Month: October 2010

By Nancy Margolis – The opportunity to earn an income from forex trading is there for those that are willing to work for it. But before getting started, there is a checklist you should first follow. 1, find a forex broker you can trust. The forex industry is riddled with brokers that are less than honest. Try to stay away from market makers. They take the other side of the trade and win only when you lose. It’s a conflict of interest because they tend to stop hunt in order to get a losing trade. 2, Think about the amount you want to open your account with. Open with a small amount. As a beginner (or a veteran trying a new method), the focus should not be on making money, it should be on consistently accruing those pips. 3, go to forex school. There are many sites on the net that offer free education. Learn as many styles and methods of trading that you possibly can. From there develop a trading plan and trade with those strategies using a demo account or very small risk size. 4, if success at Forex Trading seems to slip by you no matter what you do, then you may want to consider using a Forex Signals alert service.

If you are a trader lacking experience in the forex market or you are struggling to make profitable trades, using a good Forex Signal service is a no-brainer. If you’ve invested in other markets, you realize the sacrifice made for not being an educated trader. Most traders are too busy to trade because they have a full-time job or have commitments that limit their time to properly analyze the market and place trades. Furthermore, the fact that the Forex Market is a 24 hour exchange, Monday through Friday, makes the task even more difficult.

Many signal companies on the net offer alerts in various methods. They send alerts to you via email, cell phone instant messenger and even online rooms where you log in and mimic their trades. Many of these companies are very much reputable but remember, a major reason for buying forex trading signals is due to their inability to find the time. Waiting on an SMS or email then having to place the trades immediately requires time and standing by or reacting takes time Most alerts that are sent require immediate attention. If you are busy working, sleeping or basically living your life, entering the trade fast enough will be an issue. Remember, forex trading is 24/5. The solution is simple. Find a Forex Trading Signals service that provide their alerts direct to your trading software. There should be no reason for you to place a trade. Many providers can directly connect with the Metatrader trading platform, the most popular forex trading platform available. It requires nothing more than attaching an expert advisor which transfers the alerts, which should be provided by the Forex alerts company.

Many new forex traders pay steep fees for forex signals because they think their return will be much more than what they paid. Although this is quite possible, one must still perform due diligence in looking for a low priced service that is relatively consistent, making sure to try their service first via a free trial. Prices in the $50 to $150 range are reasonable. Sometimes the Forex signals you buy do make money and sometimes they lose. As in any type of investment, there are risks of loss. No Forex signals, Forex robots or Forex trading strategies can guarantee a quick profitable return but they should be profitable on a long term basis.

When looking to buy Currency Signals, be certain you do business with firms that provide a free trial. If they don’t, walk away. A good firm should be willing to let potential users test their forex trading signals before subscribing to the service or at a minimum offer a money back guarantee policy. If their picks are any good, they should be more than willing to provide free access so that you can judge for yourself the profitibility of their service. There is no reason for you to risk your hard-earned money on fx signals from firms that don’t provide a free trial.

About the Author

Nancy works with Easy Pips Forex Signals. Easy Pips sends direct to you Metatrader Platform 24/5 Forex Signals and Forex Alerts. Visit their site today and try their Forex Alerts service at no charge. Simply click on the Free Trial link.

By James McKee – One of the scariest and most intimidating things about starting out as a forex trader are the complicated charts used to gauge the forex market value for a given pair of currencies. As foreboding as they might appear to a newcomer these charts are one of (if not the MOST) important things to understand when coming into the market to trade. Having up to date and continuous data for the transaction you are considering to enter into is absolutely vital for your success. There are three types of charts available to you for analysis and they are bar, line, and “candlestick” charts. The predominant chart being used by most traders today is indeed the bar chart, but I have decided to discuss the candlestick chart due to its more esoteric nature.

