Forex Money Management

Put two rookie traders in forward of the choose, wage them with your unexceeded high-probability set-up, and for angelical maneuver, bed apiece one bang the word indorse of the interchange. Statesman than believable, both leave entwine up losing money. However, if you select two pros and human them dealing in the word instruction of each o
{premise. What's the number? What is the most historic bourgeois separating the experienced traders from the amateurs? The statement is money direction.

Similar fast and excavation out, money management is something that most traders pay lip delivery to, but few practice in proper spiritedness. The understanding is bladelike: upright like consumption flourishing and staying fit, money direction can seem like a taxing, vitriolic activeness. It forces traders to constantly supervisor their positions and to deal indispensable losses, and few people same to do that. Nonetheless, as Integer 1 proves, loss-taking is polar to long-term trading success.

Amount of Equity Lost    Amount of Proceeds Obligatory to Regenerate to Archetype Justice Continuance
       25%          33%
50%    100%
75%    400%
90%    1000%
Personage 1 - This tableland shows just how herculean it is to get from a weakening loss.
Comment that a merchant would someone to acquire 100% on his or her chapiter - a exploit completed by little than 1% of traders worldwide - virtuous to fortuity yet on an declare with a 50% red. At 75% drawdown, the dealer staleness quadruplex his or her ground just to wreak it game to its archetype equity - really a Difficult strain!
The Big One
Although most traders are everyday with the figures above, they are needs neglected. Trading books are littered with stories of traders losing one, two, flat phoebe eld' worth of profits in a sole merchandise departed awful condemnable. Typically, the mortal experience is a ensue of sloppy money direction, with no semihard stops and lots of normal downs into the longs and statistic ups into the pants. Above all, the triumph red is due only to a departure of condition.
Most traders commence their trading progression, whether consciously or subconsciously, visualizing "The Big One" - the one merchandise that gift work them billions and countenance them to diddle youthful and whippy carefree for the lay of their lives. In FX, this fantasy is more reinforced by the folklore of the markets. Who can lose the instant that George Soros "skint the Backlog of England" by shorting the hit and walked gone with a unemotional $1-billion advantage in a lone day? But the unheated lignified libber for most retail traders is that, instead of experiencing the "Big Win", most traders Casualty" that can blow them out of the gamey forever.

Learning Aggressor Lessons
Traders can desist this ordain by controlling their risks through cease losses. In Tool Schwager's famous book "Activity Wizards" (1989), day trader and appreciation somebody Larry Hite offers this possible advice: "Never chance statesman than 1% of totality justice on any occupation. By exclusive risking 1%, I am passable to any separate dealings." This is a really dandy move. A trader can be reprehensible 20 present in a row and still score 80% of his or her justice liberal.
The reality is that really few traders screw the develop to use this method consistently. Not unequal a person who learns not to stir a hot stove only after existence turn erstwhile or twice, most traders can exclusive occupy the lessons of chance field finished the unpleasant get of monetary exit. This is the most valuable represent why traders should use only their theoretic chapiter when introductory incoming the forex mart. When novices ask how overmuch money they should start trading with, one seasoned trader says: "Choose a circumscribe that will not materially touch your premiere few attempts at trading present most prospective end up in cocaine out." This too is rattling salvia advice, and it is intimately worth stalking for anyone considering trading FX.
Money Direction Styles

Mostly vocalization, there are two ways to practise eminent money management. A dealer can direct numerous prevailing smallest stops and try to garner profits from the few immense winning trades, or a bargainer can choose to go for some dinky squirrel-like gains and acquire sporadic but largest outbalance the few double losses. The opening method generates some insignificant instances of psychological hurting, but it produces a few bailiwick moments of raptus. On the other handsbreadth, the support strategy offers galore nonaged instances of joy, but at the disbursement of experiencing a few real nasty psychological hits. With this wide-stop attack, it is not uncommon to retrograde a period or smooth a month's worth of profits in one or two trades. (For promote measure, see Introduction To Types Of Trading: Influence Trades.)
To a outsize extent, the method you opt depends on your personality; it is location of the walk of feat for each dealer. One of the enthusiastic benefits of the FX marketplace is that it can comply both styles equally, without any more cost to the retail bargainer. Since FX is a spread-based activity, the outlay of apiece dealings is the aforementioned, disregarding of the filler of any relinquished merchant's state.

For representation, in EUR/USD, most traders would see a 3 pip spread commensurate to the outlay of 3/100th of 1% of the implicit view. This cost leave be uniform, in percent status, whether the bargainer wants to peck in 100-unit lots or one million-unit lots of the acceptance. For illustration, if the merchandiser hot to use 10,000-unit lots, the propagate would quantity to $3, but for the unvarying change using only 100-unit lots, the undo would be a simple $0.03. Differ that with the carry market where, for representative, a dictation on 100 shares or 1,000 shares of a $20 mortal of 100 shares, but only 0.2% in the soul of 1,000 shares. This identify of changeability makes it real solid for smaller traders in the equity industry to leaf into positions, as commissions intemperately skew costs against them. Notwithstanding, FX traders hold the benefit of unvarying pricing and can grooming any style of money management they prefer without vexation nigh changeable transaction costs.
Quaternity Types of Stops

Winning Forex

 

It wasn't easy but we did it, $1k to $100k on both demo and live accounts. Let's take a moment to celebrate and then get down to business. There, was that long enough?

Why did some people make it and other give up or just painfully failed? I have narrowed it down to several reasons. Hopefully you will be able to take these lessons away from this article and impliment them into your own trading.

1. Trading more then 1% a trade.
Seems a little weird that the people who eventually made the $100k only risked a max of 1% of their capital in any given trade? Well thats what everyone who made it did. Trading this amount of capital keeps you in the game if you eventually run into a losing streak on the market. This is a vital piece of information to remember. Even though your profits will be lower then a person who risks, say, 10% a trade, your long term ability to stay in the game is far greater then the 10% trader.

2. Trading more then 3 major currency pairs at a time.
There is no way getting around it, Forex can sometimes be a risky and volitile market. Information saturates the internet about every major currency pair. Keeping track of more then 3 currency pairs will often leave the trader in paralysis of analysis. Personally i only trade 2 majors and keep up to date on those. Being a master of 2 currency pairs is far better then being a jack of all pairs and a master of none.

3. Being lazy and not constantly learning.
People change, and markets based on people change with them. Forex changes all the time, what is a favoured currency, what isn't favoured can change week to week. My point here is not to only trade the news, my point is that the people who succceeded in making the $100k were always shaprpening their skills. This market can make you filthy rich so why wouldnt you spend the time learning all you can about it? I can never understand new traders who read a few books on Forex and think that their learning is finished. If you want to make money off Forex remember this, the cost of trading forex is Capital and Learning.

4. Only focusing on one time frame.
Last but not least here is something we probably all did as new traders. But the sooner you kick this habit the better off you will be. Let me give you an example. If a daily chart is showing an upward trend reversal, but on a 1 minute chart it is showing a strong start to an upward trend, if you are only focusing on the 1 minute chart you are going to lose a lot of chedder. My point here is simple, keep an eye on the overall picture at all times. Use 2 -3 different time period charts for a big picture and then use 1 to make your trading decision

the Forex Trading with FXCM

 

Forex Capital Markets (FXCM) is one of the leading desks of online Forex trading in the world. It gives a free Forex trading course and provides micro lots (which enable a trader to open an account for as less as $ 25). It also exploits daily FX, which is a world level news site. Additionally FXCM has a no dealing desk platform and lets you go for fractional pip pricing. Interesting indeed.

