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Be A Forex Expert

Be A Forex Expert

Anyone who has ventured into the real marketplace would definitely have an idea of what a Forex is and share the many promises and possibilities this horizon can bring.

What Is Forex?

FOREX stands for the very popular Foreign Exchange Market. Sometimes, though, people associate it or equate it to mean also currencies.

Basically, forex is where people trade. The objects of the trading are the different foreign currencies. People buy and sell the currencies.

The exch…

Anyone who has ventured into the real marketplace would definitely have an idea of what a Forex is and share the many promises and possibilities this horizon can bring.

What Is Forex?

FOREX stands for the very popular Foreign Exchange Market. Sometimes, though, people associate it or equate it to mean also currencies.

Basically, forex is where people trade. The objects of the trading are the different foreign currencies. People buy and sell the currencies.

The exchange market and the trading as we know it today started in 1970?s. It has no definite place. It has no definite location. The foreign exchange market is found wherever there is a financial center where people conduct constant exchanges and buying and selling.

To ensure definite success in this field, the main goal has to be kept in mind. The keywords to traders in the foreign exchange market are to? buy low and sell high.? This is the way to get the profits coming in.

Why Are People Trading in the Forex?

More and more people are turning into forex trading now. It has become popular once again and people want to enjoy the success this can bring.

There are also no strict requirements to join the market. Anybody can enter it and learn how to trade. Some even study beforehand to be prepared for the big trading.

Another good aspect about forex is the absence of too many fees to be able to join in. There are no commissions, no brokerage fees, and no government fees.

The best thing by far is that trading can be done at home. Anyone can initiate a trade online. This spells big for people who stay at home, especially those who do not feel comfortable engaging in online businesses. With proper training and computer with internet access at hand, success is within the bounds of the home.

How Does One Trade Successfully in the Foreign Exchange Market?

The purpose of? to buy low and to sell high? must be kept in mind when trading in the forex. This will be the main vision of a trader to succeed.

The next task at hand is to know the trends. This means knowing when a particular currency will buy low or sell high. This is not a mere prediction of a possible turn of events.

Thus, forex requires strategies that have been tested to make sure that a decision will be profitable. There are two basic strategies employed in forex that one can learn from tutorials or the actual exposure to the market.

The first strategy is technical analysis.

This provides that a particular price chain reflects all the necessary information regarding the market. This entails a close analysis of the various aspects of the currency like the lowest and highest prices or the opening and closing prices.

The other strategy is the fundamental analysis.

As the name implies, it takes the overall situation. It focuses beyond the currency. It takes into account the situation of the country, economy, politics, and even the rumors. Thus this requires more exposure and knowledge on the part of the trader.

Conclusion

The foreign exchange market promises so many possibilities to the trader. Many people may be interested in the forex but are only afraid to take the first step. This attitude should be turned around. Just have a good vision, take the necessary steps, and make the forex venture a success.

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Basic Introduction To Forex Trading

Basic Introduction To Forex Trading

An introduction to the basic terms, definitions, and concepts of forex trading.

If you were wondering; forex trading is nothing more than direct access trading of different types of foreign currencies. A few years ago, foreign exchange trading was mostly limited to large banks and institutional traders however; today technological advancements have made it so that small traders can also take advantage of the many benefits of forex trading just by using the various online trading platforms to trade.

The currencies of the world are on a floating exchange rate, and they are always traded in pairs Euro/Dollar, Dollar/Yen, etc. About 85 percent of all daily transactions involve the trading of major currencies.

Four major currency pairs are usually used for investment purposes. They are Euro against US dollar, US dollar against Japanese yen, British pound against US dollar, and US dollar against the Swiss franc. Right now I will show you how they look in the trading market: EUR/USD, USD/JPY, GBP/USD, and USD/CHF. As a note, you should know that no dividends are paid on currencies.

If you think one currency will appreciate another, you may exchange that second currency for the first one and be able to stay in it. In case everything goes as you plan it, eventually, you may be able to make the opposite deal in that you may exchange this first currency back for that other and then collect profits from it.

