ABC of Forex Trade

Forex Day Trading Strategies For Success

2009-04-06T20:08:00.000+05:00

A huge number of traders try day trading strategies but which are the best to lead you to currency trading success? Let's find out ...
The aim of any Forex day trading strategy is to make small regular profits and use tight stops, to build a long term income. Day traders think that this restricts risk and increases long term profit potential but is this logic correct?
Ask yourself a question:
Any currency price is made up of the views of millions and millions of traders, these traders all have different opinions, skills, trading systems, motivations for trading and are all influenced to their emotions. So how can you work out what this vast mass of people, will do to price in minutes or hours? - The answer is you can't and day traders always lose money long term.
It's a fact that all volatility in these short time frames is random and support and resistance levels in daily ranges are not valid so you can't use them. If volatility is random, you're going to lose no matter how well thought out your system is.
In days gone by, floor traders and professionals had an advantage, because they had news first and could win at day trading. Today the internet gives everyone up to date information, at the click of a mouse and this advantage has gone.
There are lots of vendors selling day trading systems and they all claim you can win with them but they never produce a track record of real gains to support their claims. All they do to make profitable track records is run simulations over past data, knowing the closing prices and that's easy, trading without knowing the closing prices is the hard part of Forex trading!
If you want to win at Forex trading, don't day trade, look at longer term time frames where you can get the odds on your side and win.

Just What are the benefits of forex trading?

2009-03-25T13:02:00.003+05:00

There are many benefits of forex trading when compared to other financial markets. One of the major advantages over all other markets is the low margin requirements.

Some modern retail brokers offer traders leverage of a whopping 500:1. This is a margin requirement of just 0.2%. This may sound very enticing when we think that we can open a $1,000,000 position for just $2,000. However, it is important to remember that leverage can work with you as well as against you. Leverage can amplify your trading gains as well as your losses.

Another huge benefit of the forex market is the fact that it is open 24 hours a day. Just as one financial center closes, another opens. More information about the trading times of different financial centers can be found on our trading hours page.

The Forex market is the most liquid of all the financial markets. The main of this is the fact it can result in some very low spreads (the difference between the buy and sell price), especially on the major currency pairs. For example I have seen spreads of lower than 1 pip on EUR/USD.

Due to the high liquidity of the forex marketplace, it makes it possible to trade a very wide range of forex trading strategies. Some of these include scalping strategies, news spike strategies, swing trading strategies, pseudo hedge type strategies, carry trade strategies and many more.

Another benefit of the currency market is the fact that as it trades currencies, and currencies all have a base interest rate, it opens the opportunity to buy a currency with a high interest rate, whilst selling a currency with a low interest rate. This enables the trader to profit from the difference in the interest rates. This is known as the carry trade.

In conclusion, the forex market has many advantages over the other financial markets and there is great potential to earn excellent returns on your investment. However, it is very important to remember that whilst leverage can improve your trading gains, it can also increase your trading losses.

Forex Trading Times

2009-03-25T12:59:00.001+05:00

The Forex Market is a truly global 24 hour marketplace. There are several financial centres that participate in the forex market. The main ones are New Zealand, Australia, Japan, London and Wall Street.

All these financial centers operate during normal trading hours in their country. For example Tokyo begins trading at 7pm and closes at 3am (EST Timezone). London operates 3am-11am EST. As soon as Tokyo closes, London opens!

When trading currencies it is very import to know the individual trading sessions. The Forex trading times for the main financial centers are as follows:

Forex Trading Hours
Australia: 5pm - 1 am
Tokyo: 7 pm - 3 am
Singapore/Hong Kong: 9 pm - 5 am
Frankfurt: 2 am - 10 am
London: 3 am - 11 am

All the above times are using the EST timezone (Eastern Standard Time)

Typically the Tokyo trading session is one of the quietest. If you check historical charts for this trading session, you will see that on many occasions there is very little movement. Some traders exercise their scalping strategies during this period.

When exercising your forex trading strategy, it can be very important to fully understand the different trading sessions and the trading times of these sessions. The amount of volume and volatility can vary greatly between the different sessions.