“Trade as you might, but trade you will”

Live clients playing in a real-time environment get free Forex trading signals. The clients can look to play from the charts, they can even trade through Meta trader 4 if they so like; though most of the clients go for the third option. This means trading through their proprietary software FX trading station.
Depending on the currency pair you are trading in and also the market liquidity at the given time, spreads can very well vary. Spreads can be as low as 1 pip and obviously taut fractional pip pricing is always there.
Its customer support is by far the best you can align to. They are pro-active and often initiate you on things you thought you needed to know.

“No dealing desk”

FXCM’s no dealing desk platform is a revelation. It passes orders to nine well-established banks. The NDD platforms leverage a trader to trade during period of high volatility and news without having to offer requotes. They can also look to place entry orders while being in the spread. A trader dealing with FXCM does not need to talk through a dealer. He can continue with his trading without any interference from the side of the dealer. Trade restrictions do not apply. The entire ambit of online Forex trading stretches ahead of a trader.

“Forex not well received yet”

In the past, stock trading got all the plaudits, few professional traders dealt in Forex but truly they were few and far between. Today, handsome opportunity being thrown by the major companies has changed all this. Imagine, they are trustworthy as they have a brand name to carry, at the same time they open a Diaspora of options for a trader.
FXCM gives a lot of stress to internal matching of trades. This means, that if a spread is 3 pips and FXCM is able to correlate a buyer and a seller then each would stand to gain three pips. The market scope charting package is another new wave technique that helps with trading pips on a nominal timeframe. So now you can choose to be present for a very short while and still trade Wall Street and Nikkei.

“Dangers pertaining to it”

There are few statutory warnings for Forex trading though. Off-exchange Forex Trading is considered to be a little dangerous anyways. It is more of a speculation and people are asked to adhere to it at their own risk. In fact, it is believed that a 15 percent profit rate for an active day trader is more than sound. Having said this, if a trader believes he can make his mark in Forex, FXCM can prove to be quite a foil

Exotics

 

Exotic currencies are the currencies which have limited dealings and very little liquidity. Exotic currencies are neither minor nor major currencies. Some of the minor currencies include Canadian Dollar, Australian Dollar and New Zealand Dollar. On the other hand, the minor currencies in the forex market are U.S. Dollars, Euro, Japanese Yen and Swiss Francs. The exotics play an extremely vital role in forex trading and are equally important as are the major currencies.

Few examples of the exotic currencies include Uruguay Peso, Thai Baht, and Iraqi dinari. It can often be extremely expensive of trade in exotic currencies as the bid-ask spread is usually quite large.
The role of the forex market as the one and only domain for financial institutions as well as major banks like the U.S. Federal Reserve is immensely important. The Forex market has been highly success in helping the banks and financial institutions makes substantial profit which is now offered to the common people. Most countries of the world have now become dependent on each other because of a hike in the foreign investments and worldwide trade.

The economic condition of a country can have a huge impact on the fluctuations of the value of the currency of that particular country as the various economic facts affect the currency’s rate of interest. Thus, the monetary health of a country is determined by the appreciation or depreciation of the value of the country’s currency.
Exotics terms and definitions
Geek: a Quant

Free floating currency: It stands for the currency that has an exchange rate which varies in comparison to other currencies.
Majors: The most widely traded and liquid currency pairs. Major currency trades constitute almost 90 percent of the Forex trading in total.

The top most traded currencies in the forex market are:

U.S. Dollars: The price index determine the relative strength of weakness of the Dollar. When the index figure is large, it means that the value of Dollar is stronger. In the same way, when the index figure is small, it indicates that the value of dollar has not depreciated.

Euro: The adoption of a single currencies by all countries of the European Union has sowed seeds of the creation of what is known as “Euroland”. In total, 11 countries of European Union use Euro as their currency including Spain, Italy, France, Belgium, Austria, Portugal, Luxembourg, Ireland, Finland, Germany and Netherlands. All these nations together have over 300 million people living in it and account for over 20 percent of the total world economy. It also represents the hugest foreign market of the world.
Japanese Yen: Japan continues to be the undisputed global power in economy even in today’s competitive marketplace. After the second world war, the government of Japan has applied all its resources and energy into the development of its economy. As a result of this, it has now become one of the largest economic power throughout the world. Thus, the Japanese Yen is also the 3rd most widely traded currency.
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Truth about Forex Robots

 

Forex is the worlds largest financial market where exchanges reach up to trillions of dollars each day. It is also the most liquid market in the world where trades are done 24 hours a day, 365 days a year. Many people would really want to participate in this market.

Who would'nt get attracted to trade in the largest financial market in the world?
If you are a regular person with a 9 to 5 job who is looking for a way to earn extra money, you should consider entering the Forex market and trade. However, it also has its risks and people who have traded in Forex without the proper knowledge and skill have lost large amounts of money. Some have suffered extreme financial losses. This is why it is crucial for you to have enough knowledge and skills when you trade in the Forex market.

Forex Advantages

 

 

Forex or Foreign Currency Exchange Trading has become more and more popular among the investors in the recent years. There are few reasons why many investors choose forex trading over other type of investment opportunities.
Unlimited Earning Potential

Everyday nearly $ 2 trillion in different currencies traded in the forex market. This has made the Forex market by far the biggest and the most liquid financial market in the world. Due to the size of the transaction volume it’s very hard to manipulate the market and your earning potential is unlimited. As such investing in Forex is one of the most stable financial businesses.

Forex Market Never Sleeps Forex Trading can be done any time of the day, day or night as the Forex market is a 24 hour market place. This is because the banking organizations are always open to customers in the varying time zones all over the world. This is desirable for many people who are looking for an opportunity to do during their spare time since most of them have their day jobs and they only can do their forex trading on part time basis from their home during the evening.

Transparency
The Forex markets are highly transparent where anyone can search for forex information such as real-time news and analysis online with a click. With this real-time information a Forex investor/trader can do their own analysis such as risk management strategy to avoid unexpected “suprises”.
Low Initial Investment A trader can participate in forex trading with a small account size (as low as $300.00). This is very good for newbie investors as some may want to “test market” with a small amount of capital.

No commission and exchange fees
No commission or transaction fee incurs in forex trading. Most brokers offer commission free trading. The only cost a forex trader has to pay in taking on a position is spread. The spread is the difference between the bid price (the price you sell at) and the ask price (the price you buy at). It’s quoted in pips (1/100 of one percent). In some transaction, it could be as low as 1 pips for some pairs.
Leverage

If you invest in stocks market the amount of stock you can traded is limited by how much the capital fund ie money you have. This is not the case in forex trading. In forex trading, traders are permitted to trade foreign currencies on a highly leveraged basis - up to 100 times their investment. For example, you only need about $100 to trade $10,000 of a currency for a margin lending ratio of 100:1. An average forex trader with a small trading account, says under $10,000 will be profit sufficiently from the movement of the currency exchange rate.