Transactions on the FOREX market are performed by dealers at major banks or FOREX brokerage companies. FOREX is a necessary part of the worldwide market, so when you are sleeping in the comfort of your bed, the dealers in Europe are trading currencies with their Japanese counterparts.

Therefore, it is reasonable for you to believe that the FOREX market is active 24 hours a day, and dealers at major institutions are working 24/7 in three different shifts. Clients may place take-profit and stop-loss orders with brokers for overnight execution.

Price movements on the FOREX market are very smooth and without the gaps that you face almost every morning on the stock market. The daily turnover on the FOREX market is somewhere around $1.2 trillion, so a new investor can enter and exit positions without any problems.

The fact is that the FOREX market never stops, even on September 11, 2001, you could still get your hands on two-side quotes on currencies. The currency market is the largest and oldest financial market in the world. It is also called the foreign exchange market, the FX market for short. It is the biggest and most liquid market in the world, and it is traded mostly through the 24 hour-a-day inter-bank currency market.

When you compare them, you will see that the currency futures market is only one percent as big. Unlike the futures and stock markets, trading currencies is not centered on an exchange. Trading moves from major banking centers of the U.S. to Australia and New Zealand, to the Far East, to Europe, and finally back to the U.S., it is truly a full circle trading game.

In the past, the forex inter-bank market was not available to small speculators because of the large minimum transaction sizes and strict financial requirements.

Banks, major currency dealers, and sometimes even very large speculators were the principal dealers. Only they were able to take advantage of the currency market’s fantastic liquidity and strong trending nature of many of the world’s primary currency exchange rates.

Today, foreign exchange market brokers can break down the larger-sized inter-bank units and offer small traders like you and me the opportunity to buy or sell any number of these smaller units. These brokers give any size trader, including individual speculators or smaller companies, the option to trade at the same rates and price movements as the big players who once dominated the market.

As you can see, the foreign exchange market has come a long way. Being successful at it can be intimidating and difficult when you are new to the game. So if you want to step into this market, the first thing you do is get the right knowledge and educate yourself until you feel ready to jump in.

Awesome Reasons to Trade Forex

Awesome Reasons to Trade Forex

There are many money-making opportunities out there and we?ve been involved with quite a few, namely property marketing, web development, residential construction security, multi-level marketing businesses etc. We?ve come to a few conclusions with the help of some well-known property coaches…

There are many money-making opportunities out there and we?ve been involved with quite a few, namely property marketing, web development, residential construction security, multi-level marketing businesses etc.

We?ve come to a few conclusions with the help of some well-known property coaches.

Often people with the income they desire don’t have the time to enjoy it. Those that have time don’t often have money. You don?t have to sacrifice your life-style to earn an above-average income. If you focus on the Forex for a few months you can make that dream a reality and create time and money to do what you REALLY want.

To earn a living money is given in exchange for a product or service rendered. It needs to be sold continuously otherwise your income stops abruptly unless it?s a repeat type of product or service.

Money is a medium of exchange. There’s no magical formula to possess it, you need to exchange something of value for it.

What if, you could have access to thousands of customers who are ready, willing, and able to buy from you whenever you wanted? Wouldn?t it be great to avoid any hassles like money collection problems (just had a delayed payment from my web business), keeping difficult customers happy (we all know what that?s like), competition stealing your business without providing the same value etc.

All that is possible with Forex. You can also trade from anywhere. Take your laptop with you, find an internet connection, and away you go.

Another advantage is that you don’t need the experience to get started. Get a traditionally job involves accumulating specialized experience, having a well-polished resume and having the right contacts. With the right training course, you can get started straight away.