A good example of this would be, a typical Tokyo session is generally likely to be much quieter than a US session on non-farm payroll day.

However, if you have a very long term forex strategy, where you have individual positions open for many weeks or months, the daily trading hours will not be anywhere near as significant to your trading.

A good example of this would be, a typical Tokyo session is generally likely to be much quieter than a US session on non-farm payroll day.

In conclusion, the forex trading times may or not be important to your trading strategy. Either way it is important to learn the trading hours of each session so you have a better idea of when the market will move.

The website timeanddate.com may be useful if you are wish to know the timezones in different countries.

Forex Scams and Forex Fraud

2009-03-25T12:58:00.001+05:00

Unfortunately, due to the potential of profit in the forex market, it has lead to a very large number of forex scams and forex frauds.

As you may know, the forex market has a great deal of opportunity to make excellent returns on your investment. However, being a successful forex trading takes a lot of time, commitment and hard work. The vast majority of new trader who begin their forex journey end up giving up within a few months, often having lost some money.

In this article we will look at some of the common scams out there.

The forex managed account:

The managed account is a very common scam in the forex marketplace. Most forex traders are not able to make money from their trading. Unfortunately some of these failing traders decide to setup a “managed account service”, offering to trade other peoples money for them, even though they are losing traders.

The reason they do it is because there is often very lucrative commissions to be made from the forex broker. Some managed accounts investments actually charge you for each trade they make, regardless of it wins or lose. So you end can end up paying to have a bad trader lose your money.

If you really want a managed account, the best thing to do is look for a good track record and verify it. Many traders will attempt to fraudulently falsify their trading results to make them look better than they really are.

Another good thing to do would be to make sure the trader takes commissions on performance. So if they suck, they don’t get paid.

Forex Signals Providers

This is another common forex scam. Again they are often run by losing traders falsifying their results. Some of them charge a high monthly fee to tell you went you should open and close your trades.

Very few forex signal providers have positive results in the long term, regardless of what they may claim on their website.

Another thing that is worth considering, if these signal providers really could make money from their own trading signals, would it not be a lot more profitable for them to actually trade them with their own money rather than selling them?

Forex strategies and systems

There are literally thousands of forex systems on the market for sale now. Some of them can be very expensive. Some of them are manual systems, whilst others are Expert Advisors. These are automated trading strategies that are used with the trading platform metatrader 4.

Unfortunately, the truth against is that most of these trading systems do not stand the test of time and ultimately not only cost you to buy them, but also have a negative affect on your trading account balance.

In regards to a forex trading system, it is far better to learn how the forex market works for yourself and devise your own personal trading strategy that suits your trading style.

There are no quick easy trading systems that will make you rich quickly. It’s not hard to find one that claims to do just that, but the tough reality is they are all scams.

It is the same principle as I mentioned earlier. If they had a forex system that could make them rich in a small amount of time, they would not be selling it, they would be trading it to it’s potential and making money with it for themselves.

To conclude this article, I will outline the fact that the unfortunate truth is that many of the forex products and services out there are much less than stellar. Many of them are outright scams just after taking your money!

Learn forex trading

2009-03-25T12:56:00.004+05:00

FXacademy: - your guide to understanding forex.

Teach yourself forex trading now! It will be the most important step towards your financial freedom. One of the secrets to successful trading is ” millionaire traders are ordinary people like you”.
The only difference is they have taken time to learn and understand how forex works. Placing profitable trades and making money with forex is easy once you learn and develop the required skills.

FXacademy has forex tutorials aimed at explaining the forex market concepts to beginners.
It is a simple guide meant to explain concepts of forex using easy to understand tutorials. Tutorials range from basic to advanced and caters for beginners and experienced traders.
Why should I Learn Forex ?
Forex is the largest market on planet earth. Gross daily turnover is over US$2.5 trillion. That’s many times bigger than all equity markets. It is no secret that you can make huge profits in currency markets.

Many individuals are successfully investing in day trading and generate a turnover of US$50 Billion daily. Internet technology makes online trading the best home business opportunity available.
Anyone can teach themselves and start trading forex online immediately from their home computer.

