For those of you who are new to the forex market, or even for those of you who are considering becoming a forex market trader, this article is for you. Welcome to forex 101, where you will learn exactly what forex is and what it does. Also for the forex newbie’s, you will find a list of six trading tips that will help you in your transactions.
For those of you who are new to the forex trading market, first you will need to know the meaning of the term “forex” which stands for FOReign EXchange market. This pertains to the international foreign currency exchange market where currencies of all kinds are bought and sold. The forex market got its start back in the early 1970's when floating currencies and free exchange rates were first introduced. At that time, the forex market traders were the only players on the market to decide upon the value of one type of currency against another, all solely based upon a particular currency’s supply and demand.
The forex market is very unique for a number of reasons. First of all, this is one of the few markets that require very little trading qualifications and is free from any external control and can not be manipulated in any way. As the largest financial market, with trades reaching up to 1.5 trillion U.S. dollars, or USD, the money moves so fast, it’s impossible for a single investor to substantially affect the price of any major foreign currency. In addition, unlike any stock that is rarely traded, forex traders are able to open and close any positions within seconds, because there are always a number of willing buyers and sellers.
1. To open a forex account, all you have to do is simply fill out an application and provide all the necessary identification. The application will include a margin agreement will state if the broker will be allowed to intervene with any trade when it appears too risky. This agreement is made to protect the interests of the broker because most trades are done by using the broker’s money. However, once you have established an account, you can fund it and begin trading in the forex market.
2. In order to become a successful trader, you will need to adapt your own trading strategy. There is no one strategy that will work for all the traders, each individual trader will need to develop their own approach to the market. While some traders may relay solely on technical analysis, others may prefer a more fundamental approach, while the more successful traders use a combination of both. Each individual trader will need to learn the best approach for themselves in order to gain a more comprehensive overview of the forex market in order to prepare for any entry and exit points.
3. Understand that prices move by trends. Forex has a popular saying, “The trend is your friend.” there are certain movements that have been studied over many years in order to identify a pattern in the trend. These trends need to be understood in order to understand a good trading strategy. For small accounts that are $25,000 and under, trading with a trend may help improve your odds when compared to bi-directional trading. Most newbie’s will look to trade in any direction, when they should be trading with a trend.
4. Before you take any position, look over the top five currencies to make sure you’re not missing something. The top five foreign in forex are: USD/Yen, Swiss franc/USD, Euro/Yen, Euro/USD and Pound/USD.
5. For newbie’s, it would be safest to have two accounts because you learn as you play the trading game. Keep one real account, one that you will actually use to trade real money; and the second account should be a demo, one that you can use to test alternative moves in the trading game. You can easily use your demo account to shadow the trades in your real account so you can widen your stops to see if you are being too conservative or not.
6. Always examine the one hour, four hour and daily charts that concern your trades. Although you can trade at 15 and 30 minute time intervals, doing so requires a handful of dexterity.
10 Minute Forex Wealth Builder
Forex Trading Robot - Forex Maestro
Showing posts with label market. Show all posts
Showing posts with label market. Show all posts
Sunday
How To Become a Successful Forex Market Trader
Forex trading on the internet is the quickest way to use your investment capital to its maximum. The foreign exchange markets can offer certain advantages to the smaller and larger traders, thus making the foreign exchange currency trading more preferable than the other markets such as stocks, options and all of the traditional futures. Here are some of the top reasons why you will want to use the forex trading on the internet, in order to become a more successful forex market trader.
1. Forex is the largest market, trading at a volume of almost two billion, giving forex traders virtually unlimited flexibility and liquidity. That’s over three times larger than the equity market and over five times larger than futures.
2. Forex trading can fit into anyone’s schedule because it is available on the internet 24 hours a day, 7 days a week. There is no waiting for markets to open; they are always open day in and day out. This flexible schedule makes the forex market extremely attractive to those professional and potential traders and investors.