Here are 7 more reasons to trade Forex:

1. It never closes. It’s open around the clock, worldwide. Trading positions open at Monday 7am, New Zealand time and close 5pm New York time on Friday. During this time, you can enter or exit the market whenever you like. It’s a continuous electronic currency exchange. This is great because you can trade whenever you have spare time.
2. Leverage. Standard $100 000 currency lots can be traded with as little as $1000. This is mainly because of the ease with which you can buy and sell, some brokers will leverage up to 200 times, so with $100 you can control a 200 000 unit currency position. It?s the best use of trading capital around, even banks lending on property investments don?t come close.
3. Accurately predict the outcomes. Currency prices generally repeat themselves in predictable cycles so you can see what the trends are. ?Technical Analysis? helps to see these trends and profit from them.
4. Low Transaction Cost. In other words, your mistakes won’t cost you a fortune. Good brokers won? charge commissions to trade or maintain an account even if you have a mini account and trade small volumes.
5. Unlimited Earning Potential. Forex has a daily trading volume of over 1.5 trillion, the largest financial market in the world. It dwarfs the equities market (50 billion daily) and the futures market (30 billion).
6. You can make money in any market condition. Each market is one currency against another, so when you buy in one, you?re selling in another so there?s no biased towards either currency moving up or down. This means it?s up to you to choose which currency to buy or sell with. Yu can make money going up or down.
7. Market transparency. This is an advantage in any business or trading environment. It means you can manage risk and execute orders within seconds. It’s highly efficient and allows you to avoid unexpected? surprises?.

I hope you?re now convinced that Forex is the best investment and income opportunity around.

To continue your journey of Forex Trading success and achieve enormous profits, visit http://www.wealthyforex.com . You’ll receive all of the resources you need to positively impact your future.

Avoiding Forex-Related Frauds and Scams

Avoiding Forex-Related Frauds and Scams

Marquez, the author of The Part-Time Currency Trader, wants you to take precautions when shopping around for forex brokers.

 

A lot of people have been burnt’ from scam operations on the Internet. Their sites may look so legitimate that you doubt whether they would have gone through all that trouble building a trading platform just to steal your money. Beware.

The first thing I look for is the geographical location of the broker. If I find that they are based in a country where the financial industry is, in my opinion, relatively unregulated and under-developed, I quickly forgo signing up. This is terrible news for honest brokers in those countries, but your job as a trader is to protect your capital. If you lose that, then you cannot trade. The onus is on them to convince you that they will do the right thing for you as an investor.

 

I started with an Australian broker. Currently, I am using an American one. I have not tried UK-based brokers but the British financial industry is one of the best. Companies that are based in countries such as Japan, Germany, and France are probably just as good too if their website speaks your language.

 

Notice any license numbers that they may have registered with regulatory bodies that act like government watchdogs who oversee the finance and investments industries. These are organizations that impose strict rules to safeguard your investment. Some of these rules may include the requirement that brokers segregate all customer funds from the operational funds of the business. Your money is required to be put in highly reputable banks and the funds are only withdrawn from these accounts upon specific withdrawal requests.

 

Take note that some fake regulatory bodies are being thrown around in cyber-space as well. Take a look at how long they have been operating. Try and search out any reviews or comments made about them. See if you can find forums where traders have discussions about their brokers.

 

Below is a list of things to keep in mind to help you avoid being a victim of a scam:

 

Stay Away From Opportunities That Sound Too Good To Be True

There are people who may have just acquired a large amount of money just and recently are the same and are shopping around for safe investment vehicles. These may include retirees who have access to their retirement funds. It is understandable why retirees would be drawn to ?high-return, low-risk investments’. This is also what makes them very vulnerable. If you identify yourself to be one of these people, be careful. A lot of deceitful characters are after your money. Furthermore, only allocate a tiny amount of your money to trading until you can start growing it. Not all people can trade successfully, so it is a venture you should take on haphazardly. It is your life savings at risk.

Avoid Individuals Or Organizations Who Claim To Predict Or Guarantee Large Profits

Any form of trading is hard. Trading currencies is no different. Be wary of statements that make it sound easy. Statements like:

Whether the market moves up or down, in the currency market you will make a profit

Make $1000 per week, every week

We are out-performing 90% of domestic investments

You’ll make returns of 70% a year

Here is a no-risk strategy.