How You Make Money Trading Forex Online?

The goal of forex market trading is to exchange one currency for another in the expectation that the currency you bought will increase in value compared to the one you sold.
Most investors are day traders, they enter and close their positions in a single day (EST).
Learn more…

What are the requirements for trading?

Below is a list of things needed to start currency trading.
1. Learn how the market works.
Profitable trading requires good knowledge and skills. One needs to understand how to read quotes, place trades, stop losses… Many online forex resources and trading guides are available to individuals who wish to learn how forex works.

2. A forex trading strategy.
Many online brokers allow you to open practice accounts before trading with real money. This allows you to develop and test forex strategies,You can then pick the best one , that allows you to place more profitable trades. You should develop a trading strategy that works otherwise you will not make profit in forex trading.

3. An online broker.
You need to open a trading account with a online broker. For $25 000 + you can open a managed account. Mini forex accounts require a minimum of $25 depending on your broker.
A managed forex account allows you to relax while experienced investors trade on your behalf.
With ‘minis’ you do trading, money management..everything by yourself.

The broker will provide a trading platform which is an application for conducting trades. It is important to learn how to correctly use the platform provided by your chosen online broker.There is no room for mistakes in forex trading.

FXAcademy has two tutorials . Going through both of them will greatly assist any individual wishing to teach themself forex concepts.

Fast-track introduction..
This is an easy guide on forex market basics for newbies. The fast track intro is for forex beginners. Experienced traders should skip this simple tutorial .

Advanced Forex.
This is an introduction to advanced forex concepts. A greater part of this tutorial goes into introducing technical and fundamental analysis.Teach yourself advanced concepts such as money management, risk management ….
- Understanding fundamental analysis:
- Learn technical analysis.
More…

Our goals:

To provide education for beginners hence give everyone an opportunity to learn profitable forex trading.

To promote the best forex trading platform.

To endorse the best tools for learning and trading - software, forex education and training ,online brokers, courses, traders’ groups and books.

‘Lets Play The forex game.’

25 Currency Trading Tips

2009-03-25T12:56:00.003+05:00

These Currency Trading Tips aim to help you avoid making the common mistakes that hurt your account balance.

Always have a solid trading plan
Never Deviate from your plan
Make sure your trading plan includes the amount of your account you want to risk for each trade
NEVER under any circumstances overtrade
Follow the trend. It is your friend afterall.
Don’t be tempted to listen to “experts” and piggy back them. Stick to your plan
Forget about buying other peoples Forex Forecasts and such like. If they were good traders, they’d be trading, not selling their forecasts.
Spend at least several months trading a demo account before trading live
Only ever trade risk capital, basically don’t bet the farm!
Forget looking for the perfect system, it doesn’t exist
Do your best to be an emotionless trader. Emotions and trading are a potentially dangerous combination
Write down your mistakes and try to learn from them.
Always triple all of your orders to make sure they are correct
Ensure you have a solid understanding of lot sizes, rollovers etc before trading live
Always stay humble to the forex market. Never get cocky. You are a little fish, It is big enough to swallow you up.
Forget trying to find an easy route to success. There is no free lunch.
Never be blind to the risk of trading
Be prepared to accept the risks before trading live.
Choose your broker wisely. Brokers can go bankrupt. Make sure your broker is regulated.
Don’t blame your broker for your dwindling account balance. You chose that broker, it is your fault.
Accept that forex trading is hard and you will have losing streaks of trades. Learn to deal with the emotions that come with these.
If the stress of trading is getting to much for you, take a break. Take as long as you need.
Keep leverage very low, unless you really know what you doing with it.
Start off trading $1000 lots, also known as microlots
You are a little fish in the big market and don’t forget it.

Forex for Dummies

2009-03-25T12:17:00.001+05:00

Forex Basics
If you've already read the "What is Forex?" section then you should know what Forex market is and what it is all about. If not, please, do it. There are five essential aspects of foreign currency market a beginner trader (and an old one as well) should be aware of:

Forex Fundamental Analysis
Forex Technical Analysis
Money Management
Forex Trading Psychology
Forex Brokerage
Understanding and mastering these sides of trading are crucial to organize your Forex trading experience.

