Online Forex Brokers – Bringing You Into the Market!

May 15, 2013 by  
Filed under Online Forex Trading

If you want to trade forex you need a broker. In the modern world of trading, we’re talking about online trading brokers. Online trading brokers are websites that allow you to open accounts and trade via the internet. It is important to investigate a number of factors before opening an account with just any online trading broker.

Prior to picking an online broker it is necessary to determine what type of trader you intend to be. There are certain website that are fitting for day traders, and other websites that are better for the casual investor. The more frequently you intend on trading, the less you can bear per-trade commissions. Additionally, if you’d like to trade on a frequent basis, you’ll probably need mobile access via a smartphone. So the first step to take is actually to look in the mirror and ask yourself, “What type of trader will I be?”

Watch Out For Unnecessary Fees!!

The next step is to save your money from unnecessary fees. Commissions and fees are understandably unavoidable; the online trading brokers are proving a service that you have to pay for. However, it is important to read about all the commissions and fees carefully to see which website will be cheapest best on your trading needs. Some fees to look out for include:

• Account-opening fee• Minimum account-size fee• Account transfer fee• Inactivity fee• Per-trade commission• Personal assistance fee• Paper statements fee• Account closing fee

Although some websites will let you open an account of any size (and might charge you a minimum-account-size fee), others will only let you open an account with a certain amount of money. The larger your account, the nicer they will be to you. Some websites will even give you free money for opening a large account.

Where to Find Free Tools – Don’t Pass These Up!

Speaking of free stuff, who doesn’t love free stuff? Look for free stuff. Lots of websites offer free training tutorials, financial education literature, quotes, analysis tools, and software. Free trading tools are not just a fringe benefit. These tools can mean the difference between knowing what’s happening in the market and not, and can be the difference between making money and losing it.

It also pays to look at the interest offered on the cash in your account. Also, if you plan on extending the horizon of your investments to include commodities, stocks, or other arteries of profit, it may make sense to locate an online broker the will provide for those financial needs.

Security – What to Look Out For

Lastly, but also possibly the most important factor to look into, is security. The security of your personal account information is exceedingly important. Therefore, it is crucial to read the security policy of any online broker and to check to make sure they match the security indicator of your browser. Only open an account with a legitimate online broker in order to make sure that your sensitive information is not obtainable by third party sources.

After making sure you are learning from the best forex brokers or online forex brokers, you’re ready to start trading! If you are interested in stocks day trading, you can also check http://www.forexmansion.com .

More Online Forex Articles.

Forex Secrets – Developing The “Anti-Chaos” Trading Strategy And Tactics At Forex Market (Part II)

January 31, 2013 by  
Filed under Forex Trading Strategies

It is horrible to imagine what could happen to USD rate at the spontaneous market in this case. At the controllable market of Forex USD rate would fall down just by 1-2%.

I hope that my opponents, who deny the existence of a system controlling Forex market, do remember the elementary economical laws. The spontaneous market is a barometer that establishes the real price of goods on the basis of the demand and supply (in the given case, it is the real rate of exchange of any national currency).

The Episode #2 . The hurricane “Katrina” and the flood in USA on September 7, 2005. USD rate stably increases. Chronicle of events.

As the result of the dam (dike) debacle, several states in USA become submerged. The industry, agriculture and transport network were destroyed. There started panic not only among common inhabitants but among officials of various ranks as well. Hundreds and thousands of people perished. There were cases of looting. Many looters (and, maybe, just desperately hungry and thirsty people) were shot by soldiers of USA army. The government of USA declared this hurricane to be a disaster on a national scale. For the first time a new plan of civic defense was introduced (see “BBC. The total chronicle of events”).

“Katrina” was bringing USA to ruin. Senators from Louisiana asked $250 milliards from the federal budget for getting over “Katrina” after-effects.

Thus, it is an illustrative example of the greatest natural cataclysms in USA in the last decades. Even the poorest country in the world – Haiti – provided the financial help for USA ($ 36 thousands). The help of Ukraine made 1 million of hrivnias , etc.

What did happen to USD rate at the controllable Forex market? Notwithstanding all economical laws and even against the common sense, USD rate increased!

Chart 8.7. EURO/USD pair movement (For view picture see notes in end of article)

Chart 8.8. GBP/USD pair movement (For view picture see notes in end of article)

Brief conclusions for traders .