If they could make such returns, why would they even bother letting you know about it.

Be Wary Of Companies Who Downplay Investment Risks

Hold your wallet tight and zip up your purse when companies say that written risk disclosure agreements are routine formalities imposed by the government. Watch out for statements like:

With a $10,000 deposit, the maximum you can lose is $200 to $250 per day

We promise to recover any losses you have

Be Wary Of Companies That Claim To Trade In The Interbank Market’

Do not believe it when some people say that they have access to the Interbank market’ or that they can give you access to trade in that market because that’s where bargain prices can be obtained. This is not true. The interbank market’ is not a place, it is not a physical building. It is simply a loose network of currency transactions that are negotiated between big financial institutions and other large companies.

Ethnic Minorities Are Often Targeted

Ethnic newspapers and television ?infomercials’ are sometimes used to attract Russian, Chinese and Indian minorities. Sometimes these ads offer so-called job opportunities for account executives to trade foreign currencies’, whereby the recruited account executive’ is expected to use his own money to trade currencies and would often times be encouraged to recruit members like their friends and family to do the same.

Seek Out The Company’s Background

Check any information you receive to be sure that the company is who they claim to be. If at all possible, try and get the background of the people operating the company. Do not rely solely on oral statements and promises made by the company’s employees.

If You Are In Doubt, It Is Not Worth Risking Your Money

If after trying to solicit information and at the end of it all, you are still in doubt about the credentials of a particular company, my suggestion is to start looking elsewhere.

You may find further information by contacting government watchdogs’ because they keep up to date with trends and reports regarding scams and other fraudulent activities. Please check the resource section of this site for the information of organizations that regulate the securities industry, sorted by country. There is also a list of brokers that you may want to look at.

This is an excerpt, modified from the book: The Part-Time Currency Trader.

Avoiding Forex Market Risks

Avoiding Forex Market Risks

The Foreign Exchange or Forex market as it is more commonly known is purely to allow people to trade one currency for another. In fact, this is by far the largest trading market in the world for the value of the cash that passes from buyers and sellers of currencies. Many of the trades which take place on the Forex market occur between large banks, central banks, multinational corporations, Governments, currency speculators as well as all other types of financial institutions …

The Foreign Exchange or Forex market as it is more commonly known is purely to allow people to trade one currency for another. In fact, this is by far the largest trading market in the world for the value of the cash that passes from buyers and sellers of currencies. Many of the trades which take place on the Forex market occur between large banks, central banks, multinational corporations, Governments, currency speculators as well as all other types of financial institutions and markets.

Currently, the trades occurring in Forex markets across the globe are well more than $1.9 trillion each day on average. However, the individual or retail traders make up only a small part of this market, and they often trade through a third party such as a Forex broker or a bank. This means the market mostly includes sophisticated traders who know what they are doing.

In fact, when some individual investors begin trading in the Forex market it can all seem a bit daunting. The learning curve can be steep if you cannot master the fundamentals, and you can easily lose more money than you can afford if you are not careful. However, some people can learn fast and they can master the basics of the market quickly. If you are not one of the fast learners, you may have beginner’s luck and your first few trades can make you money. But you should not depend on luck to survive for more than your first few trades. You need a solid foundation to recoup your capital and make a decent income from your trades.

There are many financial instruments that you can use for trading on the currency market. These include forwards and futures, options, and spread betting. All of which are similar to those used in equity markets. However, as these instruments maintain a minimum trade size to the base currencies, a margin is included with each trading account.

Volatility is the essence of the currency market. Values for individual currencies rise and fall with news and information happening around the world. Sometimes the fall in a currency can be swift and can help to wipe out your entire account before you can react. So you must prepare for risks if you decide to trade on the Forex market. The market can change suddenly all because of decisions made by some government or corporation in a distant part of the world. A terrorist attack such as that which occurred on 9/11 did not only affect the Forex market in the US but the world over.