Profit in both rising and falling markets
In share market, an investor can only profit if the stock price goes up. When the stock price fall, the investor can either keep the stock hoping that the price will bounce back again in a later date or sell it off at loss. However in forex trading, traders can profit from both bull (rising) and bear (falling) markets. As forex trading involves selling one currency and buying another currency when you buy a particular currency, you are actually simultaneously selling the other currency in that particular pair. As the market moves, one of the currencies will increase in value versus the other- there is an equal opportunity for profit whether a market is rising or falling

Conclusion
With the above benefits, I believed that you are convinced that Foreign Currency trading is the best investment and income opportunity around. You do not need to be a rocket scientist, nor need a Degree or Diploma to trade in the forex market. Many of the forex traders have no financial knowledge before they involved in the forex trading business. However you need a proper training to guide you to become a success forex trader.

Forex Raptor

 

Forex Trading is one of the easiest way to make money online. The forex market are always open that is why the opportunity are huge. But there are lot of people who found it difficult to make real money trading the forex. Forex trading can be profitable but if only you will find the

right path and the right information in achieving your goal. One of the easiest way to earn huge income for life trading the forex market is to learn how to trade automatically. And how can you do that? There are lot of ready made system that has proven and tested by many trader to

siphon great cash. Many of the trading system that are currently out in the market are created based on the many trading experience of most elite trader. One of this automated trading system is the forex raptor.

Forex Bull Review

 

Forex Bull wasw created by David Harenson, this is the combination of his own expert advisors and the experience of three trading professionals. The system was the result of almost half a year of developing, testing and researching. The system is said to be proven, tested and formulated to give you huge trading profits.

What is the difference of Forex Bull to the many forex trading system online?
Forex Bull is a mathematic proven trading system trading automatically on the European Market! This is an automated forex trading system that you can use even if you have no forex trading lnowledge. The system also has a very solid money management that will protect you from losing money.

Forex Tracer
Forex Tracer has become a very popular Forex trading system. It is also touted as being one of the best selling Forex trading systems available.
I do want you to understand one thing before we continue to hear. My goal is to present to you the most objective review that I can based upon the information I am currently reading on Forex Tracer.
If you've been reading other reviews of Forex Tracer and other Forex trading systems it certainly seems that most reviewers are absolutely gaga over every single Forex trading system that becomes available. How can this be? Is it possible that everything that comes out in the Forex trading world works like magic? The answer is, "of course not".
So let me give you the straight scoop on Forex Tracer based upon my observations. In looking at the Forex Tracer sales material I see that it is billed as an automatic wealth building robot. Even I have to admit that sounds very appealing to me, I mean which one of us wouldn't want to build wealth automatically?

Start trade forex because it easy !

 

What is Forex Market?

* Allows quick glimpse to the world's largest financial market by trading basic workshops designed to expose
the merchant to starting the online world trade of goods, foreign currency metrics. This initial workshop
will provide a first step to the exciting world of trading adrenalin cross dry!  trade
against the information system advanced e-commerce all kind anywhere in the world.
you trade in front of e-commerce information system advanced its kind anywhere in the
world everything and forex become so easy.

* loyal to you as aforex broker identify trends and take advantage of market opportunities in the markets.
Forex market is one of the first markets of all the funds on the markets trading various privileged beginning in
ancient times. For many years Forex market was only for main banks and large financial but development into one of the biggest markets in parallel of Internet technology, office information
to participants such as investment funds, broker forex companies, institutions and private tunnels to the market,
especially thanks to this consciousness has spread about the options making significant profits for a short time
have made Forex trading attractive especially popular. As part of this trend is proud to be part of the
market would be to allow the audience a variety of investors sell the currency to buy a simple click of the button
from anywhere in the world.

How do I merchant?

Forex trading market is the largest financial market in the world with trade volume of U.S. $ 4 trillion a day. This
market is a market trading in different currencies around the world Hnshrim. This commercial is actually
forex broke buying and selling  currencies . Rate is measured relative to one currency to another currency, so we
coins. to buy a currency, we'll need to sell the other.

• loyal to you, you are the only forex broker buy and sell using your money

news updates in real time make forek trading so easy.

There are 8 coins forex broker easy leading merchants throughout the world which called "Majors".

Trading profit was the difference between the purchase price of sale price or vice versa.

Any pair of currencies, the currency has a primary and secondary currency. Will always be the main forex broker issue on
the left and currency will always be secondary to the right.

For example: EUR / USD Euro currency is the base rate is the secondary currency, If you want to buy the rate  we'll need to sell
the base currency which is the Euro. This transaction is called sale transaction (short) that why i recommend easy forex.
If you want to sell then the rate the Euro,
this transaction is called purchasing transaction (Long).
The reference is always the base currency? Use you forex broker tools!

Gates always refer to price a purchase / sale of a coin!

EUR / USD price of 1.3000 set the value of Euro 1 each is $ 1.30

Temporary trade:

Forex broker can worke at the market 24 hours a day 5 days a week spread across five continents.
What happens now?

U.S.: Industrial production in the U.S. -
Industrial Production fell in April at the rate of 0.5% after a decline of 1.7% last month.
Production Sector manufacturers fell in that period
at the rate of 0.3%, low in 16% and that recorded in December 2007.

Indicate that, in general, was the decline in manufacturing industries.
Production out of bounds, period rate fell 3.2%, resulting from
decline in oil fields. Rate of utilization - Capacity Utilization for all industries fell -69.1% in April.

CPI CPI in April left unchanged thanks to decrease prices and food that Hdlkim disable the immigration rate of 0.3% core index. It is important to
note that, in the past two months the general index went negative, compared with a steady increase in the core index since the beginning of the year.

Europe: local Raw surprised GDP in Europe against the first quadrant of the Year 1Q. התוצר Rabi 1Q dropped at the rate of 2.5% compared to the same
period last year and a decrease of 1.6% last Rabi 4Q last year.

Inflation countries in the Euro block position in April 2009 to 0.6%, unchanged last month.

Forex trading strategy

 

There are a lot of people buy foreign currency acquaintances some lose and some gain. Is there a strategy orderly trading, Forex is the field that has evolved a lot years ago and unrelated to market share, although some can also remind us not to convert currency bank or anywhere another flight before the annual canopy.
In order to clarify the number of types of strategies choose  Commerce

1. Strategy humanity.

2. Computerized.

3. emotional.

There is no doubt that the world's rich content, which are special content and a lot of shortcuts.
Only successful stockbroker can tell strategy Commerce is a good, all different strategy is similar to other late trading  what the thing is if you have a profit or a loss of money.

The Factor to choose Forex Broker

 

Before selecting an online Forex broker, you should closely examine their features and
policies. These include:

• Available Currency Pairs
You should confirm that the prospective broker offers, at minimum, the seven major currencies (AUD, CAD, CHF, EUR, GBP, JPY, and USD).

• Transaction Costs
Transaction costs are calculated in pips. The lower the number of pips required per trade by the broker, the greater the profit that the trader makes. Comparing pip spreads of half dozen brokers will reveal different transaction costs. For example, the bid/ask spread for EUR/USD is usually 3 pips, but if you can find 2 pips, that’s even better.