Candlestick charts originated in Japan due to a Japanese rice trader’s desire to view changes in the price of rice within a given period of time. It is a combination of both a line and a bar graph, each bar or “candlestick” represents the range of price movement over a given period of time. This is crucial when you consider that the Forex market is constantly in motion and the value of a given currency could rise or fall in moments. The candlestick is composed of a single “bar” and has a “wick” both above and below it. The width of the candle is used to demonstrate the span of time it covers, and the wick represents the highest and lowest prices the currency was traded for during that period of time.

An advanced application one could apply to a candlestick chart would be Fibonacci retracement, this is a method used to help you calculate the best place at which to buy and sell currency. As with anything else there are no guarantees but it is certainly a helpful mathematics tool. It has been said that the market (stock and Forex alike) is like gambling, and in some respects I’d have to agree with them. Very much like gambling in the market you can calculate your odds of success and bet (or invest) accordingly and if your system is sound you will come out on top overall and that overall profit is what trading is all about.

The software used to create these charts is just as important as the charts them selves, Meta Trader 4 is one of the most popular software suites available to traders and it has stood the test of time for a while now. Featuring a multitude of charting options, customization, and stop loss/take profit warnings to keep your objectives front and center. This software (or something like it) is necessary to pursue your financial goals in the Forex market.

Charts are nothing more than lines and pretty colors without the proper amount of understanding being applied to what you are viewing. Due diligence and effort must be put forth to apply this knowledge in a way that will be profitable. Don’t hesitate to ask questions and read absolutely everything you can about how to develop your trading strategy in conjunction with software such as MT4. Happy trading!

About the Author

Author is a Forex trader and financial analyst residing in Denver, Colorado with 5 years of experience in trading with an attitude of cooperation through education. It is vital to remain in the loop where new technologies are concerned, make sure to stay up to date and aware of forex chartsand developments

By James Woolley – If you have been involved in forex trading for any length of time, you will know that there are literally thousands of different trading systems being sold online. There are also plenty of systems being given away for free on forums and websites, for instance. So how can you tell if any of these systems are worth using or not?

Well you obviously have to test to see if they are profitable and this involves one thing – back-testing. Back-testing is simply where you use some kind of software to enter the trading conditions and see what kind of profits it generated in the previous months and years.

This can be quite a complex process and one that not many people can do, simply because they are traders not programmers. However it is definitely worth learning how to do this because then you can quickly evaluate whether a particular system is profitable or not in a matter of minutes, or seconds in some cases.

The alternative approach is to do all of this back-testing manually. This is a long time-consuming process, but it is no less valid. It basically involves opening up your charting software, plotting the indicators used by the trading system, and looking at every instance where the system would have entered and exited a trade. You then need to write down the running profit and loss, as well as the number of winning and losing trades.

As regards how far you go back in time, the general rule is the longer the better. The more data you analyze, the better you can assess how profitable a particular trading method is because you can see how it performs in various different market conditions.

One final point I want to make about back-testing is that you shouldn’t just look at the total profit for a given period. You should also look at the maximum drawdown during this time as well because you may find that although a particular strategy generates profits in the long run, there may be times when it suffers say 5-10 losing trades in a row. Therefore if this were to happen again in the future, it could decimate your trading account.

So the point is that the only way to thoroughly test out a trading system is to do some back-testing, whether you do this manually or use some kind of software to help you. This will allow you to see how profitable a system is in various market conditions, and will allow you to see what kind of drawdown you are likely to suffer if you were to start trading it for real. The best trading strategies will obviously generate steady profits with very little drawdown along the way.

About the Author

Click here for more information about a forex trading course that will teach you all the basics of currency trading, and to read a full review of Forex Nitty Gritty.

By Oleg Kolomatskiy – The Present Day situation with the Markets Implies Going Back to the Basics.

Taking into the account the turmoil with global markets, it’s high time we revisited the reasons why we invest and re-consider the goals.