3. Forex trading on the internet encompasses buying one currency while simultaneously selling another currency; therefore you have an equal opportunity to make a profit no matter what direction the currencies are heading. Another great advantage to consider is that there are currently only fourteen pairs of currencies to trade. Compare those fourteen currencies to the thousands of stocks, options and futures when you’re considering the pros and cons of delving into the trading game.
4. Investors and traders are flocking to the forex internet trading as a way to gain a higher leverage to their investments. Some brokers even offer margin ratios of 200/1 in open forex trading accounts. There are also those mini-forex accounts that can be opened for a minimum of $200, offering a margin of 0.5%, where $50 in trading capital will control a ten thousand unit currency position.
The Forex prices are often predictable, allowing the currency prices to create trends that can be followed to allow the technically trained forex trader to able to spot, and even take advantage of, the many entry and exit points. One of the best parts about forex trading on the internet is that there is no charges for commissions, any exchange fees or any other hidden fees. The forex market is a very easy market to research the countries and currencies involved. The only fees come from the forex brokers, who only make a very small percentage of what the bid/ask price is. Plus, there is no need to calculate any commissions or fees when completing a trade and your transactions are made a confirmed within seconds. Also because this is all done electronically, with no people involved, there is not much that can slow you down.
For the newbie’s in the forex trading game, you will need to know the forex terminology. Here is a list of some basic terms and concepts you will need to know in forex trading:
Spot Market- The market for buying and selling currencies that are usually for settlement within 2 business days, also known as the value date. For example: USD/CAD = 1 day.
Exchange Rate- This is when the value of one currency is expressed in the terms of another. For instance, the EUR/USD has an exchange rate of 1.3200, and then 1 Euro is worth 1.3200 USD.
Currency Pair- All currencies must be sold in pairs. There are two currency’s that make up an exchange rate, so when one currency is bought, the other is simultaneously sold and vise versa.
Base Currency- This is the first currency in a pair.
Counter Currency- This is the second currency used in a pair. The counter currency can also be known as the “terms” currency.
Broker- This is a firm that will match a buyer to a seller for a small fee or commission.
Sell Quote- This quote is normally displayed on the left side and represents the price that you can sell the base currency for. The sell quote is also referred to as the “bid” price. For instance: EUR/USD quotes 1.3200/03, and then you can sell one Euro for 1.3203 USD.
Buy Quote- This quote is normally displayed on the right side and represents the price that you can buy the base currency for. The buy quote is also referred to as the “ask” or “offer” price. For instance, EUR/USD quotes 1.3200/03, and then you can buy one Euro for 1.3203 USD.
10 Minute Forex Wealth Builder
Forex Trading Robot - Forex Maestro
1. Forex is the largest market, trading at a volume of almost two billion, giving forex traders virtually unlimited flexibility and liquidity. That’s over three times larger than the equity market and over five times larger than futures.
2. Forex trading can fit into anyone’s schedule because it is available on the internet 24 hours a day, 7 days a week. There is no waiting for markets to open; they are always open day in and day out. This flexible schedule makes the forex market extremely attractive to those professional and potential traders and investors.
3. Forex trading on the internet encompasses buying one currency while simultaneously selling another currency; therefore you have an equal opportunity to make a profit no matter what direction the currencies are heading. Another great advantage to consider is that there are currently only fourteen pairs of currencies to trade. Compare those fourteen currencies to the thousands of stocks, options and futures when you’re considering the pros and cons of delving into the trading game.
4. Investors and traders are flocking to the forex internet trading as a way to gain a higher leverage to their investments. Some brokers even offer margin ratios of 200/1 in open forex trading accounts. There are also those mini-forex accounts that can be opened for a minimum of $200, offering a margin of 0.5%, where $50 in trading capital will control a ten thousand unit currency position.