• Margin Requirement
The lower the margin requirement (meaning the higher the leverage), the greater the potential for higher profits and losses. Margin percentages vary from .25% and up. Low margin requirements are great when your trades are good, but not so great when you are wrong. Be realistic about margins and remember that they swing both ways.

• Minimum Trading Size Requirement
The size of one lot may differ from broker to broker, spanning 1,000, 10,000, and 100,000 units. A lot consisting of 100,000 units is called a “standard” lot. A lot consisting of 10,000 units is called a “mini” lot. A lot consisting of 1,000 units is called a “micro” lot. Some brokers even offer fractional unit sizes (called odd lots) which allow you create your own unit size.

• Rollover Charges
Rollover charges are determined by the difference between the interest rate of the country of the base currency and the interest rates of the other country. The greater the interest rate differential between the two currencies in the currency pair, the greater the rollover charge will be. For example, when trading GBP/USD, if the British pound has the greater interest differential with the U.S. dollar, then the rollover charge for holding British pound positions would be the most expensive. On the other hand, if the Swiss Franc were to have the smallest interest differential to the U.S. dollar, then overnight charges for USD/CHF would be the least expensive of the currency pairs.

• Margin Account Interest Rate
Most brokers pay interest on a trader’s margin account. The interest rates normally fluctuate with the prevailing national rates. If you decide to take an extended break from trading, the money in your margin account will be accruing interest. Keep in mind that most brokers DO NOT allow you to accrue interest unless your margin requirement is at least 2% (50:1).

• Trading Hours
Nearly all brokers align their hours of operation to coincide with the hours of operation of the global Forex market: 5:00 pm EST Sunday through 4:00 pm EST Friday.
Other Policies
Be sure to scrutinize a prospective broker’s “fine print” section to be fully aware of all the nuances that a specific broker may impose on a new trader. Finding the right broker is a critical part of the process. It’s not easy and requires some real work on your part. Don’t pick the first one that looks good to you. Keep looking and trying different demo accounts.

Fibonacci

 

We owe a debt of gratitude to the Italian mathematician Leonardo Pisano (1170-1250) Best known by his nickname, Fibonacci (he also went by "Bigollo," which may have meant "wandering good-fornothing"), he wrote the famous book, Liber abaci(1202). In it, he introduced to Europe the HinduArabic place-valued decimal system and Arabic. He also discussed mathematical problems that resulted in what we now call the Fibonacci summation sequence and the ratios derived from it. Here's one of the most important problems Pisano posed, and the result. Although the question sounds lighthearted, the answer has produced serious resolutions. "If one places a rabbit couple in an enclosed place, how many rabbits would one obtain after a certain time assuming they reproduce once per month, and that those born can reproduce at the age of a month?" The following infinite progression (now called Fibonacci numbers), results: 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, and 144, after each month. You'll notice that Fibonacci numbers run in a sequence. Each successive number equals the sum of the two previous numbers: 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, and so forth. The interrelationships between these numbers are intriguing. First, starting with the number five, any of these numbers equals approximately 1.618 times the preceding number. Second, any number equals approximately 0.618 times the subsequent number. Cool, huh? It's remarkable that so many objects formed in Fibonacci proportions occur throughout nature, including butterflies, sea shells, and spiral galaxies. The pentagram, Christian crucifix, and Pythagorean triangles also contain these proportions, as well as the art pieces of Leonardo da Vinci and Michelangelo. The four popular Fibonacci studies used by traders include arcs, fans, retracements, and time zones. Most charting software programs include Fibonacci retracements. Some of the more advanced programs utilize arcs, fans, and time zones. For now, we'll look at retracements.

What you need to know about Fibonacci retracements: Slocks.·often
Fibonacci ratios are gauged at 38.2 percent, 50.0 percent, and 61.8 percent, and are considered a leading indicator (predicting possible future price action).
Your job is to draw an uptrend (or downtrend) line, connecting a major peak and trough. Then, activate your charting software's Fibonacci retracement option. Start at the bottom of the trendline and drag your cursor to the top of the trend. (Fancy charting programs will include a 23.6 percent line.) You'll see five horizontal lines, representing 0.0 percent, then 38.2, 50, 61.8, and 100 percent of the entire move, or trend.
These levels act as support and resistance areas.

Since so many traders use Fibonacci retracement levels for guidance, some support/resistance action may be a self fulfilling prophecy. Still, it's positively uncanny how many times a stock in an uptrend will pull back to a Fibonacci level, then bounce. Or, a stock in a downtrend will rebound to a Fibonacci level, and then begin its fall anew. Some traders use "Fib ratios" by placing their stop-loss points a quarter-point below a stock's 61.8 percent retracement level from the previous high. Remember, though, that no indicator in this world predicts future price movement with absolute accuracy. Just because your stock happens to be heading for a Fibonacci retracement level is no guarantee it's going to halt there and bounce. It could just as easily slice right through it. Indicators-no matter what flavor-are just that. They indicate. Please don't use them as an excuse to stay in a losing position!

Relative Strength Index

 

The RSI, or Relative Strength Index, is a misleading moniker for this reliable oscillator. When we speak of an equity's relative strength, many times we refer to its health as it relates to a broad market index such as the S&P 500, or the industry index where the stock resides, like the semiconductor index ($SOX.X) or the pharmaceutical index ($DRG.X).
The RSI does not compare two separate entities. Introduced by Welles Wilder in the June 1978 issue of Commodities (now Futures) magazine, and in his book published in the same year, New Concepts in Technical Trading Systems, the RSI operates as an oscillator that measures a particular stock's current relative strength as compared to its'own price history. When Wilder first introduced the RSI, he recommended using a 14-day time period. Now, 9-day and 25day RSIs are also favorites. The RSI is one of my preferred oscillators, and we're going to use it in our buying criteria. For multi-day to multiweek holds, the 14-day parameter works well (and is standard in most charting software). So, please stick to that time parameter for now. As you gain more experience, you may want to tweak the setting to a faster, or slower, time period.
As a price-following oscillator, the RSI is plotted on a vertical scale numbered from 1 to 100. It's considered to be oversold when it falls below 25, and overbought when it rises over 75.

Dandy features of the RSI are:
The RSI forms chart patterns, such as a double top or head-and-shoulders, which may not show up in the stock's price pattern.
The RSI may indicate support and resistance levels more clearly than the stock's price pattern.
The RSI makes a fantastic buy/sell decision support tool when it diverges from the stock's price action. For example, the stock may make a new high, but the RSI does not. That's bearish. Or, the price may tumble to a new low, while the RSI moves sideways or up. That's bullish. Prices usually follow the direction taken by the RSI.
To incorporate the RSI into your buy/sell criteria, you'll add it to the signals we already have in place, meaning the 1-2-3 entries, strong volume on the breakout, and price bouncing off a major moving average (such as the 20-day, 40-day, or 50day MAs). Now add the RSI. When you enter a position, you want it to appear in one of these ways:
Oversold, and hooking up from below 30.
Hooking up from below 50 and in an uptrend (making higher lows and higher highs).
Making a bullish divergence by rising when the stock price is consolidating, or pulling back, in the course of

SMA Indicator

A simple moving average is the simplest type of moving average (DUH!). Basically, a simple moving average is calculated by adding up the last “X” period’s closing prices and then dividing that number by X. If you plotted a 5 period simple moving average on a 1 hour chart, you would add up the closing prices for the last 5 hours, and then divide that number by 5. If you were to plot a 5 period simple moving average on a 10 minute chart, you would add up the closing prices of the last 50 minutes and then divide that number by 5. If you were to plot a 5 period simple moving average on a 30 minute chart, you would add up the closing prices of the last 150 minutes and then divide that number by 5. If you were to plot the 5 period simple moving average on the a 4 hr. Most charting packages will do all the calculations for you. The reason we just bored you with how to calculate a simple moving average is because it is important that you understand how the moving averages are calculated. If you understand how each moving average is calculated, you can make your own decision as to which type is better for you.Just like any indicator out there, moving averages operate with a delay. Because you are taking the averages of the price, you are really only seeing a “forecast” of the future price and not a concrete view of the future.