Therefore, if you want to become a successful investor in the Forex market, you must learn the fundamentals about the market and the currencies you wish to trade. Also, read press releases and other financial and political news from around the world. You will do well by learning how to read graphs and charts about these individual currencies, Finally, sign up for a demo account with a broker and learn how to trade without using real money.

Avoid Forex Currency Trading Scams

Avoid Forex Currency Trading Scams

Forex Currency trading swindlers often attract customers through advertisements in local newspapers, radio promotions, or attractive Internet sites. These particular advertisements may flaunt low-risk high-return investment opportunities in foreign currency trading. They may even offer high-paid currency-trading employment opportunities. Be very skeptical when promoters of foreign currency trading claim that their services or account management will earn high profits with mini…

Forex Currency trading swindlers often attract customers through advertisements in local newspapers, radio promotions, or attractive Internet sites. These particular advertisements may flaunt low-risk high-return investment opportunities in foreign currency trading. They may even offer high-paid currency-trading employment opportunities. Be very skeptical when promoters of foreign currency trading claim that their services or account management will earn high profits with minimal risks. Be wary if they claim that employment as a Forex currency trader will make you wealthy quickly.

Avoid opportunities that sound too good to be true. Forex currency trading that involves get-rich-quick schemes is generally swindled. Retired folks with access to their retirement funds are attractive targets for fraudsters. Once your money is gone, it is almost impossible to get it back. Be very careful of companies that will guarantee you a profit. Be careful as well, if they flaunt extremely high performance. These types of statements are generally false.

If the company tells you that written risk, disclosure statements are routine formalities imposed by the government, stay away from that company! Forex trading is very volatile and can be a huge risk for the uneducated and uninformed. If you cannot afford to lose money then do not get into the Forex currency trading market. Do not use your retirement funds for Forex currency trading; that would be extremely foolish.

Be very wary of online trading, it can be impossible to get a refund but it is very easy to transfer your funds. The internet is an easy way for fraudsters to reach potentially millions of people. The internet also can hide where a Forex trading company resides. If you transfer your money to a foreign location, it may be impossible to get it back.

You must get the background of the company you are dealing with. You should ask for all information in written form. Check with the Better Business Bureau as well. Do not rely strictly on the information you hear verbally. If you are not completely satisfied or comfortable with the information you find out then just do not deal with that company.

You may hear the term ?interbank?, it refers to a loose network of Forex currency transactions that are negotiated between financial institutions and other large companies. These are usually the only ones investing in the interbank market. So, be careful of a company that indicates that you should trade Forex in the interbank market. This can be a sign of an unscrupulous trading company.

Another term you may hear is Margin trading. Margin trading can make you responsible for losses that are greater than the dollar amount you deposited. Many Forex currency traders will ask customers to give them funds, which they sometimes refer to as “margin.” These sums can be in the range of $1,000 to $5,000. That dollar amounts actually control a far larger dollar amount of trading and customers are not aware of this sometimes. So, in essence, do not trade on margin unless you fully understand what it means and what you are doing. You must be prepared to accept losses that can exceed the margin amounts you have paid.

Automated Forex Trading: Clever Profit Making Technology

Automated Forex Trading: Clever Profit Making Technology

 

This is probably one of the questions that you need a reasonable answer to. There are hundreds of investments out there that you can prefer, but why go trading foreign currencies instead?

Forex investment is unique in various aspects.

Its trading volume is relatively huge compared to other markets.

It has extreme liquidity or the capability of either buying or selling the currency without causing a significant movement in the market price.

It has t…

Why Forex trading?

This is probably one of the questions that you need a reasonable answer to. There are hundreds of investments out there that you can prefer, but why go trading foreign currencies instead?

Forex investment is unique in various aspects.

Its trading volume is relatively huge compared to other markets.

It has extreme liquidity or the capability of either buying or selling the currency without causing a significant movement in the market price.