Forex Fundamental Analysis
Fundamental analysis is the process of market analysis which is done regarding only "real" events and macroeconomic data which is related to the traded currencies. Fundamental analysis is used not only in Forex but can be a part of any financial planning or forecasting. Concepts that are part of Forex fundamental analysis: overnight interest rates, central banks meetings and decisions, any macroeconomic news, global industrial, economical, political and weather news. Fundamental analysis is the most natural way of making Forex market forecasts. In theory, it alone should work perfectly, but in practice it is often used in pair with technical analysis. Recommended e-books on Forex fundamental analysis:

Reminiscences of a Stock Operator
What Moves the Currency Market?

Forex Technical Analysis
Technical analysis is the process of market analysis that relies only on market data numbers - quotes, charts, simple and complex indicators, volume of supply and demand, past market data, etc. The main idea behind Forex technical analysis is the postulate of functional dependence of the future market technical data on the past market technical data. As well as with fundamental analysis, technical analysis is believed to be self-sufficient and you can use only it to successfully trade Forex. In practice, both analysis methods are used. Recommended e-books on Forex fundamental analysis are:

The Law Of Charts
Candlesticks For Support And Resistance
Trend Determination

Money Management in Forex
Even if you master every possible method of market analysis and will make very accurate predictions for future Forex market behavior, you won't make any money without a proper money management strategy. Money management in Forex (as well as in other financial markets) is a complex set of rules which you develop to fit your own trading style and amount of money you have for trading. Money management play very important role in getting profits out of Forex; do not underestimate it. To get more information on money management you can read these books:

Risk Control and Money Management
Money Management (A chapter from The Mathematics of Gambling)

Forex Trading Psychology
While learning a lot about market analysis and money management is an obvious and necessary step to be a successful Forex traders, you also need to master your emotions to keep your trading performance under strict control of mind and intuition. Controlling your emotions in Forex trading is often a balancing between greed and cautiousness. Almost any known psychology practices and techniques can work for Forex traders to help them keep to their trading strategies rather to their spontaneous emotions. Problems you'll have to deal while being a professional Forex trader:

Your greed
Overtrading
Lack of discipline
Lack of confidence
Blind following others' forecasts
These are very professional books on psychology written specially for financial traders:

Calming The Mind So That Body Can Perform
Emotion Free Trading
The Miracle of Discipline

Forex Brokerage
Every Forex trader like any other professional needs tools to trade. One of these tools, which is vital to be in market, is a Forex broker and specifically for Internet - on-line Forex broker - a company which will provide real-time market information to trader and bring his orders to Forex market. While choosing a right Forex broker things to look for are the following:

Being a professional company you can trust
Provide you with real-time quotes
Execute your orders fast and accurately
Don't take a lot of commissions
Support the withdraw/deposit methods that you can use
For beginning Forex traders I recommend these four brokerage companies that are probably the best Forex brokers to start with:

FXOpen — one of the most popular and progressive brokers with MetaTrader platform and comfortable trading conditions for all kind of traders.
InstaForex — a reputable MetaTrader 4 brokers, allows Islamic Forex trading accounts, while you can deposit and withdraw money via WebMoney.
FXcast — good because you can start trading Forex with as little as 10$, use MetaTrader 4 platform and the dozoen of various deposit and withdraw methods, including WebMoney, e-Bullion and wire transfer.
LiteForex — broker that supports MetaTrader 4 Forex trading platform and doesn't require a lot of money to start with.

How To Start Forex Trading

2009-03-25T12:14:00.000+05:00

Forex trading is financial trading on the foreign exchange or currency market. This market is open twenty-four hours a day, five days a week and trades involve up to nearly two-trillion US dollars each day. If you are interested in adding this market to your investment plans, then follow these steps to start forex trading.