As I think, the thesis that Forex has turned from the spontaneous market to the controllable one does not need further proofs. Hence, traders must introduce amendments into strategy and tactic of their work at Forex.

What are the conclusions, significant for traders, logically follow from these facts?

Under the new conditions of the controllable market, a trader must not follow the “crowd” (flock). As B. Williams, A. Elder and many other authors have fairly emphasized, the “crowd” pushes the price at any spontaneous market. On the contrary, at the organized Forex market orders must be opened in advance of Consortium’s interests!

I try to find the core of a good sense in each technique of the successful work at Forex . Is it necessary to rediscover the well-known principles? There are many prosperous traders who openly and honestly present their methods of gaining profits at Forex . If their techniques are successful, it means that these authors have a thorough grasp of the problem in its essence.

However, in practice, each of the techniques sometimes brings profits, whereas in other cases it is disadvantageous. And it does not matter, whether this technique is developed by B. Williams or by a not celebrated but a successful trader.

Conclusion #1. It is necessary to clearly delineate the domains where a given technique does work and where it fails (as well as the corresponding reasons). In such a way we can clearly understand what of the method by a given trader is worthwhile to be used – as well as how and when to make advantage of it for our work at Forex .

Conclusion #2 . Your trading system must not be just a mixture (farrago) of various techniques. This rule is especially important for the beginners. After reading heaps of books on Forex , all of them make complaints about “such a mess in their heads instead of enlightenment”.

Conclusion #3. A trader must develop his own trading system. In order to gain profit, the following steps must be taken:

a. you choose just any technique developed by any author-trader (e.g., mine or B. Williams’s, or somebody’s else);

b. you must get used to work with the demo account according to this technique to such extent of automatism that you “sense’ it as your own initial (original) trading system of the work at Forex

c. Only after this you should start to study additional literature. You must clearly see what pointes, “borrowed” from other authors, can help you personally to work at Forex , to improve your trading system for getting extra profits.

Objectiveness of Forex turning from the spontaneous market into the controllable one. The pattern of this process

Any profitable business transits from the spontaneous to the controllable one. It is an objective stage in the evolution of business undertakings.

In each branch of a big and super profitable business the initial stage of the chaotic competitive straggle is already has been passed through (petroleum, gas, ferrous and non-ferrous metallurgy, precious metals, arms traffic, etc.). At present all these areas are definitely divided between the principal participants. That is, there exist certain financially-industrial groupings, well-controllable and protected from intrusion of a concurrent.

The same concerns the biggest and most conservative area of business – i.e., its financial branch, the world market of currency exchange included. Can it be otherwise? Can “Chaos” rule the market where the turnover exceeds $1 trillion per day? Can the biggest banks and governments depend on “Chaos” – i.e., be dependable of the “off-floor” traders – such as me and you? Can these organizations be worried about the direction in which we (traders) could turn the trend of all national currencies at this or that second? It is ridiculous to imagine!

To realize the power of the grouping that has organized the “game” of Forex all over the world, we should refer to the thesis from the journal “Speculator”. In June, 2001 the three biggest dealers at Forex market – Citibank, J.P. Morgan Chase и Deutsche Bank – together with Reuters Group PLC had started up the system Atriax . However, the latter did not meet competition and stopped operations in spring, 2002. The author of the paper just hinted that even the alliance of the 3 biggest world banks could not make any serious competition to Organizer of the “game” at Forex (to Consortium or somebody else).

In this connection, how one can take on trust the principal thesis by B. Williams concerning “Trading chaos” that rules Forex? What’s important, all methods of this author issue from this postulate. The following conclusion by B. Williams’s also raises doubts. He states that trends are created by traders, whereas brokers just realize these trends and place traders’ orders. According to B. Williams, the fact that now trends are made rather “off-floor” than “on floor” (as it was earlier) permits detecting what next will happen at the market (see “Trading Chaos”, Chapter 6).

So, to what extent can B. Williams’s techniques be correct if their basis is principally erroneous? Let us enumerate the fundamental mistakes made in “Trading Chaos”. It is necessary to facilitate understanding of the techniques and practical recommendations given by B. Williams concerning the work at Forex .