It has the largest number and variety of traders.

It is one of the markets that have long trading hours (24 hours each day, except during weekends.

Trading locations are almost everywhere, not just in the United States or major cities of Europe.
Different factors affect the foreign exchange rate.

Another whooping fact that will make you excited to go on Forex trading: it has an average turnover in the traditional foreign exchange market of around $1.88 trillion daily, according to the Triennial Central Bank Survey of the BIS (Bank for International Settlements). Here are the daily averages of turnover on the Forex market for the last 17 years:

$500 billion (April 1989)
$750 billion (April 1992)
$1.18 trillion (April 1995)
$1.48 trillion (April 1998)
$1.16 trillion (April 2001)
$1.88 trillion (April 2004)

From the figures alone, you will notice that the average trend of Forex turnover is increasing. It is estimated to reach as high as 2 to 3 trillion dollars within the next 8 to 10 years if the number of traders around the world will continue to increase. As a matter of fact, everyone has the chance of getting a substantial slice of the Forex market wealth pie, especially that Forex trading marketing is now on its automation process.

The concept of automation becomes the new trend in the foreign exchange trading market. The Interbank spot Forex market has also considered switching to the automated method as well.

There are several benefits that a Forex trader can derive from automated Forex trading. Here are some of such benefits and figure out why Forex trading, as well as other investments (futures and commodities), prefer the automated process.

Through an automated process, transactions can now be done in real time. Although manual systems have existed for quite some time now, it is difficult to achieve such benefits that the automated Forex system can offer to its traders. All of the trades can happen within a few milliseconds and can be a big plus for automated transactions against the manual system. In fact, some problems are addressed using automated Forex trading especially if the trader is losing a few times in a row that prevents him from making new trades. Such a problem could be addressed using the automatic trading system.

With automated Forex trading, you will have greater diversification. It means that you can trade in various markets in different time zones at a time. You can execute trades with traders from Singapore or London even it is already 12 midnight in the United States. This benefit allows you a multiple exchange model option. You can use varying trading models to evaluate short-term data. This means that you will be able to predict the trend for a shorter period of time, let us say from fifteen minutes to half an hour.

As previously mentioned, the Forex market is unique because of its extreme liquidity. This liquidity is increased when the market goes automated.

Risk management problems are solved through automated Forex trading. International checks, which are commonly used in making purchases on the Forex market, are synchronized through automated technology. Since the transaction in an automated process is now in real time, there is a slim chance that the payments will be delayed, reducing the risk of non-payment by either party. Although there are problems noted with the use of the automated system, they can be fixed through consistently updated technologies.

With an automated Forex trading market, the prediction of $2-3 trillion average daily turnover within the next 8 to 10 years can be changed within the next 4 to 5 years. Given the quick yet efficient trades on varying time zones, automated Forex trading will now be among the existing lucrative business around the world.

Apply ?the Secret? To Forex Trading Success

Apply ?the Secret? To Forex Trading Success

The Forex market is the largest trading network in the world with 1.8 trillion dollars being exchanged every day. There are dozens of different currencies traded but the big players to focus on are all traded with the US dollar and include EUR (Euro), GBP (British pound), JPY (Japanese Yen), CHF (Swiss franc), AUD (Australian dollar), NZD (New Zealand dollar), and the CAN (Canadian dollar). Each of these currencies is exchanged with the currency of other nations at diffe…

The Forex market is the largest trading network in the world with $1.8 trillion dollars being exchanged every day. There are dozens of different currencies traded but the big players to focus on are all traded with the US dollar and include EUR (Euro), GBP (British pound), JPY (Japanese Yen), CHF (Swiss franc), AUD (Australian dollar), NZD (New Zealand dollar), and the CAN (Canadian dollar). Each of these currencies is exchanged with the currency of other nations at different exchange rates? which are always in a state of flux because the market trades around the clock (Sunday through Friday). The volatility and sheer size of the market mean that there is ample fluctuation to produce big profits? and losses. The challenge for the investor, as always, is to predict which direction the rates of currency pairs will fluctuate.