Study and learn. Forex trading is complicated and requires constant education. If you are not willing to dedicate yourself to learning everything you can, you will lose money. Don’t just read articles online. Go to a class or seminar. Attend online courses that are offered.
Understand the basics. Remember that forex trading is the buying and selling of money. When you purchase one type of currency, you are also selling another type simultaneously.
Set up an account with a broker. Start with a small account and the broker’s preferred software.
Practice using the trading software. Once you connect with a forex broker and establish an account, you should receive trading software. Read all the help information and guides for the software. You need to become expert at using the software.
Experiment with a demo account first. Practice with a demo account until you become proficient with both the software and the process of trading. Some experts recommend using a demo account for at least two to three months before putting real money on the line.
Decide how much you have to lose. The foreign exchange market can be volatile and more people lose money than gain, so be honest with yourself. In the beginning, you may lose. Know how much you can afford to lose while you are learning.Determine profit goals. Try to be reasonable here as well. Set goals for what you wish to achieve and in what time frame. Then choose the markets most likely to suit your needs. Try to plan for long-term benefits, not just short term payoffs.
Place orders to buy. Follow the guidelines of your brokerage company and place orders. Then watch your trade while looking for the next trade option.
Don’t trade just to trade. Make trades based upon research and evidence instead of emotion or boredom. Trading in this market requires a strategy and a plan.
Be patient. It takes time to learn the skills to be a productive forex trader.
Remember forex trading is not a regulated exchange. There are many risks associated with this market. Be prepared to lose when you first begin forex trading.

Five Reasons You Have to Start Forex Trading

2009-03-25T10:02:00.001+05:00

Why should you consider foreign exchange, or forex trading? One compelling reason is that it is a huge business, trading nearly two trillion U.S. dollars on a daily basis. The potential to make money is out there for the well-informed trader. The forex market is the largest in the world. It is larger than the U.S. stock market, and has a daily trading volume larger than all the world's stock markets combined. The following list provides a few reasons why forex trading is a smart move.

It's Easy

If the idea of trading on the stock market is intimidating, you're not alone. There is no way that anyone, including professional brokers, can know enough about all the stock options. Therefore, many traders specialize or focus on particular areas of the stock market, and many individuals are left to rely on the opinions of the professionals, who may or may not be good at their craft.

Trading on the forex market, in contrast, is much simpler. The primary currencies traded are the U.S. dollar, the Japanese yen, and the British pound. There is less to keep track of, so conducting research and analysis can be much easier.

You Can Do it from Home

If you're interested in getting involved in forex trading, all you need is a computer and a bit of time. Granted, conducting some research is wise if you want to make the best choices. But once you have an idea of your strategy, you can conduct transactions online for minimal fees and without having to pay a professional to do it for you (although this is an option). There are a number of online options for trading foreign exchange, so you'll need to conduct some research to determine the best choice for you. If you know others who trade this way, ask for their preferences. Conducting a simple Google search on forex trading will yield many results, so review and choose carefully.

The Investment is Minimal

To get involved in currency trading, you do not need to invest a lot of cash upfront. Many trading options are available for a small investment, some as low as a few hundred dollars. This allows new traders in particular to get involved, learn the process, and risk very little. To trade in the forex market, you need to determine your risk limit, and not invest above that amount. Because the initial investment can be low, many people can get involved that may not be able to invest in other options, such as traditional stocks. Forex trading is a good way to enter the trading market.

You Can Make Money

While trading on the forex market takes some research, skill, and a bit of luck, it is possible to make money. The potential for huge payoffs is at times exaggerated, but there are traders making large amounts of money in this market. The key is to learn what you are doing and make smart choices. This can include determining how much you are able and willing to risk, taking risks when necessary, and learning as much as you can about the market. Trading on the forex market also offers you more leverage than in other markets. You can use smaller amounts of money to your advantage, and the trading process is simpler than in other markets.

It's Flexible

Trading on the Foreign Exchange market is a twenty-four hour process, which means that you don't need to wait for the opening and closing of the exchange to know where you stand. You can make trades at any time of the day, which gives you much more control than if you are operating in the traditional stock market. This also allows traders to respond to breaking news immediately. The advantages of real-time trading are advantageous in that traders have a much better understanding of their investments. Conversely, in the traditional stock market, after-hours activities, for example, can affect stock values, but the affects are not immediately available.