In the last year many investors were abandoned with the bull market and some of their portfolios almost vanished. So, the outcome is that lots of them went for the exit, complaining never to come back. Now, we have reached the point when we need to refocus our allocations that correspond to our initial objectives of investment.

First, consider the various asset classes one might consider. Please remember that not everything is suitable for everyone. Each asset has its own risks and potential rewards so one should seek out professional advice before investing.

First of all, consider the different classes of assets. Just remember, that not all of them fit your investment plan. Each asset has both risks and future awards, that’s why you have to find out the advice from professionals before making inputs.

Here are some examples where to invest: Real estate, international fixed-income, hedge funds, commodities, private equity, domestic fixed-income, domestic equities, emerging market equities, international equities and other alternative asset classes.

The above written list doesn’t include all the possibilities of investment and it shouldn’t terrify you. It’s really hard to understand which type of asset class will fit best your goals and your personality too. Putting it another way – how much risk, credit and currency is an investor able to consider to reach his aim in the investment. So it’s not acceptable for everyone.

The Tendency is in Moving to Active Managers, rather to the Passive ones.

The recent research made by a firm Greenwich Associates, has shown the tendency in the decreasing number of institutional investors that are of passive domestic equity type and in increasing rate of active ones. The gist of such a movement is that active managers are able to make an additional profit.

Investments in Stocks and Bonds

Inputs to domestic fixed-income had the tendency of being cut down and it moved to the active managers at the expenditure of passive ones. The biggest reason for that is that the credit postpones debts and that the active managers are able to add a definite amount of value.

Going Back to the Basics

You have to just keep in mind that if someone else acts his own way, it doesn’t imply you are to do the same. The majority of institutional investors own resources that individual ones don’t have. Eventually, each investor has to focus on the sources behind the inputs and that an investor is satisfied with his portfolio.

About the Author

Oleg Kolomatskiy is the author of the free video course “5 Days Money Course” http://www.wiseformulaofinvestment.com that gives absolutely the best tips and advice in handling money and wise investments ever! This information is going to explode your income and capital in the nearest future! So, click the following link now! http://www.wiseformulaofinvestment.com

Forex (also known as FX, foreign exchange) is the market where one currency is being exchanged for another one. The volume of transactions taking place on the foreign exchange market is mind-blowing. Some estimates, based on the earlier surveys made by the Bank for International Settlements, mention an average daily figure of over US$3 trillion per day!  The daily combined turnover of all major world stock exchanges is only around US$200 billion.

Earning money trading forex  is not as easy as it is sometimes portrayed: you are advised to learn as much about forex trading and practice trading on a demo account before investing real money. Investments in forex are also potentially risky to investor. You should not invest in forex the money you cannot afford to lose.  You might decide forex trading is not for you because the only way you can make real money is by investing lots of money. You might decide to stay away from forex because it’s too complicated and risky. Wrong decision! Even if you cannot invest time and money required or if you just don’t have the mindset for forex, you can still make big money…even without trading and we will show you how.

If you own a website, you can reap real profits with little effort by joining a forex affiliate program. This opportunity may potentially generate thousands a month in extra income for you. The maximum you would need to do is to put a banner or a link on your website through which customers can be referred to your broker and you will receive a commission for every referral.

Commission structures differ across affiliate programs.  Some affiliate programs will offer several commission options and will even allow using each option at the same time.  Some brokers reward active partners and will agree to tailor their commission structure to your specific needs. Second-tier affiliate programs will pay commissions for the sales made by people who signed up under you.

Some of the commonly-used commission options are: (1) CPA (cost per action), meaning that you will receive a fixed sum for every new trading account opened by your referral, (2) CPD (cost per deposit)-a certain percentage from the deposit made by the people you refer, and (3) CPV (cost per volume)- a pip commission  from the trading made by people you refer. Imagine a person, who opened an account through your link and deposited $1000 into his trading account. If you signed up under CPD option, you will automatically get $100 commission for that. Let’s say you signed up under CPV of 1 pip per lot option. This means that if, for example, someone opens a trade on EURUSD you will get a commission equal to 1 pip. One pip in this case is equal to $10. Considering that an average customer trades a few dozens of lots a day, you can get hundreds of dollars in commission just from one customer just for one day! For as long as the customer is trading, you will be receiving the commission automatically every time s/he makes a trade.