The beginning point in any investment strategy is determining what type of analysis will be used to help guide enter and exit decisions. Investors who use fundamental analysis look at a nation’s interest rates and other economic indicators when deciding to enter or exit a position. Fundamental investors tend to trade based upon news releases and economic data from the nations involved in the currency pair.

Briefly, technical analysis involves the interpretation of price performance and chart patterns? all historical data. Some technical indicators used in this type of analysis include:

? Moving averages including Simple & Exponential
? Breakout Points
? Lines of Support & Resistance

Technical traders do not believe that the past necessarily predicts the future? but that long and short-term trends can be identified and exploited to help guide current decisions on entry and exit points on positions. Technical traders try to identify current trends in the Forex market to determine entry and exit points. If they are correct, they can ride a trend (in either direction) for a profit until an exit point is reached (when the trend is ending).

The most successful traders on the Forex tend to look for long-term trends and favor technical analysis. Fundamental traders have to enter and exit positions very quickly in order to capitalize in price fluctuations caused by news events (interest rate changes, release of economic data, etc.) and are therefore more vulnerable due to excessive trading. If there truly was?a secret? to trading success on the Forex, the top investors all tend to agree on the following:

1. Choose currency pairs involving the U.S. dollar (has volume to produce the price fluctuations necessary for big profits and the liquidity to enter/exit positions at will)
2. Find currency pair through backtesting that has most profit potential (pip movement) and least volatility through the use of technical analysis
3. After determining trends, set stops and exit points for both protection and maximum profitability
4. Review charts once per day (overtrading and day trading can hurt your portfolio)
5. Remain patient and exit positions once technical decision point has been reached

If there really is a secret to trading success on the Forex it has to be patience. Trading strategies are never perfect because the market will never be predictable 100% of the time. There will be times when any strategy fails and stop points are reached before profits are realized. Continuous back testing, remaining patient, and setting stops are the true secrets of Forex’s success.

Analyzing The Market For Great Forex Profits

Analyzing The Market For Great Forex Profits

There are so many Forex trading strategies out there that it’s not surprising so many people don’t know where to start. But actually, all of those strategies are some combination of two different techniques: fundamental or technical analysis.

A fundamental analyst looks at a nation’s entire financial picture to guide her trades, studying international macroeconomics and the forces that drive the supply of and demand for a currency. There are five of these factors:

There are so many Forex trading strategies out there that it’s not surprising so many people don’t know where to start. But actually, all of those strategies are some combination of two different techniques: fundamental or technical analysis.

A fundamental analyst looks at a nation’s entire financial picture to guide her trades, studying international macroeconomics and the forces that drive the supply of and demand for a currency. There are five of these factors:

is that country’s government in good financial shape or the red, and what is their financial policy (pro-business, labor, etc.)

the balance of imports versus exports, which directly affects a nation’s money supply

the growth of that country’s real gross domestic product (GDP); in other words, that nation’s purchasing power

interest rate levels

inflation level; in other words, how high are prices

These last three are all relative, which means they are compared to those same measurements for other countries to determine their strength or weakness, rather than considered as stand-alone numbers.

The fundamental analyst looks at all these factors and balances them against each other to determine whether a nation’s currency will appreciate or depreciate. Of course, as the Forex market trades the currency of one nation against that of another, the fundamental analyst cannot simply study the economic picture of one country; she must study both of them, and then compare them to determine which paints a more compelling financial picture.

The technical analyst, on the other hand, looks only at the charts. He looks at the price of a currency pair (or any other commodity, such as oil prices or stocks) and sees how it has varied through time, examining the patterns it has drawn to predict what it might do in the future.

Technical analysis is flexible. It works the same way in any market with charts (Forex, stocks, commodities, etc.). Once you learn how it’s done, you can apply it in other markets and get the same results.