If you're interested in trading on the forex market, do your research. Many trading companies provide free information online. The more you know, the better you decisions you'll be able to make. Many of these same companies offer free trial periods as well, which you can use to get your feet wet and determine if currency trading is for you.

Mike Singh is a finance enthusiast who writes articles about variety of fiscal topics. Checkout more Forex-related articles at Forex made easy

2009-03-18T10:31:00.002+05:00

Add Forex Charts to your website

2009-03-16T10:21:00.002+05:00

Forex weekly Market Reviews with BForex Analysts

Wick Trading Strategy

2009-03-16T10:16:00.003+05:00

How do the majority of profitable Forex traders truly profit in the FX market? One way… they trade the news!
Forex News Trader was developed to give traders the edge they need to learn how to trade based on economic news events from around the world. The same edge the institutions use to make hundreds of millions and even billions of dollars in profit each year.
Forex News Trading will provide you with the information you need to give you a true insider’s understanding of the Forex markets. You will feel confident in your trading, and never doubt your trades again.
Does this mean you will win every trade? No, of course not, but armed with the knowledge Forex News Trader will provide you, you will never be afraid to take that next trade - as the odds will now be tipped in your favor.
Each and every month there are a tremendous number of news releases for the Off Exchange Retail Foreign Currency Market (FOREX). Many of these events and announcements move the markets considerably. But how do you properly capitalize on these moves? Get it wrong and you could be wiped out. Get it right and you can be in a small group of trading elite, consistently pulling pips out of the market each and every week.

2009-03-14T18:48:00.001+05:00

Forex on Top was updated today with the latest traffic rankings for what has now grown to 500 forex websites. Their is no doubt that Google is the best place to search for specific forex content but if you’re looking for websites that you can sink your teeth in, this is the place to find them. You can also browse the top 20 movers to find upcoming forex sites that might be worth exploring.

http://www.forexontop.com

2009-03-14T17:30:00.002+05:00

Why do you Need to get an Automated Forex Trading System Right Now?

2009-03-14T16:18:00.002+05:00

An automated forex trading system is the easiest way to profit off of the $5 trillion dollar a day forex trading market. You can take advantage today of the worldwide economic tumult by profiting off of the huge swings its causing in the forex trading market. Don't be passive and let yourself be overwhelmed by what's happening when you can take control of your own destiny and make money with an automated Forex trading system! Stepping out and taking this risk can yield huge rewards!

ABC Of FOREX Trading

2009-03-14T15:16:00.001+05:00

FOREX trading can be briefly explained as trading one country's currency against another country's currency at a certain exchange rate. However, this concept is not as simple as it is explained. It involves a lot more than trading currencies.

Firstly, where does this trading occur? FOREX trading never occurs in any centralized market of a particular country. It involves a vast network of all the major banks and financial organizations around the world, a concept known as interbank market. The entire market is connected through a sophisticated telecommunication network that includes internet, telephone and even fax. Millions of customers are connected with each other through this network.

Second, how is this trading done? Typically, currencies in a FOREX market are traded in two different ways that include over-the-counter cash trading and currency futures and options trading. Fundamental aspect of FOREX trading is speculation and analysis depending on which the exchange rates and leverage ratios on different currencies are determined. In order to speculate, FOREX traders need to strategize carefully, research thoroughly and plan realistically. Accurate speculation involves one need to do a lot of technical analysis depending on the FOREX trading patterns. There are also other issues that influence this type of trading. These include trade flows, changes in interest rates, currency surpluses or deficits and economic stability of the country. All these factors must be taken into consideration while speculating and analyzing currency exchange rates.

In order to be successful in FOREX trading, it is important to be disciplined with the investments made. This strategy is equally important to both large speculators and small speculators. It is not advisable to put all your eggs in one basket. A proper trading plan involves preparation for losing trades followed by preparation for winning trades.

About Author:

Pauline Go is a professional writer for many website. She also writes great articles like How To Make Money In Annuities, Bond Markets And Oil Prices, Psp Advantages Of Setting Up A Wholly Owned Subsidiary