Basic Guide to Forex Trading

February 17, 2014 by  
Filed under Forex Trading System

If you want to learn more secrets and techniques that really helped me make profit with Forex, Click Here!

WHAT IT IS

FOREX stands for foreign exchange, or the trading of currencies. It is the world’s biggest market since it involves almost every country’s economy. The market is also open 24 hours a day, 7 days a week. No one can trade the market the whole time, unlike the stock market. The trader who buys and sells in the FOREX market trades the currencies of countries all over the world. The most popular currencies are the US Dollar, the British Pound, the Euro, the Canadian Dollar, the Australian Dollar, and the Japanese Yen.

HOW TO TRADE IT

Originally, FOREX use to be the domain of big banks. They would trade the currencies between themselves and to multinational corporations that needed them. Retail FOREX has exploded recently due to the widespread use of the internet. No longer did anyone need to trade with the banks. Many sites sprung up over the internet. Some include forex.com, fxsolutions.com, among others. They serve as a broker for traders. Instead of commissions, these brokers take some pips off of the trade and keep it as the fee. A pip is a set amount for each currency, so it varies.

PRODUCT TRADED

When most investors trade FOREX, they are traded contracts that buy and sell 0,000 worth of a currency. When one sees a currency quote, it is usually in a currency pair. An example would be USD/JPY with USD standing for US Dollars and JPY standing for Japanese Yen. When an investor puts through a trade, they are really buying the one currency and selling the other. In this case, he or she is buying the US Dollar and selling the Japanese Yen.

LEVERAGE

A tool that has to be used in FOREX is leverage. In any other field of investing, the use of leverage is usually discouraged as it can be very dangerous. The problem with FOREX is that most investors can’t spend 0,000 dollars on one trade. Because of this, the FOREX brokers usually allow individuals to leverage to amounts higher than in any form of trading. One site allows investors to just spend ,000 on a 0,000. As always, leverage can also hurt the trader. If the trade starts to go the wrong way, the trader will be forced to close the trade and maybe will even owe the broker more money.

THINGS TO WATCH

Because FOREX is a global marketplace, it is important that traders involved get news from all over the world. However, they all need to know which news to pay attention to and which to ignore. This only comes from practice. Most of the brokers’ platforms offer some type of news feed. Some news to watch for is GDP reports, unemployment reports, and inflation numbers. Also, watch what countries are doing to their interest rates, since this affects the interest earned on currency and its value.

Trading FOREX isn’t hard once the trader gets used to it. Like the saying goes, practice makes perfect. Most sites offer the chance to try out their trading platform for free for 30 days. It is highly recommended that traders take advantage of this. The worst thing that could happen is you wasted a month practicing trader. Who knows, you might be the next George Soros.

If you want to learn more secrets and techniques that really helped me make profit with Forex, Click Here!

Hi, My name is Kendra, I’m from Vancouver, BC. My interested involve reading, writing and taking care of my family. I enjoy writing articles and taking a walk through the park on a sunny day. I hope you enjoyed my article(s) and wish you the best of luck!

.

Forex Guide: Things That Every Beginner Traders Should Know Before They Start Trading in Forex

February 3, 2013 by  
Filed under Forex Trading Strategies

It’s a fact that forex trading became a highly preferable investment method in the last decade. Combined with the internet as a global 24/7 network forex is reachable to everyone. I’ll not give you about the basic explanation of forex trading in this article. I’m sure that i don’t have to tell what forex trading is. People which familiar or have an interest in an investment know forex already. Don’t they?

Forex trading is basically just an investment

As any other investment, there are always benefits and risks beyond forex trading. Many people/organization, especially forex brokers, its affiliate and those who earn their income by providing some forex related services says that forex trading have so much advantages compared to other investments; Forex is easy, with its non-stop 24 hours market, its wide range adjustable leverage, its automated trading platform, its offered better opportunity for income resource, and many more — you name it as much as you want to…

Blinded by its ‘beautiful dream imagination’, many small/personal traders, especially for the new ones forgot that forex trading is basically still an investment program. Traders should never have a thought that forex trading is an income resource.

Common Beginner Traders Scenario

Beginner forex traders are usually follow the trend of forex trading without preparing and providing them self with an adequate understanding about what’s inside forex trading. Their common scenarios are:

1. Know about forex trading

2. Have an interest in forex trading

3. Looking for an easy and profitable forex services

(Usually by looking for some services with less margin, high leverage, automated trading platform, and less risk? – which is too good to be true)

4. Start gambling with their trades

5. Unable to achieve profits as what their imagination

6. Repeating scenarios 3, 4 and 5

7. Repeating scenarios 3, 4 and 5 again… and again…

8. Realizing that they are loosing too much or that their imagination along these days/weeks/months is wrong (i doubt that it would reach years)

9. Give up and quit their trading for good.

Where did they do wrong in above scenario? Is that wrong to always searching for a better service to back up our trade? In my point of view, there are no mistakes in that scenario at all. But it’s just incomplete, and that’s the most dangerous mistakes made by most beginner traders.