Fundamental analysis, on the other hand, is not flexible, because it looks at the economic data for each nation individually. The financial numbers for Great Britain, after all, have nothing to do with those for Japan or New Zealand, and the fundamental analyst cannot take her studies to another market. She must study one currency pair and learn its two nations? economies intimately if she is to be successful with this technique.

That said, fundamental analysis is good for understanding what ought to happen and for predicting the long-range trend of a currency pair. It’s also true that many profitable trades are made immediately after economic announcements when savvy traders jump into the market while everyone else is still gasping over the numbers.

On the other hand, technical analysis can give you a specific strategy for a trade, including entry and exit points and where to place your stops. It requires less time to learn than fundamental analysis and works well for shorter trends and individual trades.

The most successful traders use a combination of these two techniques, combining chart analysis with the timing provided by economic announcements to get the best of both worlds.

All About A Forex Quote

All About A Forex Quote

Forex Trading? All about a Forex Quote. The word FOREX is derived from the words?FOReign EXchange. Unlike another financial markets in the world, Forex is open 24 hours every day where there is always a major financial center open where banks, dealers, hedge funds, corporations, individual investors and speculators are trading currencies.

The cumulative buy and sell of a currency cause the value of your Forex investment to move either up or down. There are numerous factors..

Forex Trading? All about a Forex Quote. The word FOREX is derived from the words?FOReign EXchange. Unlike another financial markets in the world, Forex is open 24 hours every day where there is always a major financial center open where banks, dealers, hedge funds, corporations, individual investors and speculators are trading currencies.

The cumulative buy and sell of a currency cause the value of your Forex investment to move either up or down. Numerous factors cause the fluctuation of the exchange rate. A country’s political, social, and fundamental economic environment and their central bank’s fiscal policy, interest rate adjustment are some of the common factors. To have a better understanding of how the currency exchange rate can affect the value of your Forex investment, this article will concentrate on the topic of Forex Quote.

Currencies are traded in pairs and each currency has its own symbol. For the Eurodollar- it is EUR, Japanese Yen – it is JPY, for the Pounds Sterling – it is GBP, and for the Swiss Franc – it is CHF. Hence, EUR/USD would be Euro-Dollar pair. GBP/USD would be pounding Sterling-Dollar pair and USD/CHF would be Dollar-Swiss Franc pair and so on.

You will always see the USD quoted first with few exceptions such as Pounds Sterling, Euro Dollar, Australia Dollar (AUD), and New Zealand Dollar (NZD. The first currency quoted is called the base currency. This is not surprising as the U.S. dollar is regarded as the central currency of the Forex market and is involved in nearly 90% of all Forex transactions.

So how are these currency pairs quoted on the Forex market? You will see two numbers on all Forex quotes. The first number is called the bid and the second is known as the offer (or the ASK) price. Take for instance EURUSD, you will see 1.4625/1.4630. The first quote of 1.4625 is the bid price, the price where traders are prepared to buy Euro against the USD Dollar. The second number 1.4630 is the offeror ask price and it is the price traders are prepared to sell the Euro against the US Dollar. You will notice that there is a difference between the bid and the offer price. This difference is known as the spread. Based on the previous EUR/USD quote, you know that 1 Euro is equal to 1.4625 US dollars.

The way profit is measured of a currency is by? pips? or point. PIP is the acronym for price interest point. If the EUR/USD moves from 1.4625 to 1.4655 that is 50 pips. A pip or 0.001 is the last decimal place of a currency quotation except for the Japanese Yen and Yen cross rates. A price movement for the USD/JPY from 111.10 to 111.60 will be 50 pips.

The objective and goal for all Forex Traders are to profit from foreign currency movements. The rewards of trading Forex are immense and the amount of money you can earn can be life-changing and ultimately leads you to achieve financial freedom. This requires continuous and adequate understanding and training in Forex education. This education may include understanding technical analysis, chart pattern, and formation, trade management such as stop loss and profit target, and money management. And if you invest and get the right Forex Trading knowledge, you can enjoy long-term currency trading success.