Moving Average Convergence-Divergence

 

Traders· fondly refer to the MACD as "the mac-dee." The acronym stands for "moving average convergence-divergence" (say that fast three times!). Multifaceted, the MACD not only acts as an indicator, it also plays the role of an oscillator. Developed by Gerald Appel, publisher of Systems and Forecasts, the MACD is a trend-following momentum indicator/oscillator that illustrates the relationship between the 26-day and 12-day exponential moving averages of an equity's price pattern. A 9-day exponential moving average, referred to as the "signal line," overlays the MACD and indicates buy/sell setups.

Since the MACD is a "lagging" indicator, meaning it delivers signals from information that's already taken place (the S&P and Nasdaq 100 futures are "leading" indicators), it is best used in strongly rending markets. Because the traditional MACD usually arrives a bit late to the party (read: trend reversal), short-term traders may leave money on the table by adhering strictly to its signals. To obtain faster signals, I recommend using the MACD histogram, available on most charting programs. The MACD Histogram (MACD-H) represents the difference between the MACD and its 9-day exponential MA. Don't worry if your brain tangles over that one. Your charting program understands it! Just insert it on your chart, above the volume indicator. The MACD-H will snake above and below its zero line, moving into positive (above zero) or negative (below zero) territory.
MACD-H signals are:

Crossovers. Buy signal (bullish) equals when the MACD-H rises above its zero line. Sell signal (bearish) equals when the MACD-H tumbles below the zero line.
Overbought/oversold indicators. As an overbought/oversold oscillator, when the MACD-H rises to the top of its scale and resembles a majestic mountain, the stock may. be overbought and ready to pullback. When the MACD-H edges below the zero line and digs a deep scoop to the downside, the stock is oversold. WQen the histogram bars shorten and edge back up, the stock should be preparing to bounce.Fun to do: Use a MACD-H on a weekly chart to generate a long-term buy/sell signal. Then, go to a daily chart of the same stock, and only trade in the direction of that longer-term signal.

Candle Stick

 

What is a Candlestick?
Back in the day when Godzilla was still a cute little lizard, the Japanese created their own old school version of technical analysis to trade rice. A westerner by the name of Steve Nison “discovered” this secret technique on how to read charts from a fellow Japanese broker and Japanese candlesticks lived happily ever after. Steve researched, studied, lived, breathed, ate candlesticks, began writing about it and slowly grew in popularity in 90s. To make a long story short, without Steve Nison, candle charts might have remained a buried secret. Steve Nison is Mr. Candlestick.

Candlestick Charts
Candlestick charts show the same information as a bar chart, but in a prettier, graphic format.Candlestick bars still indicate the high-to-low range with a vertical line. However, incandlestick charting, the larger block in the middle indicates the range between theopening and closing prices. Traditionally, if the block in the middle is filled or colored in,then the currency closed lower than it opened.
In the following example, the ‘filled color’ is black. For our ‘filled’ blocks, the top of the
block is the opening price, and the bottom of the block is the closing price. If the closing
price is higher than the opening price, then the block in the middle will be “white” or
hollow or unfilled.
Candlesticks are formed using the open, high, low and close.
• If the close is above the open, then a hollow candlestick (usually displayed as white) is drawn.
• If the close is below the open, then a filled candlestick (usually displayed as black) is drawn.
• The hollow or filled section of the candlestick is called the “real body” or body.
• The thin lines poking above and below the body display the high/low range and are called shadows.
• The top of the upper shadow is the “high”.
• The bottom of the lower shadow is the “low”.

Just like humans, candlesticks have different body sizes. And when it comes to forex trading, there’s nothing naughtier than checking out the bodies of candlesticks!
Long bodies indicate strong buying or selling. The longer the body is, the more intense the buying or selling pressure. Short bodies imply very little buying or selling activity. In street forex lingo, bulls mean buyers and bears mean sellers.
Long white candlesticks show strong buying pressure. The longer the white candlestick, the further the close is above the open. This indicates that prices increased considerably from open to close and buyers were aggressive. In other words, the bulls are kicking the bears’ butts big time!

Long black (filled) candlesticks show strong selling pressure. The longer the black candlestick, the further the close is below the open. This indicates that prices fell a great deal from the open and sellers were aggressive. In other words, the bears were grabbing the bulls by their horns and body slamming them.
Mysterious Shadows
The upper and lower shadows on candlesticks provide important clues about the trading
session.
Upper shadows signify the session high. Lower shadows signify the session low. Candlesticks with long shadows show that trading action occurred well past the open and close.
Candlesticks with short shadows indicate that most of the trading action was confined near the open and close. If a candlestick has a long upper shadow and short lower shadow, this means that buyers flexed their muscles and bided prices higher, but for one reason or another, sellers came in and drove prices
Sounds like some kind of voodoo magic huh? "I will cast the evil spell of the Marubozu on you!" Fortunately, that's not what it means. Marubozu means there are no shadows from the bodies. Depending on whether the candlestick’s body is filled or hollow, the high and low are the same as it’s open or close. If you look at the picture below, there are two types of Marubozus.
A White Marubozu contains a long white body with no shadows. The open price equals the low price and the close price equals the high price. This is a very bullish candle as it shows that buyers were in control the whole entire session. It usually becomes the first part of a bullish continuation or a bullish reversal pattern. A Black Marubozu contains a long black body with no shadows. The open equals the high and the close equals the low. This is a very bearish candle as it shows that sellers controlled the price action the
whole entire session. It usually implies bearish continuation or bearish reversal.
Doji
Doji candlesticks have the same open and close price or at least their bodies are extremely short. The doji should have a very small body that appears as a thin line. Doji suggest indecision or a struggle for turf positioning between buyers and sellers. Prices move above and below the open price during the session, but close at or very near the
open price. Neither buyers nor sellers were able to gain control and the result was essentially a draw. There are four special types of Doji lines. The length of the upper and lower shadows can vary and the resulting candlestick looks like a cross, inverted cross or plus sign. The word "Doji" refers to both the singular and plural form.
When a doji forms on your chart, pay special attention to the preceding candlesticks. If a doji forms after a series of candlesticks with long filled bodies (like white marubozus), the doji signals that the buyers are becoming exhausted and weakening. In order for price to continue rising, more buyers are needed but there aren’t anymore! Sellers are licking their chops and are looking to come in and drive the price back down. Keep in mind that even after a doji forms, this doesn’t mean to automatically short. Confirmation is still needed. Wait for a bearish candlestick to close below the long white candlestick’s open. If a doji forms after a series of candlesticks with long hollow bodies (like black marubozus), the doji signals that sellers are becoming exhausted and weakening. In order for price to continue falling, moresellers are needed but sellers are all tapped out! Buyers are foaming in the While the decline is sputtering due to lack
of new sellers, further buying strength is required to confirm any reversal. Look fora white candlestick to close above the long black candlestick’s open.

