Month: November 2010

By Danielle Franklin – Don’t act surprised when you realize that forex trading is actually quite difficult. After all, did you really expect to learn everything there is about this trillion dollar market in one day?!

The first step every forex beginner needs to do is to stop looking for an easy way out – forget about automated robots that supposedly trade for you while you sleep, say no to all the scam artists that offer the Holy Grail, run away from suspicious “account managers” that promise 100% profits.

You are responsible for your money and your knowledge of trading. In order to become a successful trader, you have to learn the basics. By basics I don’t mean reading some online e-book once, open live account and deposit thousands of dollars right away. NO! You have to learn all there is to forex trading, open a demo account, practice for several months, make notes of your trades and your emotions, work on a good strategy and, last but not least, figure out the money management.

Avoiding troubles in trading is the biggest challenge of all. You need to be very organized and disciplined – after all, one little slip and your account can get wiped out. Don’t be too surprised when it happens though. Even with an awesome plan and great strategy, every beginner in forex makes bad decisions from time to time.

One of the important factors to consider is choosing the right forex broker. It is important to find a broker that is trustworthy and regulated. What do I mean by regulated? A broker that is under a supervision of an governmental authority is called regulated and therefore tends to follow the rules and not trick customers into something they don’t want to be doing.

Each broker offers different kind of trading conditions and terms. It is vital to go over those terms before you sign any kind of agreement (and by signing an agreement, I mean pressing a button or a check box “I agree” during the registration process). Pay attention to the spreads and leverage offered – these two things significantly affect your trading experience. How do you know that a broker is fair? The rates shouldn’t jump too much while the market is volatile.

Another thing that shouldn’t skip your attention is slippage. Slippage is the cost that a trader pays when he tries to enter to leave the market. Bad brokers make it nearly impossible to make any kind of money. Your job is to find a broker that is fair, trusted and supportive.

Why do beginners in forex do so poorly while traders with experience make significant chunks of money? The answer is quite simple – with experience comes success. Forex trading is not all about skills. A professional forex trader has a clear understanding of psychological factors involved in gaining or loosing considerable amount of money within short periods of time.

While a beginner in trading might be overwhelmed by unrealistic expectations and objectives for each trade, an experienced trader learns to look at a wider picture by skipping the unfortunate losses and examining the overall profits within several months or longer.

Do you really think that every single trade will bring profits? Do you really believe that there is such a thing as 100% profits without loses? If you do, go back and read about currency market concepts again, because you are clearly still delusional! The truth is that not every trade will be the right trade, not every day will be the perfect day for trading… Greed is your worst enemy, so learn to control it now, before it is too late.

Last, but not least, spend time figuring out money management. Forex trading is not only about making profits but also about keeping them! Never risk more than you can afford to lose. Trading with a risk of more than 2% of your total margin will eventually result in losing all of your money very, very quickly.

Erase your gambler mind set. This is not a poker game. Understand the risks, follow the trading plan, stay away from real money account before you create a solid trading system that has been tested with demo account for several months, work on your emotions and expect losses along the road. If you take forex trading seriously, you will be surprised how much money you can actually make!

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By James McKee – For the past several years the Japanese economy has suffered and as a result the country’s currency has seen an undesired surge in value. Typically an economy (such as that in the US) enjoys a currency with high value, but when that country is chiefly an exporter such as Japan it only makes exports more expensive for other countries. Japan’s stock recently shot up in value considerably causing the Japanese Yen to also make gains in the Forex currency exchange against the US dollar. While the stock market increase is good for Japan the increase in currency value is certainly undesired.

Being one of the world’s largest exporters and being a “western” nation makes the Japanese Yen unusual in the major currency pair world. Its GDP and export levels are all excellent indicators for Forex traders to keep in mind and a great way to profit consistently. Lately however the Japanese Yen has been rising in value despite efforts by the Bank of Japan to devalue the currency, the currency will continue to rise and fall through its cental bank’s efforts which makes it appetizing for traders. The Japanese Yen will be unstable for the foreseeable future and should be approached with caution (much like the USD) by traders.

Indeed there is a reason the Japanese Yen is the third most traded currency in the world, a lack of stability will always be profitable to a good trader. Fortunes are won and lost on the Forex currency exchange with the Japanese Yen all the time. Utilizing pivot points, having solid stop loss and take profit values is especially important no matter what currency you pair with the Yen. Since the G20 summit China (who has close economic ties to Japan) has openly stated a renewed dedication to stabilize their own currency. What this means for the Japanese Yen is anyone’s guess.