As you can see, it is not necessary to have a significant knowledge of forex to become a forex affiliate.  Just a little effort can make you hundreds of thousands of extra income within weeks. Why not give it a try?

Maritza Garcia is an investor, educator, author, and marketing expert. She is now employed as business development consultant to Forex-Metal broker. You can learn more about Forex-Metal IB programs at  https://forex-metal.com/broker_inquiries/new

By Vincent Parker – There is lots of knowledge and interest out there about FOREX trading. FOREX (Foreign Exchange) is simply purchasing a currency at one price and selling it at another price to make a profit. Currency markets are well known around the world, and your average Joe will have exposure to them when you go travelling to Europe or Asia as you will need to change your currency to be able to purchase things in the new country. You also may have exposure to foreign exchange markets if you ever made a purchase from overseas and had to calculate what the cost of the product was in your local currency.

There are many providers out there that let you trade FOREX. You can simply open an account and say you want to purchase x amount of dollars and sell x amount of Euros and hey presto, it all happens automatically.

Contracts for difference (CFDs) work as a form of financial derivative that creates a contract between two parties that states that one party will have to pay the other the difference in the value of the underlying asset that the contract was made on.

What this means is that you can make a contract saying you will buy the USD at $1.10 Canadian Dollars, and if it is higher than that (say $1.20 Canadian Dollars) at the time you decide to sell it, the other party will have to pay you the difference, but if it is lower (say $1.00) you will have to pay them the difference. This is basically the same as trading the currency its self.

FOREX trading accounts will also allow you to purchase on leverage (borrow to make bigger purchases than the actual amount of cash you have). CFD accounts also let you do this.

As you can see, CFD accounts allow you to do almost everything that a standard FOREX account could do, but they also offer so much more. Like the ability to trade shares in almost any market, the ability to trade indices, commodities and many other different options.

So I ask you, why would you trade FOREX when you could trade CFDs?

About the Author

123CFD is a resource for Types of CFDs where we cover topics like CFD FOREX Trading

By James Woolley – Many people in the forex industry will tell you that everyone has the potential to become a profitable forex trader. However I don’t agree with this at all because there are certain people out there who simply do not have the right character traits to succeed.

As I have pointed out many times before in previous articles, it is believed that only around 5% of people who trade forex are actually profitable. Therefore a whopping 95% of people end up losing money. There are obviously many reasons why this is the case. It’s mainly down to the fact that the system they use is unprofitable in the long run. However the personality of the trader also plays a major part.

To succeed in this very challenging industry you obviously need a great deal of discipline, as well as a real determination to succeed. Hardly anyone is profitable straight away. In fact it can take some people months, if not years, to come up with a profitable trading system. However if you don’t remain committed to the cause, then you will never fulfil your dream of becoming a wealthy and successful trader.

It’s not just about finding a profitable system either. Some people will develop what appears to be a highly profitable system and still manage to lose money. This is because they will often lose their discipline after a few losing trades and start chasing their losses, placing impulsive and reckless trades. They may even keep switching to different trading methods all the time in order to find ‘the perfect system’ that hardly ever loses. The fact is that some people cannot handle losses very well at all.

Successful traders, however, will learn to accept them because there isn’t a trading method out there that is able to generate winning trades every single time. They know that in the long run the winning trades will more than compensate for the losing ones.

So before you start developing a serious interest in forex trading, you should ask yourself whether you have the motivation and the required discipline needed to succeed. It takes a certain type of person to not only find a profitable system in the first place, but also to stick to this system when it goes through a bad patch, which it inevitably will do at some point. If you can handle losing trades and have a determination to succeed then you may well join the 5% of traders who are making a very good living from currency trading.