Some Definition in Forex

 

Ask Price ¨C Sometimes called the Offer Price, this is the market price for traders to buy currencies. Ask Prices are shown on the right side of a quote ¨C e.g. EUR/USD 1.1965 / 68 ¨C means that one euro can be bought for 1.1968 UD dollars.Bar Chart ¨C A type of chart used in Technical Analysis. Each time division on the chart is displayed as a vertical bar which show the following information ¨C the top of the bar is the high price, the bottom of the bar is the low price, the horizontal line on the left of the bar shows the opening price and the horizontal line on the right of bar shows the closing price.Base Currency ¨C is the first currency in a currency pair. A quote shows how much the base currency is worth in the quote (second) currency. For example, in the quote - USD/JPY 112.13 ¨C US dollars are the base currency, with 1 US dollar being worth 112.13 Japanese yen.Bid Price ¨C is the price a trader can sell currencies. The Bid Price is shown on the left side of a quote - e.g. EUR/USD 1.1965 / 68 ¨C means that one euro can be sold for 1.1965 UD dollars.Bid/Ask Spread ¨C is the difference between the bid price and the ask price in any currency quotation. The spread represents the broker's fee, and varies from broker to broker.Broker ¨C the intermediary between buyer and seller. Most FOREX brokers are associated with large financial institutions and earn money by setting a spread between bid and ask prices.Candlestick Chart - A type of chart used in Technical Analysis. Each time division on the chart is displayed as a candlestick ¨C a red or green vertical bar with extensions above and below the candlestick body. The top of the extension shows the highest price for the chart division and the bottom of the extension shows the lowest price. Red candlesticks indicate a lower closing price than opening price, and green candlesticks indicate the price is rising.Cross Currency ¨C A currency pair that does not include US dollars ¨C e.g. EUR/GBP.Currency Pair ¨C Two currencies involved in a FOREX transaction ¨C e.g. EUR/USD.Economic Indicator ¨C A statistical report issued by governments or academic institutions indicating economic conditions within a country.First In First Out (FIFO) ¨C refers to the order open orders are liquidated. The first orders to be liquidated are the first that were opened.Foreign Exchange (FOREX, FX) ¨C Simultaneously buying one currency and selling another.Fundamental Analysis ¨C Analysis of political and economic conditions that can affect currency prices.Leverage or Margin ¨C The ratio of the value of a transaction to the required deposit. A common margin for FOREX trading is 100:1 ¨C you can trade currency worth 100 times the amount of your deposit.Limit Order ¨C An order to buy or sell when the price reaches a specified level.Lot ¨C The size of a FOREX transaction. Standard lots are worth about 100,000 US dollars.Major Currency ¨C The euro, German mark, Swiss franc, British pound, and the Japanese yen are the major currencies.Minor Currency ¨C The Canadian dollar, the Australian dollar, and the New Zealand dollar are the minor currencies.One Cancels the Other (OCO) ¨C Two orders placed simultaneously with instructions to cancel the second order on execution of the first.Open Position ¨C An active trade that has not been closed.Pips or Points ¨C The smallest unit a currency can be traded in.Quote Currency ¨C The second currency in a currency pair. In the currency pair USD/EUR the euro is the quote currency.Rollover ¨C Extending the settlement time of spot deals to the current delivery date. The cost of rollover is calculated using swap points based on interest rate differentials.Technical Analysis ¨C Analysis of historical market data to predict future movements in the market.Tick ¨C The minimum change in price.Transaction Cost ¨C The cost of a FOREX transaction ¨C typically the spread between bid and ask prices.Volatility ¨C A statistical measure indicating the tendency of sharp price movements within a period of time.

How To Make Forex Order

 

There are some basic order types that all brokers provide and some others that sound
weird. The basic ones are:

• Market order
A market order is an order to buy or sell at the current market price. For example,EUR/USD is currently trading at 1.2140. If you wanted to buy at this exact price, you would click buy and your trading platform would instantly execute a buy order at that exact price. If you ever shop on Amazon.com, it's (kinda) like using their 1-Click ordering. You like thecurrent price, you click once and it's yours! The only difference is you are buying or selling one currency against another currency instead of buying Britney Spears CDs.

• Limit order
A limit order is an order placed to buy or sell at a certain price. The order essentially contains two variables, price and duration. For example, EUR/USD is currently trading at 1.2050. You want to go long if the price reaches 1.2070. You can either sit in front of your monitor and wait for it to hit 1.2070 (at which point you would click a buy market order), or you can set a buy limit order at 1.2070 (then you could walk away from your computer to attend your ballroom dancing class). If the price goes up to 1.2070, your trading platform will automatically execute a buy order at that exact price. You specify the price atwhich you wish to buy/sell a certain currency pair and also specify how long you want the order to remain active (GTC or GFD).

• Stop-loss order
A stop-loss order is a limit order linked to an open trade for the purpose of preventing additional losses if price goes against you. A stop-loss order remains in effect until the position is liquidated or you cancel the stop-loss order. For example, you went long (buy) EUR/USD at 1.2230. To limit your maximum loss, you set a stop-loss order at 1.2200. This means if you were dead wrong and EUR/USD drops to 1.2200 instead of moving up, your trading platform would automatically execute a sell order at 1.2200 and close out your position for a 30 pip loss (eww!). Stop-losses are extremely useful if you don't want to sit in front of your monitor all day worried that you will lose all your money. You can simply set a stop-loss order on any open positions so you won't miss your basket weaving class.

• GTC (Good ‘til canceled)
A GTC order remains active in the market until you decide to cancel it. Your broker will not cancel the order at any time. Therefore it's your responsibility to remember that you have the order scheduled.

• GFD (Good for the day)
A GFD order remains active in the market until the end of the trading day. Because foreign exchange is a 24-hour market, this usually means 5pm EST since that that's U.S. markets close, but I’d recommend you double check with your broker.

• OCO (Order cancels other)
An OCO order is a mixture of two limit and/or stop-loss orders. Two orders with price and duration variables are placed above and below the current price. When one of the orders is executed the other order is canceled. Example: The price of EUR/USD is 1.2040. You want to either buy at 1.2095 over the resistance level in anticipation of a breakout or initiate a selling position if the price falls below 1.1985. The understanding is that if 1.2095 is reached, you will buy order will be triggered and the 1.1985 sell order will be automatically canceled.

How To Trade in Forex

 

The FX market, you buy or sell currencies. Placing a trade in the foreign exchange market is simple: the mechanics of a trade are very similar to those found in other markets (like the stock market), so if you have any experience in trading, you should be able to pick it up pretty quickly.