About the Author

Author is a Forex trader and financial analyst residing in Denver, Colorado. To stay up to date on all the latest developments in the financial world and beyond be sure to check out the forex exchange rates regularly.

By James McKee – Unlike other western economies the Swiss economy is largely impacted by the Forex market, and that can make for some very interesting intervention measures on the part of the Swiss government. For this reason the Swiss Franc can be an especially good currency for the observant trader. Those who fail to appreciate the volatile nature of the Swiss Franc are sure to be burned by it. The Swiss Franc is governed by the same elements as any other currency including unemployment, GDP, and the like.

Among the best currencies to pair with the CHF is the AUD due to the Aussie dollar’s fairly predictable nature. Investing in another unstable currency such as the USD to pair with the Swiss Franc is a dangerous maneuver since both currencies are extremely volatile. There are still those who will inevitably go with the pair making the assumption that they can see most changes coming with regard to the CHF in the form of its government intervention. Bearing in mind that it can often some time for news regarding a market change to reach a trader the currency becomes more intimidating. After all, no one can outrun the speed at which information travels.

Yes the CHF is indeed an intriguing currency due to its large investment in the Forex market but take heed of my advice and be sensitive to any indicators available when trading this currency. Presently the Japanese government is feverishly attempting to lower the value of the Yen in the Forex currency exchange and so pairing it with the CHF correctly is sure to bring about some healthy profits. Recognizing your pivot points and utilizing techniques such as Fibonacci will help you to scout out your entry and exit points and establish SL and TP values healthy towards your objectives. Keep your head about you! Happy Trading!

About the Author

Author is a Forex trader and financial analyst residing in Denver, Colorado. To stay up to date on all the latest developments in the financial world and beyond be sure to check out the forex exchange rates regularly.

By Benjamin Stockton – You may be new in foreign trading, but this doesn’t mean you can’t earn some money from it. With an adequate Online Forex Trading Platform, you can learn forex trading quickly.

There are numerous kinds of online forex platform online forex platforms. Their quality of performance varies. There are good ones, but others are only so-so. However, it is hard to identify the good ones not until you’ve tried a number of them. Each forex application will have its advantages, but you’d want those which have the most relevant tools that allow you to start trading the easy way and with least risks as possible.

Success in foreign currency trading depends on your ability to analyze forex trends and currency movements. Without it, your trades will be based primarily on guesses and guessing where your currency pair will end up in the next minutes, hours or at the end of the day is not a very profitable way of doing forex trading. It goes without saying that when you search for a suitable online platform, you start by comparing the features and quality of services of some of the more popular platforms available. You will want one providing live feeds of developments in the forex market. The info you get from the live feeds will not of any use to you if you cannot understand it. So the software you want will have graphs and charts and other forex indicators forex indicators that can easily be interpreted. These indicators, the more detailed the information they generate, provide you with excellent ideas on what currency pair to trade, what specific time to trade and when to end the trade.

A superb trading platform has tutorials that facilitate easy understanding of what its various features are for and how they should be used. You will want it also to offer demo trades to help you acquire the trading skills you for successful trading. Moreover, it must have a trader’s forum where you can seek advice from more experienced traders. The forum is an important support system to forex traders particularly those just starting out.

You don’t get the first trading platform offered you, unless it has all the features that can make trading activities potentially profitable and less risky.

About the Author

Benjamin Stockton is a dedicated to three children and forex tracker. If you want to know more about <html> online forex platform and the latest and most effective forex strategies, tools and mindset that will allow you to make lots of money from trading forex please visit http://learnforexstrategies.org now.</html>

By B. Logan – Forex trading has become popular among those who want to earn money from their small investments. Unlike other financial markets, the Forex market can help you trade currencies in real time and turn them into valuable investments. It is also available twenty-four hours a day so you can keep on trading without worrying about markets closing for the day.

However, trading currencies also has its risks and disadvantages. If this is your first attempt to engage in the Forex market, you have to be familiar with important trading tips for beginners. This way, you can prevent the mistakes of undisciplined and inexperienced traders who did not heed the advice of adept Forex traders.

Here are some of the most important online Forex trading tips that you should always remember.

Define your risk tolerance

The only way to gain profit from trading is to recognize the nature of financial markets. However, you will not understand their dynamics if you are not aware of your own risk tolerance. Once you have analyzed your own financial goals, you can easily determine the right capital allocation that is neither excessive nor lacking.

