forex interest rates will increase and depreciate the value of their homes, they will be more likely to consider selling. Three similar homes in the same area could be sold at various prices. This would be much more preferable to dropping the prices of the homes down to low simply based on interest rates. Prices will tend to move more consistently over a period of time, but in the same direction.
With numerous participants in a large market such as global equities, prices often tend to move from high to low in one direction. But, prices will continue on a downward slope until a balance is reached between buyers and sellers. Sometimes this slope is gradual and sometimes it can happen really quick, but it's what a technical analyst tries to identify and exploit. When this trend is identified, a house may be sold short because the trend is getting lower. Price trends are one of the major concepts that give value to a technical analysis. If someone disagrees with the Dow Theory, they will usually disagree with a technical analysis as well. A technical analyst theorizes that all investors display the same type of behavior. There are the repeating attitudes that "Everyone wants in on the next Microsoft", "Stock in a company with a new technological invention will sky rocket". While this might be an irrational theory, it does still exist. A technical analyst will even create a chart showing patterns of price movements are predictive qualities.
Since their primary concern is price trends, they are interested in anything that can influence prices. Some even monitor the enthusiasm that investors display with surveys. These surveys are used to attempt to determine the attitudes the investment community has and whether they're going to be bullish about the investment or eager.
They also gather information from surveys to help determine if a particular trend will reverse and whether new trends are about to develop. Extreme reactions from investors can alter the outcome of a technical analysis. If most of the investors surveyed are bullish, it's a good indicator that there are very few buyers remaining in the market place. If investors appear to be long, there are generally more sellers than buyers and indicates the market is trending down. This concept is referred to as contrarian trading.

What are the Benefits of Forex Trading

2009-07-29T01:20:00.000-07:00

You may already be aware of some of the benefits offered by the currency market (also known as forex, spot forex or currency trading). It is the fastest, largest and most liquid market in the world, but that is only the beginning of its advantages. As a very basic explanation, forex is the simultaneous buying of one currency and selling of another in order to seek gaining a profit (or accruing a loss).

Today, almost anyone with the appropriate appetite for risk and an understanding of market trends and analysis can trade currencies online with GFT. There are many benefits of trading forex versus other types of financial markets, many benefits to choosing GFT as your forex dealer and much to learn if you’re new to currency trading. To start, learn the benefits of trading with GFT and start improving your trading knowledge. You'll be well on your way to reaching your full potential in the foreign exchange market.

Forex Trading: A World Of Trading Opportunities

2009-07-29T01:17:00.000-07:00

e market is the world’s largest financial market, but it wasn’t always accessible to any typical trader. Remember, forex trading is not conducted on a regulated exchange and as a result, there are additional risks associated with forex trading. In the past, access to foreign exchange of currencies was limited to banks, hedge funds, major currency dealers and the occasional high net-worth individual. But smaller financial institutions wanted to take advantage of the many benefits forex offered over other markets, including its tremendous liquidity, 24-hour access 5.5 days of the week and the strong trending nature of currency exchange rates.

It was this entrepreneurial vision of the smaller financial institutions and the evolution of the Internet that made forex accessible at a retail level. These institutions, including GFT, combined the accessibility of the Internet and fast and efficient proprietary software with accurate pricing, charting abilities, technical indicators and news feeds, which allowed any interested speculator open access to trade currencies. From 2002 to 2005 the practice of trading forex has grown threefold and this growth curve continues still. So read more about the benefits of using GFT and our access the world’s largest, fastest, most exhilarating marke

How to Trade Forex

2009-07-29T01:15:00.000-07:00

Trading foreign exchange is exciting and potentially very profitable, but there are also significant risk factors. It is crucially important that you fully understand the implications of margin trading and the particular pitfalls and opportunities that foreign exchange trading offers. On these pages, we offer you a brief introduction to the Forex markets as well as their participants and some strategies that you can apply. However, if you are ever in doubt about any aspect of a trade, you can always discuss the matter in-depth with one of our dealers. They are available 24 hours a day on the Saxo Bank online trading system, SaxoTrader.

The benchmark of its service is efficient execution, concise analysis and expertise – all achieved whilst maintaining an attractive and competitive cost structure. Today, Saxo Bank offers one of Europe's premier all-round services for trading in derivative products and foreign exchange. We count amongst our employees numerous dealers and analysts, each of whom has many years experience and a wide and varied knowledge of the markets – gained both in our home countries and in international financial centres. When trading foreign exchange, futures and other derivative products, we offer 24-hour service, extensive daily analysis, individual access to our Research & Analysis department for specific queries, and immediate execution of trades through our international network of banks and brokers. All at a price considerably lower than that which most companies and private investors normally have access to.