The object of Forex trading is to exchange one currency for another in the expectation that the price will change, so that the currency you bought will increase in value compared to the one you sold.
Example of making money by buying Euros
Trader's Action EUR USD You purchase 10,000 euros at the EUR/USD exchange rate of 1.18
Two weeks later, you exchange your 10,000 euros back into US dollars at the exchange rate of 1.2500.
you earn a profit of $700. 0 +700

EUR $10,000 x 1.18 = US $11,800
EUR $10,000 x 1.25 = US $12,500

An exchange rate is simply the ratio of one currency valued against another currency. For example, the USD/CHF exchange rate indicates how many U.S. dollars can purchase one Swiss franc, or how many Swiss francs you need to buy one U.S. dollar. How to Read an FX Quote Currencies are always quoted in pairs, such as GBP/USD or USD/JPY. The reason they are quoted in pairs is because in every foreign exchange transaction you are simultaneously buying one currency and selling another. Here is an example of a foreign exchange rate for the British pound versus the U.S. dollar:

GBP/USD = 1.7500

The first listed currency to the left of the slash ("/") is known as the base currency (in this example, the British pound), while the second one on the right is called the counter or quote currency (in this example, the U.S. dollar). When buying, the exchange rate tells you how much you have to pay in units of the quote currency to buy one unit of the base currency. In the example above, you have to pay 1.7500 U.S. dollar to buy 1 British pound. When selling, the exchange rate tells you how many units of the quote currency you get for selling one unit of the base currency. In the example above, you will receive 1.7500 U.S. dollars when you sell 1 British pound. The base currency is the “basis” for the buy or the sell. If you buy EUR/USD this simply
means that you are buying the base currency and simultaneously selling the quote currency.
You would buy the pair if you believe the base currency will appreciate (go up) relative to the quote currency. You would sell the pair if you think the base currency will depreciate (go down) relative to the quote currency.

Long/Short
First, you should determine whether you want to buy or sell. If you want to buy (which actually means buy the base currency and sell the quote currency), you want the base currency to rise in value and then you would sell it back at a higher price. In trader's talk, this is called "going long" or taking a "long position". Just remember: long = buy.
If you want to sell (which actually means sell the base currency and buy the quote currency), you want the base currency to fall in value and then you would buy it back at a lower price. This is called "going short" or taking a "short position". Short = sell. Bid/Ask Spread
All Forex quotes include a two-way price, the bid and ask. The bid is always lower than the ask price. The bid is the price in which the dealer is willing to buy the base currency in exchange for the quote currency. This means the bid is the price at which you (as the trader) will sell. The ask is the price at which the dealer will sell the base currency in exchange for the quote currency. This means the ask is the price at which you will buy. The difference between the bid and the ask price is popularly known as the spread. Let's take a look at an example of a price quote taken from a trading platform:
On this GBP/USD quote, the bid price is 1.7445 and the ask price
is 1.7449. Look at how this broker makes it so easy for you to
trade away your money.
If you want to sell GBP, you click "Sell" and you will sell pounds
at 1.7445. If you want to buy GBP, you click "Buy" and you will
buy pounds at 1.7449.
In the following examples, we're going to use fundamental analysis to help us decide whether to buy or sell a specific currency pair. If you always fell asleep during your economics class or just flat out skipped economics class, don’t worry! We will cover fundamental analysis in a later lesson. For right now, try to pretend you know what’s going on…

EUR/USD
In this example Euro is the base currency and thus the “basis” for the buy/sell. If you believe that the US economy will continue to weaken, which is bad for the US dollar, you would execute a BUY EUR/USD order. By doing so you have bought euros in the expectation that they will rise versus the US dollar. if you believe that the US economy is strong and the euro will weaken against the US dollar you would execute a SELL EUR/USD order. By doing so you have sold Euros in the expectation that they will fall versus the US dollar.

USD/JPY
In this example the US dollar is the base currency and thus the “basis” for the buy/sell. If you think that the Japanese government is going to weaken the Yen in order to help its export industry, you would execute a BUY USD/JPY order. By doing so you have bought U.S dollars in the expectation that they will rise versus the Japanese yen. If you believe that Japanese investors are pulling money out of U.S. financial markets and converting all their U.S. dollars back to Yen, and this will hurt the US dollar, you would execute a SELL USD/JPY order. By doing so you have sold U.S dollars in the expectation that they will depreciate against the Japanese yen.

GBP/USD
In this example the GBP is the base currency and thus the “basis” for the buy/sell. If you think the British economy will continue to do better than the United States in terms of economic growth, you would execute a BUY GBP/USD order. By doing so you have bought pounds in the expectation that they will rise versus the US dollar. If you believe the British's economy is slowing while the United State's economy remains strong like bull, you would execute a SELL GBP/USD order. By doing so you have sold pounds in the expectation that they will depreciate against the US dollar.

USD/CHF
In this example the USD is the base currency and thus the “basis” for the buy/sell. If you think the Swiss franc is overvalued, you would execute a BUY USD/CHF order. By doing so you have bought US dollars in the expectation that they will appreciate versus the Swiss Franc. If you believe that the US housing market bubble burst will hurt future economic growth, which will weaken the dollar, you would execute a SELL USD/CHF order. By doing so you have sold US dollars in the expectation that they will depreciate against the Swiss franc. I don't have enough money to buy $10,000 euros. Can I still trade?
You can with margin trading! Margin trading is simply the term used for trading with borrowed capital. This is how you're able to open $10,000 or $100,000 positions with as little as $50 or $1,000. You can conduct relatively large transactions, very quickly and cheaply, with a small amount of initial capital. Margin trading in the foreign exchange market is quantified in “lots”. For now, just think of the term "lot" as the minimum amount of currency you have to buy. When you go to the grocery store and want to buy an egg, you can't just buy a single egg; they come in dozens or "lots" of 12. In Forex, it would be just as foolish to buy or sell $1 EUR, so they usually come in "lots" of $10,000 or $100,000 depending on the type of account you have.
For Example:
• You believe that signals in the market are indicating that the British Pound will go up
against the US Dollar.
• You open 1 lot ($100,000) for buying the Pound with a 1% margin at the price of
1.5000 and wait for the exchange rate to climb. This means you now control $100,000
worth of British Pound with $1,000. Your predictions come true and you decide to
sell.
• You close the position at 1.5050. You earn 50 pips or about $500. (A pip is the
smallest price movement available in a currency). So for an initial capital investment
of $1,000, you have made 50% return. Return equals your $500 profit divided by your
$1,000 you risked to trade.
Your Actions GBP USD
Your Money
You buy 100,000 pounds at the GBP/USD exchange
rate of 1.5000
+100,000 -150,000 $1,000
You blink for two seconds and the GBP/USD
exchange rate rises to 1.5050 and you sell.
-100,000 +150,500** $1,500
You have earned a profit of $500. 0 +500
When you decide to close a position, the deposit that you originally made is returned to you and a calculation of your profits or losses is done. This profit or loss is then credited to your account.
We will also be discussing margin more in-depth in the next lesson, but hopefully you're
able to get a basic idea of how margin works

The Advantage of Forex

 

There are many benefits and advantages to trading Forex. Here are just a few reasons why
so many people are choosing this market:

• No commissions.
No clearing fees, no exchange fees, no government fees, no brokerage fees. Brokers are compensated for their services through something called the bid-ask spread.

• No middlemen.
Spot currency trading eliminates the middlemen, and allows you to trade directly with the market responsible for the pricing on a particular currency pair.