The Forex prices are often predictable, allowing the currency prices to create trends that can be followed to allow the technically trained forex trader to able to spot, and even take advantage of, the many entry and exit points. One of the best parts about forex trading on the internet is that there is no charges for commissions, any exchange fees or any other hidden fees. The forex market is a very easy market to research the countries and currencies involved. The only fees come from the forex brokers, who only make a very small percentage of what the bid/ask price is. Plus, there is no need to calculate any commissions or fees when completing a trade and your transactions are made a confirmed within seconds. Also because this is all done electronically, with no people involved, there is not much that can slow you down.
For the newbie’s in the forex trading game, you will need to know the forex terminology. Here is a list of some basic terms and concepts you will need to know in forex trading:
Spot Market- The market for buying and selling currencies that are usually for settlement within 2 business days, also known as the value date. For example: USD/CAD = 1 day.
Exchange Rate- This is when the value of one currency is expressed in the terms of another. For instance, the EUR/USD has an exchange rate of 1.3200, and then 1 Euro is worth 1.3200 USD.
Currency Pair- All currencies must be sold in pairs. There are two currency’s that make up an exchange rate, so when one currency is bought, the other is simultaneously sold and vise versa.
Base Currency- This is the first currency in a pair.
Counter Currency- This is the second currency used in a pair. The counter currency can also be known as the “terms” currency.
Broker- This is a firm that will match a buyer to a seller for a small fee or commission.
Sell Quote- This quote is normally displayed on the left side and represents the price that you can sell the base currency for. The sell quote is also referred to as the “bid” price. For instance: EUR/USD quotes 1.3200/03, and then you can sell one Euro for 1.3203 USD.
Buy Quote- This quote is normally displayed on the right side and represents the price that you can buy the base currency for. The buy quote is also referred to as the “ask” or “offer” price. For instance, EUR/USD quotes 1.3200/03, and then you can buy one Euro for 1.3203 USD.
10 Minute Forex Wealth Builder
Forex Trading Robot - Forex Maestro
Tuesday
Forex Strategies - Five Forex Trading Strategies
When considering forex trading as a profit making venture, it is important to work out winning strategies beforehand if at all possible. Making decisions regarding your forex trading and developing a strategy can be seen as your foundation. With your strategy you will optimize your risk with respect to the expected reward, or put the odds in your favor. Trading strategies should be disciplined and limit risk, while placing you at the most favorable advantage in the market. One strategy is the simple moving away average, which is based on a technical study over twelve periods, with each period fifteen minutes in length. This is a good example of a trading decision that is arrived at through strategy.
A simple algorithm is used in this strategy. When currency price crosses above the twelfth period, simply move away it is a signal to stop and reverse. In this way a long position will be liquidated and a short position will be established, both using market orders. This system will keep trades always in the market, with either a short position or a long position after the first signal.
Another strategy is of support and resistance levels. This is another technical analysis strategy and derives support and resistance. The idea is that the market tends to trade above support levels and trade below resistance levels. If either a support or a resistance level is broken, then the market will follow through is the direction given. These levels can be determined by analysis of the chart and assessment of where the chart has encountered unbroken support or resistance in times past.
Another strategy that many see as exotic is called the balloon strategy. A balloon option is an option that balloons, or increases in size when triggers are reached. For example, if an investor believes that the dollar will gain strength against the Euro in the near future and is currently trading at 100, the investor will see 110 as being strong resistance, but the investor also believes it will be broken. So, rather than buying straight dollars at 100 for the next six months the investor will purchase at “at the money” balloon call with a 110 trigger and multiple of two. The investor will then own a 100 call in USD110mm. But if the dollar and Euro ever trade at or above 110, the 110 call will double to USD 20mm.
The double bottom is another strategy worth looking at. The double bottom is significant to the short term trader as double bottoms indicate a possible major change in sentiment and trend. The pattern is used on all times frames, and many powerful intraday and long term bull markets are conceived from this setup. Double bottoms reflect strong support levels. When prices fail to break support in the down trending markets on more than one occasion we see powerful changes of trend. These reversal signals are meaningful. The most common entry point where a trader will open on a double bottom trade is on a move through the high of the two troughs. This high will represent secondary resistance, and when penetrated confirms a price reversal. The stops are placed around the lows of he patters because a move below lows negates the pattern premise.