1. B. Williams sees Forex as a spontaneous market, uncontrollable by anybody. According to this author, it is chaos but not an organized system that would have its own strategy, tactic, techniques, goals, methods of fraud, etc.

2. B. Williams mentions the pair “trader + broker”. However, unconsciously or deliberately, he has omitted the third participant of this very process. This is banks and the world financial system in general. Surely, this organization will not just take a detached view of the traders’ arbitrary “game” with the basic world currencies (USD, EURO, GBP, CHF, etc.).

Let us now evolve B. Williams’s idea by ourselves. Our aim is to demonstrate absurdity of his “chaos theory” applied to the up-to-date market of Forex.

· How brokers and banks market-makers can pay off profits from traders’ deposits if the traders’ total earnings would be bigger than the market-maker’s profit in this period?

· Being in shoes of market-makers, National Banks, governments of leading countries of the world, etc., how will you conduct yourself on the eve of the news issue? For instance, after the publication of Michigan University Index, USD can “go up” by 150-200 points with respect to all national currencies. That is, in several hours dozens of milliards of USD will be redistributed. Somebody will earn the money, whereas somebody will lose it because of the difference in rates of exchange (quotations).

What will you do in the place of the biggest financial groupings? Would you just be sitting and taking sedative pills? Would you just be trying to guess what steps will be taken by professors of a Michigan University? Will 0.3% be added to the index previous value (91.4) or subtracted from it? What’s important, this “difference” makes milliards of USD – for somebody! Possessing such capitals, would you just be sitting idly and waiting for God knows what? More probably, you will try to make this process controllable and predictable. Rather you will do your best to gain profit with the help of such indices and news. I think you will try to let the others lose their money.

· What does the theory of “chaos” at Forex represent by itself if Organizer of the “game” has trained all traders to act according to the stereotype?

a). To place stop-losses and postponed orders at the same places.

b). If the issued news are better than the prognostication, one must stake on “buy”. Otherwise (if the news are worse than the prognostication), it is necessary to stake on “sell”.

c). If a quicker moving average crosses the slower one upwards, the order must be opened on “buy”. In the case of the downward crossover, the order must be opened on “sell”.

d). In the case of divergence, one must try to work against the trend. B. Williams and other “classics” at least had to mention that it was basically absurd to work like this at the beginning of the trend and in the middle of it.

This is why the given chapter is named “Anti-trading chaos” – to be more precise, it is the anti-trading system.

Further I’ll not dwell on absurdity of the chaos theory by B. Williams when applied to Forex . I hope it is quite clear. Any trader can find a lot of evidences of the fact that Forex is a controllable market. There are also many examples that prove fallacy of B. Williams’s conclusion that traders form a trend and “push” it.

As I get it, the “game” of Forex and its rules in their essence are the following.

1. There is Organizer of the financial game (the Alligator) and participants (victims).

2. Organizer always tries to demonstrate: a). objectivity and honesty of the rules established by himself; b). simplicity of the analysis, predictability of the situations and the possibility of earning money easily and regularly by one of the numerous methods of the analysis (FA, TA, etc.).

3. All participants of the “game” are subjected to the same psychological treatment by Brokers, authors of numerical “classical” works on Forex and analysts via their sites and prognoses. That is, such specialists teach every trader to work as all others in the world do.

As the result, Organizer beforehand knows the traders’ line of conduct in these or those situations. The percentage of “players”-losers is stable – about 90%.

4. A rapid growth in the number of fraudulent machinations developed by Brokers has become a logical continuation of the above-enumerated rules of the given game. Economists from Brokers have quickly grasped that the number 90% of traders-loses is very close to the figure 100%. What for will they send clients’ transactions to the foreign market (the market-maker bank)? In fact, traders will lose all the same! Besides, it is possible to slightly “help” traders in their losing by “knocking down” stop-losses – all traders keep their stop-losses approximately at the same place. In addition, the following tricks can be done as well: the “slippage” (opening of transactions at a price much worse than the price at which the trader wanted to open the deal); computer “pending” at the beginning of the heavy movement in currency pairs. One can give many analogous examples – up to the undisguised fraudulent nonpayment of earned profits to traders.

These centers are also protected from the viewpoint of finances. If in flats the sums of orders of the traders who open transactions on “buy” and “sell” are approximately equal, Brokers can always hedge the difference between “buy” and “sell” with a market-maker under the condition of a heavy trend.