About the Author

Click here for more tips and strategies relating to forex currency trading and to read a full review of the Forex Morning Trade system, which is a new but highly effective day trading system.

By Nancy Margolis – A managed forex account is an account you establish at a trading firm where the portfolio is owned by you but the currencies are found and traded by a professional trader. Investments are considered based on the level of risk and profit goals you choose for the company to follow. Many traders worldwide are looking into this new approach to becoming involved in the currency market. These profit seekers are letting forex portfolio managers the flexibility to trade their accounts for them by depositing their money with the firm and allowing the company to take care of everything. Much like stock trading hedge funds, managed forex accounts have become the new rage and if you do a search for them, you will come across an extensive list of firms to choose from.

There are benefits to having a managed forex account as compared to forex trading your own account. For example, when you have your account with a firm managed by professional forex traders that are experts in their field, that allows you to sidestep the potential trading mistakes that most new, inexperienced or unprofitable traders make. These forex pros have the experience and education to better gauge market uncertainty and adapt to extreme trading situations by adhering to their rules. Also, they are better taught mentally to deal with the difficulties involved with forex currency trading. On top of that, the techniques along with strategies they employ are generally tried and tested between their community of other clientele so that they are trading more efficiently and with what must be an established history.

However, currency investors must generally be cautious while seeking for any company that offers managed forex accounts. If you are in a position to allow a company the ability to fx trade with your money, you ought to engage in comprehensive due diligence in the firm in which you are thinking about, making sure they are monetarily sound as well as reputable before sending any sort of funds to them. This should be completed through searching the net and digging up as much material as you can regarding the company. If the business has experienced problems in the past, probabilities are you may be capable of coming across discussions as well as reviews about them. Stay away from any kind of business where you find an abnormal quantity of negative discussions.

Aside from mediocre performance results, a main disadvantage to utilizing a managed forex firm is the threat that they never return any of your funds. They may well behave as if they traded away your funds making use of phony trade reports when in fact the trades never went to the market and the money stayed with them. The forex brokerage market is not as managed as the stock industry is and because of that, numerous unfortunate clients have to their shock waken up to find their accounts fully empty for the reason that the funds ended up being taken by the firm.

A valid choice to using a managed forex account is to go with a forex signals company. But not virtually any signals service will do. You want to track down a service of which is going to be both profitable as well as has the capacity to post their alerts straight to your account. There are a number of services which send their signals by means of email or SMS although that demands you to wind up being available 24/5 in order to set those trades. Precisely what good is that when you are seeking for the next best thing to having another person trade your account? Whenever you come across a forex signals company in which sends their signals direct to your own account, you now will have the best of both worlds. Your cash will be secure with you, in your account, with no one possessing access to it and you will have that account traded indirectly by a successful trader. It’s like having your own money manager without ever having to hand your funds over to them.

About the Author

Nancy is a signals advisor for Easy Pips Forex Signals. They offer a free trial of their Forex Signals so you can try before you buy. See why using their service is better than Managed Forex Accounts.

By Franklin Global – Trading foreign currency, also known as Forex, is a challenging and potentially profitable opportunity for educated and experienced investors. The foreign exchange market is the market in which currencies are bought and sold against one another. Successful Forex traders can earn realistic profits of one hundred plus percent each month but It’s important to understand that such investments (AKA off exchange foreign currencies) are not suitable for all investors and are risky. Compared to some of the better known investment markets such as corporate stocks, this is an unheard of return on investment.

In the Forex markets, you are purchasing items or products, or goods, and you are paying money for them. As you do this, you are gaining or losing as the currency exchange rates differ daily from country to country. It is a very volatile market open 24 hours a day, which is great for those people who are looking for day-trading opportunities as opposed to the stock market which involves buying shares of a company, and you watch how that company does, waiting for a bigger return.