Another good potential strategy is the Ichimoku chart. These charts are following indicators, which identify support and resistance levels and create trading signals in a way that is similar to moving averages. A big difference however between the two is that the Ichimoku chart lines shift forward in time, creating wider support and resistance zones and decreasing the risk of trading false breakouts. They are calculated using information on trend existence, direction, support and resistance.
The four main lines are:
Turning Line = (Highest High + Lowest Low) / 2, for the past nine days
Standard Line = (Highest High + Lowest Low) / 2, for the past twenty-six days
Leading Span 1 = (Standard Line + Turning Line) / 2, plotted twenty-six days ahead of today
Leading Span 2 = (Highest High + Lowest Low) / 2, for the past fifty days, plotted twenty-six days ahead of today’s date.
Whichever strategy you choose to use, devote as much study as possible to increase your chances of gain and profit.
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A simple algorithm is used in this strategy. When currency price crosses above the twelfth period, simply move away it is a signal to stop and reverse. In this way a long position will be liquidated and a short position will be established, both using market orders. This system will keep trades always in the market, with either a short position or a long position after the first signal.
Another strategy is of support and resistance levels. This is another technical analysis strategy and derives support and resistance. The idea is that the market tends to trade above support levels and trade below resistance levels. If either a support or a resistance level is broken, then the market will follow through is the direction given. These levels can be determined by analysis of the chart and assessment of where the chart has encountered unbroken support or resistance in times past.
Another strategy that many see as exotic is called the balloon strategy. A balloon option is an option that balloons, or increases in size when triggers are reached. For example, if an investor believes that the dollar will gain strength against the Euro in the near future and is currently trading at 100, the investor will see 110 as being strong resistance, but the investor also believes it will be broken. So, rather than buying straight dollars at 100 for the next six months the investor will purchase at “at the money” balloon call with a 110 trigger and multiple of two. The investor will then own a 100 call in USD110mm. But if the dollar and Euro ever trade at or above 110, the 110 call will double to USD 20mm.
The double bottom is another strategy worth looking at. The double bottom is significant to the short term trader as double bottoms indicate a possible major change in sentiment and trend. The pattern is used on all times frames, and many powerful intraday and long term bull markets are conceived from this setup. Double bottoms reflect strong support levels. When prices fail to break support in the down trending markets on more than one occasion we see powerful changes of trend. These reversal signals are meaningful. The most common entry point where a trader will open on a double bottom trade is on a move through the high of the two troughs. This high will represent secondary resistance, and when penetrated confirms a price reversal. The stops are placed around the lows of he patters because a move below lows negates the pattern premise.
Another good potential strategy is the Ichimoku chart. These charts are following indicators, which identify support and resistance levels and create trading signals in a way that is similar to moving averages. A big difference however between the two is that the Ichimoku chart lines shift forward in time, creating wider support and resistance zones and decreasing the risk of trading false breakouts. They are calculated using information on trend existence, direction, support and resistance.
The four main lines are:
Turning Line = (Highest High + Lowest Low) / 2, for the past nine days
Standard Line = (Highest High + Lowest Low) / 2, for the past twenty-six days
Leading Span 1 = (Standard Line + Turning Line) / 2, plotted twenty-six days ahead of today
Leading Span 2 = (Highest High + Lowest Low) / 2, for the past fifty days, plotted twenty-six days ahead of today’s date.
Whichever strategy you choose to use, devote as much study as possible to increase your chances of gain and profit.
Forex Robots Reviewed
Wednesday
Great Forex Opportunity
There is a tremendous Forex opportunity right now with the current stock market situation. If you’ve already lost money on the stock exchange or just looking for another place to invest right now, Forex trading may be the opportunity you’re looking for.