How to Overcome Traders Mistakes and Begin to Make Some Profits in Forex

The facts are, there are just 5% of forex traders which successes with their trading. To become as they are, we should insert step 2.5 in scenario above. This step will simplify above scenarios by eliminating the fourth and eighth and changing ninth step became TRADERS GOAL ACHIEVED.

2.5 Preparing yourself with a solid basic knowledge of forex trading

– Know about the fundamental of forex trading

– Learn about what and how forex market really is

– Train yourself to getting familiar with the technical analysis in forex trading

– Learn how psychological factor affecting in the trading and define our best trading personality

– Be aware in our risk and money management

– Develop your most effective unique trading system based on your knowledge.

We should keep in mind deeply that forex trading is an investment. There is no way that we could be a master in some investment that we’ve just dive in to for days or weeks. We have to do it by the right way, and don’t forget to eliminate your rush in the goal achievement. You will surely find your best trading system that suits you, I guarantee that. But it would cost you some time for several trial and error system testing while you developing your experience in forex trading.

By using an analogical approach as a computer, forex broker is the application programs and operating system. We do need them to make sure that all we need its done, served and executed properly. But, how good the computerization execution speed and its performance are depends on the basic computer specification, which analogically as you.

How to Get Yourself Completely Forex Prepared

Learning and education materials are world widely spreading around us.

1. The first and the most value added a resource of forex trading is through book reading. Forex and investing categorized books are availabe in countless numbers in many bookstore and online bookstore. You should pick some of them to educate yourself with valuable knowledge of the theory beyond forex trading.

2. Try to get into some traders forum to know more about forex trading and the markets. Forex forum also a place to give you an information for forecasting the crowd psychological factor to forecast the currency price movement by examining on how do other traders react in some financial forex related world events.

3. Get a forex course. An expert forex traders or forex broker are offering this kind of forex educational method. The course are usually about the basic knowledge of forex, technical analysis technique usage and its tools, an expert trading advice or maybe in how to develop a particular tested forex trading system which profitable (if done right and backed by your forex basic knowledge).

4. Forex magazine subscription. Some forex magazines are published weekly, monthly and others might be yearly. These materials usually give you information about the updated forex market behavior overview and analysis which can be use for the input of the fundamental analysis of your forex trading..

Automated Forex Trading – Peak Forex Trading Market Hours Guide

October 2, 2011 by  
Filed under Automated Forex Trading

Since the introduction of automated currency trading, trading at Forex markets has become much lucrative than ever. Unlike stock markets, Forex markets are open 24 hours a day, 5 days a week. To maximize your profits by trading at Forex markets, it is crucial to know the very best and peak Forex trading hours. It is important to plan your Forex trading strategies taking into account peak Forex trading hours. Automated currency trading can make things easier for Forex traders, especially beginners.

To be a successful trader at Forex markets, it is important to have the comprehensive understanding of the market and of the times when market can be most profitable. Though market is open all day long, the trading volumes and the level of trading, activity is not same all the times. There are times when trading is at its peak and at most promising levels. These peak hours at the Forex markets are known to be the Forex power hours. If you can use these peak hours, you can maximize your profits by taking most efficient trading decision. The automated Forex trading systems perform with precision in terms of time, since timing is critical for Forex trading. Professional traders well know this secret and so does the automated Forex trading systems.

Since markets are open 24 hours a day, it is impossible for a trader to concentrate on markets every moment. You can set your automated currency trading system to focus of the currencies you want to trade in. With an automated Forex trading system working for you, you will never miss a market opening in any part of the world. Like professional traders, you can maximize your profits by trading at power hours.

The peak hours refer to the times when market volumes are largest in the day and volatility is at its peak. When several lots of a particular currency pairs are being sold and bought, trading volumes are high. Maximum volatility means when the prices of currency pairs are moving quickly. During peak hours, you can see this trend of high volume and high volatility in every major currency Actually, these peak hours are very few, only four hours each day! It is between 8AM to 12PM EST that you get peak hours to trade in Forex markets. This is the time when two most active trading zones in the world overlap- since US session is opening, and the European session is closing. Most professional traders call this the “hot zone”. You can observe large pip movements in major currency pairs including EUR/USD, USD/CHF, USD/CAD, GBP/JPY and GBP/CHF.

At the same time, you should avoid trading at the least active time; the “cold zone”-it is the Asian-European overlap session. Volumes are the thinnest and volatility is unpredictable-stay out of it and be prepared for coming European session that offers good volumes. A well-established company in the world of automated trading, Auto Currency Trading (ACT) provides robust automated currency trading platforms to help traders reap maximum profits during peak hours at Forex market.

.