The combination of our strong emphasis on customer service, our strategy and trading recommendations, our strategic and individual hedging programmes, along with the availability to our clients of the latest news and information builds a strong case for trading an individual account through Saxo Bank.

Terms of trading are agreed individually depending on the volume of your transactions, but are generally much lower in cost when compared to banks and brokers. Your margin deposit can be cash or government securities, bank guarantees etc. Large corporate or institutional clients may be offered trading facilities on the strength of their balance sheet. The minimum deposit accepted for an individual trading account depends on the account type. Trade confirmations and real-time account overview are built into SaxoTrader, while further account information can be produced in accordance with your specific requirements

Full Time Job and Forex Trading

2009-07-19T11:41:00.000-07:00

I am not going to lie to you - having a full-time job demolishes the ability to trade forex properly. Even if you have an access to computer all day in your office, trading currencies during work hours seems practically impossible and unworthy. Why is it impossible to just bring up the charts every hour, spend couple of minutes looking at potential setups and go back to your usual daily tasks? What are the real risks involved in this scenario? What are the alternatives?

For those who already have a full-time job, forex trading may seem like a nice hobby and an extra income on a side. The problem is that combining the two is extremely difficult and need a proper plan. What I know for sure is that you cannot do both things half way and expect to be paid both ways!!

First of all, trading during work hours is a bad idea. It is certainly the best way to get fired. Most large companies today monitor the staff access to the internet and have policies indicating how much usage is actually acceptable. This means that your internet usage is most likely monitored as well – screenshots, keystrokes, browsing history with amount of time spend on each site. Spending time forex trading at your office will most likely get you into trouble, not to mention that your boss will have an access to your trading strategy, your passwords and your profits!

The next question is why can’t you just keep the trading platform running on the background, check the charts once in a while and continue to work at the usual tempo for your boss? Well, in my point of view, if you cannot dedicate your day to trading, it is better to leave it alone completely. As a full-time forex trader I spend practically all day looking at the hourly charts. I do not paint, or make sculptures, or fix the roof, or write a novel during my trading hours. I do not casually check the charts once in a while and go back to watching TV. No, this is not what forex trading is about.

In order to be good at something, you have to take it seriously. Be professional – this is business, not a playground. This applies to both your full-time job and forex trading. If you chase two rabbits, most likely you catch neither. Here are the possible outcomes:

You will be a good employee, but trading will be your weak link.
You will be awful at your daily job, while forex trading will improve dramatically.
Your boss will be pissed off at you and your trading experience will suffer losses.

I guess, the bottom line is that if you really need the job and the money, you should try to keep your boss pleased. Never start full-time trading without a saving of at least 6 monthly salaries. And if you still think about trading – either trade full-time or get a part-time job in case you cannot afford to take up trading as a career.

Forex trading is a difficult profession. It requires a lot of time sitting at a computer monitor analyzing your positions. Part-time trading is possible, but needs to be carefully planned out. It is possible to trade forex during certain hours (after work) or setting entry/exit, stop/losses and limit orders which will go on automatically when a selected price is reached during the time when you are away from the computer. Keep in mind that trading this way is very risky and not quite as profitable.

To wrap up, it is possible to trade forex on a part-time basis, but you have to be smart about it. The last thing you want is to get fired and loose money in trading. Get ready for forex reality – trading forex even part-time demands a lot of mental and physical energy, logic, money management, planning, learning and following. Many beginners do not fully realize how much learning is required in order to be able to analyze and understand the markets, the indicators, the economics, the news, the trend lines, the psychological issues etc. It is overwhelming and satisfying at the same time! Taken seriously, forex trading can bring more than any full-time job you ever had combined!

Forex Trading

2009-07-19T11:14:00.000-07:00

Forex Trading – One vs Multiple Currency Pairs

There are many aspects forex traders observe in order to pick the most profitable currency pair. Forex market has endless possibilities and no restrictions on which currency to choose and how many currency pairs to trade. The question is what are the most preferred currency pairs? How to choose the right currency pair? Is sticking to one-pair path beneficial or it is more profitable to multitask?