The Forex market is also known as the foreign exchange market, and the FX market. The exchange that takes place between two nations with different currencies is the foundation for the Forex market and the basis of the trading in this market. Forex trading is now over thirty years old. It was established in the early 70's. The Forex market is one that is not based on any type of business or investing in any type of business, but the trading and selling of currencies from different nations.
One difference between the stock market and Forex trading is the huge amount of trading that takes place on the Forex market. There is an incredible amount of trading every day on the Forex market; almost two trillion dollars are traded daily. This amount is far greater than the money traded on the daily stock market of any country. The Forex market involves currencies, financial institutions, governments, banks, and similar types of institutions.
The trades or what is bought and sold on the Forex market gives the investor an opportunity to easily liquidate or take out cash, because it actually is cash being traded. In this type of trading the availability of cash in the Forex market is something that can happen very quickly for any investor from any country.
Another difference between the stock exchange and the Forex exchange is that the forex market is international and worldwide. The stock exchange is something that takes place only within a country. The stock market is based on businesses and goods and services that are within a country, while the Forex opportunity takes that to the next level to include many countries.
The stock market in any given country is going to be based on only that countries currency. As an example, the United States’ stock markets are based on the US dollar and the stock market in Japan is based on the Japanese yen. On the other hand, when trading in the Forex market, you have the opportunity to invest in many different currencies, and many countries.
The stock exchanges close on weekends and holidays and have set hours of operation. The Forex exchange is one that is normally open 24 hours a day because of the vast number of countries that are involved in Forex trading. Buying and selling occurs all over the world in so many different times zones. As one market is closing, another market is opening. This is the perpetual method of how the forex market trading occurs.
As you can see there are some advantages to trading Forex. Now is the time to take advantage of the Forex opportunity while the stock market settles down.
Want to find out how to trade in just 10 minutes a day?
Grab your Forex opportunity at: http://10minutewealthbuilder.com/
The Forex market is also known as the foreign exchange market, and the FX market. The exchange that takes place between two nations with different currencies is the foundation for the Forex market and the basis of the trading in this market. Forex trading is now over thirty years old. It was established in the early 70's. The Forex market is one that is not based on any type of business or investing in any type of business, but the trading and selling of currencies from different nations.
One difference between the stock market and Forex trading is the huge amount of trading that takes place on the Forex market. There is an incredible amount of trading every day on the Forex market; almost two trillion dollars are traded daily. This amount is far greater than the money traded on the daily stock market of any country. The Forex market involves currencies, financial institutions, governments, banks, and similar types of institutions.
The trades or what is bought and sold on the Forex market gives the investor an opportunity to easily liquidate or take out cash, because it actually is cash being traded. In this type of trading the availability of cash in the Forex market is something that can happen very quickly for any investor from any country.
Another difference between the stock exchange and the Forex exchange is that the forex market is international and worldwide. The stock exchange is something that takes place only within a country. The stock market is based on businesses and goods and services that are within a country, while the Forex opportunity takes that to the next level to include many countries.
The stock market in any given country is going to be based on only that countries currency. As an example, the United States’ stock markets are based on the US dollar and the stock market in Japan is based on the Japanese yen. On the other hand, when trading in the Forex market, you have the opportunity to invest in many different currencies, and many countries.
The stock exchanges close on weekends and holidays and have set hours of operation. The Forex exchange is one that is normally open 24 hours a day because of the vast number of countries that are involved in Forex trading. Buying and selling occurs all over the world in so many different times zones. As one market is closing, another market is opening. This is the perpetual method of how the forex market trading occurs.
As you can see there are some advantages to trading Forex. Now is the time to take advantage of the Forex opportunity while the stock market settles down.
Want to find out how to trade in just 10 minutes a day?
Grab your Forex opportunity at: http://10minutewealthbuilder.com/
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