Choose the right brokers

Your success in Forex trading will also depend on the brokers you will choose. Unreliable brokers can invalidate all the profit you have gained from your hard work. Look for a legitimate broker whose trading goals and expertise level matches yours. Always remember that the broker you will choose can make or break your first attempt to trade profitable currencies.

Start with small sums

Since you are relatively new in the Forex industry, you have to begin with small sums of money and low leverages. As you continue to generate more profit, use your organic gains to increase your accounts size. Try to increase your account through your analytical trading choices instead of adding more and more money to it without acquiring sizeable gains.

These three tips can jumpstart your career as a Forex trader. Once you have learned the importance of setting realistic goals and choosing the right brokers, you will eventually reap the rewards from Forex trading.

About the Author

If you are looking for more tips about how to make money with Forex Trading, checkout all of our online Forex trading Tips at http://www.tradingtheforexinfo.com/.

By James McKee – Continued economic strife throughout the world has driven many people to resent the current economic system and speak out against events such as the G20. Slow economic growth fuels the hatred of many ordinary citizens towards financial officials of western nations. Political tensions can often cause drastic changes within the forex currency exchange so traders should definitely take note of these developments. Among the main issues being tabled at the G20 summit this year will be the pressure of the US and other western nations on China to spend some of its capital reserves.

Among the very top of the reasons that common citizens are upset include the Federal Reserve Bank’s latest move to spend six hundred billion dollars on US treasury bonds. Such as a move is seen as brash and uncalled for and nearly every financial advisor of merit agrees that this move will spur inflation and weaken the US dollar exponentially. What this also means is that a weakened US dollar will begin to flood emerging markets throughout the world. This will have repercussions that are indeed far reaching due to the fact that many western nations are heavily invested in developing economies.

What this then spells out is consequences abound for western countries and their currencies. All major currencies in the Forex currency exchange may become unstable and while a trader thrives on change the type referred to here is not good for anyone. Pure chaos is not predictable and reduces even the most experienced Forex trader’s efforts to a mere throwing of the dice down the board. No trader wants to gamble (those who do seek their kicks in the market don’t “kick” long), the ideal situation in the Forex market is a kind of “controlled chaos”. The best traders know and embrace this to the full extent and I am sure that they like the rest of the world will await the result of the Fed’s latest decision with baited breath.

About the Author

Author is a Forex trader and financial analyst residing in Denver, Colorado. To stay up to date on all the latest developments in the financial world and beyond be sure to check out the forex exchange rates regularly.

By James McKee – Barack Obama recently stated that the other economies of the world rise and fall with that of the United States. A recent move by the Federal Reserve Bank to create over six hundred billion dollars by buying US bonds has been seen by many as the beginning of the end for the US dollar. Since the decision was announced the USD has fallen against the Japanese Yen and other currencies on the Forex currency exchange. Many believe that by buying up US bonds the Federal Reserve will actually cause deflation for the US dollar through devaluation.

It is not just US citizens who have a problem with this because as Mr. Obama said any impact on the US economy or currency will have consequences worldwide. There have already been demonstrations at the site of this year’s G20 summit in Seoul where financial leaders from all over the world are scheduled to meet and discuss global economic policy. Demonstrators claim that leaders are intentionally causing financial upheaval in western nations for various reasons, chief among them the theory that world leaders are seeking to establish a one world currency. Such a policy would do away with different types of currency and eliminate the Forex market altogether.

As the Federal Reserve Bank of America continues to make adjustments to the country’s economy and money supply the stability of the dollar will continue to fluctuate. As the DJIA currently attests there is always going to a negative response to the Federal Reserve creating more money. The best way to address this situation as a forex trader is to stay aware of current events and trade accordingly. Despite all the recent trouble the dollar is still very strong against the Euro for instance. This upcoming year will be a wild one so stay alert and stay nimble!

About the Author

Author is a Forex trader and financial analyst residing in Denver, Colorado. To stay up to date on all the latest developments in the financial world and beyond be sure to check out the forex exchange rates regularly.

By James McKee – When approaching the Forex currency exchange from an enlightened perspective you will find yourself not necessarily brash in your assumptions, but more confident when you carefully make one. Utilizing the tools and techniques you learn today for a more successful trade tomorrow is not only good for your bank account but your overall development as a trader.