The transaction costs to execute a trade are minimal and most brokers provide you with the basic tools and data you need to make your trading decisions and they usually provide them for free. A person who invests in Forex should make it a point to learn the strategies and information surrounding the market. This will make the difference between your success or failure in the forex market.

The currency exchange market is an over-the-counter (OTC) market which means that there is not one specific location where buyers and sellers can actually meet to exchange currencies. Instead, transactions are conducted by phone, fax, e-mail or through the websites of a forex broker who specializes in currency trading.

If you, as an individual want to be involved in forex trading, you must get involved through a broker, or a financial institution. Trading forex is similar to the equity market because individuals interested in trading need to open up a trading account. Like the equity market, each forex account and the services it provides differ, so it is important that you find the right one. Your broker or investment advisor will be able to tell you more about how you can be involved in forex trading.

The amount of capital required to begin investing in the market is minimal but it’s important to understand that Forex can be extremely volatile and there are a number of significant risks associated with currency trading. For the most part, any other investment market is going to demand thousands of dollars of the investor in the beginning so it’s easy to see the advantages and great leverage that exist in the forex market and make it among the most lucrative, time liberating, trading markets by far.

About the Author

This article was provided by Franklin Global Capital LLC, NFA member (#0391263), a Spot Forex management and investment research firm. They specialize in providing investors alternative market opportunities to diversify portfolio risk. Each strategy is designed to attempt in reducing capital draw down that can occur in the extremely volatile Forex market.

By Oleg Kolomatskiy – Newbie in the Investment have to take into the consideration the following things to avoid mistakes.

Those people who regard their portfolios attentively really need to know these common pitfalls in the investment. This should be done by the novice investors in order to see one’s capital grow.

Small Capital to Invest

The sufficient investment can’t happen with the small starting point in finances put by for this. If investors don’t have money to live on, so it’s impossible to speak about inputs. Plus, any debts on the investors’ accounts have to be paid off.

The Absence of Aims or a Strategy

Investment has to treated very seriously and be determined with definite person’s goals that and how he wants to achieve. First, novices in investment need to set up short and long-term aims and also be aware of the risk they are able to take. Also they have to know exactly how much they will invest in different asset types (mutual funds, bonds, stocks).

Not Keeping to Aims in Investment

If the strategy is taken by investors, they have to stick to it. That means – the regular monitoring of the tendency. Here, the newbie have to stay calm in all the market’s movement.

An Adviser with a Poor Experience and Knowledge

The advisers have to be picked very accurately and their references need to be studied beforehand. Plus, advisers have to work on the buy and sell, but not to strive for the profit.

The Weak Diversification of Portfolio

Investors are tend to «put all the eggs in one basket» – invest in one area or a company. The best advice here is to purchase the stocks in many companies in several countries. That will help to take the advantage in the foreign markets.

Impatience for Making the Investment Decisions

Many inputs grow for a certain period of time and most investors are tend to react too quickly when selling a profitable stock before its highest price. The market isn’t stable. It goes up and down.

A Bad Search for New Inputs

The wise investors have to make a proper research for future instruments in investment before making inputs. Even the qualified brokers’ suggestions have to be checked. The necessary information may be taken from the agencies such as Bradstreet and Dun or Experian.com.

Not Proper Reinvestment

The new investors have to be sure that they will be able to reinvest their money, because the earnings can grow over the time and it’s not the best way to pull everything out at once.

In short, successful investment is likely to come to those who base their investment strategy on avoiding the costly mistakes that trip up so many first-time investors.

Briefly speaking, the real success in investment takes place is only when the above mentioned mistakes are considered and avoided.

About the Author

Oleg Kolomatskiy is the author of the free video course “5 Days Money Course” http://www.wiseformulaofinvestment.com that gives absolutely the best tips and advice in handling money and wise investments ever! This information is going to explode your income and capital in the nearest future! So, click the following link now! http://www.wiseformulaofinvestment.com