The only thing that cheats from Brokers are afraid of is the unmasking of methods of their work. Really, this will put an end to the afflux of new “victims”!

There are several sure signs of a fraudulent Brokers. In my educational course I enumerate some of such indications. However, here I give only one characteristic (traders should think about it well). If Brokers has one point of spread, you should calculate expenses on the marginal trade, in detail described in all “classical” manuals of Forex . For instance, let it be thought that you open the order for one lot. Forex Brokers supposedly buys EURO to the sum of $ 100 thousands for you. When you close the order, Forex Brokers supposedly transfer EURO to USD again. Thus, if you open 10 deals with EURO/USD pair during a day, your Forex Brokers is supposed to send money abroad and get it back 10 times, buying EURO for USD and v.v. All these transactions must be made exceptionally for you! Is it realistic?

In a next-door bank you should ask the conditions for the transfer of $100 thousands abroad and back. You will learn the cost of the commission for such services and the time required for this transaction (in half a day, the next day, etc.). Here I do not mention the papers that must be prepared for each transfer. I also say nothing about the time required for collecting all signatures.

I wonder, during this period of time what changes will occur in EURO/USD rate as the latter is altering every second?

5. To earn regularly at Forex, you have to master yourself. That is, a trading scheme must be developed. According to this scheme you will work against “generally accepted” rules. As it is already mentioned, these rules are popularized by Organizer of the game at Forex . Sticking to these rules, more than 90% of traders all over the world lose their money.

6. Developing my trading system, I have made use of numerous generally-recognized techniques of the work at Forex (by B. Williams, etc.). Surely, there is a kernel of good sense in any technique that enables earning money – even if in 50% of cases. Therefore, the trader’s task is to differentiate the conditions, under which a given technique can provide profit. It is also necessary to understand where, when and why this technique yields a loss to the trader. Naturally, a trader must use only this first part of the system, where one can gain profit.

7. For the development of your own trading system, you must do your best to organically integrate different techniques, profitable at Forex. Various methods of giving analysis to Forex from different viewpoints do help us to more thoroughly and profoundly understand this market and, consequently, to gain profit regularly.

8. The game of Forex is widely spread all over the world. In addition to speculators, there are other participants in Forex – e.g., individuals who need to exchange currency for their business. All these factors provide an objective opportunity to gain profits bigger (and more regularly) than in any other financial game of the world.

9. Therefore, Forex gives a real opportunity to get into the principally new financial market and to become a really independent. Anybody can be engaged in trading at any point in the world. For sure, a State, much as it would want it, cannot deprive a trader of his production facilities because in this area gaining of profit depends just on one’s techniques and skill.

10. Forex gives you just a chance to earn money. However, not everybody can learn how to gain real profit. Even after having mastered the fundamentals of making money at Forex , a trader needs to learn a lot of additional factors in order to transform his potential abilities into real money. In this connection the following aspects are very important.

a). the psychological stability (the absence of fear and hazard, the ability to work automatically at the subconscious level, etc);

b). a reliable broker (the trader’s profits, being virtual, materialize only if you can convert it into real money at any second);

c). self-perfection via mastering new techniques of gaining profit, learning from an experienced instructor and due to exchanging opinions with other traders;

d). the possibility of obtaining money from the investor for the asset management. This gives the opportunity to proceed from the level of one’s own deposit of several hundreds or thousands of USD to the principally new level of the work at Forex. In this way one can simultaneously reinvest a part of one’s profits into the deposit and to spend money on heightening of one’s own well-being. There is a simple example. At mini- Forex , many traders do not earn a lot of money: even if a trader has doubled his deposit in a month, his profit is small (e. g., by making $100 out of $50). Besides, a part of it he must take off from the deposit for the daily needs. I’ll not give examples of large deposits because the tactics of work with them are principally different – as well as the percentage of profit.