When it comes to the most important tenants of Forex trading Gann theory is at the top of the list. This system concerns itself with three primary areas: pattern, price and time. The pattern portion of this list refers to prices that could be identified as displaying a pattern with regard to commodities and stocks. Gann believed that these movements could be used to predict future price movement since patterns emerged.

Gann also insists on constant observation of price with regard to its relation now to what it was before in an effort to see what it will be in the future. Observing price is as we all know very important to making or breaking a trade and should never be taken lightly.

Time is of course vital to all aspects of Forex trading be it waiting on a currency to respond to a current event or waiting for a head to appear alongside shoulders time is critical. Knowing when to enter into a trade, when to get out and when to re-evaluate is something we all need to constantly check ourselves on.

While Gann’s theory certainly seems obvious at first many traders I know do in fact end up taking the aforementioned topics for granted and get them selves into trouble. Maintaining proper strategy boils down just as much to basic principles as it does to complex strategies. This all relates back to my golden rule of Forex, do not assume…ever. When in doubt pull out my friends!

About the Author

Author is a Forex trader and financial analyst residing in Denver, Colorado. To stay up to date on all the latest developments in the financial world and beyond be sure to check out the forex exchange rates regularly.

By Benjamin Stockton – It is always wise to prepare for any endeavor you want to do in the future. So if you are thinking of trying your hand in forex trading, it’s a good idea to get hold of a few forex books. The forex market is rather complicated with a lot of factors bearing pressure on the prices of currencies. Knowing the basics of forex trading and getting familiar with the tools for predicting forex trends and currency movements is a good place to start as any. Trying to learn all these things during actual is really dangerous.

You have to be selective when searching for a useful forex trading book. There are a lot of them in the shelves of bookstores. Look for something that has attained decent readership and has the endorsement of known forex experts. Many forex authors are not traders themselves, but it must have something relevant to say about forex if a successful trader endorses it. Scanning the table of contents is the best way to determine whether a particular book is what you are looking for or not. The book you want to have will deal at length with the basics of the market, on the types of analysis, about the most reliable indicators and about how to use them properly. It will also have topics on trading psychology and the proven strategies that most successful traders use.

You can get a lot from forex trading books. For one the information you get from it means you will not be going into trading blind. It will be easier for you to interpret data coming from live market feeds and you have initial ideas on how to set-up trades. Anyway you look at it; it beats not knowing anything about the market. Of course, there are lots of things you can earn only from actual trading, but anything that helps you understand forex better is always useful.

About the Author

Benjamin Stockton is a dedicated father to three children and forex tracker. To learn more about forex trading books and the latest and most effective forex strategies, tools and mindset that will allow you to make lots of money from trading forex please visit http://learnforexstrategies.org now.

By Benjamin Stockton

Invariably, you will earn money from forex trading by having an effective trading plan. But the things you can do to maximize profits do not end there. A low spread trading platform also helps. In fact, it helps a lot.

Now when you trade through a broker, he will not ask you directly for a fee. He get’s his money from forex spreads. It works this way. When you buy a currency pair the broker charges a spread on the transaction. You know about spreads. It’s the difference between the bid price and ask price. The bid price is what you pay for the currency and the ask price is what you sell the currency for. The difference is expressed in pips. This means that if a broker adds two pips to the bid price, you are paying him for the price of two pips. If you sell the currency right after you bought it, you will find yourself down two pips down. The more pips or spreads he adds to the bid price the more costly the trade becomes. This lessens the profitability of the trade and the bigger the risks. Meanwhile, the broker always earns no matter what happens to your trade. You have paid for his services in advance.

The method of paying for the services of brokers is the reason it is imperative that you find a low spread forex trading platform. Remember that platforms are supplied by brokers, so essentially you looking for a broker who offers lower spreads. Different brokers will offer different forex spreads. Some will offer lower or tighter spreads, while others will offer higher spreads. For big trades they will usually offer tighter spreads and usually higher spreads for small trades. Brokers will also vary their offers depending on market conditions. They may offer fix spreads and this usually happens when the market is volatile. But usually you end up paying more.

The key to finding a low spread platform is to search for it. There are reputable forex websites issuing forex reviews. From the reviews you can easily tell which ones will increase your chances at earning in forex.

About the Author

Benjamin Stockton is a dedicated father to three children and forex tracker. To learn more about low spread forex trading platform and the latest and most effective forex strategies, tools and mindset that will allow you to make lots of money from trading forex please visit http://learnforexstrategies.org now.