In order to pick up the currency pair that suits you most, you have to consider the following aspects of forex trading:

SPREAD. Tight spreads ensure to keep your costs down. With smaller spreads you can have more profits due to larger gaps during price volatility and you can also reach your break even point quicker. Most forex brokers offer EUR/USD currency pair with the tightest spread of 2-3 pips.
TREND. It is important to analyze the trend of the selected currency pair in forex market. Forex charts with indicators can ease the process of choosing the most profitable currency pair. Most currency pairs are simply more trendy than the rest.
TRADING SESSIONS. The most profitable time to trade forex is when the market has a lot of trading transactions. Depending on the currency pair, you will have to adopt to the right trading time.

For example:

¨ 7 PM EST to 10 PM EST – Tokie Stock Exchange opens

¨ 8 AM EST to 12 PM EST – NY Stock Exchange and London Stock Exchange open simultaneously (this is the time to trade almost any currency pairs)

Every trader differs with diverse mindset, psychological self-control, trading approach and overall understanding of forex market. Whether you choose to trade one pair or several is entirely up to you. Do not try to imitate other traders you know – your trading style must be picked and chosen by you. Your decision has to be based on what, how and when you wish to trade.

All of us understand that one market is closely correlated to another market. Once you have an experience and understanding of one currency, it seems logical to take advantage of this and trade several pairs. However, most successful traders are fully focused on just one pair (usually EUR/USD). Mastering one-pair forex trading allows you to understand the distinct “personality” of a selected pair and get confident with it. Despite the fact that one-pair traders could most probably use their knowledge to trade any other currency pair, they choose to stick with one.

The main reason for forex traders to focus on one currency pair is that multiple currency pairs requires much more work. Not all traders are able to handle all the information and correlation between currency pairs. Instead of concentrating on one pair, in most cases you spread the attention wide and end up with a headache, lower quality of trades and analysis, and greater risk of under performance because of neglect and loss of both attentive and passive observation of the forex market.

Obviously with one currency pair you might face fewer opportunities; however it doesn’t mean you will be less profitable. Many traders choose to become an expert in just one area rather than being an average in several.

Including other currency pairs to your trading plan may lead to extra pressures you are not always ready for and you might be exposed to less familiar trading style. Generally it isn’t easy to even follow one pair and fully understand all the WHYs involved in real time trading.

I personally tried to watch out for 3 pairs simultaneously and end up being less successful. I was missing out on a lot of information and therefore my personal trading style is just one pair. I am aware of the correlations with other pairs, but right now I only care about one graph. So for me, focusing on just one pair makes me more focused, precise and successful.

That being said, it should be emphasized once again that every trader has a different style. There is no right or wrong way to trade. In may ways trading style of one trader may appear too difficult and even unnecessary to other. All forex trading ways are unique, special and should be personalized according to your agenda.

Top 3 Forex Tips

2009-07-19T11:08:00.000-07:00

This article is more of a nest egg of collated points taken from various investors when asked the question, “What are the secret Forex tips normal investors should know about?” From there, 3 of the most useful answers have been collated and should help anyone gain an extra leverage or a new insight into their investment strategies in the FX market.

The first tip is to apply the 80-20 rule and every Forex investor should know this rule if they are really serious about making it big in them market. This rule does not only apply in Forex but also in all aspects of business and trade, which means that it can be thought as a universal trading principle you need to follow when either starting a business or investing in a commodity.

According to the rule, whatever Forex activity that you are involved in, 20% of your trades should reap 80% of the results. Which means, a small percentage of your trades should reap the largest amounts of profit for you. Do not make the mistake of other Forex traders in the sense that they trade way too much - following an unfounded belief that more presence in the market would mean a greater chance for them to earn a profit. This is more of an urban myth than anything else and should not be followed. The frequency of your trade is not the determinant for success, it is the quality of your trades that are much more important.

Do not make the mistake of diversifying too much; which means letting your portfolio expand naturally without you forcing yourself onto different market perspectives. Stretching yourself out too think can mean the difference between micro managing all your investments to losing control of your money and seeing the losses slowly creep in. If your one investment portfolio is giving you good returns and has high odds on you winning out everytime, you should not dilute this potential just because you feel the need to follow the crowd and diversify.Diversifying is always a good thing, but do not force it. Let it come naturally and when the market opens up and gives you the opportunity, then take it by all means.

Last but not least, you should also take more risks when it comes to the FX market.The right way to do it is to make decisions that many would fear of. But of course, you have to back this on founded research and advice from your broker as well. As long as the potential to make money is there, you should mine it. Increase your risk margins and get out there. There are other markets with less risk factors (like property) that will give you the same gains if you are being conservative in the FX market. You are in a market where risk is paid multiple times when the conditions are right. Be greedy when others are fearful and be fearful when others are greedy.