11. Not everybody can cover a distance from the chance (the dream) to its realization – i.e., to making real money at Forex . As a trader, here you work against Organizer of this game, who is the professional. That is, to earn money regularly by taking it away from Organizer, one must become the professional himself. Do not hurry to open a real account at least till the time when you will learn to do the following:

a). As B. Williams himself, in several minutes to clearly see two possible alternatives of currency pair movement at the beginning of each session. Correspondingly, you must develop two business plans, where points of input into the market and output from it must be clearly designated.

b). To work out one’s own tactic of the work with the demo account at Forex to perfection. The aim is to augment the demo account at least 2.5-3 times in a month.

c). To develop the long-term and intermediate strategies (not less than a month and a week, respectively) – as well as the short-term tactic (the intra-day trading session). Acquisition of this knowledge will help you to gain profit.

d). After opening of the real account, at the beginning you must work only with trends (under the conditions of flats you must deal with demo accounts). It is necessary to clearly distinguish one from another at the beginning of trading.

e). You must choose two ally currency pairs and work with them continuously, accumulating experience.

12. There can be reasons why your demo account does not augment regularly (in particular, maybe you are too busy at your main job). In this case, you better forget about Forex ! You must not open a real account there. It means that Forex is not intended for you.

By the way, there is completely nothing humiliating in the inability to make money at Forex . Some people do not understand technology, or literature. Others do not come to know fine arts, politics or sports, etc. Does anybody consider oneself inferior because of this reason? Surely, not at all!

Analogously, I perfectly well realize that the reaction to the last two items of my vision of the game at Forex can be inadequate. It will stimulate an immediate tide of slander and lies concerning me and my book. The reason is that I’m not an employee of BROKER but a trader. I try to understand recent rules of the game at Forex, its mechanisms and to explain them to others..

Trading in the Zone: Master the Market with Confidence, Discipline and a Winning Attitude

January 30, 2013 by  
Filed under Forex Trading Strategies

Trading in the Zone: Master the Market with Confidence, Discipline and a Winning AttitudeMaximizing the trader?s state of mind is the key to successful results. Conflicts, contradictions and paradoxes in thinking can spell disaster for even a highly motivated, astute and well grounded trader. Mark Douglas, a trader, personal trading coach, and industry consultant since 1982, sends the message that “thinking strategy” will profoundly influence a trader?s success rate. Douglas addresses five very specific issues to give traders the insight and understanding about themselves that will make them consistent winners in the market.

Trading In The Zone offers specific solutions to the ?people factor? of commodity price movement. It uncovers the true culprit for lack of consistency when it comes to stock picking: lack of focus and self-confidence. Through simple exercises, traders will learn how to think in terms of probabilities, and adopt the specific beliefs necessary to developing a winner?s mindset. Along the way, they?ll gain valuable insights into their own entrenched misconceptions about the market.

Backed by compelling examples, Trading In The Zone adds a new dimension to getting an edge on the market. Through a better understanding of themselves, as well as of Wall Street?s realities, traders will come to leverage the power of their psyche for unprecedented profitability.

Price: $50.00

Click here to buy from Amazon

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What is Forex market?

September 29, 2012 by  
Filed under Forex Trading System

Forex system
by Tradingrichmom

Forex market, the biggest market of the world is making many people richer and prosperous. But what is Forex? What is the meaning of Forex market?

Forex is the combination of starting words of two letters that are Foreign and exchange. Forex deals in trading currencies to earn profit and the market where these deals are done is called Forex Market.

In forex trading, currencies are exchanged to earn profit. The most important feature of this trading is that it is done on global level means people around the world can place trades and earn profits. It is estimated that more than trillion US dollars trading is done in a day. Forex trading like share market works for 5 days starting from Monday and ends at Friday making it 24/7 business. The big guns of forex trades are large banks, International corporations and large financial institutions.

The theme of forex trade is “free floating currencies”. “Free floating currencies” are used for those currencies which are not supported by any specific product like diamond, gold, silver etc. Now how can one earn money from Forex trading?

The profit and loss of a forex trader is totally dependent on changes in the value of currencies. Euro and United States Dollars are the most hot favorites in the Forex market. These are like martini for the James Bonds of Forex market. The other most popular currencies are the Canadian Dollar, the Australian dollar, the New Zealand Dollar and the Japanese Yen. There are many examples of people in the market who has changed there fortunes by Forex trading. Warren Buffet, the world’s richest man has invested his more than 20 billion dollars in Forex market.

With the change in technology Forex market has changed its mode of trading also. Earlier forex trading was done through telephone only. Now many companies are providing user friendly online trading panel in the forex market.

Related Forex System Articles

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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.

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