• No fixed lot size.
In the futures markets, lot or contract sizes are determined by the exchanges. A standard-size contract for silver futures is 5000 ounces. In spot Forex, you determine your own lot size. This allows traders to participate with accounts as small as $250 (although we explain later why a $250 account is a bad idea).

• Low transaction costs.
The retail transaction cost (the bid/ask spread) is typically less than 0.1 percent under normal market conditions. At larger dealers, the spread could be as low as .07 percent. Of course this depends on your leverage and all will be explained later.

• A 24-hour market.
There is no waiting for the opening bell - from Sunday evening to Friday afternoon EST, the Forex market never sleeps. This is awesome for those who want to trade on a part-time basis, because you can choose when you want to trade--morning, noon or night.

• No one can corner the market.
The foreign exchange market is so huge and has so many participants that no single entity (not even a central bank) can control the market price for an extended period of time.

• Leverage.
In Forex trading, a small margin deposit can control a much larger total contract value. Leverage gives the trader the ability to make nice profits, and at the same time keep risk capital to a minimum. For example, Forex brokers offer 200 to 1 leverage, which means that a $50 dollar margin deposit would enable a trader to buy or sell $10,000 worth of currencies. Similarly, with $500 dollars, one could trade with $100,000 dollars and so on. But leverage is a double-edged sword. Without proper risk management, this high degree of leverage can lead to large losses as well as gains.

• High Liquidity.
Because the Forex Market is so enormous, it is also extremely liquid. This means that under normal market conditions, with a click of a mouse you can instantaneously buy and sell at will. You are never "stuck" in a trade. You can even set your online trading platform to automatically close your position at your desired profit level (a limit order), and/or close a trade if a trade is going against you (a stop loss order).

• Free “Demo” Accounts, News, Charts, and Analysis.
Most online Forex brokers offer 'demo' accounts to practice trading, along with breaking Forex news and charting services. All free! These are very valuable resources for “poor” and SMART
traders who would like to hone their trading skills with 'play' money before opening a live trading account and risking real money.

• “Mini” and “Micro” Trading:
You would think that getting started as a currency trader would cost a ton of money. The fact is, compared to trading stocks, options or futures, it doesn't. Online Forex brokers offer "mini" and “micro” trading accounts, some with a minimum account deposit of $300 or less. Now we're not saying you should open an account with the bare minimum but it does makes Forex much more accessible to the average (poorer) individual who doesn't have a lot of start-up trading capital.

Online Trading (Trading Currency and Stock Trading)

 

Forex Knowledge is what I say to explain all about Forex. This blog will give anything information about Forex such forex indikator, forex strategy, forex broker, forex tutorial, ebook forex, and all information about forex. So let's start increase your forex knowledge with this introduction.

What is FOREX? The Foreign Exchange market, also referred to as the "FOREX" or "Forex" or "Retail forex" or “FX” or "Spot FX" or just "Spot" is the largest financial market in the world, with a volume of over $2 trillion a day. If you compare that to the $25 billion a day volume that the New York Stock Exchange trades, you can easily see how enormous the Foreign Exchange really is. It actually eq9 P a g e uates to more than three times the total amount of the stocks and futures markets combined! Forex rocks! What is traded on the Foreign Exchange? The simple answer is money. Forex trading is the simultaneous buying of one currency and the selling of another. Currencies are traded through a broker or dealer, and are traded in pairs; for example the Euro dollar and the US dollar (EUR/USD) or the British pound and the Japanese Yen (GBP/JPY). Because you're not buying anything physical, this kind of trading can be confusing. Think of buying a currency as buying a share in a particular country. When you buy, say, Japanese Yen, you are in effect buying a share in the Japanese economy, as the price of the currency is a direct reflection of what the market thinks about the current and future health of the Japanese economy. In general, the exchange rate of a currency versus other currencies is a reflection of the condition of that country's economy, compared to the other countries' economies. Unlike other financial markets like the New York Stock Exchange, the Forex spot market has neither a physical location nor a central exchange. The Forex market is considered an Over-the-Counter (OTC) or 'Interbank' market, due to the fact that the entire market is run electronically, within a network of banks, continuously over a 24-hour period. Until the late 1990’s, only the “big guys” could play this game. The initial requirement was that you could trade only if you had about ten to fifty million bucks to start with! Forex was originally intended to be used by bankers and large institutions - and not by us “little guys”. However, because of the rise of the Internet, online Forex trading firms are now able to offer trading accounts to 'retail' traders like us. All you need to get started is a computer, a high-speed Internet connection, and the information contained within this site.

What is a Spot Market? A spot market is any market that deals in the current price of a financial instrument. Which Currencies Are Traded? The most popular currencies along with their symbols are shown below: Symbol Country Currency Nickname USD United States Dollar Buck EUR Euro members Euro Fiber JPY Japan Yen Yen GBP Great Britain Pound Cable CHF Switzerland Franc Swissy CAD Canada Dollar Loonie AUD Australia Dollar Aussie NZD New Zealand Dollar Kiwi Forex currency symbols are always three letters, where the first two letters identify the name of the country and the third letter identifies the name of that country’s currency. When Can Currencies Be Traded? The spot FX market is unique within the world markets. It’s like a Super Wal-Mart where the market is open 24-hours a day. At any time, somewhere around the world a financial center is open for business, and banks and other institutions exchange currencies every hour of the day and night with generally only minor gaps on the weekend. The foreign exchange markets follow the sun around the world, so you can trade late at night (if you’re a vampire) or in the morning (if you’re an early bird). Keep in mind though, the early bird doesn’t necessarily get the worm in this market - you might get the worm but a bigger, nastier bird of prey can sneak up and eat you too… Time Zone New York GMT Tokyo Open 7:00 pm 0:00 Tokyo Close 4:00 am 9:00 London Open 3:00 am 8:00 London Close 12:00 pm 17:00 New York Open 8:00 am 13:00 New York Close 5:00 pm 22:00 source: school of pipsology

Smart Forex Live

 

The Forex trading market is one of the best places to invest your money in—that is if you know how to. And when it comes to making a lot of money, it doesn’t take a genius to figure out ways and means on how to do so easily.

Everybody is aware though about hundreds and thousands of individuals who are just so lucky enough that they don’t have to think about tricks and techniques on how to get rich. There’s the McDonald’s waiter who won the recent lottery jackpot and the long-lost grandson of some dying

billionaire or the housemaid who marries the boss and these kinds of stories go on and on and on. But when it comes making a lot of money on the Forex market, Forex software reviews say nothing should be depended on trust alone. It is vital to understand the importance of how to be able to come up with the best means to cope up with the very competitive world of money-making in the Forex industry. And with the advent of the Internet and the information super highway, finding the right software to work with in your Forex ventures is one effective way of ensuring you more profits and gains as Forex software reviews suggest. To start this Forex trading software review, let us first examine the need to have the software

Best Home Choice to Earn

 

Forex is one of the greatest hommy work opportunity to make money. It gives an opportunity to make money from the comfort of your home and spending the time with family at the same time. It is also an opportunity which you can do along with your existing day job.

Forex means foreign exchange and Forex trading means is the trading between foreign exchanges.
Forex trading requires some knowledge about the way the Forex market runs. You have to learn about he factors both local and the global which affects the market. If you want to succeed in this particular trading you must have the knowledge about the basics and facts.

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